<SEC-DOCUMENT>0000887396-12-000002.txt : 20120321
<SEC-HEADER>0000887396-12-000002.hdr.sgml : 20120321
<ACCEPTANCE-DATETIME>20120321112743
ACCESSION NUMBER:		0000887396-12-000002
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		11
CONFORMED PERIOD OF REPORT:	20111231
FILED AS OF DATE:		20120321
DATE AS OF CHANGE:		20120321

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EMPIRE PETROLEUM CORP
		CENTRAL INDEX KEY:			0000887396
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				731238709
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-16653
		FILM NUMBER:		12705131

	BUSINESS ADDRESS:	
		STREET 1:		4444 E 66TH STREET
		STREET 2:		LOWER ANNEX
		CITY:			TULSA
		STATE:			OK
		ZIP:			74136-4207
		BUSINESS PHONE:		918-488-8068

	MAIL ADDRESS:	
		STREET 1:		4444 E 66TH STREET
		STREET 2:		LOWER ANNEX
		CITY:			TULSA
		STATE:			OK
		ZIP:			74136-4207

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICOMM RESOURCES CORP
		DATE OF NAME CHANGE:	19951115

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICOMM CORP
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>r10k-12312011.htm
<DESCRIPTION>2011 10-K
<TEXT>
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 3.5pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>_________________________</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 10-K</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>________________________</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings"><B>&thorn;</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif">
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)</FONT></B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>OF THE SECURITIES EXCHANGE
ACT OF 1934</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the fiscal year ended <U>December 31,
2011</U></B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings"><B>o</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif">
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>For the transition period from ___________________to_________________________</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EMPIRE PETROLEUM CORPORATION</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">________________________</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">DELAWARE</TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">001-16653</TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">73-1238709</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(State or Other Jurisdiction</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Commission File Number)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(I.R.S. Employer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">of Incorporation or Organization)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>4444 E. 66th Street, Lower Annex, Tulsa, OK
74316-4207</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">_____________________________________________________________________________</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Address of principal executive offices)&#9;
(Zip Code)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>918-488-8068</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant's telephone number, including area
code, including area code)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Securities registered pursuant to Section
12(b) of the Act:</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Title of each class: NONE</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Name of each exchange on which registered: N/A</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Securities registered pursuant to 12(g) of
the Act:</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Title of each class: Common Stock, $0.001 par
value</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Name of each exchange on which registered</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">________________________</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark if the registrant is
a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
Yes </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> No</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark if the registrant is
not required to file reports pursuant to Section 13 or Section 15(d) of the Act.</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
Yes </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> No</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.&#9; </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
Yes </FONT><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> No</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings">&thorn;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
Yes </FONT><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> No</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of &quot;large accelerated filer,&quot; &quot;accelerated filer&quot; and &quot;smaller reporting company&quot; in Rule 12b-2 of
the Exchange Act.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;Large
accelerated filer </FONT><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9;Accelerated
filer </FONT><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> Non-accelerated
filer </FONT><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> Smaller reporting
company </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(Do not check if a smaller
reporting company)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Act).</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
Yes </FONT><FONT STYLE="font-family: Wingdings">&thorn;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> No</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The aggregate market value of the voting and
non-voting common equity held by non-affiliates, based upon the average bid and asked prices of the registrant's Common Stock on
the last business day of the registrant's most recently completed second fiscal quarter was $3,609,232.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Note.&mdash;</B>If a determination as to
whether a particular person or entity is an affiliate cannot be made without involving unreasonable effort and expense, the aggregate
market value of the common stock held by non-affiliates may be calculated on the basis of assumptions reasonable under the circumstances,
provided that the assumptions are set forth in the Form.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>APPLICABLE ONLY TO REGISTRANTS INVOLVED IN
BANKRUPTCY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PROCEEDINGS DURING THE PRECEDING FIVE YEARS:</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent
to the distribution of securities under a Plan confirmed by a court.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Courier New, Courier, Monospace; margin: 0; text-align: center"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
Yes </FONT><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> No</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(APPLICABLE ONLY TO CORPORATE REGISTRANTS)</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The number of shares of the registrant's common
stock, $0.001 par value, outstanding as of December 31, 2011 was 85,564,235.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DOCUMENTS INCORPORATED BY REFERENCE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">List hereunder the following documents if incorporated
by reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual
report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c)
under the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report
to security holders for fiscal year ended December 24, 1980).</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">FORM 10-K</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">TABLE OF CONTENTS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">ITEM NUMBER AND CAPTION</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">PAGE NO.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 78%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">PART I</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 1.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Business</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4-5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 1B.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Unresolved Staff Comments</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 2.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Properties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5-7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 3.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Legal Proceedings</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 4.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Mine Safety Disclosures</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">PART II</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 5.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: right">7-8</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 7.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8-12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 8.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Financial Statements and Supplementary Data</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 9.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Changes in and Disagreements With Accountants on Accounting and Financial Disclosure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 9A.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Controls and Procedures</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 9B.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other Information</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">PART III</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 10.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Directors, Executive Officers and Corporate Governance</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13-15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 11.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Executive Compensation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 12.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15-17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 13.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Certain Relationships and Related Transactions, and Director Independence</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 14.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Principal Accounting Fees and Services</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17-18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">PART IV</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Item 15.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Exhibits, Financial Schedules</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18-19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Signatures</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
</TABLE>
<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-bottom: 6pt">&nbsp;</DIV>
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    <!-- Field: /Page -->

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART I</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 1.&#9;BUSINESS.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Background</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Empire Petroleum Corporation, a Delaware corporation
(the &quot;Company&quot;), was incorporated in the State of Utah in August 1983 under the name Chambers Energy Corporation and
domesticated in Delaware in March 1985 under the name Americomm Corporation. The Company's name was changed to Americomm Resources
Corporation in July 1995. On May 29, 2001, Americomm Resources Corporation acquired Empire Petroleum Corporation, which became
a wholly owned subsidiary of Americomm Resources Corporation. On August 15, 2001, Americomm Resources Corporation and Empire Petroleum
Corporation merged and the Company's name was changed to Empire Petroleum Corporation. The Company operates from leased office
space at 4444 E. 66th Street, Lower Annex, Tulsa, OK 74136-4207, and its telephone number is (918) 488-8068.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the past three fiscal years, the Company
has focused on the exploration of the Gabbs Valley Prospect and the evaluation of the South Okie Prospect as further described
below.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gabbs Valley Prospect</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company owns a working interest in oil and
gas leases in Nye and Mineral Counties, Nevada (the &quot;Gabbs Valley Prospect&quot;). As of December 31, 2011, the Company's
working interest was 50% on 30,346 gross acres and 88.5% on 3,840 gross acres. The Gabbs Valley Prospect consisted of 34,186 gross
acres.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2006, a test well, the Empire Cobble Cuesta
1-12-12N-34E, Nye County, Nevada was drilled to a depth of 5,195 feet. The well encountered a volcanic formation at 1,760 feet
and scattered oil shows from 2,000 feet to total depth. After reaching 5,195 feet, the Company and its partners elected to suspend
operations on the well, release the drilling rig, and associated equipment and personnel to evaluate the drilling and logging data.
After the study was completed, Empire and its partners decided to conduct a thorough testing program on the well. The Company re-entered
the well on April 17, 2007 and conducted a series of drill stem tests and recovered only drilling mud. It was then determined after
considerable study that the formation is likely very sensitive to mud and water used in drilling which may have caused clays in
the formation to swell preventing any oil that might be present to flow into the wellbore.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2008, the Company and its partners engaged
W. L. Gore and Associates to carry out an Amplified Geochemical Imaging Survey which covered approximately sixteen square miles.
The survey was concentrated along the apex of the large Cobble Cuesta structure which included the areas around the Empire Cobble
Cuesta 1-12 exploratory test and the other test well drilled in the immediate area. Both of these tests encountered oil shows and
the geochemical survey indicated potential hydrocarbons beyond the two well bores.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During 2010, the Company had a new Federal drilling
unit formed and approved by the Bureau of Land Management (&quot;BLM&quot;). This unit was formed according to the Company's plans
to drill a second test well on the prospect to be known as the Empire Paradise Unit 2-12. This test well was to be drilled to 6,000
feet, or 500 feet into the Triassic formation or into a zone that establishes commercial production at a lesser depth. Drilling
operations were commenced July 19, 2010 and ceased on November 5, 2010. During the drilling phase, the Company had several zones
where oil shows were observed. During its test from 3,698' to 3,786' a small amount of oil was recovered. Drilling continued to
4,248', encountering additional oil shows and the decision was made to set 7&quot; production casing to 4,225'. A further attempt
to deepen the hole failed when a heavy water flow was encountered at 4,248'. One further test through the pipe at 4,140' to 4,167'
tested water. It was then decided to test the area between 3,700' to 3,782'. Oil was recovered from this interval and was swabbed
at the rate of three (3) to five (5) barrels of oil per day. The recovered oil contained a significant amount of paraffin, which
could have restricted the oil production. The Company then made the decision to plug the well, considering it to be non-commercial.
One of the parties that had farmed out their interest to Empire for drilling the 2-12 test well asked for an assignment of the
lease on which the well was drilled. Empire agreed to this assignment subject to such party's assumption of the plugging liabilities
of both the 1-12 and 2-12 wells, plus the reclaiming and seeding of the two well sites and replacing Empire's $25,000 drilling
bond. The acquiring party conducted additional testing of the well. The Company has been provided with such additional well data.
Although the Company is not optimistic that further testing will improve the 2-12 well, it believes there is producible oil in
the very large Cobble Cuesta Structure, which is located 150 miles from the nearest oil production. As a result, the Company is
conducting additional geological studies with the expectation it will likely promote the drilling of another test on the prospect.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other than a small refinery located approximately
100 miles from the Gabbs Valley Prospect, and a six inch gas pipeline crossing our prospect, there are no service networks are
located near the prospect.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">South Okie Prospect</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 4, 2009, the Company purchased, for
$25,000 and payment of lease rentals of $4,680, a nine month option to purchase oil and gas leases known as the South Okie Prospect
in Natrona County, Wyoming.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The option allowed the Company to purchase the
leasehold interests for $35,000. The Tensleep Sand at depths from 3,300 feet to 4,500 feet is the primary target. As of December
31, 2009, the Company acquired 11 miles of seismic data and studies of this data were completed in early January 2010. An additional
geological study was also completed early January 2010. Based on these studies, the Company exercised its option in 2010. Subject
to securing additional financing and/or engaging an industry partner, the Company plans to drill or cause to be drilled a test
well in 2012.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Company&rsquo;s
interest in the Okie Draw Prospect consisted of approximately 830 net acres of leases.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Competition</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The oil and gas business is extremely competitive.
The Company must compete with many long-established companies with greater financial resources and technical capabilities. The
Company is not a significant participant in the oil and gas industry.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Markets; Price Volatility</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The market price of oil and gas is volatile,
subject to speculative movement and depends upon numerous factors beyond the control of the Company, including expectations regarding
inflation, global and regional demand, political and economic conditions and production costs. Future profitability, if any, will
depend substantially upon the prevailing prices for oil and gas. If the market price for oil and gas is significantly depressed
in the future, it could have a material adverse effect on the Company's ability to raise additional capital necessary to finance
operations and to explore the Gabbs Valley and South Okie Prospects. Lower oil and gas prices may also reduce the amount of oil
and gas, if any, that can be produced economically from the Company's properties. While the prices of oil and gas remain volatile,
the oil and gas industry has recently experienced historically high prices for oil and gas. The Company anticipates that the prices
of oil and gas will fluctuate somewhat in the near future.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Regulation</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The oil and gas industry is subject to extensive
federal, state and local laws and regulations governing the production, transportation and sale of hydrocarbons as well as the
taxation of income resulting therefrom.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Legislation affecting the oil and gas industry
is constantly changing. Numerous federal and state departments and agencies have issued rules and regulations applicable to the
oil and gas industry. In general, these rules and regulations regulate, among other things, the extent to which acreage may be
acquired or relinquished; spacing of wells; measures required for preventing waste of oil and gas resources; and, in some cases,
rates of production. The heavy and increasing regulatory burdens on the oil and gas industry increase the Company's cost of doing
business and, consequently, affect profitability.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A substantial portion of the leases, which constitute
the South Okie and Gabbs Valley Prospects are granted by the federal government and administered by the BLM and the Minerals Management
Service (&quot;MMS&quot;) of the U.S. Department of the Interior, both of which are federal agencies. Such leases are issued through
competitive bidding, contain relatively standardized terms and require compliance with detailed BLM and MMS regulations and orders
(which are subject to change by the BLM and the MMS). Leases are also accompanied by stipulations imposing restrictions on surface
use and operations. Operations to be conducted by the Company on federal oil and gas leases must comply with numerous regulatory
restrictions, including various nondiscrimination statutes. Federal leases also generally require a complete archaeology and environmental
impact assessment prior to the authorization of an exploration or development plan.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's oil and gas properties and operations
are also subject to numerous federal, state and local laws and regulations relating to environmental protection. These laws govern,
among other things, the amounts and types of substances and materials that may be released into the environment, the issuance of
permits in connection with exploration, drilling and production activities, the reclamation and abandonment of wells and facility
sites and the remediation of contaminated sites. These laws and regulations may impose substantial liabilities if the Company fails
to comply or if any contamination results from the Company's operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Employees</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Company had one
employee, a full-time secretary. Mr. Albert E. Whitehead, Chairman and Chief Executive Officer, devotes a considerable amount of
time to the affairs of the Company and receives no compensation. For financial statement purposes, Mr. Whitehead's services have
been recorded as contributed capital and expense in the amount of $50,000 for the years ended December 31, 2011 and 2010.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 1B. UNRESOLVED STAFF COMMENTS.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.&#9;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 2. PROPERTIES.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gabbs Valley Prospect</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Gabbs Valley Prospect
consisted of approximately 34,186 gross acres of federal leases located in Nye County, Nevada, of which the Company owns a 50%
working interest.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, two wells, the Empire
Cobble Cuesta 1-12 and the Empire Paradise 2-12, had been drilled and tested on this prospect, but the wells were not completed.
For more information regarding the Gabbs Valley Prospect, see &quot;Gabbs Valley Prospect&quot; under Item 1. Business.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>COMPANY UNDEVELOPED ACREAGE (LEASES)</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>GABBS VALLEY PROSPECT, NYE COUNTY, NEVADA</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>AS OF DECEMBER 31, 2011</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Federal</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 19%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Undeveloped</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acreage</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Productive</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acreage</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Effective</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Remaining</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Lease</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Gross</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Net</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Gross</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Net</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Date</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Term</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Number</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">(Years)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-82185</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,927.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">963.50</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-82186</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,355.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,177.50</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-82187</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">760.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">380.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-82195</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-82196</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-82197</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,920.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">960.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-85867</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,538.67</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,269.34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-85871</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,544.24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,272.12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-85873</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,400.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,200.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-85876</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,461.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,230.50</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-86998</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-86999</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-87000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-89136</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">640.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">320.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12/1/2011</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-90505</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,920.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,699.20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2/1/2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">N-90506</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,920.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,699.20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2/1/2012</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">TOTALS</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">34,185.91</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18,571.36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the last three years, the Company has
drilled one well, the Empire Paradise Unit 2-12, which is in the Gabbs Valley Prospect. For additional information regarding this
well, see Item 1 of this Form 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Company&rsquo;s
interest in the Okie Draw Prospect consisted of approximately 830 net acres of leases.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>COMPANY UNDEVELOPED ACREAGE (LEASES)</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OKIE DRAW PROSPECT, NATRONA COUNTY, WYOMING</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>AS OF DECEMBER 31, 2011</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Federal</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Undeveloped</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acreage</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Productive</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acreage</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Effective</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Remaining</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Lease</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Gross</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Net</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Gross</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Net</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Date</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Term</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Number</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">(Years)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">WYW-0323746</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">240.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">30.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/1972</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">HBP</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">WYW-036587</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">320.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">40.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/1972</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">HBP</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">WYW-036587</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">40.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">40.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11/1/1972</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">HBP</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">WYW-1744647</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">720.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">720.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">-</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10/1/2007</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,320.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">830.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CHEYENNE RIVER PROSPECT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>NIOBRARA COUNTY, WYOMING</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OIL &amp; GAS PRODUCTION</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 19%; border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011*</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 16%; border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010*</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 20%; border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2009**</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenue</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$9,793.57</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Production costs excluding depreciation, depletion, amortization</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">and impairment</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$7,244.85</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Average sales prices (Bbl)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$33.65</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Oil production (Bbl)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,991.81</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Depreciation, depletion &amp; amortization</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Impairment of oil &amp; gas production</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$0.00</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">* The Company sold the Cheyenne River Prospect
in 2009.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">** All oil sales revenue and production for
fiscal year 2009 related to the Cheyenne River Prospect.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 3.&#9;LEGAL PROCEEDINGS.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, neither the Company
nor its properties were subject to any legal proceedings.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 4.&#9;MINE SAFETY DISCLOSURES.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Not applicable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.75in">ITEM 5.&#9;MARKET
FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Market Information</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's Common Stock is traded on the
OTCQB under the symbol &quot;EMPR&quot;.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets forth the high and
low bid information for the Company's common stock during the time periods indicated, as reported by NASDAQ.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Year ending December 31, 2010:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Quarter</TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">High</TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Low</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">03/31/10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.25</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.065</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">06/30/10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.19</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.05</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">09/30/10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.245</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.01</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">12/31/10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.21</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.03</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Year ending December 31, 2011:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Quarter</TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">High</TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Low</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">03/31/11</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.094</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.0264</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">06/30/11</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.07</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.0415</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">09/30/11</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.055</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.031</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">12/31/11</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.045</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">.017</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Quotations reflect inter-dealer prices, without
retail mark-up, markdown or commission and may not represent actual transactions.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Number of Holders of Common Stock</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2011, there were approximately
197 stockholders of record of the Company's Common Stock.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dividends</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has never paid cash dividends on
its Common Stock. The Company intends to retain future earnings for use in its business and, therefore, does not anticipate paying
cash dividends on its Common Stock in the foreseeable future.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recent Sales of Unregistered Securities</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On or about February 24, 2011, the Company settled
outstanding invoices of two third party service providers. One such invoice was settled in the net amount of $54,990 by paying
$25,000 in cash and issuing 60,000 shares of Common Stock and the other such invoice was settled by issuing 435,000 shares of Common
Stock for the amount owed of $43,500.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2011, the Company issued 2,000,000
shares of its common stock to Albert E. Whitehead, its Chief Executive Officer, for a purchase price of $0.05 per share, which
resulted in a total investment of $100,000.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For information about additional private equity
placements conducted by the Company, see &ldquo;Private Equity Placements&rdquo; in Item 7 of this From 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The offers and sales related to the securities
described above were not registered under the Securities Act of 1933, as amended, in reliance upon the exemption from the registration
requirements of that act provided by Section 4(2) thereof and Regulation D promulgated by the SEC thereunder. The recipients of
the securities are sophisticated investors with the experience and expertise necessary to evaluate the merits and risks of an investment
in the Company's stock and the financial means to bear the risks of such an investment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.75in">ITEM 7. &#9;MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Cautionary Note Regarding Forward-Looking
Statements. </B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All statements, other than statements of historical
fact, contained in this report are forward-looking statements. Forward-looking statements generally are accompanied by words such
as &quot;anticipate,&quot; &quot;believe,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;may,&quot; &quot;might,&quot; &quot;potential,&quot;
&quot;project&quot; or similar statements.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be
correct. Factors that could cause results to differ materially from the results discussed in such forward-looking statements include:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* the need for additional
capital,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* the costs expected to
be incurred in exploration and development,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* unforeseen engineering,
mechanical or technological difficulties in drilling wells,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* uncertainty of exploration
results,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* operating hazards,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* competition from other
natural resource companies,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* the fluctuations of prices
for oil and gas,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* the effects of governmental
and environmental regulation, and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* general economic conditions
and other risks described in the Company's filings with the Securities and Exchange</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in">Commission (the
&quot;SEC&quot;).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Information on these and other risk factors
are discussed under &quot;Factors That May Affect Future Results&quot; below. Accordingly, the actual results of operations in
the future may vary widely from the forward-looking statements included herein, and all forward-looking statements in this Form
10-K are expressly qualified in their entirety by the cautionary statements in this paragraph.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect management's analysis, judgment, belief and expectations only as of the date
hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances
that arise after the date hereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Factors That May Affect Future Results. </B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not have any significant on-going
income producing oil and gas properties and has limited financial resources.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the past three fiscal years, the Company
has financed its operations primarily from sales of its equity securities and from loans made to the Company by Albert E. Whitehead,
the Company's Chief Executive Officer. There is no assurance that the Company will be able to continue to finance its operations
through the sale of its equity securities, or through loans or advances by third parties. In addition, Mr. Whitehead has no obligation
to advance the Company any additional money, and there is no assurance that he will do so.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reported losses of $247,432 and
$2,627,902 for the years ended December 31, 2011 and 2010, respectively. The Company also had an accumulated deficit of $14,006,553
as of December 31, 2011. The Company can provide no assurance that it will be profitable in the future and, if the Company does
not become profitable, it may have to suspend its operations. As a result of the foregoing, the audit report of the Company's independent
registered public accounting firm relating to the Company's financial statements has been modified because of a going concern uncertainty.
If the Company is able to raise the funds necessary to continue its operations, its future performance will be dependent on the
successful drilling results of its inventory of unproved locations in Wyoming and Nevada. The failure of drilling activities to
achieve sufficient quantities of economically attractive reserves and production would have a material adverse effect on the Company's
liquidity, operations and financial results.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company could be adversely affected by
fluctuations in oil and gas prices.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Even if the Company's drilling activities achieve
commercial quantities of economically attractive reserves and production revenue, the Company will remain subject to prevailing
prices for oil, natural gas and natural gas liquids, which are dependent upon numerous factors such as weather, economic, political
and regulatory developments and competition from other sources of energy. The volatile nature of the energy markets makes it particularly
difficult to estimate future prices of oil, natural gas and natural gas liquids. Prices of oil, natural gas and natural gas liquids
are subject to wide fluctuations in response to relatively minor changes in circumstances,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">and there can be no assurance that future prolonged
decreases in such prices will not occur. All of these factors are beyond the control of the Company. Any significant decline in
oil and gas prices could have a material adverse effect on the Company's liquidity, operations and financial condition.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company could be adversely affected by
increased costs of service providers utilized by the Company.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with customary industry practice,
the Company relies on independent third party service providers to provide most of the services necessary to drill new wells, including
drilling rigs and related equipment and services, horizontal drilling equipment and services, trucking services, tubulars, fracing
and completion services and production equipment. The industry has experienced significant price fluctuations for these services
during the last year and this trend is expected to continue into the future. These cost uncertainties could, in the future, significantly
increase the Company's development costs and decrease the return possible from drilling and development activities, and possibly
render the development of certain proved undeveloped reserves uneconomical.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company is subject to numerous drilling
and operating risks. </B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Oil and gas drilling activities are subject
to numerous risks, many of which are beyond the Company's control. The Company's operations may be curtailed, delayed or canceled
as a result of title problems, weather conditions, compliance with governmental requirements, mechanical difficulties and shortages
or delays in the delivery of equipment. In addition, the Company's properties may be susceptible to hydrocarbon drainage from production
by other operators on adjacent properties. Industry operating risks include the risk of fire, explosions, blow-outs, pipe failure,
abnormally pressured formations and environmental hazards such as oil spills, gas leaks, ruptures or discharges of toxic gases,
the occurrence of any of which could result in substantial losses to the Company due to injury or loss of life, severe damage to
or destruction of property, natural resources and equipment, pollution or other environmental damage, clean-up responsibilities,
regulatory investigation and penalties and suspension of operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company's insurance policies may not
adequately protect the Company against certain unforeseen risks.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In accordance with customary industry practice,
when conducting drilling operations, the Company maintains insurance against some, but not all, of the risks described herein.
There can be no assurance that any insurance will be adequate to cover the Company's losses or liabilities. The Company cannot
predict the continued availability of insurance, or its availability at premium levels that justify its purchase.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company is subject to various environmental
risks, and governmental regulation relating to environmental matters.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is subject to a variety of federal,
state and local governmental laws and regulations related to the storage, use, discharge and disposal of toxic, volatile or otherwise
hazardous materials. These regulations subject the Company to increased operating costs and potential liability associated with
the use and disposal of hazardous materials. Although these laws and regulations have not had a material adverse effect on the
Company's financial condition or results of operations, there can be no assurance that the Company will not be required to make
material expenditures in the future. Moreover, the Company anticipates that such laws and regulations will become increasingly
stringent in the future, which could lead to material costs for environmental compliance and remediation by the Company. Any failure
by the Company to obtain required permits for, control the use of, or adequately restrict the discharge of hazardous substances
under present or future regulations could subject the Company to substantial liability or could cause its operations to be suspended.
Such liability or suspension of operations could have a material adverse effect on the Company's business, financial condition
and results of operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's activities are subject to extensive
governmental regulation. Oil and gas operations are subject to various federal, state and local governmental regulations that may
be changed from time to time in response to economic or political conditions. From time to time, regulatory agencies have imposed
price controls and limitations on production in order to conserve supplies of oil and gas. In addition, the production, handling,
storage, transportation and disposal of oil and gas, by-products thereof and other</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">substances and materials produced or used in
connection with oil and gas operations are subject to regulation under federal, state and local laws and regulations primarily
relating to protection of human health and the environment. To date, expenditures related to complying with these laws and for
remediation of existing environmental contamination have not been significant in relation to the operations of the Company. There
can be no assurance that the trend of more expansive and stricter environmental legislation and regulations will not continue.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company is subject to intense competition.
</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company operates in a highly competitive
environment and competes with major and independent oil and gas companies for the acquisition of desirable oil and gas properties,
as well as for the equipment and labor required to develop and operate such properties. Many of these competitors have financial
and other resources substantially greater than those of the Company.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company currently depends on the Company's
Chief Executive Officer.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is dependent on the experience,
abilities and continued services of its current Chief Executive Officer and President, Albert E. Whitehead. Mr. Whitehead has played
a significant role in the development and management of the Company. The loss or reduction of services of Mr. Whitehead could have
a material adverse effect on the Company.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>There has been a limited public trading market
for the Company's Common Stock, and there can be no assurance that an active trading market will be sustained.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There can be no assurance that the Common Stock
will trade at or above any particular price in the public market, if at all. The trading price of the Common Stock could be subject
to significant fluctuations in response to variations in quarterly operating results or even mild expressions of interest on a
given day. Accordingly, the Common Stock could experience substantial price changes in short periods of time. Even if the Company
is performing according to its plan and there is no legitimate company-specific financial basis for this volatility, it must still
be expected that substantial percentage price swings will occur in the Company's Common Stock</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">for the foreseeable future.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain of the outstanding shares of the Company's
Common Stock are &quot;restricted securities&quot; under Rule 144 of the Securities Act of 1933, as amended, and (except for shares
purchased by &quot;affiliates&quot; of the Company as such term is defined in Rule 144) would be eligible for sale as the applicable
holding periods expire. In the future, these shares may be sold only pursuant to a registration statement under the Securities
Act of 1933, as amended, or an applicable exemption, including pursuant to Rule 144. Under Rule 144, a person who has owned common
stock for at least one year may, under certain circumstances, sell within any three-month period a number of shares of common stock
that does not exceed the greater of 1% of the then outstanding shares of common stock or the average weekly trading volume during
the four calendar weeks prior to such sale. A person who is not deemed to have been an affiliate of the Company at any time during
the three months preceding a sale, and who has beneficially owned the restricted securities for the last two years is entitled
to sell all such shares without regard to the volume limitations, current public information requirements, manner of sale provisions
and notice requirements. Sale or the expectation of sales of a substantial number of shares of Common Stock in the public market
by selling stockholders could adversely affect the prevailing market price of the Common Stock, possibly having a depressive effect
on any trading market for the Common Stock, and may impair the Company's ability to raise capital at that time through additional
sales of its equity securities.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company does not expect to declare or
pay any dividends in the foreseeable future.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has not declared or paid any dividends
on its Common Stock. The Company currently intends to retain future earnings to fund the development and growth of its business,
to repay indebtedness and for general corporate purposes, and therefore, does not anticipate paying any cash dividends on its Common
Stock in the foreseeable future.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company's Common Stock may be subject
to secondary trading restrictions related to penny stocks.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain transactions involving the purchase
or sale of Common Stock of the Company may be affected by a SEC rule for &quot;penny stocks&quot; that imposes additional sales
practice burdens and requirements upon broker-dealers that purchase or sell such securities. For transactions covered by this penny
stock rule, broker-dealers must make certain disclosures to purchasers prior to purchase or sale. Consequently, the penny stock
rule may impede the ability of broker-dealers to purchase or sell the Company's securities for their customers and the ability
of persons now owning or subsequently acquiring the Company's securities to resell such securities.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">RESULTS OF OPERATIONS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GENERAL TO ALL PERIODS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's primary business is the exploration
and development of oil and gas interests. The Company has incurred significant losses from operations, and there is no assurance
that it will achieve profitability or obtain funds necessary to finance its operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For all periods presented, the Company's effective
tax rate is 0%. The Company has generated net operating losses since inception, which would normally reflect a tax benefit in the
statement of operations and a deferred asset on the balance sheet. However, because of the current uncertainty as to the Company's
ability to achieve profitability, a valuation reserve has been established that offsets the amount of any tax benefit available
for each period presented in the statements of operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">TWELVE MONTH PERIOD ENDED DECEMBER 31, 2011,
COMPARED TO TWELVE MONTH PERIOD ENDED DECEMBER 31, 2010</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the twelve months ended December 31, 2011
and 2010, sales revenue was $0. The Company does not have any producing wells at this time.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Production and operating expenses decreased
$156,114 to $22,060 for the twelve months ended December 31, 2011, from $178,174 for the same period in 2010. This decrease was
primarily due to the termination of leases on the Gabbs Valley Prospect.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General and administrative expenses decreased
by $9,863 to $222,133 for the twelve months ended December 31, 2011, from $231,996 for the same period in 2010. The decrease was
primarily due to a decrease in insurance costs in 2011.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Well abandonment expense decreased to $0 for
the twelve months ended December 31, 2011 from $2,221,293 in 2010 due to the Company's assignment of the Paradise Unit 1-12 well
to another leaseholder in 2010.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There was no depreciation expense attributable
to the twelve months ended December 31, 2011 or December 31, 2010 because the depreciable assets were fully depreciated.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the reasons discussed above, net loss decreased
$(2,380,470) from $(2,627,902) for the twelve months ended December 31, 2010, to $(247,432) for the twelve months ended December
31, 2011.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">LIQUIDITY AND CAPITAL RESOURCES</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GENERAL</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Company had $4,978
of cash on hand. The Company's cash on hand will not be sufficient to fund its operations during the next 12 months. The Company
expects to incur costs of approximately $10,000 per month relating to general administrative, office and other expenses. In order
to sustain the Company's operations on a long term basis, the Company intends to continue to look for merger opportunities and
consider public or private financings. To the extent that it is necessary, the Company expects that management will support the
Company financially for several months to allow the Company to consummate a merger</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">opportunity, or public or private financing
(see subsequent events).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">PRIVATE EQUITY PLACEMENTS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In a private placement concluded on January
26, 2010, the Company received subscriptions for 21,431,661 shares of its common stock, par value $0.001 per share, with the aggregate
offering price of such shares being $1,500,216. The material terms and conditions applicable to the purchase and sale of the securities
in the private placement are set forth in the form of the Securities Purchase Agreement included as an exhibit to the Company's
Quarterly Report on Form 10-Q for the period ended September 30, 2009.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subsequent to this private placement, the Company
determined that it needed to enter into the farm-in agreement (see Note 4) and raise additional funds in order to successfully
drill a new test well on the Gabbs Valley Prospect. In July 2010, the Company completed the private placement offering by issuing
2,500,002 additional shares of common stock, and 1,250,001 additional warrants to purchase shares of common stock at a price of
$.50, which expired on December 31, 2011, as applicable, with an aggregate purchase price of $225,000. Proceeds from this private
placement were utilized for the Company's share of costs to drill a new well on the Gabbs Valley Prospect (see Note 2). Any remaining
funds were used for general working capital purposes.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Proceeds of the July 2010 private placement
were allocated $57,500 to common stock warrants and $167,500 to common stock and paid in capital. The value of the warrants was
estimated using the Black-Scholes Valuation Model with the following weighted average assumptions: risk free interest rate of .30%,
no dividend yield, volatility factor of the expected market price of the Company's common stock of 155% to 157% (depending on the
date of sale), and a weighted average expected life of the warrants of one year. These warrants have expired.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2011, the Company issued 2,000,000
shares of its common stock to Albert E. Whitehead, its Chief Executive Officer, for a purchase price of $0.05 per share, which
resulted in a total investment of $100,000.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">SALE OF WORKING INTEREST</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2010, the Company sold 7% of its
working interest in the Gabbs Valley Prospect leases for $700,000. In connection with such sale, the purchasers were granted a
working interest in the Paradise Unit 2-12 well, unit leases and an option to participate in the farmin of the non-unit leases,
which option has expired.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ADVANCE FROM RELATED PARTY</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 1, 2011, the Albert E. Whitehead
Living Trust, under the terms of a convertible note, advanced $100,000 to the Company. The note has a term of one (1) year and
accrues interest at the rate of four (4) percent per annum. During 2011, there was no principal or interest paid on the note. At
December 31, 2011, $3,250 of interest had accrued. The principal and interest owed under the note may be converted by the holder
into Common Stock at the rate of $0.10 per share. The maturity date of the note has been extended to August 1, 2012.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">OFF-BALANCE SHEET ARRANGEMENTS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">CRITICAL ACCOUNTING POLICIES AND ESTIMATES</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity
with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Because estimates and assumptions require
significant judgment, future actual results could differ from those estimates and could have a significant impact on the Company's
results of operations, financial position and cash flows. The Company re-evaluates its estimates and assumptions at least on a
quarterly basis. The following policies may involve a higher degree of estimation and assumption:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Successful Efforts Accounting - Under the successful
efforts method of accounting, the Company capitalizes all costs related to property acquisitions and successful exploratory wells,
all development costs and the costs of support equipment and facilities. Certain costs of exploratory wells are capitalized pending
determination that proved reserves have been found. Such determination is dependent upon the results of planned additional wells
and the cost of required capital expenditures to produce the reserves found.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">All costs related to unsuccessful exploratory
wells are expensed when such wells are determined to be non-productive and other exploration costs, including geological and geophysical
costs, are expensed as incurred. The application of the successful efforts method of accounting requires management's judgment
to determine the proper designation of wells as either developmental or exploratory, which will ultimately determine the proper
accounting treatment of the costs incurred. The results from a drilling operation can take considerable time to analyze, and the
determination that commercial reserves have been discovered requires both judgment and application of industry experience. Wells
may be completed that are assumed to be productive and actually deliver oil and gas in quantities insufficient to be economic,
which may result in the abandonment of the wells at a later date. The evaluation of oil and gas leasehold acquisition costs requires
management's judgment to estimate the fair value of exploratory costs related to drilling activity in a given area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Impairment of unproved oil and gas properties
- Capitalized drilling costs are reviewed periodically for impairment. Costs related to impaired prospects or unsuccessful exploratory
drilling are charged to expense. Management's assessment of the results of exploration activities, commodity price outlooks, planned
future sales or expiration of all or a portion of such leaseholds impact the amount and timing of impairment provisions. An impairment
expense could result if oil and gas prices decline in the future as it may not be economic to develop some of these unproved properties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Estimates of future dismantlement, restoration,
and abandonment costs - the Company accounts for future abandonment costs of wells and related facilities in accordance with the
provisions of Financial Accounting Standards Board (&quot;FASB&quot;) Accounting for Asset Retirement Obligations. Under this method
of accounting, the accrual for future dismantlement and abandonment costs is based on estimates of these costs for each of the
Company's properties based upon the type of production structure, reservoir characteristics, depth of the reservoir, market demand
for equipment, currently available procedures and consultations with construction and engineering consultants. Because these costs
typically extend many years into the future, estimating these future costs is difficult and requires management to make estimates
and judgments that are subject to future revisions based upon numerous factors, including changing technology and the political
and regulatory environment and, estimates as to the proper discount rate to use and timing of abandonment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 8. &#9;FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company are
set forth on pages 25 through 34 at the end of this Form 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.75in">ITEM 9. &#9;CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 9A. &#9;CONTROLS AND PROCEDURES.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Evaluation of Disclosure Controls and Procedures</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of the end of the period covered by this
report, the Company carried out an evaluation under the supervision of the Company's Chief Executive Officer (and principal financial
officer) of the effectiveness of the design and operation of the Company's disclosure</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">controls and procedures pursuant to Securities
Exchange Act Rules 13a - 15(e) and 15d - 15(e). Based on this evaluation, the Company's Chief Executive Officer (and principal
financial officer) has concluded that the disclosure controls and procedures as of the end of the period covered by this report
are effective.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Management's Annual Report on Internal Control
Over Financial Reporting</B></P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's Chief Executive Officer (and principal
financial officer) is responsible for establishing and maintaining adequate internal control over financial reporting as defined
in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. The Company's internal controls were designed
to provide reasonable assurance as to the reliability of the Company's financial reporting and the preparation of the financial
statements for external purposes in accordance with generally accepted accounting principles in the United States.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of control effectiveness
to future periods are subject to the risk that the controls may become inadequate because of changes in conditions or that the
degree of compliance with the policies or procedures may deteriorate.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's Chief Executive Officer (and principal
financial officer) made an assessment of the effectiveness of the Company's internal control over financial reporting as of December
31, 2011. In making this assessment, the Company's Chief Executive Officer (and principal financial officer) used the criteria
established in Internal Control- Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO). Based on this assessment, the Company's Chief Executive Officer (and principal financial officer) concluded that as of
December 31, 2011, the Company's internal control over financial reporting is effective based on those criteria.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This annual report does not include an attestation
report of the Company's independent registered public accounting firm regarding internal control over financial reporting. Management's
report was not subject to attestation by the Company's independent registered public accounting firm pursuant to rules of the SEC,
which only require management's report in this annual report.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Changes on Internal Control over Financial
Reporting</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There was no change in the Company's internal
control over financial reporting identified in connection with the Company&rsquo;s evaluation of disclosure controls and procedures
which occurred during the Company&rsquo;s last fiscal quarter (the fourth fiscal quarter in the case of an annual report) that
has materially affected or that is reasonably likely to materially affect the Company's internal control over financial reporting.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 9B. &#9;OTHER INFORMATION.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">None.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART III</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 10. &#9;DIRECTORS, EXECUTIVE OFFICERS AND
CORPORATE GOVERNANCE.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following lists the directors and executive
officers of the Company:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Name</TD>
    <TD STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Age</TD>
    <TD STYLE="width: 56%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-weight: bold">Position</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Albert E. Whitehead</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">81</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Director, Chairman &amp; Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">John C. Kinard</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">78</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Montague H. Hackett, Jr.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">79</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Director</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Kevin R. Seth</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">52</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Director</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">__________________________________</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Directors hold office until their successors
are elected by the shareholders of the Company and qualified. Executive officers serve at the pleasure of the Board of Directors.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Albert E. Whitehead.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Whitehead has been a member of the Company's
Board of Directors since 1991 and served as Chairman of the Board and Chief Executive Officer from March 1998 to May 2001, when
John P. McGrain assumed such role. Mr. Whitehead again assumed the role of Chairman and Chief Executive Officer on April 16, 2002
upon the resignation of Mr. McGrain. Until February 5, 2008 Mr. Whitehead also served as the Non-Executive Chairman of Coastal
Energy Company (formerly PetroWorld Corp.), a company that is traded on the London Stock Exchange's Alternative Investment Market
and the Toronto Stock Exchange in Canada. Mr. Whitehead served as the Chairman and Chief Executive Officer of Seven Seas Petroleum
Inc., a publicly held company, engaged in international oil and gas exploration from February 1995 to May 1997. From April 1987
through January 1995, Mr. Whitehead served as Chairman and Chief Executive Officer of Garnet Resources Corporation, a publicly
held oil and gas exploration and development company. Mr. Whitehead&rsquo;s experience in the oil and gas industry, along with
his familiarity with the day-to-day operations of the Company, make him well suited to serve on the Company&rsquo;s Board of Directors.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">John C. Kinard.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Kinard has served as a Director of the Company
since June 1998 and is currently a Partner in Silver Run Investments, LLC, an oil and gas investment firm. Mr. Kinard serves as
a Managing Partner of Remuda Resources LLC, a private oil and gas exploration company. From 1990 through December 1995, Mr. Kinard
served as President of Glen Petroleum, Inc., a private oil and gas exploration company. From 1990 through 2002, Mr. Kinard also
served as the Chairman of Envirosolutions UK Ltd., a private industrial wastewater treatment company. Mr. Kinard&rsquo;s longstanding
relationship with the Company and his knowledge of the oil and gas industry make him well equipped to serve on the Company&rsquo;s
Board of Directors.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Montague H. Hackett, Jr.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Montague H. Hackett, Jr., a graduate of Princeton
University and Harvard Law School, joined the Empire Board as a director in June 2006. Over the years, Mr. Hackett has been associated
with various natural resource companies both as a director and as an officer. In the past five years, he has been Co-Chairman and
a director of Victory Ventures LLC, a New York venture capital company and International Energy Services, Inc., a Houston based
oilfield service company, with operations in Russia and Kazakstan. Given Mr. Hackett&rsquo;s knowledge of the oil and gas industry
and his general business knowledge, Mr. Hackett is a good fit as a member of the Company&rsquo;s Board of Directors.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Kevin R. Seth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Seth has served as a Director of the Company
since February 23, 2011 and is a partner of Edgewood Management LLC, a registered investment advisor, based in New York City. Prior
to joining Edgewood in 1995, Mr. Seth worked with Credit Suisse First Boston in London, New York and Boston. Mr. Seth graduated
from Montana State University with a B.S. Degree in Pre-Law and Economics and has served for the past ten (10) years as either
Vice-Chairman or Chairman of the University Investment Committee at Montana State University. Mr. Seth&rsquo;s broad business experience
will allow him to provide considerable insight into the business decisions the Company will face and results in him being well
suited to serve as a member of the Company&rsquo;s Board of Directors.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">IDENTIFICATION OF THE AUDIT COMMITTEE; AUDIT
COMMITTEE FINANCIAL EXPERT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Company had not
established any committees (including an audit committee) because of the small size of its Board of Directors. As such, the Company
does not have an audit committee or an audit committee financial expert serving on such committee. As of December 31, 2011, the
entire Board of Directors (Messrs. Whitehead, Kinard, Hackett and Seth)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">essentially serve as the Company's audit committee.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">CODE OF ETHICS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has adopted a Code of Ethics that
applies to all of the Company's directors and employees, including the Company's principal executive officer, principal financial
officer and principal accounting officer or persons performing similar functions. The Company undertakes to provide any person
without charge, upon request, a copy of the Code of Ethics. Requests may be directed to Empire Petroleum Corporation, 4444 E. 66th
Street, Lower Annex, Tulsa, Oklahoma 74136-4207, or by calling (918) 488-8068.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Section 16(a) of the Securities Exchange Act
of 1934, as amended, requires the Company's directors, executive officers, and persons who beneficially own more than 10 percent
of a registered class of the Company's equity securities, to file with the SEC initial reports of ownership and reports of changes
in ownership of Common Stock and other equity securities of the Company.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Officers, directors and greater than ten percent
stockholders are required by SEC regulation to furnish the Company with copies of all Section 16(a) forms they file.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based solely on review of the copies of such
reports furnished to the Company and any written representations that in other reports were required during the year ended December
31, 2011, to the Company's knowledge, all Section 16(a) filing requirements applicable to its officers, directors and greater than
10% beneficial owners during the year ended December 31, 2011 were complied with on a timely basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 11.&#9;EXECUTIVE COMPENSATION.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Board of Directors does not have a Compensation
Committee.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">EXECUTIVE COMPENSATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the last two completed fiscal years,
no executive officer received a salary or any other benefits as a part of executive compensation. The Company's only named executive
officer, Albert E. Whitehead, does not hold any stock options and has not received any other award under an equity incentive plan.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">DIRECTORS COMPENSATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In return for serving as a member of the Board
of Directors of the Company, Mr. Seth was granted in 2011 options to purchase 150,000 shares of the Company&rsquo;s stock under
the 2006 Stock Incentive Plan, at a strike price of $0.10 per share, which was the closing price on the date of the grant. At the
end of fiscal year 2011, all of such options remained outstanding.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Except for Mr. Seth, no Director received compensation
or any other benefits from the registrant during the last completed fiscal year.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.75in">ITEM 12.&#9;SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Securities Authorized for Issuance under Equity
Compensation Plans</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, the Company had two
equity incentive plans under which equity securities were authorized for issuance to the Company's directors, officers, employees
and other persons who performed substantial services for or on behalf of the Company. The &quot;1995 Stock Option Plan&quot;, which
expired in May 2005, remains only to the extent necessary to govern outstanding options issued under the Plan. At the Company's
2006 Annual Meeting of Stockholders, the stockholders approved the &quot;2006 Stock Incentive Plan&quot;, which authorizes granting
up to 5,000,000 options for up to 5,000,000 shares of the Company's Common Stock.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides certain information
relating to the 1995 Stock Option Plan and the 2006 Stock Incentive Plan as of December 31, 2011:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 25%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 25%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(a)</TD>
    <TD NOWRAP STYLE="width: 25%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(b)</TD>
    <TD NOWRAP STYLE="width: 25%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(c)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number of securities</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">remaining available</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">for future</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number of securities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">issuance under</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">to be issued upon</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted-average</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">equity compensation</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">exercise of</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">exercise price of</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">plans (excluding</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">outstanding options</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">outstanding options</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">securities reflected</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Plan Category</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">and rights</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">and rights</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">in column (a)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Equity compensation plans</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">approved by security</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">holders</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">3,955,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Equity compensation plans</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">not approved by security</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">holders</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">N/A</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">N/A</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">N/A</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">TOTAL</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">3,955,000</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets forth information regarding
the beneficial ownership of our Common Stock as of March 21, 2012 for:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* each person who is known
to own beneficially more than 5% of our outstanding Common Stock;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* each of our executive
officers and directors; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">* all executive officers
and directors as a group.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The percentage of beneficial ownership for the
following table is based on 85,564,235 shares of Common Stock outstanding as of March 21, 2012.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Unless otherwise indicated below, to the Company's
knowledge, all persons and entities listed below have sole voting and investment power over their shares of Common Stock.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 38%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 31%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Amount and nature of</TD>
    <TD NOWRAP STYLE="width: 31%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Name and address of beneficial owner</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">beneficial ownership</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Percent of class (1)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Albert E. Whitehead</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">21,113,661 shares (2)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">24.68%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Chairman of the Board and</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Chief Executive Officer</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">3214 E. 73rd Street</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Tulsa, OK&nbsp; 74136-5927</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">John C. Kinard</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">781,331 shares (3)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0.91%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Director</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">52 S. Roslyn Street</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Denver, CO&nbsp; 80230</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Montague H. Hackett, Jr.</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">14,759,416 shares (4)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17.17%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Director</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">550 Park Avenue</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">New York, NY&nbsp; 10065</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Kevin R. Seth</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">761,111 shares (5)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0.89%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Director</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">c/o Edgewood Management LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">350 Park Avenue</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">New York, NY&nbsp; 10022</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">George H. Plewes</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5,160,238 (6)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.03%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">P. O. Box HM 1431</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Hamilton HMFX</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Bermuda</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">All current directors and executive officers as a group (4 persons)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">37,470,519 shares (7)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">43.21%</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(1) The percentage ownership for each person
is calculated in accordance with the rules of the SEC, which provide that any shares a person is deemed to beneficially own by
virtue of having a right to acquire shares upon the conversion of options or other rights are considered outstanding solely for
purposes of calculating such person's percentage ownership.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(2) This number includes: (i) 18,268,378
shares directly owned by the Albert E. Whitehead Living Trust, of which Mr. Whitehead is the trustee; (ii) 30,000 shares owned
by Mr. Whitehead's grandchildren for which he acts as custodian; and (iii) 2,815,283 shares directly owned by the Lacy E. Whitehead
Living Trust, of which Ms. Whitehead, Mr. Whitehead's wife, is trustee. Mr. Whitehead disclaims any interest in the shares owned
by the Lacy E. Whitehead Living Trust and the shares owned by his grandchildren.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(3) This number includes: (i) 161,331
shares directly owned by Mr. Kinard; (ii) 220,000 shares Mr. Kinard has the right to acquire pursuant to options granted to him
under the 1995 Stock Option Plan; (iii) 250,000 shares Mr. Kinard has the right to acquire pursuant to options granted to him
under the Company's 2006 Stock Incentive Plan; and (iv) 150,000 shares directly owned by Mr. Kinard's wife, of which Mr. Kinard
disclaims any interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(4) This number includes (i) 9,600,288 shares
directly owned by Mr. Hackett (ii) 400,000 shares Mr. Hackett has the right to acquire under the Company's 2006 Stock Incentive
Plan; (iii) 2,206,350 shares directly owned by the Trust F/B/O Melinda Hackett of which Mr. Hackett disclaims any interest; (iv)
1,945,635 shares directly owned by the Trust F/B/O Montague H. Hackett, III of which Mr. Hackett disclaims any interest; and (v)
607,143 shares directly owned by Mayme M. Hackett, Mr. Hackett's wife, of which Mr. Hackett disclaims any interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(5) This number includes (i) 253,968 shares
directly owned by Mr. Seth; (ii) 150,000 shares Mr. Seth has the right to acquire under the Company&rsquo;s 2006 Stock Incentive
Plan; and (iii) 357,143 shares held by Edgewood Management LLC Retirement plan F/B/O Kevin R. Seth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(6) This number includes 5,160,238 shares directly
owned by Mr. Plewes.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(7) This number is based on the numbers listed
in footnotes 2 through 5   above.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 13.&#9;CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS, AND DIRECTOR INDEPENDENCE.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Messrs. Whitehead and Hackett participated in
the Company's 2009-2010 private placements on the same terms and conditions as the other investors in the private placement. For
more information regarding such private placements, see &quot;Private Equity Placements&quot; under Item 7 of this Form 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2011, Mr. Whitehead advanced $100,000 to
the Company through a Convertible Note from the Company. For more information regarding the Convertible Note, see &quot;Advance
from Related Party&quot; under Item 7 of this Form 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2011, the Company issued 2,000,000
shares of its common stock to Albert E. Whitehead, its Chief Executive Officer for a purchase price of $0.05 per share, which resulted
in a total investment of $100,000. For more information regarding such purchase see &ldquo;Recent Sales of Unregistered Securities&rdquo;
under Item 5 of this Form 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2010, Messrs. Whitehead and Hackett
participated in the sale of working interests by the Company on the same terms and conditions as the other purchasers of the working
interest. For more information regarding such transaction, see &quot;Sale of Working Interest&quot; under Item 7 of this From 10-K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">DIRECTOR INDEPENDENCE</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has determined that Mr. Kinard,
Mr. Hackett and Mr. Seth are &quot;independent&quot; within the meaning of Rule 4200(a)(15) of the NASDAQ listing standards. Because
of the small size of the Company's Board of Directors, the Company has not established any committees. Rather, the entire Board
acts as, and performs the same functions as, the audit committee, compensation committee and nominating committee. Mr. Whitehead
is not considered &quot;independent&quot; within the meaning of Rule 4200(a)(15) of the NASDAQ listing standards.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 14. &#9;PRINCIPAL ACCOUNTING FEES AND SERVICES.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a summary of the fees billed
or to be billed to the Company by HoganTaylor LLP, the Company's independent registered public accounting firm, for professional
services rendered for the fiscal years ended December 31, 2011 and December 31, 2010:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 34%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Fee Category</TD>
    <TD NOWRAP STYLE="width: 33%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Fiscal 2011 Fees</TD>
    <TD NOWRAP STYLE="width: 33%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Fiscal 2010 Fees</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Audit Fees (1)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$36,250</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$35,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Audit - Related Fees (2)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Tax Fees</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">All Other Fees (3)</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Total Fees</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$36,250</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$35,000</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(1) Audit Fees consist of aggregate fees billed
for professional services rendered for the audit of the Company's annual financial statements and review of the interim financial
statements included in quarterly reports or services that are normally provided by the independent registered public accounting
firm in connection with statutory and regulatory filings or engagements for the fiscal years ended December 31, 2011 and December
31, 2010, respectively.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(2) Audit-Related fees consist of aggregate
fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial
statements and are not reported under &quot;Audit Fees.&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(3) All Other Fees consist of aggregate fees
billed for products and services provided by HoganTaylor LLP, other than those disclosed above.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The entire Board of Directors of the Company
is responsible for the appointment, compensation and oversight of the work of the independent registered public accounting firm
and approves in advance any services to be performed by the independent registered public accounting firm, whether audit-related
or not. The entire Board of Directors reviews each proposed engagement to determine whether the provision of services is compatible
with maintaining the independence of the independent registered public accounting firm. All of the fees shown above were pre-approved
by the entire Board of Directors.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART IV.</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ITEM 15. &#9;EXHIBITS, FINANCIAL STATEMENT SCHEDULES.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(a) (1) &#9;Financial Statements</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0pt; text-align: justify; text-indent: 44pt">The financial
statements under this item are included in Item 8 of Part II.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9; (2) &#9;Schedules</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 44pt">NONE</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9; (3) &#9;Exhibits</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Exhibit Description</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; font: bold 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">NO.</TD>
    <TD STYLE="width: 93%; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">3.1</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Articles of Incorporation of the Company, as amended (incorporated herein by reference to Exhibit 3.1 of the Company's Form 10-QSB for the period ended September 30, 1995, which was filed November 6, 1995).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">3.2</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Bylaws of the Company (incorporated herein by reference to Exhibit 3.2 of the Company's Form 10-QSB for the period ended March 31, 1998, which was filed May 15, 1998).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.1</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">1995 Stock Option Plan (incorporated herein by reference to Appendix A of the Company's Form DEFS 14A dated June 13, 1995, which was filed June 14, 1995).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.2</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of Stock Option Agreement (incorporated herein by reference to Exhibit 10(g) of the Company's Form 10-KSB for the year ended December 31, 1995, which was filed March 29, 1996).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.3</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Letter Agreement dated May 8, 2003 between the Company and O. F. Duffield (incorporated herein by reference to Exhibit 10.6 of the Company's Form 10-KSB for the year ended December 31, 2003, which was filed March 30, 2004).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.4</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">2006 Stock Incentive Plan (incorporated herein by reference to Exhibit A to the Company's 2006 Proxy Statement on Schedule 14A dated May 10, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.5</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of Non-qualified Stock Option Agreement (incorporated herein by reference to Exhibit 10.2 to the Company's Form 8-K dated June 5, 2006, which was filed on June 9, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.6</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of Non-qualified Stock Option Agreement for Non-employee Directors (incorporated herein by reference to Exhibit 10.3 to the Company's Form 8-K dated June 5, 2006, which was filed on June 9, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.7</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.4 to the Company's Form 8-K dated June 5, 2006, which was filed on June 9, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.8</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of Securities Purchase Agreement entered into between Empire Petroleum Corporation and certain accredited investors in connection with the 2009 private placement (incorporated herein by reference to Exhibit 10.1 to the Company's Form 10-Q for the period ended September 30, 2009, which was filed on November 16, 2009).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.9</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of securities purchase agreement entered into between Empire Petroleum Corporation and certain accredited&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investors in connection with the June-July 2010 private Placement (incorporated herein by reference to Exhibit 10.1 to the Company's Form 10-Q for the period ended June 30, 2010, which was filed on August 13, 2010).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.10</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form of common share warrant certificate issued by Empire Petroleum Corporation in favor of certain accredited&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; investors in connection with the June-July 2010 private placement (incorporated herein by reference to Exhibit 10.2 to the Company's Form 10-Q for the period ended June 30, 2010, which was filed on August 13, 2010).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.11</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Convertible Note Due February 1, 2012 (incorporated herein by reference to Exhibit 10.1 to the Company's Form 8-K dated February 1, 2011, which was filed on February 7, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.12</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Letter Agreement dated November 17, 2010 between the Company and Cortez Exploration, LLC (incorporated herein by reference to Exhibit 10.14 to the Company&rsquo;s Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 2010, which was filed on September 30, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.13</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Designation of Agent (Agency Agreement), dated April 27, 2005, between the Company and Cortez Exploration, LLC (incorporated herein by reference to Exhibit 10.15 to the Company&rsquo;s Form 10-K/A (Amendment No. 2) for the fiscal year ended December 31, 2010, which was filed on December 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.14</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Participation Agreement dated May 8, 2006 between the Company and Cortez Exploration, LLC (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.15</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Option to Purchase Okie Draw and South Okie Prospects, Natrona County, Wyoming, dated August 4, 2009, between the Company and Viking Exploration, LLC (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.16</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Amendment, dated February 4, 2010, of Option to Purchase Okie Draw and South Okie Prospects, Natrona County, Wyoming, dated August 4, 2009, between the Company and Viking Exploration, LLC (incorporated herein by reference to Exhibit 10.18 to the Company&rsquo;s Form 10-K/A (Amendment No. 2) for the fiscal year ended December 31, 2010, which was filed on December 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.17</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Designation of Agent (Agency Agreement), dated June 10, 2010, between the Company and Cortez Exploration, LLC (incorporated herein by reference to Exhibit 10.19 to the Company&rsquo;s Form 10-K/A (Amendment No. 2) for the fiscal year ended December 31, 2010, which was filed on December 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">10.18</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Prospect Letter Agreement dated October 4, 2010 between the Company and seven (7) investors to purchase a 1% interest in the Company&rsquo;s Gabbs Valley Prospect (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">31&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Certification of Chief Executive Officer (and principal financial officer) pursuant to Rules 13a - 14 (a) and 15(d) - 14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(1) (31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">32</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Certification of Chief Executive Officer (and principal financial officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">101</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Financial Statements for XBRL format (submitted herewith).</TD></TR>
</TABLE>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: left">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;Empire Petroleum Corporation</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Date:&nbsp; March 21, 2012</TD>
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">By:</TD>
    <TD STYLE="width: 52%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-decoration: underline">/s/Albert E. Whitehead</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Albert E. Whitehead</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">(principal executive officer, principal financial officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">and principal accounting officer)</TD></TR>
</TABLE>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 9pt; font-weight: bold">Signature</TD>
    <TD STYLE="width: 46%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 9pt; font-weight: bold">Title</TD>
    <TD STYLE="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 9pt; font-weight: bold">Date</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">/s/ Albert E. Whitehead</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Director, Chairman and Chief Executive Officer</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">March 21, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Albert E. Whitehead</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">/s/ John C. Kinard</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">March 21, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">John C. Kinard</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">/s/ Montague H. Hackett, Jr.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">March 21, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Montague H. Hackett, Jr.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">/s/ Kevin R. Seth</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">March 21, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Kevin R. Seth</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXHIBIT INDEX</B></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt; font-weight: bold">NO.</TD>
    <TD STYLE="width: 93%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">3.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Articles of Incorporation of the Company, as amended (incorporated herein by reference to Exhibit 3.1 of the Company's Form 10-QSB for the period ended September 30, 1995, which was filed November 6, 1995).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">3.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Bylaws of the Company (incorporated herein by reference to Exhibit 3.2 of the Company's Form 10-QSB for the period ended March 31, 1998, which was filed May 15, 1998).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">1995 Stock Option Plan (incorporated herein by reference to Appendix A of the Company's Form DEFS 14A dated June 13, 1995, which was filed June 14, 1995).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of Stock Option Agreement (incorporated herein by reference to Exhibit 10(g) of the Company's Form 10-KSB for the year ended December 31, 1995, which was filed March 29, 1996).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Letter Agreement dated May 8, 2003 between the Company and O. F. Duffield (incorporated herein by reference to Exhibit 10.6 of the Company's Form 10-KSB for the year ended December 31, 2003, which was filed March 30, 2004).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">2006 Stock Incentive Plan (incorporated herein by reference to Exhibit A to the Company's 2006 Proxy Statement on Schedule 14A dated May 10, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of Non-qualified Stock Option Agreement (incorporated herein by reference to Exhibit 10.2 to the Company's Form 8-K dated June 5, 2006, which was filed on June 9, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of Non-qualified Stock Option Agreement for Non-employee Directors (incorporated herein by reference to Exhibit 10.3 to the Company's Form 8-K dated June 5, 2006, which was filed on June 9, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.4 to the Company's Form 8-K dated June 5, 2006, which was filed on June 9, 2006).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of Securities Purchase Agreement entered into between Empire Petroleum Corporation and certain accredited investors in connection with the 2009 private placement (incorporated herein by reference to Exhibit 10.1 to the Company's Form 10-Q for the period ended September 30, 2009, which was filed on November 16, 2009).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.9</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of securities purchase agreement entered into between Empire Petroleum Corporation and certain accredited&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investors in connection with the June-July 2010 private Placement (incorporated herein by reference to Exhibit 10.1 to the Company's Form 10-Q for the period ended June 30, 2010, which was filed on August 13, 2010).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Form of common share warrant certificate issued by Empire Petroleum Corporation in favor of certain accredited&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; investors in connection with the June-July 2010 private placement (incorporated herein by reference to Exhibit 10.2 to the Company's Form 10-Q for the period ended June 30, 2010, which was filed on August 13, 2010).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.11</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Convertible Note Due February 1, 2012 (incorporated herein by reference to Exhibit 10.1 to the Company's Form 8-K dated February 1, 2011, which was filed on February 7, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.12</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Letter Agreement dated November 17, 2010 between the Company and Cortez Exploration, LLC (incorporated herein by reference to Exhibit 10.14 to the Company&rsquo;s Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 2010, which was filed on September 30, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.13</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Designation of Agent (Agency Agreement), dated April 27, 2005, between the Company and Cortez Exploration, LLC (incorporated herein by reference to Exhibit 10.15 to the Company&rsquo;s Form 10-K/A (Amendment No. 2) for the fiscal year ended December 31, 2010, which was filed on December 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.14</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Participation Agreement dated May 8, 2006 between the Company and Cortez Exploration, LLC (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.15</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Option to Purchase Okie Draw and South Okie Prospects, Natrona County, Wyoming, dated August 4, 2009, between the Company and Viking Exploration, LLC (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.16</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Amendment, dated February 4, 2010, of Option to Purchase Okie Draw and South Okie Prospects, Natrona County, Wyoming, dated August 4, 2009, between the Company and Viking Exploration, LLC (incorporated herein by reference to Exhibit 10.18 to the Company&rsquo;s Form 10-K/A (Amendment No. 2) for the fiscal year ended December 31, 2010, which was filed on December 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.17</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Designation of Agent (Agency Agreement), dated June 10, 2010, between the Company and Cortez Exploration, LLC (incorporated herein by reference to Exhibit 10.19 to the Company&rsquo;s Form 10-K/A (Amendment No. 2) for the fiscal year ended December 31, 2010, which was filed on December 14, 2011).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">10.18</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 9pt">Prospect Letter Agreement dated October 4, 2010 between the Company and seven (7) investors to purchase a 1% interest in the Company&rsquo;s Gabbs Valley Prospect (submitted herewith).</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">31&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">Certification of Chief Executive Officer (and principal financial officer) pursuant to Rules 13a - 14 (a) and 15(d) - 14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(1) (31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (submitted herewith).</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">32</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">Certification of Chief Executive Officer (and principal financial officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (submitted herewith).</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">101</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; font-size: 10pt">Financial Statements for XBRL format (submitted herewith).</TD></TR>
</TABLE>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">FINANCIAL STATEMENTS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">CONTENTS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 86%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">Page No.</TD></TR>
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<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Balance Sheets as of December 31, 2011 and 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">25</TD></TR>
<TR STYLE="vertical-align: bottom">
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Statements of Operations for the years ended December 31, 2011 and 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">26</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Statements of Changes in Stockholders' Equity for the years ended</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">27</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">December 31, 2011 and 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Statements of Cash Flows for the years ended December 31, 2011 and 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">28</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Notes to Financial Statements</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">29-34</TD></TR>
</TABLE>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">REPORT OF INDEPENDENT</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">REGISTERED PUBLIC ACCOUNTING FIRM</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To the Board of Directors and Stockholders of
Empire Petroleum Corporation</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have audited the accompanying balance sheets
of Empire Petroleum Corporation as of December 31, 2011 and 2010, and the related statements of operations, changes in stockholders'
equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audits.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We conducted our audits in accordance with the
standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial position of Empire Petroleum Corporation as of December 31, 2011
and 2010, and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted
accounting principles.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company
has incurred significant losses since inception. The ultimate recoverability of the Company's investment in its oil and gas interests
is dependent upon the existence and discovery and development of economically recoverable oil and gas reserves and the ability
of the Company to obtain necessary financing to carry out its exploration and development program. This condition raises substantial
doubt about the Company's ability to continue as a going concern. Management's plan concerning this matter is also described in
Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We were not engaged to examine management's
assertion about the effectiveness of Empire Petroleum Corporation's internal control over financial reporting as of December 31,
2011, included in the accompanying Management's Annual Report on Internal Controls and, accordingly, we do not express an opinion
thereon.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: right">&#9;/s/ HOGANTAYLOR LLP</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: right">&#9;Tulsa, Oklahoma</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: right">&#9;March 21, 2012</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">BALANCE SHEETS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">DECEMBER 31, 2011 AND 2010</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 59%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 9pt">2011</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 19%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 9pt">2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt; text-decoration: underline">ASSETS</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Current assets:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,978</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68,689</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable (net of allowance of $3,750)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">7,195</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">45,915</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">1,100</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">7,336</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Total current assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">13,273</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">121,940</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Property &amp; equipment less accumulated depreciation and depletion</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">255,215</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">255,215</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Other assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">58,442</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Total assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 326,930</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 377,155</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt; text-decoration: underline">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Current liabilities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,487</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 149,065</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Notes payable &ndash; related party</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">100,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Total current liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">111,487</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">149,065</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Stockholders&rsquo; equity:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Common stock&nbsp; - $.001 par value 100,000,000 shares authorized,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">85,564</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">83,069</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; 85,564,235 and 83,069,235 shares issued and outstanding</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; respectively</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Additional paid in capital</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">14,136,432</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">13,904,142</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">(14,006,553)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">(13,759,121)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Total stockholders&rsquo; equity</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">215,443</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">228,090</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; font-size: 9pt">Total liabilities and stockholders&rsquo; equity</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 326,930</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font-size: 9pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 377,155</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">See accompanying notes to financial statements</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">STATEMENTS OF OPERATIONS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Years Ended December 31, 2011 and 2010</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 38%; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Revenue:</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp; Petroleum Sales</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Costs and expenses:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp; Well abandonment expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,221,293</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp; Production &amp; operating</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">22,060</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">178,174</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp; General &amp; administrative</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">222,133</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">231,996</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">244,193</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,631,463</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Operating loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(244,193)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2,631,463)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Other income and (expense):</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp; Interest income</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,561</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp; Interest expense</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(3,250)</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;Total other income and (expense)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(3,239)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,561</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net income (loss)</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (247,432)</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2,627,902)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net income (loss) per common</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; share, basic and diluted</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.00)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.03)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Weighted average number of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; common shares outstanding</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; basic and diluted</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">84,163,193</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">80,487,318</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">See accompanying notes to financial statements</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Years ended December 31, 2011 and 2010</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 28%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Additional</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Paid in</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Accumulated</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Shares</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Par Value</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Capital</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Deficit</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Balances December 31, 2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">74,553,361</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74,553</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$ 13,149,578</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$ (11,131,219)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp; 2,092,912</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2,627,902)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2,627,902)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Value of services contributed by employee</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">50,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">50,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Issuance of Stock Options</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">28,080</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">28,080</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Issuance of Common Stock</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8,515,874</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8,516</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">676,484</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">685,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Balances December 31, 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">83,069,235</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">83,069</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13,904,142</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(13,759,121)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">228,090</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(247,432)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(247,432)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Value of services contributed by employee</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">50,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">50,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Issuance of Stock Options</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11,295</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11,295</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Issuance of Common Stock</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,495,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,495</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">170,995</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">173,490</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Balances December 31, 2011</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">85,564,235</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,564</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp; 4,136,432</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp; (14,006,553)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 215,443</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">See accompanying notes to financial statements</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">STATEMENTS OF CASH FLOWS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Years ended December 31, 2011 and 2010</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 67%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 16%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash flows from operating activities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Net loss</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(247,432)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,627,902)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Adjustments to reconcile net loss to net</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; cash used in operating activities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Value of services contributed by employee</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Stock option plan expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,295</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28,080</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Well abandonment expense</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,221,293</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Change in operating assets and liabilities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Accounts receivable and other assets</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(19,722)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Prepaid expenses</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,236</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(7,336)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Accounts payable and accrued liabilities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (64,088)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 138,482</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net cash used in operating activities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(263,711)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (197,383)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash flow from investing activities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Sale of working interest</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 700,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Acquisition of lease acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (35,000)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Well equipment and drilling costs</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2,255,493)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net cash provided by (used in) investing activities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,590,493)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash flows from financing activities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Proceeds from private equity placement</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 685,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Proceeds from related party, note payable</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 100,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net cash provided by Financing Activities</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 685,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net increase (decrease) in cash</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (63,711)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,102,876)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash - Beginning of period</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68,689</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,171,565</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cash - End of period</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 2.25pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,978</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 2.25pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,689</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Supplemental Disclosure of Non Cash Items:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;&nbsp; Common Stock issued for accounts payable</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;73,490</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1.5pt double; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">See accompanying notes to financial statements</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">NOTES TO FINANCIAL STATEMENTS</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">DECEMBER 31, 2011 and 2010</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 20, 2001, Americomm Resources Corporation
merged with its wholly-owned subsidiary, Empire Petroleum Corporation, and simultaneously changed the name of the corporation to
Empire Petroleum Corporation (the &quot;Company&quot;). Both the merger and name change were effective as of August 15, 2001. Americomm
Resources Corporation was originally incorporated in the State of Utah on the 22nd day of August 1983, as Chambers Energy Corporation.
On the 7th day of March 1985, the state of incorporation was changed to Delaware by means of a merger with Americomm Corporation,
a Delaware corporation formed for the purpose of effecting the said change. In July 1995, the Company changed its name to Americomm
Resources Corporation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1. Continuing operations:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The ultimate recoverability of the Company's
investment in its oil and gas interests is dependent upon the existence and discovery of economically recoverable oil and gas reserves,
the ability of the Company to obtain necessary financing to further develop the interests, and upon the ability to attain future
profitable production. The Company has been incurring significant losses in recent years.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Virtually all of the Company's assets are invested
in the Gabbs Valley and South Okie Prospects, both of which are unproven, that is, they have not been evaluated as being capable
of producing economical quantities of reserves. The Company acquired additional leasehold interests in and drilled a test well
on its Gabbs Valley Prospect in 2006. Completion of the test well was suspended pending evaluation of the geologic information
and the securing of additional capital to continue the evaluation and possibly to complete the well. The Company drilled a test
well on the Prospect in 2010 which recovered oil, however the oil contained paraffin which prevented it from producing at economic
rates. The Company continues to believe that the Prospect contains economical reserve quantities and is actively conducting additional
studies and will be pursuing potential funding and/or partners to continue evaluation and exploration.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company plans to supplement current studies
of the South Okie Prospect with a seismograph evaluation to verify the potential of the prospect. The Company has acquired 11 miles
of seismic and studies of this data were completed in early January 2010 and an additional geological study was also completed
in early January 2010.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The continuation of the Company is dependent
upon the ability of the Company to attain future profitable operations. These financial statements have been prepared on the basis
of United States generally accepted accounting principles applicable to a company with continuing operations, which assume that
the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its obligations
in the normal course of operations. Management believes the going concern assumption to be appropriate for these financial statements.
If the going concern assumption were not appropriate for these financial statements, then adjustments might be necessary to the
carrying value of assets and liabilities, reported expenses and the balance sheet classifications used.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2. Significant accounting policies:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity
with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(a) Capital assets:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the successful efforts method
of accounting for its oil and gas activities. Costs incurred are deferred until exploration and completion results are evaluated.
At such time, costs of activities with economically recoverable reserves are capitalized as proven properties, and costs of unsuccessful
or uneconomical activities are expensed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Capitalized drilling costs are reviewed periodically
for impairment. Costs related to impaired prospects or unsuccessful exploratory drilling are charged to expense. Management's assessment
of the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such
leaseholds impact the amount and timing of impairment provisions. An impairment expense could result if oil and gas prices decline
in the future as it may not be economical to develop some of these unproved properties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(b) Per share amounts:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company calculates and discloses basic earnings
per share (&quot;Basic EPS&quot;) and diluted earnings per share (&quot;Diluted EPS&quot;). The computation of basic earnings per
share is computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares
during the period.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Diluted EPS gives effect to all dilutive potential
common shares outstanding during the period. The computation of diluted EPS does not assume conversion, exercise or contingent
exercise of securities that would have an anti-dilutive effect on losses. As a result, if there is a loss from continuing operations,
Diluted EPS is computed in the same manner as Basic EPS is computed. At December 31, 2011 the Company had 1,245,000 options outstanding
that were not included in the calculation of diluted earnings per share. Such financial instruments may become dilutive and would
then need to be included in future calculations of Diluted EPS.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(c) Income taxes:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes in accordance
with the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and
liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which those
temporary differences are expected to be recovered or settled. A valuation allowance is established if management determines it
is more likely than not that some portion of a deferred tax asset will not be realized.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(d) Financial instruments:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of current assets and current
liabilities approximate their fair value due to the relatively short period to maturity of the instruments.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(e) Stock option plan:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses options granted over the
vesting period based on the grant date fair value of the award.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(f) Obligations associated with the retirement
of assets:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows Financial Accounting Standards
Board (&ldquo;FASB&rdquo;) guidance on accounting for asset retirement obligations, which among other matters, addresses financial
accounting and reporting for legal obligations associated with the retirement of tangible long-lived assets and the associated
asset retirement costs. This guidance requires that the fair value of a liability for an asset retirement obligation be recognized
in the period in which it is incurred, with the associated asset retirement cost capitalized as part of the related asset and allocated
to expense over the asset's useful life. The Company applies its analysis to producing wells. The Company accrued $0 and $0, respectively
at December 31, 2011 and 2010 as an asset retirement obligation for wells in Nevada, which was recorded as an expense since the
well costs have been fully impaired.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(g) Recent Accounting Pronouncements:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The FASB periodically issues new accounting
standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently
issued pronouncements and concluded that the following new accounting standards are applicable:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2011, the FASB issued Accounting Standards
Update 2011-05, <I>Presentation of Comprehensive Income. </I>This Update amended the provisions of FASB ASC 220-10 by eliminating
the option of reporting other comprehensive income in the statement of changes in stockholders&rsquo; equity.&nbsp;&nbsp;Companies
will have the option of presenting net income and other comprehensive income in a single, continuous statement of comprehensive
income or presenting two separate but consecutive statements of net income and comprehensive income.&nbsp;&nbsp;The new presentation
requirements are effective for interim and annual periods beginning after December 15, 2011.&nbsp;&nbsp;Therefore, this new presentation
will first be reflected in the Company&rsquo;s March 31, 2012 consolidated financial statements.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3. Property and equipment:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2003, the Company acquired a 10% interest
in the Gabbs Valley Prospect of Western Nevada by issuing 2,000,000 shares of Company stock. The Company has recorded its investment
at $200,000. In 2005, the Company conducted a seismic survey of the Gabbs Valley Prospect. Based on the results of the seismic
survey, during 2006, the Company entered into an agreement to increase its working interest in the prospect to 40% by paying $675,000
plus 55% of the drilling costs through completion. The Company contracted a drilling rig, which commenced drilling the Empire
Cobble Cuesta 1-12-12N-34E, Nye County, Nevada in September 2006. After reaching a depth of 5,195 feet the Company ceased drilling
operations, ran electronic logs, installed a wellhead, and conditioned the hole so that it might be re-entered or deepened at
a later date. In April 2007, the Company re-entered the well and based on the results of drill stem tests, determined that the
formation was very sensitive to the mud and water used in drilling the test well, causing clogs in the formation to swell which
prevented any oil which might be present to flow into the well bore. The total gross acres of this prospect was increased to 92,826
acres by the acquisition of 30,917 acres from the U.S. Department of Interior in June 2006, at a cost of $36,689, the acquisition
of 9,943.91 acres in September 2008, at a cost of $13,025 and the acquisition of 7,680 acres in September 2009, at a cost of $12,615.
The Company increased its interest to 57% in the prospect leases in 2007 when one of the joint participants elected to surrender
its 30% interest. The Company and the remaining joint owners assumed liabilities of approximately $68,000 to acquire the interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2010, the Company drilled a test well in
the Paradise Unit of the Gabbs Valley Prospect to a depth of 4,250 feet. The well produced small amounts of oil containing paraffin
which may have restricted oil flow. A co-owner of the lease elected to take over the lease and well, including remediation of the
site, as of December 31, 2010 the Company had expensed $2,255,493 of intangible drilling costs related to the Paradise Unit test
well. Also in 2010, the Company sold a 7% working interest in the Gabbs Valley Prospect for $700,000. In December 2011, the Company
acquired leases on 3,840 acres of undeveloped land in Nye County, Nevada, which are a part of the Gabbs Valley Prospect. As of
December 31, 2011, the Gabbs Valley Prospect consisted of approximately 34,186 gross acres of federal leases located in Nye County,
Nevada, of which the Company owns a 50% working interest in 30,346 gross acres and an 88.5% in 3,840 gross acres.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's other property and equipment,
totaling $2,561 at December 31, 2011, consists entirely of office furniture, fixtures and equipment, which are fully depreciated.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4. Capital Stock:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2005, the Company raised $500,000 of net
proceeds by selling 5,000,000 shares of newly issued common stock along with warrants to purchase 1,250,000 shares of common stock
which, subject to certain restrictions, could have been exercised for a period of one year at an exercise price of $0.25. Proceeds
of the original placement were allocated $67,875 to common stock warrants and $432,125 to common stock and paid in capital. In
2006, the warrants were extended twice; the extensions reduced the value of the warrants to $18,250. The value assigned to the
warrants was determined using the Black-Scholes option valuation method with the following assumptions: no dividend yield, expected
volatility of 154%, risk free interest rate of 3.28% and expected life of one year. Assumptions used for the extensions were:
no dividend yield, expected volatility of 153%, risk free interest rate of 4.86% and expected life of 6 months. The warrants expired
on November 15, 2010 with none being exercised.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2006, the Company raised $1,450,000 of net
proceeds by selling 7,250,000 shares of newly issued stock along with warrants to purchase 1,812,500 shares of common stock, which,
subject to certain restrictions, could have been exercised on or before March 15, 2009 subsequently extended to November 15, 2010
at an exercise price of $0.50. Proceeds of the placement were allocated $144,675 to common stock warrants and $1,305,325 to common
stock and paid in capital. The value assigned to the warrants was determined using the Black-Scholes option valuation method with
the following assumptions: no dividend yield, expected volatility of 148% risk-free interest rate of 5.09% and an expected life
of one year. The warrants expired November 15, 2010 with none being exercised.</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2007, the Company raised $1,000,000 of net
proceeds by selling 5,000,000 shares of newly issued stock, along with warrants to purchase 1,250,000 shares of common stock,
which subject to certain restrictions, could have been exercised until March 15, 2009 (subsequently extended to November 15, 2010
at an exercise price of $0.50 per share. Proceeds of the placement were allocated $80,000 to common stock warrants and $920,000
to common stock and paid in capital. The value assigned to the warrants was determined by using the Black-Scholes option valuation
methods with the following assumptions: no dividend yield, expected volatility of 136%, risk free interest rate of 4.94%, and
an expected useful life of one year. The warrants expired November 15, 2010 with none being exercised.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2009, the Company raised $1,215,216 of net
proceeds by selling 17,360,233 shares of newly issued common stock. Proceeds were utilized for the Company's share of costs to
drill a new well on the Gabbs Valley Prospect (See Note 1).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2010, the Company raised $685,000 of net
proceeds by selling 8,515,874 shares of newly issued stock, along with warrants to purchase 2,222,226 shares of Common Stock which,
subject to certain restrictions, could have been exercised until June 16, 2011 at an exercise price of $0.50 per share. Proceeds
of the placements were allocated $101,250 to Common Stock Warrants and $583,750 to Common Stock and paid in capital. The value
assigned to the warrants was determined by using the Black-Scholes option valuation methods with the following assumptions: no
dividend yield, expected volatility of 155%, risk free interest rate of .3% and an expected useful life of one year. The warrants
expired in 2011 with none being exercised.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2011, the Company issued 2,000,000
shares of its common stock to Albert E. Whitehead, its Chief Executive Officer, for a purchase price of $0.05 per share, which
resulted in a total investment of $100,000.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5. Stock options:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under a stock option plan adopted in 1995, the
Company had the discretion to grant options for up to 1,600,000 shares of common stock until May 15, 2005, at which time the plan
terminated except to the extent necessary to govern outstanding options. Stock options granted under the plan vest on grant date
and expire ten years from the date of grant plus 30 days. The exercise price of the options is the fair market value on the date
of grant.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the Company's 2006 Annual Meeting of Stockholders,
the stockholders approved the 2006 Stock Incentive Plan (the &quot;Plan&quot;). The Plan permits the issuance of stock options,
restricted stock awards, and performance shares to employees, officers, directors, and consultants of the Company. Initially, and
until such time as the Board creates a Compensation Committee, the Board of Directors will administer the Plan. The total number
of shares of common stock that may be issued pursuant to awards under the Plan is 5,000,000. Under the Plan, no participant may
receive awards of stock options that cover in the aggregate more than 500,000 shares of common stock in any fiscal year. Unless
terminated by the Board, or upon the granting of awards covering all of the shares subject to the Plan, the Plan shall terminate
on June 5, 2016.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses the cost of options granted
over the vesting period of the option based on the grant-date fair value of the award. No options were granted in 2009. For the
year ended December 31, 2011 and 2010, the Company recognized an expense of $11,295 and $28,080, respectively, related to options
granted under the Plan.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair values were estimated at the date of grants
of the options, using the Black-Scholes option valuation model with the following weighted average assumptions: risk-free interest
rate of 3.65% and 2.77%, volatility factor of the expected market price of the Company's common stock of 172% and 142%, no dividend
yield on the Company's common stock, and a weighted average expected</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">life of the options of 5 years. The Black-Scholes
option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions
and are fully transferable. For purposes of determining the expected life of the options, the Company utilizes the Simplified Method
as defined in Staff Accounting Bulletin No. 107 issued by the Securities and Exchange Commission.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition options valuation models require
the input of highly subjective assumptions including stock price volatility.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, there was no unrecognized
compensation expense related to nonvested share-based compensation arrangements under the Plan.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the Company's Incentive Plan as
of December 31, 2011 and changes during the year is presented below:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 59%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 18%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted Average</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise Price</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at Beginning of Year 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,070,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.162</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Granted</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">120,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.25</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cancelled or Exercised</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">95,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.44</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at End of Year 2010</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,095,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.148</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Granted</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">150,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.10</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cancelled or Exercised</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.00</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at End of Year 2011</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,245,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information about
stock options outstanding at December 2011:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options Outstanding</TD>
    <TD NOWRAP COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options Exercisable</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 16%; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Range of</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Remaining</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Outstanding</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Contractual</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercisable</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Prices</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">at 12/31/11</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Life</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Price</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">at 12/31/11</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Price</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.10 - $0.26</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5.86 Years</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">6. Income taxes:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes differs from
the amount obtained by applying the Federal income tax rate of 34% to income before income taxes. The difference relates to the
following items:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</TD>
    <TD NOWRAP STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Statutory tax rate</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">34%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">34%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Expected tax benefit</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">$&nbsp;&nbsp;&nbsp;(890,000)</TD></TR>
<TR STYLE="vertical-align: bottom">
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">85,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">890,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Tax provision (benefit) as reported</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">$0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="5" STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">The components of deferred income taxes at December 31, 2011 are as follows:</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Deferred tax assets:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Loss carry-forwards</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">$2,300,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">$2,650,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Valuation allowance</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(2,015,000)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">(2,125,000)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; text-align: right">285,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Deferred tax liabilities:</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Property and equipment</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">285,000</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">525,000</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net deferred taxes</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">$0</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; text-align: right">$0</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2011, the Company had net operating
loss carryforwards of approximately $7,850,000 which expire beginning in 2012.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Utilization of the Company's loss carryforwards
is dependent on realizing taxable income. Deferred tax assets for these carryforwards have been reduced by a valuation allowance
up to an amount equal to estimated deferred tax liability.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is no longer subject to income tax
examinations by tax authorities for years before 2007. The Company is not currently the subject of any income tax examinations
by any tax authorities.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based upon a review of its income tax filing
positions, the Company believes that its positions would be sustained upon an audit and does not anticipate any adjustments that
would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been
recorded. The Company recognizes interest related to income taxes as interest expense and penalties as operating expenses.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">7. Oil Sale Revenue:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company currently records revenue from petroleum
sales when received from the operator of the well. Oil Sale Revenue is reported net of working interest and overriding royalty
amounts due. Prior to 2006, the Company was responsible for distributing allocable portions of oil sale revenue to working interest
and royalty owners for production in the Cheyenne River Prospect. Accordingly, a liability for estimated royalty payments was recorded
when oil sale proceeds were received since a division order had not been completed, certain amounts were credited to royalties
payable until the division order issue was resolved.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">8. Operating lease:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company leases office space under an operating
lease agreement with an unrelated party which expires in June 2012. Monthly lease payments are $1,100.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Rent expense for each of the years ended December
31, 2011 and 2010 was $13,200 and $12,649, respectively.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">9. Related Party Transactions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 1, 2011 the Company and its Chief
Executive Officer entered into an agreement where the Company received $100,000 in exchange for entering into a Convertible Note
agreement. The note accrues interest at an annual rate of 4% and was originally set to mature on February 1, 2012. The note may
be converted into Common Stock of the Company by the holder at a conversion price of $.10 per share. The maturity date of the Note
has been extended to August 1, 2012.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">10. Subsequent Events:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2012, the Company&rsquo;s Chief Executive
Officer advanced $20,000 to the Company for general operating purposes.</P>


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    <us-gaap:StockholdersEquityNoteDisclosureTextBlock contextRef="From2011-01-01to2011-12-31">&lt;p style="margin: 0pt"&gt;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;4. Capital Stock:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In 2005, the Company raised $500,000 of net&#13;proceeds by selling 5,000,000 shares of newly issued common stock along with warrants to purchase 1,250,000 shares of common stock&#13;which, subject to certain restrictions, could have been exercised for a period of one year at an exercise price of $0.25. Proceeds&#13;of the original placement were allocated $67,875 to common stock warrants and&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;$432,125 to common stock and paid in capital.&#13;In 2006, the warrants were extended twice; the extensions reduced the value of the warrants to $18,250. The value assigned to the&#13;warrants was determined using the Black-Scholes option valuation method with the following assumptions: no dividend yield, expected&#13;volatility of 154%, risk free interest rate of 3.28% and expected life of one year. Assumptions used for the extensions were: no&#13;dividend yield, expected volatility of 153%, risk free interest rate of 4.86% and&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;expected life of 6 months. The warrants expired&#13;on November 15, 2010 with none being exercised.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In 2006, the Company raised $1,450,000 of net&#13;proceeds by selling 7,250,000 shares of newly issued stock along with warrants to purchase 1,812,500 shares of common stock, which,&#13;subject to certain restrictions, could have been exercised on or before March 15, 2009 subsequently extended to November 15, 2010&#13;at an exercise price of $0.50. Proceeds of the placement were allocated $144,675 to common stock warrants and $1,305,325 to common&#13;stock and paid in capital. The value assigned to the warrants was determined using the Black-Scholes option valuation method with&#13;the following assumptions: no dividend yield, expected volatility of 148% risk-free interest rate of 5.09% and an expected life&#13;of one year. The warrants expired November 15, 2010 with none being exercised.&lt;/p&gt;&#13;&#13;&lt;p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In 2007, the Company raised $1,000,000 of net&#13;proceeds by selling 5,000,000 shares of newly issued stock, along with warrants to purchase 1,250,000 shares of common stock, which&#13;subject to certain restrictions, could have been exercised until March 15, 2009 (subsequently extended to November 15, 2010 at&#13;an exercise price of $0.50 per share. Proceeds of the placement&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;were allocated $80,000 to common stock warrants&#13;and $920,000 to common stock and paid in capital. The value assigned to the warrants was determined by using the Black-Scholes&#13;option valuation methods with the following assumptions: no dividend yield, expected volatility of 136%, risk free interest rate&#13;of 4.94%, and an expected useful life of one year. The warrants expired November 15, 2010 with none being exercised.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In 2009, the Company raised $1,215,216 of net&#13;proceeds by selling 17,360,233 shares of newly issued common stock. Proceeds were utilized for the Company's share of costs to&#13;drill a new well on the Gabbs Valley Prospect (See Note 1).&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In 2010, the Company raised $685,000 of net&#13;proceeds by selling 8,515,874 shares of newly issued stock, along with warrants to purchase 2,222,226 shares of Common Stock which,&#13;subject to certain restrictions, could have been exercised until June 16, 2011 at an exercise price of $0.50 per share. Proceeds&#13;of the placements were allocated $101,250 to Common Stock Warrants and $583,750 to Common Stock and paid in capital. The value&#13;assigned to the warrants was determined by using the Black-Scholes option valuation methods with the following assumptions: no&#13;dividend yield, expected volatility of 155%, risk free interest rate of .3% and an expected useful life of one year. The warrants&#13;expired in 2011 with none being exercised.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In August 2011, the Company issued 2,000,000&#13;shares of its common stock to Albert E. Whitehead, its Chief Executive Officer, for a purchase price of $0.05 per share, which&#13;resulted in a total investment of $100,000.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;5. Stock options:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Under a stock option plan adopted in 1995, the&#13;Company had the discretion to grant options for up to 1,600,000 shares of common stock until May 15, 2005, at which time the plan&#13;terminated except to the extent necessary to govern outstanding options. Stock options granted under the plan vest on grant date&#13;and expire ten years from the date of grant plus 30 days. The exercise price of the options is the fair market value on the date&#13;of grant.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;At the Company's 2006 Annual Meeting of Stockholders,&#13;the stockholders approved the 2006 Stock Incentive Plan (the &amp;#34;Plan&amp;#34;). The Plan permits the issuance of stock options,&#13;restricted stock awards, and performance shares to employees, officers, directors, and consultants of the Company. Initially, and&#13;until such time as the Board creates a Compensation Committee, the Board of Directors will administer the Plan. The total number&#13;of shares of common stock that may be issued pursuant to awards under the Plan is 5,000,000. Under the Plan, no participant may&#13;receive awards of stock options that cover in the aggregate more than 500,000 shares of common stock in any fiscal year. Unless&#13;terminated by the Board, or upon the granting of awards covering all of the shares subject to the Plan, the Plan shall terminate&#13;on June 5, 2016.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company expenses the cost of options granted&#13;over the vesting period of the option based on the grant-date fair value of the award. No options were granted in 2009. For the&#13;year ended December 31, 2011 and 2010, the Company recognized an expense of $11,295 and $28,080, respectively, related to options&#13;granted under the Plan.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Fair values were estimated at the date of grants&#13;of the options, using the Black-Scholes option valuation model with the following weighted average assumptions: risk-free interest&#13;rate of 3.65% and 2.77%, volatility factor of the expected market price of the Company's common stock of 172% and 142%, no dividend&#13;yield on the Company's common stock, and a weighted average expected&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;life of the options of 5 years. The Black-Scholes&#13;option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions&#13;and are fully transferable. For purposes of determining the expected life of the options, the Company utilizes the Simplified Method&#13;as defined in Staff Accounting Bulletin No. 107 issued by the Securities and Exchange Commission.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In addition options valuation models require&#13;the input of highly subjective assumptions including stock price volatility.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;As of December 31, 2011, there was no unrecognized&#13;compensation expense related to nonvested share-based compensation arrangements under the Plan.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;A summary of the Company's Incentive Plan as&#13;of December 31, 2011 and changes during the year is presented below:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="width: 59%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 18%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Weighted Average&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Options&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Exercise Price&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Outstanding at Beginning of Year 2010&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;1,070,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.162&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Granted&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;120,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.25&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Cancelled or Exercised&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;95,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.44&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Outstanding at End of Year 2010&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;1,095,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.148&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Granted&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;150,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.10&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Cancelled or Exercised&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;0&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.00&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Outstanding at End of Year 2011&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;1,245,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.142&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;/table&gt;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The following table summarizes information about&#13;stock options outstanding at December 2011:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" colspan="2" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Options Outstanding&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" colspan="3" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Options Exercisable&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 16%; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Weighted&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Average&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Weighted&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Weighted&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Range of&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Number&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Remaining&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Average&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Number&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Average&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Exercise&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Outstanding&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Contractual&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Exercise&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Exercisable&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Exercise&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Prices&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;at 12/31/11&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Life&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Price&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;at 12/31/11&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Price&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.10 - $0.26&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;1,245,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;5.86 Years&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.142&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;1,245,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;$0.142&lt;/td&gt;&lt;/tr&gt;&#13;&lt;/table&gt;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;6. Income taxes:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The provision for income taxes differs from&#13;the amount obtained by applying the Federal income tax rate of 34% to income before income taxes. The difference relates to the&#13;following items:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;2011&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;2010&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;Statutory tax rate&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;34%&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;34%&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Expected tax benefit&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; (85,000)&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; (890,000)&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Benefit of losses not recognized&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;&amp;#160;85,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; 890,000&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Tax provision (benefit) as reported&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; -&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; -&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" colspan="5" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;The components of deferred income taxes at December 31, 2011 are as follows:&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;2011&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"&gt;2010&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Deferred tax assets:&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Loss carry-forwards&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; 2,300,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; 2,650,000&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Valuation allowance&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;&amp;#160;(2,015,000)&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;(2,125,000)&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"&gt;285,000&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; 525,000&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Deferred tax liabilities:&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Property and equipment&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13; 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padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&#13;&lt;tr style="vertical-align: bottom"&gt;&#13;    &lt;td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;Net deferred taxes&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt"&gt;&amp;#160;&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left"&gt;&amp;#160;$&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160; -&lt;/td&gt;&#13;    &lt;td nowrap="nowrap" style="padding-right: 5.4pt; 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Deferred tax assets for these carryforwards have been reduced by a valuation allowance&#13;up to an amount equal to estimated deferred tax liability.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company is no longer subject to income tax&#13;examinations by tax authorities for years before 2007. The Company is not currently the subject of any income tax examinations&#13;by any tax authorities.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Based upon a review of its income tax filing&#13;positions, the Company believes that its positions would be sustained upon an audit and does not anticipate any adjustments that&#13;would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been&#13;recorded. The Company recognizes interest related to income taxes as interest expense and penalties as operating expenses.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;7. Oil Sale Revenue:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company currently records revenue from petroleum&#13;sales when received from the operator of the well. Oil Sale Revenue is reported net of working interest and overriding royalty&#13;amounts due. Prior to 2006, the Company was responsible for distributing allocable portions of oil sale revenue to working interest&#13;and royalty owners for production in the Cheyenne River Prospect. Accordingly, a liability for estimated royalty payments was recorded&#13;when oil sale proceeds were received since a division order had not been completed, certain amounts were credited to royalties&#13;payable until the division order issue was resolved.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;8. Operating lease:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company leases office space under an operating&#13;lease agreement with an unrelated party which expires in June 2012. 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    <us-gaap:BasisOfPresentationAndSignificantAccountingPoliciesTextBlock contextRef="From2011-01-01to2011-12-31">&lt;p style="margin: 0pt"&gt;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;EMPIRE PETROLEUM CORPORATION&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;NOTES TO FINANCIAL STATEMENTS&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"&gt;DECEMBER 31, 2011 and 2010&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;General:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On July 20, 2001, Americomm Resources Corporation&#13;merged with its wholly-owned subsidiary, Empire Petroleum Corporation, and simultaneously changed the name of the corporation to&#13;Empire Petroleum Corporation (the &amp;#34;Company&amp;#34;). Both the merger and name change were effective as of August 15, 2001. Americomm&#13;Resources Corporation was originally incorporated in the State of Utah on the 22nd day of August 1983, as Chambers Energy Corporation.&#13;On the 7th day of March 1985, the state of incorporation was changed to Delaware by means of a merger with Americomm Corporation,&#13;a Delaware corporation formed for the purpose of effecting the said change. In July 1995, the Company changed its name to Americomm&#13;Resources Corporation.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;1. Continuing operations:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The ultimate recoverability of the Company's&#13;investment in its oil and gas interests is dependent upon the existence and discovery of economically recoverable oil and gas reserves,&#13;the ability of the Company to obtain necessary financing to further develop the interests, and upon the ability to attain future&#13;profitable production. The Company has been incurring significant losses in recent years.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Virtually all of the Company's assets are invested&#13;in the Gabbs Valley and South Okie Prospects, both of which are unproven, that is, they have not been evaluated as being capable&#13;of producing economical quantities of reserves. The Company acquired additional leasehold interests in and drilled a test well&#13;on its Gabbs Valley Prospect in 2006. Completion of the test well was suspended pending evaluation of the geologic information&#13;and the securing of additional capital to continue the evaluation and possibly to complete the well. The Company drilled a test&#13;well on the Prospect in 2010 which recovered oil, however the oil contained paraffin which prevented it from producing at economic&#13;rates. The Company continues to believe that the Prospect contains economical reserve quantities and is actively conducting additional&#13;studies and will be pursuing potential funding and/or partners to continue evaluation and exploration.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company plans to supplement current studies&#13;of the South Okie Prospect with a seismograph evaluation to verify the potential of the prospect. The Company has acquired 11 miles&#13;of seismic and studies of this data were completed in early January 2010 and an additional geological study was also completed&#13;in early January 2010.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The continuation of the Company is dependent&#13;upon the ability of the Company to attain future profitable operations. These financial statements have been prepared on the basis&#13;of United States generally accepted accounting principles applicable to a company with continuing operations, which assume that&#13;the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its obligations&#13;in the normal course of operations. Management believes the going concern assumption to be appropriate for these financial statements.&#13;If the going concern assumption were not appropriate for these financial statements, then adjustments might be necessary to the&#13;carrying value of assets and liabilities, reported expenses and the balance sheet classifications used.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;2. Significant accounting policies:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The preparation of financial statements in conformity&#13;with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the&#13;amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;(a) Capital assets:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company uses the successful efforts method&#13;of accounting for its oil and gas activities. Costs incurred are deferred until exploration and completion results are evaluated.&#13;At such time, costs of activities with economically recoverable reserves are capitalized as proven properties, and costs of unsuccessful&#13;or uneconomical activities are expensed.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Capitalized drilling costs are reviewed periodically&#13;for impairment. Costs related to impaired prospects or unsuccessful exploratory drilling are charged to expense. Management's assessment&#13;of the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such&#13;leaseholds impact the amount and timing of impairment provisions. 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Such financial instruments may become dilutive and would&#13;then need to be included in future calculations of Diluted EPS.&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;(c) Income taxes:&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;&#13;&#13;&lt;p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company accounts for income taxes in accordance&#13;with the asset and liability method of accounting for income taxes. 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</link:linkbase>
</XBRL>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-101.LAB
<SEQUENCE>5
<FILENAME>empr-20111231_lab.xml
<DESCRIPTION>XBRL LABEL FILE
<TEXT>
<XBRL>
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      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_AssetsCurrentAbstract" xlink:label="us-gaap_AssetsCurrentAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_AssetsCurrentAbstract" xlink:to="us-gaap_AssetsCurrentAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_AssetsCurrentAbstract_lbl" xml:lang="en-US">Current assets:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_CashAndCashEquivalentsAtCarryingValue" xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_CashAndCashEquivalentsAtCarryingValue" xlink:to="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_CashAndCashEquivalentsAtCarryingValue_lbl" xml:lang="en-US">Cash and cash equivalents</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_AccountsReceivableNetCurrent" xlink:label="us-gaap_AccountsReceivableNetCurrent" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_AccountsReceivableNetCurrent" xlink:to="us-gaap_AccountsReceivableNetCurrent_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_AccountsReceivableNetCurrent_lbl" xml:lang="en-US">Accounts receivable</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_PrepaidExpenseAndOtherAssetsCurrent" xlink:label="us-gaap_PrepaidExpenseAndOtherAssetsCurrent" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_PrepaidExpenseAndOtherAssetsCurrent" xlink:to="us-gaap_PrepaidExpenseAndOtherAssetsCurrent_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_PrepaidExpenseAndOtherAssetsCurrent_lbl" xml:lang="en-US">Prepaid expenses and other current assets</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_AssetsCurrent" xlink:label="us-gaap_AssetsCurrent" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_AssetsCurrent" xlink:to="us-gaap_AssetsCurrent_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_AssetsCurrent_lbl" xml:lang="en-US">Total current assets</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_PropertyPlantAndEquipmentNet" xlink:label="us-gaap_PropertyPlantAndEquipmentNet" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_PropertyPlantAndEquipmentNet" xlink:to="us-gaap_PropertyPlantAndEquipmentNet_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_PropertyPlantAndEquipmentNet_lbl" xml:lang="en-US">Property &amp; equipment less accumulated depreciation and depletion</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OtherAssets" xlink:label="us-gaap_OtherAssets" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OtherAssets" xlink:to="us-gaap_OtherAssets_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OtherAssets_lbl" xml:lang="en-US">Other assets</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_Assets" xlink:label="us-gaap_Assets" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_Assets" xlink:to="us-gaap_Assets_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_Assets_lbl" xml:lang="en-US">Total assets</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_LiabilitiesAndStockholdersEquityAbstract" xlink:label="us-gaap_LiabilitiesAndStockholdersEquityAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_LiabilitiesAndStockholdersEquityAbstract" xlink:to="us-gaap_LiabilitiesAndStockholdersEquityAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_LiabilitiesAndStockholdersEquityAbstract_lbl" xml:lang="en-US">LIABILITIES AND STOCKHOLDERS' EQUITY:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_LiabilitiesCurrentAbstract" xlink:label="us-gaap_LiabilitiesCurrentAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_LiabilitiesCurrentAbstract" xlink:to="us-gaap_LiabilitiesCurrentAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_LiabilitiesCurrentAbstract_lbl" xml:lang="en-US">Current liabilities:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent" xlink:label="us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent" xlink:to="us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent_lbl" xml:lang="en-US">Accounts payable and accrued liabilities</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent" xlink:label="us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent" xlink:to="us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent_lbl" xml:lang="en-US">Notes payable - related party</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_LiabilitiesCurrent" xlink:label="us-gaap_LiabilitiesCurrent" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_LiabilitiesCurrent" xlink:to="us-gaap_LiabilitiesCurrent_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_LiabilitiesCurrent_lbl" xml:lang="en-US">Total current liabilities</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StockholdersEquityAbstract" xlink:label="us-gaap_StockholdersEquityAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StockholdersEquityAbstract" xlink:to="us-gaap_StockholdersEquityAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StockholdersEquityAbstract_lbl" xml:lang="en-US">Stockholders' equity:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_CommonStockValueOutstanding" xlink:label="us-gaap_CommonStockValueOutstanding" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_CommonStockValueOutstanding" xlink:to="us-gaap_CommonStockValueOutstanding_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_CommonStockValueOutstanding_lbl" xml:lang="en-US">Common stock</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_AdditionalPaidInCapital" xlink:label="us-gaap_AdditionalPaidInCapital" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_AdditionalPaidInCapital" xlink:to="us-gaap_AdditionalPaidInCapital_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_AdditionalPaidInCapital_lbl" xml:lang="en-US">Additional paid in capital</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_RetainedEarningsAccumulatedDeficit" xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_RetainedEarningsAccumulatedDeficit" xlink:to="us-gaap_RetainedEarningsAccumulatedDeficit_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_RetainedEarningsAccumulatedDeficit_lbl" xml:lang="en-US">Accumulated deficit</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StockholdersEquity" xlink:label="us-gaap_StockholdersEquity" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StockholdersEquity" xlink:to="us-gaap_StockholdersEquity_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StockholdersEquity_lbl" xml:lang="en-US">Total stockholders' equity</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_LiabilitiesAndStockholdersEquity" xlink:label="us-gaap_LiabilitiesAndStockholdersEquity" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_LiabilitiesAndStockholdersEquity" xlink:to="us-gaap_LiabilitiesAndStockholdersEquity_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_LiabilitiesAndStockholdersEquity_lbl" xml:lang="en-US">Total liabilities and stockholders' equity</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncomeStatementAbstract" xlink:label="us-gaap_IncomeStatementAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncomeStatementAbstract" xlink:to="us-gaap_IncomeStatementAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_IncomeStatementAbstract_lbl" xml:lang="en-US">Income Statement [Abstract]</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_RevenueMineralSalesAbstract" xlink:label="us-gaap_RevenueMineralSalesAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_RevenueMineralSalesAbstract" xlink:to="us-gaap_RevenueMineralSalesAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_RevenueMineralSalesAbstract_lbl" xml:lang="en-US">Revenue:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OilAndGasSalesRevenue" xlink:label="us-gaap_OilAndGasSalesRevenue" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OilAndGasSalesRevenue" xlink:to="us-gaap_OilAndGasSalesRevenue_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OilAndGasSalesRevenue_lbl" xml:lang="en-US">Petroleum Sales</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_CostsAndExpensesAbstract" xlink:label="us-gaap_CostsAndExpensesAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_CostsAndExpensesAbstract" xlink:to="us-gaap_CostsAndExpensesAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_CostsAndExpensesAbstract_lbl" xml:lang="en-US">Costs and expenses:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_ExplorationAbandonmentAndImpairmentExpense" xlink:label="us-gaap_ExplorationAbandonmentAndImpairmentExpense" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_ExplorationAbandonmentAndImpairmentExpense" xlink:to="us-gaap_ExplorationAbandonmentAndImpairmentExpense_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_ExplorationAbandonmentAndImpairmentExpense_lbl" xml:lang="en-US">Well abandonment expense</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OilAndGasProductionExpense" xlink:label="us-gaap_OilAndGasProductionExpense" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OilAndGasProductionExpense" xlink:to="us-gaap_OilAndGasProductionExpense_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OilAndGasProductionExpense_lbl" xml:lang="en-US">Production &amp; operating</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_GeneralAndAdministrativeExpense" xlink:label="us-gaap_GeneralAndAdministrativeExpense" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_GeneralAndAdministrativeExpense" xlink:to="us-gaap_GeneralAndAdministrativeExpense_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_GeneralAndAdministrativeExpense_lbl" xml:lang="en-US">General &amp; administrative</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_CostsAndExpenses" xlink:label="us-gaap_CostsAndExpenses" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_CostsAndExpenses" xlink:to="us-gaap_CostsAndExpenses_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_CostsAndExpenses_lbl" xml:lang="en-US">Total costs and expenses</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OperatingIncomeLoss" xlink:label="us-gaap_OperatingIncomeLoss" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OperatingIncomeLoss" xlink:to="us-gaap_OperatingIncomeLoss_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OperatingIncomeLoss_lbl" xml:lang="en-US">Operating loss</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OtherIncomeAndExpensesAbstract" xlink:label="us-gaap_OtherIncomeAndExpensesAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OtherIncomeAndExpensesAbstract" xlink:to="us-gaap_OtherIncomeAndExpensesAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OtherIncomeAndExpensesAbstract_lbl" xml:lang="en-US">Other income and (expense):</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_InterestIncomeDepositsWithFinancialInstitutions" xlink:label="us-gaap_InterestIncomeDepositsWithFinancialInstitutions" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_InterestIncomeDepositsWithFinancialInstitutions" xlink:to="us-gaap_InterestIncomeDepositsWithFinancialInstitutions_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_InterestIncomeDepositsWithFinancialInstitutions_lbl" xml:lang="en-US">Interest income</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_InterestExpenseDebt" xlink:label="us-gaap_InterestExpenseDebt" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_InterestExpenseDebt" xlink:to="us-gaap_InterestExpenseDebt_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_InterestExpenseDebt_lbl" xml:lang="en-US">Interest expense</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_InterestIncomeExpenseNet" xlink:label="us-gaap_InterestIncomeExpenseNet" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_InterestIncomeExpenseNet" xlink:to="us-gaap_InterestIncomeExpenseNet_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_InterestIncomeExpenseNet_lbl" xml:lang="en-US">Total other income (expense)</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetIncomeLoss" xlink:label="us-gaap_NetIncomeLoss" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetIncomeLoss" xlink:to="us-gaap_NetIncomeLoss_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NetIncomeLoss_lbl" xml:lang="en-US">Net income (loss)</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_EarningsPerShareBasicAndDiluted" xlink:label="us-gaap_EarningsPerShareBasicAndDiluted" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_EarningsPerShareBasicAndDiluted" xlink:to="us-gaap_EarningsPerShareBasicAndDiluted_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_EarningsPerShareBasicAndDiluted_lbl" xml:lang="en-US">Net income (loss) per common share, basic and diluted</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding" xlink:label="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding" xlink:to="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding_lbl" xml:lang="en-US">Weighted average number of common shares outstanding</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StatementOfCashFlowsAbstract" xlink:label="us-gaap_StatementOfCashFlowsAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StatementOfCashFlowsAbstract" xlink:to="us-gaap_StatementOfCashFlowsAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StatementOfCashFlowsAbstract_lbl" xml:lang="en-US">Statement of Cash Flows [Abstract]</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OperatingCashFlowsDirectMethodAbstract" xlink:label="us-gaap_OperatingCashFlowsDirectMethodAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OperatingCashFlowsDirectMethodAbstract" xlink:to="us-gaap_OperatingCashFlowsDirectMethodAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OperatingCashFlowsDirectMethodAbstract_lbl" xml:lang="en-US">Cash flows from operating activities:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncomeLossFromContinuingOperations" xlink:label="us-gaap_IncomeLossFromContinuingOperations" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncomeLossFromContinuingOperations" xlink:to="us-gaap_IncomeLossFromContinuingOperations_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_IncomeLossFromContinuingOperations_lbl" xml:lang="en-US">Net loss</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract" xlink:label="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract" xlink:to="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_lbl" xml:lang="en-US">Adj to reconcile net loss to net cash used in operating activities:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncreaseDecreaseInAccruedSalaries" xlink:label="us-gaap_IncreaseDecreaseInAccruedSalaries" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncreaseDecreaseInAccruedSalaries" xlink:to="us-gaap_IncreaseDecreaseInAccruedSalaries_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_IncreaseDecreaseInAccruedSalaries_lbl" xml:lang="en-US">Value of services contributed by employee</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StockOptionPlanExpense" xlink:label="us-gaap_StockOptionPlanExpense" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StockOptionPlanExpense" xlink:to="us-gaap_StockOptionPlanExpense_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StockOptionPlanExpense_lbl" xml:lang="en-US">Stock incentive plan expense</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract" xlink:label="us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract" xlink:to="us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract_lbl" xml:lang="en-US">Change in operating assets and liabilities:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncreaseDecreaseInAccountsReceivable" xlink:label="us-gaap_IncreaseDecreaseInAccountsReceivable" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncreaseDecreaseInAccountsReceivable" xlink:to="us-gaap_IncreaseDecreaseInAccountsReceivable_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:label="us-gaap_IncreaseDecreaseInAccountsReceivable_lbl" xml:lang="en-US">Accounts receivable</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncreaseDecreaseInPrepaidExpense" xlink:label="us-gaap_IncreaseDecreaseInPrepaidExpense" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncreaseDecreaseInPrepaidExpense" xlink:to="us-gaap_IncreaseDecreaseInPrepaidExpense_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_IncreaseDecreaseInPrepaidExpense_lbl" xml:lang="en-US">Prepaid expenses</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" xlink:label="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities" xlink:to="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:label="us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities_lbl" xml:lang="en-US">Accounts payable and accrued liabilities</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetCashProvidedByUsedInOperatingActivities" xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivities" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetCashProvidedByUsedInOperatingActivities" xlink:to="us-gaap_NetCashProvidedByUsedInOperatingActivities_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NetCashProvidedByUsedInOperatingActivities_lbl" xml:lang="en-US">Net cash used in operating activities</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract" xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract" xlink:to="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract_lbl" xml:lang="en-US">Cash flow from investing activities:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets" xlink:label="us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets" xlink:to="us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets_lbl" xml:lang="en-US">Sale of working interest</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_PaymentsToAcquireAndDevelopRealEstate" xlink:label="us-gaap_PaymentsToAcquireAndDevelopRealEstate" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_PaymentsToAcquireAndDevelopRealEstate" xlink:to="us-gaap_PaymentsToAcquireAndDevelopRealEstate_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_PaymentsToAcquireAndDevelopRealEstate_lbl" xml:lang="en-US">Acquisition of lease acres</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_ExplorationExpense" xlink:label="us-gaap_ExplorationExpense" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_ExplorationExpense" xlink:to="us-gaap_ExplorationExpense_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_ExplorationExpense_lbl" xml:lang="en-US">Well equipment and drilling costs</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetCashProvidedByUsedInContinuingOperations" xlink:label="us-gaap_NetCashProvidedByUsedInContinuingOperations" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetCashProvidedByUsedInContinuingOperations" xlink:to="us-gaap_NetCashProvidedByUsedInContinuingOperations_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NetCashProvidedByUsedInContinuingOperations_lbl" xml:lang="en-US">Net cash provided by (used in) investing activities</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract" xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract" xlink:to="us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract_lbl" xml:lang="en-US">Cash flows from financing activities:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_PaymentsForProceedsFromInvestments" xlink:label="us-gaap_PaymentsForProceedsFromInvestments" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_PaymentsForProceedsFromInvestments" xlink:to="us-gaap_PaymentsForProceedsFromInvestments_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_PaymentsForProceedsFromInvestments_lbl" xml:lang="en-US">Proceeds from private equity placement</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_ProceedsFromNotesPayable" xlink:label="us-gaap_ProceedsFromNotesPayable" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_ProceedsFromNotesPayable" xlink:to="us-gaap_ProceedsFromNotesPayable_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_ProceedsFromNotesPayable_lbl" xml:lang="en-US">Proceeds from related party, note payable</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetCashProvidedByUsedInFinancingActivities" xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivities" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetCashProvidedByUsedInFinancingActivities" xlink:to="us-gaap_NetCashProvidedByUsedInFinancingActivities_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_NetCashProvidedByUsedInFinancingActivities_lbl" xml:lang="en-US">Net cas provided by Financing Activities</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease" xlink:label="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease" xlink:to="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease_lbl" xml:lang="en-US">Net increase (decrease) in cash</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_CashPeriodIncreaseDecrease" xlink:label="us-gaap_CashPeriodIncreaseDecrease" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_CashPeriodIncreaseDecrease" xlink:to="us-gaap_CashPeriodIncreaseDecrease_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_CashPeriodIncreaseDecrease_lbl" xml:lang="en-US">Cash - Beginning of period</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_ProfitLoss" xlink:label="us-gaap_ProfitLoss" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_ProfitLoss" xlink:to="us-gaap_ProfitLoss_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_ProfitLoss_lbl" xml:lang="en-US">Cash - End of period</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract" xlink:label="us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract" xlink:to="us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract_lbl" xml:lang="en-US">Supplemental Disclosure for Non Cash Items:</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StockholdersEquityNoteDisclosureTextBlock" xlink:label="us-gaap_StockholdersEquityNoteDisclosureTextBlock" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StockholdersEquityNoteDisclosureTextBlock" xlink:to="us-gaap_StockholdersEquityNoteDisclosureTextBlock_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StockholdersEquityNoteDisclosureTextBlock_lbl" xml:lang="en-US">Common Stock issued for accounts payable</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StatementTable" xlink:label="us-gaap_StatementTable" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StatementTable" xlink:to="us-gaap_StatementTable_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StatementTable_lbl" xml:lang="en-US">Statement [Table]</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_StatementLineItems" xlink:label="us-gaap_StatementLineItems" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_StatementLineItems" xlink:to="us-gaap_StatementLineItems_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_StatementLineItems_lbl" xml:lang="en-US">Statement [Line Items]</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic" xlink:label="us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic" xlink:to="us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/verboseLabel" xlink:label="us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic_lbl" xml:lang="en-US">Net loss</link:label>
      <link:loc xlink:type="locator" xlink:href="http://xbrl.fasb.org/us-gaap/2011/elts/us-gaap-2011-01-31.xsd#us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities" xlink:label="us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities" />
      <link:labelArc xlink:arcrole="http://www.xbrl.org/2003/arcrole/concept-label" xlink:from="us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities" xlink:to="us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities_lbl" xlink:type="arc" />
      <link:label xlink:type="resource" xlink:role="http://www.xbrl.org/2003/role/label" xlink:label="us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities_lbl" xml:lang="en-US">Accrued employee salaries</link:label>
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<DOCUMENT>
<TYPE>EX-101.PRE
<SEQUENCE>6
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>7
<FILENAME>exhibit10-14.htm
<DESCRIPTION>EXHIBIT 10.14 -PARTICIPATION AGREEMENT BETWEEN EMPIRE AND CORTEZ
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">EXHIBIT 10.14</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">May 8, 2006</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cortez Exploration, LLC</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. O. F. Duffield, Manager</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">16786 Kincheloe Rd.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Siloam Springs, AR 72761</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;RE:&#9;Participation Agreement,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Gabbs Valley Prospect,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Nye &amp; Mineral Counties,
Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dear Mr. Duffield:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This letter is to confirm
Empire&rsquo;s decision to commit to forty-five (45%) percent of the cost of a 5,000&rsquo; test well to be known as the PetroWorld
Cobble Cuesta 1-12-T12N-R34E, Nye County. In return for paying forty-five (45%) percent of the cost of this test well Cortez will
assign to Empire a thirty (30%) percent interest in the oil and gas leases listed on Schedule &ldquo;A&rdquo; attached to and made
a part of this letter.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Empire also agrees to pay
Cortez the Sum of Six Hundred and Seventy-Five Thousand ($675,000) dollars for its share of the lease costs. Such payment to be
made prior to the commencement of drilling operations or by August 1, 2006, whichever first occurs.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Empire agrees that all drilling
and production operations shall be carried out pursuant to the terms of the Cobble Cuesta (formerly Gabbs Valley Unit) Unit No.
N-78845X and the Operating Agreement attached as Schedule &ldquo;D&rdquo; in the Cortez-PetroWorld Letter Agreement dated April
15, 2005, attached hereto as Schedule &ldquo;B&rdquo;.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">After the signing of this
instrument and all obligations are met, the ownership of the Oil &amp; Gas Leases will be PetroWorld 30%; Empire 40%; Cortez 30%
subject to the A.M.I. and royalties set out in Schedule &ldquo;A&rdquo; of the agreement. Any lease rentals that might become due
prior to PetroWorld&rsquo;s and Empire&rsquo;s earning an interest shall be paid by PetroWorld 30%, Empire 40%, and Cortez 30%.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This agreement inures to
the heirs, administrators, successors, and beneficiaries.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If this letter meets with
your understanding of our agreement please sign and return one copy to the undersigned.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Yours very truly,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A. E. Whitehead</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">President</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Agreed to this <U> 11<SUP>TH</SUP> </U> day
of May, 2006</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cortez Exploration, LLC</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">By:</TD>
    <TD STYLE="width: 27%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">/s/ O. F. Duffield</TD>
    <TD STYLE="width: 68%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">O. F. Duffield, Manager</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-bottom: 6pt">&nbsp;</DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">SCHEDULE &quot;A&quot;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">OIL &amp; GAS LEASES</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">GABBS VALLEY PROSPECT</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="9" STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">NEVADA</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Lease</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Serial #</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Date</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Term</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Lessor</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-59901</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9/1/1995</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">James P. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F.Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,840.56</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60885</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9/1/1995</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">James P. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6,388.16</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60812</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1996</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">James P.Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10,205.16</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60815</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1996</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">James P. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">960.00</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60816</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1996</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">James P. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6,080.00</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60793</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1997</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">John L. Messenger</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,920.00</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60808</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1997</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">John L. Messenger</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,553.43</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60807</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1997</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">John L. Messenger</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,760.00</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60791</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9/1/1996</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">John L. Messenger</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3,200.00</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60806</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1997</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">John L. Messenger</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2,235.70</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N-60792</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6/1/1996</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">10 yr</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BLM</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">John L. Messenger</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">O. F. Duffield</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5,461.37</TD>
    <TD NOWRAP STYLE="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">44,604.38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-bottom: 6pt">&nbsp;</DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">ROCKY<FONT STYLE="letter-spacing: 1.45pt"> </FONT>MOUNTAIN
UNIT<FONT STYLE="letter-spacing: 1.3pt"> </FONT>OPERATING<FONT STYLE="letter-spacing: 0.4pt"> </FONT>AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">Form<FONT STYLE="letter-spacing: 1.3pt"> </FONT>2<FONT STYLE="letter-spacing: 0.35pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">February<FONT STYLE="letter-spacing: 1.4pt"> </FONT>1980<FONT STYLE="letter-spacing: 1.3pt">
</FONT>(Pages<FONT STYLE="letter-spacing: 1.3pt"> </FONT>2,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>3,<FONT STYLE="letter-spacing: 0.25pt">
</FONT>4,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>6,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>7,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>8,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>9,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>10,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>10A,<FONT STYLE="letter-spacing: 1pt"> </FONT>and<FONT STYLE="letter-spacing: 0.95pt"> </FONT>16<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Revised <FONT STYLE="letter-spacing: 0.15pt"> </FONT>1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.15pt 0 0; text-align: center">EXHIBIT &quot;B&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.65pt 0 0; text-align: center"><FONT STYLE="line-height: 178%"><B>UNIT
OPERATING AGREEMENT</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.65pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="line-height: 178%"><B>GABBS
VALLEY UNIT<FONT STYLE="letter-spacing: 0.95pt"> </FONT>AREA</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center"><FONT STYLE="line-height: 187%"><B>COUNTIES
OF<FONT STYLE="letter-spacing: 0.15pt"> </FONT>MINERAL AND<FONT STYLE="letter-spacing: 0.45pt"> </FONT>NYE</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="line-height: 187%"><B>STATE
OF<FONT STYLE="letter-spacing: 0.4pt"> </FONT>NEVADA</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">TABLE OF CONTENTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Preliminary <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Recitals</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 75%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE I-DEFINITIONS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -1pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Definitions</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 2-EXHIBITS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibits.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 3-INITIAL TEST WELL</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Location</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Costs of Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 4-SUBSEQUENT TEST WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Right to Drill</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 5-ESTABLISHMENT, REVISION, AND CONSOLIDATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">OF PARTICIPATING AREAS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Objections to Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Revised Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Rejection of Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Consolidation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 6-APPORTIONMENT OF COSTS AND OWNERSHIP AND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">DISPOSITION OF PRODUCTION AND PROPERTY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Apportionment and Ownership Within Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Costs</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Production</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Property</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Ownership and Costs Outside Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; When All Drilling Block Parties Participate</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; When Less Than All Drilling Block Parties Participate</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Cost Liability of Subsequently Created Interests</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Taking in Kind</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Failure to Take in Kind</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Surplus Materials and Equipment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 7-PLANS OF DEVELOPMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Submittal of Plans</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Objections to Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Revised Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Rejection of Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Notice of Approval or Disapproval</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Supplemental Plans</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Cessation of Opers Under the Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">i</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 8-DEVELOPMENT WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Purpose of Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Approval Required</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Notice of Proposed Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Response to Notice</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Notice of Election to Proceed</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Subsequent Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">F.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">G.&nbsp; Rights and Obligations of Drilling Party and Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Attempted Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Notice by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Right to Attempt Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Time and Manner of Initiating Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">F.&nbsp; Rights and Obligations of Completing Party and Non-Completing Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">G.&nbsp; Notice Prior to Plugging</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 9-EXPLORATORY WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Purpose and Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Notice of Proposed Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Basis of Participation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Exclusion of Land From Proposed Drilling Block</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Preliminary Notice to Join in Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Notice of Election to Proceed</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">F.&nbsp; Subsequent Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">G.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">H.&nbsp; Rights and Obligations of Drilling Party and Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Attempted Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Notice by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Right to Attempt Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Time and Manner of initiating Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">F.&nbsp; Rights and Obligations of Completing Party and Non-Completing Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">G.&nbsp; Notice Prior to Plugging</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 10-REQUIRED WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Definition</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Election to Drill</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Alternatives to Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Compensatory Royalties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Contraction</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Termination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Required Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Development Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Exploratory Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 11-DEEPENING, PLUGGING BACK,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">AND ABANDONMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Attempted Deepening or Plugging Back</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Notice by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Right to Initiate Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Right to Participate</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Time and Manner of Initiating Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">F.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">G.&nbsp; Rights and Obligations of Participating party and Non-Participating Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Deepening or Plugging Back to Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Conflicts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Attempted Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Abandonment of Producing Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Consent Required</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Abandonment Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ii</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Rights and Obligations of Non-Abandoning Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Option to Repurchase Materials</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Deepening or Plugging Back Abandoned Producing Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 12-RIGHTS AND OBLIGATIONS OF DRILLING</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">PARTY AND NON-DRILLING PARTY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Use of Terms</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Scope of Article</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Relinquishment of Interest by Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Reversion of Relinquished Interest</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Effect of Reversion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Rights and Obligations of Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Accounting Due Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Stand-By Rig Time</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12.9</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Subsequently Created Lease Burdens</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10A</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 13-ADJUSTMENT ON ESTABLISHMENT OR CHANGE OF</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">PARTICIPATING AREA</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">When Adjustment Made</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Definitions</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; &ldquo;Usable well&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; &ldquo;Intangible value&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; &ldquo;Tangible property&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; &ldquo;Value&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Method of Adjustment on Establishment or Enlargement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Method of Adjustment on Contraction</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Ownership of Wells and Tangible Property</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Relinquished Interest of Non-Drilling Parties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 14-SUPERVISION OF OERATIONS BY PARTIES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Right of Supervision</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Voting Control</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Meetings</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Action Without Meeting</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Representatives</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Audits</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Extraneous Projects</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 15-UNIT OPERATOR&rsquo;S POWERS AND RIGHTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">In General</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Employees</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Non-Liability</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Force Majeure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Lien</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Advances</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Use of Unit Operator&rsquo;s Drilling Equipment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Rights as Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 16-UNIT OPERATOR&rsquo;S DUTIES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Specific Duties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Drilling of Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Compliance with Laws and Agreements</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Consultation with Parties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Payment of Costs</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Records</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">F.&nbsp; Information</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">G.&nbsp; Access to Unit Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Insurance</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Unit Operator&rsquo;s</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Contractors&rsquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Automotive Equipment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Non-Discrimination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Drilling Contracts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Uninsured Losses</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 17-LIMITATIONS ON UNIT OPERATOR</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Specific Limitations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">iii</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Change in Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Limit on Expenditures</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Partial Relinquishment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Settlement of Claims</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">E.&nbsp; Determinations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 18-TITLES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Representation of Ownership</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Title Papers to be Furnished</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp; Lease Papers</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp; Title Papers for Initial Test Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp; Title Papers for Subsequent Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp; Title Papers on Establishment or Enlargement of a Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Title Examination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Option for Additional Title Examination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Approval of Titles Prior to Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Approval of Titles Prior to Inclusion of Land in a Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Failure of Title to Committed Working Interest</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Failure of Title to Committed Working Interest After Approval</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.9</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Joinder by True Owner</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18.10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Title Challenge</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 19-UNLEASED INTERESTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Treated as Leased</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Execution of Lease</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 20-RENTALS AND LEASE BURDENS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Rentals</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Lease Burdens</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Loss of Committed Working Interest</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 21-TAXES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Payment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Apportionment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Transfer of Interests</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Notices and Returns</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 22-WITHDRAWAL OF TRACTS AND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">UNCOMMITTED INTERESTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">22.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Right of Withdrawal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">22.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Non-Withdrawal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 23-COMPENSATORY ROYALTIES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">23.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Notice</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">23.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Demand for Failure to Drill a Development Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">23.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Demand for Failure to Drill a Well Other Than a Development Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 24-SEPARATE MEASUREMENT AND SALVAGE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">24.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Separate Measurement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">24.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Salvaged Materials</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 25-ENHANCED RECOVERY AND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">PRESSURE MAINTENANCE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">25.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Consent Required</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">25.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Above-Ground Facilities</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 26-TRANSFERS OF INTEREST</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">26.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Sale by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">26.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Assumption of Obligations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">26.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Effective Date</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 27-RELEASE FROM OBLIGATIONS AND SURRENDER</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">27.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Surrender or Release Within Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">27.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Procedure on Surrender or Release Outside Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">27.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Accrued Obligations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">iv</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 28-LIABILITY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">28.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Liability</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">28.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">No Partnership Created</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">28.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 29-NOTICES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">29.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Giving and Receipt</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">29.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Addresses</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 30-EXECUTION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">30.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Counterparts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">30.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Ratification</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">30.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Effect of Signature</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 31-SUCCESSORS AND ASSIGNS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">31.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Covenants</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 32-HEADINGS FOR CONVENIENCE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">32.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Headings</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 33-RIGHT OF APPEAL</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">33.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Not Waived</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 34-SUBSEQUENT JOINDER</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">34.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Prior to the Commencement of Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">34.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">After Commencement of Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 35-CARRIED INTERESTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">35.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Treatment of</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 36-EFFECTIVE DATE AND TERM</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">36.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Effective Date and Term</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">36.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Effective Termination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">ARTICLE 37-OTHER PROVISIONS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">EXHIBITS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Accounting Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Initial Test Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Insurance</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Non-Discrimination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Oil and Gas Lease</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">NOTE:&nbsp; Attention is called to pages 1, 6, 10, 11, 13, 14, 15, 16, and 19, which contain blanks to be filled in.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">v</TD></TR>
</TABLE>
<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-bottom: 6pt">&nbsp;</DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0">ROCKY<FONT STYLE="letter-spacing: 1.45pt"> </FONT>MOUNTAIN
UNIT<FONT STYLE="letter-spacing: 1.4pt"> </FONT>OPERATING<FONT STYLE="letter-spacing: 0.3pt"> </FONT>AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0">Form<FONT STYLE="letter-spacing: 1.3pt"> </FONT>2<FONT STYLE="letter-spacing: 0.4pt">
</FONT>(Divided<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0">February 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>UNIT<FONT STYLE="letter-spacing: 0.95pt">
</FONT>OPERATING AGREEMENT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>GABBS VALLEY
UNIT<FONT STYLE="letter-spacing: 0.95pt"> </FONT>AREA</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">THIS AGREEMENT
made as<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of the <U> 5<SUP>th</SUP> </U> day of <U> August </U>, 2010, by and among the
parties who by and among the parties who execute or ratify this Agreement or a counterpart hereof,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>WITNESSETH:</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">WHEREAS, the Parties
have entered into that certain UNIT AGREEMENT FOR THE DEVELOPMENT AND <FONT STYLE="letter-spacing: 0.45pt"> </FONT>OPER<FONT STYLE="letter-spacing: 0.15pt">A</FONT>TION
OF THE GABBS VALLEY UNIT AREA, Counties of <U> Mineral and Nye </U> State of <U> Nevada </U>, dated as of the <U> 5<SUP>th</SUP>
</U> day of <U> </U>, 2010, and hereinafter referred to as the &ldquo;Unit Agreement&rdquo;, covering the lands described in EXHIBIT
B thereto attached, which lands are referred to in the Unit Agreement and in this Agreement as the &ldquo;Unit Area&rdquo;; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">WHEREAS,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Parties enter into this Agreement<FONT STYLE="letter-spacing: 0.7pt"> </FONT>pursuant to Section<FONT STYLE="letter-spacing: 0.45pt">
</FONT>7<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Unit<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Agreement,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">NOW, THEREFORE,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>in consideration<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the<FONT STYLE="letter-spacing: 0.7pt">
</FONT>covenants herein<FONT STYLE="letter-spacing: 1.4pt"> </FONT>contained,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>it is
agreed as<FONT STYLE="letter-spacing: 0.7pt"> </FONT>follows:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>ARTICLE<FONT STYLE="letter-spacing: 0.25pt">
</FONT>1</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>DEFINITIONS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">1.1 Definitions.
The definitions contained <FONT STYLE="letter-spacing: 0.35pt"> </FONT>in the Unit Agreement are adopted for all purposes of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>this Agreement. In<FONT STYLE="letter-spacing: 1pt"> </FONT>addition,<FONT STYLE="letter-spacing: 1pt"> </FONT>each term
listed below shall have the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>meaning stated therefor, whenever used in this Agreement:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Unit Operator&quot;
means <U> O. F. Duffield </U> and <FONT STYLE="letter-spacing: 0.35pt"> </FONT>its successors,<FONT STYLE="letter-spacing: 0.7pt">
</FONT>as the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Unit Operator designated<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in
accordance<FONT STYLE="letter-spacing: 1.3pt"> </FONT>with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Unit <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Agreement, acting in that <FONT STYLE="letter-spacing: 0.3pt"> </FONT>capacity
and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>not as an owner of a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working
Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Party&quot;
means<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a party to this<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Agreement, including
the Party acting as<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Operator when acting
as<FONT STYLE="letter-spacing: 1pt"> </FONT>an owner of a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Working Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Drilling
Party&quot;, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>&quot;Completing <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Party&quot;,
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>and &quot;Participating Party&quot; <FONT STYLE="letter-spacing: 0.7pt"> </FONT>all
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>mean <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party or <FONT STYLE="letter-spacing: 1.4pt"> </FONT>Parties obligated <FONT STYLE="letter-spacing: 0.6pt"> </FONT>to bear
Costs incurred <FONT STYLE="letter-spacing: 0.7pt"> </FONT>in the Drilling, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Completing,<FONT STYLE="letter-spacing: 0.6pt">
</FONT>or Deepening<FONT STYLE="letter-spacing: 0.25pt"> </FONT>or Plugging Back, respectively,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>of a well<FONT STYLE="letter-spacing: 1.3pt"> </FONT>at<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the commencement<FONT STYLE="letter-spacing: 0.4pt">
</FONT>of such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Non-Drilling<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party&quot;, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>&quot;Non-Completing<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Party&quot;,
and<FONT STYLE="letter-spacing: 1pt"> </FONT>&quot;Non-Participating<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party&quot; <FONT STYLE="letter-spacing: 0.15pt">
</FONT>all mean the Party or Parties who had the optional <FONT STYLE="letter-spacing: 0.7pt"> </FONT>right to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>participate in the Drilling, Completing, or Deepening or Plugging <FONT STYLE="letter-spacing: 1pt"> </FONT>Back, respectively,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>a well and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>who elected <FONT STYLE="letter-spacing: 0.4pt">
</FONT>not to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate therein.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Committed
Working Interest&quot; means a working interest which <FONT STYLE="letter-spacing: 1.45pt"> </FONT>is shown on Exhibit B <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the Unit Agreement as owned <FONT STYLE="letter-spacing: 0.45pt"> </FONT>by
a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and<FONT STYLE="letter-spacing: 1.4pt">
</FONT>which <FONT STYLE="letter-spacing: 0.4pt"> </FONT>is committed<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Unit Agreement. Whenever reference is<FONT STYLE="letter-spacing: 0.95pt"> </FONT>made to a <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Party <FONT STYLE="letter-spacing: 0.55pt"> </FONT>&quot;in&quot; or <FONT STYLE="letter-spacing: 0.6pt"> </FONT>&quot;within&quot;
the Unit Area, a <FONT STYLE="letter-spacing: 0.35pt"> </FONT>participating area, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>or
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>other <FONT STYLE="letter-spacing: 1.45pt"> </FONT>area designated <FONT STYLE="letter-spacing: 0.15pt">
</FONT>pursuant to <FONT STYLE="letter-spacing: 0.45pt"> </FONT>this Agreement, such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>reference
shall<FONT STYLE="letter-spacing: 1.45pt"> </FONT>mean<FONT STYLE="letter-spacing: 1.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Party owning <FONT STYLE="letter-spacing: 0.3pt"> </FONT>a<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Working Interest <FONT STYLE="letter-spacing: 0.25pt"> </FONT>in<FONT STYLE="letter-spacing: 0.95pt"> </FONT>lands<FONT STYLE="letter-spacing: 1.4pt">
</FONT>within such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Acreage Basis&quot;,
when used<FONT STYLE="letter-spacing: 0.95pt"> </FONT>to describe the<FONT STYLE="letter-spacing: 0.55pt"> </FONT>basis of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>participation by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Parties within the Unit Area,<FONT STYLE="letter-spacing: 0.95pt">
</FONT>a participating area. or other area designated<FONT STYLE="letter-spacing: 0.7pt"> </FONT>pursuant to this Agreement in
voting, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Costs, or Production,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>means participation
by each such Party in the proportion that<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>acreage
of its Committed Working <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Interests <FONT STYLE="letter-spacing: 0.35pt"> </FONT>in
such area<FONT STYLE="letter-spacing: 1.4pt"> </FONT>bears<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to the total<FONT STYLE="letter-spacing: 1.3pt">
</FONT>acreage <FONT STYLE="letter-spacing: 0.45pt"> </FONT>of the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Working Interests of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>all such Parties <FONT STYLE="letter-spacing: 0.25pt">
</FONT>therein. <FONT STYLE="letter-spacing: 0.45pt"> </FONT>For the<FONT STYLE="letter-spacing: 1pt"> </FONT>purposes of this
definition, <FONT STYLE="letter-spacing: 0.55pt"> </FONT>(a) the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>acreage <FONT STYLE="letter-spacing: 0.45pt">
</FONT>of the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Interest<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in a<FONT STYLE="letter-spacing: 0.45pt"> </FONT>tract<FONT STYLE="letter-spacing: 1.3pt">
</FONT>within <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Area shall be the acreage of such tract as set forth in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Exhibit <FONT STYLE="letter-spacing: 0.3pt">
</FONT>B<FONT STYLE="letter-spacing: 0.55pt"> </FONT>to the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Agreement, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>and (b)<FONT STYLE="letter-spacing: 0.7pt"> </FONT>if<FONT STYLE="letter-spacing: 0.55pt">
</FONT>there<FONT STYLE="letter-spacing: 1.3pt"> </FONT>are two<FONT STYLE="letter-spacing: 0.95pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>more<FONT STYLE="letter-spacing: 1.3pt"> </FONT>undivided Committed Working Interests <FONT STYLE="letter-spacing: 0.6pt">
</FONT>in<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a tract, there shall be apportioned to each such <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Committed Working <FONT STYLE="letter-spacing: 0.95pt"> </FONT>Interest that proportion <FONT STYLE="letter-spacing: 0.45pt">
</FONT>of the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>acreage <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of the tract that
such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Committed Working <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Interest <FONT STYLE="letter-spacing: 0.25pt">
</FONT>bears to the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>entire Committed Working Interest<FONT STYLE="letter-spacing: 1.45pt">
</FONT>in the tract.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Production&quot;
means all <FONT STYLE="letter-spacing: 0.45pt"> </FONT>unitized substances produced and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>saved
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>from the Unit <FONT STYLE="letter-spacing: 0.95pt"> </FONT>Area <FONT STYLE="letter-spacing: 0.55pt">
</FONT>except so <FONT STYLE="letter-spacing: 0.45pt"> </FONT>much thereof as is used<FONT STYLE="letter-spacing: 1pt"> </FONT>in
the conduct of operations<FONT STYLE="letter-spacing: 0.35pt"> </FONT>under the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Agreement and this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Costs&quot;
means all costs and expenses <FONT STYLE="letter-spacing: 0.6pt"> </FONT>incurred in <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the
development <FONT STYLE="letter-spacing: 0.55pt"> </FONT>and operation <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of <FONT STYLE="letter-spacing: 0.7pt">
</FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>Unit Area pursuant to this<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Agreement
or<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Unit Agreement and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>all other <FONT STYLE="letter-spacing: 0.15pt"> </FONT>expenses <FONT STYLE="letter-spacing: 1.45pt"> </FONT>that<FONT STYLE="letter-spacing: 1.45pt">
</FONT>are herein <FONT STYLE="letter-spacing: 0.4pt"> </FONT>made chargeable as Costs, determined <FONT STYLE="letter-spacing: 0.35pt">
</FONT>in accordance with the Accounting Procedure attached hereto as <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Exhibit <FONT STYLE="letter-spacing: 1.3pt">
</FONT>1, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>which shall govern in all matters <FONT STYLE="letter-spacing: 0.6pt"> </FONT>covered
thereby, except that in the event <FONT STYLE="letter-spacing: 0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 1.45pt"> </FONT>an
inconsistency between <FONT STYLE="letter-spacing: 1pt"> </FONT>said Accounting Procedure and<FONT STYLE="letter-spacing: 1.4pt">
</FONT>this Agreement,<FONT STYLE="letter-spacing: 0.25pt"> </FONT>this Agreement<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall
control.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Lease Burdens&quot;
means the royalty <FONT STYLE="letter-spacing: 0.3pt"> </FONT>reserved <FONT STYLE="letter-spacing: 0.4pt"> </FONT>to the lessor
in an oil<FONT STYLE="letter-spacing: 1pt"> </FONT>and gas lease, an overriding royalty, <FONT STYLE="letter-spacing: 0.25pt">
</FONT>a production payment, and any <FONT STYLE="letter-spacing: 0.4pt"> </FONT>similar <FONT STYLE="letter-spacing: 1.4pt"> </FONT>burden,
but does not <FONT STYLE="letter-spacing: 0.4pt"> </FONT>include <FONT STYLE="letter-spacing: 1.4pt"> </FONT>a carried working
interest, <FONT STYLE="letter-spacing: 1.3pt"> </FONT>a net <FONT STYLE="letter-spacing: 0.35pt"> </FONT>profits interest, or any
other interest <FONT STYLE="letter-spacing: 0.15pt"> </FONT>which is<FONT STYLE="letter-spacing: 0.55pt"> </FONT>payable out of
profits.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Drill&quot;<FONT STYLE="letter-spacing: 0.05pt">
</FONT>means to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>perform <FONT STYLE="letter-spacing: 0.25pt"> </FONT>all operations
reasonably<FONT STYLE="letter-spacing: 0.35pt"> </FONT>necessary and incident <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to the<FONT STYLE="letter-spacing: 1pt">
</FONT>drilling <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of a well<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to its projected
depth, including preparation of roads <FONT STYLE="letter-spacing: 0.35pt"> </FONT>and <FONT STYLE="letter-spacing: 0.35pt"> </FONT>drill
site, testing, and <FONT STYLE="letter-spacing: 0.4pt"> </FONT>logging, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>but excluding
Completion <FONT STYLE="letter-spacing: 0.55pt"> </FONT>operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Complete&quot;
means <FONT STYLE="letter-spacing: 0.7pt"> </FONT>to perform <FONT STYLE="letter-spacing: 1pt"> </FONT>all operations reasonably
necessary and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>incident to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>completion
of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a well, commencing <FONT STYLE="letter-spacing: 0.6pt"> </FONT>with <FONT STYLE="letter-spacing: 0.15pt">
</FONT>the running <FONT STYLE="letter-spacing: 0.95pt"> </FONT>and setting of the production pipe <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>if <FONT STYLE="letter-spacing: 0.95pt"> </FONT>productive <FONT STYLE="letter-spacing: 1.4pt">
</FONT>of unitized substances, equipping through the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>wellhead <FONT STYLE="letter-spacing: 0.6pt">
</FONT>connections,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>or<FONT STYLE="letter-spacing: 0.55pt"> </FONT>plugging and abandoning,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>if<FONT STYLE="letter-spacing: 0.25pt"> </FONT>dry.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Equip&quot;
means to perform all operations reasonably<FONT STYLE="letter-spacing: 0.6pt"> </FONT>necessary<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and incident to the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>equipping of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>a
well for production<FONT STYLE="letter-spacing: 0.6pt"> </FONT>beyond the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>wellhead
connections.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center">1</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 1.3pt">
</FONT>2 (Divided<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify">February, 1980<FONT STYLE="letter-spacing: 0.35pt">
</FONT>(Page 2<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Deepen&quot;
or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>&quot;Plug Back&quot; means<FONT STYLE="letter-spacing: 0.45pt"> </FONT>to perform
all operations<FONT STYLE="letter-spacing: 0.3pt"> </FONT>reasonably<FONT STYLE="letter-spacing: 0.6pt"> </FONT>necessary<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and incident to Drilling<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a well below<FONT STYLE="letter-spacing: 0.35pt"> </FONT>its<FONT STYLE="letter-spacing: 1.3pt">
</FONT>original<FONT STYLE="letter-spacing: 0.55pt"> </FONT>projected depth or plugging<FONT STYLE="letter-spacing: 0.35pt"> </FONT>back
a well to a depth above its original projected depth, <FONT STYLE="letter-spacing: 0.95pt"> </FONT>testing,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>logging, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>but <FONT STYLE="letter-spacing: 0.15pt">
</FONT>excluding Completing<FONT STYLE="letter-spacing: 0.45pt"> </FONT>and Equipping<FONT STYLE="letter-spacing: 0.25pt"> </FONT>operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Initial Test
Well&quot;<FONT STYLE="letter-spacing: 0.95pt"> </FONT>means the<FONT STYLE="letter-spacing: 1pt"> </FONT>test well<FONT STYLE="letter-spacing: 0.25pt">
</FONT>or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>wells<FONT STYLE="letter-spacing: 0.95pt"> </FONT>provided<FONT STYLE="letter-spacing: 1.3pt">
</FONT>for<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in Section 9 of the Unit Agreement and in<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Exhibit 2<FONT STYLE="letter-spacing: 0.55pt"> </FONT>attached hereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Subsequent<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Test Well&quot;<FONT STYLE="letter-spacing: 0.95pt"> </FONT>means <FONT STYLE="letter-spacing: 0.35pt"> </FONT>a test well
Drilled <FONT STYLE="letter-spacing: 0.7pt"> </FONT>after the Drilling of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Initial<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Test Well<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and before discovery
of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>unitized <FONT STYLE="letter-spacing: 0.55pt"> </FONT>substances<FONT STYLE="letter-spacing: 0.3pt">
</FONT>in <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Paying<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Quantities in the <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Unit Area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Development<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Well&quot;<FONT STYLE="letter-spacing: 0.7pt"> </FONT>means a well Drilled within<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a<FONT STYLE="letter-spacing: 0.95pt">
</FONT>participating area<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and projected to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the
pool or zone for which the participating<FONT STYLE="letter-spacing: 0.45pt"> </FONT>area was establishe<FONT STYLE="letter-spacing: 0.4pt">d</FONT>.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&ldquo;Exploratory
Well&quot; means a <FONT STYLE="letter-spacing: 0.25pt"> </FONT>well (other than a Development Well) Drilled after discovery <FONT STYLE="letter-spacing: 1.4pt">
</FONT>of unitized substances<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in Paying Quantities in the Unit <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Approval
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Parties&quot; or &quot;Direction<FONT STYLE="letter-spacing: 1.3pt">
</FONT>of the Parties&quot;<FONT STYLE="letter-spacing: 0.25pt"> </FONT>means an <FONT STYLE="letter-spacing: 0.35pt"> </FONT>approval,
authorization, or direction which <FONT STYLE="letter-spacing: 0.45pt"> </FONT>receives <FONT STYLE="letter-spacing: 0.95pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>affirmative vote of the Parties entitled to <FONT STYLE="letter-spacing: 0.3pt"> </FONT>vote
on <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>giving of such Approval <FONT STYLE="letter-spacing: 0.45pt">
</FONT>or<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Direction, as specified in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Section
14.2.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Salvage <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Value&quot; of a<FONT STYLE="letter-spacing: 0.35pt"> </FONT>well<FONT STYLE="letter-spacing: 0.05pt"> </FONT>means<FONT STYLE="letter-spacing: 1.45pt">
</FONT>the value of the materials and<FONT STYLE="letter-spacing: 0.6pt"> </FONT>equipment in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>appurtenant to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the well, determined<FONT STYLE="letter-spacing: 0.95pt">
</FONT>in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>accordance with Exhibit<FONT STYLE="letter-spacing: 0.4pt"> </FONT>1,<FONT STYLE="letter-spacing: 1.3pt">
</FONT>less the reasonably<FONT STYLE="letter-spacing: 0.35pt"> </FONT>estimated Costs of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>salvaging
the same <FONT STYLE="letter-spacing: 0.7pt"> </FONT>and <FONT STYLE="letter-spacing: 0.45pt"> </FONT>plugging <FONT STYLE="letter-spacing: 0.7pt">
</FONT>and abandoning<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Appropriate
Agency&quot; means<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>agency designated in
the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>applicable Federal<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Regulations,<FONT STYLE="letter-spacing: 0.6pt">
</FONT>including any<FONT STYLE="letter-spacing: 0.4pt"> </FONT>person acting under<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the
authority thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Paying Quantities&quot;
means<FONT STYLE="letter-spacing: 0.35pt"> </FONT>paying quantities<FONT STYLE="letter-spacing: 0.35pt"> </FONT>as defined in Section
9<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Other Definitions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 2</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EXHIBITS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">2.1 Exhibits.<FONT STYLE="letter-spacing: 0.05pt">
</FONT>The following Exhibits are incorporated herein by reference:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 1.<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Accounting Procedure.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit<FONT STYLE="letter-spacing: 0.45pt">
</FONT>2.<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Initial Test Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 3.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Insurance.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit<FONT STYLE="letter-spacing: 0.7pt">
</FONT>4.<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Non-Discrimination.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit<FONT STYLE="letter-spacing: 0.45pt">
</FONT>5. Oil and <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Gas<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Lease.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">In<FONT STYLE="letter-spacing: 1pt">
</FONT>the<FONT STYLE="letter-spacing: 0.55pt"> </FONT>event of a<FONT STYLE="letter-spacing: 0.35pt"> </FONT>conflict or inconsistency
between <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>provisions of an Exhibit and<FONT STYLE="letter-spacing: 1.3pt">
</FONT>the provisions of this Agreement,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>provisions
of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement shall control.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 1pt">
</FONT>3</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>INITIAL TEST WELL</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">3.1 Location. Unit
Operator shall <FONT STYLE="letter-spacing: 0.4pt"> b</FONT>egin to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Drill the Initial
Test Well<FONT STYLE="letter-spacing: 0.4pt"> </FONT>within <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the time required by Section
9 of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Agreement, or<FONT STYLE="letter-spacing: 1.3pt"> </FONT>any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>extension thereof,<FONT STYLE="letter-spacing: 0.6pt">
</FONT>at the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>location <FONT STYLE="letter-spacing: 0.25pt"> </FONT>specified in Exhibit
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>2.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">3.2 Costs of<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Drilling. Subject to the investment<FONT STYLE="letter-spacing: 0.6pt"> </FONT>adjustment provisions <FONT STYLE="letter-spacing: 0.25pt">
</FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Article 13,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the Costs of Drilling<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Initial Test Well shall be shared by the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Parties in the manner and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in the proportions specified in Exhibit<FONT STYLE="letter-spacing: 0.7pt">
</FONT>2.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 4</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUBSEQUENT TEST<FONT STYLE="letter-spacing: 0.45pt">
</FONT>WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">4.1 Right <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to Drill. The Drilling of any Subsequent Test Well shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be <FONT STYLE="letter-spacing: 0.05pt">
</FONT>upon <FONT STYLE="letter-spacing: 0.25pt"> </FONT>such terms and conditions as may be agreed to by the Parties; provided,
however, that in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the absence of agreement,<FONT STYLE="letter-spacing: 0.45pt"> </FONT>such
well<FONT STYLE="letter-spacing: 1.4pt"> </FONT>may be<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Drilled <FONT STYLE="letter-spacing: 1pt">
</FONT>under the provisions <FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Article
9.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 0.6pt">
</FONT>5</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ESTABLISHMENT,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>REVISION, AND<FONT STYLE="letter-spacing: 0.6pt"> </FONT>CONSOLIDATION OF PARTICIPATING AREAS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.1 Proposal. Unit
Operator <FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall <FONT STYLE="letter-spacing: 1.3pt"> </FONT>initiate each <FONT STYLE="letter-spacing: 0.55pt">
</FONT>proposal for the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>establishment or revision of a participating area <FONT STYLE="letter-spacing: 0.45pt">
</FONT>by submitting the proposal in<FONT STYLE="letter-spacing: 1pt"> </FONT>writing to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>each
Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>at least twenty (20) days before filing the<FONT STYLE="letter-spacing: 0.6pt">
</FONT>same with<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the Appropriate <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Agency.<FONT STYLE="letter-spacing: 0.3pt">
</FONT>The<FONT STYLE="letter-spacing: 0.6pt"> </FONT>date of proposed filing<FONT STYLE="letter-spacing: 1.4pt"> </FONT>must be
shown<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the proposal. If,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>within <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the 20-day period<FONT STYLE="letter-spacing: 0.95pt"> </FONT>above<FONT STYLE="letter-spacing: 0.4pt">
</FONT>provided,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>proposal receives the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Approval<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties within <FONT STYLE="letter-spacing: 0.35pt">
</FONT>the proposed<FONT STYLE="letter-spacing: 0.6pt"> </FONT>participating area or<FONT STYLE="letter-spacing: 0.35pt"> </FONT>no
written objections<FONT STYLE="letter-spacing: 1.45pt"> </FONT>are received, then<FONT STYLE="letter-spacing: 1.45pt"> </FONT>such
proposal<FONT STYLE="letter-spacing: 0.95pt"> </FONT>shall be filed<FONT STYLE="letter-spacing: 0.45pt"> </FONT>on the date <FONT STYLE="letter-spacing: 0.3pt">
</FONT>specified.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.2 Objections<FONT STYLE="letter-spacing: 0.6pt">
</FONT>to Proposal.<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Prior to the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>proposed
filing date any<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Party may submit to all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>other
Parties<FONT STYLE="letter-spacing: 0.6pt"> </FONT>written<FONT STYLE="letter-spacing: 0.55pt"> </FONT>objections to<FONT STYLE="letter-spacing: 1pt">
</FONT>such proposal. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>If, despite<FONT STYLE="letter-spacing: 0.7pt"> </FONT>such
objections, the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>proposal <FONT STYLE="letter-spacing: 0.25pt"> </FONT>receives <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Approval<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Parties within the proposed participating area, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>then the Party<FONT STYLE="letter-spacing: 0.15pt">
</FONT>making the<FONT STYLE="letter-spacing: 1pt"> </FONT>objections may renew <FONT STYLE="letter-spacing: 0.7pt"> </FONT>the
same <FONT STYLE="letter-spacing: 0.55pt"> </FONT>before<FONT STYLE="letter-spacing: 1pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Appropriate<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Agency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.3 Revised Proposal.
If<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>proposal does not receive the Approval
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of the Parties within the proposed participating area, <FONT STYLE="letter-spacing: 0.25pt">
</FONT>and Unit Operator receives written objections<FONT STYLE="letter-spacing: 1pt"> </FONT>thereto, then <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Unit Operator shall <FONT STYLE="letter-spacing: 1.3pt"> </FONT>submit to the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.7pt">
</FONT>a revised <FONT STYLE="letter-spacing: 0.55pt"> </FONT>proposal, <FONT STYLE="letter-spacing: 1pt"> </FONT>taking into <FONT STYLE="letter-spacing: 0.7pt">
</FONT>account the objections made <FONT STYLE="letter-spacing: 0.6pt"> </FONT>to the first proposal. If no proposal receives the<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Approval<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties within sixty
(60)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">2</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 20.5pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING
AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 20.5pt 0 0; text-align: justify">Form 2<FONT STYLE="letter-spacing: 1.4pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February,<FONT STYLE="letter-spacing: 0.95pt">
</FONT>1980 (Page 3 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 20.5pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">days <FONT STYLE="letter-spacing: 0.4pt">f</FONT>rom
submission of the first proposal, then Unit Operator shall file<FONT STYLE="letter-spacing: 0.15pt"> </FONT>with the Appropriate
Agency<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a<FONT STYLE="letter-spacing: 0.7pt"> </FONT>proposal<FONT STYLE="letter-spacing: 1.3pt">
</FONT>reflecting as nearly as <FONT STYLE="letter-spacing: 0.15pt"> </FONT>practicable the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>various views expressed by the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.4 Rejection of
Proposal.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>If a<FONT STYLE="letter-spacing: 0.45pt"> </FONT>proposal filed by Unit Operator
as above provided is<FONT STYLE="letter-spacing: 0.15pt"> </FONT>rejected by<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Appropriate<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Agency, Unit Operator<FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall<FONT STYLE="letter-spacing: 1pt"> </FONT>initiate<FONT STYLE="letter-spacing: 0.4pt">
</FONT>a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>new proposal in the same manner<FONT STYLE="letter-spacing: 0.4pt"> </FONT>as
provided in Section<FONT STYLE="letter-spacing: 1.45pt"> </FONT>5.1, and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the procedure
with<FONT STYLE="letter-spacing: 1.4pt"> </FONT>respect thereto shall be the<FONT STYLE="letter-spacing: 1pt"> </FONT>same as in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the case<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of an<FONT STYLE="letter-spacing: 0.7pt"> </FONT>initial<FONT STYLE="letter-spacing: 1pt">
</FONT>proposal.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.5 Consolidation.
Two or more participating<FONT STYLE="letter-spacing: 0.45pt"> </FONT>areas may<FONT STYLE="letter-spacing: 0.6pt"> </FONT>be<FONT STYLE="letter-spacing: 1.3pt">
</FONT>combined as provided in the Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 6</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>APPORTIONMENT<FONT STYLE="letter-spacing: 0.45pt">
</FONT>OF COSTS AND OWNERSHIP<FONT STYLE="letter-spacing: 0.55pt"> </FONT>AND DISPOSITION OF<FONT STYLE="letter-spacing: 0.05pt">
</FONT>PRODUCTION AND<FONT STYLE="letter-spacing: 0.95pt"> </FONT>PROPERTY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.1 Apportionment
and Ownership Within<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Participating<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Area.
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Except as<FONT STYLE="letter-spacing: 1.4pt"> </FONT>otherwise provided in Articles<FONT STYLE="letter-spacing: 0.6pt">
</FONT>8,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>9, 11, and 12:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Costs. All<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Costs incurred in the development and operation of a participating area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for<FONT STYLE="letter-spacing: 0.45pt">
</FONT>or in connection with production of unitized <FONT STYLE="letter-spacing: 0.35pt"> </FONT>substances from any pool or zone
for<FONT STYLE="letter-spacing: 0.4pt"> </FONT>which<FONT STYLE="letter-spacing: 1.4pt"> </FONT>such participating area <FONT STYLE="letter-spacing: 0.35pt">
</FONT>is established<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.4pt"> </FONT>borne by
the Parties<FONT STYLE="letter-spacing: 0.35pt"> </FONT>within such participating area <FONT STYLE="letter-spacing: 0.55pt"> </FONT>on<FONT STYLE="letter-spacing: 0.55pt">
</FONT>an<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Acreage Basis, determined as of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>time <FONT STYLE="letter-spacing: 0.25pt"> </FONT>such Costs are incurred.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Production. All<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Production from a<FONT STYLE="letter-spacing: 0.45pt"> </FONT>participating
area shall be allocated on<FONT STYLE="letter-spacing: 0.05pt"> </FONT>an<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Acreage Basis
to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>tracts of unitized<FONT STYLE="letter-spacing: 0.25pt">
</FONT>land within such participating area. That portion of such Production which is<FONT STYLE="letter-spacing: 0.7pt"> </FONT>allocated
to any such tract shall<FONT STYLE="letter-spacing: 0.35pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>owned by<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the Party<FONT STYLE="letter-spacing: 0.25pt"> </FONT>or Parties<FONT STYLE="letter-spacing: 1.3pt"> </FONT>having<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Committed Working Interest<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or<FONT STYLE="letter-spacing: 1pt"> </FONT>Interests<FONT STYLE="letter-spacing: 0.4pt">
</FONT>therein<FONT STYLE="letter-spacing: 0.35pt"> </FONT>in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the same manner<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and subject<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>same conditions
as if actually produced from such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>tract<FONT STYLE="letter-spacing: 0.35pt"> </FONT>through
a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>well thereon and as<FONT STYLE="letter-spacing: 0.95pt"> </FONT>if this Agreement
and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the Unit Agreement had not been<FONT STYLE="letter-spacing: 1.4pt"> </FONT>executed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Property. All materials, equipment, and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>other <FONT STYLE="letter-spacing: 0.6pt">
</FONT>property,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>whether<FONT STYLE="letter-spacing: 0.7pt"> </FONT>real or personal,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the cost of which is chargeable as<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Costs and<FONT STYLE="letter-spacing: 1pt">
</FONT>which have<FONT STYLE="letter-spacing: 1.45pt"> </FONT>been<FONT STYLE="letter-spacing: 0.45pt"> </FONT>acquired in<FONT STYLE="letter-spacing: 0.15pt">
</FONT>connection with the<FONT STYLE="letter-spacing: 0.6pt"> </FONT>development or operation of a<FONT STYLE="letter-spacing: 0.45pt">
</FONT>participating area, shall be owned by the Parties within such participating area on<FONT STYLE="letter-spacing: 0.05pt">
</FONT>an Acreage <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.2 Ownership and<FONT STYLE="letter-spacing: 1pt">
</FONT>Costs<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Outside Participating Area. If a<FONT STYLE="letter-spacing: 0.35pt"> </FONT>well
Drilled (including the Deepening<FONT STYLE="letter-spacing: 0.35pt"> </FONT>or Plugging<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Back
thereof) <FONT STYLE="letter-spacing: 0.3pt"> </FONT>within <FONT STYLE="letter-spacing: 0.45pt"> </FONT>a Drilling Block<FONT STYLE="letter-spacing: 1pt">
</FONT>established under the provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>either<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Article <FONT STYLE="letter-spacing: 0.55pt"> </FONT>9<FONT STYLE="letter-spacing: 0.25pt"> </FONT>or Article <FONT STYLE="letter-spacing: 0.15pt">
</FONT>10<FONT STYLE="letter-spacing: 1pt"> </FONT>is completed <FONT STYLE="letter-spacing: 0.55pt"> </FONT>as a producer <FONT STYLE="letter-spacing: 0.7pt">
</FONT>but not included within<FONT STYLE="letter-spacing: 0.35pt"> </FONT>a participating area,<FONT STYLE="letter-spacing: 0.4pt">
</FONT>then the following provisions <FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall be applicable:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.45pt">
</FONT>When All<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Drilling Block Parties Participate. If<FONT STYLE="letter-spacing: 0.15pt">
</FONT>all Parties within <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Drilling
Block<FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall have elected <FONT STYLE="letter-spacing: 0.7pt"> </FONT>to participate<FONT STYLE="letter-spacing: 0.55pt">
</FONT>in<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Drilling and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Completing<FONT STYLE="letter-spacing: 0.15pt">
</FONT>such <FONT STYLE="letter-spacing: 0.45pt"> </FONT>well, then said <FONT STYLE="letter-spacing: 0.4pt"> </FONT>well, the
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Production therefrom, and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the materials
and<FONT STYLE="letter-spacing: 0.95pt"> </FONT>equipment therein or<FONT STYLE="letter-spacing: 0.25pt"> </FONT>appurtenant<FONT STYLE="letter-spacing: 0.35pt">
</FONT>thereto shall be owned by such Parties;<FONT STYLE="letter-spacing: 0.95pt"> </FONT>and <FONT STYLE="letter-spacing: 0.6pt">
</FONT>all <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Costs incurred in <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the <FONT STYLE="letter-spacing: 0.55pt">
</FONT>operation of such <FONT STYLE="letter-spacing: 0.7pt"> </FONT>well and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>all <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Lease <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Burdens payable in respect<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of
Production from such well shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>borne<FONT STYLE="letter-spacing: 1.45pt">
</FONT>and paid by said Parties.<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Apportionment among said Parties of ownership, Costs,
and Lease<FONT STYLE="letter-spacing: 1pt"> </FONT>Burdens shall be in the same<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proportions
in which<FONT STYLE="letter-spacing: 1pt"> </FONT>Costs incurred<FONT STYLE="letter-spacing: 1pt"> </FONT>in Drilling<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>well were borne.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. When Less Than
All Drilling Block Parties<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Participate. If any Party within the Drilling Block<FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall have elected not to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate in<FONT STYLE="letter-spacing: 1pt"> </FONT>Drilling
or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Completing such well,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>then the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>provisions of Article<FONT STYLE="letter-spacing: 0.6pt"> 1</FONT>2 shall be applicable<FONT STYLE="letter-spacing: 0.25pt">
</FONT>thereto; and the relinquished interest of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Non-Drilling<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Party shall revert to it<FONT STYLE="letter-spacing: 0.45pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the same<FONT STYLE="letter-spacing: 1.3pt"> </FONT>manner and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>under the same<FONT STYLE="letter-spacing: 1.3pt">
</FONT>conditions as<FONT STYLE="letter-spacing: 0.7pt"> </FONT>provided in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Section
12.4 with respect to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>well which results
in the establishment or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>enlargement of a<FONT STYLE="letter-spacing: 0.7pt"> </FONT>participating
area,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>except that <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the proceeds<FONT STYLE="letter-spacing: 0.4pt">
</FONT>or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>market value to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>be used<FONT STYLE="letter-spacing: 0.95pt">
</FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>determining when<FONT STYLE="letter-spacing: 0.7pt"> </FONT>such<FONT STYLE="letter-spacing: 1pt">
</FONT>reversion shall occur<FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.6pt"> </FONT>be the
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>proceeds or market value (after <FONT STYLE="letter-spacing: 1.4pt"> </FONT>making<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>deductions provided for in Section 12.4) of that portion of the <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Production<FONT STYLE="letter-spacing: 1.4pt"> </FONT>obtained from <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.95pt">
</FONT>well <FONT STYLE="letter-spacing: 0.3pt"> </FONT>which, had the Non-Drilling Party elected <FONT STYLE="letter-spacing: 1.4pt">
</FONT>to participate<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the Drilling or Completing thereof, would have been<FONT STYLE="letter-spacing: 1.4pt">
</FONT>allocable, on an<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Acreage <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Basis within
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilling Block,<FONT STYLE="letter-spacing: 0.6pt">
</FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Non-Drilling Party. Upon<FONT STYLE="letter-spacing: 1pt"> </FONT>reversion
of the relinquished interest<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of the Non-Drilling Party in such well, the<FONT STYLE="letter-spacing: 0.4pt">
</FONT>provisions<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of Section 12.5 shall<FONT STYLE="letter-spacing: 1.4pt"> </FONT>become
applicable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.3 Cost Liability
of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Subsequently<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Created Interests. Anything
herein to the contrary not withstanding, if, subsequent to the date of this Agreement, any<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party shall create an overriding royalty, production<FONT STYLE="letter-spacing: 0.15pt"> </FONT>payment,<FONT STYLE="letter-spacing: 1pt">
</FONT>net proceeds<FONT STYLE="letter-spacing: 1.4pt"> </FONT>interest,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>carried interest,<FONT STYLE="letter-spacing: 0.6pt">
</FONT>or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any other <FONT STYLE="letter-spacing: 0.35pt"> </FONT>interest out<FONT STYLE="letter-spacing: 1.4pt">
</FONT>of its Committed Working <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Interest<FONT STYLE="letter-spacing: 1.45pt"> </FONT>(hereinafter<FONT STYLE="letter-spacing: 1pt">
</FONT>called <FONT STYLE="letter-spacing: 0.55pt"> </FONT>&quot;Subsequently Created<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Interest&quot;),
such <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Subsequently<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Created Interest shall
be made expressly<FONT STYLE="letter-spacing: 0.25pt"> </FONT>subject <FONT STYLE="letter-spacing: 0.6pt"> </FONT>to the terms
and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>this Section <FONT STYLE="letter-spacing: 0.15pt"> </FONT>6.3 and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of Section
12.9. If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>which<FONT STYLE="letter-spacing: 1.3pt">
</FONT>created <FONT STYLE="letter-spacing: 0.35pt"> </FONT>such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Subsequently<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Created Interest<FONT STYLE="letter-spacing: 0.6pt"> </FONT>fails to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>pay, when
due, its<FONT STYLE="letter-spacing: 1pt"> </FONT>share of Costs<FONT STYLE="letter-spacing: 1pt"> </FONT>and the proceeds from
its share of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Production<FONT STYLE="letter-spacing: 0.4pt"> </FONT>are <FONT STYLE="letter-spacing: 0.05pt">
</FONT>insufficient<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>cover such Costs,
then the Subsequently Created Interest shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be chargeable<FONT STYLE="letter-spacing: 1.45pt">
</FONT>with a <FONT STYLE="letter-spacing: 0.35pt"> </FONT>pro rata share<FONT STYLE="letter-spacing: 1pt"> </FONT>of<FONT STYLE="letter-spacing: 1pt">
</FONT>such Costs as if<FONT STYLE="letter-spacing: 1.3pt"> </FONT>such Subsequently Created Interest were a<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Committed<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Interest; and
Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator shall have the right <FONT STYLE="letter-spacing: 1pt"> </FONT>to enforce
against<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such Subsequently Created Interest the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>lien and all other rights granted<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in Section <FONT STYLE="letter-spacing: 0.55pt">
</FONT>15.5 for the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>purpose <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>collecting Costs chargeable to the Subsequently Created<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.4 Taking<FONT STYLE="letter-spacing: 0.05pt">
</FONT>in Kind. Each Party shall<FONT STYLE="letter-spacing: 0.25pt"> </FONT>currently,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>as<FONT STYLE="letter-spacing: 1pt">
</FONT>produced, take in kind or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>separately dispose of its<FONT STYLE="letter-spacing: 0.55pt">
</FONT>share of Production and pay Unit Operator for<FONT STYLE="letter-spacing: 0.15pt"> </FONT>any extra expenditure necessitated
thereby. Except as otherwise provided in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Section 15.5, each Party shall be entitled<FONT STYLE="letter-spacing: 0.4pt">
</FONT>to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>receive directly all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>proceeds
from<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the sale<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.45pt">
</FONT>its share<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of Production. Unit <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Operator
shall timely make <FONT STYLE="letter-spacing: 0.6pt"> </FONT>all permitted governmental filings relative to the price to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>be charged for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>gas; however, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit
Operator shall not<FONT STYLE="letter-spacing: 0.25pt"> </FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>liable if, through
mistake or oversight, it should fail to make any such <FONT STYLE="letter-spacing: 0.45pt"> </FONT>filing <FONT STYLE="letter-spacing: 0.6pt">
</FONT>or<FONT STYLE="letter-spacing: 1pt"> </FONT>should make <FONT STYLE="letter-spacing: 0.3pt"> </FONT>erroneous filings.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.5 Failure to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Take in<FONT STYLE="letter-spacing: 1pt"> </FONT>Kind.<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Should <FONT STYLE="letter-spacing: 0.05pt">
</FONT>any Party fail to take in kind or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>separately dispose<FONT STYLE="letter-spacing: 1.3pt">
</FONT>of its share of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Production, the Party acting as Unit Operator<FONT STYLE="letter-spacing: 0.55pt">
</FONT>shall have <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>right,<FONT STYLE="letter-spacing: 0.95pt">
</FONT>revocable <FONT STYLE="letter-spacing: 0.4pt"> </FONT>at <FONT STYLE="letter-spacing: 0.25pt"> </FONT>will by the <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Party owning such share, to purchase<FONT STYLE="letter-spacing: 1.45pt"> </FONT>such share<FONT STYLE="letter-spacing: 1.45pt">
</FONT>for <FONT STYLE="letter-spacing: 0.4pt"> </FONT>its <FONT STYLE="letter-spacing: 0.3pt"> </FONT>own <FONT STYLE="letter-spacing: 0.35pt">
</FONT>account at <FONT STYLE="letter-spacing: 1pt"> </FONT>not <FONT STYLE="letter-spacing: 0.6pt"> </FONT>less <FONT STYLE="letter-spacing: 0.3pt">
</FONT>than <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the market price</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">3</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT<FONT STYLE="letter-spacing: 1.45pt">
</FONT>OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2<FONT STYLE="letter-spacing: 0.3pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page<FONT STYLE="letter-spacing: 0.35pt">
</FONT>4 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">receives<FONT STYLE="letter-spacing: 1.3pt">
</FONT>for its<FONT STYLE="letter-spacing: 0.7pt"> </FONT>own<FONT STYLE="letter-spacing: 0.4pt"> </FONT>share of Production; provided
that all such<FONT STYLE="letter-spacing: 1pt"> </FONT>sales<FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall be only for<FONT STYLE="letter-spacing: 0.35pt">
</FONT>such reasonable periods of time<FONT STYLE="letter-spacing: 1.4pt"> </FONT>as are consistent<FONT STYLE="letter-spacing: 0.15pt">
</FONT>with the minimum<FONT STYLE="letter-spacing: 0.35pt"> </FONT>needs of the industry under <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the circumstances,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>but not to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>exceed<FONT STYLE="letter-spacing: 1.3pt">
</FONT>one (1) <FONT STYLE="letter-spacing: 0.55pt"> </FONT>year. <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Notwithstanding<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>foregoing, Unit Operator shall not sell<FONT STYLE="letter-spacing: 1pt">
</FONT>or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>commit any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party's share of gas
Production to a sale without first<FONT STYLE="letter-spacing: 1.4pt"> </FONT>giving such Party<FONT STYLE="letter-spacing: 0.55pt">
</FONT>not<FONT STYLE="letter-spacing: 0.7pt"> </FONT>less<FONT STYLE="letter-spacing: 1pt"> </FONT>than ninety (90) days<FONT STYLE="letter-spacing: 0.45pt">
</FONT>written notice.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">6.6 Surplus
Materials and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Equipment. Materials and equipment owned by the Parties or by any of them
pursuant to this Agreement may<FONT STYLE="letter-spacing: 1pt"> </FONT>be classified as<FONT STYLE="letter-spacing: 0.3pt"> </FONT>surplus
by Unit Operator when<FONT STYLE="letter-spacing: 0.7pt"> </FONT>deemed bv it to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>be
no longer <FONT STYLE="letter-spacing: 0.35pt"> </FONT>needed <FONT STYLE="letter-spacing: 0.35pt"> </FONT>in operations<FONT STYLE="letter-spacing: 0.45pt">
</FONT>hereunder, by<FONT STYLE="letter-spacing: 0.95pt"> </FONT>giving <FONT STYLE="letter-spacing: 0.95pt"> </FONT>to each <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.45pt"> </FONT>owning an interest therein notice thereof. Such<FONT STYLE="letter-spacing: 0.05pt">
</FONT>surplus materials and equipment shall<FONT STYLE="letter-spacing: 1.45pt"> </FONT>be disposed<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>as follows:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Each <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Party owning <FONT STYLE="letter-spacing: 0.45pt"> </FONT>an <FONT STYLE="letter-spacing: 0.45pt">
</FONT>interest<FONT STYLE="letter-spacing: 1.45pt"> </FONT>therein shall <FONT STYLE="letter-spacing: 1.45pt"> </FONT>have the
right to take in kind <FONT STYLE="letter-spacing: 0.4pt"> </FONT>its <FONT STYLE="letter-spacing: 0.25pt"> </FONT>share<FONT STYLE="letter-spacing: 0.4pt">
</FONT>of surplus tubular<FONT STYLE="letter-spacing: 0.15pt"> </FONT>goods and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>other
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>surplus<FONT STYLE="letter-spacing: 0.25pt"> </FONT>items which are susceptible of
division <FONT STYLE="letter-spacing: 0.45pt"> </FONT>in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>kind, <FONT STYLE="letter-spacing: 0.55pt">
</FONT>by notice given <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Operator within thirty<FONT STYLE="letter-spacing: 0.05pt"> </FONT><I>(30)<FONT STYLE="letter-spacing: 0.55pt"> </FONT></I>days
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>after classification thereof <FONT STYLE="letter-spacing: 0.3pt"> </FONT>as surplus,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>except <FONT STYLE="letter-spacing: 0.25pt"> </FONT>that such right <FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.45pt">
</FONT>not<FONT STYLE="letter-spacing: 1.4pt"> </FONT>apply to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>junk or to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>any item <FONT STYLE="letter-spacing: 0.25pt"> </FONT>(other than <FONT STYLE="letter-spacing: 1pt"> </FONT>tubular goods)
having a replacement cost<FONT STYLE="letter-spacing: 1pt"> </FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>less than Seven
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Thousand<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Five Hundred<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Dollars ($7,500.00).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">B. Surplus
materials and equipP1ent <FONT STYLE="letter-spacing: 0.4pt"> </FONT>not divided in kind, other <FONT STYLE="letter-spacing: 0.25pt">
</FONT>than <FONT STYLE="letter-spacing: 0.25pt"> </FONT>junk and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>any item (other than
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>tubular goods)<FONT STYLE="letter-spacing: 0.55pt"> </FONT>having a<FONT STYLE="letter-spacing: 0.6pt">
</FONT>replacement cost of less than <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Seven Thousand<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Five Hundred Dollars ($7,500.00), <FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall be sold to the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>highest bidder <FONT STYLE="letter-spacing: 0.7pt"> </FONT>or<FONT STYLE="letter-spacing: 1.4pt"> </FONT>bidders.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Surplus materials <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and equipment not <FONT STYLE="letter-spacing: 1.3pt"> </FONT>disposed
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in accordance <FONT STYLE="letter-spacing: 0.4pt">
</FONT>with the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>preceding provisions of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>shall be disposed of as provided
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in Exhibit 1.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>ARTICLE 7</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>PLANS OF<FONT STYLE="letter-spacing: 0.25pt">
</FONT>DEVELOPMENT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.1 Submittal
of Plans.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Each plan<FONT STYLE="letter-spacing: 0.4pt"> </FONT>for the<FONT STYLE="letter-spacing: 0.35pt">
</FONT>development<FONT STYLE="letter-spacing: 0.7pt"> </FONT>and operation<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Unit Area shall be submitted by Unit Operator to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Appropriate Agency<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>accordance
with the Unit Agreement and<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the further provisions of<FONT STYLE="letter-spacing: 0.6pt">
</FONT>this Article.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.2 Proposal.
Unit Operator shall initiate each proposed plan<FONT STYLE="letter-spacing: 1.3pt"> </FONT>by submitting the same<FONT STYLE="letter-spacing: 1.4pt">
</FONT>in<FONT STYLE="letter-spacing: 0.6pt"> wri</FONT>ting<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to each<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party at least thirty (30) days<FONT STYLE="letter-spacing: 1.3pt"> </FONT>before filing the same<FONT STYLE="letter-spacing: 0.35pt">
</FONT>with the Appropriate<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Agency. If, within the 30-day period above<FONT STYLE="letter-spacing: 0.55pt">
</FONT>provided, such plan receives the Approval of the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties or<FONT STYLE="letter-spacing: 0.45pt">
</FONT>no written objections are received, then such<FONT STYLE="letter-spacing: 0.15pt"> </FONT>plan shall be filed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.3<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Objections<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to Plan. Within the 30-day<FONT STYLE="letter-spacing: 0.4pt"> </FONT>period<FONT STYLE="letter-spacing: 1.45pt">
</FONT>above provided, any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.25pt"> </FONT>may submit<FONT STYLE="letter-spacing: 0.05pt">
</FONT>to Unit Operator written objections to such plan. If, despite such objections, the plan<FONT STYLE="letter-spacing: 0.95pt">
</FONT>receives<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>Approval<FONT STYLE="letter-spacing: 0.95pt">
</FONT>of the Parties, then the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Party making<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the objections <FONT STYLE="letter-spacing: 0.55pt"> </FONT>may <FONT STYLE="letter-spacing: 0.05pt"> </FONT>renew the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>same before the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Appropriate<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Agency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.4 Revised<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Plan.<FONT STYLE="letter-spacing: 0.55pt"> </FONT>If<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such <FONT STYLE="letter-spacing: 0.3pt">
</FONT>plan does not <FONT STYLE="letter-spacing: 0.05pt"> </FONT>receive <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Approval
of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Parties, and <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Unit Operator receives written objections thereto, then <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit Operator shall<FONT STYLE="letter-spacing: 1.4pt">
</FONT>submit to the Parties a revised plan, taking into account the objections made to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the
first <FONT STYLE="letter-spacing: 0.15pt"> </FONT>plan. If no plan receives the Approval of the Parties within sixty <FONT STYLE="letter-spacing: 1pt">
</FONT>(60) days from<FONT STYLE="letter-spacing: 0.95pt"> </FONT>submission<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the first plan, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>then Unit <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.95pt"> </FONT>file with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Appropriate Agency <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a<FONT STYLE="letter-spacing: 1.4pt"> </FONT>plan <FONT STYLE="letter-spacing: 0.45pt">
</FONT>reflecting as nearly <FONT STYLE="letter-spacing: 1pt"> </FONT>as practicable the various <FONT STYLE="letter-spacing: 1.3pt">
</FONT>views expressed by the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.5 Rejection
of Plan.<FONT STYLE="letter-spacing: 1pt"> </FONT>If a <FONT STYLE="letter-spacing: 0.35pt"> </FONT>plan filed by <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Unit Operator as <FONT STYLE="letter-spacing: 0.3pt"> </FONT>above provided <FONT STYLE="letter-spacing: 1.3pt"> </FONT>is
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>rejected by the Appropriate Agency,<FONT STYLE="letter-spacing: 1pt"> </FONT>Unit
Operator shall<FONT STYLE="letter-spacing: 0.4pt"> </FONT>initiate<FONT STYLE="letter-spacing: 1.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.35pt">
</FONT>new plan in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>same<FONT STYLE="letter-spacing: 1.3pt">
</FONT>manner as<FONT STYLE="letter-spacing: 0.7pt"> </FONT>provided in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Section. 7.2,
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>and <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>procedure <FONT STYLE="letter-spacing: 0.7pt"> </FONT>with <FONT STYLE="letter-spacing: 0.6pt"> </FONT>respect <FONT STYLE="letter-spacing: 0.55pt">
</FONT>thereto shall<FONT STYLE="letter-spacing: 1pt"> </FONT>be the same as in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>case of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>an initial plan.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.6 Notice
of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Approval or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Disapproval. If and when<FONT STYLE="letter-spacing: 1.4pt">
</FONT>a plan<FONT STYLE="letter-spacing: 1.45pt"> </FONT>has been<FONT STYLE="letter-spacing: 0.6pt"> </FONT>approved or<FONT STYLE="letter-spacing: 0.25pt">
</FONT>disapproved by the Appropriate Agency, Unit Operator shall<FONT STYLE="letter-spacing: 1pt"> </FONT>give prompt notice thereof
to each Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.7 Supplemental<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Plans.<FONT STYLE="letter-spacing: 1.4pt"> </FONT>If<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>or Parties shall have <FONT STYLE="letter-spacing: 0.4pt"> </FONT>elected
to proceed with <FONT STYLE="letter-spacing: 0.6pt"> </FONT>a &middot;Drilling, Deepening, or Plugging Back<FONT STYLE="letter-spacing: 0.6pt">
</FONT>operation in accordance with the provisions of this Agreement,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and such operation
is not provided for<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>then current
plan <FONT STYLE="letter-spacing: 0.4pt"> </FONT>of development approved <FONT STYLE="letter-spacing: 1.45pt"> </FONT>by the Appropriate
Agency, Unit Operator shall<FONT STYLE="letter-spacing: 0.45pt"> </FONT>either<FONT STYLE="letter-spacing: 0.7pt"> </FONT>(a)<FONT STYLE="letter-spacing: 0.15pt">
</FONT>submit to the Appropriate Agency<FONT STYLE="letter-spacing: 1.3pt"> </FONT>for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>approval
a supplemental plan providing for the<FONT STYLE="letter-spacing: 0.6pt"> </FONT>conduct of such operation or<FONT STYLE="letter-spacing: 0.4pt">
</FONT>(b) request the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Appropriate Agency<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to
consent to such operation, if<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such consent is sufficient.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.8<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Cessation of<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Operations Under the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Plan.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>If any plan <FONT STYLE="letter-spacing: 0.4pt"> </FONT>approved <FONT STYLE="letter-spacing: 1pt"> </FONT>by the <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Appropriate Agency provides for the cessation of any Drilling or other operation therein provided for<FONT STYLE="letter-spacing: 0.35pt">
</FONT>on<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the happening of a contingency<FONT STYLE="letter-spacing: 0.4pt"> </FONT>and
such contingency<FONT STYLE="letter-spacing: 0.4pt"> </FONT>occurs, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Operator shall promptly <FONT STYLE="letter-spacing: 0.4pt"> </FONT>cease such Drilling or other operation and shall not
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>incur <FONT STYLE="letter-spacing: 1.45pt"> </FONT>any <FONT STYLE="letter-spacing: 0.7pt">
</FONT>additional Costs in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>connection therewith <FONT STYLE="letter-spacing: 0.3pt">
</FONT>unless <FONT STYLE="letter-spacing: 1.4pt"> </FONT>and until <FONT STYLE="letter-spacing: 1.4pt"> </FONT>such Drilling<FONT STYLE="letter-spacing: 0.7pt">
</FONT>or other operation is again authorized, in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>accordance <FONT STYLE="letter-spacing: 1.45pt">
</FONT>with this Agreement,<FONT STYLE="letter-spacing: 1pt"> </FONT>by the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Parties
chargeable with such Costs and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Appropriate Agency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>ARTICLE 8</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>DEVELOPMENT<FONT STYLE="letter-spacing: 0.6pt">
</FONT>WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">8.1 Purpose<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and Procedure. It is<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the purpose<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of
this Article to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>set forth the procedure<FONT STYLE="letter-spacing: 0.3pt"> </FONT>for
Drilling and<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Completing a Development Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">8.2 Drilling.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>The<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of a Development Well
shall be pursuant to the procedure herein set forth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">A. Approval
Required. The Drilling of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>a Development Well<FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>be<FONT STYLE="letter-spacing: 0.25pt"> </FONT>subject <FONT STYLE="letter-spacing: 0.4pt">
</FONT>to such Drilling receiving the <FONT STYLE="letter-spacing: 1pt"> </FONT>Approval of the <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Parties, unless the Drilling<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of the <FONT STYLE="letter-spacing: 1pt"> </FONT>proposed
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>well <FONT STYLE="letter-spacing: 0.25pt"> </FONT>is necessary to prevent <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the loss of a Committed Working Interest in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the tract of land <FONT STYLE="letter-spacing: 0.05pt">
</FONT>on<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>proposed well<FONT STYLE="letter-spacing: 0.35pt"> </FONT>is to be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilled.
Vote by any Party <FONT STYLE="letter-spacing: 0.35pt"> </FONT>in<FONT STYLE="letter-spacing: 0.35pt"> </FONT>favor of the Drilling
of any such well shall not,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>however, be deemed an<FONT STYLE="letter-spacing: 1.4pt">
</FONT>election by<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such Party <FONT STYLE="letter-spacing: 1.45pt"> </FONT>to participate<FONT STYLE="letter-spacing: 0.6pt">
</FONT>in the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Costs thereof but<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall mean
only that such Party</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center; text-indent: 15.1pt">4</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 0.4pt">
</FONT>UNIT<FONT STYLE="letter-spacing: 1.4pt"> </FONT>OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 1.3pt">
</FONT>2<FONT STYLE="letter-spacing: 0.6pt"> </FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February. 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">considers the<FONT STYLE="letter-spacing: 1pt">
</FONT>Drilling of the well<FONT STYLE="letter-spacing: 0.45pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be consistent
with<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the efficient and economic<FONT STYLE="letter-spacing: 0.7pt"> </FONT>development
of the participating<FONT STYLE="letter-spacing: 0.7pt"> </FONT>area involved <FONT STYLE="letter-spacing: 0.55pt"> </FONT>and
has <FONT STYLE="letter-spacing: 0.3pt"> </FONT>no objection to the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Drilling thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 1pt">
</FONT>Notice of Proposed<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Drilling. Subject <FONT STYLE="letter-spacing: 0.7pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>provisions of Subdivision A of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this
Section 8.2, any Party<FONT STYLE="letter-spacing: 0.55pt"> </FONT>within a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>participating
area <FONT STYLE="letter-spacing: 1pt"> </FONT>may propose the Drilling of a Development<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Well
therein<FONT STYLE="letter-spacing: 0.4pt"> </FONT>by giving to each of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt">
</FONT>other <FONT STYLE="letter-spacing: 1.3pt"> </FONT>Parties<FONT STYLE="letter-spacing: 1.3pt"> </FONT>within<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the participating<FONT STYLE="letter-spacing: 0.4pt"> </FONT>area notice, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>specifying
the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>location, depth, and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>estimated cost
of the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>proposed <FONT STYLE="letter-spacing: 1pt"> </FONT>well, which location shall
conform <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to any <FONT STYLE="letter-spacing: 0.7pt"> </FONT>applicable spacing pattern<FONT STYLE="letter-spacing: 1.45pt">
</FONT>then existing or<FONT STYLE="letter-spacing: 1.4pt"> </FONT>an approved exception thereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Response to<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Notice. Within thirty<FONT STYLE="letter-spacing: 0.7pt"> </FONT>(30)<FONT STYLE="letter-spacing: 0.45pt">
</FONT>days after receipt of such notice,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>each Party within such participating area
shall advise all other Parties therein<FONT STYLE="letter-spacing: 0.05pt"> </FONT>whether or<FONT STYLE="letter-spacing: 0.4pt">
</FONT>not it<FONT STYLE="letter-spacing: 0.45pt"> </FONT>wishes<FONT STYLE="letter-spacing: 1.4pt"> to</FONT><I> </I>participate
in<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilling the proposed well.<FONT STYLE="letter-spacing: 0.4pt"> </FONT>If any<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Party fails<FONT STYLE="letter-spacing: 1.4pt"> </FONT>to give such advice within said<FONT STYLE="letter-spacing: 0.7pt">
</FONT>30-day period, it<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be deemed to have elected not to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>participate in Drilling the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proposed well.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>If all Parties<FONT STYLE="letter-spacing: 0.45pt"> </FONT>within such participating<FONT STYLE="letter-spacing: 0.7pt">
</FONT>area advise that<FONT STYLE="letter-spacing: 0.6pt"> </FONT>they wish <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to participate
in Drilling<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>proposed <FONT STYLE="letter-spacing: 0.45pt">
</FONT>well, then Unit Operator shall Drill the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>well for the <FONT STYLE="letter-spacing: 0.35pt">
</FONT>account of all such Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Notice of Election
to Proceed. Unless<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Parties within<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>participating<FONT STYLE="letter-spacing: 0.7pt"> </FONT>area agree <FONT STYLE="letter-spacing: 1pt">
</FONT>to participate in Drilling such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well, then, <FONT STYLE="letter-spacing: 0.6pt">
</FONT>within fifteen (15)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>days after expiration of the 30-day period specified<FONT STYLE="letter-spacing: 1.4pt">
</FONT>in Subdivision C of this<FONT STYLE="letter-spacing: 1pt"> </FONT>Section 8.2, each<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>participating area
then desiring to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>have <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the proposed <FONT STYLE="letter-spacing: 0.45pt">
</FONT>well<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilled <FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall give <FONT STYLE="letter-spacing: 0.55pt">
</FONT>to<FONT STYLE="letter-spacing: 1.45pt"> </FONT>all <FONT STYLE="letter-spacing: 0.25pt"> </FONT>other <FONT STYLE="letter-spacing: 1.45pt">
</FONT>Parties therein notice of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>its election to proceed with the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Drilling of said well.<FONT STYLE="letter-spacing: 1pt"> </FONT>Failure<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>give<FONT STYLE="letter-spacing: 0.95pt"> </FONT>such notice shall be deemed an<FONT STYLE="letter-spacing: 1pt"> </FONT>election
not to participate in Drilling<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Subsequent Election. If<FONT STYLE="letter-spacing: 0.45pt"> </FONT>election <FONT STYLE="letter-spacing: 1.3pt"> </FONT>to
Drill <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>proposed <FONT STYLE="letter-spacing: 0.05pt">
</FONT>well is<FONT STYLE="letter-spacing: 0.95pt"> </FONT>made, any <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Party within <FONT STYLE="letter-spacing: 1.3pt">
</FONT>the participating area who had not<FONT STYLE="letter-spacing: 0.55pt"> </FONT>previously elected to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>participate therein may<FONT STYLE="letter-spacing: 0.45pt"> </FONT>do so by notice<FONT STYLE="letter-spacing: 0.6pt">
</FONT>given to Unit Operator at any time before the well<FONT STYLE="letter-spacing: 0.7pt"> </FONT>is<FONT STYLE="letter-spacing: 0.15pt">
</FONT>spudded, in which<FONT STYLE="letter-spacing: 1pt"> </FONT>event such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Party shall
be included in the Drilling Party.<FONT STYLE="letter-spacing: 0.35pt"> </FONT>However, such<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.55pt"> </FONT>be bound<FONT STYLE="letter-spacing: 0.15pt">
</FONT>by<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any and all Directions<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and Approvals
theretofore<FONT STYLE="letter-spacing: 0.7pt"> </FONT>given<FONT STYLE="letter-spacing: 0.4pt"> </FONT>by the Drilling Party concerning
the<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Effect<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of Election. If<FONT STYLE="letter-spacing: 0.45pt"> </FONT>one or more,
but not<FONT STYLE="letter-spacing: 1.4pt"> </FONT>all, of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Parties within the participating
area elect<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to proceed with the Drilling of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>well, Unit <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Operator shall Drill <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the well for the account <FONT STYLE="letter-spacing: 0.4pt"> </FONT>of such Party or Parties,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>who<FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.25pt"> </FONT>constitute<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Drilling Party,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>on an Acreage Basis among them selves, <FONT STYLE="letter-spacing: 0.4pt">
</FONT>or on such other basis <FONT STYLE="letter-spacing: 0.15pt"> </FONT>as said <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.35pt">
</FONT>may specify.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Rights and<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Obligations<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Drilling Party<FONT STYLE="letter-spacing: 1.3pt">
</FONT>and<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Non-Drilling Party. Whenever a<FONT STYLE="letter-spacing: 1pt"> </FONT>Development
Well is Drilled otherwise than <FONT STYLE="letter-spacing: 1.4pt"> </FONT>for<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the account
of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>all <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.6pt">
</FONT>within <FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>participating<FONT STYLE="letter-spacing: 0.45pt">
</FONT>area involved, the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>provisions <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Article 12 shall be applicable to such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">8.3 Attempted Completion.<FONT STYLE="letter-spacing: 1.3pt">
</FONT>The attempted Completion of Development Wells <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Drilled to their projected <FONT STYLE="letter-spacing: 0.45pt">
</FONT>depths<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.95pt"> </FONT>governed <FONT STYLE="letter-spacing: 1pt">
</FONT>by the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>following provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Notice by Unit
Operator.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>After <FONT STYLE="letter-spacing: 0.35pt"> </FONT>a Development Well has
reached <FONT STYLE="letter-spacing: 1.45pt"> </FONT>its projected <FONT STYLE="letter-spacing: 0.15pt"> </FONT>depth and been
tested, logged,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>and logs furnished<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>each Drilling Party,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>but before production<FONT STYLE="letter-spacing: 0.3pt">
</FONT>pipe has been set, Unit <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall
give notice thereof to each <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Right to<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Attempt Completion.<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Each Drilling Party shall <FONT STYLE="letter-spacing: 0.6pt">
</FONT>have the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>right <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to <FONT STYLE="letter-spacing: 0.45pt">
</FONT>initiate a proposal to attempt the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Completion of<FONT STYLE="letter-spacing: 0.55pt">
</FONT>such well and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>also shall <FONT STYLE="letter-spacing: 1.45pt"> </FONT>be entitled
to participate in the Completion<FONT STYLE="letter-spacing: 0.7pt"> </FONT>attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Time and Manner<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Initiating Proposal.
A<FONT STYLE="letter-spacing: 0.7pt"> </FONT>period of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>twenty-four<FONT STYLE="letter-spacing: 0.45pt">
</FONT>(24) hours <FONT STYLE="letter-spacing: 0.4pt"> </FONT>(exclusive <FONT STYLE="letter-spacing: 0.7pt"> </FONT>of Saturdays,<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Sundays, and holidays) from<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>after
receipt <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of the notice given pursuant<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to
Subdivision A<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of this Section 8.3 shall be allowed within which a Party entitled to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>do<FONT STYLE="letter-spacing: 0.55pt"> </FONT>so may <FONT STYLE="letter-spacing: 0.15pt"> </FONT>initiate a proposal to
Complete. Any<FONT STYLE="letter-spacing: 0.45pt"> </FONT>such proposal<FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall be initiated
by giving notice<FONT STYLE="letter-spacing: 1pt"> </FONT>thereof to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Operator and to each Drilling Party. If no such proposal is initiated within said period and no other proposal is initiated<FONT STYLE="letter-spacing: 0.7pt">
</FONT>pursuant<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Article 11,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Unit <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Operator shall <FONT STYLE="letter-spacing: 1pt"> </FONT>plug<FONT STYLE="letter-spacing: 1.4pt">
</FONT>and abandon<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the well for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the account
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Election. If a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>proposal <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Complete is initiated, each Drilling Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall have <FONT STYLE="letter-spacing: 0.4pt">
a</FONT><FONT STYLE="letter-spacing: 0.55pt"> </FONT>period of twenty-four<FONT STYLE="letter-spacing: 0.7pt"> </FONT>(24) hours
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>(exclusive of Saturdays, Sundays,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and <FONT STYLE="letter-spacing: 0.55pt">
</FONT>holidays) from and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>after <FONT STYLE="letter-spacing: 1.45pt"> </FONT>receipt
of such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposal within which to<FONT STYLE="letter-spacing: 1.45pt"> </FONT>notify
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Unit Operator whether<FONT STYLE="letter-spacing: 0.7pt"> </FONT>or not it<FONT STYLE="letter-spacing: 1.45pt">
</FONT>elects <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to participate<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in the Completion
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>attempt. The<FONT STYLE="letter-spacing: 0.7pt"> </FONT>failure of a<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Party to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>signify its<FONT STYLE="letter-spacing: 0.6pt"> </FONT>election<FONT STYLE="letter-spacing: 0.35pt">
</FONT>within said 24-hour<FONT STYLE="letter-spacing: 0.05pt"> </FONT>period<FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall
be deemed an election not to participate<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in the<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Completion<FONT STYLE="letter-spacing: 0.7pt"> </FONT>attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. <FONT STYLE="letter-spacing: 1.3pt">
</FONT>Effect of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Election. The Party or<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.05pt">
</FONT>electing to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate in an attempt to Complete a well<FONT STYLE="letter-spacing: 0.95pt">
</FONT>as above provided<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall constitute<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the
Completing Party for<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such operation. Each<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party
who was entitled<FONT STYLE="letter-spacing: 0.35pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>make such<FONT STYLE="letter-spacing: 1.4pt">
</FONT>election<FONT STYLE="letter-spacing: 0.7pt"> </FONT>but failed to do so<FONT STYLE="letter-spacing: 0.45pt"> </FONT>as above<FONT STYLE="letter-spacing: 1.3pt">
</FONT>provided shall be a Non-Completing Party<FONT STYLE="letter-spacing: 0.55pt"> </FONT>with respect to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>such operation. Such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation shall<FONT STYLE="letter-spacing: 0.7pt"> </FONT>be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>conducted by Unit <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Operator for the account <FONT STYLE="letter-spacing: 0.35pt">
</FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the Party or Parties<FONT STYLE="letter-spacing: 0.95pt"> </FONT>constituting
the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Completing Party,<FONT STYLE="letter-spacing: 1pt"> </FONT>on an <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Acreage Basis <FONT STYLE="letter-spacing: 0.45pt"> </FONT>among themselves, or <FONT STYLE="letter-spacing: 0.35pt"> </FONT>on
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such other <FONT STYLE="letter-spacing: 0.3pt"> </FONT>basis as <FONT STYLE="letter-spacing: 1pt">
</FONT>the Completing Party <FONT STYLE="letter-spacing: 0.25pt"> </FONT>may <FONT STYLE="letter-spacing: 1pt"> </FONT>specify.
Such operation, if successful, shall include Equipping<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the well for production.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Rights<FONT STYLE="letter-spacing: 0.25pt">
</FONT>and Obligations of Completing Party and Non-Completing Party. Upon the commencement<FONT STYLE="letter-spacing: 0.4pt">
</FONT>of a Completion operation<FONT STYLE="letter-spacing: 0.95pt"> </FONT>otherwise than for<FONT STYLE="letter-spacing: 1.4pt">
</FONT>the account<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all Drilling Parties,
the provisions of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Article 12 shall be applicable to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. <FONT STYLE="letter-spacing: 1pt">
</FONT>Notice Prior<FONT STYLE="letter-spacing: 0.35pt"> </FONT>to Plugging. Before plugging and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>abandoning any Development Well which was Drilled <FONT STYLE="letter-spacing: 1.4pt"> </FONT>to its projected <FONT STYLE="letter-spacing: 0.45pt">
</FONT>depth <FONT STYLE="letter-spacing: 1.4pt"> </FONT>and <FONT STYLE="letter-spacing: 1pt"> </FONT>not completed as a producer
of<FONT STYLE="letter-spacing: 1pt"> </FONT>unitized substances, Unit Operator shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>give
the notice specified in Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>11.1 A,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>unless
every Party<FONT STYLE="letter-spacing: 0.25pt"> </FONT>entitled to the notice has consented to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the plugging and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>abandonment<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of
such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in which<FONT STYLE="letter-spacing: 1.3pt">
</FONT>event <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Operator shall plug<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and abandon<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the well<FONT STYLE="letter-spacing: 0.4pt"> </FONT>for<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>account <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Completing Party.<FONT STYLE="letter-spacing: 1pt">
</FONT>Upon the giving of such notice, the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>provisions of Article 11 shall apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">5</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY<FONT STYLE="letter-spacing: 0.35pt">
</FONT>MOUNTAIN U JIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 1.3pt">
</FONT>2<FONT STYLE="letter-spacing: 0.3pt"> </FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February 1980 (Page<FONT STYLE="letter-spacing: 0.15pt">
</FONT>6 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 0.95pt">
</FONT>9</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EXPLORATORY WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">9.1<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Purpose<FONT STYLE="letter-spacing: 0.35pt"> </FONT>and Procedure. It is the purpose<FONT STYLE="letter-spacing: 0.35pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Article to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>set forth the
procedure for<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Drilling and Completing<FONT STYLE="letter-spacing: 0.55pt"> </FONT>an
Exploratory Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">9.2 Drilling.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>The Drilling<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>an Exploratory Well<FONT STYLE="letter-spacing: 1.3pt">
</FONT>shall<FONT STYLE="letter-spacing: 0.6pt"> </FONT>be<FONT STYLE="letter-spacing: 1.4pt"> </FONT>pursuant to<FONT STYLE="letter-spacing: 1.4pt">
</FONT>the<FONT STYLE="letter-spacing: 0.35pt"> </FONT>procedure herein<FONT STYLE="letter-spacing: 0.45pt"> </FONT>set forth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Notice of Proposed Drilling. Any Party desiring the Drilling of an Exploratory Well<FONT STYLE="letter-spacing: 0.05pt">
</FONT>on land in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>which it owns a Committed Working Interest<FONT STYLE="letter-spacing: 0.45pt">
</FONT>shall<FONT STYLE="letter-spacing: 0.25pt"> </FONT>designate an area, <FONT STYLE="letter-spacing: 0.95pt"> </FONT>herein
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>called a<FONT STYLE="letter-spacing: 1pt"> </FONT>Drilling Block, not to excee<FONT STYLE="letter-spacing: 0.3pt">d
<U> 960 </U> </FONT>acres, which,<FONT STYLE="letter-spacing: 1pt"> </FONT>on<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the basis<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of available geological information, will,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in its judgment,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>be proved <FONT STYLE="letter-spacing: 0.35pt"> </FONT>productive by the Drilling<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.55pt">
</FONT>such well. <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Unit<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Operator and each
Party within<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Drilling Block shall<FONT STYLE="letter-spacing: 0.55pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>furnished<FONT STYLE="letter-spacing: 0.6pt"> </FONT>with a plat and description of the area so designated, together<FONT STYLE="letter-spacing: 0.25pt">
</FONT>with notice of the location, objective formation, estimated<FONT STYLE="letter-spacing: 0.05pt"> </FONT>depth, and<FONT STYLE="letter-spacing: 0.95pt">
</FONT>estimated cost<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of the proposed<FONT STYLE="letter-spacing: 1.45pt"> </FONT>well.
The<FONT STYLE="letter-spacing: 1.4pt"> </FONT>location<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the proposed we II shall<FONT STYLE="letter-spacing: 0.35pt"> </FONT>conform to any applicable spacing pattern then existing
or an<FONT STYLE="letter-spacing: 0.4pt"> </FONT>approved exception thereto.<FONT STYLE="letter-spacing: 0.35pt"> </FONT>The <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Drilling Block<FONT STYLE="letter-spacing: 1pt"> </FONT>shall include no land in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>an
established participating area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for the objective formation for<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the well to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be Drilled thereon nor any land <FONT STYLE="letter-spacing: 0.55pt">
</FONT>included in a proposal therefor filed with the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Appropriate Agency nor <FONT STYLE="letter-spacing: 0.15pt">
</FONT>any <FONT STYLE="letter-spacing: 0.25pt"> </FONT>land <FONT STYLE="letter-spacing: 1pt"> </FONT>within an active, previously
designated Drilling Block for such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>formation. The Drilling<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Block shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be considered <FONT STYLE="letter-spacing: 0.6pt"> </FONT>active
for ninety <FONT STYLE="letter-spacing: 0.55pt"> </FONT>(90)<FONT STYLE="letter-spacing: 0.4pt"> </FONT>days after the designation<FONT STYLE="letter-spacing: 0.3pt">
</FONT>thereof <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and, if<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the actual Drilling
of a well<FONT STYLE="letter-spacing: 1.3pt"> </FONT>is commenced thereon within <FONT STYLE="letter-spacing: 0.95pt"> </FONT>such
period, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>until either:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(1) <FONT STYLE="letter-spacing: 0.4pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Completion of the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well, <FONT STYLE="letter-spacing: 0.45pt">
</FONT>if it <FONT STYLE="letter-spacing: 0.4pt"> </FONT>is<FONT STYLE="letter-spacing: 1.4pt"> </FONT>completed otherwise than
as <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a producer of<FONT STYLE="letter-spacing: 1.4pt"> </FONT>unitized substances in
Paying Quantities,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>either at its original<FONT STYLE="letter-spacing: 0.25pt"> </FONT>projected
depth <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or, if<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Deepening or Plugging<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Back operations<FONT STYLE="letter-spacing: 0.15pt"> </FONT>are <FONT STYLE="letter-spacing: 0.05pt"> </FONT>conducted,
at any other projected depth; <FONT STYLE="letter-spacing: 0.7pt"> </FONT>or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(2) <FONT STYLE="letter-spacing: 0.4pt">
</FONT>the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>filing with the Appropriate<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agency
of a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>proposal for the establishment or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>revision
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of a participating<FONT STYLE="letter-spacing: 0.45pt"> </FONT>area if<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the Completion of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>well results<FONT STYLE="letter-spacing: 0.45pt">
</FONT>in the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>filing <FONT STYLE="letter-spacing: 0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>proposal.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Basis<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of Participation. Each Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within
the<FONT STYLE="letter-spacing: 1pt"> </FONT>Drilling Block<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall be entitled to participate
in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Costs<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of Drilling the proposed well<FONT STYLE="letter-spacing: 0.3pt">
</FONT>on<FONT STYLE="letter-spacing: 0.3pt"> </FONT>an Acreage Basis but shall be<FONT STYLE="letter-spacing: 0.35pt"> </FONT>required
to do so only if it notifies the other<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties within the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Drilling Block of its willingness so to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate, as<FONT STYLE="letter-spacing: 0.4pt">
</FONT>hereinafter in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>this <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Article <FONT STYLE="letter-spacing: 0.6pt">
</FONT>9 provided.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Exclusion<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of Land<FONT STYLE="letter-spacing: 0.25pt"> </FONT>From Proposed<FONT STYLE="letter-spacing: 1pt"> </FONT>Drilling Block.
Within thirty<FONT STYLE="letter-spacing: 0.95pt"> </FONT>(30) days after<FONT STYLE="letter-spacing: 0.35pt"> </FONT>receipt of
such notice,<FONT STYLE="letter-spacing: 1pt"> </FONT>any part of the land included<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in
the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>proposed Drilling Block<FONT STYLE="letter-spacing: 0.55pt"> </FONT>may<FONT STYLE="letter-spacing: 0.95pt">
</FONT>be excluded therefrom at<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>Direction
of the Parties therein.<FONT STYLE="letter-spacing: 0.3pt"> </FONT>In such event the proposed Drilling Block,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>as reduced by the exclusion<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of such land, shall be established<FONT STYLE="letter-spacing: 0.6pt">
</FONT>as the Drilling<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Block. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>In the <FONT STYLE="letter-spacing: 0.55pt">
</FONT>absence of any such Direction, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>then, at the <FONT STYLE="letter-spacing: 0.7pt">
</FONT>expiration of<FONT STYLE="letter-spacing: 1.3pt"> </FONT>said <FONT STYLE="letter-spacing: 1.4pt"> </FONT>30-day <FONT STYLE="letter-spacing: 1.4pt">
</FONT>period, the <FONT STYLE="letter-spacing: 1pt"> </FONT>proposed Drilling<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Block
shall be established<FONT STYLE="letter-spacing: 0.95pt"> </FONT>as the Drilling Block.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Preliminary
Notice to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Join<FONT STYLE="letter-spacing: 0.25pt"> </FONT>in Drilling. Within<FONT STYLE="letter-spacing: 0.05pt">
</FONT>ten (10)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>days<FONT STYLE="letter-spacing: 1.4pt"> </FONT>after<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the establishment of the Drilling Block, each Party within such Drilling Block shall advise all other Parties therein whether
or not<FONT STYLE="letter-spacing: 1.45pt"> </FONT>it<FONT STYLE="letter-spacing: 1.4pt"> </FONT>wishes to participate<FONT STYLE="letter-spacing: 0.35pt">
</FONT>in Drilling<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposed well. If<FONT STYLE="letter-spacing: 0.45pt">
</FONT>any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Party fails to give such advice within <FONT STYLE="letter-spacing: 1.45pt">
</FONT>said <FONT STYLE="letter-spacing: 0.45pt"> </FONT>10-day <FONT STYLE="letter-spacing: 0.7pt"> </FONT>period, it shall be<FONT STYLE="letter-spacing: 1.3pt">
</FONT>deemed to have elected not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to participate in Drilling<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the proposed well.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>If all Parties within the<FONT STYLE="letter-spacing: 1pt">
</FONT>Drilling Block advise that they wish to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate in Drilling the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>proposed well, then Unit <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Operator shall Drill <FONT STYLE="letter-spacing: 0.55pt">
</FONT>the well for the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>account of all <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such
Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Notice of Election
to Proceed. Unless all Parties within the <FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilling Block <FONT STYLE="letter-spacing: 0.3pt">
</FONT>agree to participate in Drilling such well, then, within fifteen (15)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>days after
expiration of the 10-day<FONT STYLE="letter-spacing: 1.3pt"> </FONT>period specified<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Subdivision D of this Section 9.2,<FONT STYLE="letter-spacing: 1pt"> </FONT>each Party<FONT STYLE="letter-spacing: 0.4pt">
</FONT>within the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilling Block<FONT STYLE="letter-spacing: 0.6pt"> </FONT>then desiring
to have the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>proposed well<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Drilled shall
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>give<FONT STYLE="letter-spacing: 1pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>all other Parties therein notice of its election <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>proceed with the Drilling of said well. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Failure to give<FONT STYLE="letter-spacing: 0.6pt">
</FONT>such<FONT STYLE="letter-spacing: 1pt"> </FONT>notice shall be deemed an election not to participate<FONT STYLE="letter-spacing: 0.3pt">
</FONT>in Drilling<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Subsequent<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Election. If<FONT STYLE="letter-spacing: 0.4pt"> </FONT>election to Drill <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the
proposed well is made, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>any Party within <FONT STYLE="letter-spacing: 1.3pt"> </FONT>the
Drilling Block<FONT STYLE="letter-spacing: 0.15pt"> </FONT>who had<FONT STYLE="letter-spacing: 0.95pt"> </FONT>not<FONT STYLE="letter-spacing: 0.7pt">
</FONT>previously elected <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate
therein<FONT STYLE="letter-spacing: 0.25pt"> </FONT>may<FONT STYLE="letter-spacing: 0.7pt"> </FONT>do so by notice given to all
other <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Parties within <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Drilling Block<FONT STYLE="letter-spacing: 0.55pt">
</FONT>at any time before<FONT STYLE="letter-spacing: 1pt"> </FONT>the well is spudded, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>in
which event <FONT STYLE="letter-spacing: 0.25pt"> </FONT>such Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>included <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the Drilling Party. However,
such Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.7pt"> </FONT>bound by<FONT STYLE="letter-spacing: 0.45pt">
</FONT>any and<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all Directions<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Approvals theretofore given<FONT STYLE="letter-spacing: 0.55pt"> </FONT>by the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Party<FONT STYLE="letter-spacing: 1.3pt"> </FONT>concerning the Drilling<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of
the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Effect of Election. If one<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>more,
but not all,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of the Parties within <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the
Drilling Block<FONT STYLE="letter-spacing: 0.4pt"> </FONT>elect to proceed<FONT STYLE="letter-spacing: 1.4pt"> </FONT>with <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Drilling of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the well, Unit <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Operator
shall Drill the well for the account <FONT STYLE="letter-spacing: 0.35pt"> </FONT>of such Party or Parties, who shall constitute
the Drilling Party, on<FONT STYLE="letter-spacing: 0.05pt"> </FONT>an Acreage Basis<FONT STYLE="letter-spacing: 0.95pt"> </FONT>among
themselves, or on such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>other <FONT STYLE="letter-spacing: 1pt"> </FONT>basis as said
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.35pt"> </FONT>may <FONT STYLE="letter-spacing: 0.05pt">
</FONT>specify.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">H. Rights<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Obligations of Drilling Party<FONT STYLE="letter-spacing: 1pt"> </FONT>and
Non-Drilling Party. Whenever an Exploratory Well<FONT STYLE="letter-spacing: 0.25pt"> </FONT>is<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Drilled<FONT STYLE="letter-spacing: 1.3pt"> </FONT>otherwise than for<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the account
of all Parties within the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Drilling Block involved, the provisions of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Article 12 shall be applicable<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">9.3 Attempted<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Completion. The attempted Completion of Exploratory <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Wells Drilled to <FONT STYLE="letter-spacing: 0.6pt">
</FONT>their projected <FONT STYLE="letter-spacing: 0.4pt"> </FONT>depths <FONT STYLE="letter-spacing: 0.95pt"> </FONT>shall be
governed by the following provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 1pt">
</FONT>Notice by Unit Operator. After<FONT STYLE="letter-spacing: 1.3pt"> </FONT>an Exploratory Well<FONT STYLE="letter-spacing: 0.45pt">
</FONT>has reached its<FONT STYLE="letter-spacing: 1pt"> </FONT>projected depth<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and
has been tested, logged, and logs<FONT STYLE="letter-spacing: 0.3pt"> </FONT>furnished to each <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Drilling Party,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>but before<FONT STYLE="letter-spacing: 1pt"> </FONT>production<FONT STYLE="letter-spacing: 0.25pt">
</FONT>pipe<FONT STYLE="letter-spacing: 1pt"> </FONT>has been set, Unit <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall give notice thereof to each <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Right <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to Attempt <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Completion. Each Drilling Party shall <FONT STYLE="letter-spacing: 0.35pt">
</FONT>have <FONT STYLE="letter-spacing: 1.3pt"> </FONT>the right <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to initiate a proposal
to attempt<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Completion of such well
and <FONT STYLE="letter-spacing: 0.4pt"> </FONT>also <FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be entitled to participate
in the Completion <FONT STYLE="letter-spacing: 1.3pt"> </FONT>attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">6</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February<FONT STYLE="letter-spacing: 0.6pt">
</FONT>1980 (Page 7<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Time and<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Manner<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Initiating Proposal. A<FONT STYLE="letter-spacing: 0.45pt"> </FONT>period of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>twenty-four
(24) hours <FONT STYLE="letter-spacing: 0.35pt"> </FONT>(exclusive of Saturdays,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Sundays,
and holidays) from and after receipt <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of the notice given pursuant<FONT STYLE="letter-spacing: 0.25pt">
</FONT>to Subdivision A<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>this Section 9.3<FONT STYLE="letter-spacing: 1pt">
</FONT>shall be<FONT STYLE="letter-spacing: 1pt"> </FONT>allowed within which <FONT STYLE="letter-spacing: 0.45pt"> </FONT>a Party<FONT STYLE="letter-spacing: 0.95pt">
</FONT>entitled to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>do<FONT STYLE="letter-spacing: 0.6pt"> </FONT>so<FONT STYLE="letter-spacing: 1pt">
</FONT>may initiate a proposal<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to Complete. Any<FONT STYLE="letter-spacing: 0.4pt">
</FONT>such proposal<FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>initiated
by giving notice thereof to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Unit Operator and<FONT STYLE="letter-spacing: 0.95pt">
</FONT>to each Drilling Party.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>If no such proposal is initiated within said<FONT STYLE="letter-spacing: 1.3pt">
</FONT>period<FONT STYLE="letter-spacing: 0.7pt"> </FONT>and no other proposal is initiated pursuant<FONT STYLE="letter-spacing: 0.55pt">
</FONT>to Article 11, Unit Operator shall<FONT STYLE="letter-spacing: 0.45pt"> </FONT>plug<FONT STYLE="letter-spacing: 1.3pt">
</FONT>and abandon<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the well<FONT STYLE="letter-spacing: 0.55pt"> </FONT>for the account
of the Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Election.<FONT STYLE="letter-spacing: 0.7pt">
</FONT>If a proposal to Complete is initiated, each Party entitled to participate in the Completion attempt shall <FONT STYLE="letter-spacing: 0.25pt">
</FONT>have a period of twenty-four (24)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>hours (exclusive of Saturdays, Sundays, and
holidays) from and after receipt of such proposal <FONT STYLE="letter-spacing: 0.15pt"> </FONT>within which to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>notify Unit Operator whether or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>not<FONT STYLE="letter-spacing: 0.4pt"> </FONT>it
elects<FONT STYLE="letter-spacing: 1.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate in the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Completion attempt. The failure of a Party to signify its election within said 24-hour period shall<FONT STYLE="letter-spacing: 0.35pt">
</FONT>be deemed an election not to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the Completion attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Effect of Election.
The Party or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.55pt"> </FONT>electing to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>participate in an attempt to Complete a well as above provided shall<FONT STYLE="letter-spacing: 0.45pt"> </FONT>constitute<FONT STYLE="letter-spacing: 0.55pt">
</FONT>the Completing Party<FONT STYLE="letter-spacing: 0.55pt"> </FONT>for such operation.<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Each Party who was<FONT STYLE="letter-spacing: 0.25pt"> </FONT>entitled<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>make such election but<FONT STYLE="letter-spacing: 1pt"> </FONT>failed to do so<FONT STYLE="letter-spacing: 0.4pt"> </FONT>as
above provided<FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall be a Non-Completing Party with respect<FONT STYLE="letter-spacing: 0.55pt">
</FONT>to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such operation.<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Such <FONT STYLE="letter-spacing: 0.05pt">
</FONT>operation shall be conducted by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.45pt">
</FONT>for the account of the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Party or Parties constituting the <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Completing Party, on an <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Acreage Basis <FONT STYLE="letter-spacing: 0.3pt"> </FONT>among
themselves, or <FONT STYLE="letter-spacing: 0.4pt"> </FONT>on <FONT STYLE="letter-spacing: 0.35pt"> </FONT>such other basis as
<FONT STYLE="letter-spacing: 1pt"> </FONT>the <FONT STYLE="letter-spacing: 1.4pt"> </FONT>Completing Party may specify. Such operation,
if successful, shall include Equipping<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the well for production.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Rights and Obligations<FONT STYLE="letter-spacing: 0.35pt">
</FONT>of Completing Party and<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Non-Completing Party. Upon the commencement<FONT STYLE="letter-spacing: 0.7pt">
</FONT>of a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Completion operation otherwise than<FONT STYLE="letter-spacing: 0.95pt">
</FONT>for the account of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Parties, the provisions of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Article 12 shall be applicable<FONT STYLE="letter-spacing: 0.55pt">
</FONT>to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Notice Prior<FONT STYLE="letter-spacing: 0.55pt">
</FONT>to Plugging. Before plugging and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>abandoning<FONT STYLE="letter-spacing: 0.45pt">
</FONT>any <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Exploratory<FONT STYLE="letter-spacing: 1pt"> </FONT>Well<FONT STYLE="letter-spacing: 1.4pt">
</FONT>which was Drilled to its <FONT STYLE="letter-spacing: 0.15pt"> </FONT>projected <FONT STYLE="letter-spacing: 0.4pt"> </FONT>depth
and not completed <FONT STYLE="letter-spacing: 1.4pt"> </FONT>as a producer of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>unitized
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>substances, Unit Operator shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>give<FONT STYLE="letter-spacing: 1pt">
</FONT>the notice specified <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in Section <FONT STYLE="letter-spacing: 0.3pt"> </FONT>11.1
A,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>unless every <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party entitled to<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the notice has consented to the plugging and abandonment of such well,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in<FONT STYLE="letter-spacing: 1.3pt">
</FONT>which<FONT STYLE="letter-spacing: 1.3pt"> </FONT>event Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator shall
plug and abandon the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>for<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the account of the Completing Party.<FONT STYLE="letter-spacing: 1pt"> </FONT>Upon the giving of such notice, the <FONT STYLE="letter-spacing: 0.35pt">
</FONT>provisions <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Article <FONT STYLE="letter-spacing: 0.6pt">
</FONT>11 shall apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 10</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>REQUIRED<FONT STYLE="letter-spacing: 0.95pt">
</FONT>WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.1 Definition.<FONT STYLE="letter-spacing: 0.95pt">
</FONT>For the purpose of this Article, a well<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall be deemed a Required Well if the
Drilling thereof<FONT STYLE="letter-spacing: 0.05pt"> </FONT>is<FONT STYLE="letter-spacing: 0.7pt"> </FONT>required<FONT STYLE="letter-spacing: 0.25pt">
</FONT>by a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>final<FONT STYLE="letter-spacing: 1.4pt"> </FONT>order of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Appropriate<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Agency. Such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>an<FONT STYLE="letter-spacing: 1.45pt">
</FONT>order shall be deemed final upon expiration of the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>time allowed for<FONT STYLE="letter-spacing: 0.35pt">
</FONT>appeal<FONT STYLE="letter-spacing: 0.55pt"> </FONT>therefrom<FONT STYLE="letter-spacing: 0.3pt"> </FONT>without the commencement
of appropriate appeal proceedings or, if such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proceedings are commenced<FONT STYLE="letter-spacing: 0.05pt">
</FONT>within said time, upon the final disposition<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of the appeal. <FONT STYLE="letter-spacing: 1.4pt">
</FONT>Whenever<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Unit Operator receives any such order, it shall promptly mail a copy
thereof to each Party. If any such<FONT STYLE="letter-spacing: 0.55pt"> </FONT>order is appealed, the Party appealing shall give
prompt notice<FONT STYLE="letter-spacing: 0.95pt"> </FONT>thereof to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Unit Operator and
to each of the other Parties, and, upon final<FONT STYLE="letter-spacing: 1.3pt"> </FONT>disposition of the appeal, <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Unit Operator shall<FONT STYLE="letter-spacing: 0.6pt"> </FONT>give each <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.6pt">
</FONT>prompt notice<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the result<FONT STYLE="letter-spacing: 1.3pt">
</FONT>thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.2 Election<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to Drill. Any Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>desiring to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Drill,
or to participate<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the Drilling of,<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a
Required Well shall give to Unit Operator notice<FONT STYLE="letter-spacing: 0.95pt"> </FONT>thereof within thirty (30) days after
the order requiring such<FONT STYLE="letter-spacing: 1pt"> </FONT>well becomes final or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within
such lesser<FONT STYLE="letter-spacing: 1.3pt"> </FONT>time as may be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>required to insure<FONT STYLE="letter-spacing: 0.55pt">
</FONT>compliance with such order. If such notice is<FONT STYLE="letter-spacing: 0.7pt"> </FONT>given <FONT STYLE="letter-spacing: 0.3pt">
</FONT>within <FONT STYLE="letter-spacing: 0.95pt"> </FONT>said period, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Operator shall Drill <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Required <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Well
for the account <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>or Parties giving such notice; provided, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>however, <FONT STYLE="letter-spacing: 0.7pt">
</FONT>if<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Required <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Well is<FONT STYLE="letter-spacing: 0.45pt">
</FONT>a<FONT STYLE="letter-spacing: 1pt"> </FONT>Development<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Well,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>it shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>not<FONT STYLE="letter-spacing: 0.45pt"> </FONT>be Drilled unless
it receives<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the Approval of the Parties within the participating area involved. All
rights and obligations<FONT STYLE="letter-spacing: 0.05pt"> </FONT>with respect <FONT STYLE="letter-spacing: 0.55pt"> </FONT>to
the ownership of such well, the operating rights therein, the Production therefrom, and the bearing of Costs incurred therein shall
be the same<FONT STYLE="letter-spacing: 1.3pt"> </FONT>as<FONT STYLE="letter-spacing: 0.45pt"> </FONT>if the well<FONT STYLE="letter-spacing: 0.3pt">
</FONT>had been Drilled under Article 8, if the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>same is a Development Well, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>or <FONT STYLE="letter-spacing: 0.4pt"> </FONT>under Article 9, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>if the same
is an Exploratory Well<FONT STYLE="letter-spacing: 1.3pt"> </FONT>or a Subsequent<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Test
Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.3 Alternatives
to<FONT STYLE="letter-spacing: 1pt"> </FONT>Drilling. If no<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Party elects to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Drill a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Required Well within<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>period<FONT STYLE="letter-spacing: 1.4pt"> </FONT>allowed for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>such election,
and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>if any of the following alternatives is<FONT STYLE="letter-spacing: 0.45pt"> </FONT>available,
the<FONT STYLE="letter-spacing: 1pt"> </FONT>first such alternative which<FONT STYLE="letter-spacing: 1.3pt"> </FONT>is available
shall be<FONT STYLE="letter-spacing: 0.55pt"> </FONT>followed:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Compensatory Royalties. If compensatory royalties may be paid in lieu of Drilling the well and <FONT STYLE="letter-spacing: 0.7pt">
</FONT>if payment<FONT STYLE="letter-spacing: 1.3pt"> </FONT>thereof receives, within<FONT STYLE="letter-spacing: 0.95pt"> </FONT>said
period, the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Approval of the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>Parties who
would <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be chargeable with the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.05pt">
</FONT>incurred in Drilling the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well if the <FONT STYLE="letter-spacing: 0.55pt">
</FONT>well <FONT STYLE="letter-spacing: 0.05pt"> </FONT>were <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Drilled as <FONT STYLE="letter-spacing: 0.15pt">
</FONT>provided in Section 10.4, Unit Operator shall pay<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such compensatory royalties
for the account of said Parties; or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Contraction. If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Drilling of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the
well<FONT STYLE="letter-spacing: 1.3pt"> </FONT>may be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>avoided, without other <FONT STYLE="letter-spacing: 0.3pt">
</FONT>penalty, by contraction of the Unit Area, Unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Operator shall<FONT STYLE="letter-spacing: 0.7pt">
</FONT>make a reasonable effort to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>effect such contraction; or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Termination. If<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Required Well
is a Subsequent Test Well, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.55pt">
</FONT>shall <FONT STYLE="letter-spacing: 1.4pt"> </FONT>join in termination of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit
Agreement in accordance<FONT STYLE="letter-spacing: 0.6pt"> </FONT>with <FONT STYLE="letter-spacing: 0.35pt"> </FONT>its provisions.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.4 Required Drilling.
If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>none<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of the foregoing alternatives is
available,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit Operator shall Drill the Required Well<FONT STYLE="letter-spacing: 1.3pt">
</FONT>under<FONT STYLE="letter-spacing: 0.95pt"> </FONT>whichever of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the following
provisions is applicable:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Development
Well.<FONT STYLE="letter-spacing: 0.95pt"> </FONT>If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Required Well is<FONT STYLE="letter-spacing: 0.4pt">
</FONT>a Development<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Well, it<FONT STYLE="letter-spacing: 0.55pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.55pt">
</FONT>be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Drilled by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit Operator for the
account of all Parties within the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>participating area in which the well<FONT STYLE="letter-spacing: 0.6pt">
</FONT>is<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Drilled;<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Exploratory<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Well.<FONT STYLE="letter-spacing: 0.95pt"> </FONT>If<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Required Well<FONT STYLE="letter-spacing: 0.6pt"> </FONT>is an Exploratory<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Well,<FONT STYLE="letter-spacing: 1pt">
</FONT>the Drilling Block<FONT STYLE="letter-spacing: 0.45pt"> </FONT>for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such well
shall consist<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of all<FONT STYLE="letter-spacing: 0.7pt"> forty</FONT> (40) acre<FONT STYLE="letter-spacing: 0.95pt">
</FONT>subdivisions and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>lots<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of the<FONT STYLE="letter-spacing: 1pt">
</FONT>Public Land Survey <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of which more than one-half <FONT STYLE="letter-spacing: 0.3pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the surface area <FONT STYLE="letter-spacing: 0.55pt"> </FONT>is within <FONT STYLE="letter-spacing: 1.3pt">
</FONT>a distance<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>2,640<FONT STYLE="letter-spacing: 1pt">
</FONT>feet<FONT STYLE="letter-spacing: 1.4pt"> </FONT>from<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>proposed bottom <FONT STYLE="letter-spacing: 0.15pt"> </FONT>hole location of such <FONT STYLE="letter-spacing: 0.05pt">
</FONT>well, but excluding therefrom<FONT STYLE="letter-spacing: 0.7pt"> </FONT>all lands <FONT STYLE="letter-spacing: 0.55pt">
</FONT>within any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>participating area <FONT STYLE="letter-spacing: 1pt"> </FONT>theretofore</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">7</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2<FONT STYLE="letter-spacing: 1.3pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February,<FONT STYLE="letter-spacing: 0.95pt">
</FONT>1980<FONT STYLE="letter-spacing: 0.15pt"> </FONT>(Page 8 Revised<FONT STYLE="letter-spacing: 0.95pt"> </FONT>1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">established for the pool or<FONT STYLE="letter-spacing: 0.35pt">
</FONT>zone to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>which the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well<FONT STYLE="letter-spacing: 0.7pt">
</FONT>is<FONT STYLE="letter-spacing: 0.25pt"> </FONT>to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>be Drilled. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Unit Operator shall <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Drill such well for the account of all<FONT STYLE="letter-spacing: 1pt">
</FONT>the Parties owning<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Committed Working Interests<FONT STYLE="letter-spacing: 1pt">
</FONT>within the Drilling Block, on an Acreage Basis among themselves; and no such <FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party
shall have the right <FONT STYLE="letter-spacing: 0.35pt"> </FONT>to elect not to participate in<FONT STYLE="letter-spacing: 1.3pt">
</FONT>the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>said <FONT STYLE="letter-spacing: 0.4pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 1pt">
</FONT>11</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>DEEPENING, PLUGGING BACK, AND ABANDONMENT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.1 Attempted
Deepening or Plugging Back. The<FONT STYLE="letter-spacing: 0.95pt"> </FONT>attempted Deepening or<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Plugging Back<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of wells not completed as<FONT STYLE="letter-spacing: 0.7pt"> </FONT>producers
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of unitized substances at their <FONT STYLE="letter-spacing: 0.05pt"> </FONT>original
projected<FONT STYLE="letter-spacing: 1.4pt"> </FONT>depths shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be governed <FONT STYLE="letter-spacing: 0.3pt">
</FONT>by the following <FONT STYLE="letter-spacing: 0.05pt"> </FONT>provisions <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>this Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>11.1 and by the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>provisions<FONT STYLE="letter-spacing: 0.05pt">
</FONT>of Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>11.2, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>unless <FONT STYLE="letter-spacing: 0.45pt">
</FONT>every <FONT STYLE="letter-spacing: 0.6pt"> Party</FONT> entitled to the notice provided for<FONT STYLE="letter-spacing: 0.05pt">
</FONT>in Subdivision A of this<FONT STYLE="letter-spacing: 1pt"> </FONT>Section 11.1 has consented to the plugging and abandonment<FONT STYLE="letter-spacing: 0.6pt">
</FONT>of such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>well:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Notice by Unit
Operator. Before abandoning any well which<FONT STYLE="letter-spacing: 1.3pt"> </FONT>has been<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Drilled to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>its<FONT STYLE="letter-spacing: 1pt"> </FONT>original projected <FONT STYLE="letter-spacing: 0.15pt">
</FONT>depth but not completed <FONT STYLE="letter-spacing: 0.95pt"> </FONT>as a producer <FONT STYLE="letter-spacing: 0.95pt">
</FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>unitized<FONT STYLE="letter-spacing: 0.3pt"> </FONT>substances, Unit <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Operator<FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall give notice of its<FONT STYLE="letter-spacing: 0.45pt"> </FONT>intention
to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>plug<FONT STYLE="letter-spacing: 0.45pt"> </FONT>and abandon such<FONT STYLE="letter-spacing: 1.4pt">
</FONT>well<FONT STYLE="letter-spacing: 0.35pt"> </FONT>to each Drilling Party and Non-Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Right to Initiate<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Proposal. Each<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Party
who<FONT STYLE="letter-spacing: 0.4pt"> </FONT>participated in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the Drilling of a<FONT STYLE="letter-spacing: 0.4pt">
</FONT>well<FONT STYLE="letter-spacing: 0.15pt"> </FONT>concerning which notice <FONT STYLE="letter-spacing: 0.05pt"> </FONT>is
g1ven<FONT STYLE="letter-spacing: 0.7pt"> </FONT>in accordance with <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Subdivision A
of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Section 11.1 and <FONT STYLE="letter-spacing: 0.55pt">
</FONT>any <FONT STYLE="letter-spacing: 0.25pt"> </FONT>other Party owning a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Committed
Working Interest in the tract of land on<FONT STYLE="letter-spacing: 0.35pt"> </FONT>which<FONT STYLE="letter-spacing: 1pt"> </FONT>the
well<FONT STYLE="letter-spacing: 0.4pt"> </FONT>is located may initiate a proposal to attempt to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Deepen or Plug Back such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well;<FONT STYLE="letter-spacing: 0.7pt"> </FONT>provided,
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>however, if the well<FONT STYLE="letter-spacing: 0.4pt"> </FONT>was Drilled as<FONT STYLE="letter-spacing: 0.4pt">
</FONT>a Development Well, a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>proposal <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to
Deepen <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or Plug <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Back may be<FONT STYLE="letter-spacing: 0.95pt">
</FONT>initiated<FONT STYLE="letter-spacing: 0.6pt"> </FONT>only by<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>owning a Committed<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Interest in the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>tract of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>land <FONT STYLE="letter-spacing: 0.55pt">
</FONT>on<FONT STYLE="letter-spacing: 1.3pt"> </FONT>which <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>well is located.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Right to Participate. In order to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>be entitled to<FONT STYLE="letter-spacing: 0.35pt">
</FONT>participate in a<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Deepening or Plugging<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Back
operation, a Party must <FONT STYLE="letter-spacing: 0.95pt"> </FONT>have <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>right <FONT STYLE="letter-spacing: 1.3pt"> </FONT>to initiate<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the same <FONT STYLE="letter-spacing: 0.7pt">
</FONT>or must own a Committed Working Interest in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the Drilling<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Block theretofore established for Drilling the well involved; if no Drilling Block was<FONT STYLE="letter-spacing: 0.95pt">
</FONT>theretofore established<FONT STYLE="letter-spacing: 0.4pt"> </FONT>for Drilling such <FONT STYLE="letter-spacing: 0.05pt">
</FONT>well, the Drilling<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Block<FONT STYLE="letter-spacing: 0.4pt"> </FONT>for<FONT STYLE="letter-spacing: 0.6pt">
</FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Deepening or Plugging<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Back
operation shall be established<FONT STYLE="letter-spacing: 0.25pt"> </FONT>automatically in accordance with the <FONT STYLE="letter-spacing: 0.45pt">
</FONT>provisions<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of Subdivision B<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of Section
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>10.4, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>which shall <FONT STYLE="letter-spacing: 1.45pt">
</FONT>be applicable hereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Time and Manner
of<FONT STYLE="letter-spacing: 1pt"> </FONT>Initiating Proposal. A period of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>twenty-four<FONT STYLE="letter-spacing: 0.45pt">
</FONT>(24)<FONT STYLE="letter-spacing: 0.6pt"> </FONT>hours <FONT STYLE="letter-spacing: 0.7pt"> </FONT>(exclusive of Saturdays,<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Sundays, and holidays) from<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>after
receipt <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the notice given pursuant<FONT STYLE="letter-spacing: 0.05pt">
</FONT>to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Subdivision A<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>this Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>11.1 shall be allowed <FONT STYLE="letter-spacing: 0.4pt"> </FONT>within<FONT STYLE="letter-spacing: 0.6pt">
</FONT>which <FONT STYLE="letter-spacing: 0.15pt"> </FONT>a Party entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 1pt">
</FONT>do so may initiate a proposal <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to Deepen or Plug <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Back. Any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>such proposal <FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>initiated by<FONT STYLE="letter-spacing: 0.55pt"> </FONT>giving <FONT STYLE="letter-spacing: 0.55pt"> </FONT>notice thereof
to Unit <FONT STYLE="letter-spacing: 1.3pt"> </FONT>Operator<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and to each Party<FONT STYLE="letter-spacing: 1.4pt">
</FONT>entitled to <FONT STYLE="letter-spacing: 0.25pt"> </FONT>participate in the proposed <FONT STYLE="letter-spacing: 0.7pt">
</FONT>operation. If no<FONT STYLE="letter-spacing: 1.45pt"> </FONT>such proposal is initiated<FONT STYLE="letter-spacing: 1.3pt">
</FONT>within said period, Unit Operator shall <FONT STYLE="letter-spacing: 1.45pt"> </FONT>plug <FONT STYLE="letter-spacing: 0.35pt">
</FONT>and abandon the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well for the account of the Completing Party<FONT STYLE="letter-spacing: 0.6pt">
</FONT>if a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Completion attempt was<FONT STYLE="letter-spacing: 0.95pt"> </FONT>made
or, if not, then<FONT STYLE="letter-spacing: 1.45pt"> </FONT>for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the account of the
Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Election.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>If a proposal <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to Deepen <FONT STYLE="letter-spacing: 0.55pt"> </FONT>or Plug
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Back a well is<FONT STYLE="letter-spacing: 1pt"> </FONT>initiated, each <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Party entitled<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to participate in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>operation<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proposed shall have <FONT STYLE="letter-spacing: 1pt">
</FONT>a period of forty-eight (48) hours (exclusive of Saturdays, Sundays, and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>holidays)
from and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>after receipt <FONT STYLE="letter-spacing: 0.35pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt">
</FONT>such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposal <FONT STYLE="letter-spacing: 0.35pt"> </FONT>within<FONT STYLE="letter-spacing: 0.6pt">
</FONT>which to notify Unit Operator whether or not it elects to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>participate in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the proposed operation. The<FONT STYLE="letter-spacing: 0.25pt"> </FONT>failure of a<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Party to signify<FONT STYLE="letter-spacing: 1.45pt"> </FONT>its<FONT STYLE="letter-spacing: 1pt"> </FONT>election within
said 48-hour period shall be deemed<FONT STYLE="letter-spacing: 1.45pt"> </FONT>an election<FONT STYLE="letter-spacing: 0.15pt">
</FONT>not to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the proposed
operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Effect of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Election. The Party or Parties<FONT STYLE="letter-spacing: 0.3pt">
</FONT>electing to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate in an<FONT STYLE="letter-spacing: 1pt"> </FONT>operation<FONT STYLE="letter-spacing: 0.15pt">
</FONT>to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Deepen or Plug Back a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>well as<FONT STYLE="letter-spacing: 0.15pt">
</FONT>above provided<FONT STYLE="letter-spacing: 1pt"> </FONT>shall constitute the Participating Party for such<FONT STYLE="letter-spacing: 0.95pt">
</FONT>operation. Each Party who was entitled<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to make <FONT STYLE="letter-spacing: 0.95pt">
</FONT>such <FONT STYLE="letter-spacing: 0.55pt"> </FONT>election<FONT STYLE="letter-spacing: 1.45pt"> </FONT>but <FONT STYLE="letter-spacing: 0.55pt">
</FONT>failed to<FONT STYLE="letter-spacing: 1.45pt"> </FONT>do so as <FONT STYLE="letter-spacing: 0.05pt"> </FONT>above <FONT STYLE="letter-spacing: 0.55pt">
</FONT>provided shall be<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a Non-Participating Party<FONT STYLE="letter-spacing: 0.4pt">
</FONT>with respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>operation.
Such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>operation shall be conducted <FONT STYLE="letter-spacing: 0.55pt"> </FONT>by<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Unit Operator for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the account of the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Party
or Parties constituting the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Participating Party, on<FONT STYLE="letter-spacing: 0.35pt">
</FONT>an<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Acreage Basis among themselves, subject, however, <FONT STYLE="letter-spacing: 0.4pt">
</FONT>to the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>provisions of Section 11.2 and Section 11.3. If the Party or Parties making<FONT STYLE="letter-spacing: 0.05pt">
</FONT>such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>election do<FONT STYLE="letter-spacing: 1.3pt"> </FONT>not proceed <FONT STYLE="letter-spacing: 0.4pt">
</FONT>with the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>operation,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Costs <FONT STYLE="letter-spacing: 0.4pt"> </FONT>incurred in plugging<FONT STYLE="letter-spacing: 1pt"> </FONT>and abandoning<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the well shall be<FONT STYLE="letter-spacing: 1.4pt"> </FONT>charged<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and borne
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>as <FONT STYLE="letter-spacing: 0.45pt"> </FONT>part of the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Costs <FONT STYLE="letter-spacing: 0.4pt"> </FONT>incurred<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in Drilling<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. <FONT STYLE="letter-spacing: 1pt">
</FONT>Rights and<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Obligations of Participating<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party<FONT STYLE="letter-spacing: 1pt"> </FONT>and Non-Participating Party. Upon the commencement<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Deepening<FONT STYLE="letter-spacing: 0.35pt"> </FONT>or Plugging<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Back operation otherwise<FONT STYLE="letter-spacing: 0.6pt"> </FONT>than for the account of all Parties entitled to participate
therein, the provisions of<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Article 12 shall be applicable to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.2 Deepening
or Plugging Back to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Participating Area. If a well<FONT STYLE="letter-spacing: 0.45pt">
</FONT>within the surface <FONT STYLE="letter-spacing: 0.25pt"> </FONT>boundaries of a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>participating
area <FONT STYLE="letter-spacing: 0.35pt"> </FONT>is to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Deepened <FONT STYLE="letter-spacing: 0.25pt"> </FONT>or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Plugged Back to<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>pool or zone<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for<FONT STYLE="letter-spacing: 0.95pt">
</FONT>which such participating area <FONT STYLE="letter-spacing: 0.3pt"> </FONT>was established, such operation, including<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Completion of such well, may<FONT STYLE="letter-spacing: 1pt"> </FONT>be conducted <FONT STYLE="letter-spacing: 0.15pt">
</FONT>only<FONT STYLE="letter-spacing: 1pt"> </FONT>if it receives the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Approval <FONT STYLE="letter-spacing: 0.95pt">
</FONT>of the Parties within<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such participating area, and <FONT STYLE="letter-spacing: 0.55pt">
</FONT>only <FONT STYLE="letter-spacing: 0.45pt"> </FONT>upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such terms and conditions
as may be specified<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in such Approval, and upon such<FONT STYLE="letter-spacing: 1.4pt">
</FONT>further<FONT STYLE="letter-spacing: 0.35pt"> </FONT>terms and conditions as may be agreed <FONT STYLE="letter-spacing: 1pt">
</FONT>to<FONT STYLE="letter-spacing: 1pt"> </FONT>by the Parties owning interests in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>well immediately prior to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the commencement<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>any such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Deepening<FONT STYLE="letter-spacing: 0.25pt">
</FONT>or Plugging<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Back operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.3 Conflicts.
If conflicting elections<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to attempt<FONT STYLE="letter-spacing: 0.25pt"> </FONT>to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Deepen or Plug Back<FONT STYLE="letter-spacing: 1.4pt"> </FONT>are made in accordance with the provisions of this <FONT STYLE="letter-spacing: 1.45pt">
</FONT>Article <FONT STYLE="letter-spacing: 1.4pt"> </FONT>11, preference shall be given <FONT STYLE="letter-spacing: 1.4pt"> </FONT>first
to Deepening. However, if<FONT STYLE="letter-spacing: 1.45pt"> </FONT>a Deepening attempt does not result in completion<FONT STYLE="letter-spacing: 0.25pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the well<FONT STYLE="letter-spacing: 0.6pt"> </FONT>as a<FONT STYLE="letter-spacing: 0.95pt">
</FONT>producer of unitized substances,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Unit Operator shall<FONT STYLE="letter-spacing: 0.7pt">
</FONT>again<FONT STYLE="letter-spacing: 0.45pt"> </FONT>give<FONT STYLE="letter-spacing: 1.3pt"> </FONT>notice<FONT STYLE="letter-spacing: 1.3pt">
</FONT>in accordance<FONT STYLE="letter-spacing: 0.45pt"> </FONT>with Subdivision A of Section<FONT STYLE="letter-spacing: 0.35pt">
</FONT>11.1 before plugging and abandoning<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.4<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Attempted Completion.<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Except as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>otherwise
provided in Section 11.2, the attempted Completion of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a well Deepened or Plugged Back<FONT STYLE="letter-spacing: 1.45pt">
</FONT>to the depth <FONT STYLE="letter-spacing: 1pt"> </FONT>projected <FONT STYLE="letter-spacing: 0.15pt"> </FONT>for such Deepening
or Plugging Back operation<FONT STYLE="letter-spacing: 1pt"> </FONT>shall be<FONT STYLE="letter-spacing: 1.4pt"> </FONT>governed
by<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the provisions of Section 9.3, unless every Participating Party has</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">8</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 0.4pt">
</FONT>UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 0.15pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 9<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Revised 1985)</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">consented to the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>plugging and abandonment of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>such<FONT STYLE="letter-spacing: 0.35pt"> </FONT>well,
in which event Unit<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Operator shall<FONT STYLE="letter-spacing: 1pt"> </FONT>plug and
abandon the well <FONT STYLE="letter-spacing: 0.7pt"> </FONT>for the account of the Participating Party.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.5 <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Abandonment of Producing Wells.<FONT STYLE="letter-spacing: 0.55pt"> </FONT>A well <FONT STYLE="letter-spacing: 0.95pt">
</FONT>completed as <FONT STYLE="letter-spacing: 0.3pt"> </FONT>a <FONT STYLE="letter-spacing: 0.35pt"> </FONT>producer<FONT STYLE="letter-spacing: 1pt">
</FONT>of unitized<FONT STYLE="letter-spacing: 0.3pt"> </FONT>substances within a participating area shall<FONT STYLE="letter-spacing: 0.05pt">
</FONT>be<FONT STYLE="letter-spacing: 0.55pt"> </FONT>abandoned for<FONT STYLE="letter-spacing: 1.45pt"> </FONT>plugging if<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>when abandonment thereof receives the Approval of the Parties within such
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participating area, subject, however, to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>provisions of Section 11.6. <FONT STYLE="letter-spacing: 0.45pt"> </FONT>The<FONT STYLE="letter-spacing: 0.35pt">
</FONT>abandonment of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a well<FONT STYLE="letter-spacing: 1.45pt"> </FONT>completed<FONT STYLE="letter-spacing: 0.55pt">
</FONT>as a producer<FONT STYLE="letter-spacing: 0.3pt"> </FONT>but <FONT STYLE="letter-spacing: 0.7pt"> </FONT>not included<FONT STYLE="letter-spacing: 0.55pt">
</FONT>in a participating area shall be governed by the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>following provisions:</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 1pt">
</FONT>Consent Required. Such <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well<FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall
not be<FONT STYLE="letter-spacing: 0.25pt"> </FONT>abandoned for<FONT STYLE="letter-spacing: 0.95pt"> </FONT>production from <FONT STYLE="letter-spacing: 0.35pt">
</FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>pool or zone<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in which it <FONT STYLE="letter-spacing: 0.25pt">
</FONT>is Completed, except with<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the consent of all <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Parties<FONT STYLE="letter-spacing: 1.45pt"> </FONT>then<FONT STYLE="letter-spacing: 0.95pt"> </FONT>owning the well.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Abandonment<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Procedure. If the <FONT STYLE="letter-spacing: 1.45pt"> </FONT>abandonment of such <FONT STYLE="letter-spacing: 1.45pt">
</FONT>well receives the Approval of the Parties who<FONT STYLE="letter-spacing: 1.3pt"> </FONT>own<FONT STYLE="letter-spacing: 1.45pt">
</FONT>the well but is not consented to by all such <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Parties, Unit Operator shall<FONT STYLE="letter-spacing: 0.05pt">
</FONT>give <FONT STYLE="letter-spacing: 0.35pt"> </FONT>notice thereof to<FONT STYLE="letter-spacing: 1pt"> </FONT>each <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Party, if<FONT STYLE="letter-spacing: 0.25pt"> </FONT>any, then<FONT STYLE="letter-spacing: 0.4pt"> </FONT>having an <FONT STYLE="letter-spacing: 0.05pt">
</FONT>interest in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>well who did <FONT STYLE="letter-spacing: 0.05pt">
</FONT>not<FONT STYLE="letter-spacing: 1.4pt"> </FONT>join in such <FONT STYLE="letter-spacing: 1pt"> </FONT>Approval. Any such
non-joining Party who objects to abandonment of the well<FONT STYLE="letter-spacing: 1.45pt"> </FONT>(herein<FONT STYLE="letter-spacing: 0.15pt">
</FONT>called Non-Abandoning Party)<FONT STYLE="letter-spacing: 0.05pt"> </FONT>may <FONT STYLE="letter-spacing: 0.45pt"> </FONT>give
notice thereof to all <FONT STYLE="letter-spacing: 0.05pt"> </FONT>other Parties<FONT STYLE="letter-spacing: 1.4pt"> </FONT>(herein<FONT STYLE="letter-spacing: 0.35pt">
</FONT>called Abandoning Parties)<FONT STYLE="letter-spacing: 0.3pt"> </FONT>then<FONT STYLE="letter-spacing: 0.35pt"> </FONT>having
interests in the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>well, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>provided such <FONT STYLE="letter-spacing: 1pt">
</FONT>no lice<FONT STYLE="letter-spacing: 1.45pt"> </FONT>is given within thirty (30) days after<FONT STYLE="letter-spacing: 0.35pt">
</FONT>receipt of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the notice given<FONT STYLE="letter-spacing: 0.7pt"> </FONT>by Unit
Operator. If<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such objection<FONT STYLE="letter-spacing: 0.55pt"> </FONT>is<FONT STYLE="letter-spacing: 1.4pt">
</FONT>so<FONT STYLE="letter-spacing: 0.05pt"> </FONT>made,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the Non-Abandoning Party
or Parties shall forthwith<FONT STYLE="letter-spacing: 0.4pt"> </FONT>pay to the Abandoning Parties their respective shares of<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the Salvage Value of the well. Upon the making of such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>payment, the Abandoning
Parties<FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>deemed to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>have<FONT STYLE="letter-spacing: 0.05pt"> </FONT>relinquished<FONT STYLE="letter-spacing: 1.4pt">
</FONT>to the Non-Abandoning Party or Parties all <FONT STYLE="letter-spacing: 0.4pt"> </FONT>their<FONT STYLE="letter-spacing: 0.4pt">
</FONT>operating rights and working interest in the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>well, but <FONT STYLE="letter-spacing: 0.3pt">
</FONT>only <FONT STYLE="letter-spacing: 0.35pt"> </FONT>with respect<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>pool or zone in which it<FONT STYLE="letter-spacing: 1.4pt"> </FONT>is then<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Completed, and all their<FONT STYLE="letter-spacing: 0.05pt"> </FONT>interest in the materials and <FONT STYLE="letter-spacing: 0.95pt">
</FONT>equipment<FONT STYLE="letter-spacing: 0.45pt"> </FONT>in or pertaining<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 1.4pt">
</FONT>the well. <FONT STYLE="letter-spacing: 0.55pt"> </FONT>If there<FONT STYLE="letter-spacing: 0.3pt"> </FONT>is more than<FONT STYLE="letter-spacing: 0.25pt">
</FONT>one <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Non-Abandoning Party, the interests so relinquished shall be owned by the
Non-Abandoning Parties<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in the proportions which <FONT STYLE="letter-spacing: 1pt">
</FONT>their respective interests<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the
well<FONT STYLE="letter-spacing: 0.05pt"> </FONT>bear to the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>total of <FONT STYLE="letter-spacing: 0.25pt">
</FONT>their interests therein immediately prior <FONT STYLE="letter-spacing: 1.3pt"> </FONT>to such <FONT STYLE="letter-spacing: 0.45pt">
r</FONT>elinquishment.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Rights and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Obligations of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Non-Abandoning
Party. <FONT STYLE="letter-spacing: 0.55pt"> </FONT>After the relinquishment above provided<FONT STYLE="letter-spacing: 0.55pt">
</FONT>for, such <FONT STYLE="letter-spacing: 1pt"> </FONT>well shall be operated by Unit<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Operator
for the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>account of the Non-Abandoning Party or Parties,<FONT STYLE="letter-spacing: 0.7pt">
</FONT>who shall own all <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Production<FONT STYLE="letter-spacing: 0.35pt"> </FONT>therefrom<FONT STYLE="letter-spacing: 0.7pt">
</FONT>and <FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall bear all Costs, Lease Burdens, and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>other burdens thereafter <FONT STYLE="letter-spacing: 0.05pt"> </FONT>incurred<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in
operating<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the well <FONT STYLE="letter-spacing: 1.4pt"> </FONT>and plugging it when
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>abandoned (unless the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>well is<FONT STYLE="letter-spacing: 0.95pt">
</FONT>taken over for Deepening or<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Plugging Back <FONT STYLE="letter-spacing: 0.25pt">
</FONT>as<FONT STYLE="letter-spacing: 1.45pt"> </FONT>hereinafter provided) and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>also
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Costs<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.95pt">
</FONT>any additional<FONT STYLE="letter-spacing: 0.55pt"> </FONT>tankage, flow <FONT STYLE="letter-spacing: 0.3pt"> </FONT>lines,
or other<FONT STYLE="letter-spacing: 1.3pt"> </FONT>facilities needed to measure separately the unitized substances<FONT STYLE="letter-spacing: 0.05pt">
</FONT>produced from the well. Costs shall include an overhead charge computed at the highest<FONT STYLE="letter-spacing: 1.4pt">
</FONT>per well rate<FONT STYLE="letter-spacing: 1.3pt"> </FONT>applicable to <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>operation<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of a single producing well in
accordance with Exhibit<FONT STYLE="letter-spacing: 0.6pt"> </FONT>1, if<FONT STYLE="letter-spacing: 1pt"> </FONT>such <FONT STYLE="letter-spacing: 1.45pt">
</FONT>rate<FONT STYLE="letter-spacing: 0.55pt"> </FONT>is provided.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Option to Repurchase<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Materials. If a <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well taken over <FONT STYLE="letter-spacing: 1.45pt"> </FONT>by
the Non-Abandoning Party or Parties as above provided is abandoned for plugging within six (6) months<FONT STYLE="letter-spacing: 0.05pt">
</FONT>after relinquishment <FONT STYLE="letter-spacing: 0.05pt"> </FONT>by the Abandoning Parties<FONT STYLE="letter-spacing: 0.35pt">
</FONT>of their<FONT STYLE="letter-spacing: 0.25pt"> </FONT>interests therein, each Abandoning Party shall have the <FONT STYLE="letter-spacing: 0.45pt">
</FONT>right at its option<FONT STYLE="letter-spacing: 0.7pt"> </FONT>to repurchase<FONT STYLE="letter-spacing: 0.3pt"> </FONT>that<FONT STYLE="letter-spacing: 1.45pt">
</FONT>portion of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the materials and equipment<FONT STYLE="letter-spacing: 0.05pt"> </FONT>salvaged<FONT STYLE="letter-spacing: 0.4pt">
</FONT>from <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the well <FONT STYLE="letter-spacing: 0.45pt"> </FONT>which<FONT STYLE="letter-spacing: 0.05pt">
</FONT>is equal to <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the interest relinquished by it to the <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Non-Abandoning Party or <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Parties, at the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>value previously fixed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>therefor. Said option may<FONT STYLE="letter-spacing: 0.05pt">
</FONT>be exercised only<FONT STYLE="letter-spacing: 0.4pt"> </FONT>by notice given to<FONT STYLE="letter-spacing: 1pt"> </FONT>Unit
Operator and to the Non-Abandoning Party or Parties<FONT STYLE="letter-spacing: 1.4pt"> </FONT>within<FONT STYLE="letter-spacing: 0.35pt">
</FONT>fifteen (15) days after receipt of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>notice
given by Unit<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.45pt"> </FONT>pursuant to<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Section 11.6.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.6 <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Deepening<FONT STYLE="letter-spacing: 1pt"> </FONT>or Plugging Back Abandoned Producing Wells. Before plugging<FONT STYLE="letter-spacing: 1pt">
</FONT>any well authorized for <FONT STYLE="letter-spacing: 0.45pt"> </FONT>abandonment pursuant to Section<FONT STYLE="letter-spacing: 1.3pt">
</FONT>11.5, Unit Operator<FONT STYLE="letter-spacing: 0.55pt"> </FONT>shall give notice to <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Party or Parties owning Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working Interests in the tract of<FONT STYLE="letter-spacing: 0.25pt">
</FONT>land upon <FONT STYLE="letter-spacing: 0.4pt"> </FONT>which<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the well is located,<FONT STYLE="letter-spacing: 0.7pt">
</FONT>which Parties, for<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the further purposes of<FONT STYLE="letter-spacing: 0.25pt">
</FONT>this Section 11.6, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall constitute the <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Parties entitled to initiate<FONT STYLE="letter-spacing: 0.6pt"> </FONT>and participate<FONT STYLE="letter-spacing: 0.05pt">
</FONT>in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a proposed Deepening or Plugging<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Back
operation.<FONT STYLE="letter-spacing: 1pt"> </FONT>Within ten (10) days<FONT STYLE="letter-spacing: 0.4pt"> </FONT>after receipt
of said <FONT STYLE="letter-spacing: 0.15pt"> </FONT>notice,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>any such Party desiring<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the Deepening or <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Plugging Back <FONT STYLE="letter-spacing: 1.45pt"> </FONT>of
such well <FONT STYLE="letter-spacing: 0.95pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.95pt"> </FONT>give notice thereof to<FONT STYLE="letter-spacing: 1pt">
</FONT>Unit Operator and to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>each <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.25pt">
</FONT>entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to participate in the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>proposed
operation; and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>all the provisions of Subdivisions E, F, and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>G<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of Section<FONT STYLE="letter-spacing: 0.05pt"> </FONT>11.1 shall<FONT STYLE="letter-spacing: 0.4pt">
</FONT>apply in the same manner as if<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>proposed
Deepening or Plugging Back <FONT STYLE="letter-spacing: 0.3pt"> </FONT>were a proposal for the Drilling of an Exploratory Well,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>subject,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>however, to the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>provisions
of Section<FONT STYLE="letter-spacing: 0.05pt"> </FONT>11.2 and Section 11.3. If<FONT STYLE="letter-spacing: 0.7pt"> </FONT>no
Party gives <FONT STYLE="letter-spacing: 0.55pt"> </FONT>notice <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.05pt">
</FONT>desire<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to Deepen or<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Plug<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Back such <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well within said <FONT STYLE="letter-spacing: 0.7pt"> </FONT>period
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>often (<FONT STYLE="letter-spacing: 0.05pt"> </FONT>10)<FONT STYLE="letter-spacing: 0.3pt">
</FONT>day. or if<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such notice is given<FONT STYLE="letter-spacing: 0.25pt"> </FONT>but
no party elects to proceed<FONT STYLE="letter-spacing: 0.35pt"> </FONT>with the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Deepening
or Plugging Back of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the well within<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the
time<FONT STYLE="letter-spacing: 0.25pt"> </FONT>specified therefor, Unit Operator<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.35pt">
</FONT>plug and abandon the well <FONT STYLE="letter-spacing: 0.55pt"> </FONT>for the <FONT STYLE="letter-spacing: 1pt"> </FONT>account<FONT STYLE="letter-spacing: 0.7pt">
</FONT>of the Party or <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Parties owning the well.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 12</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RIGHTS<FONT STYLE="letter-spacing: 0.4pt">
</FONT>AND OBLIGATIONS<FONT STYLE="letter-spacing: 0.35pt"> </FONT>OF DRILLING PARTY AND<FONT STYLE="letter-spacing: 0.55pt"> </FONT>NON-DRILLING
PARTY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.1 Use<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Terms. As<FONT STYLE="letter-spacing: 0.6pt"> </FONT>used in this Article,
the terms &quot;Drilling Party&quot; and &quot;Non-Drilling Party&quot; are to <FONT STYLE="letter-spacing: 0.6pt"> </FONT>be <FONT STYLE="letter-spacing: 0.3pt">
</FONT>understood as <FONT STYLE="letter-spacing: 0.6pt"> </FONT>including<FONT STYLE="letter-spacing: 0.45pt"> </FONT>&quot;Completing
Party&quot;<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and <FONT STYLE="letter-spacing: 1.45pt"> </FONT>&quot;Non-Completing Party&quot;
and &quot;Participating Party&quot; and &quot;Non-Participating Party&quot;, respectively,<FONT STYLE="letter-spacing: 0.45pt">
</FONT>as such terms are <FONT STYLE="letter-spacing: 1.3pt"> </FONT>used in <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Articles<FONT STYLE="letter-spacing: 0.3pt">
</FONT>8, 9, and <FONT STYLE="letter-spacing: 1.4pt"> </FONT>11.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.2 <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Scope of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Article. The rights and obligations of the Drilling Party and Non-Drilling
Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>with respect<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>any<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Drilling, Deepening, Plugging<FONT STYLE="letter-spacing: 1pt"> </FONT>Back,
or Completion operation conducted otherwise<FONT STYLE="letter-spacing: 0.45pt"> </FONT>than for <FONT STYLE="letter-spacing: 1.4pt">
</FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>account of all Parties entitled to participate therein shall be governed
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>by the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>succeeding provisions<FONT STYLE="letter-spacing: 0.05pt">
</FONT>of this Article 12.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.3 Relinquishment<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of<FONT STYLE="letter-spacing: 1pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.15pt"> </FONT>by Non-Drilling Party.<FONT STYLE="letter-spacing: 0.6pt">
</FONT>When any Drilling,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Deepening, Plugging Back, or Completion<FONT STYLE="letter-spacing: 0.95pt">
</FONT>operation<FONT STYLE="letter-spacing: 1pt"> </FONT>is<FONT STYLE="letter-spacing: 1.4pt"> </FONT>conducted otherwise than
for <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>account of<FONT STYLE="letter-spacing: 1.4pt">
</FONT>all Parties entitled<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to participate therein, each <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Non-Drilling Party, upon <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the commencement of such operation, shall <FONT STYLE="letter-spacing: 0.05pt">
</FONT>be deemed to <FONT STYLE="letter-spacing: 0.35pt"> </FONT>have relinquished to the Drilling<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Party, and the Drilling<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Party shall<FONT STYLE="letter-spacing: 0.7pt"> </FONT>own,
all <FONT STYLE="letter-spacing: 0.6pt"> </FONT>such Non-</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">9</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)'</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page<FONT STYLE="letter-spacing: 0.55pt">
</FONT>10<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Drilling<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Party's<FONT STYLE="letter-spacing: 0.7pt"> </FONT>operating<FONT STYLE="letter-spacing: 0.7pt"> </FONT>rights and working<FONT STYLE="letter-spacing: 0.35pt">
i</FONT>nterest<FONT STYLE="letter-spacing: 0.45pt"> </FONT>in and to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the well with
respect to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>which such operation was<FONT STYLE="letter-spacing: 0.35pt"> </FONT>conducted.
In<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the case of a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Deepening or Plugging Back
operation, if a Non-Drilling Party in such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>operation<FONT STYLE="letter-spacing: 1.4pt">
</FONT>owned an<FONT STYLE="letter-spacing: 1.3pt"> </FONT>interest<FONT STYLE="letter-spacing: 0.25pt"> </FONT>in the<FONT STYLE="letter-spacing: 0.4pt">
</FONT>well immediately<FONT STYLE="letter-spacing: 0.45pt"> </FONT>prior to the Deepening or Plugging Back, then<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the Drilling Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>that<FONT STYLE="letter-spacing: 0.05pt">
</FONT>operation<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall pay to such Non-Drilling Party its share of the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Salvage Value of the well, such payment to be<FONT STYLE="letter-spacing: 0.4pt"> </FONT>made at the time the well<FONT STYLE="letter-spacing: 1.45pt">
</FONT>is<FONT STYLE="letter-spacing: 0.4pt"> </FONT>taken over by<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the Drilling Party
for Deepening<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Plugging Back.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.4 Reversion
of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Relinquished Interest. If, as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a<FONT STYLE="letter-spacing: 0.4pt">
</FONT>result of any<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Drilling, Deepening, Plugging<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Back, or Completion operation conducted<FONT STYLE="letter-spacing: 0.25pt"> </FONT>otherwise than for the account<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of all<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Parties entitled to<FONT STYLE="letter-spacing: 1pt"> </FONT>participate
therein, a well is completed<FONT STYLE="letter-spacing: 0.25pt"> </FONT>as<FONT STYLE="letter-spacing: 0.4pt"> a pr</FONT>oducer
of unitized substances<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>is<FONT STYLE="letter-spacing: 0.05pt">
</FONT>a<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Development Well<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>results in the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>establishment or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>enlargement
of a participating area to include such well<FONT STYLE="letter-spacing: 0.35pt"> </FONT>and if, by reason thereof, there <FONT STYLE="letter-spacing: 0.6pt">
is in</FONT>cluded in such participating area <FONT STYLE="letter-spacing: 0.35pt"> </FONT>any land <FONT STYLE="letter-spacing: 0.05pt">
</FONT>within the Drilling Block in which<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a Non-Drilling Party owns a<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Committed Working Interest, then the operating rights and working interest relinquished by such<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Non-Drilling Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall revert to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>it
at such time as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proceeds<FONT STYLE="letter-spacing: 0.4pt">
</FONT>or market<FONT STYLE="letter-spacing: 0.05pt"> </FONT>value of that portion of the Production obtained from <FONT STYLE="letter-spacing: 0.05pt">
t</FONT>he well<FONT STYLE="letter-spacing: 0.35pt"> </FONT>after such relinquishment which is allocated <FONT STYLE="letter-spacing: 0.7pt">
</FONT>to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>acreage of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such Non-Drilling Party in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>participating<FONT STYLE="letter-spacing: 0.45pt"> </FONT>area involved (after <FONT STYLE="letter-spacing: 0.25pt"> </FONT>deducting
from such <FONT STYLE="letter-spacing: 0.6pt"> </FONT>proceeds or market<FONT STYLE="letter-spacing: 0.05pt"> </FONT>value all
Lease <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Burden and all taxes upon<FONT STYLE="letter-spacing: 1.45pt"> </FONT>or measured
by<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Production that are payable up to such <FONT STYLE="letter-spacing: 0.7pt"> </FONT>time
on said portion of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Production from such <FONT STYLE="letter-spacing: 0.25pt"> </FONT>well)
shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>equal the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>total <FONT STYLE="letter-spacing: 0.4pt">
</FONT>of the following:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. 100% of that
portion of the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Costs incurred<FONT STYLE="letter-spacing: 0.45pt"> </FONT>in Equipping
the well and in operating the well after such relinquishment, and up<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to such time, that
would<FONT STYLE="letter-spacing: 1pt"> </FONT>have been charged to such Non-Drilling Party had <FONT STYLE="letter-spacing: 0.4pt">
</FONT>the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well <FONT STYLE="letter-spacing: 0.4pt"> </FONT>been Drilled, <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Deepened, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Plugged Back, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or Completed
and Equipped for the account <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all Parties
e<FONT STYLE="letter-spacing: 0.35pt">n</FONT>titled to participate<FONT STYLE="letter-spacing: 0.4pt"> </FONT>therein.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <U> 300</U>%
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of that<FONT STYLE="letter-spacing: 0.7pt"> </FONT>portion of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.15pt"> </FONT>incurred in Drilling,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Deepening,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Plugging<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Back, <FONT STYLE="letter-spacing: 0.55pt">
</FONT>or Completing<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the well that would have <FONT STYLE="letter-spacing: 0.25pt">
</FONT>been<FONT STYLE="letter-spacing: 1.3pt"> </FONT>charged to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such Non-Drilling
Party had the well<FONT STYLE="letter-spacing: 1.4pt"> </FONT>been Drilled, Deepened, Plugged back, or<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Completed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Equipped for the account
of all Parties entitled to<FONT STYLE="letter-spacing: 1.3pt"> </FONT>participate therein.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">However, if a<FONT STYLE="letter-spacing: 1pt">
</FONT>Deepening or Plugging <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Back operation is involved, then <FONT STYLE="letter-spacing: 0.3pt">
</FONT>(1) <FONT STYLE="letter-spacing: 0.35pt"> </FONT>any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>payment<FONT STYLE="letter-spacing: 0.6pt">
</FONT>made to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such Non-Drilling Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>as
its share of the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Salvage Value of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well
in accordance <FONT STYLE="letter-spacing: 0.05pt"> </FONT>with Section 12.3 shall be added to and deemed <FONT STYLE="letter-spacing: 0.25pt">
</FONT>part of the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Costs incurred in operating the well, for<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>purposes of Subdivision<FONT STYLE="letter-spacing: 0.4pt"> </FONT>A above,
and (2)<FONT STYLE="letter-spacing: 0.4pt"> </FONT>if such Non-Drilling Party<FONT STYLE="letter-spacing: 0.6pt"> </FONT>did not
participate in the initial<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Drilling of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
well, but the Drilling Party did participate therein, and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>if the interest<FONT STYLE="letter-spacing: 0.35pt">
</FONT>relinquished by such Non-Drilling Party upon the initial<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Drilling of the well
had not reverted to it<FONT STYLE="letter-spacing: 1.3pt"> </FONT>before<FONT STYLE="letter-spacing: 0.95pt"> </FONT>such Deepening
or Plugging Back, then, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>for the purposes of Subdivision<FONT STYLE="letter-spacing: 0.3pt">
</FONT>B above,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>(i) where a Plugging Back is involved, there <FONT STYLE="letter-spacing: 0.4pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.45pt"> </FONT>added to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>and deemed part
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.15pt">
</FONT>incurred<FONT STYLE="letter-spacing: 1pt"> </FONT>in such Plugging Back <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>then <FONT STYLE="letter-spacing: 1.4pt"> </FONT>unrecovered<FONT STYLE="letter-spacing: 1.3pt">
</FONT>portion <FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Costs incurred in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the initial<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Drilling
of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well down to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>pool or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>zone<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in which such well<FONT STYLE="letter-spacing: 0.95pt">
</FONT>is completed <FONT STYLE="letter-spacing: 0.45pt"> </FONT>as a producer of<FONT STYLE="letter-spacing: 1.45pt"> </FONT>unitized
substances as <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a <FONT STYLE="letter-spacing: 0.3pt"> </FONT>result of such <FONT STYLE="letter-spacing: 1.45pt">
</FONT>Plugging Back, and (ii) where a Deepening is involved, there shall be added to and deemed part <FONT STYLE="letter-spacing: 0.6pt">
</FONT>of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.15pt"> </FONT>incurred<FONT STYLE="letter-spacing: 1pt">
</FONT>in such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Deepening the then unrecovered portion <FONT STYLE="letter-spacing: 0.7pt">
</FONT>of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs incurred in the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>initial
Drilling of the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.5 Effect of
Reversion. From <FONT STYLE="letter-spacing: 0.55pt"> </FONT>and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>after <FONT STYLE="letter-spacing: 1.45pt">
</FONT>reversion to a Non-Drilling Party<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of its <FONT STYLE="letter-spacing: 0.35pt">
</FONT>relinquished interest in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>well,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>such Non-Drilling Party<FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall share, on an Acreage<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Basis,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in the ownership of the well, the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>operating rights and working interests<FONT STYLE="letter-spacing: 1.45pt"> </FONT>therein,<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>materials and equipment in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>or<FONT STYLE="letter-spacing: 0.55pt">
</FONT>pertaining to the well, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Production
therefrom, and the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Costs of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>operating<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.6 Rights and
Obligations of Drilling<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Party. The <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Drilling
Party for whom <FONT STYLE="letter-spacing: 0.25pt"> </FONT>a well <FONT STYLE="letter-spacing: 0.15pt"> </FONT>is Drilled, Deepened,
Plugged Back,<FONT STYLE="letter-spacing: 1pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Completed shall <FONT STYLE="letter-spacing: 0.55pt">
</FONT>pay and bear all Costs incurred therein<FONT STYLE="letter-spacing: 0.6pt"> </FONT>and shall own<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the well and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>materials<FONT STYLE="letter-spacing: 0.45pt">
</FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>equipment<FONT STYLE="letter-spacing: 0.7pt"> </FONT>in the <FONT STYLE="letter-spacing: 0.4pt">
</FONT>well or pertaining thereto, subject to reversion to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>each Non-Drilling Party
of its<FONT STYLE="letter-spacing: 0.95pt"> </FONT>relinquished interest<FONT STYLE="letter-spacing: 0.4pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>well.<FONT STYLE="letter-spacing: 0.45pt"> If</FONT> the well is a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Development Well or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>results in the establishment or<FONT STYLE="letter-spacing: 0.4pt">
</FONT>enlargement of a participating area <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to include <FONT STYLE="letter-spacing: 0.45pt">
</FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well, then, until <FONT STYLE="letter-spacing: 0.05pt"> </FONT>reversion
to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>a Non-Drilling<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Party <FONT STYLE="letter-spacing: 0.3pt">
</FONT>of its <FONT STYLE="letter-spacing: 1.3pt"> </FONT>relinquished interest, the Drilling<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Party shall own that portion of the Production obtained from the well<FONT STYLE="letter-spacing: 0.35pt"> </FONT>after<FONT STYLE="letter-spacing: 1.4pt">
</FONT>such relinquishment which is allocated to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all the acreage of such Non-Drilling
Party<FONT STYLE="letter-spacing: 0.6pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the participating area involved
and<FONT STYLE="letter-spacing: 1pt"> </FONT>shall pay and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>bear (a) that portion of
the Costs incurred in operating the well that <FONT STYLE="letter-spacing: 0.3pt"> </FONT>otherwise would be<FONT STYLE="letter-spacing: 0.45pt">
</FONT>chargeable to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>such Non-Drilling Party<FONT STYLE="letter-spacing: 0.95pt"> </FONT>and
(b) all<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Lease Burdens that <FONT STYLE="letter-spacing: 0.05pt"> </FONT>are<FONT STYLE="letter-spacing: 1.4pt">
</FONT>payable with respect to that portion of the Production from<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such<FONT STYLE="letter-spacing: 1.3pt">
</FONT>well<FONT STYLE="letter-spacing: 0.4pt"> </FONT>which is allocated to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the acreage
of such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Non-Drilling Party.<FONT STYLE="letter-spacing: 0.35pt"> If</FONT> the Drilling
Party<FONT STYLE="letter-spacing: 0.4pt"> </FONT>includes two or more Parties, the burdens imposed upon and<FONT STYLE="letter-spacing: 1.3pt">
</FONT>the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>benefits accruing to the Drilling Party shall be shared by such Parties
on<FONT STYLE="letter-spacing: 1.3pt"> </FONT>an<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Acreage<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Basis among themselves.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.7 Accounting
Due Non-Drilling Party. In <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>event <FONT STYLE="letter-spacing: 1.45pt">
</FONT>a relinquishment of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>interest by a Non Drilling Party occurs pursuant to <FONT STYLE="letter-spacing: 0.4pt">
</FONT>any provision <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of this Agreement with respect <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to any well and Production is<FONT STYLE="letter-spacing: 0.35pt"> </FONT>had from<FONT STYLE="letter-spacing: 0.35pt">
</FONT>such well,<FONT STYLE="letter-spacing: 1pt"> </FONT>Unit Operator shall furnish each<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Non-Drilling Party,<FONT STYLE="letter-spacing: 0.45pt"> </FONT>upon<FONT STYLE="letter-spacing: 1pt"> </FONT>its request,
all information referred to in Subdivision<FONT STYLE="letter-spacing: 1.3pt"> </FONT>F of Section <FONT STYLE="letter-spacing: 1.3pt">
</FONT>16.1 and, <FONT STYLE="letter-spacing: 1pt"> </FONT>in addition, the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>following:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. an<FONT STYLE="letter-spacing: 1.3pt">
</FONT>itemized statement of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Costs of the operation in which<FONT STYLE="letter-spacing: 1pt">
</FONT>the Non-Drilling Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>did not participate; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>until reversion occurs, a<FONT STYLE="letter-spacing: 0.35pt"> </FONT>monthly itemized statement<FONT STYLE="letter-spacing: 0.95pt">
</FONT>of the Costs incurred in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>operating said well, the quantity of Production<FONT STYLE="letter-spacing: 0.55pt">
</FONT>obtained<FONT STYLE="letter-spacing: 1.4pt"> </FONT>therefrom, the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>proceeds
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>received from the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>sale of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>such Production, and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Lease
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Burdens<FONT STYLE="letter-spacing: 0.6pt"> </FONT>paid <FONT STYLE="letter-spacing: 0.35pt">
</FONT>with <FONT STYLE="letter-spacing: 0.7pt"> </FONT>respect thereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.8 Stand-By<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Rig Time. Stand-by<FONT STYLE="letter-spacing: 0.6pt"> </FONT>time for the rig on<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a
well<FONT STYLE="letter-spacing: 0.7pt"> </FONT>for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the period<FONT STYLE="letter-spacing: 1.45pt">
</FONT>of time allowed for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the initiation of a proposal and for<FONT STYLE="letter-spacing: 1.45pt">
</FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>response <FONT STYLE="letter-spacing: 1pt"> </FONT>thereto shall be charged
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>borne <FONT STYLE="letter-spacing: 0.25pt">
</FONT>as <FONT STYLE="letter-spacing: 0.15pt"> </FONT>part <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Costs incurred in <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>operation<FONT STYLE="letter-spacing: 1.3pt">
</FONT>just <FONT STYLE="letter-spacing: 0.6pt"> </FONT>completed.<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Stand-by time subsequent<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to<FONT STYLE="letter-spacing: 1.3pt"> </FONT>said period of time shall be charged to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>and borne<FONT STYLE="letter-spacing: 1.4pt"> </FONT>as Costs incurred in the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proposed
operation,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>unless<FONT STYLE="letter-spacing: 0.05pt"> </FONT>no<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Party elected to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>participate therein.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">10</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 1.3pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, <FONT STYLE="letter-spacing: 0.55pt">
</FONT>1980 (Page<FONT STYLE="letter-spacing: 1.4pt"> 10</FONT>A Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.9 Subsequently<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Created Lease<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Burdens.<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Anything herein<FONT STYLE="letter-spacing: 0.55pt">
</FONT>to the contrary notwithstanding,<FONT STYLE="letter-spacing: 0.25pt"> </FONT>if, subsequent<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to the date of this<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Agreement, any Party shall create an<FONT STYLE="letter-spacing: 1pt">
</FONT>overriding royalty,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>production payment, net proceeds interest, carried<FONT STYLE="letter-spacing: 1.4pt">
</FONT>interest. or any <FONT STYLE="letter-spacing: 1pt"> </FONT>other interest out of its<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Committed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Working Interest<FONT STYLE="letter-spacing: 0.6pt"> </FONT>and at
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>any <FONT STYLE="letter-spacing: 0.95pt"> </FONT>time become <FONT STYLE="letter-spacing: 0.45pt">
</FONT>a Non-Drilling Party with respect to<FONT STYLE="letter-spacing: 1.45pt"> </FONT>any <FONT STYLE="letter-spacing: 0.55pt">
</FONT>operation conducted under this Agreement,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>then the Drilling Party entitled to
receive the share of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Production to <FONT STYLE="letter-spacing: 0.45pt"> </FONT>which
the Non-Drilling Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>would<FONT STYLE="letter-spacing: 1.4pt"> </FONT>otherwise be<FONT STYLE="letter-spacing: 0.15pt">
</FONT>entitled<FONT STYLE="letter-spacing: 1pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.95pt"> </FONT>receive the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>same free and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>clear of any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>burden, and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the Non-Drilling Party who<FONT STYLE="letter-spacing: 0.7pt">
</FONT>created such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>burden shall<FONT STYLE="letter-spacing: 0.25pt"> </FONT>hold the
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilling Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>harmless<FONT STYLE="letter-spacing: 0.05pt">
</FONT>with respect thereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">l0A <FONT STYLE="letter-spacing: 0.3pt">
</FONT>(The<FONT STYLE="letter-spacing: 0.35pt"> </FONT>next page<FONT STYLE="letter-spacing: 0.7pt"> </FONT>is<FONT STYLE="letter-spacing: 0.6pt">
</FONT>11)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">ROCKY MOUNTAIN
UNIT<FONT STYLE="letter-spacing: 1.3pt"> </FONT>OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Form 2<FONT STYLE="letter-spacing: 0.6pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">February. <FONT STYLE="letter-spacing: 0.35pt">
</FONT>1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>ARTICLE 13</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>ADJUSTMENT<FONT STYLE="letter-spacing: 0.3pt">
</FONT>ON<FONT STYLE="letter-spacing: 1.45pt"> </FONT>ESTABLISHMENT<FONT STYLE="letter-spacing: 0.4pt"> </FONT>OR<FONT STYLE="letter-spacing: 1.45pt">
</FONT>CHANGE<FONT STYLE="letter-spacing: 0.45pt"> </FONT>OF PARTICIPATING AREA</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.1 When Adjustment
l\lade. Whenever, in accordance with the Unit Agreement, a<FONT STYLE="letter-spacing: 0.7pt"> </FONT>participating area IS established,
or revised <FONT STYLE="letter-spacing: 0.4pt"> </FONT>by contraction<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>enlargement, and whenever two or more<FONT STYLE="letter-spacing: 1.4pt"> </FONT>participating areas are combined<FONT STYLE="letter-spacing: 1.4pt">
</FONT>(the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>participating area <FONT STYLE="letter-spacing: 0.3pt"> </FONT>resulting
from<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such establishment, revision, or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>combination
being<FONT STYLE="letter-spacing: 1pt"> </FONT>hereinafter referred to as<FONT STYLE="letter-spacing: 0.4pt"> </FONT>a &quot;resulting
area&quot;), an adjustment shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>made
in<FONT STYLE="letter-spacing: 0.35pt"> </FONT>accordance with the succeeding provisions of this Article 13, <FONT STYLE="letter-spacing: 0.95pt">
</FONT>as <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of the date on <FONT STYLE="letter-spacing: 0.7pt"> </FONT>which the <FONT STYLE="letter-spacing: 0.95pt">
</FONT>establishment revision or combination<FONT STYLE="letter-spacing: 0.15pt"> </FONT>that <FONT STYLE="letter-spacing: 0.4pt">
</FONT>creates such resulting area becomes effective, such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>date being hereinafter referred
to as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the &quot;effective date&quot; of such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>resulting
area. <FONT STYLE="letter-spacing: 0.4pt"> </FONT>For the purposes of this Article 13,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>all
Costs<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>usable well shall be<FONT STYLE="letter-spacing: 0.35pt">
</FONT>deemed to have been incurred on<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the date the well was Completed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.2 Definitions.<FONT STYLE="letter-spacing: 0.3pt">
</FONT>As used in this Article 13:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.05pt">
</FONT>&quot;Usable<FONT STYLE="letter-spacing: 0.55pt"> </FONT>well&quot; <FONT STYLE="letter-spacing: 0.15pt"> </FONT>within
a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>resulting<FONT STYLE="letter-spacing: 0.35pt"> </FONT>area <FONT STYLE="letter-spacing: 1pt">
</FONT>means<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>well<FONT STYLE="letter-spacing: 1.3pt">
</FONT>which <FONT STYLE="letter-spacing: 0.3pt"> </FONT>is either (1) completed in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>and
capable <FONT STYLE="letter-spacing: 1pt"> </FONT>of producing unitized <FONT STYLE="letter-spacing: 1.3pt"> </FONT>substances
from <FONT STYLE="letter-spacing: 0.55pt"> </FONT>a pool or zone<FONT STYLE="letter-spacing: 1.4pt"> </FONT>for which <FONT STYLE="letter-spacing: 0.7pt">
</FONT>the resulting<FONT STYLE="letter-spacing: 0.95pt"> </FONT>area was created <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or<FONT STYLE="letter-spacing: 0.35pt">
</FONT>(2) used as a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>disposal well,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>injection
well, or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>otherwise in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>connection <FONT STYLE="letter-spacing: 0.45pt">
</FONT>with the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>production of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>unitized substances
from such <FONT STYLE="letter-spacing: 0.45pt"> </FONT>resulting<FONT STYLE="letter-spacing: 0.35pt"> </FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>&quot;Intangible value&quot; of a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>usable well<FONT STYLE="letter-spacing: 0.3pt">
</FONT>within a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>resulting area <FONT STYLE="letter-spacing: 0.3pt"> </FONT>means the
amount of those Costs incurred<FONT STYLE="letter-spacing: 1pt"> </FONT>in Drilling,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Completing,
and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Equipping<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such <FONT STYLE="letter-spacing: 0.45pt">
</FONT>well, down to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>deepest <FONT STYLE="letter-spacing: 1.3pt"> </FONT>pool<FONT STYLE="letter-spacing: 0.55pt">
</FONT>or zone<FONT STYLE="letter-spacing: 0.95pt"> </FONT>for which such <FONT STYLE="letter-spacing: 0.25pt"> </FONT>resulting
area was<FONT STYLE="letter-spacing: 1pt"> </FONT>created,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>which contribute<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the production<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>unitized substances
therefrom and which are properly classified as <FONT STYLE="letter-spacing: 0.35pt"> </FONT>intangible<FONT STYLE="letter-spacing: 0.7pt">
</FONT>costs <FONT STYLE="letter-spacing: 0.25pt"> </FONT>in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>conformity with accounting
practices <FONT STYLE="letter-spacing: 0.05pt"> </FONT>generally accepted in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the industry,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>reduced <FONT STYLE="letter-spacing: 0.4pt"> </FONT>at the following rates for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>each
month <FONT STYLE="letter-spacing: 0.4pt"> </FONT>during any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>part of<FONT STYLE="letter-spacing: 0.45pt">
</FONT>which such well was<FONT STYLE="letter-spacing: 1.45pt"> </FONT>operated prior to the effective date <FONT STYLE="letter-spacing: 0.55pt">
</FONT>of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such <FONT STYLE="letter-spacing: 0.45pt"> </FONT>resulting<FONT STYLE="letter-spacing: 0.4pt">
</FONT>area:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(1) <FONT STYLE="letter-spacing: 0.35pt">
<U> .5 </U></FONT>% per month <FONT STYLE="letter-spacing: 0.6pt"> </FONT>for<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a cumulative
total of <U> 60 </U> months,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(2) <U>NONE</U>%<FONT STYLE="letter-spacing: 0.95pt"><I>
</I></FONT>per month <FONT STYLE="letter-spacing: 0.7pt"> </FONT>for each <FONT STYLE="letter-spacing: 0.45pt"> </FONT>month in
excess of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>said <FONT STYLE="letter-spacing: 0.45pt"> </FONT>cumulative<FONT STYLE="letter-spacing: 0.05pt">
</FONT>total.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. &quot;Tangible
property<FONT STYLE="letter-spacing: 0.4pt">&quot; </FONT>serving a<FONT STYLE="letter-spacing: 0.35pt"> </FONT>resulting area
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>means any kind<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of tangible property (whether
or not in or pertaining to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a well) which <FONT STYLE="letter-spacing: 0.7pt"> </FONT>has
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>been <FONT STYLE="letter-spacing: 0.35pt"> </FONT>acquired for use in or in connection
with the production<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>unitized <FONT STYLE="letter-spacing: 0.6pt">
</FONT>substances from such resulting area or any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>portion thereof, <FONT STYLE="letter-spacing: 1pt">
</FONT>and the cost of which <FONT STYLE="letter-spacing: 0.25pt"> </FONT>has been charged <FONT STYLE="letter-spacing: 1.4pt">
</FONT>as Costs <FONT STYLE="letter-spacing: 0.15pt"> </FONT>pursuant to this <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. <FONT STYLE="letter-spacing: 0.15pt">
</FONT>&quot;Value&quot; of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>tangible property means <FONT STYLE="letter-spacing: 0.95pt">
</FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>amount of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Costs incurred in
the construction or installation<FONT STYLE="letter-spacing: 1.45pt"> </FONT>thereof (except <FONT STYLE="letter-spacing: 0.55pt">
</FONT>installation costs <FONT STYLE="letter-spacing: 0.6pt"> </FONT>properly <FONT STYLE="letter-spacing: 1.45pt"> </FONT>classified
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>as part of the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>intangible costs incurred<FONT STYLE="letter-spacing: 1pt">
</FONT>in connection <FONT STYLE="letter-spacing: 1.4pt"> </FONT>with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>a<FONT STYLE="letter-spacing: 1.3pt">
</FONT>well), reduced, in the case of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>tangible<FONT STYLE="letter-spacing: 0.6pt"> </FONT>property
which <FONT STYLE="letter-spacing: 0.25pt"> </FONT>is<FONT STYLE="letter-spacing: 0.95pt"> </FONT>generally regarded as depreciable,
at the rate <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of <U> .50 </U>% per<FONT STYLE="letter-spacing: 1.45pt"> </FONT>month
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>each month during any part of which
such well has been operated<FONT STYLE="letter-spacing: 1pt"> </FONT>prior <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 1.4pt">
</FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>effective date of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such resulting
area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.3 Method<FONT STYLE="letter-spacing: 1.4pt">
</FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Adjustment on Establishment<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or
Enlargement. As<FONT STYLE="letter-spacing: 0.6pt"> </FONT>promptly <FONT STYLE="letter-spacing: 0.35pt"> </FONT>as reasonably
possible <FONT STYLE="letter-spacing: 0.15pt"> </FONT>after the effective date of<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>resulting<FONT STYLE="letter-spacing: 1.45pt"> </FONT>area created by the establishment
or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>enlargement of a participating area, and as of such effective<FONT STYLE="letter-spacing: 1.45pt">
</FONT>date, an adjustment shall<FONT STYLE="letter-spacing: 0.7pt"> </FONT>be made in accordance with <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the following <FONT STYLE="letter-spacing: 0.25pt"> </FONT>provisions, except <FONT STYLE="letter-spacing: 0.35pt"> </FONT>to
the extent otherwise<FONT STYLE="letter-spacing: 0.4pt"> </FONT>specified in Section <FONT STYLE="letter-spacing: 0.55pt"> </FONT>13.6:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. The<FONT STYLE="letter-spacing: 1.45pt">
</FONT>intangible value<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of each usable well within<FONT STYLE="letter-spacing: 0.45pt">
</FONT>such resulting area on<FONT STYLE="letter-spacing: 1pt"> </FONT>the effective date thereof<FONT STYLE="letter-spacing: 0.95pt">
</FONT>shall be credited to the Party or Parties owning such well immediately prior to such effective date, in<FONT STYLE="letter-spacing: 0.45pt">
</FONT>proportion to their respective interests in<FONT STYLE="letter-spacing: 0.25pt"> </FONT>such well<FONT STYLE="letter-spacing: 0.4pt">
</FONT>immediately prior to such effective date. The total amount so credited as the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>intangible
value of usable wells shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>charged to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>all
Parties within the resulting area on an Acreage Basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. The value of
each item of tangible<FONT STYLE="letter-spacing: 0.45pt"> </FONT>property serving the resulting area <FONT STYLE="letter-spacing: 0.3pt">
</FONT>on the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>effective<FONT STYLE="letter-spacing: 1.3pt"> </FONT>date thereof shall
be credited <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>Party<FONT STYLE="letter-spacing: 1.45pt">
</FONT>or <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Parties owning <FONT STYLE="letter-spacing: 1.45pt"> </FONT>such <FONT STYLE="letter-spacing: 1pt">
</FONT>item <FONT STYLE="letter-spacing: 1.3pt"> </FONT>immediately prior to such effective date, <FONT STYLE="letter-spacing: 0.95pt">
</FONT>in proportion to their<FONT STYLE="letter-spacing: 1.3pt"> </FONT>respective interests in<FONT STYLE="letter-spacing: 1.45pt">
</FONT>such <FONT STYLE="letter-spacing: 0.25pt"> </FONT>item <FONT STYLE="letter-spacing: 0.6pt"> </FONT>immediately prior to
such effective<FONT STYLE="letter-spacing: 1pt"> </FONT>date.<FONT STYLE="letter-spacing: 1.45pt"> </FONT>The total amount so credited
as the value of the<FONT STYLE="letter-spacing: 0.45pt"> </FONT>tangible property shall be charged to all Parties<FONT STYLE="letter-spacing: 0.4pt">
</FONT>within the<FONT STYLE="letter-spacing: 0.45pt"> </FONT>resulting<FONT STYLE="letter-spacing: 0.45pt"> </FONT>area on an
<FONT STYLE="letter-spacing: 0.15pt">A</FONT>creage Basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. If a<FONT STYLE="letter-spacing: 0.35pt">
</FONT>resulting area, on<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the effective date thereof, is served by any<FONT STYLE="letter-spacing: 1.45pt">
</FONT>tangible property <FONT STYLE="letter-spacing: 0.25pt"> </FONT>or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>usable well<FONT STYLE="letter-spacing: 1.3pt">
</FONT>which also serves another<FONT STYLE="letter-spacing: 0.7pt"> </FONT>participating area or<FONT STYLE="letter-spacing: 0.95pt">
</FONT>other participating<FONT STYLE="letter-spacing: 0.45pt"> </FONT>areas, the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>value
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of such tangible property and usable <FONT STYLE="letter-spacing: 0.4pt"> </FONT>well<FONT STYLE="letter-spacing: 1pt">
</FONT>(including<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the intangible<FONT STYLE="letter-spacing: 0.25pt"> </FONT>value
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>thereof shall be<FONT STYLE="letter-spacing: 0.35pt"> </FONT>determined<FONT STYLE="letter-spacing: 1.45pt">
</FONT>in accordance with Subdivision<FONT STYLE="letter-spacing: 0.35pt"> </FONT>D of Section 13.2,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>and such value shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>fairly
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>apportioned<FONT STYLE="letter-spacing: 0.25pt"> </FONT>between such resulting<FONT STYLE="letter-spacing: 0.25pt">
</FONT>area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>such other <FONT STYLE="letter-spacing: 0.6pt">
</FONT>participating area <FONT STYLE="letter-spacing: 0.55pt"> </FONT>or areas,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>provided
that <FONT STYLE="letter-spacing: 0.55pt"> </FONT>such apportionment receives the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Approval
of the Parties in<FONT STYLE="letter-spacing: 0.35pt"> </FONT>each participating area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>concerned.
That <FONT STYLE="letter-spacing: 0.4pt"> </FONT>portion of the value of such <FONT STYLE="letter-spacing: 0.7pt"> </FONT>tangible
property and usable well (including<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the intangible<FONT STYLE="letter-spacing: 1pt">
</FONT>value <FONT STYLE="letter-spacing: 1.4pt"> </FONT>thereof) which is so apportioned<FONT STYLE="letter-spacing: 0.25pt">
</FONT>to the resulting area<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall be included <FONT STYLE="letter-spacing: 0.45pt">
</FONT>in the adjustment made<FONT STYLE="letter-spacing: 0.95pt"> </FONT>as<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of the
effective date of such resulting area in <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the <FONT STYLE="letter-spacing: 0.4pt">
</FONT>same manner<FONT STYLE="letter-spacing: 1.4pt"> </FONT>as is the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>value of tangible
property serving<FONT STYLE="letter-spacing: 0.95pt"> </FONT>only the resulting area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. The<FONT STYLE="letter-spacing: 0.95pt">
</FONT>credits and<FONT STYLE="letter-spacing: 1pt"> </FONT>charges above<FONT STYLE="letter-spacing: 0.7pt"> </FONT>provided for<FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.25pt"> </FONT>made by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: 0.05pt">
</FONT>in such manner that an adjustment shall<FONT STYLE="letter-spacing: 1.3pt"> </FONT>be made<FONT STYLE="letter-spacing: 0.55pt">
</FONT>for the intangible value of usable wells separate and<FONT STYLE="letter-spacing: 1pt"> </FONT>apart from<FONT STYLE="letter-spacing: 0.35pt">
</FONT>an adjustment for the value<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of tangible property. On each<FONT STYLE="letter-spacing: 1.4pt">
</FONT>such adjustment, each<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party who<FONT STYLE="letter-spacing: 0.3pt"> </FONT>is
charged an amount in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>excess of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>amount credited to it shall pay to Unit <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Operator the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>amount<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such excess, <FONT STYLE="letter-spacing: 1.45pt">
</FONT>which shall be <FONT STYLE="letter-spacing: 0.05pt"> </FONT>considered <FONT STYLE="letter-spacing: 0.15pt"> </FONT>as Costs
<FONT STYLE="letter-spacing: 1pt"> </FONT>chargeable to <FONT STYLE="letter-spacing: 0.3pt"> </FONT>such <FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party <FONT STYLE="letter-spacing: 0.4pt"> </FONT>for <FONT STYLE="letter-spacing: 0.35pt"> </FONT>all purposes of this
Agreement; and such amount,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>when received <FONT STYLE="letter-spacing: 0.6pt"> </FONT>by
Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator, shall be distributed<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>credited to the Parties who,<FONT STYLE="letter-spacing: 0.45pt"> </FONT>in such adjustment, are<FONT STYLE="letter-spacing: 1.3pt">
</FONT>credited <FONT STYLE="letter-spacing: 1pt"> </FONT>with amounts in excess of the amounts charged to them <FONT STYLE="letter-spacing: 0.45pt">
</FONT>respectively.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.4 Method<FONT STYLE="letter-spacing: 1.45pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Adjustment on Contraction. As<FONT STYLE="letter-spacing: 0.35pt"> </FONT>promptly
as reasonably possible after<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the effective date of a contraction<FONT STYLE="letter-spacing: 0.6pt">
</FONT>of a<FONT STYLE="letter-spacing: 1.4pt"> </FONT>participating area, an adjustment<FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall
be made with each Party owning a</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">11</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 0.95pt">
</FONT>UNIT OPERATINGAGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 1.45pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February. 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Committed<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Working Interest in land <FONT STYLE="letter-spacing: 0.35pt"> </FONT>excluded from the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>participating<FONT STYLE="letter-spacing: 0.4pt"> </FONT>area by<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such <FONT STYLE="letter-spacing: 0.25pt">
</FONT>contraction (such Committed Working Interest being <FONT STYLE="letter-spacing: 0.35pt"> </FONT>hereinafter in <FONT STYLE="letter-spacing: 0.05pt">
</FONT>this <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Section referred to as &quot;excluded interest&quot;) in accordance with
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>following <FONT STYLE="letter-spacing: 0.6pt">
</FONT>provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>An adjustment<FONT STYLE="letter-spacing: 1.3pt"> </FONT>for intangibles shall be made in <FONT STYLE="letter-spacing: 0.05pt">
</FONT>accordance with <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Subdivision B of this Section 13.4, and a<FONT STYLE="letter-spacing: 0.05pt">
</FONT>separate adjustment for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>tangibles shall<FONT STYLE="letter-spacing: 0.25pt">
</FONT>be made<FONT STYLE="letter-spacing: 0.95pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>accordance with Subdivision
C<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this Section <FONT STYLE="letter-spacing: 0.55pt">
</FONT>13.4.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Such Party<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall be<FONT STYLE="letter-spacing: 1.3pt"> </FONT>credited <FONT STYLE="letter-spacing: 0.4pt">
</FONT>with <FONT STYLE="letter-spacing: 1pt"> </FONT>the sum of<FONT STYLE="letter-spacing: 1.3pt"> </FONT>(1) the <FONT STYLE="letter-spacing: 0.7pt">
</FONT>total amount theretofore charged against such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.3pt">
</FONT>with respect to its excluded <FONT STYLE="letter-spacing: 0.4pt"> </FONT>interest,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>pursuant
to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>provisions of<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Exhibit 1,<FONT STYLE="letter-spacing: 0.45pt"> </FONT>as intangible<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Costs incurred
in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the development<FONT STYLE="letter-spacing: 0.4pt"> </FONT>and <FONT STYLE="letter-spacing: 0.15pt">
</FONT>operation<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the participating<FONT STYLE="letter-spacing: 0.15pt">
</FONT>area prior <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the effective date of such contraction, plus (2) the total amount
charged against such Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>with respect to such <FONT STYLE="letter-spacing: 1.4pt">
</FONT>excluded interest as intangible value <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of usable wells in <FONT STYLE="letter-spacing: 0.55pt">
</FONT>any previous adjustment or adjustments made upon<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the establishment or revision
of such participating area.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Such Party shall be<FONT STYLE="letter-spacing: 1.3pt">
</FONT>charged <FONT STYLE="letter-spacing: 0.6pt"> </FONT>with the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>sum of (1) the
market<FONT STYLE="letter-spacing: 1.45pt"> </FONT>value of that<FONT STYLE="letter-spacing: 1.45pt"> </FONT>portion of the Production<FONT STYLE="letter-spacing: 1.4pt">
</FONT>from <FONT STYLE="letter-spacing: 0.7pt"> </FONT>such participating area which, prior<FONT STYLE="letter-spacing: 1.4pt">
</FONT>to the<FONT STYLE="letter-spacing: 1pt"> </FONT>effective date of such contraction, was<FONT STYLE="letter-spacing: 0.35pt">
</FONT>delivered to such Party with respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to such excluded interest,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>less<FONT STYLE="letter-spacing: 1pt"> </FONT>the amount of Lease<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Burdens and<FONT STYLE="letter-spacing: 1.45pt">
</FONT>taxes <FONT STYLE="letter-spacing: 0.15pt"> </FONT>paid<FONT STYLE="letter-spacing: 1pt"> </FONT>or payable on said <FONT STYLE="letter-spacing: 0.95pt">
</FONT>portion, plus (2) the total amount credited to<FONT STYLE="letter-spacing: 1.3pt"> </FONT>such <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Party with respect <FONT STYLE="letter-spacing: 1.3pt"> </FONT>to such <FONT STYLE="letter-spacing: 0.55pt"> </FONT>excluded
interest as intangible value of usable <FONT STYLE="letter-spacing: 0.6pt"> </FONT>wells<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in
any previous adjustment<FONT STYLE="letter-spacing: 0.4pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>adjustments made
upon the establishment or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>revision of such participating area. Any<FONT STYLE="letter-spacing: 0.55pt">
</FONT>difference between the amount of said credit and the amount<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt">
</FONT>said charge<FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall be adjusted as hereinafter<FONT STYLE="letter-spacing: 0.25pt">
</FONT>provided.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Such Party shall
be credited with <FONT STYLE="letter-spacing: 1.3pt"> </FONT>the sum of (1)<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the <FONT STYLE="letter-spacing: 1pt">
</FONT>total amount theretofore charged against such Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>with respect to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>its excluded interest,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>pursuant to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the
provisions of Exhibit 1, as Costs<FONT STYLE="letter-spacing: 1.3pt"> </FONT>other than <FONT STYLE="letter-spacing: 1pt"> </FONT>intangible
Costs incurred<FONT STYLE="letter-spacing: 0.7pt"> </FONT>in the development<FONT STYLE="letter-spacing: 0.45pt"> </FONT>and operation<FONT STYLE="letter-spacing: 0.4pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>participating area <FONT STYLE="letter-spacing: 0.6pt">
</FONT>prior to the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>effective date of such contraction,<FONT STYLE="letter-spacing: 0.25pt">
</FONT>plus<FONT STYLE="letter-spacing: 1.4pt"> </FONT>(2)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the total <FONT STYLE="letter-spacing: 0.15pt">
</FONT>amount charged against such Party with respect to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>its<FONT STYLE="letter-spacing: 0.6pt">
</FONT>excluded interest as value of tangible property <FONT STYLE="letter-spacing: 0.55pt"> </FONT>in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>any previous <FONT STYLE="letter-spacing: 0.05pt"> </FONT>adjustment or adjustments<FONT STYLE="letter-spacing: 0.4pt">
</FONT>made <FONT STYLE="letter-spacing: 0.35pt"> </FONT>upon the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>establishment<FONT STYLE="letter-spacing: 0.55pt">
</FONT>or revision of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>participating<FONT STYLE="letter-spacing: 0.4pt">
</FONT>area, plus (3)<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the excess, if any,<FONT STYLE="letter-spacing: 1pt"> </FONT>of
the credit provided for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Subdivision B
of this<FONT STYLE="letter-spacing: 1pt"> </FONT>Section 13.4<FONT STYLE="letter-spacing: 0.35pt"> </FONT>over the charge provided
for in said Subdivision<FONT STYLE="letter-spacing: 0.35pt"> </FONT>B. Such Party shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>charged<FONT STYLE="letter-spacing: 0.7pt"> </FONT>with the sum of(l)<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the excess,
if<FONT STYLE="letter-spacing: 0.25pt"> </FONT>any, of the charge provided for<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in said
Subdivision<FONT STYLE="letter-spacing: 1.3pt"> </FONT>B<FONT STYLE="letter-spacing: 0.6pt"> </FONT>over <FONT STYLE="letter-spacing: 0.4pt">
</FONT>the credit <FONT STYLE="letter-spacing: 1.4pt"> </FONT>therein provided for, plus (2) the <FONT STYLE="letter-spacing: 0.25pt">
</FONT>total amount credited to such Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>with respect to<FONT STYLE="letter-spacing: 0.55pt">
</FONT>its excluded <FONT STYLE="letter-spacing: 0.45pt"> </FONT>interest as value of tangible<FONT STYLE="letter-spacing: 0.7pt">
</FONT>property in any previous<FONT STYLE="letter-spacing: 0.15pt"> </FONT>adjustment or adjustments<FONT STYLE="letter-spacing: 0.95pt">
</FONT>made upon the establishment or revision of such participating<FONT STYLE="letter-spacing: 0.05pt"> </FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. If the charge
provided<FONT STYLE="letter-spacing: 1.3pt"> </FONT>for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>in<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Subdivision C of this Section 13.4<FONT STYLE="letter-spacing: 0.35pt"> </FONT>is equal to or<FONT STYLE="letter-spacing: 0.05pt">
</FONT>greater than the credit therein<FONT STYLE="letter-spacing: 0.55pt"> </FONT>provided<FONT STYLE="letter-spacing: 0.25pt">
</FONT>for, no adjustment shall be made with such Party. However, <FONT STYLE="letter-spacing: 1pt"> </FONT>if<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the credit provided for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>in said Subdivision C is in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>excess<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of the charge therein provided for,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>such excess shall be charged on an <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Acreage Basis <FONT STYLE="letter-spacing: 0.3pt">
</FONT>against Parties who <FONT STYLE="letter-spacing: 0.45pt"> </FONT>remain in the participating area after such contraction
and shall be paid<FONT STYLE="letter-spacing: 0.95pt"> </FONT>by said Parties to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit
Operator upon<FONT STYLE="letter-spacing: 0.7pt"> </FONT>receipt<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of invoices therefor.
Such payments,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>when received by<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Unit Operator,<FONT STYLE="letter-spacing: 0.25pt">
</FONT>shall be paid by it to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>owning
such excluded interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.5 Ownership
of Wells and<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Tangible Property. <FONT STYLE="letter-spacing: 0.6pt"> </FONT>From <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and after <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the effective <FONT STYLE="letter-spacing: 0.05pt"> </FONT>date <FONT STYLE="letter-spacing: 0.35pt">
</FONT>of a resulting area,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>all usable <FONT STYLE="letter-spacing: 0.55pt"> </FONT>wells<FONT STYLE="letter-spacing: 1.3pt">
</FONT>within such resulting area and all tangible<FONT STYLE="letter-spacing: 0.15pt"> </FONT>property <FONT STYLE="letter-spacing: 0.4pt">
</FONT>serving such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>resulting area shall be owned by the Parties within such area
on an<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Acreage Basis, except that (a) in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the
case of tangible property serving<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a<FONT STYLE="letter-spacing: 0.7pt"> </FONT>participating
area <FONT STYLE="letter-spacing: 0.35pt"> </FONT>or participating areas in addition to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the
resulting area, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>only<FONT STYLE="letter-spacing: 1.4pt"> </FONT>that undivided interest<FONT STYLE="letter-spacing: 1.3pt">
</FONT>therein which is<FONT STYLE="letter-spacing: 0.6pt"> </FONT>proportionate<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>that portion of the value thereof <FONT STYLE="letter-spacing: 0.45pt"> </FONT>which is<FONT STYLE="letter-spacing: 0.25pt">
</FONT>included in the adjustment<FONT STYLE="letter-spacing: 0.45pt"> </FONT>provided for<FONT STYLE="letter-spacing: 0.6pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.4pt"> </FONT>owned by the Parties within the resulting area <FONT STYLE="letter-spacing: 0.6pt">
</FONT>on an Acreage Basis, and (b)<FONT STYLE="letter-spacing: 0.35pt"> </FONT>if a<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>within the resulting area was a Non-Drilling Party for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.6pt">
</FONT>well which is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>a usable well within <FONT STYLE="letter-spacing: 1pt"> </FONT>such
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>resulting<FONT STYLE="letter-spacing: 0.4pt"> </FONT>area <FONT STYLE="letter-spacing: 0.55pt">
</FONT>on<FONT STYLE="letter-spacing: 1pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>effective <FONT STYLE="letter-spacing: 0.25pt">
</FONT>date thereof, and if<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>relinquished
interest<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of such Non-Drilling Party in such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>well
has not reverted<FONT STYLE="letter-spacing: 0.35pt"> </FONT>to it prior to such effective date, the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Drilling<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Party<FONT STYLE="letter-spacing: 1pt"> </FONT>for such well shall own<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the interest therein that<FONT STYLE="letter-spacing: 0.3pt"> </FONT>would<FONT STYLE="letter-spacing: 0.3pt"> </FONT>otherwise
be owned<FONT STYLE="letter-spacing: 0.4pt"> </FONT>by such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Non-Drilling Party<FONT STYLE="letter-spacing: 0.3pt">
</FONT>until reversion to such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Non-Drilling Party of<FONT STYLE="letter-spacing: 0.25pt">
</FONT>its <FONT STYLE="letter-spacing: 0.35pt"> </FONT>relinquished interest in such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.6 Relinquished
Interest of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Non-Drilling Parties. <FONT STYLE="letter-spacing: 0.25pt"> </FONT>If the
interest<FONT STYLE="letter-spacing: 0.6pt"> </FONT>relinquished by a Non-Drilling Party in a well which <FONT STYLE="letter-spacing: 0.3pt">
</FONT>is<FONT STYLE="letter-spacing: 1.45pt"> </FONT>a usable <FONT STYLE="letter-spacing: 0.95pt"> </FONT>well within<FONT STYLE="letter-spacing: 1.3pt">
</FONT>a resulting area on the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>effective date <FONT STYLE="letter-spacing: 1pt"> </FONT>thereof
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>has not reverted<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to it prior to<FONT STYLE="letter-spacing: 0.35pt">
</FONT>such effective date, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>then <FONT STYLE="letter-spacing: 0.45pt"> </FONT>insofar,<FONT STYLE="letter-spacing: 0.45pt">
</FONT>but only insofar, <FONT STYLE="letter-spacing: 0.55pt"> </FONT>as they relate to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such
well,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the adjustments provided<FONT STYLE="letter-spacing: 0.95pt"> </FONT>!'or in<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Section<FONT STYLE="letter-spacing: 1.4pt"> </FONT>13.3 shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>be subject <FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the following provisions, wherein the<FONT STYLE="letter-spacing: 1pt"> </FONT>sum of the intangible<FONT STYLE="letter-spacing: 0.55pt">
</FONT>value <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such <FONT STYLE="letter-spacing: 0.25pt">
</FONT>well, plus the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>value of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt">
</FONT>tangible property in or<FONT STYLE="letter-spacing: 1.45pt"> </FONT>pertaining thereto, is referred to as the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>&quot;value&quot; of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such well:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. The Drilling
Party for such well shall <FONT STYLE="letter-spacing: 0.35pt"> </FONT>be charged with that <FONT STYLE="letter-spacing: 0.35pt">
</FONT>part of the value of the well<FONT STYLE="letter-spacing: 0.55pt"> </FONT>that would otherwise be chargeable<FONT STYLE="letter-spacing: 0.6pt">
</FONT>to such Non-Drilling Party<FONT STYLE="letter-spacing: 1.3pt"> </FONT>with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>respect
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to (1) <FONT STYLE="letter-spacing: 0.35pt"> </FONT>such <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Non-Drilling Party's Committed Working <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.3pt">
</FONT>or Interests in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the participating area <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in
which <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well was Drilled, as<FONT STYLE="letter-spacing: 0.55pt">
</FONT>such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>participating area existed <FONT STYLE="letter-spacing: 0.45pt"> </FONT>when
the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilling of the well<FONT STYLE="letter-spacing: 0.55pt"> </FONT>was<FONT STYLE="letter-spacing: 0.6pt">
</FONT>commenced, if the well was Drilled as a Development Well, or (2) the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Working Interest<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Interests<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such Non-Drilling Party which entitled<FONT STYLE="letter-spacing: 0.7pt">
</FONT>it to participate<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the Drilling,
Deepening, Plugging Back, or Completion of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the well,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>if it was<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Drilled, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Deepened, <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Plugged Back, or Completed <FONT STYLE="letter-spacing: 0.05pt"> </FONT>otherwise than <FONT STYLE="letter-spacing: 0.25pt">
</FONT>as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a Development Well.<FONT STYLE="letter-spacing: 0.35pt"> </FONT>However,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>such Non-Drilling Party<FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall be charged <FONT STYLE="letter-spacing: 0.15pt">
</FONT>with such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>part, if any,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of the value
of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such well as is chargeable<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to it,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>in accordance<FONT STYLE="letter-spacing: 0.4pt"> </FONT>with Subdivisions<FONT STYLE="letter-spacing: 0.3pt"> </FONT>A<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and<FONT STYLE="letter-spacing: 1.45pt"> B</FONT><FONT STYLE="letter-spacing: 0.4pt"><B> </B></FONT>of Section <FONT STYLE="letter-spacing: 0.3pt">
</FONT>13.3, with respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>its Committed
Working <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Interests other than <FONT STYLE="letter-spacing: 0.6pt"> </FONT>those referred
to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>in ( 1) and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>(2) above.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. If<FONT STYLE="letter-spacing: 0.45pt">
</FONT>that part of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the value of such well<FONT STYLE="letter-spacing: 1.3pt"> </FONT>which
would have <FONT STYLE="letter-spacing: 0.05pt"> </FONT>been credited to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such Non-Drilling
Party if<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the well had been Drilled, Deepened, Plugged <FONT STYLE="letter-spacing: 1.4pt">
</FONT>Back, or Completed for the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>account <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>all Parties entitled to participate therein<FONT STYLE="letter-spacing: 0.3pt"> </FONT>exceeds the amount provided in<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Subdivison<FONT STYLE="letter-spacing: 0.45pt"> </FONT>A of this Section.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.6<FONT STYLE="letter-spacing: 1.45pt">
</FONT>to be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>charged against<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the Drilling
Party,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such excess shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>applied against<FONT STYLE="letter-spacing: 0.25pt">
</FONT>the reimbursement</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>12</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 1pt">
</FONT>UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 0.6pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">to which the Drilling Party is entitled
out<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Production<FONT STYLE="letter-spacing: 0.4pt">
</FONT>that <FONT STYLE="letter-spacing: 1pt"> </FONT>would otherwise<FONT STYLE="letter-spacing: 0.15pt"> </FONT>accrue <FONT STYLE="letter-spacing: 0.25pt">
</FONT>to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such Non-Drilling<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Party. <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Any balance of such excess over the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>amount<FONT STYLE="letter-spacing: 0.15pt">
</FONT>necessary to complete such reimbursement shall be credited<FONT STYLE="letter-spacing: 1.4pt"> </FONT>to such Non-Drilling
Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 14</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUPERVISION OF OPERATIONS<FONT STYLE="letter-spacing: 0.25pt">
</FONT>BY PARTIES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.1 Right of Supervision.
Each<FONT STYLE="letter-spacing: 1.3pt"> </FONT>operation conducted <FONT STYLE="letter-spacing: 0.55pt"> </FONT>by Unit Operator
under this<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Agreement or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Agreement
shall be subject to supervision and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>control in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>accordance
with the succeeding provisions of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Article<FONT STYLE="letter-spacing: 0.45pt">
</FONT>14 by the Parties<FONT STYLE="letter-spacing: 0.7pt"> </FONT>who are <FONT STYLE="letter-spacing: 0.4pt"> </FONT>chargeable
with <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Costs thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.2 Voting Control.
In the supervision<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of an operation conducted by Unit<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Operator,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Parties chargeable with the Costs<FONT STYLE="letter-spacing: 0.6pt">
</FONT>of such operation shall have the right to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>vote in<FONT STYLE="letter-spacing: 0.95pt">
</FONT>proportion to their respective obligations for such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Costs.<FONT STYLE="letter-spacing: 1pt">
</FONT>The Parties having the right to vote<FONT STYLE="letter-spacing: 0.45pt"> </FONT>on any other matter shall vote thereon<FONT STYLE="letter-spacing: 0.45pt">
</FONT>on an Acreage Basis. Except<FONT STYLE="letter-spacing: 1.45pt"> </FONT>as provided for<FONT STYLE="letter-spacing: 0.3pt">
</FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the Unit Agreement and except as<FONT STYLE="letter-spacing: 0.7pt"> </FONT>otherwise
specified<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>this Agreement (particular<FONT STYLE="letter-spacing: 1.45pt">
</FONT>reference being <FONT STYLE="letter-spacing: 0.35pt"> </FONT>made to Section 25.1, Section 27.1, and that portion <FONT STYLE="letter-spacing: 0.7pt">
</FONT>of Section 11.5 relating to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>abandonment of producing<FONT STYLE="letter-spacing: 0.35pt">
</FONT>wells<FONT STYLE="letter-spacing: 0.4pt"> </FONT>outside of a participating area), <FONT STYLE="letter-spacing: 0.7pt">
</FONT>the affirmative vote of <FONT STYLE="font-family: Arial; color: Red"><B>IMAGE OMITTED</B></FONT>Parties having <U> 65 </U>%<FONT STYLE="letter-spacing: 0.05pt">
</FONT>or more<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of the voting power<FONT STYLE="letter-spacing: 0.3pt"> </FONT>on any
matter which is<FONT STYLE="letter-spacing: 0.35pt"> </FONT>proper<FONT STYLE="letter-spacing: 0.95pt"> </FONT>for action by them
shall be binding<FONT STYLE="letter-spacing: 1.3pt"> </FONT>upon <FONT STYLE="letter-spacing: 0.4pt"> </FONT>all Parties entitled<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to vote thereon;<FONT STYLE="letter-spacing: 1.3pt"> </FONT>provided, however, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>if
one <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Party voting in <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the affirmative<FONT STYLE="letter-spacing: 0.35pt">
</FONT>has <U> 65 </U>%<FONT STYLE="letter-spacing: 0.4pt"> </FONT>or more<FONT STYLE="letter-spacing: 1.45pt"> </FONT>but less
than <U> 75 </U>% of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the voting <FONT STYLE="letter-spacing: 0.55pt"> </FONT>power,
the affirmative<FONT STYLE="letter-spacing: 0.05pt"> </FONT>vote of such Party shall not be<FONT STYLE="letter-spacing: 0.45pt">
</FONT>binding<FONT STYLE="letter-spacing: 0.05pt"> </FONT>upon the Parties entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>vote<FONT STYLE="letter-spacing: 1.4pt"> </FONT>thereon unless <FONT STYLE="letter-spacing: 0.35pt"> </FONT>its<FONT STYLE="letter-spacing: 1.4pt">
</FONT>vote<FONT STYLE="letter-spacing: 0.95pt"> </FONT>is supported<FONT STYLE="letter-spacing: 0.55pt"> </FONT>by<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the affirmative<FONT STYLE="letter-spacing: 0.35pt"> </FONT>vote of at least <FONT STYLE="letter-spacing: 0.45pt"> </FONT>one<FONT STYLE="letter-spacing: 1.3pt">
</FONT>additional Party; and <FONT STYLE="letter-spacing: 0.4pt"> </FONT>provided <FONT STYLE="letter-spacing: 0.3pt"> </FONT>further,
that if<FONT STYLE="letter-spacing: 0.25pt"> </FONT>one Party<FONT STYLE="letter-spacing: 0.25pt"> </FONT>voting in the negative
or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>failing to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>vote has<FONT STYLE="letter-spacing: 1.4pt">
</FONT>more than <U> 35 </U>%<FONT STYLE="letter-spacing: 0.6pt"> </FONT>but<FONT STYLE="letter-spacing: 1.45pt"> </FONT>less than
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>50% of the voting power,<FONT STYLE="letter-spacing: 1pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>affirmative vote of the Parties having a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>majority of the voting power<FONT STYLE="letter-spacing: 0.4pt">
</FONT>shall be binding upon<FONT STYLE="letter-spacing: 0.4pt"> </FONT>all<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Parties
entitled to vote unless there is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>negative
vote of at least one<FONT STYLE="letter-spacing: 0.6pt"> </FONT>additional Party.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>In<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>event only two<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Parties are<FONT STYLE="letter-spacing: 1.4pt">
</FONT>entitled to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>vote, the vote of the one<FONT STYLE="letter-spacing: 1.3pt"> </FONT>with
the greater<FONT STYLE="letter-spacing: 0.4pt"> </FONT>interest<FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.6pt">
</FONT>prevail. If only one Party<FONT STYLE="letter-spacing: 0.35pt"> </FONT>is entitled<FONT STYLE="letter-spacing: 0.55pt">
</FONT>to vote, such Party's vote shall<FONT STYLE="letter-spacing: 0.7pt"> </FONT>control. <FONT STYLE="letter-spacing: 0.45pt">
</FONT>A<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.4pt"> </FONT>failing to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>vote shall<FONT STYLE="letter-spacing: 0.3pt"> </FONT>not be<FONT STYLE="letter-spacing: 0.45pt"> </FONT>deemed to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>have<FONT STYLE="letter-spacing: 0.25pt"> </FONT>voted either<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the affirmative
or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the negative. <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Any<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Approval or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Direction provided
for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>this<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Agreement which<FONT STYLE="letter-spacing: 1.3pt"> </FONT>receives the affirmative<FONT STYLE="letter-spacing: 0.55pt">
</FONT>vote above specified shall be deemed <FONT STYLE="letter-spacing: 0.7pt"> </FONT>given by<FONT STYLE="letter-spacing: 0.95pt">
</FONT>and <FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall be binding<FONT STYLE="letter-spacing: 1pt"> </FONT>upon <FONT STYLE="letter-spacing: 0.15pt">
</FONT>all Parties entitled to vote thereon, except where <FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>vote of a larger percentage is specifically required.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.3 Meetings.
Any<FONT STYLE="letter-spacing: 1pt"> </FONT>matter which<FONT STYLE="letter-spacing: 1.3pt"> </FONT>is<FONT STYLE="letter-spacing: 0.35pt">
</FONT>proper for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>consideration by the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Parties,
or any of them,<FONT STYLE="letter-spacing: 0.45pt"> </FONT>may be considered at a meeting<FONT STYLE="letter-spacing: 0.25pt">
</FONT>held for that purpose. A<FONT STYLE="letter-spacing: 0.6pt"> </FONT>meeting may be called by Unit<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Operator at any time, and a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>meeting shall be called by<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: 0.25pt"> </FONT>upon written<FONT STYLE="letter-spacing: 0.55pt"> </FONT>request
of any Party<FONT STYLE="letter-spacing: 0.25pt"> </FONT>having voting power on any matter to be considered<FONT STYLE="letter-spacing: 0.3pt">
</FONT>at the meeting. At least <FONT STYLE="letter-spacing: 0.95pt"> </FONT>ten (10)<FONT STYLE="letter-spacing: 0.4pt"> </FONT>days
in advance of each meeting, Unit Operator shall give each <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Party<FONT STYLE="letter-spacing: 1pt">
</FONT>entitled<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>vote thereat<FONT STYLE="letter-spacing: 0.7pt">
</FONT>notice <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>time, place, and
purpose of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the meeting. Unit Operator's representative<FONT STYLE="letter-spacing: 0.95pt">
</FONT>shall be the Chairman<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such meeting.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.4 Action Without<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Meeting. In lieu of calling a meeting,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit Operator may submit any matter which
is<FONT STYLE="letter-spacing: 1pt"> </FONT>proper<FONT STYLE="letter-spacing: 0.35pt"> </FONT>for consideration<FONT STYLE="letter-spacing: 0.95pt">
</FONT>by the Parties, or<FONT STYLE="letter-spacing: 1.45pt"> </FONT>any of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>them, by
giving to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>each such Party notice, describing in adequate<FONT STYLE="letter-spacing: 0.6pt">
</FONT>detail<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the matter so submitted. Each Party<FONT STYLE="letter-spacing: 0.55pt">
</FONT>entitled to vote<FONT STYLE="letter-spacing: 1.45pt"> </FONT>on<FONT STYLE="letter-spacing: 1.3pt"> </FONT>any <FONT STYLE="letter-spacing: 0.7pt">
</FONT>matter so submitted shall <FONT STYLE="letter-spacing: 0.05pt"> </FONT>communicate its<FONT STYLE="letter-spacing: 0.95pt">
</FONT>vote<FONT STYLE="letter-spacing: 0.7pt"> </FONT>thereon to Unit Operator within such period as<FONT STYLE="letter-spacing: 0.6pt">
</FONT>may<FONT STYLE="letter-spacing: 1pt"> </FONT>be designated in the notice given <FONT STYLE="letter-spacing: 0.15pt"> </FONT>by<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: 0.4pt"> </FONT>(which period shall be not less than <FONT STYLE="letter-spacing: 0.95pt">
</FONT>ten (10)<FONT STYLE="letter-spacing: 0.35pt"> </FONT>nor<FONT STYLE="letter-spacing: 1.45pt"> </FONT>more than <FONT STYLE="letter-spacing: 0.95pt">
</FONT>thirty (30)<FONT STYLE="letter-spacing: 0.45pt"> </FONT>days); provided, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>however,
if,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>within<FONT STYLE="letter-spacing: 0.35pt"> </FONT>ten (10)<FONT STYLE="letter-spacing: 0.15pt">
</FONT>days after <FONT STYLE="letter-spacing: 0.4pt"> </FONT>submission of such matter, request is made for a<FONT STYLE="letter-spacing: 0.6pt">
</FONT>meeting in accordance with Section <FONT STYLE="letter-spacing: 0.35pt"> </FONT>14.3,<FONT STYLE="letter-spacing: 1.3pt">
</FONT>such matter shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>considered<FONT STYLE="letter-spacing: 0.3pt"> </FONT>only<FONT STYLE="letter-spacing: 1pt">
</FONT>at a meeting<FONT STYLE="letter-spacing: 0.05pt"> </FONT>called for<FONT STYLE="letter-spacing: 1.4pt"> </FONT>that purpose.
If a meeting is not required, then, at the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>expiration<FONT STYLE="letter-spacing: 0.6pt">
</FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>period designated<FONT STYLE="letter-spacing: 0.95pt">
</FONT>in the notice given <FONT STYLE="letter-spacing: 0.4pt"> </FONT>by<FONT STYLE="letter-spacing: 1pt"> </FONT>it, Unit <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Operator<FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall give to each <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.55pt">
</FONT>entitled to vote thereon notice, stating the tabulation and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>result<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>vote.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.5 Representatives.<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Promptly after execution of this<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Agreement, each Party, by notice to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>all other Parties,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall designate<FONT STYLE="letter-spacing: 1.3pt"> </FONT>a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>representative authorized to vote for such Party and may designate<FONT STYLE="letter-spacing: 0.6pt"> </FONT>an alternate
authorized to vote<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for such Party in<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the
absence of its<FONT STYLE="letter-spacing: 1pt"> </FONT>representative. Any such<FONT STYLE="letter-spacing: 0.95pt"> </FONT>designation
of a representative or alternate representative may be revoked at any time by notice given to<FONT STYLE="letter-spacing: 1.45pt">
</FONT>all other Parties,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>provided such notice designates<FONT STYLE="letter-spacing: 0.05pt">
</FONT>a new<FONT STYLE="letter-spacing: 1.4pt"> </FONT>representative or<FONT STYLE="letter-spacing: 0.95pt"> </FONT>alternate
representative, as<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the case may be.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.6 Audits. Audits
may be made of Unit Operator's<FONT STYLE="letter-spacing: 0.4pt"> </FONT>records and books of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>account pertaining to operations<FONT STYLE="letter-spacing: 0.7pt"> </FONT>hereunder, as provided in Exhibit 1.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.7 Extraneous
Projects.<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Nothing contained in this Agreement<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall
be deemed to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>authorize the Parties, by vote<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or
otherwise, to act upon any matter or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to authorize any<FONT STYLE="letter-spacing: 1pt">
</FONT>expenditure unless such matter or expenditure relates to the conduct of operations authorized by the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Unit<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Agreement or this<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 15</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>UNIT<FONT STYLE="letter-spacing: 1.3pt">
</FONT>OPERATOR'S POWERS<FONT STYLE="letter-spacing: 0.3pt"> </FONT>AND<FONT STYLE="letter-spacing: 1.3pt"> </FONT>RIGHTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.1 In General.
Subject<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the limitations set<FONT STYLE="letter-spacing: 0.95pt">
</FONT>forth<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in this<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Agreement, all operations<FONT STYLE="letter-spacing: 0.15pt">
</FONT>authorized by the Unit Agreement<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and this Agreement shall be managed and conducted
by<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Unit Operator. Unit Operator shall have exclusive custody of all materials, equipment,<FONT STYLE="letter-spacing: 0.95pt">
</FONT>and any <FONT STYLE="letter-spacing: 0.7pt"> </FONT>other property used in connection with <FONT STYLE="letter-spacing: 0.25pt">
</FONT>any <FONT STYLE="letter-spacing: 0.25pt"> </FONT>operation within the Unit Area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.2 Employees.
All<FONT STYLE="letter-spacing: 1pt"> </FONT>individuals employed by<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Operator in the conduct of operations hereunder<FONT STYLE="letter-spacing: 1pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.45pt">
</FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the employees of Unit Operator alone; <FONT STYLE="letter-spacing: 0.25pt">
</FONT>and their working <FONT STYLE="letter-spacing: 0.35pt"> </FONT>hours, rates of compensation, and all <FONT STYLE="letter-spacing: 0.4pt">
</FONT>other <FONT STYLE="letter-spacing: 1pt"> </FONT>matters<FONT STYLE="letter-spacing: 0.95pt"> </FONT>relating to their <FONT STYLE="letter-spacing: 1pt">
</FONT>employment shall be determined solely <FONT STYLE="letter-spacing: 0.55pt"> </FONT>by Unit Operator.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.3 <FONT STYLE="letter-spacing: 0.7pt">N</FONT>on-Liability.
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit Operator shall not be liable to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>any
Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>for anything done or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>omitted to be
done by it in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>conduct of operations<FONT STYLE="letter-spacing: 0.45pt">
</FONT>hereunder, except <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in case of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>bad
faith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.4 Force Majeure.
The<FONT STYLE="letter-spacing: 1pt"> </FONT>obligations of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit Operator hereunder
shall be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>suspended<FONT STYLE="letter-spacing: 0.7pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the extent</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">13</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 1.45pt">
</FONT>2<FONT STYLE="letter-spacing: 0.55pt"> </FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">that, and only<FONT STYLE="letter-spacing: 0.3pt">
</FONT>so long<FONT STYLE="letter-spacing: 0.05pt"> </FONT>as,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>performance thereof is
prevented<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by fire, action of the elements, strikes or other differences<FONT STYLE="letter-spacing: 0.15pt">
</FONT>with workmen, acts<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of civil or military authorities,<FONT STYLE="letter-spacing: 0.4pt">
</FONT>acts<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of the public enemy, restrictions<FONT STYLE="letter-spacing: 0.7pt"> </FONT>or
restraints imposed by law or by regulation or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>order of governmental authority, whether
Federal, State, or local,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>inability to obtain necessary <FONT STYLE="letter-spacing: 0.25pt">
</FONT>rights of access,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>or any other<FONT STYLE="letter-spacing: 1.45pt"> </FONT>cause
reasonably beyond the control<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of Unit <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Operator,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>whether or not similar<FONT STYLE="letter-spacing: 0.55pt"> </FONT>to any <FONT STYLE="letter-spacing: 0.4pt"> </FONT>cause
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>above enumerated. <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Whenever performance
of its obligations<FONT STYLE="letter-spacing: 0.3pt"> </FONT>is prevented by any such cause, Unit Operator<FONT STYLE="letter-spacing: 0.55pt">
</FONT>shall give notice thereof<FONT STYLE="letter-spacing: 0.7pt"> </FONT>to the Parties<FONT STYLE="letter-spacing: 0.15pt">
</FONT>as promptly as is reasonably practicable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.5 Lien. Each<FONT STYLE="letter-spacing: 1.3pt">
</FONT>of the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties hereby grants to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Unit
Operator a lien upon its Committed<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Working Interests,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>its interest in all jointly owned<FONT STYLE="letter-spacing: 1.3pt"> </FONT>materials,<FONT STYLE="letter-spacing: 0.7pt">
</FONT>equipment, and other<FONT STYLE="letter-spacing: 0.3pt"> </FONT>property,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and
its<FONT STYLE="letter-spacing: 1.4pt"> </FONT>interest in all<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Production, as<FONT STYLE="letter-spacing: 1.4pt">
</FONT>security<FONT STYLE="letter-spacing: 0.6pt"> </FONT>for<FONT STYLE="letter-spacing: 1.4pt"> </FONT>payment<FONT STYLE="letter-spacing: 0.4pt">
</FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Costs chargeable<FONT STYLE="letter-spacing: 0.55pt"> </FONT>to it,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>together with any interest payable thereon.<FONT STYLE="letter-spacing: 0.25pt"> </FONT>In addition to Unit Operator's rights<FONT STYLE="letter-spacing: 1pt">
</FONT>under the foregoing<FONT STYLE="letter-spacing: 0.55pt"> </FONT>lien, and as a<FONT STYLE="letter-spacing: 0.95pt"> </FONT>secured
party, Unit Operator shall be entitled to the benefit<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of any statutory operator's lien<FONT STYLE="letter-spacing: 1pt">
</FONT>provided for<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the jurisdiction
in which<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the Unit Area is<FONT STYLE="letter-spacing: 0.45pt"> </FONT>located. Unit
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.15pt"> </FONT>may, but<FONT STYLE="letter-spacing: 1.45pt">
</FONT>need<FONT STYLE="letter-spacing: 1.4pt"> </FONT>not, bring an action at<FONT STYLE="letter-spacing: 1.3pt"> </FONT>law or
in<FONT STYLE="letter-spacing: 0.7pt"> </FONT>equity to enforce collection of such indebtedness, with or without<FONT STYLE="letter-spacing: 0.4pt">
</FONT>foreclosure of such lien, and, in addition, shall have <FONT STYLE="letter-spacing: 0.55pt"> </FONT>all rights provided
under <FONT STYLE="letter-spacing: 1.4pt"> </FONT>the terms of the Uniform Commercial Code or of any other <FONT STYLE="letter-spacing: 1.45pt">
</FONT>law. <FONT STYLE="letter-spacing: 0.55pt"> </FONT>In addition<FONT STYLE="letter-spacing: 0.55pt"> </FONT>to the foregoing,
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and not in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>limitation<FONT STYLE="letter-spacing: 0.45pt">
</FONT>thereof, <FONT STYLE="letter-spacing: 1.3pt"> </FONT>upon default by any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.55pt">
</FONT>in the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>payment<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of Costs chargeable
to it, <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Unit Operator shall have <FONT STYLE="letter-spacing: 1pt"> </FONT>the <FONT STYLE="letter-spacing: 0.7pt">
</FONT>right to collect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and receive proceeds <FONT STYLE="letter-spacing: 0.4pt">
</FONT>from the purchaser of such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Party's share of Production, up<FONT STYLE="letter-spacing: 0.45pt">
</FONT>to the amount owing<FONT STYLE="letter-spacing: 0.55pt"> </FONT>by such Party, plus<FONT STYLE="letter-spacing: 0.7pt">
</FONT>interest at the rate of <U> * </U>% per annum<FONT STYLE="letter-spacing: 0.05pt"> </FONT>until paid. Each such<FONT STYLE="letter-spacing: 1.4pt">
</FONT>purchaser shall be entitled<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to rely<FONT STYLE="letter-spacing: 1pt"> </FONT>upon<FONT STYLE="letter-spacing: 1pt">
</FONT>Unit Operator's statement concerning the existence and<FONT STYLE="letter-spacing: 0.4pt"> </FONT>amount of any such default.<FONT STYLE="letter-spacing: 0.55pt">
</FONT>None of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the remedies<FONT STYLE="letter-spacing: 0.6pt"> </FONT>or rights specified
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>above shall be deemed <FONT STYLE="letter-spacing: 0.4pt"> </FONT>exclusive, and <FONT STYLE="letter-spacing: 0.4pt">
</FONT>the exercise of any such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>remedy or right <FONT STYLE="letter-spacing: 0.6pt">
</FONT>shall <FONT STYLE="letter-spacing: 1.4pt"> </FONT>not be deemed an <FONT STYLE="letter-spacing: 0.3pt"> </FONT>election
of remedies and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall not <FONT STYLE="letter-spacing: 0.05pt"> </FONT>affect <FONT STYLE="letter-spacing: 0.45pt">
</FONT>enforceability of the foregoing <FONT STYLE="letter-spacing: 1.3pt"> </FONT>lien <FONT STYLE="letter-spacing: 0.35pt"> </FONT>or
security interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.6 Advances.
Unit Operator, at its election, shall <FONT STYLE="letter-spacing: 0.4pt"> </FONT>have<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the
right from<FONT STYLE="letter-spacing: 0.4pt"> </FONT>time to time to demand <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and receive
from <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Parties chargeable<FONT STYLE="letter-spacing: 0.35pt">
</FONT>therewith payment<FONT STYLE="letter-spacing: 0.6pt"> </FONT>in advance of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>their
respective <FONT STYLE="letter-spacing: 1.45pt"> </FONT>shares<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of the estimated amount
of Costs <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>be incurred<FONT STYLE="letter-spacing: 0.6pt">
</FONT>during any month, which <FONT STYLE="letter-spacing: 0.25pt"> </FONT>right may be exercised only <FONT STYLE="letter-spacing: 0.35pt">
</FONT>by submission<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>each such Party
of a properly <FONT STYLE="letter-spacing: 0.55pt"> </FONT>itemized statement of such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>estimated
Costs, together<FONT STYLE="letter-spacing: 0.4pt"> </FONT>with an invoice <FONT STYLE="letter-spacing: 0.45pt"> </FONT>for <FONT STYLE="letter-spacing: 0.05pt">
</FONT>its share thereof. Each such statement and <FONT STYLE="letter-spacing: 1.4pt"> </FONT>invoice <FONT STYLE="letter-spacing: 0.45pt">
</FONT>for the payment in <FONT STYLE="letter-spacing: 0.45pt"> </FONT>advance of estimated Costs <FONT STYLE="letter-spacing: 0.15pt">
</FONT>for any <FONT STYLE="letter-spacing: 0.55pt"> </FONT>month shall be<FONT STYLE="letter-spacing: 1.45pt"> </FONT>submitted
on<FONT STYLE="letter-spacing: 1.4pt"> </FONT>or about the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>twentieth<FONT STYLE="letter-spacing: 1pt">
</FONT>(20th) <FONT STYLE="letter-spacing: 0.4pt"> </FONT>day of the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>next preceding
month. The amount of each<FONT STYLE="letter-spacing: 1pt"> </FONT>such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>invoice<FONT STYLE="letter-spacing: 0.7pt">
</FONT>shall be payable within fifteen<FONT STYLE="letter-spacing: 1.45pt"> </FONT>(15) days after receipt thereof and thereafter
shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>bear interest at<FONT STYLE="letter-spacing: 1pt"> </FONT>the rate of <U> * </U>%
per annum<FONT STYLE="letter-spacing: 0.05pt"> </FONT>until paid. Proper adjustment shall be made<FONT STYLE="letter-spacing: 1.3pt">
</FONT>monthly<FONT STYLE="letter-spacing: 0.25pt"> </FONT>between such advances and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Costs,
to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the end<FONT STYLE="letter-spacing: 0.95pt"> </FONT>that each Party shall<FONT STYLE="letter-spacing: 0.35pt">
</FONT>bear<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and pay its proportionate share of Costs incurred<FONT STYLE="letter-spacing: 0.45pt">
</FONT>and no<FONT STYLE="letter-spacing: 0.45pt"> </FONT>more.<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: 0.15pt">
</FONT>may request<FONT STYLE="letter-spacing: 0.15pt"> </FONT>advance <FONT STYLE="letter-spacing: 0.55pt"> </FONT>payment<FONT STYLE="letter-spacing: 0.55pt">
</FONT>or security for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the total estimated Costs to be incurred<FONT STYLE="letter-spacing: 0.25pt">
</FONT>in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a particular Drilling, Deepening, Plugging<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Back, or<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Completing<FONT STYLE="letter-spacing: 0.55pt"> </FONT>operation and,
notwithstanding<FONT STYLE="letter-spacing: 0.45pt"> </FONT>any <FONT STYLE="letter-spacing: 0.7pt"> </FONT>other <FONT STYLE="letter-spacing: 1.4pt">
</FONT>provisions of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>this Agreement, shall not be obligated to commence such<FONT STYLE="letter-spacing: 0.95pt">
</FONT>operation<FONT STYLE="letter-spacing: 0.25pt"> </FONT>unless and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>until <FONT STYLE="letter-spacing: 0.15pt">
</FONT>such advance <FONT STYLE="letter-spacing: 0.05pt"> </FONT>payment is made or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Unit
Operator is furnished<FONT STYLE="letter-spacing: 0.6pt"> </FONT>security<FONT STYLE="letter-spacing: 0.6pt"> </FONT>acceptable
to it for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>payment<FONT STYLE="letter-spacing: 0.45pt">
</FONT>by<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the Party <FONT STYLE="letter-spacing: 0.55pt"> </FONT>or Parties chargeable
therewith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.7 Use of Unit
Operator's Drilling<FONT STYLE="letter-spacing: 1pt"> </FONT>Equipment. Any <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Drilling,
Deepening,<FONT STYLE="letter-spacing: 1pt"> </FONT>or Plugging Back operation conducted <FONT STYLE="letter-spacing: 0.35pt">
</FONT>hereunder<FONT STYLE="letter-spacing: 0.4pt"> </FONT>may<FONT STYLE="letter-spacing: 1.4pt"> </FONT>be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>conducted <FONT STYLE="letter-spacing: 0.6pt"> </FONT>by<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: 0.4pt">
</FONT>with<FONT STYLE="letter-spacing: 1.4pt"> </FONT>its own tools and equipment, provided that the rates to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>be charged and the applicable terms <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and conditions <FONT STYLE="letter-spacing: 0.6pt">
</FONT>are set forth <FONT STYLE="letter-spacing: 0.25pt"> </FONT>in a<FONT STYLE="letter-spacing: 0.55pt"> </FONT>form<FONT STYLE="letter-spacing: 1pt">
</FONT>of drilling contract which receives the Approval <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Party or<FONT STYLE="letter-spacing: 1pt"> </FONT>Parties chargeable with the Costs of such operation, except that <FONT STYLE="letter-spacing: 0.45pt">
</FONT>in any case<FONT STYLE="letter-spacing: 1pt"> </FONT>where Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator alone
constitutes the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilling Party,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such form
shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>receive the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Approval of the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Parties within <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the participating area or other designated area for<FONT STYLE="letter-spacing: 0.25pt">
</FONT>such well prior <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to the commencement of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.8 Rights<FONT STYLE="letter-spacing: 0.4pt">
</FONT>as Party. As<FONT STYLE="letter-spacing: 1pt"> </FONT>an owner of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>a Committed<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Working Interest,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Party<FONT STYLE="letter-spacing: 1pt"> </FONT>acting as
Unit Operator shall have<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the same rights and obligations hereunder<FONT STYLE="letter-spacing: 0.6pt">
</FONT>as if it were<FONT STYLE="letter-spacing: 1.4pt"> </FONT>not Unit Operator. In each instance where this Agreement requires<FONT STYLE="letter-spacing: 0.35pt">
</FONT>or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>permits a<FONT STYLE="letter-spacing: 1pt"> </FONT>Party to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>give<FONT STYLE="letter-spacing: 1pt"> </FONT>notice,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>consent, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>approval to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Unit Operator, such
notice, consent, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>approval shall be deemed
properly given by<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Party <FONT STYLE="letter-spacing: 0.55pt"> </FONT>acting as<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Unit Operator if and when given to all <FONT STYLE="letter-spacing: 0.4pt"> </FONT>other Parties entitled to give <FONT STYLE="letter-spacing: 0.25pt">
</FONT>or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>receive <FONT STYLE="letter-spacing: 0.6pt"> </FONT>such <FONT STYLE="letter-spacing: 0.7pt">
</FONT>notice, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>consent, or approval. *2%<FONT STYLE="letter-spacing: 0.45pt"> </FONT>above
prime <FONT STYLE="letter-spacing: 0.3pt"> </FONT>rate<FONT STYLE="letter-spacing: 1.45pt"> </FONT>as set by the Chase <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Manhattan<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Bank of New<FONT STYLE="letter-spacing: 0.4pt"> </FONT>York City,
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>New York</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 16</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>UNIT OPERATOR'S<FONT STYLE="letter-spacing: 1pt">
</FONT>DUTIES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.1<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Specific Duties. In<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the conduct of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>operations<FONT STYLE="letter-spacing: 0.15pt">
</FONT>hereunder, Unit Operator shall:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Drilling of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Wells. Drill, Deepen, Plug Back, or<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Complete<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>well<FONT STYLE="letter-spacing: 0.35pt">
</FONT>or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>wells only in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>accordance with the
provisions of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Compliance with
Laws and<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Agreements. Comply <FONT STYLE="letter-spacing: 0.3pt"> </FONT>with <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>provisions of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Unit Agreement,
all <FONT STYLE="letter-spacing: 0.4pt"> </FONT>applicable<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Jaws and <FONT STYLE="letter-spacing: 0.45pt">
</FONT>governmental<FONT STYLE="letter-spacing: 0.95pt"> </FONT>regulations<FONT STYLE="letter-spacing: 1pt"> </FONT>(whether Federal,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>State, or local), and Directions<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Parties pursuant to this <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Agreement.<FONT STYLE="letter-spacing: 0.25pt"> </FONT>In
case of conflict between <FONT STYLE="letter-spacing: 0.3pt"> </FONT>such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Directions
and the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Unit Agreement<FONT STYLE="letter-spacing: 0.4pt"> </FONT>or<FONT STYLE="letter-spacing: 0.95pt">
</FONT>such <FONT STYLE="letter-spacing: 0.3pt"> l</FONT>aws<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or regulations,<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of the Unit Agreement or<FONT STYLE="letter-spacing: 0.95pt">
</FONT>such laws or regulations shall govern.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Consultation<FONT STYLE="letter-spacing: 0.35pt">
</FONT>with Parties. Consult freely with the Parties within<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the area affected by any
operation hereunder and keep them advised of all matters<FONT STYLE="letter-spacing: 0.4pt"> </FONT>arising in operations<FONT STYLE="letter-spacing: 0.35pt">
</FONT>hereunder<FONT STYLE="letter-spacing: 1.4pt"> </FONT>which Unit Operator<FONT STYLE="letter-spacing: 0.7pt"> </FONT>deems
important, in the exercise of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>its best judgment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Payment of Costs. Pay<FONT STYLE="letter-spacing: 0.6pt"> </FONT>all costs incurred in operations hereunder promptly as<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and when due and payable <FONT STYLE="letter-spacing: 0.6pt"> </FONT>and keep<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the
Committed<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Interests and all property
used<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in connection with operations<FONT STYLE="letter-spacing: 0.55pt"> </FONT>under
this <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 0.35pt"> </FONT>free from<FONT STYLE="letter-spacing: 1.45pt">
</FONT>liens <FONT STYLE="letter-spacing: 0.6pt"> </FONT>which <FONT STYLE="letter-spacing: 0.35pt"> </FONT>may be claimed for
the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>payment of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such Costs, except any such
lien which <FONT STYLE="letter-spacing: 0.55pt"> </FONT>it <FONT STYLE="letter-spacing: 0.15pt"> </FONT>disputes, in which event
Unit Operator may <FONT STYLE="letter-spacing: 0.45pt"> </FONT>contest the disputed lien upon giving <FONT STYLE="letter-spacing: 0.7pt">
</FONT>notice thereof to<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.15pt">
</FONT>affected <FONT STYLE="letter-spacing: 0.4pt"> </FONT>thereby.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">14</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY<FONT STYLE="letter-spacing: 0.55pt">
</FONT>MOUNTAIN UNIT OPERATING<FONT STYLE="letter-spacing: 0.4pt"> </FONT>AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form <FONT STYLE="letter-spacing: 0.95pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Records. <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Keep <FONT STYLE="letter-spacing: 0.4pt"> </FONT>full <FONT STYLE="letter-spacing: 0.95pt"> </FONT>and accurate records
of all <FONT STYLE="letter-spacing: 1.3pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.55pt"> </FONT>incurred and of all controllable
materials<FONT STYLE="letter-spacing: 0.45pt"> </FONT>and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>equipment, which <FONT STYLE="letter-spacing: 0.45pt">
</FONT>records, and receipts<FONT STYLE="letter-spacing: 0.25pt"> </FONT>and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>vouchers
in<FONT STYLE="letter-spacing: 1.4pt"> </FONT>support thereof, shall be available for inspection by authorized employees or agents
of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the Parties at reasonable intervals during<FONT STYLE="letter-spacing: 0.7pt"> </FONT>usual
business hours <FONT STYLE="letter-spacing: 0.25pt"> </FONT>at the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>office of Unit
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Operator.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Information.
Furnish <FONT STYLE="letter-spacing: 0.3pt"> </FONT>promptly <I>to <FONT STYLE="letter-spacing: 0.35pt"> </FONT></I>each <FONT STYLE="letter-spacing: 1.45pt">
</FONT>Party chargeable with Costs of the operation Involved<FONT STYLE="letter-spacing: 0.95pt"> </FONT>and<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>each additional Party<FONT STYLE="letter-spacing: 0.35pt"> </FONT>who<FONT STYLE="letter-spacing: 0.6pt">
</FONT>makes timely <FONT STYLE="letter-spacing: 0.4pt"> </FONT>written request <FONT STYLE="letter-spacing: 0.4pt"> </FONT>therefor
(1)<FONT STYLE="letter-spacing: 1.45pt"> </FONT>copies of Unit Operator's<FONT STYLE="letter-spacing: 0.25pt"> </FONT>authorizations
for expenditures or itemizations of estimated<FONT STYLE="letter-spacing: 0.6pt"> </FONT>expenditures in excess of <U>Twenty &ndash;Five
Thousand</U> Dollars ($<U>25,000</U>), (2)<FONT STYLE="letter-spacing: 0.25pt"> </FONT>copies<FONT STYLE="letter-spacing: 0.6pt">
</FONT>of all drilling<FONT STYLE="letter-spacing: 0.45pt"> </FONT>reports, well<FONT STYLE="letter-spacing: 1pt"> </FONT>logs,
and<FONT STYLE="letter-spacing: 0.6pt"> </FONT>State and<FONT STYLE="letter-spacing: 1pt"> </FONT>Federal <FONT STYLE="letter-spacing: 0.35pt">
</FONT>reports, (3) samples of cores<FONT STYLE="letter-spacing: 0.4pt"> </FONT>and cuttings taken from<FONT STYLE="letter-spacing: 0.7pt">
</FONT>wells<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Drilled hereunder, to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>be delivered
at<FONT STYLE="letter-spacing: 1pt"> </FONT>the well<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in<FONT STYLE="letter-spacing: 0.6pt">
</FONT>containers furnished<FONT STYLE="letter-spacing: 0.55pt"> </FONT>by the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.25pt">
</FONT>requesting same, and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>(4) such other and additional<FONT STYLE="letter-spacing: 0.4pt">
</FONT>information or reports as<FONT STYLE="letter-spacing: 0.55pt"> </FONT>may<FONT STYLE="letter-spacing: 1.45pt"> </FONT>be<FONT STYLE="letter-spacing: 0.05pt">
</FONT>required by Direction of the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Parties within the area aff'ected. If multiple<FONT STYLE="letter-spacing: 0.15pt">
</FONT>copies<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of any such materials are requested<FONT STYLE="letter-spacing: 1pt">
</FONT>by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>any Party,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: 1.3pt">
</FONT>may charge the cost<FONT STYLE="letter-spacing: 0.95pt"> </FONT>thereof directly to<FONT STYLE="letter-spacing: 1.3pt">
</FONT>the<FONT STYLE="letter-spacing: 0.15pt"> </FONT>requesting Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. <FONT STYLE="letter-spacing: 0.4pt">
</FONT>Access<FONT STYLE="letter-spacing: 0.45pt"> </FONT>to Unit<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Area. Permit each<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Party,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>through its authorized employees or<FONT STYLE="letter-spacing: 0.35pt">
</FONT>agents, but at such Party's sole risk and expense, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>to have access to the Unit
Area at all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>times and to the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>derrick floor
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of each <FONT STYLE="letter-spacing: 1pt"> </FONT>well <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Drilled <FONT STYLE="letter-spacing: 1.45pt"> </FONT>or being Drilled hereunder, for <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>purpose of observing operations conducted <FONT STYLE="letter-spacing: 1pt">
</FONT>hereunder and inspecting materials, equipment,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or other <FONT STYLE="letter-spacing: 0.95pt">
</FONT>property used in connection with<FONT STYLE="letter-spacing: 1.45pt"> </FONT>operations under <FONT STYLE="letter-spacing: 0.45pt">
</FONT>this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and to have access
at reasonable<FONT STYLE="letter-spacing: 0.35pt"> </FONT>times <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.7pt">
</FONT>information and data <FONT STYLE="letter-spacing: 0.95pt"> </FONT>in the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>possession
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Operator concerning<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.45pt"> </FONT>operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.2 Insurance.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Unit Operator's.
Unit<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Operator shall comply with the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Workmen's
Compensation Law of the State in which the Unit<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Area is located. Unit Operator shall
also maintain in<FONT STYLE="letter-spacing: 0.3pt"> </FONT>force<FONT STYLE="letter-spacing: 0.25pt"> </FONT>at<FONT STYLE="letter-spacing: 1.3pt">
</FONT>all times with respect<FONT STYLE="letter-spacing: 1.4pt"> </FONT>to operations hereunder such<FONT STYLE="letter-spacing: 1pt">
</FONT>other insurance, if any, as may be required<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by law. In<FONT STYLE="letter-spacing: 0.35pt">
</FONT>addition, Unit Operator shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>maintain such other insurance, if any, as<FONT STYLE="letter-spacing: 0.35pt">
</FONT>is described in<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Exhibit 3 or as<FONT STYLE="letter-spacing: 0.55pt"> </FONT>receives
the Approval of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Parties from time to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>time.
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit Operator shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>carry no<FONT STYLE="letter-spacing: 0.05pt">
</FONT>other insurance for<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the benefit of the Parties,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>except as above specified. <FONT STYLE="letter-spacing: 1pt"> </FONT>Upon request of any Party, Unit Operator shall furnish<FONT STYLE="letter-spacing: 0.55pt">
</FONT>evidence of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>insurance<FONT STYLE="letter-spacing: 0.6pt"> </FONT>carried by
it with respect<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to operations hereunder.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Contractors'.
Unit Operator shall<FONT STYLE="letter-spacing: 0.4pt"> </FONT>require all contractors engaged in<FONT STYLE="letter-spacing: 0.6pt">
</FONT>operations under this Agreement to comply with<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Workmen's Compensation Law of the State in<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which<FONT STYLE="letter-spacing: 1pt">
</FONT>the Unit Area is located<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and to maintain<FONT STYLE="letter-spacing: 0.4pt">
</FONT>such other insurance as may<FONT STYLE="letter-spacing: 0.05pt"> </FONT>be<FONT STYLE="letter-spacing: 1pt"> </FONT>required
by Direction<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Automotive Equipment.<FONT STYLE="letter-spacing: 0.55pt">
</FONT>In the<FONT STYLE="letter-spacing: 1pt"> </FONT>event <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Automobile Public Liability
insurance<FONT STYLE="letter-spacing: 0.25pt"> </FONT>is specified in Exhibit 3<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>subsequently<FONT STYLE="letter-spacing: 0.35pt"> </FONT>receives <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Approval
of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the Parties, no direct charge <FONT STYLE="letter-spacing: 0.6pt"> </FONT>shall
be made by Unit <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.45pt"> </FONT>for premiums<FONT STYLE="letter-spacing: 0.35pt">
</FONT>paid for such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>insurance<FONT STYLE="letter-spacing: 0.25pt"> </FONT>for Unit
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Operator's fully owned automotive equipment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.3 Non-Discrimination.
In<FONT STYLE="letter-spacing: 0.3pt"> </FONT>connection with<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the performance of work
under this<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Agreement, Unit Operator<FONT STYLE="letter-spacing: 0.35pt"> </FONT>agrees<FONT STYLE="letter-spacing: 0.4pt">
</FONT>to comply with<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the provisions<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of
Exhibit 4. Unit Operator agrees to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>insert non-discrimination<FONT STYLE="letter-spacing: 0.15pt">
</FONT>provisions in all subcontracts hereunder, as required<FONT STYLE="letter-spacing: 1pt"> </FONT>by law or regulation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.4 Drilling Contracts.<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Each Drilling,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Deepening, Plugging<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Back,
or Completing operation con&middot; ducted hereunder, and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>not performed by<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Unit Operator with its own<FONT STYLE="letter-spacing: 0.55pt"> </FONT>tools and equipment in accordance with Section 15.
7, shall be performed by a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>reputable drilling contractor having suitable<FONT STYLE="letter-spacing: 0.05pt">
</FONT>equipment and personnel, under written contract between Unit Operator and the contractor, at<FONT STYLE="letter-spacing: 1pt">
</FONT>the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>most<FONT STYLE="letter-spacing: 0.55pt"> </FONT>favorable rates and<FONT STYLE="letter-spacing: 1.45pt">
</FONT>on<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the most<FONT STYLE="letter-spacing: 0.55pt"> </FONT>favorable terms and
conditions bid,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>if bids<FONT STYLE="letter-spacing: 0.3pt"> </FONT>were<FONT STYLE="letter-spacing: 0.95pt">
</FONT>obtained, but<FONT STYLE="letter-spacing: 1pt"> </FONT>otherwise at rates and on terms and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>conditions <FONT STYLE="letter-spacing: 1pt"> </FONT>receiving the Approval of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.5 Uninsured
Losses. Any and all <FONT STYLE="letter-spacing: 1.3pt"> </FONT>payments made <FONT STYLE="letter-spacing: 1.45pt"> </FONT>by <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Unit Operator in the settlement or discharge of any liability to third persons <FONT STYLE="letter-spacing: 1.3pt"> </FONT>(whether
or not <FONT STYLE="letter-spacing: 0.45pt"> </FONT>reduced <FONT STYLE="letter-spacing: 1.3pt"> </FONT>to judgment)<FONT STYLE="letter-spacing: 0.3pt">
</FONT>arising<FONT STYLE="letter-spacing: 1.3pt"> </FONT>out of<FONT STYLE="letter-spacing: 1pt"> </FONT>an operation<FONT STYLE="letter-spacing: 0.4pt">
</FONT>conducted hereunder<FONT STYLE="letter-spacing: 0.45pt"> </FONT>and not<FONT STYLE="letter-spacing: 1.3pt"> </FONT>covered
by insurance<FONT STYLE="letter-spacing: 0.55pt"> </FONT>herein provided for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.55pt">
</FONT>charged as Costs and borne by the Party or<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.4pt">
</FONT>for whose <FONT STYLE="letter-spacing: 0.05pt"> </FONT>account <FONT STYLE="letter-spacing: 0.45pt"> </FONT>such operation
was conducted.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 17</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>LIMITATIONS<FONT STYLE="letter-spacing: 0.35pt">
</FONT>ON UNIT OPERATOR</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">17.1 Specific Limitations.
In the conduct of operations<FONT STYLE="letter-spacing: 0.05pt"> </FONT>hereunder,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Unit
Operator<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.35pt"> </FONT>not, without first obtaining<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the Approval of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the Parties:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Change in Operations.
Make any<FONT STYLE="letter-spacing: 0.55pt"> </FONT>substantial change in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the basic<FONT STYLE="letter-spacing: 0.6pt">
</FONT>method of operation of any well,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>except in<FONT STYLE="letter-spacing: 1.45pt">
</FONT>the case of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>an emergency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Limit on<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Expenditures. Undertake any project reasonably estimated<FONT STYLE="letter-spacing: 0.25pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>require an expenditure in<FONT STYLE="letter-spacing: 0.05pt"> </FONT>excess of <U>Twenty Five Thousand</U> Dollars($<U>25,000)</U>;
provided, however, that (1) Unit <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Operator is authorized to make all usual and customary<FONT STYLE="letter-spacing: 0.4pt">
</FONT>operating<FONT STYLE="letter-spacing: 0.95pt"> </FONT>expenditures that are required<FONT STYLE="letter-spacing: 0.25pt">
</FONT>in the normal course of producing operations, (2) whenever Unit<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Operator is<FONT STYLE="letter-spacing: 0.4pt">
</FONT>authorized to conduct <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a Drilling,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Completing,
or<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Deepening or Plugging Back operation, or to undertake any other project, <FONT STYLE="letter-spacing: 0.35pt">
</FONT>in<FONT STYLE="letter-spacing: 1pt"> </FONT>accordance <FONT STYLE="letter-spacing: 0.95pt"> </FONT>with <FONT STYLE="letter-spacing: 0.15pt">
</FONT>this <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Agreement, Unit <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall be authorized to make <FONT STYLE="letter-spacing: 0.35pt"> </FONT>all reasonable and necessary expenditures in connection
therewith, and (3) <FONT STYLE="letter-spacing: 0.25pt"> </FONT>in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>case<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of emergency, Unit Operator<FONT STYLE="letter-spacing: 0.45pt"> </FONT>may make such<FONT STYLE="letter-spacing: 1.45pt">
</FONT>immediate expenditures<FONT STYLE="letter-spacing: 0.15pt"> </FONT>as may be necessary<FONT STYLE="letter-spacing: 0.15pt">
</FONT>for<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the protection of life<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or property,
but <FONT STYLE="letter-spacing: 0.4pt"> </FONT>notice <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of such emergency shall be<FONT STYLE="letter-spacing: 1.3pt">
</FONT>given to all <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Parties as <FONT STYLE="letter-spacing: 0.3pt"> </FONT>promptly
as reasonably possible.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Partial Relinquishment.
Make any partial relinquishment of its rights as Unit Operator, appoint any sub-operator, or execute any Designation of<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Agent.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">15</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 0.35pt">
</FONT>UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 16<FONT STYLE="letter-spacing: 1pt">
</FONT>Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Settlement of
Claims. Pay in excess <U> Ten Thousand </U> Dollars ($<U>10,000</U>) in settlement of any claim (other than Workman&rsquo;s Compensation
Claims) for injury to or death of persons or for loss of or damage to property.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Determinations.<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Make <FONT STYLE="letter-spacing: 0.3pt"> </FONT>any of<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>determinations provided in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Unit <FONT STYLE="letter-spacing: 1pt"> </FONT>Agreement to be made <FONT STYLE="letter-spacing: 0.45pt">
</FONT>by Unit <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Operator,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>except <FONT STYLE="letter-spacing: 0.3pt">
</FONT>as<FONT STYLE="letter-spacing: 1.4pt"> </FONT>otherwise specified <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 18</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>TITLES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.1 Representation
of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Ownership. Each Party represents to all<FONT STYLE="letter-spacing: 0.55pt"> </FONT>other
Parties that, to the best<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of its knowledge and belief,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>1ts ownership of Committed Working Interests in the Unit Area is that set out<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in
Exhibit B to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>th<FONT STYLE="letter-spacing: 0.4pt">e </FONT>Unit Agreement. If it<FONT STYLE="letter-spacing: 0.55pt">
</FONT>develops that any such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>ownership is incorrectly stated, the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>rights and<FONT STYLE="letter-spacing: 1pt"> </FONT>responsibilities<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: 1.4pt">
</FONT>the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Parties shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>be<FONT STYLE="letter-spacing: 1.45pt">
</FONT>governed by the provisions of this Article 18, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>but such erroneous statement
shall <FONT STYLE="letter-spacing: 1.4pt"> </FONT>not be a cau3e for<FONT STYLE="letter-spacing: 1.45pt"> </FONT>canceling or<FONT STYLE="letter-spacing: 1.4pt">
</FONT>terminating<FONT STYLE="letter-spacing: 0.6pt"> </FONT>this <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.2&#9;Title Papers<FONT STYLE="letter-spacing: 0.7pt">
</FONT>to be Furnished.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Lease Papers.<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Each <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Party,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>after <FONT STYLE="letter-spacing: 1pt">
</FONT>executing<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this Agreement, shall <FONT STYLE="letter-spacing: 1.45pt"> </FONT>upon
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>request promptly furnish<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit Operator
with copies of all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>leases,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>assignments,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>options, and other contracts which it has in its possession <FONT STYLE="letter-spacing: 0.55pt"> </FONT>relating<FONT STYLE="letter-spacing: 0.35pt">
</FONT>to its <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Committed Working Interests.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Title Papers
for Initial Test Well. Promptly after<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>effective
date of this Agreement each Party within the area described as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Title Examination Area in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Exhibit 2 shall, at its<FONT STYLE="letter-spacing: 0.95pt">
</FONT>own expense but without<FONT STYLE="letter-spacing: 0.4pt"> </FONT>responsibility<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the accuracy<FONT STYLE="letter-spacing: 0.35pt"> </FONT>thereof,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>furnish<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Unit Operator with the following title materials relating<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to all lands within
such<FONT STYLE="letter-spacing: 0.05pt"> </FONT>area in which it owns<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Working Interests:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(1) <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Abstracts<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>title based upon the
County records, certified to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the current date;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(2) All lease papers,
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or copies<FONT STYLE="letter-spacing: 1pt"> </FONT>thereof, mentioned in Subdivision<FONT STYLE="letter-spacing: 0.15pt">
</FONT>A<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of this Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>18.2 which the
<FONT STYLE="letter-spacing: 1pt"> </FONT>Party has <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in <FONT STYLE="letter-spacing: 0.15pt">
</FONT>its <FONT STYLE="letter-spacing: 0.7pt"> </FONT>possession and which <FONT STYLE="letter-spacing: 1.3pt"> </FONT>have not
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>been <FONT STYLE="letter-spacing: 0.7pt"> </FONT>previously furnished to Unit Operator;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(3) <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Copies of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>any <FONT STYLE="letter-spacing: 0.45pt"> </FONT>title <FONT STYLE="letter-spacing: 0.6pt">
</FONT>opinions which <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>has in its
possession;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt"><FONT STYLE="letter-spacing: 0.25pt">(</FONT>4)
If Federal lands are involved, status reports of current date, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>setting forth the entries<FONT STYLE="letter-spacing: 0.55pt">
</FONT>found in the BLM<FONT STYLE="letter-spacing: 0.35pt"> </FONT>State <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Office for<FONT STYLE="letter-spacing: 0.15pt">
</FONT>such lands, and also certified <FONT STYLE="letter-spacing: 0.05pt"> </FONT>copies of the Serial Registers<FONT STYLE="letter-spacing: 0.95pt">
</FONT>for the Federal leases involved;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(5) <FONT STYLE="letter-spacing: 0.55pt">
</FONT>If State lands are<FONT STYLE="letter-spacing: 1.45pt"> </FONT>involved, status<FONT STYLE="letter-spacing: 0.6pt"> </FONT>reports
of current date, setting forth the entries found<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in the State<FONT STYLE="letter-spacing: 0.45pt">
</FONT>records <FONT STYLE="letter-spacing: 0.45pt"> </FONT>for such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lands; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(6) <FONT STYLE="letter-spacing: 0.3pt">
</FONT>If Indian lands are<FONT STYLE="letter-spacing: 0.95pt"> </FONT>involved, status reports of current date, setting forth<FONT STYLE="letter-spacing: 1.3pt">
</FONT>the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>entries found in the Bureau of Indian Affairs Agency Realty Office<FONT STYLE="letter-spacing: 0.55pt">
</FONT>having jurisdiction over<FONT STYLE="letter-spacing: 0.6pt"> </FONT>such lands and in<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the Bureau of Indian Affairs Land Titles and Records<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Office having jurisdiction
over<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such lands.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.6pt">
</FONT>Title Papers for Subsequent Wells. Any Party<FONT STYLE="letter-spacing: 0.55pt"> </FONT>who proposes the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Drilling of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Subsequent Test<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Exploratory<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Well shall, at<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the time<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of giving
notice for<FONT STYLE="letter-spacing: 0.4pt"> </FONT>such proposed well, designate a title <FONT STYLE="letter-spacing: 0.05pt">
</FONT>examination area not <FONT STYLE="letter-spacing: 0.6pt"> </FONT>exceeding <U> 2,560 </U> acres and not <FONT STYLE="letter-spacing: 0.95pt">
</FONT>including<FONT STYLE="letter-spacing: 1.45pt"> </FONT>any lands within a participating area. <FONT STYLE="letter-spacing: 0.95pt">
</FONT>When the Drilling of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a Development Well<FONT STYLE="letter-spacing: 1pt"> </FONT>receives
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Approval <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of the Parties within<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the participating area <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in which it is<FONT STYLE="letter-spacing: 0.95pt"> </FONT>to<FONT STYLE="letter-spacing: 1pt">
</FONT>be Drilled, a title <FONT STYLE="letter-spacing: 0.6pt"> </FONT>examination<FONT STYLE="letter-spacing: 0.6pt"> </FONT>area
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>covering <FONT STYLE="letter-spacing: 0.55pt"> </FONT>lands outside any <FONT STYLE="letter-spacing: 0.55pt">
</FONT>participating<FONT STYLE="letter-spacing: 0.7pt"> </FONT>area <FONT STYLE="letter-spacing: 1.45pt"> </FONT>may be designated<FONT STYLE="letter-spacing: 1.45pt">
</FONT>by<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Approval of such Parties.
Each Party within any such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>title <FONT STYLE="letter-spacing: 0.55pt"> </FONT>examination<FONT STYLE="letter-spacing: 0.6pt">
</FONT>area shall,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>at its own expense <FONT STYLE="letter-spacing: 0.6pt"> </FONT>and
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>upon request,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>furnish Unit Operator with
the <FONT STYLE="letter-spacing: 1.45pt"> </FONT>title materials listed in <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Subdivision
B of this Section 18.2 <FONT STYLE="letter-spacing: 0.95pt"> </FONT>not previously furnished,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>relating<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>all<FONT STYLE="letter-spacing: 1.3pt">
</FONT>lands within such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>area in which it<FONT STYLE="letter-spacing: 1pt"> </FONT>owns
Committed Working <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Interests.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Title<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Papers on Establishment<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Enlargement of a Participating Area. <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Upon the establishment or the enlargement of a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>participating area,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>each Party shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>promptly furnish Unit Operator all<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the title materials listed in<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Subdivision B of this Section 18.2 not previously
furnished, relating to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all its Committed Working Interests in the lands lying<FONT STYLE="letter-spacing: 1.4pt">
</FONT>within such participating area as established or enlarged.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.3 Title Examination.
Promptly after<FONT STYLE="letter-spacing: 0.3pt"> </FONT>all title<FONT STYLE="letter-spacing: 0.4pt"> </FONT>materials delivered
pursuant to Section 18.2 have been<FONT STYLE="letter-spacing: 1pt"> </FONT>received, Unit Operator shall deliver the<FONT STYLE="letter-spacing: 1pt">
</FONT>same to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>an attorney or attorneys approved<FONT STYLE="letter-spacing: 0.3pt">
</FONT>by the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Parties within the title examination area. Unit Operator<FONT STYLE="letter-spacing: 0.6pt">
</FONT>shall arrange to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>have said<FONT STYLE="letter-spacing: 1.4pt"> </FONT>materials
examined promptly by such attorney or attorneys and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall distribute copies<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of title opinions<FONT STYLE="letter-spacing: 0.25pt"> </FONT>to all<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Parties
within the title examination area as<FONT STYLE="letter-spacing: 0.6pt"> </FONT>soon<FONT STYLE="letter-spacing: 0.55pt"> </FONT>as
they are received. <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Each Party shall<FONT STYLE="letter-spacing: 0.45pt"> </FONT>be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>responsible, at its expense, for curing its<FONT STYLE="letter-spacing: 0.4pt"> </FONT>own titles. After<FONT STYLE="letter-spacing: 1pt">
</FONT>a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>reasonable time, not<FONT STYLE="letter-spacing: 0.45pt"> </FONT>exceeding
thirty (30)<FONT STYLE="letter-spacing: 0.55pt"> </FONT>days, has<FONT STYLE="letter-spacing: 0.95pt"> </FONT>been<FONT STYLE="letter-spacing: 0.7pt">
</FONT>allowed for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>any necessary<FONT STYLE="letter-spacing: 0.95pt"> </FONT>curative
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>work, Unit Operator shall submit to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>each
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party written <FONT STYLE="letter-spacing: 0.55pt"> </FONT>recommendations for approval
or<FONT STYLE="letter-spacing: 1pt"> </FONT>disapproval of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>title <FONT STYLE="letter-spacing: 0.55pt">
</FONT>to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>each Committed Working Interest<FONT STYLE="letter-spacing: 0.35pt"> </FONT>involved,
and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>thereafter<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the Parties shall advise
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Unit Operator in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>writing, within fifteen
(15) days after receipt <FONT STYLE="letter-spacing: 1.3pt"> </FONT>of such recommendations, of approval or<FONT STYLE="letter-spacing: 0.95pt">
</FONT>disapproval<FONT STYLE="letter-spacing: 1pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>titles. Unless otherwise
agreed, the cost of all title examinations made under this Section 18.3<FONT STYLE="letter-spacing: 0.55pt"> </FONT>shall be charged<FONT STYLE="letter-spacing: 0.45pt">
</FONT>as<FONT STYLE="letter-spacing: 0.7pt"> </FONT>part of the Costs<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of Drilling
the well<FONT STYLE="letter-spacing: 0.35pt"> </FONT>for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>which such <FONT STYLE="letter-spacing: 0.05pt">
</FONT>title examination was made.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.4 Option for<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Additional Title Examination. Any Party who furnishes materials for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>title examination
pursuant to Section 18.2 shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>have the right to examine all<FONT STYLE="letter-spacing: 1pt">
</FONT>materials furnished Unit Operator. If such additional,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>independent title examination<FONT STYLE="letter-spacing: 0.4pt">
</FONT>is elected, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>it shall <FONT STYLE="letter-spacing: 0.45pt"> </FONT>be<FONT STYLE="letter-spacing: 0.45pt">
</FONT>at the sole<FONT STYLE="letter-spacing: 0.55pt"> </FONT>cost and expense of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>electing to perform the same; <FONT STYLE="letter-spacing: 0.25pt"> </FONT>and<FONT STYLE="letter-spacing: 1.45pt">
</FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party shall <FONT STYLE="letter-spacing: 1pt"> </FONT>bear any expense
which may<FONT STYLE="letter-spacing: 1.45pt"> </FONT>be necessary to reproduce <FONT STYLE="letter-spacing: 1pt"> </FONT>title
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>materials<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for<FONT STYLE="letter-spacing: 1.3pt">
</FONT>its use, if<FONT STYLE="letter-spacing: 0.7pt"> </FONT>required. Whether<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or<FONT STYLE="letter-spacing: 1.4pt">
</FONT>not such additional title examination is elected, each Party shall have the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>right
to approve or disapprove titles<FONT STYLE="letter-spacing: 0.25pt"> </FONT>according to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the
provisions of this Article 18</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">16</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 0.95pt">
</FONT>UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 0.3pt">
</FONT>2<FONT STYLE="letter-spacing: 1pt"> </FONT>(Divided<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.5 Approval of<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Titles Prior<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to Drilling.<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Where <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the Committed<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Interests
within a title examination area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>are owned by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>more
than <FONT STYLE="letter-spacing: 0.55pt"> </FONT>one Party, no<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Drilling shall be conducted
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>in such area <FONT STYLE="letter-spacing: 0.6pt"> </FONT>until t1tles to <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Comm1tted Working Interests therein have received the Approval of the Parties as hereinafter<FONT STYLE="letter-spacing: 0.6pt">
</FONT>m<FONT STYLE="letter-spacing: 1pt"> </FONT>th1s Section prov1ded.<FONT STYLE="letter-spacing: 0.45pt"> </FONT>If<FONT STYLE="letter-spacing: 0.45pt">
</FONT>a Drilling<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Block has been designated for the Drilling of a well, such well shall
not<FONT STYLE="letter-spacing: 0.7pt"> </FONT>be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilled until <FONT STYLE="letter-spacing: 0.25pt">
</FONT>titles to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Interests within <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>title examination
area established for such<FONT STYLE="letter-spacing: 1pt"> </FONT>well<FONT STYLE="letter-spacing: 0.55pt"> </FONT>have<FONT STYLE="letter-spacing: 1.45pt">
</FONT>received the Approval of the<FONT STYLE="letter-spacing: 1pt"> </FONT>Parties within the<FONT STYLE="letter-spacing: 1pt">
</FONT>Drilling Block<FONT STYLE="letter-spacing: 0.35pt"> </FONT>in which<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such wells
to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>be Drilled.<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Approval of title to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>lands within<FONT STYLE="letter-spacing: 0.35pt"> </FONT>a Drilling Block<FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.3pt">
</FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>binding upon all<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.45pt">
</FONT>owning Committed Working Interests within<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Drilling Block.<FONT STYLE="letter-spacing: 1.4pt"> </FONT>If<FONT STYLE="letter-spacing: 0.7pt"> </FONT>lands outside a<FONT STYLE="letter-spacing: 1.4pt">
</FONT>participating area are<FONT STYLE="letter-spacing: 1.3pt"> in</FONT>cluded in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>title examination area for a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Development Well,<FONT STYLE="letter-spacing: 0.45pt">
</FONT>such well shall not<FONT STYLE="letter-spacing: 1pt"> </FONT>be Drilled until <FONT STYLE="letter-spacing: 0.15pt"> </FONT>t1tles
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the Committed<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Working<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Interests within such <FONT STYLE="letter-spacing: 1.4pt"> </FONT>title examination area <FONT STYLE="letter-spacing: 0.45pt">
</FONT>have received the Approval <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Parties therein.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>In<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the event <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Approval <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of the Parties is not obtained as<FONT STYLE="letter-spacing: 1.4pt">
</FONT>in this Section 18.5<FONT STYLE="letter-spacing: 0.6pt"> </FONT>provided, the<FONT STYLE="letter-spacing: 1pt"> </FONT>Drilling
Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>(whether one or more) may proceed<FONT STYLE="letter-spacing: 0.95pt"> </FONT>with
the Drilling of the well,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>but<FONT STYLE="letter-spacing: 0.95pt"> </FONT>sa1d Drilling<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Party (a)<FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall, by<FONT STYLE="letter-spacing: 0.05pt"> </FONT>so<FONT STYLE="letter-spacing: 0.45pt">
</FONT>proceeding, assume <FONT STYLE="letter-spacing: 0.7pt"> </FONT>all<FONT STYLE="letter-spacing: 1.4pt"> </FONT>risk attending
the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>failure to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>obtain such approval <FONT STYLE="letter-spacing: 0.45pt">
</FONT>to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>s me extent as<FONT STYLE="letter-spacing: 0.7pt">
</FONT>if approval<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of titles to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all lands
within <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Drilling Block<FONT STYLE="letter-spacing: 0.6pt"> </FONT>(if one has been<FONT STYLE="letter-spacing: 0.35pt">
</FONT>established) or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>title<FONT STYLE="letter-spacing: 0.3pt"> </FONT>examination area (in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>all other
instances) had been<FONT STYLE="letter-spacing: 0.7pt"> </FONT>obtained, and (b) shall also<FONT STYLE="letter-spacing: 1pt"> </FONT>be
deemed to have g1ven its approval<FONT STYLE="letter-spacing: 0.25pt"> </FONT>to the titles to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>all<FONT STYLE="letter-spacing: 1pt"> </FONT>lands <FONT STYLE="letter-spacing: 0.05pt"> </FONT>within<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Drilling Block (if one has <FONT STYLE="letter-spacing: 0.15pt"> </FONT>been established) or<FONT STYLE="letter-spacing: 1.4pt">
</FONT>within<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the title examination area (in all other instances).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.6 Approval of
Titles<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Prior to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Inclusion of Land in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>a Participating Area. Where the Committed Working <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Interests within a <FONT STYLE="letter-spacing: 0.35pt">
</FONT>participating area are <FONT STYLE="letter-spacing: 1pt"> </FONT>owned by more <FONT STYLE="letter-spacing: 0.6pt"> </FONT>than
one <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Party, no<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Committed Working Interest<FONT STYLE="letter-spacing: 0.15pt">
</FONT>shall be included within said participating<FONT STYLE="letter-spacing: 0.4pt"> </FONT>area or be<FONT STYLE="letter-spacing: 0.6pt">
</FONT>entitled to<FONT STYLE="letter-spacing: 1pt"> </FONT>participate<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in the Production
of unitized <FONT STYLE="letter-spacing: 0.6pt"> </FONT>substances from said <FONT STYLE="letter-spacing: 0.3pt"> </FONT>participating
area until <FONT STYLE="letter-spacing: 0.6pt"> </FONT>title to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such Committed<FONT STYLE="letter-spacing: 1pt">
</FONT>Working Interest<FONT STYLE="letter-spacing: 0.25pt"> </FONT>has received <FONT STYLE="letter-spacing: 0.45pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Approval <FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the Parties within said participating area. Approval of titles<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to lands within
a participating area shall be binding upon all Parties within such<FONT STYLE="letter-spacing: 0.95pt"> </FONT>participating area
and<FONT STYLE="letter-spacing: 1pt"> </FONT>all Parties coming within such participating area upon any enlargement thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.7 Failure of
Title to Committed<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Working Interest Before Approval. If title to a<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Committed Working Interest shall fail in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>whole<FONT STYLE="letter-spacing: 0.4pt">
</FONT>or in<FONT STYLE="letter-spacing: 0.95pt"> </FONT>part prior to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>receiving the
Approval of the<FONT STYLE="letter-spacing: 1pt"> </FONT>Parties,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Parties who<FONT STYLE="letter-spacing: 0.6pt">
</FONT>improperly claimed said interest shall<FONT STYLE="letter-spacing: 0.15pt"> s</FONT>ustain the entire loss occasioned by
such failure of title and do hereby expressly relieve and indemnify Unit Operator and all other Parties from<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and<FONT STYLE="letter-spacing: 1pt"> </FONT>against any and all<FONT STYLE="letter-spacing: 0.15pt"> </FONT>liability<FONT STYLE="letter-spacing: 0.55pt">
</FONT>on account thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.8 Failure of
Title to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working Interest<FONT STYLE="letter-spacing: 1.45pt"> </FONT>After
Approval. If title <FONT STYLE="letter-spacing: 1.3pt"> </FONT>to a Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest
which has received<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the Approval of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Parties
under Section 18.5 fails in whole<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or in part at <FONT STYLE="letter-spacing: 0.05pt">
</FONT>a time when the tract affected thereby<FONT STYLE="letter-spacing: 0.6pt"> </FONT>is within<FONT STYLE="letter-spacing: 0.35pt">
</FONT>an active <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Drilling Block or within a Drilling Block upon <FONT STYLE="letter-spacing: 0.05pt">
</FONT>which a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>well has <FONT STYLE="letter-spacing: 0.15pt"> </FONT>been<FONT STYLE="letter-spacing: 1.4pt">
</FONT>completed <FONT STYLE="letter-spacing: 0.55pt"> </FONT>otherwise than as<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a producer
of unitized substances in Paying Quantities, or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>if title <FONT STYLE="letter-spacing: 0.4pt">
</FONT>to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Working <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which has received
the Approval<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Parties<FONT STYLE="letter-spacing: 0.05pt">
</FONT>under Section<FONT STYLE="letter-spacing: 1.4pt"> </FONT>18.6<FONT STYLE="letter-spacing: 1pt"> </FONT>fails in<FONT STYLE="letter-spacing: 0.6pt">
</FONT>whole or<FONT STYLE="letter-spacing: 1pt"> </FONT>in<FONT STYLE="letter-spacing: 0.7pt"> </FONT>part at<FONT STYLE="letter-spacing: 1.3pt">
</FONT>a<FONT STYLE="letter-spacing: 0.55pt"> </FONT>time<FONT STYLE="letter-spacing: 1.4pt"> </FONT>when the tract affected thereby
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>is<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within<FONT STYLE="letter-spacing: 0.55pt">
</FONT>a participating<FONT STYLE="letter-spacing: 0.45pt"> </FONT>area, then:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. the loss, the
cost<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of litigation, and any ensuing liability shall be borne by the Parties having
interests in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the affected participating area or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Drilling Block<FONT STYLE="letter-spacing: 0.35pt"> </FONT>(including the Party whose<FONT STYLE="letter-spacing: 0.35pt">
</FONT>Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.3pt"> </FONT>has been<FONT STYLE="letter-spacing: 1.45pt">
</FONT>lost<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and including<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the acreage of
such Committed<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest);</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. there <FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.55pt"> </FONT>relinquished to the Party<FONT STYLE="letter-spacing: 0.45pt"> </FONT>whose
Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.05pt"> </FONT>has been lost
such proportionate part of each of the 0ther Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Interests in the lands within such affected participating area <FONT STYLE="letter-spacing: 0.55pt"> </FONT>or Drilling<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Block, subject <FONT STYLE="letter-spacing: 0.6pt"> </FONT>to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>a like proportion<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>their respective Lease Burdens, as<FONT STYLE="letter-spacing: 1.3pt"> </FONT>may
be<FONT STYLE="letter-spacing: 0.6pt"> </FONT>necessary<FONT STYLE="letter-spacing: 0.35pt"> </FONT>to make the loss of such Committed
Working Interest a<FONT STYLE="letter-spacing: 0.05pt"> </FONT>joint loss<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Parties<FONT STYLE="letter-spacing: 0.35pt"> </FONT>within <FONT STYLE="letter-spacing: 0.95pt"> </FONT>such <FONT STYLE="letter-spacing: 0.6pt">
</FONT>participating<FONT STYLE="letter-spacing: 0.4pt"> </FONT>area or Drilling<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Block;<FONT STYLE="letter-spacing: 1.45pt">
</FONT>and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C the relinquished<FONT STYLE="letter-spacing: 0.05pt">
</FONT>portions of said Committed<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Working Interests (subject to their proportionate
part of the Lease Burdens attributable<FONT STYLE="letter-spacing: 1.45pt"> </FONT>thereto) shall<FONT STYLE="letter-spacing: 0.45pt">
</FONT>be<FONT STYLE="letter-spacing: 0.4pt"> </FONT>deemed owned by the Party <FONT STYLE="letter-spacing: 1pt"> </FONT>receiving
same.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.9 Joinder by
True<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Owner. If title to a Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working
Interest fails in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>whole<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or in<FONT STYLE="letter-spacing: 0.7pt">
</FONT>part, such Committed<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Working<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest
shall<FONT STYLE="letter-spacing: 0.4pt"> </FONT>no<FONT STYLE="letter-spacing: 0.3pt"> </FONT>longer be subject to<FONT STYLE="letter-spacing: 0.4pt">
</FONT>this Agreement or the Unit<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement. The true owner of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>a Committed<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Working<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Interest,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>title<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to which has failed,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>may join
in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>this Agreement or enter into a<FONT STYLE="letter-spacing: 1pt"> </FONT>separate
Operating Agreement with<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Parties to this<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Agreement
upon<FONT STYLE="letter-spacing: 1.45pt"> </FONT>such terms<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and conditions as<FONT STYLE="letter-spacing: 0.6pt">
</FONT>receive<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the Approval of the Parties within the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Unit Area<FONT STYLE="letter-spacing: 0.95pt"> </FONT>and subject to any<FONT STYLE="letter-spacing: 1pt"> </FONT>valid<FONT STYLE="letter-spacing: 1.3pt">
</FONT>claims by the true owner.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.10 Title Challenge.
In the event of any suit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>action<FONT STYLE="letter-spacing: 1.4pt">
</FONT>challenging the title of any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party to any of the oil<FONT STYLE="letter-spacing: 0.35pt">
</FONT>and gas rights<FONT STYLE="letter-spacing: 0.25pt"> </FONT>committed by said Party to<FONT STYLE="letter-spacing: 0.4pt">
</FONT>this Agreement and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Agreement,
the Party served <FONT STYLE="letter-spacing: 0.35pt"> </FONT>will immediately<FONT STYLE="letter-spacing: 0.6pt"> </FONT>notify
the other <FONT STYLE="letter-spacing: 0.95pt"> </FONT>Parties,<FONT STYLE="letter-spacing: 0.25pt"> </FONT>and <FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Party whose title <FONT STYLE="letter-spacing: 0.4pt"> </FONT>has been challenged<FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall forthwith take over<FONT STYLE="letter-spacing: 0.7pt"> </FONT>and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>be in<FONT STYLE="letter-spacing: 0.35pt">
</FONT>charge of the conduct of the litigation and shall bear<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the entire cost<FONT STYLE="letter-spacing: 0.3pt">
</FONT>of such litigation, unless the title has <FONT STYLE="letter-spacing: 0.55pt"> </FONT>previously received <FONT STYLE="letter-spacing: 1.45pt">
</FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>Approval of the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>Parties,<FONT STYLE="letter-spacing: 1.3pt">
</FONT>in <FONT STYLE="letter-spacing: 0.25pt"> </FONT>which event <FONT STYLE="letter-spacing: 1.45pt"> the</FONT><I> </I>provisions
of Section <FONT STYLE="letter-spacing: 0.3pt"> </FONT>18.8 shall <FONT STYLE="letter-spacing: 0.95pt"> </FONT>apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 19</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>UNLEASED INTERESTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">19.1 Treated<FONT STYLE="letter-spacing: 0.45pt">
</FONT>as<FONT STYLE="letter-spacing: 1pt"> </FONT>Leased. If a Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>owns in fee all
or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any part <FONT STYLE="letter-spacing: 0.35pt"> </FONT>of the oil<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and gas rights in any tract within the Unit Area<FONT STYLE="letter-spacing: 1.45pt"> </FONT>which is<FONT STYLE="letter-spacing: 0.45pt">
</FONT>not<FONT STYLE="letter-spacing: 0.3pt"> </FONT>subject to any oil and gas lease<FONT STYLE="letter-spacing: 1.3pt"> </FONT>or
other contract in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the nature thereof, such Party shall be deemed to<FONT STYLE="letter-spacing: 1.45pt">
</FONT>own a Committed<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Working Interest in such tract and <FONT STYLE="letter-spacing: 0.7pt">
</FONT>also a royalty interest therein in<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the same manner as if such Party's oil<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and<FONT STYLE="letter-spacing: 1pt"> </FONT>gas<FONT STYLE="letter-spacing: 0.55pt"> </FONT>rights in<FONT STYLE="letter-spacing: 0.25pt">
</FONT>such<FONT STYLE="letter-spacing: 1pt"> </FONT>tract <FONT STYLE="letter-spacing: 0.15pt"> </FONT>were<FONT STYLE="letter-spacing: 0.4pt">
</FONT>covered<FONT STYLE="letter-spacing: 1pt"> </FONT>by the form of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>oil and gas
lease attached as Exhibit 5.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">19.2 Execution
of Lease. <FONT STYLE="letter-spacing: 1.3pt"> </FONT>In <FONT STYLE="letter-spacing: 0.55pt"> </FONT>any provision of this Agreement
where reference is <FONT STYLE="letter-spacing: 0.05pt"> </FONT>made to an assignment or conveyance by any Party of its Committed
Working Interest to any<FONT STYLE="letter-spacing: 1pt"> </FONT>other Party. each such reference as to any<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>owning<FONT STYLE="letter-spacing: 1pt"> </FONT>an<FONT STYLE="letter-spacing: 0.95pt">
</FONT>unleased interest<FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall be interpreted to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>mean<FONT STYLE="letter-spacing: 1.4pt"> </FONT>that such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party shall</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">17</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN<FONT STYLE="letter-spacing: 0.7pt">
</FONT>UNIT<FONT STYLE="letter-spacing: 1.4pt"> </FONT>OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2<FONT STYLE="letter-spacing: 0.6pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">execute an <FONT STYLE="letter-spacing: 0.7pt">
</FONT>oil and gas lease to such other Party in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the form <FONT STYLE="letter-spacing: 0.6pt">
</FONT>of Exhibit<FONT STYLE="letter-spacing: 1.45pt"> </FONT>5, which <FONT STYLE="letter-spacing: 0.6pt"> </FONT>shall satisfy<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the requirement<FONT STYLE="letter-spacing: 0.6pt"> </FONT>for an assignment<FONT STYLE="letter-spacing: 0.6pt"> </FONT>or
conveyance<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a Committed Working Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 20</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RENTALS<FONT STYLE="letter-spacing: 0.15pt">
</FONT>AND LEASE<FONT STYLE="letter-spacing: 1.3pt"> </FONT>BURDENS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">20.1 Rentals. Each
Party shall <FONT STYLE="letter-spacing: 0.45pt"> </FONT>be obligated<FONT STYLE="letter-spacing: 0.45pt"> </FONT>to pay any and
all rentals and other <FONT STYLE="letter-spacing: 0.05pt"> </FONT>sums (other <FONT STYLE="letter-spacing: 0.3pt"> </FONT>than
Lease Burdens)<FONT STYLE="letter-spacing: 0.3pt"> </FONT>payable upon or with respect <FONT STYLE="letter-spacing: 0.4pt"> </FONT>to
its<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Committed Working <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Interests,<FONT STYLE="letter-spacing: 1pt">
</FONT>subject, however, to the right of each<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Party to<FONT STYLE="letter-spacing: 0.35pt">
</FONT>surrender any<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of its Committed Working Interests in accordance with Article 27.
Upon request, each Party shall furnish<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit
Operator satisfactory evidence of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>making of such payments.<FONT STYLE="letter-spacing: 0.4pt">
</FONT>However, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>no Party shall <FONT STYLE="letter-spacing: 0.95pt"> </FONT>be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>liable <FONT STYLE="letter-spacing: 0.7pt"> </FONT>to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any <FONT STYLE="letter-spacing: 0.05pt">
</FONT>other <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Party for<FONT STYLE="letter-spacing: 1pt"> </FONT>unintentional<FONT STYLE="letter-spacing: 0.15pt">
</FONT>failure<FONT STYLE="letter-spacing: 0.25pt"> </FONT>to make <FONT STYLE="letter-spacing: 0.4pt"> </FONT>any such <FONT STYLE="letter-spacing: 0.6pt">
</FONT>payment,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>provided <FONT STYLE="letter-spacing: 0.35pt"> </FONT>it has acted
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>in good<FONT STYLE="letter-spacing: 0.95pt"> </FONT>faith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">20.2 Lease Burdens.
Each Party entitled to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>receive a<FONT STYLE="letter-spacing: 0.05pt"> </FONT>share
of Production shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be obligated for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>any
and <FONT STYLE="letter-spacing: 1pt"> </FONT>all payments,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>whether<FONT STYLE="letter-spacing: 1.45pt">
</FONT>in <FONT STYLE="letter-spacing: 0.35pt"> </FONT>cash <FONT STYLE="letter-spacing: 0.95pt"> </FONT>or <FONT STYLE="letter-spacing: 0.15pt">
</FONT>in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>kind, accruing to any and all Lease <FONT STYLE="letter-spacing: 1pt"> </FONT>Burdens,
net profits interests,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>carried interests, and any<FONT STYLE="letter-spacing: 1.4pt">
</FONT>similar<FONT STYLE="letter-spacing: 0.15pt"> </FONT>interest<FONT STYLE="letter-spacing: 0.4pt"> </FONT>payable with respect
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to such share or<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>proceeds thereof; <FONT STYLE="letter-spacing: 0.4pt"> </FONT>provided, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>however,
at any time <FONT STYLE="letter-spacing: 0.15pt"> </FONT>any such Party entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to<FONT STYLE="letter-spacing: 0.95pt">
</FONT>receive Production<FONT STYLE="letter-spacing: 0.45pt"> </FONT>is<FONT STYLE="letter-spacing: 0.95pt"> </FONT>not<FONT STYLE="letter-spacing: 1.4pt">
</FONT>taking in kind or separately disposing of its share, that <FONT STYLE="letter-spacing: 0.35pt"> </FONT>portion <FONT STYLE="letter-spacing: 0.45pt">
</FONT>of such Production or<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proceeds
thereof <FONT STYLE="letter-spacing: 0.25pt"> </FONT>(at the option of such Party)<FONT STYLE="letter-spacing: 0.05pt"> </FONT>accruing
to such Lease Burdens shall, upon request, be distributed to such Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">20.3 Loss of Committed
Working Interest. If a<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Committed Working Interest is lost through failure to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>make<FONT STYLE="letter-spacing: 1.4pt"> </FONT>any payment above provided to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be<FONT STYLE="letter-spacing: 0.4pt">
</FONT>made by the Party owning the same, such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>loss<FONT STYLE="letter-spacing: 0.15pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be<FONT STYLE="letter-spacing: 0.55pt"> </FONT>borne entirely by such<FONT STYLE="letter-spacing: 1pt">
</FONT>Party; provided, however, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>if the Committed Working Interest so lost<FONT STYLE="letter-spacing: 0.45pt">
</FONT>covers<FONT STYLE="letter-spacing: 0.55pt"> </FONT>land within a participating area, the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>provisions<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Section 18.8<FONT STYLE="letter-spacing: 1.45pt">
</FONT>shall apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 1pt">
</FONT>21</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>TAXES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.1 Payment. Any
and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>all <FONT STYLE="letter-spacing: 0.25pt"> </FONT>ad valorem <FONT STYLE="letter-spacing: 1.4pt">
</FONT>and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>severance taxes payable upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Committed
Working Interests (and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>upon Lease <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Burdens<FONT STYLE="letter-spacing: 0.7pt">
</FONT>which are not <FONT STYLE="letter-spacing: 0.25pt"> </FONT>payable by the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>owners
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>thereof) <FONT STYLE="letter-spacing: 0.6pt"> </FONT>or upon <FONT STYLE="letter-spacing: 0.05pt">
</FONT>materials, equipment, or other property acquired and held <FONT STYLE="letter-spacing: 0.4pt"> </FONT>by<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Unit Operator hereunder,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>any
and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>all taxes (other than <FONT STYLE="letter-spacing: 0.25pt"> </FONT>income<FONT STYLE="letter-spacing: 1.3pt">
</FONT>taxes) upon or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>measured<FONT STYLE="letter-spacing: 0.55pt"> </FONT>by<FONT STYLE="letter-spacing: 0.25pt">
</FONT>unitized substances<FONT STYLE="letter-spacing: 0.3pt"> </FONT>produced from the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Unit
Area<FONT STYLE="letter-spacing: 1.45pt"> </FONT>which are not payable by the purchaser or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>purchasers thereof or<FONT STYLE="letter-spacing: 0.55pt"> </FONT>by the owner of Lease Burdens shall <FONT STYLE="letter-spacing: 0.25pt">
</FONT>be paid by Unit <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.7pt"> </FONT>as and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>when <FONT STYLE="letter-spacing: 0.25pt"> </FONT>due and payable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.2 Apportionment.
Taxes upon materials, equipment, and other property<FONT STYLE="letter-spacing: 0.15pt"> </FONT>acquired<FONT STYLE="letter-spacing: 0.45pt">
</FONT>and held by Unit Operator hereunder shall<FONT STYLE="letter-spacing: 0.25pt"> </FONT>be charged to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>and borne by the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Parties owning the same in<FONT STYLE="letter-spacing: 0.95pt">
</FONT>proportion to their respective interests<FONT STYLE="letter-spacing: 0.95pt"> </FONT>therein. All taxes paid<FONT STYLE="letter-spacing: 0.15pt">
</FONT>by Unit<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.95pt"> </FONT>upon or measured<FONT STYLE="letter-spacing: 1pt">
</FONT>by the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>value of Production shall be charged to and borne by the Parties owning
the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>same in the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>same proportions as the assessed<FONT STYLE="letter-spacing: 0.55pt">
</FONT>values of their respective portions of such Production bear to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>whole thereof. All other<FONT STYLE="letter-spacing: 0.05pt"> </FONT>taxes paid<FONT STYLE="letter-spacing: 1.45pt"> </FONT>by
Unit Operator shall<FONT STYLE="letter-spacing: 0.7pt"> </FONT>be charged<FONT STYLE="letter-spacing: 0.45pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt">
</FONT>and borne by the Parties in proportion to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>their<FONT STYLE="letter-spacing: 0.3pt">
</FONT>ownership in the Committed Working Interests or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>unitized substances<FONT STYLE="letter-spacing: 0.05pt">
</FONT>(as<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the case may be) upon<FONT STYLE="letter-spacing: 0.95pt"> </FONT>which<FONT STYLE="letter-spacing: 0.6pt">
</FONT>or<FONT STYLE="letter-spacing: 0.25pt"> </FONT>with<FONT STYLE="letter-spacing: 1.4pt"> </FONT>respect to which<FONT STYLE="letter-spacing: 1.4pt">
</FONT>such taxes<FONT STYLE="letter-spacing: 0.3pt"> </FONT>are paid. All reimbursements from<FONT STYLE="letter-spacing: 1.45pt">
</FONT>owners <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of Lease Burdens,<FONT STYLE="letter-spacing: 0.4pt"> </FONT>whether<FONT STYLE="letter-spacing: 0.55pt">
</FONT>obtained<FONT STYLE="letter-spacing: 1pt"> </FONT>in cash<FONT STYLE="letter-spacing: 1.4pt"> </FONT>or by deduction from
Lease Burdens, on<FONT STYLE="letter-spacing: 0.6pt"> </FONT>account of any taxes <FONT STYLE="letter-spacing: 0.25pt"> </FONT>paid
for<FONT STYLE="letter-spacing: 0.35pt"> </FONT>such owners shall be paid<FONT STYLE="letter-spacing: 1.4pt"> </FONT>or credited
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>to the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Parties in the same <FONT STYLE="letter-spacing: 0.95pt">
</FONT>proportions<FONT STYLE="letter-spacing: 0.55pt"> </FONT>as such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>taxes <FONT STYLE="letter-spacing: 1pt">
</FONT>were charged to such Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.3 Transfer of
Interests. In<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the event of a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>transfer by
one<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Party to another under the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>provisions
of this <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Agreement of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>any <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Committed Working Interest<FONT STYLE="letter-spacing: 1pt"> </FONT>or of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>any
other interest<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in any <FONT STYLE="letter-spacing: 0.95pt"> </FONT>well <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or in <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the materials and equipment in any well, or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>in the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>event <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of the reversion of
any relinquished interest<FONT STYLE="letter-spacing: 0.35pt"> </FONT>as in this <FONT STYLE="letter-spacing: 1.4pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 1.45pt">
</FONT>provided, the <FONT STYLE="letter-spacing: 1pt"> </FONT>taxes above mentioned assessed <FONT STYLE="letter-spacing: 0.25pt">
</FONT>against the <FONT STYLE="letter-spacing: 1pt"> </FONT>transferred or <FONT STYLE="letter-spacing: 0.4pt"> </FONT>reverted
interest<FONT STYLE="letter-spacing: 0.05pt"> </FONT>for the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>taxable<FONT STYLE="letter-spacing: 0.35pt">
</FONT>period in which such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>transfer<FONT STYLE="letter-spacing: 0.4pt"> </FONT>or
reversion occurs<FONT STYLE="letter-spacing: 0.95pt"> </FONT>shall be apportioned among said Parties so that <FONT STYLE="letter-spacing: 0.3pt">
</FONT>each shall bear the percentage of such taxes <FONT STYLE="letter-spacing: 0.05pt"> </FONT>which is<FONT STYLE="letter-spacing: 0.35pt">
</FONT>proportionate to that <FONT STYLE="letter-spacing: 0.6pt"> </FONT>portion of the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>taxable
period during which it owned <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.4 Notices and
Returns. Each<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Party shall promptly furnish<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Unit
Operator with copies<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of notices, assessments, levies,<FONT STYLE="letter-spacing: 1.3pt">
</FONT>or<FONT STYLE="letter-spacing: 0.4pt"> </FONT>tax statements received by<FONT STYLE="letter-spacing: 0.25pt"> </FONT>it<FONT STYLE="letter-spacing: 0.6pt">
</FONT>pertaining to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the taxes to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>be paid
by Unit Operator. Unit Operator shall<FONT STYLE="letter-spacing: 0.45pt"> </FONT>make<FONT STYLE="letter-spacing: 1pt"> </FONT>such
returns,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>reports, and<FONT STYLE="letter-spacing: 1pt"> </FONT>statements as may be
required by law<FONT STYLE="letter-spacing: 0.35pt"> </FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>connection with<FONT STYLE="letter-spacing: 0.15pt">
</FONT>any taxes<FONT STYLE="letter-spacing: 0.35pt"> </FONT>above provided to<FONT STYLE="letter-spacing: 1pt"> </FONT>be<FONT STYLE="letter-spacing: 1pt">
</FONT>paid by it<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and shall furnish<FONT STYLE="letter-spacing: 0.3pt"> </FONT>copies<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the Parties<FONT STYLE="letter-spacing: 0.15pt"> </FONT>upon request. It shall
notify<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the Parties of any tax which it does not<FONT STYLE="letter-spacing: 1pt"> </FONT>propose
to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>pay<FONT STYLE="letter-spacing: 1pt"> </FONT>before<FONT STYLE="letter-spacing: 0.35pt">
</FONT>such tax becomes delinquent.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 1pt">
</FONT>22</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>WITHDRAWAL OF TRACTS AND UNCOMMITTED
INTERESTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">22.1 Right of<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Withdrawal. If the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>owner<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of any<FONT STYLE="letter-spacing: 1.4pt">
</FONT>substantial<FONT STYLE="letter-spacing: 0.25pt"> </FONT>interest in a<FONT STYLE="letter-spacing: 0.6pt"> </FONT>tract<FONT STYLE="letter-spacing: 0.05pt">
</FONT>within the Unit Area fails or <FONT STYLE="letter-spacing: 0.35pt"> </FONT>refuses to <FONT STYLE="letter-spacing: 0.15pt">
</FONT>join in the Unit Agreement, then such tract may be withdrawn from the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>Unit Agreement,
as provided <FONT STYLE="letter-spacing: 0.35pt"> </FONT>in the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">22.2 Non&middot;Withdrawal.
Should the Party or Parties<FONT STYLE="letter-spacing: 0.35pt"> </FONT>having the right under the Unit Agreement to withdraw a
tract from the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Unit Agreement fail to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>exercise
such right,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>then all payments and liabilities accruing to the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>owners of uncommitted interests<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in<FONT STYLE="letter-spacing: 1pt"> </FONT>such
tract<FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall be paid<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and borne by such Party<FONT STYLE="letter-spacing: 1.4pt">
</FONT>or Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 1pt">
</FONT>23</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>COMPENSATORY<FONT STYLE="letter-spacing: 1.3pt">
</FONT>ROYA<FONT STYLE="letter-spacing: 0.3pt">L</FONT>TIES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">23.1 Notice. Whenever
demand is made in accordance with<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Unit
Agreement for<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the payment of compensatory royalties, Unit Operator shall give<FONT STYLE="letter-spacing: 1.3pt">
</FONT>notice thereof to each<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Party affected<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by
the demand.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">23.2 Demand for
Failure to Drill a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Development Well. If<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the
demand for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>compensatory<FONT STYLE="letter-spacing: 0.45pt"> </FONT>royalties results
from<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the failure to<FONT STYLE="letter-spacing: 1.45pt"> </FONT>have Drilled<FONT STYLE="letter-spacing: 0.95pt">
</FONT>a Development Well and such well is not Drilled, then Unit</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">18</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING<FONT STYLE="letter-spacing: 0.55pt">
</FONT>AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Operator<FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall pay such compensatory royalties. Such payment shall be<FONT STYLE="letter-spacing: 0.25pt"> </FONT>charged as<FONT STYLE="letter-spacing: 1pt">
</FONT>Costs incurred in operations<FONT STYLE="letter-spacing: 0.7pt"> </FONT>within the<FONT STYLE="letter-spacing: 0.25pt">
</FONT>participating area involved.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">23.3 Demand <FONT STYLE="letter-spacing: 1.45pt">
</FONT>for Failure to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Drill a Well Other Than <FONT STYLE="letter-spacing: 1.45pt">
</FONT>a Development Well. If the demand for compensatory royalties<FONT STYLE="letter-spacing: 0.55pt"> </FONT>results from the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>failure to have Drilled a well other than a<FONT STYLE="letter-spacing: 1pt"> </FONT>Development Well and such well is<FONT STYLE="letter-spacing: 0.55pt">
</FONT>not<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Drilled, <FONT STYLE="letter-spacing: 0.25pt">t</FONT>hen<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Unit Operator shall<FONT STYLE="letter-spacing: 0.7pt"> </FONT>pay<FONT STYLE="letter-spacing: 0.7pt"> </FONT>such<FONT STYLE="letter-spacing: 1.45pt">
</FONT>compensatory royalties.<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Such payment shall be chargeable to and borne by<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the Parties who would be obligated to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>bear the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Costs of such well<FONT STYLE="letter-spacing: 0.7pt"> </FONT>if the well<FONT STYLE="letter-spacing: 1.4pt"> </FONT>were
Drilled as a Required Well<FONT STYLE="letter-spacing: 1.45pt"> </FONT>under Subdivision B<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Section<FONT STYLE="letter-spacing: 0.3pt"> </FONT>10.4.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 24</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SEPARATE<FONT STYLE="letter-spacing: 1.45pt">
</FONT>MEASUREMENT<FONT STYLE="letter-spacing: 0.4pt"> </FONT>AND<FONT STYLE="letter-spacing: 0.35pt"> </FONT>SALVAGE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">24.1<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Separate Measurement.<FONT STYLE="letter-spacing: 0.45pt"> </FONT>If a <FONT STYLE="letter-spacing: 0.25pt"> </FONT>well
completed as a producer <FONT STYLE="letter-spacing: 1.3pt"> </FONT>of unitized substances<FONT STYLE="letter-spacing: 0.7pt">
</FONT>is in <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or becomes<FONT STYLE="letter-spacing: 0.4pt"> </FONT>included <FONT STYLE="letter-spacing: 0.35pt">
</FONT>in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>a<FONT STYLE="letter-spacing: 0.45pt"> </FONT>participating area <FONT STYLE="letter-spacing: 0.45pt">
</FONT>but is<FONT STYLE="letter-spacing: 0.55pt"> </FONT>not owned<FONT STYLE="letter-spacing: 1pt"> </FONT>on an Acreage Basis
by all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the Parties<FONT STYLE="letter-spacing: 0.4pt"> </FONT>within such participating
area <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and if,<FONT STYLE="letter-spacing: 0.45pt"> </FONT>within <FONT STYLE="letter-spacing: 0.6pt">
</FONT>thirty<FONT STYLE="letter-spacing: 0.15pt"> </FONT>(30)<FONT STYLE="letter-spacing: 0.55pt"> </FONT>days<FONT STYLE="letter-spacing: 1.4pt">
</FONT>after <FONT STYLE="letter-spacing: 0.45pt"> </FONT>request<FONT STYLE="letter-spacing: 0.35pt"> </FONT>therefor<FONT STYLE="letter-spacing: 0.3pt">
</FONT>by any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>interested Party, a method of measuring<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Production<FONT STYLE="letter-spacing: 0.15pt"> </FONT>from such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>well without<FONT STYLE="letter-spacing: 0.35pt">
</FONT>the necessity <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of additional facilities does not receive<FONT STYLE="letter-spacing: 1.45pt">
</FONT>the Approval of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Parties, then <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit
Operator shall <FONT STYLE="letter-spacing: 0.45pt"> </FONT>install such additional tankage, flow lines, or other facilities for
separate measurement of the unitized substances produced from such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well<FONT STYLE="letter-spacing: 0.45pt">
</FONT>as Unit <FONT STYLE="letter-spacing: 1.4pt"> </FONT>Operator may <FONT STYLE="letter-spacing: 0.25pt"> </FONT>deem suitable.
The Costs of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>such facilities for separate<FONT STYLE="letter-spacing: 1.45pt"> </FONT>measurement<FONT STYLE="letter-spacing: 0.7pt">
</FONT>shall be charged to and borne<FONT STYLE="letter-spacing: 1.4pt"> </FONT>by the Drilling Party for<FONT STYLE="letter-spacing: 0.25pt">
</FONT>such<FONT STYLE="letter-spacing: 1.4pt"> </FONT>well and treated<FONT STYLE="letter-spacing: 0.15pt"> </FONT>as<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Costs incurred in operating such well, notwithstanding<FONT STYLE="letter-spacing: 0.4pt"> </FONT>any other provisions of
this<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">24.2 Salvaged Materials.<FONT STYLE="letter-spacing: 0.25pt">
</FONT>If<FONT STYLE="letter-spacing: 0.6pt"> </FONT>any materials or equipment<FONT STYLE="letter-spacing: 0.4pt"> </FONT>are
salvaged from a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>well completed as a producer after <FONT STYLE="letter-spacing: 0.55pt">
</FONT>being<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Drilled, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Deepened, Plugged
Back,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>or Completed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>otherwise<FONT STYLE="letter-spacing: 0.05pt">
</FONT>than <FONT STYLE="letter-spacing: 0.4pt"> </FONT>for the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>account <FONT STYLE="letter-spacing: 0.35pt">
</FONT>of all <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the Parties entitled<FONT STYLE="letter-spacing: 0.55pt"> </FONT>to<FONT STYLE="letter-spacing: 1.4pt">
</FONT>participate therein before reversion to the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Non-Drilling Party of<FONT STYLE="letter-spacing: 0.55pt">
</FONT>its relinquished <FONT STYLE="letter-spacing: 0.45pt"> </FONT>interest in the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>well,<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the proceeds derived <FONT STYLE="letter-spacing: 0.05pt"> </FONT>from the sale thereof or,<FONT STYLE="letter-spacing: 0.55pt">
</FONT>if not<FONT STYLE="letter-spacing: 0.45pt"> </FONT>sold,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt">
</FONT>Salvage Value thereof, shall <FONT STYLE="letter-spacing: 0.7pt"> </FONT>be treated in<FONT STYLE="letter-spacing: 0.95pt">
</FONT>the same manner as proceeds of Production from such well<FONT STYLE="letter-spacing: 0.45pt"> </FONT>for<FONT STYLE="letter-spacing: 0.3pt">
</FONT>the purpose of determining reversion to the Non-Drilling Party of its relinquished interest in<FONT STYLE="letter-spacing: 1.4pt">
</FONT>such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 25</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ENHANCED RECOVERY AND PRESSURE<FONT STYLE="letter-spacing: 1pt">
</FONT>MAINTENANCE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">25.1 Consent Required.
Unit Operator shall not undertake any program of enhanced<FONT STYLE="letter-spacing: 0.95pt"> </FONT>recovery or pressure maintenance
involving injection of gas,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>water, or other substance by any<FONT STYLE="letter-spacing: 1.3pt">
</FONT>method, whether now known or<FONT STYLE="letter-spacing: 0.55pt"> </FONT>hereafter devised, without first obtaining the
consent of Parties owning, on an Acreage Basis, not less than <U> 90 </U>%<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Committed<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Working Interests in<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the
participating area affected by any such program. After the Parties have voted to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>undertake
a<FONT STYLE="letter-spacing: 1.4pt"> </FONT>program<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.05pt">
</FONT>enhanced<FONT STYLE="letter-spacing: 1.4pt"> </FONT>recovery or pressure maintenance in<FONT STYLE="letter-spacing: 0.55pt">
</FONT>accordance with<FONT STYLE="letter-spacing: 1.45pt"> </FONT>this Section 25.1,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the
conduct of such program shall be subject to supervision by the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.15pt">
</FONT>as set forth in Article 14.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">25.2 Above-Ground
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Facilities. This Agreement<FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.25pt">
</FONT>not <FONT STYLE="letter-spacing: 1pt"> </FONT>be deemed to <FONT STYLE="letter-spacing: 0.3pt"> </FONT>require any <FONT STYLE="letter-spacing: 1.45pt">
</FONT>Party to participate in<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>construction
or operation of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>any <FONT STYLE="letter-spacing: 0.6pt"> </FONT>gasoline plant, sulphur
recovery plant, <FONT STYLE="letter-spacing: 1pt"> </FONT>dewaxing plant, or other above-ground facilities to process<FONT STYLE="letter-spacing: 0.7pt">
</FONT>or otherwise treat Production, other than such<FONT STYLE="letter-spacing: 0.6pt"> </FONT>facilities as may be<FONT STYLE="letter-spacing: 0.7pt">
</FONT>required for<FONT STYLE="letter-spacing: 0.7pt"> </FONT>treating Production in ordinary<FONT STYLE="letter-spacing: 0.6pt">
</FONT>lease operations and such facilities<FONT STYLE="letter-spacing: 0.05pt"> </FONT>as<FONT STYLE="letter-spacing: 1.45pt">
</FONT>may <FONT STYLE="letter-spacing: 0.05pt"> </FONT>be required<FONT STYLE="letter-spacing: 0.95pt"> </FONT>in the conduct
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>operations authorized<FONT STYLE="letter-spacing: 1.4pt">
</FONT>under <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Section <FONT STYLE="letter-spacing: 0.6pt"> </FONT>25.1.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 1pt">
</FONT>26</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>TRANSFERS<FONT STYLE="letter-spacing: 0.05pt">
</FONT>OF INTEREST</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">26.1 Sale by Unit
Operator.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>If Unit Operator<FONT STYLE="letter-spacing: 0.55pt"> </FONT>sells all its
Committed Working <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Interests,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>it<FONT STYLE="letter-spacing: 1.45pt">
</FONT>shall resign and a<FONT STYLE="letter-spacing: 1.3pt"> </FONT>new Unit <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Operator
shall be selected as provided <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Unit
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">26.2 Assumption
of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Obligations. No<FONT STYLE="letter-spacing: 0.6pt"> </FONT>transfer of any Committed<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Working Interest shall be effective unless<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the same is made expressly subject
to the Unit Agreement and<FONT STYLE="letter-spacing: 1pt"> </FONT>this Agreement and<FONT STYLE="letter-spacing: 1pt"> </FONT>the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>transferee agrees in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>writing to assume and perform all obligations of the transferor
under the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Agreement and this Agreement
insofar as they relate to<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>interest assigned,
except <FONT STYLE="letter-spacing: 0.25pt"> </FONT>that such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>assumption of obligations
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>not be<FONT STYLE="letter-spacing: 0.25pt">
</FONT>required<FONT STYLE="letter-spacing: 0.45pt"> </FONT>in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>case of a transfer by<FONT STYLE="letter-spacing: 0.35pt">
</FONT>mortgage or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>deed<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of trust as security<FONT STYLE="letter-spacing: 0.05pt">
</FONT>for<FONT STYLE="letter-spacing: 0.6pt"> </FONT>indebtedness.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">26.3 Effective
Date. A transfer of Committed Working Interests shall not be effective<FONT STYLE="letter-spacing: 1pt"> </FONT>as<FONT STYLE="letter-spacing: 0.3pt">
</FONT>among<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the Parties<FONT STYLE="letter-spacing: 0.25pt"> </FONT>until the first<FONT STYLE="letter-spacing: 1.45pt">
</FONT>day of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>month next following the delivery to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Unit Operator of the original or<FONT STYLE="letter-spacing: 0.6pt"> </FONT>a certified copy of the<FONT STYLE="letter-spacing: 1.3pt">
</FONT>instrument of transfer<FONT STYLE="letter-spacing: 0.95pt"> </FONT>conforming to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the
requirements of Section 26.2. In<FONT STYLE="letter-spacing: 0.7pt"> </FONT>no event shall a transfer<FONT STYLE="letter-spacing: 1.3pt">
</FONT>of Committed <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Working <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Interests
relieve <FONT STYLE="letter-spacing: 1.45pt"> </FONT>the transferring Party<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of<FONT STYLE="letter-spacing: 1pt">
</FONT>any obligations accrued <FONT STYLE="letter-spacing: 0.15pt"> </FONT>under this Agreement prior to said effective date,
for<FONT STYLE="letter-spacing: 0.35pt"> </FONT>which purpose any obligation assumed by the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>transferor to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>participate in the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Drilling,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Deepening, Plugging Back,<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or Completing of a well<FONT STYLE="letter-spacing: 0.55pt">
</FONT>prior to such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>effective date <FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall
be deemed an accrued obligation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 27</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RELEASE FROM OBLIGATIONS<FONT STYLE="letter-spacing: 0.35pt">
</FONT>AND<FONT STYLE="letter-spacing: 0.15pt"> </FONT>SURRENDER</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">27.1 Surrender
or Release Within Participating Area. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>A<FONT STYLE="letter-spacing: 1pt"> </FONT>Committed
Working Interest in land within a participating area<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall not be surrendered<FONT STYLE="letter-spacing: 0.35pt">
</FONT>except with the consent<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of all Parties within such participating area. <FONT STYLE="letter-spacing: 0.35pt">
</FONT>However, a Party <FONT STYLE="letter-spacing: 0.55pt"> </FONT>who owns a Committed <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Working Interest in land <FONT STYLE="letter-spacing: 1.4pt"> </FONT>within a participating area and who is not <FONT STYLE="letter-spacing: 0.05pt">
</FONT>at <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>time committed to participate
in <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Drilling, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Deepening, Plugging Back, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or Completing<FONT STYLE="letter-spacing: 1pt"> </FONT>of
a well <FONT STYLE="letter-spacing: 0.35pt"> </FONT>within such participating area may be relieved of<FONT STYLE="letter-spacing: 0.95pt">
</FONT>further obligations with <FONT STYLE="letter-spacing: 0.05pt"> </FONT>respect to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such
participating area,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>as then constituted, by executing and delivering<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to Unit <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operator <FONT STYLE="letter-spacing: 0.45pt"> </FONT>an assignment
conveying to all<FONT STYLE="letter-spacing: 0.45pt"> </FONT>other Parties within such participating area all Commit ted Working
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Interests owned by such Party in lands within the participating<FONT STYLE="letter-spacing: 0.45pt">
</FONT>area, together<FONT STYLE="letter-spacing: 0.95pt"> </FONT>with <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">19</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">entire<FONT STYLE="letter-spacing: 0.05pt">
</FONT>interest of such Party in<FONT STYLE="letter-spacing: 1pt"> </FONT>any and 21l wells, materials,<FONT STYLE="letter-spacing: 1pt">
</FONT>equipment, and other <FONT STYLE="letter-spacing: 0.35pt"> </FONT>property <FONT STYLE="letter-spacing: 0.4pt"> </FONT>within
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>or pertaining<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to such participating<FONT STYLE="letter-spacing: 0.45pt">
</FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">27.2 Procedure
on<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Surrender or Release Outside Participating Area.<FONT STYLE="letter-spacing: 1pt">
</FONT>Whenever a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Parties owning
100% of the Committed <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Working<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Interest in<FONT STYLE="letter-spacing: 0.55pt">
</FONT>any tract <FONT STYLE="letter-spacing: 0.25pt"> </FONT>which is not<FONT STYLE="letter-spacing: 0.35pt"> </FONT>within any
participating area desire to surrender said 100% interest, such<FONT STYLE="letter-spacing: 1pt"> </FONT>Party or Parties shall
give to all other Parties notice<FONT STYLE="letter-spacing: 0.35pt"> </FONT>thereof, describing such Committed Working <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Interest. The Parties receiving <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such notice, or<FONT STYLE="letter-spacing: 0.6pt">
</FONT>any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of them, shall have the right <FONT STYLE="letter-spacing: 0.15pt"> </FONT>at<FONT STYLE="letter-spacing: 1.4pt">
</FONT>their <FONT STYLE="letter-spacing: 0.35pt"> </FONT>option to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>take from the Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>or Parties desiring to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>surrender an<FONT STYLE="letter-spacing: 1.4pt"> </FONT>assignment
of such Committed Working<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Interest by giving the Party or Parties desiring to surrender
notice<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of election so to do within thirty (30) days<FONT STYLE="letter-spacing: 0.7pt">
</FONT>after receipt<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of notice<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of the<FONT STYLE="letter-spacing: 0.55pt">
</FONT>desire to surrender. If such election is made<FONT STYLE="letter-spacing: 1pt"> </FONT>as above<FONT STYLE="letter-spacing: 0.7pt">
</FONT>provided, the<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or Parties
taking the assignment (which<FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall be taken <FONT STYLE="letter-spacing: 0.05pt"> </FONT>by
them<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in proportion to the acreage of their respective Committed Working <FONT STYLE="letter-spacing: 0.55pt">
</FONT>Interests among <FONT STYLE="letter-spacing: 0.4pt"> </FONT>themselves<FONT STYLE="letter-spacing: 0.05pt"> </FONT>in<FONT STYLE="letter-spacing: 1.4pt">
</FONT>the Unit <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Area) shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>pay the<FONT STYLE="letter-spacing: 1pt">
</FONT>assigning Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Parties for its or<FONT STYLE="letter-spacing: 0.55pt"> </FONT>their
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>share of the<FONT STYLE="letter-spacing: 1pt"> </FONT>Salvage Value of all wells,
if any, in which the<FONT STYLE="letter-spacing: 1pt"> </FONT>assigning Party or<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Parties
own<FONT STYLE="letter-spacing: 0.35pt"> </FONT>an interest and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>which are located on<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the land<FONT STYLE="letter-spacing: 1.4pt"> </FONT>covered<FONT STYLE="letter-spacing: 0.95pt"> </FONT>by such Committed
Working Interest,<FONT STYLE="letter-spacing: 0.25pt"> </FONT>which payment shall <FONT STYLE="letter-spacing: 0.4pt"> </FONT>be<FONT STYLE="letter-spacing: 0.05pt">
</FONT>made<FONT STYLE="letter-spacing: 0.95pt"> </FONT>upon receipt<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of the assignment.
If no<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Party elects to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>take such<FONT STYLE="letter-spacing: 0.95pt">
</FONT>assignment within said thirty (30) day<FONT STYLE="letter-spacing: 0.95pt"> </FONT>period,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>then the Party or<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Parties owning<FONT STYLE="letter-spacing: 1.3pt"> </FONT>such
Committed<FONT STYLE="letter-spacing: 0.95pt"> </FONT>Working Interest<FONT STYLE="letter-spacing: 0.25pt"> </FONT>may<FONT STYLE="letter-spacing: 0.7pt">
</FONT>surrender the same, if surrender thereof can<FONT STYLE="letter-spacing: 1.4pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>made in accordance with the<FONT STYLE="letter-spacing: 1pt"> </FONT>Unit Agreement. Whenever a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>owning less<FONT STYLE="letter-spacing: 0.55pt"> </FONT>than 100% of the<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Committed Working Interest in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>any tract desires to surrender its interest therein,
such<FONT STYLE="letter-spacing: 1pt"> </FONT>interest may be acquired <FONT STYLE="letter-spacing: 0.4pt"> </FONT>by the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>other Party<FONT STYLE="letter-spacing: 0.7pt"> </FONT>or Parties<FONT STYLE="letter-spacing: 0.35pt"> </FONT>owning <FONT STYLE="letter-spacing: 0.35pt">
</FONT>Committed Working <FONT STYLE="letter-spacing: 1pt"> </FONT>Interests<FONT STYLE="letter-spacing: 0.4pt"> </FONT>in said
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>tract without<FONT STYLE="letter-spacing: 1.3pt"> </FONT>notice <FONT STYLE="letter-spacing: 0.4pt">
</FONT>being given <FONT STYLE="letter-spacing: 0.4pt"> </FONT>to any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>other Parties
owning<FONT STYLE="letter-spacing: 1.45pt"> </FONT>interests within <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Area.<FONT STYLE="letter-spacing: 1.45pt">
</FONT>In<FONT STYLE="letter-spacing: 1pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt"> </FONT>event the<FONT STYLE="letter-spacing: 1pt">
</FONT>other Party or Parties owning Committed Working Interests in<FONT STYLE="letter-spacing: 1pt"> </FONT>the<FONT STYLE="letter-spacing: 1.45pt">
</FONT>tract<FONT STYLE="letter-spacing: 0.7pt"> </FONT>to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>be surrendered<FONT STYLE="letter-spacing: 0.45pt">
</FONT>do not desire to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>acquire such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>interest,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the interest shall be treated as a 100% interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">27.3 Accrued<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Obligations. A Party making an assignment or surrender in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>accordance with Section
27.1 or Section 27.2 shall <FONT STYLE="letter-spacing: 0.4pt"> </FONT>not be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>relieved
of its liability for any obligation accrued under this Agreement at the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>time the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>assignment or surrender is made <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or of the <FONT STYLE="letter-spacing: 0.4pt">
</FONT>obligation to bear <FONT STYLE="letter-spacing: 0.4pt"> </FONT>its share <FONT STYLE="letter-spacing: 1.4pt"> </FONT>of
the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Costs incurred <FONT STYLE="letter-spacing: 0.55pt"> </FONT>in any Drilling, Deepening,
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Plugging Back,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Completing operation<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in<FONT STYLE="letter-spacing: 1pt"> </FONT>which such Party
had elected to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>participate prior<FONT STYLE="letter-spacing: 0.95pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>making of such<FONT STYLE="letter-spacing: 1.45pt"> </FONT>assignment or
surrender, except<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the<FONT STYLE="letter-spacing: 1pt">
</FONT>extent that the Party or Parties receiving such assignment shall <FONT STYLE="letter-spacing: 0.05pt"> </FONT>assume, with
the Approval of the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>Parties, any and<FONT STYLE="letter-spacing: 1.3pt"> </FONT>all
obligations<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of the assigning Party <FONT STYLE="letter-spacing: 1.4pt"> </FONT>under
this <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Agreement and <FONT STYLE="letter-spacing: 0.35pt"> </FONT>under <FONT STYLE="letter-spacing: 0.7pt">
</FONT>the Unit <FONT STYLE="letter-spacing: 0.6pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 28</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>LIABILITY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.1 Liability.
The liability<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the Parties<FONT STYLE="letter-spacing: 1pt">
</FONT>hereunder shall be<FONT STYLE="letter-spacing: 0.6pt"> </FONT>several and not<FONT STYLE="letter-spacing: 1pt"> </FONT>joint
or collective. Each Party shall be responsible<FONT STYLE="letter-spacing: 0.7pt"> </FONT>only<FONT STYLE="letter-spacing: 1.4pt">
</FONT>for its obligations<FONT STYLE="letter-spacing: 0.55pt"> </FONT>as herein set out.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.2 No Partnership
Created.<FONT STYLE="letter-spacing: 0.6pt"> It</FONT> is <FONT STYLE="letter-spacing: 0.45pt"> </FONT>not <FONT STYLE="letter-spacing: 0.95pt">
</FONT>the intention of<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the Parties to <FONT STYLE="letter-spacing: 0.05pt"> </FONT>create,
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>nor <FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall this Agreement or<FONT STYLE="letter-spacing: 0.55pt">
</FONT>the Unit Agreement be construed as creating,<FONT STYLE="letter-spacing: 0.35pt"> </FONT>a mining or<FONT STYLE="letter-spacing: 0.6pt">
</FONT>other partnership or<FONT STYLE="letter-spacing: 0.35pt"> </FONT>association <FONT STYLE="letter-spacing: 0.45pt"> </FONT>between
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.45pt">
</FONT>or as rendering<FONT STYLE="letter-spacing: 0.7pt"> </FONT>them liable <FONT STYLE="letter-spacing: 0.6pt"> </FONT>as partners<FONT STYLE="letter-spacing: 0.45pt">
</FONT>or associates.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.3 Election.
Each <FONT STYLE="letter-spacing: 0.7pt"> </FONT>of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the Parties hereby <FONT STYLE="letter-spacing: 1pt">
</FONT>elects, under <FONT STYLE="letter-spacing: 0.95pt"> </FONT>the authority of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Section
761(a) <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Internal Revenue Code of 18 86 to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>be excluded from the<FONT STYLE="letter-spacing: 1pt"> </FONT>application of all the provisions of Subchapter K of<FONT STYLE="letter-spacing: 0.25pt">
</FONT>Chapter 1<FONT STYLE="letter-spacing: 0.55pt"> </FONT>of Subtitle<FONT STYLE="letter-spacing: 0.3pt"> </FONT>A<FONT STYLE="letter-spacing: 0.55pt">
</FONT>of the Internal Revenue <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Code<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of
1986. In<FONT STYLE="letter-spacing: 1.4pt"> </FONT>making<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this election, each Party
states that income<FONT STYLE="letter-spacing: 1pt"> </FONT>derived <FONT STYLE="letter-spacing: 0.4pt"> </FONT>by it from operations<FONT STYLE="letter-spacing: 0.35pt">
</FONT>under this Agreement<FONT STYLE="letter-spacing: 0.15pt"> </FONT>can be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>adequately
determined without computation<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>partnership
taxable income. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>If the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>income tax laws
of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the State or States in which the<FONT STYLE="letter-spacing: 1pt"> </FONT>Unit<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Area is located contain, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or<FONT STYLE="letter-spacing: 0.35pt"> </FONT>hereafter
contain, provisions similar to those<FONT STYLE="letter-spacing: 0.45pt"> </FONT>contained in<FONT STYLE="letter-spacing: 0.25pt">
</FONT>the Subchapter<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of the Internal Revenue <FONT STYLE="letter-spacing: 0.25pt">
</FONT>Code<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of 1986 above referred to under which a<FONT STYLE="letter-spacing: 0.95pt">
</FONT>similar<FONT STYLE="letter-spacing: 0.4pt"> </FONT>election <FONT STYLE="letter-spacing: 0.6pt"> </FONT>is permitted,<FONT STYLE="letter-spacing: 0.35pt">
</FONT>each of the Parties agrees that <FONT STYLE="letter-spacing: 0.6pt"> </FONT>such election shall be<FONT STYLE="letter-spacing: 0.25pt">
</FONT>exercised; <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>should the income<FONT STYLE="letter-spacing: 1.45pt">
</FONT>tax laws<FONT STYLE="letter-spacing: 0.4pt"> </FONT>of such State or States require evidence<FONT STYLE="letter-spacing: 1pt">
</FONT>of such<FONT STYLE="letter-spacing: 0.95pt"> </FONT>election, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Unit Operator
is authorized and<FONT STYLE="letter-spacing: 0.6pt"> </FONT>directed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to execute the
same on<FONT STYLE="letter-spacing: 0.25pt"> </FONT>behalf of each Party. Beginning with the first taxable year<FONT STYLE="letter-spacing: 1.4pt">
</FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation<FONT STYLE="letter-spacing: 0.45pt"> </FONT>under this Agreement,
each Party agrees that the deemed election provided by Federal <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Regulations Section
1<FONT STYLE="letter-spacing: 0.35pt">.</FONT>761-2(b)(2)(ii) <FONT STYLE="letter-spacing: 0.45pt"> </FONT>will apply, <FONT STYLE="letter-spacing: 0.45pt">
</FONT>and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>no Party will file an <FONT STYLE="letter-spacing: 0.3pt"> </FONT>application<FONT STYLE="letter-spacing: 1.4pt">
</FONT>under Federal Regulations Section 1.761&middot;2(b)(3)(i) <FONT STYLE="letter-spacing: 0.6pt"> </FONT>to revoke said <FONT STYLE="letter-spacing: 0.25pt">
</FONT>election. *See Page 22.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 29</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>NOTICES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">29.1 Giving<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and Receipt. Whenever a rig<FONT STYLE="letter-spacing: 0.95pt"> </FONT>is on<FONT STYLE="letter-spacing: 0.25pt"> </FONT>location,
every<FONT STYLE="letter-spacing: 1.45pt"> </FONT>notice and every response<FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.15pt">
</FONT>by telephone,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>confirmed<FONT STYLE="letter-spacing: 0.25pt"> </FONT>promptly in writing.<FONT STYLE="letter-spacing: 0.25pt"> </FONT>In<FONT STYLE="letter-spacing: 1.45pt">
</FONT>all other <FONT STYLE="letter-spacing: 0.3pt"> </FONT>instances,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>any notice,
response, consent, advice, or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>statement<FONT STYLE="letter-spacing: 0.25pt"> </FONT>herein
provided or permitted to<FONT STYLE="letter-spacing: 0.95pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>given shall
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in writing and<FONT STYLE="letter-spacing: 1.4pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>deemed given only when
received <FONT STYLE="letter-spacing: 0.25pt"> </FONT>by<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the Party <FONT STYLE="letter-spacing: 1.45pt">
</FONT>to whom the same <FONT STYLE="letter-spacing: 0.35pt"> </FONT>is directed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">29.2 Addresses.
For the foregoing purposes, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>each Party's<FONT STYLE="letter-spacing: 0.15pt"> </FONT>address
and telephone number shall be deemed to be<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the address and<FONT STYLE="letter-spacing: 1.3pt">
</FONT>telephone <FONT STYLE="letter-spacing: 0.45pt"> </FONT>number <FONT STYLE="letter-spacing: 0.3pt"> </FONT>set<FONT STYLE="letter-spacing: 1pt">
</FONT>forth <FONT STYLE="letter-spacing: 0.15pt"> </FONT>under or<FONT STYLE="letter-spacing: 0.35pt"> </FONT>opposite its signature
hereto, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>unless and until such Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>specifies
another<FONT STYLE="letter-spacing: 0.7pt"> </FONT>address or<FONT STYLE="letter-spacing: 0.55pt"> </FONT>telephone number<FONT STYLE="letter-spacing: 0.05pt">
</FONT>by not less than ten<FONT STYLE="letter-spacing: 0.95pt"> </FONT>(10) days' prior notice to all other Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 30</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EXECUTION</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">30.1<FONT STYLE="letter-spacing: 0.6pt">
</FONT>Counterparts.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>This Agreement may be executed in<FONT STYLE="letter-spacing: 1pt">
</FONT>counterparts,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>and all such counterparts taken together<FONT STYLE="letter-spacing: 0.6pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.55pt"> </FONT>deemed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>constitute<FONT STYLE="letter-spacing: 0.35pt"> </FONT>one and<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the same instrument.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">30.2 Ratification.<FONT STYLE="letter-spacing: 0.45pt">
</FONT>This Agreement may be executed by<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the execution<FONT STYLE="letter-spacing: 0.35pt">
</FONT>and delivery of a good and sufficient instrument of ratification, adopting and entering into this Agreement. Such ratification
shall have the same<FONT STYLE="letter-spacing: 1.4pt"> </FONT>effect<FONT STYLE="letter-spacing: 0.25pt"> </FONT>as if the<FONT STYLE="letter-spacing: 1.4pt">
</FONT>Party executing it had executed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>this Agreement or a<FONT STYLE="letter-spacing: 0.35pt">
</FONT>counterpart hereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">20</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY<FONT STYLE="letter-spacing: 0.55pt">
</FONT>MOUNTAIN UNIT OPERATING<FONT STYLE="letter-spacing: 0.7pt"> </FONT>AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 0.6pt">
</FONT>2 (Divided<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">30.3 Effect of
Signature. When this Agreement is executed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by two<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Parties, execution by each shall be deemed consideration for execution<FONT STYLE="letter-spacing: 0.3pt"> </FONT>by<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>other, and each Party<FONT STYLE="letter-spacing: 0.95pt"> </FONT>theretofore
or thereafter<FONT STYLE="letter-spacing: 0.55pt"> </FONT>executing this<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall thereupon become and remain<FONT STYLE="letter-spacing: 0.4pt"> </FONT>bound hereby until the termination of this
Agreement. <FONT STYLE="letter-spacing: 0.4pt"> </FONT>However, if<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the Unit Agreement<FONT STYLE="letter-spacing: 0.45pt">
</FONT>does not become effective within<FONT STYLE="letter-spacing: 1.3pt"> </FONT>twelve<FONT STYLE="letter-spacing: 0.25pt">
</FONT>(12)<FONT STYLE="letter-spacing: 0.6pt"> </FONT>months from and after the date of this<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Agreement, then,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>at the expiration of said period, this<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Agreement shall terminate.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 31</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUCCESSORS<FONT STYLE="letter-spacing: 0.35pt">
</FONT>AND ASSIGNS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">31.1 Covenants.
This<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Agreement shall <FONT STYLE="letter-spacing: 0.45pt"> </FONT>be binding<FONT STYLE="letter-spacing: 0.05pt">
</FONT>upon and<FONT STYLE="letter-spacing: 1pt"> </FONT>shall inure to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the benefit
of all Parties signing the <FONT STYLE="letter-spacing: 0.45pt"> </FONT>same, their heirs, <FONT STYLE="letter-spacing: 1.3pt">
</FONT>devisees, personal representatives, successors and assigns, and their successors <FONT STYLE="letter-spacing: 0.4pt"> </FONT>in
interest,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>whether or<FONT STYLE="letter-spacing: 0.95pt"> </FONT>not<FONT STYLE="letter-spacing: 1pt">
</FONT>it is signed <FONT STYLE="letter-spacing: 0.35pt"> </FONT>by<FONT STYLE="letter-spacing: 0.25pt"> </FONT>all the Parties
listed below. The<FONT STYLE="letter-spacing: 1.4pt"> </FONT>terms hereof shall constitute<FONT STYLE="letter-spacing: 0.6pt">
</FONT>covenants<FONT STYLE="letter-spacing: 0.35pt"> </FONT>running with<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the lands
and the Committed Working Interests<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the
Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 32</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>HEADINGS FOR CONVENIENCE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">32.1 Headings.<FONT STYLE="letter-spacing: 0.25pt">
</FONT>The Table<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Contents<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>headings used in<FONT STYLE="letter-spacing: 1.3pt"> </FONT>this<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Agreement<FONT STYLE="letter-spacing: 0.4pt"> </FONT>are inserted for convenience<FONT STYLE="letter-spacing: 0.4pt"> </FONT>only
and shall be<FONT STYLE="letter-spacing: 0.95pt"> </FONT>disregarded in construing this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 33</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RIGHT<FONT STYLE="letter-spacing: 0.4pt">
</FONT>OF APPEAL</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">33.1 Not Waived.
Nothing contained<FONT STYLE="letter-spacing: 0.25pt"> </FONT>in this <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.7pt"> </FONT>be deemed to constitute a waiver <FONT STYLE="letter-spacing: 0.7pt">
</FONT>by any Party of any right it <FONT STYLE="letter-spacing: 0.4pt"> </FONT>would <FONT STYLE="letter-spacing: 0.25pt"> </FONT>otherwise
have to contest the validity of any <FONT STYLE="letter-spacing: 1pt"> </FONT>law <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or
any <FONT STYLE="letter-spacing: 0.7pt"> </FONT>order or regulation of<FONT STYLE="letter-spacing: 0.95pt"> </FONT>governmental<FONT STYLE="letter-spacing: 0.3pt">
</FONT>authority (whether Federal, State, or local) relating to<FONT STYLE="letter-spacing: 1.45pt"> </FONT>or affecting the conduct
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>of operations<FONT STYLE="letter-spacing: 0.45pt"> </FONT>within <FONT STYLE="letter-spacing: 1.3pt">
</FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Unit Area <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or to appeal from
any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>order.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 34</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUBSEQUENT<FONT STYLE="letter-spacing: 0.05pt">
</FONT>JOINDER</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">34.1 Prior<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the Commencement of Operations. Prior to the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>commencement of operations under
the Unit Agreement, all <FONT STYLE="letter-spacing: 0.95pt"> </FONT>owners <FONT STYLE="letter-spacing: 1.3pt"> </FONT>of working<FONT STYLE="letter-spacing: 0.15pt">
</FONT>interests <FONT STYLE="letter-spacing: 0.55pt"> </FONT>in the Unit Area who have joined the Unit Agreement<FONT STYLE="letter-spacing: 0.55pt">
</FONT>shall be privileged<FONT STYLE="letter-spacing: 0.7pt"> </FONT>to execute<FONT STYLE="letter-spacing: 0.6pt"> </FONT>or
ratify this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">34.2 After Commencement<FONT STYLE="letter-spacing: 1.4pt">
</FONT>of Operations. After commencement<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of operations under the Unit Agreement, any
working interest in land within the Unit Area which is not then committed<FONT STYLE="letter-spacing: 0.25pt"> </FONT>hereto may
be committed to<FONT STYLE="letter-spacing: 0.45pt"> </FONT>this Agreement and to the Unit Agreement upon such reasonable terms
and conditions as may receive the Approval<FONT STYLE="letter-spacing: 1pt"> </FONT>of the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 35</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>CARRIED INTERESTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">35.1 Treatment
of. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>If any working<FONT STYLE="letter-spacing: 0.4pt"> </FONT>interest shown on Exhibit
B to<FONT STYLE="letter-spacing: 0.05pt"><I> </I></FONT>the Unit Agreement and committed thereto is<FONT STYLE="letter-spacing: 0.3pt">
</FONT>a<FONT STYLE="letter-spacing: 0.4pt"> </FONT>carried working interest, such interest shall, if the carrying<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>executes this Agreement, be deemed<FONT STYLE="letter-spacing: 1.4pt">
</FONT>to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>be, for the purpose<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of this<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Agreement, a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Committed Working Interest owned by the carrying<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 0.6pt">
</FONT>36</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EFFECTIVE DATE AND<FONT STYLE="letter-spacing: 0.6pt">
</FONT>TERM</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">36.1 Effective
Date and Term.<FONT STYLE="letter-spacing: 1.3pt"> </FONT>This Agreement shall become<FONT STYLE="letter-spacing: 0.15pt"> </FONT>effective
upon the effective date of the Unit Agreement,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall continue<FONT STYLE="letter-spacing: 0.45pt">
</FONT>in effect during<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the term<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Unit Agreement, and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall terminate concurrently<FONT STYLE="letter-spacing: 0.6pt">
</FONT>therewith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">36.2 Effect<FONT STYLE="letter-spacing: 0.25pt">
</FONT>of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Termination.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Termination<FONT STYLE="letter-spacing: 0.25pt">
</FONT>of this<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall not relieve
any Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of<FONT STYLE="letter-spacing: 0.35pt"> </FONT>its obligations then accrued
hereunder. Notwithstanding<FONT STYLE="letter-spacing: 0.45pt"> </FONT>termination of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this
Agreement, the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>provisions hereof <FONT STYLE="letter-spacing: 0.05pt"> </FONT>relating<FONT STYLE="letter-spacing: 0.15pt">
</FONT>to the charging<FONT STYLE="letter-spacing: 0.25pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>payment<FONT STYLE="letter-spacing: 0.4pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Costs and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the disposition<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>materials<FONT STYLE="letter-spacing: 0.25pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>equipment shall continue in<FONT STYLE="letter-spacing: 0.4pt"> </FONT>force until all<FONT STYLE="letter-spacing: 1pt">
</FONT>materials and equipment owned by the Parties have been<FONT STYLE="letter-spacing: 0.55pt"> </FONT>disposed of and until
final accounting<FONT STYLE="letter-spacing: 1.3pt"> </FONT>between Unit Operator and the <FONT STYLE="letter-spacing: 0.95pt">
</FONT>Parties has <FONT STYLE="letter-spacing: 0.7pt"> </FONT>been made. Termination of this Agreement shall <FONT STYLE="letter-spacing: 0.7pt">
</FONT>automatically terminate all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>rights and interests acquired by<FONT STYLE="letter-spacing: 0.25pt">
</FONT>virtue of this Agreement in lands within the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>Unit <FONT STYLE="letter-spacing: 1pt">
</FONT>Area, except <FONT STYLE="letter-spacing: 0.25pt"> </FONT>such <FONT STYLE="letter-spacing: 0.25pt"> </FONT>transfers<FONT STYLE="letter-spacing: 0.45pt">
</FONT>of Committed Working <FONT STYLE="letter-spacing: 1.3pt"> </FONT>Interests as have been evidenced by formal <FONT STYLE="letter-spacing: 0.95pt">
</FONT>written instruments<FONT STYLE="letter-spacing: 0.6pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>transfer.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">21</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE<FONT STYLE="letter-spacing: 0.95pt">
</FONT>37</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>OTHER PROVISIONS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify"><FONT STYLE="letter-spacing: 0.4pt">3</FONT>7.1&#9;<U>PAYMENT
OF<FONT STYLE="letter-spacing: 0.4pt"> </FONT>TAXES RELATING<FONT STYLE="letter-spacing: 1.45pt"> </FONT>TO<FONT STYLE="letter-spacing: 0.55pt">
</FONT>PRODUCTION.</U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&#9;A. At<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and during such<FONT STYLE="letter-spacing: 0.95pt"> </FONT>time,<FONT STYLE="letter-spacing: 0.6pt"> </FONT>or times,<FONT STYLE="letter-spacing: 0.7pt">
</FONT>as Non-Operator is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>exercising the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>right
to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>take in<FONT STYLE="letter-spacing: 1.45pt"> </FONT>kind or separately dispose of<FONT STYLE="letter-spacing: 1.4pt">
</FONT>its<FONT STYLE="letter-spacing: 1.45pt"> </FONT>proportionate <FONT STYLE="letter-spacing: 0.95pt"> </FONT>part of the production
as<FONT STYLE="letter-spacing: 1.4pt"> </FONT>set forth <FONT STYLE="letter-spacing: 1.45pt"> </FONT>in Paragraph 6.4 <FONT STYLE="letter-spacing: 1.45pt">
</FONT>hereof, Non-Operator shall pay, or arrange for the payment<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of, all production,
severance, gathering, sales or similar taxes<FONT STYLE="letter-spacing: 1.3pt"> </FONT>imposed upon<FONT STYLE="letter-spacing: 0.6pt">
</FONT>such part.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&#9;B. At<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and during such time, or times, as Unit Operator<FONT STYLE="letter-spacing: 0.45pt"> </FONT>is selling Non-Operator's proportionate<FONT STYLE="letter-spacing: 1pt">
</FONT>part of the production,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>as<FONT STYLE="letter-spacing: 1.45pt"> </FONT>set forth
m Paragraph 6.5 hereof, Unit Operator<FONT STYLE="letter-spacing: 0.7pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.6pt"> </FONT>pay,<FONT STYLE="letter-spacing: 0.25pt">
</FONT>or<FONT STYLE="letter-spacing: 0.05pt"> </FONT>arrange<FONT STYLE="letter-spacing: 0.55pt"> </FONT>for the payment of,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>all<FONT STYLE="letter-spacing: 0.4pt"> </FONT>production,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>severance, gathering,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>sales or<FONT STYLE="letter-spacing: 0.55pt"> </FONT>similar taxes<FONT STYLE="letter-spacing: 0.6pt"> </FONT>imposed upon<FONT STYLE="letter-spacing: 0.6pt">
</FONT>such part.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">37.2 <U>NON-CONSENT
INVESTMENT ADJUSTMENT.</U> Notwithstanding any<FONT STYLE="letter-spacing: 1.4pt"> </FONT>provision in this Agreement to the contrary,
no Party shall<FONT STYLE="letter-spacing: 1.45pt"> </FONT>be liable, without its consent, for any investment adjustment charge
under<FONT STYLE="letter-spacing: 1.3pt"> </FONT>the provisions of Section 13.3D or<FONT STYLE="letter-spacing: 1pt"> </FONT>13.4D,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>which charge is in<FONT STYLE="letter-spacing: 0.55pt"> </FONT>excess of the<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party's
credits under Article 13. <FONT STYLE="letter-spacing: 1pt"> </FONT>In the<FONT STYLE="letter-spacing: 0.25pt"> </FONT>event of<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>establishment, enlargement or<FONT STYLE="letter-spacing: 0.25pt"> </FONT>contraction
of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Participating Area, the<FONT STYLE="letter-spacing: 0.7pt">
</FONT>provisions of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Article 12,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>and<FONT STYLE="letter-spacing: 0.6pt">
</FONT>other provisions related thereto, shall be applicable to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>any investment adjustment
to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the same extent that<FONT STYLE="letter-spacing: 0.6pt"> </FONT>these provisions
are<FONT STYLE="letter-spacing: 0.6pt"> </FONT>applicable to a well drilled otherwise than<FONT STYLE="letter-spacing: 1.45pt">
</FONT>for the account of<FONT STYLE="letter-spacing: 1.3pt"> </FONT>all<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Parties entitled
to<FONT STYLE="letter-spacing: 1.4pt"> </FONT>participate<FONT STYLE="letter-spacing: 0.55pt"> </FONT>therein. Any Party<FONT STYLE="letter-spacing: 0.55pt">
</FONT>subject<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such charge may elect<FONT STYLE="letter-spacing: 1.3pt">
</FONT>not to pay<FONT STYLE="letter-spacing: 0.55pt"> </FONT>it<FONT STYLE="letter-spacing: 0.55pt"> </FONT>in<FONT STYLE="letter-spacing: 0.55pt">
</FONT>cash. <FONT STYLE="letter-spacing: 1.4pt"> </FONT>If, within 30 days after proposal for establishment,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>enlargement or con traction<FONT STYLE="letter-spacing: 1pt"> </FONT>of a Participating Area has been submitted <FONT STYLE="letter-spacing: 0.55pt">
</FONT>by Unit Operator in writing<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to the<FONT STYLE="letter-spacing: 1pt"> </FONT>Working
Interest<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Owners involved, a Party elects<FONT STYLE="letter-spacing: 1.45pt"> </FONT>not
to participate in the<FONT STYLE="letter-spacing: 0.6pt"> </FONT>investment adjustment applicable <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.55pt"> </FONT>establishment, enlargement
or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>contraction, that<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Party shall<FONT STYLE="letter-spacing: 0.55pt">
</FONT>be<FONT STYLE="letter-spacing: 0.4pt"> </FONT>a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Non-Drilling Party, and<FONT STYLE="letter-spacing: 0.45pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.45pt"> </FONT>deemed, as of the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>effective<FONT STYLE="letter-spacing: 1.4pt">
</FONT>date<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.55pt">
</FONT>resulting area in connection <FONT STYLE="letter-spacing: 0.25pt"> </FONT>with<FONT STYLE="letter-spacing: 1pt"> </FONT>which
such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>charge is made, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to have relinquished<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the interest <FONT STYLE="letter-spacing: 0.4pt"> </FONT>for which such charge is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>made
to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.45pt"> </FONT>Party, or Parties, who would otherwise
be entitled to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>receive<FONT STYLE="letter-spacing: 1.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.25pt">
</FONT>credit under Section 13.3D<FONT STYLE="letter-spacing: 1.3pt"> </FONT>or Section 13.4D, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>which<FONT STYLE="letter-spacing: 1.45pt"> </FONT>latter Party,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>or<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Parties, shall be the<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Drilling Party with respect to<FONT STYLE="letter-spacing: 0.35pt">
</FONT>this<FONT STYLE="letter-spacing: 0.6pt"> </FONT>relinquished interest. <FONT STYLE="letter-spacing: 1.4pt"> </FONT>The<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Drilling Party shall own the relinquished interest until<FONT STYLE="letter-spacing: 0.35pt"> </FONT>it reverts to<FONT STYLE="letter-spacing: 0.55pt">
</FONT>Non-Drilling Party pursuant to Article<FONT STYLE="letter-spacing: 1.45pt"> </FONT>12, except that<FONT STYLE="letter-spacing: 0.95pt">
</FONT>it<FONT STYLE="letter-spacing: 0.55pt"> </FONT>is<FONT STYLE="letter-spacing: 0.45pt"> </FONT>specifically understood that
the<FONT STYLE="letter-spacing: 0.35pt"> </FONT>Article 12.4B percentage for<FONT STYLE="letter-spacing: 0.6pt"> </FONT>exercise
of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>Non-Drilling<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Option applicable to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>establishment, enlargement<FONT STYLE="letter-spacing: 0.7pt">
</FONT>or<FONT STYLE="letter-spacing: 0.45pt"> </FONT>contraction of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the Participating
Area be<FONT STYLE="letter-spacing: 0.35pt"> </FONT>300%.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.3 <U>TAX ELECTION</U>.
(Continued) <FONT STYLE="letter-spacing: 0.45pt"> </FONT>This election<FONT STYLE="letter-spacing: 1.3pt"> </FONT>by the<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Parities to be<FONT STYLE="letter-spacing: 0.45pt"> </FONT>excluded<FONT STYLE="letter-spacing: 1.45pt"> </FONT>from the
application of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all <FONT STYLE="letter-spacing: 0.35pt"> </FONT>of <FONT STYLE="letter-spacing: 0.45pt">
</FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>provisions of Subchapter K does <FONT STYLE="letter-spacing: 0.6pt"> </FONT>not
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>apply in any way to any subsequent agreements between the Parties, or<FONT STYLE="letter-spacing: 0.7pt">
</FONT>with<FONT STYLE="letter-spacing: 1pt"> </FONT>third<FONT STYLE="letter-spacing: 1pt"> </FONT>parties,<FONT STYLE="letter-spacing: 1.3pt">
</FONT>concerning the sharing of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>costs for the drilling of any<FONT STYLE="letter-spacing: 1.3pt">
</FONT>wells<FONT STYLE="letter-spacing: 1.3pt"> </FONT>in the<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Unit Area. <FONT STYLE="letter-spacing: 0.05pt">
</FONT>The Parties reserve the<FONT STYLE="letter-spacing: 1pt"> </FONT>right<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to decide
with each such subsequent agreement whether they<FONT STYLE="letter-spacing: 0.55pt"> </FONT>elect<FONT STYLE="letter-spacing: 0.95pt">
</FONT>to be excluded from the<FONT STYLE="letter-spacing: 0.55pt"> </FONT>application of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Subchapter
K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.2pt 0 0; text-align: center">22</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.2pt 0 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold"><B>IN WITNESS WHEREOF, </B>the parties hereto have caused this agreement to be executed and have set opposite their respective names</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">the date of execution.</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-decoration: underline; text-align: center">UNIT OPERATOR&nbsp; AND WORKING INTEREST OWNER</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">O. F. DUFFIELD</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">By:&nbsp; /s/O. F. Duffield</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">O. F. Duffield</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Address:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16786 Kincheloe&nbsp; Road</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Siloam Springs, Arkansas 72761&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Date of Execution</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">August 5, 2004</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">STATE OF <U>&nbsp;OKLAHOMA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;)</U></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">) ss.</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">COUNTY OF <U> TULSA )</U></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 27pt">The foregoing instrument was acknowledged before me by <U> O. F. DUFFIELD </U>,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;as</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">MANAGER</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">of Cortez Exploration,&nbsp; LLC.</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 27pt">This <U> 5TH</U> day of <U> AUGUST </U>, 2004.</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">WITNESS my hand and official seal.</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">My Commission Expires:</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline">&nbsp;&nbsp;&nbsp; DECEMBER 4, 2010&nbsp;&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">/s/ Gale L. Staton</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Notary Public</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">UNIT OPERATOR SIGNATURE PAGE FOR THE</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">PARADISE UNIT AGREEMENT</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">NYE AND MINERAL COUNTIES, NEVADA</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 44%">&nbsp;</TD>
    <TD STYLE="width: 22%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD></TR>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 45.75pt 0 378.85pt"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 3.9pt 45.75pt 0 378.85pt"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 92%; font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">EXHIBIT &quot;1&quot;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Attached to and made a part of <U> the Unit Operating Agreement for the Gabbs Valley Unit Area, Mineral and Nye Counties, Nevada </U></TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">ACCOUNTING PROCEDURE</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">JOINT OPERATIONS</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">I.&nbsp; GENERAL PROVISIONS</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Definitions</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Joint&nbsp;&nbsp;&nbsp; Property&quot;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; real&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; personal&nbsp;&nbsp;&nbsp; property&nbsp;&nbsp;&nbsp; subject&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp; which&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Accounting&nbsp;&nbsp;&nbsp; Procedure</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;is attached.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations&quot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; proper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; development,&nbsp;&nbsp;&nbsp; operation,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; protection&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">maintenance of the Joint Property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Joint&nbsp;&nbsp;&nbsp; Account&quot;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; account&nbsp;&nbsp;&nbsp;&nbsp; showing&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; received&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; conduct&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operations and which are to be shared by the Parties.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Operator&quot; shall mean the party designated&nbsp; to conduct the Joint Operations.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;''Non-Operators&quot; shall mean the Parties to this agreement other than the Operator.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Parties&quot; shall mean Operator and Non-Operators</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;First&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level&nbsp;&nbsp;&nbsp;&nbsp; Supervisors&quot;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; primary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; direct</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">supervision&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; andlor&nbsp;&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp;&nbsp; labor&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; field&nbsp;&nbsp;&nbsp;&nbsp; operating</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;capacity.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Technical&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees&quot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; having&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; special&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; specific&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; engineering,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; geological&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">professional&nbsp;&nbsp;&nbsp;&nbsp; skills,&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp; primary&nbsp;&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; handling&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; specific&nbsp;&nbsp;&nbsp; operating&nbsp;&nbsp;&nbsp;&nbsp; conditions&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">problems for the benefit of the Joint Property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Personal Expenses'' shall mean travel and other reasonable reimbursable expenses of Operator's employees.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Material&quot; shall mean personal property, equipment&nbsp; or supplies acquired or held for use on the Joint Property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Controllable&nbsp;&nbsp;&nbsp; Material''&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1aterial&nbsp; which&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; time&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; so&nbsp;&nbsp;&nbsp; classified&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Material&nbsp; &nbsp;&nbsp;Classification&nbsp;&nbsp;&nbsp;&nbsp; Manual&nbsp;&nbsp;&nbsp; as</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">most recently recommended&nbsp; by the Council or Petroleum Accountants Societies.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Statement and Billings</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; bill&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; before&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; last&nbsp;&nbsp;&nbsp; day&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; each&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; their&nbsp;&nbsp;&nbsp; proportionate&nbsp;&nbsp;&nbsp;&nbsp; share&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Account&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; preceding&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; month.&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp;&nbsp; will&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; accompanied&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp; identify&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; authority&nbsp;&nbsp;&nbsp;&nbsp; for</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">expenditure,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lease&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; facility,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp; &nbsp;&nbsp;and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; summarized&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; appropriate&nbsp;&nbsp;&nbsp;&nbsp; classifications&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; investment&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">expense&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp; items&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Controllable&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; unusual&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; separately&nbsp;&nbsp;&nbsp;&nbsp; identified&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">fully described in detail.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Advances and Payments by Non-Operators</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless&nbsp;&nbsp;&nbsp;&nbsp; otherwise&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; agreement,&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; require&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; advance&nbsp;&nbsp;&nbsp;&nbsp; their</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">share&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; estimated&nbsp;&nbsp;&nbsp;&nbsp; cash&nbsp;&nbsp;&nbsp; outlay&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; succeeding&nbsp;&nbsp;&nbsp;&nbsp; month's&nbsp;&nbsp;&nbsp; operation&nbsp;&nbsp;&nbsp;&nbsp; within&nbsp;&nbsp;&nbsp;&nbsp; fifteen&nbsp;&nbsp;&nbsp; (15)&nbsp;&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp; receipt&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">billing&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; first&nbsp;&nbsp; day&nbsp;&nbsp; of&nbsp;&nbsp; the&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; advance&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; required,&nbsp;&nbsp;&nbsp; whichever&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; later.&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; adjust</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">each monthly billing to reflect advances&nbsp; received from the Non-Operators.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp;&nbsp; Non-Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; pay&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp; proportion&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; all&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp; within&nbsp;&nbsp;&nbsp; fifteen&nbsp;&nbsp; (15)&nbsp;&nbsp; days&nbsp;&nbsp; after&nbsp;&nbsp; receipt.&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; payment&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; not&nbsp;&nbsp; made</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Within such time, the unpaid balance shall bear interest monthly at the prime rate in effect at <U>Chase Manhattan Bank, New York, New York</U></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; day&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; delinquency&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; occurs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">maximum&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; permitted&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp;&nbsp; usury&nbsp;&nbsp;&nbsp; laws&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; state&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; located,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">whichever&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; lesser,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp; attorney's&nbsp;&nbsp;&nbsp; fees,&nbsp;&nbsp; court&nbsp;&nbsp;&nbsp; costs.&nbsp;&nbsp; &nbsp;and&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp; connection&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; collection&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; unpaid</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">amounts</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Adjustments</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Payment&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; any&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; prejudice&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; right of&nbsp;&nbsp; any&nbsp;&nbsp; Non-Operator to&nbsp;&nbsp; protest&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; question&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; correctness&nbsp;&nbsp;&nbsp; thereof.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">provided,&nbsp;&nbsp;&nbsp;&nbsp; however,&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rendered&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; during&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; shall</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">conclusively&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; presumed&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; true&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; correct&nbsp;&nbsp;&nbsp; after&nbsp; twenty-four&nbsp;&nbsp;&nbsp; (24)&nbsp;&nbsp;&nbsp; months&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; end&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; calendar</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">year,&nbsp;&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp;&nbsp; within&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; said&nbsp;&nbsp;&nbsp;&nbsp; twenty-four&nbsp;&nbsp;&nbsp;&nbsp; (24)&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; Non-Operator&nbsp;&nbsp;&nbsp;&nbsp; takes&nbsp;&nbsp;&nbsp;&nbsp; written&nbsp;&nbsp;&nbsp; exception&nbsp;&nbsp;&nbsp;&nbsp; thereto&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; makes</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">claim&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; adjustment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No&nbsp;&nbsp; adjustment&nbsp;&nbsp;&nbsp; favorable&nbsp;&nbsp; to&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; it&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; withm&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; same</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">prescribed&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; th1s&nbsp;&nbsp;&nbsp; paragraph&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; prevent&nbsp;&nbsp;&nbsp;&nbsp; adjustments&nbsp;&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; fi&quot;om&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; physical&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp;&nbsp; of</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Controllable Material as provided for in Section&nbsp; V.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">COPYRIGHT&copy; 1985 by the Council of Petroleum&nbsp; Accountants Societies.</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-1-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Audits</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A&nbsp;&nbsp; Non-Operator,&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp;&nbsp; notice&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; writing&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; Non-Operators,&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; have&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; right&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; audit</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; accounts&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; records&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; relating&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; wllhln&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; twenty-four</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(24)&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp; end&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; calendar &nbsp;&nbsp;&nbsp;year;&nbsp;&nbsp;&nbsp;&nbsp; provided,&nbsp;&nbsp;&nbsp; however,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; making&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp;&nbsp; audit&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; not</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">extend&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; time&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taking&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; written&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; exception&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustments&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; accounts&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Paragraph&nbsp;&nbsp;&nbsp;&nbsp; 4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Section&nbsp; 1.&nbsp;&nbsp;&nbsp; Where&nbsp;&nbsp;&nbsp;&nbsp; there&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; two&nbsp; or&nbsp; more&nbsp; Non-Operators,&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; make</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">every&nbsp;&nbsp;&nbsp; reasonable&nbsp;&nbsp;&nbsp;&nbsp; effort&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; conduct&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; audit&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; manner&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; Will&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; result&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; minimum&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; inconvenience</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; bear&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp;&nbsp; portion&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators'&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; audit&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; this</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">paragraph&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; audits&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; conducted&nbsp;&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp; once&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; year</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Without&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp;&nbsp; approval&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; resignation&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; removal&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">at the expense of those Non-Operators&nbsp; approvmg&nbsp; such audit.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Operator shall reply in writing to an audit report within 180 days after receipt of such report</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Approval By Non-Operators</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Where&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp; approval&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; expressly&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; sections&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; th1s</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Accounting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Procedure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Procedure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; attached&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; contains&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">contrary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; regard&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; thereto,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; notify&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp; proposal,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">agreement or approval&nbsp; of a majority in interest of the Non-Operators shall be controlling on all Non-Operators</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: bold 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">II.&nbsp; DIRECT CHARGES</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Operator shall charge the Joint Account With the following items:</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Ecological and&nbsp; Environmental</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Costs&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; result&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; regulatory&nbsp;&nbsp;&nbsp;&nbsp; requirements&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; satisfy</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">environmental&nbsp;&nbsp;&nbsp;&nbsp; considerations&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; include&nbsp;&nbsp;&nbsp;&nbsp; surveys&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp;&nbsp; ecological&nbsp;&nbsp;&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">archaeological&nbsp; nature and pollution control procedures as required by applicable laws and regulations.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Rentals and Royalties</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Lease rentals and royalties paid by Operator&nbsp; for the Joint Operations.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Labor</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ( 1)&nbsp;&nbsp;&nbsp; Salaries&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp; field&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; conduct&nbsp;&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint Operations</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Salaries of First level Supervisors&nbsp; in the field.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp; Salaries&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Technical&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; are</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; excluded from the overhead rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp; Salaries&nbsp; and&nbsp; wages&nbsp; of&nbsp; Technical&nbsp; Employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; temporarily&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; permanently&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; assigned&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; directly</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp; in the operation or the Joint Property if such charges are excluded from the overhead rates.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; holiday,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; vacation,&nbsp;&nbsp;&nbsp;&nbsp; sickness&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; disability&nbsp;&nbsp;&nbsp; benefits&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; &nbsp;other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; customary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; allowances&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp;&nbsp; salaries&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; 3A&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Such&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 3B&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; &quot;when&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; basis&quot;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; &quot;percentage&nbsp;&nbsp;&nbsp; assessment&quot;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp; the&nbsp; amount&nbsp; of&nbsp; salaries&nbsp; and&nbsp; wages&nbsp; chargeable&nbsp; to&nbsp; the&nbsp; Joint&nbsp; Account&nbsp; under&nbsp; Paragraph&nbsp; 3A&nbsp; of&nbsp; this&nbsp; Section&nbsp; II.&nbsp; If</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; percentage assessment&nbsp; is&nbsp; used, the rate shall be based on the Operator's cost experience.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenditures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; contributions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pursuant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; assessments&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1mposed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; authority&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; applicable&nbsp; to Operator's costs chargeable&nbsp; to the Joint Account under Paragraphs 3A and 3B of this Section II.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp;&nbsp;&nbsp;&nbsp; Personal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp;&nbsp; salaries&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; under</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraphs 3A and 3B of this Section II.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Employee Benefits</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; established&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plans&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; employees'&nbsp;&nbsp;&nbsp;&nbsp; group&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; life&nbsp;&nbsp;&nbsp;&nbsp; insurance,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hospitalization,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pension,&nbsp;&nbsp;&nbsp;&nbsp; retirement.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">stock&nbsp;&nbsp;&nbsp; purchase.&nbsp;&nbsp;&nbsp; thrift.&nbsp;&nbsp;&nbsp;&nbsp; bonus,&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp; plans&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; like&nbsp;&nbsp; nature.&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; labor&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp; Paragraphs&nbsp;&nbsp;&nbsp; 3A&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; 3B&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; exceed&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; percent</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">most recently recommended&nbsp; by the Council&nbsp; of Petroleum Accountants&nbsp; Societies</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-2-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material purchased or furnished by Operator for use on the Joint Property as provided under Section IV.&nbsp; Only such</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; purchased&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; transferred&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; Immediate&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">reasonably&nbsp;&nbsp;&nbsp; practical&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; consistent&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp; efficient&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; economical&nbsp;&nbsp;&nbsp; operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; accumulation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; surplus&nbsp;&nbsp;&nbsp; stocks&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">avoided.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Transportation</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Transportation of employees and&nbsp; Material necessary for the Joint&nbsp; Operations but subject to the following limitations:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; moved&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; warehouse&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; properties,&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; distance&nbsp;&nbsp;&nbsp; greater&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; distance&nbsp;&nbsp; from&nbsp;&nbsp; the &nbsp;&nbsp;&nbsp;nearest&nbsp;&nbsp;&nbsp; reliable&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp;&nbsp; where&nbsp;&nbsp; like</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; material is normally available or railway receiving point nearest the Joint Property unless agreed to by the Parties</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; surplus&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; moved&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; warehouse&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; storage&nbsp;&nbsp;&nbsp; point,&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; distance&nbsp;&nbsp;&nbsp; greater&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; distance&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; reliable&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp;&nbsp; where&nbsp;&nbsp;&nbsp; like&nbsp;&nbsp;&nbsp; material&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; normally</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; available,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp; rece1vmg&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp; No&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; moving&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; properties&nbsp;&nbsp; belonging&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parties.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; application&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; subparagraphs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; B&nbsp;&nbsp;&nbsp; above.&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; option&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; equalize&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp; trucking&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; is</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; avallable&nbsp;&nbsp;&nbsp; when&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; $400&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; less&nbsp;&nbsp; excluding&nbsp;&nbsp;&nbsp; accessorial&nbsp;&nbsp;&nbsp; charges.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; $400&nbsp;&nbsp;&nbsp; will&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; adjusted&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; amount most recently recommended by the Council of Petroleum Accountants Societies</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Services</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">The&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; services,&nbsp;&nbsp; equipment&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; utilities&nbsp;&nbsp;&nbsp; provided&nbsp; by&nbsp;&nbsp;&nbsp; outside&nbsp;&nbsp;&nbsp; sources,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp; excluded&nbsp; by&nbsp;&nbsp;&nbsp; Paragraph</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">10&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II&nbsp; and&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; i,&nbsp;&nbsp;&nbsp; ii,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; III,&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp; III.&nbsp; The&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp; consultant&nbsp;&nbsp;&nbsp; services&nbsp; and&nbsp; contract</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">services&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; technical&nbsp;&nbsp;&nbsp;&nbsp; personnel&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; engaged&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the&nbsp; &nbsp;&nbsp;Joint Property&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; excluded&nbsp;&nbsp;&nbsp;&nbsp; from the overhead</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">rates.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp; consultant&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; technical&nbsp;&nbsp;&nbsp; personnel&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; engaged&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Joint Property shall not be charged to the Joint Account unless previously agreed to by the Parties</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Equipment and&nbsp; Facilities&nbsp; Furnished By Operator</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; owned&nbsp;&nbsp;&nbsp; equipment&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; facilities&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; commensurate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; ownership&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; operation.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such &nbsp;&nbsp;&nbsp;&nbsp;rates&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; include&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; maintenance.&nbsp;&nbsp;&nbsp;&nbsp; repairs,&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; operating</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expense,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; insurance,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taxes,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; depreciation,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; interest&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; gross&nbsp;&nbsp;&nbsp;&nbsp; investment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp;&nbsp; accumulated&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;depreciation&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">exceed <U> twelve </U> percent (<U> 12 </U><I>%) </I>per annum Such rates shall not exceed average commercial</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rates currently prevailing in the immediate area of the Joint Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp; lieu&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; 1n&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 8A&nbsp;&nbsp;&nbsp; above.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; rnay&nbsp;&nbsp; elect&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp; average&nbsp;&nbsp;&nbsp; commercial&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; prevailmg&nbsp; &nbsp;&nbsp;in&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; immediate&nbsp;&nbsp;&nbsp;&nbsp; area&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp; 20%.&nbsp; For automotive equipment, Operator may elect to use rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published by the Petroleum Motor Transport Assoc1ation.</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Damages&nbsp; and&nbsp; Losses to Joint&nbsp; Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">All&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; expenses&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; repa1r&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; replacement&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp; because&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; damages&nbsp;&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">losses&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; by &nbsp;&nbsp;&nbsp;&nbsp;fire,&nbsp;&nbsp;&nbsp;&nbsp; flood,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; storm,&nbsp;&nbsp;&nbsp;&nbsp; theft,&nbsp;&nbsp;&nbsp;&nbsp; accident,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; cause,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gross</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">negligence&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; willful&nbsp;&nbsp;&nbsp; misconduct.&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; furnish&nbsp;&nbsp;&nbsp; Non-Operator&nbsp;&nbsp;&nbsp; written&nbsp;&nbsp;&nbsp;&nbsp; notice&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; damages&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; losses&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">soon as practicable after a report thereof has been received by Operator</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Legal&nbsp; Expense</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Expense&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; handling,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; investigating&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; settling&nbsp;&nbsp;&nbsp;&nbsp; litigation&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; claims,&nbsp;&nbsp;&nbsp; discharging&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; liens,&nbsp;&nbsp;&nbsp;&nbsp; payment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Judgment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">amounts&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; settlement&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; claims&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp; &nbsp;&nbsp;or&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; operations&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">protect&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; recover&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; legal&nbsp;&nbsp; staff&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; fees&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">outside&nbsp;&nbsp; attorneys&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; previously&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp; All&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; legal&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">covered&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; III&nbsp; unless&nbsp;&nbsp;&nbsp;&nbsp; otherwise&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; Section</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">I,&nbsp; Paragraph 3.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Taxes</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">All&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; every&nbsp;&nbsp;&nbsp; kind&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; nature&nbsp;&nbsp; assessed&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; levied&nbsp;&nbsp; upon&nbsp;&nbsp; or&nbsp;&nbsp; in&nbsp;&nbsp; connection&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp; the&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp; the&nbsp;&nbsp; operation&nbsp;&nbsp;&nbsp; thereof,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">or&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; production&nbsp;&nbsp; therefrom,&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp; have&nbsp;&nbsp;&nbsp; been&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; ad</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">valorem&nbsp;&nbsp;&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; based&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; whole&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;part&nbsp;&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp;&nbsp; separate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; valuations&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; party's&nbsp;&nbsp;&nbsp;&nbsp; working&nbsp;&nbsp;&nbsp;&nbsp; interest,&nbsp;&nbsp;&nbsp;&nbsp; then</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">notwithstanding&nbsp;&nbsp;&nbsp;&nbsp; anything&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; contrary&nbsp;&nbsp;&nbsp; herein,&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">hereto in accordance&nbsp; with the tax value generated&nbsp; by each party's working interest.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">- 3-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Insurance</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Net&nbsp;&nbsp;&nbsp; premiums&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp; for&nbsp;&nbsp; insurance&nbsp;&nbsp;&nbsp; requ1red&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; earned&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; protection&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">event&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp; are &nbsp;&nbsp;&nbsp;&nbsp;conducted&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; state&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; act&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; self-insurer&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; Worker's&nbsp;&nbsp;&nbsp; Compensation</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">and/or&nbsp;&nbsp;&nbsp; Employers&nbsp;&nbsp; Liability&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; respective&nbsp;&nbsp;&nbsp; state's&nbsp;&nbsp;&nbsp; laws.&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; may,&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; election,&nbsp;&nbsp;&nbsp; include&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; risk&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp; self</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">insurance program and&nbsp; in that&nbsp; event,&nbsp; Operator shall&nbsp; include a charge at Operator's cost&nbsp; not to exceed manual rates.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Abandonment and Reclamation</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Costs&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; abandonment&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property,&nbsp;&nbsp;&nbsp;&nbsp; Including&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; regulatory&middot;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">authority.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Communications</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; acquiring,&nbsp;&nbsp;&nbsp;&nbsp; leasing,&nbsp;&nbsp;&nbsp;&nbsp; installing,&nbsp;&nbsp;&nbsp; operating,&nbsp;&nbsp;&nbsp; repairing&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; maintaining&nbsp;&nbsp;&nbsp;&nbsp; communication&nbsp;&nbsp;&nbsp;&nbsp; systems,&nbsp;&nbsp;&nbsp;&nbsp; Including&nbsp;&nbsp;&nbsp;&nbsp; radio&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">microwave&nbsp;&nbsp;&nbsp; facilities&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; serving&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; event&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; communication&nbsp;&nbsp;&nbsp; facilities/ systems&nbsp;&nbsp;&nbsp; serving&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Property are Operator Owned,&nbsp; charges to the Joint&nbsp; Account shall&nbsp; be made&nbsp; as provided&nbsp; in Paragraph 8 of this Section II.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Other Expenditures</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Any&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; expenditure&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; covered&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; dealt&nbsp;&nbsp;&nbsp;&nbsp; With&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; foregoing&nbsp;&nbsp; provisions&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp; II,&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp; Section&nbsp;&nbsp; III&nbsp; and&nbsp;&nbsp;&nbsp; which</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">is&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; direct&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; proper&nbsp;&nbsp; conduct&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operations.</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">III.&nbsp;&nbsp; OVERHEAD</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Overhead- Drilling and Producing Operations</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; compensation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; administrative,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; supervision,&nbsp;&nbsp;&nbsp; office&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; warehousing&nbsp;&nbsp;&nbsp;&nbsp; costs.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; charge</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drilling and&nbsp; producing operations on either:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">( <B>X </B>) Fixed Rate Basis, Paragraph 1A, or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) Percentage Basis, Paragraph 1B</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; otherwise&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Parties,&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; lieu&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; expenses&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; offices&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp;&nbsp; burdens&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expenses&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; personnel,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp;&nbsp; under</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 3A,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; outside&nbsp;&nbsp;&nbsp;&nbsp; sources&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; connection&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; matters&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taxation,&nbsp;&nbsp;&nbsp; traffic,&nbsp;&nbsp;&nbsp; accounting&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; matters&nbsp;&nbsp;&nbsp; before&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; involving&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp; agencies&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; &nbsp;considered&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; included&nbsp;&nbsp;&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; above&nbsp;&nbsp; selected&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp; III&nbsp; unless&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp; are</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">agreed to by the Parties as a direct charge to the<I> </I>Joint Account.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries,&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal&nbsp;&nbsp;&nbsp;&nbsp; Expenses&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technical&nbsp;&nbsp;&nbsp;&nbsp; Employees&nbsp;&nbsp;&nbsp;&nbsp; and/or&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp; consultant</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp; and&nbsp; contract services of technical personnel directly employed on the&nbsp; Joint&nbsp; Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp; X&nbsp;&nbsp; ) shall&nbsp;&nbsp; be covered by the Overhead rates, or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) shall&nbsp; not be covered by the&nbsp; overhead rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">iii&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries,&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal&nbsp;&nbsp;&nbsp;&nbsp; Expenses&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Technical&nbsp;&nbsp;&nbsp; Employees&nbsp;&nbsp;&nbsp; and/or&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp;&nbsp; consultant&nbsp;&nbsp;&nbsp;&nbsp; services</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; technical&nbsp;&nbsp;&nbsp; personnel&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp; temporarily&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; permanently&nbsp;&nbsp;&nbsp; assigned&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; employed&nbsp;&nbsp;&nbsp;&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the operation&nbsp; of the&nbsp; Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) shall&nbsp; be covered by the overhead rates, or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp; X&nbsp;&nbsp; ) shall&nbsp; not be covered by the&nbsp; overhead rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0verhead- Fixed Rate&nbsp; Bass</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator shall&nbsp; charge the Joint&nbsp; Account at the&nbsp; following rates&nbsp; per&nbsp; well&nbsp; per month:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Drilling well Rate $<U> 6,500.00 </U></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Prorated for&nbsp; less than&nbsp; a full&nbsp; month)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Producing Well Rate $<U> 650.00 </U></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Application of Overhead- Fixed&nbsp; Rate&nbsp; Basis shall&nbsp; be&nbsp; as&nbsp; follows:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(a)<I> </I>Drilling Well Rate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(1)<I> </I>Charges for drilling wells shall begin on the date the well is spudded and terminate on the date</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp; rig,&nbsp;&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp;&nbsp; rig,&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp; units&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; released,&nbsp;&nbsp;&nbsp; whichever</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-4-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;later,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; sha ll&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; during&nbsp;&nbsp;&nbsp;&nbsp; suspensron&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp;&nbsp;&nbsp; operations</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp; fifteen&nbsp; (15)&nbsp; or&nbsp; more&nbsp; consecutive calendar days</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Charges&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; wells&nbsp;&nbsp;&nbsp;&nbsp; undergoing&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; type&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; workover&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; recompletion&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; live&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; consecutive&nbsp;&nbsp; work&nbsp;&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; more&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; applied&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp; workover&nbsp;&nbsp;&nbsp;&nbsp; operations,&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rig&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; units&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; workover</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; commence&nbsp;&nbsp;&nbsp; through&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; rig&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unit&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; release,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; during</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; suspension of operations for&nbsp; fifteen&nbsp; ( 15) or more&nbsp; consecutive calendar days.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp; Producing&nbsp; Well Rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp; An&nbsp;&nbsp;&nbsp; active&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp; produced&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; Injected&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; into&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; portion&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a one-well charge for the entire month.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp; active&nbsp;&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; multi-completed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; production&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; commingled&nbsp;&nbsp;&nbsp;&nbsp; down</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hole&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; providing&nbsp;&nbsp;&nbsp;&nbsp; each completion is considered a separate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well by the&nbsp; governing regulatory authority</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; inactive&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gas&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shut&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; because&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; overproduction&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; failure&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; purchaser&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; take&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; production&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; providing&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; gas&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; connected&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a permanent sales outlet.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plugging&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; abandonment&nbsp;&nbsp; &nbsp;&nbsp;operations</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; completed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whether&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp; has</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; produced except when&nbsp; drilling well&nbsp; rate applies.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(5) All other inactive wells (including but not limited to inactive wells covered <I>by </I>unit allowable, lease</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; allowable, transferred allowable, etc.)&nbsp; shall&nbsp; not qualify for an overhead charge.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp; &nbsp;&nbsp;rates&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; adjusted&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; first&nbsp;&nbsp;&nbsp;&nbsp; day&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; April&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; effective&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounting&nbsp;&nbsp;&nbsp; Procedure&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; attached&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; adjustment&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; computed&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; multiplying</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">the rate currently in use <I>by </I>the percentage increase or decrease in the average weekly earnings of Crude</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Petroleum&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; Gas&nbsp;&nbsp;&nbsp;&nbsp; Production&nbsp;&nbsp;&nbsp; Workers&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; last&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; compared&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; preceding&nbsp;&nbsp;&nbsp; as</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shown&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; index&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; average&nbsp;&nbsp; weekly&nbsp;&nbsp;&nbsp; earnings&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Crude&nbsp;&nbsp;&nbsp; Petroleum&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; Gas&nbsp;&nbsp;&nbsp;&nbsp; Production&nbsp;&nbsp;&nbsp; workers&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; published</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp; &nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; United&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; States&nbsp;&nbsp;&nbsp; Department&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Labor.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bureau&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Labor&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statistics,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; equivalent&nbsp;&nbsp;&nbsp; Canadian&nbsp;&nbsp;&nbsp; index&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; Statistics&nbsp;&nbsp;&nbsp; Canada,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; applicable.&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjusted&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; currently&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; use,&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; minus the&nbsp; computed adjustment.</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overhead- Percentage Basis</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(1)<I> </I>Operator shall charge the Joint Account at the following rates:</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Development</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Percent ( <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> 0/o) of the cost of development of the Joint Property exclusive of costs</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp; under&nbsp; Paragraph 10 of Sect1on&nbsp; II and all salvage credits.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Percent ( <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%</U>) of the cost of operating the Joint Property exclusive of costs provided</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; Paragraphs&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II,&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; salvage&nbsp;&nbsp;&nbsp; credits,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; value&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; inJected&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; substances&nbsp;&nbsp;&nbsp; purchased</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; secondary&nbsp;&nbsp;&nbsp; recovery&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; assessments&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; levied,&nbsp;&nbsp;&nbsp;&nbsp; assessed&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mineral interest in and&nbsp; to the Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Application of Overhead- Percentage Basis&nbsp; shall&nbsp; be as&nbsp; follows:</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; purpose&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; determining&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp; on&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; percentage&nbsp;&nbsp; basis&nbsp;&nbsp; under&nbsp;&nbsp; Paragraph&nbsp;&nbsp; 1B&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; this&nbsp;&nbsp; Section &nbsp;&nbsp;&nbsp;III,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; development&nbsp; shall&nbsp; include&nbsp; all&nbsp; costs&nbsp; in connection&nbsp; with drilling,&nbsp; re-drilling,&nbsp; deepening,&nbsp; or&nbsp; any&nbsp; remedial</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; operations&nbsp; &nbsp;on&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; wells&nbsp;&nbsp;&nbsp;&nbsp; involving&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp; rig&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; crew&nbsp;&nbsp;&nbsp;&nbsp; capable&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; producing</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; interval&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; also.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preliminary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expenditures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; preparation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expenditures&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp; in&nbsp;&nbsp; abandoning&nbsp;&nbsp;&nbsp; when&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; completed&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; producer.&nbsp; &nbsp;&nbsp;&nbsp;and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; orig1nal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; construction&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; installation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; assets,&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expansion&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp;&nbsp; assets&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; project&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; clearly</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;discernible&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp; asset,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; Major&nbsp;&nbsp;&nbsp; Construction&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; defined&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All&nbsp;&nbsp;&nbsp; other</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; costs shall&nbsp; be considered as operating.</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Overhead-Major&nbsp; Construction</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">To&nbsp;&nbsp;&nbsp;&nbsp; compensate&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; Overhead&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; construction&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; installation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp; assets,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; expansion&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">fixed&nbsp;&nbsp;&nbsp;&nbsp; assets,&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; project&nbsp;&nbsp;&nbsp; clearly&nbsp;&nbsp;&nbsp;&nbsp; discernible&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp;&nbsp; asset&nbsp;&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; development&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; operation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp; negotiate&nbsp;&nbsp;&nbsp; a&nbsp; &nbsp;&nbsp;&nbsp;rate&nbsp;&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; beginning&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; construction,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">- 5-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Account for overhead based on the following rates for any Major Construction project in excess of $<U> 25,000 </U></TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of first $100,000 or total cost if less, plus</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of costs in excess of $100.000 but less than $1.000.000, plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><I>C. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % </I>of costs in excess of $1.000,000.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Total&nbsp;&nbsp; cost&nbsp;&nbsp; shall&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; gross&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp; of&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp; one&nbsp;&nbsp; project.&nbsp;&nbsp;&nbsp;&nbsp; For&nbsp;&nbsp; the&nbsp;&nbsp; purpose&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; this&nbsp;&nbsp; paragraph,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; component&nbsp;&nbsp;&nbsp; parts&nbsp;&nbsp; of&nbsp;&nbsp; a&nbsp;&nbsp; single</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">project&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; treated&nbsp;&nbsp;&nbsp; separately&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; workover&nbsp;&nbsp;&nbsp; wells&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; artificial&nbsp;&nbsp;&nbsp;&nbsp; lift&nbsp;&nbsp;&nbsp;&nbsp; equipment&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">excluded.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Catastrophe&nbsp; Overhead</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">To&nbsp;&nbsp;&nbsp; compensate&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; event&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; expenditures&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; single&nbsp;&nbsp;&nbsp; occurrence&nbsp;&nbsp;&nbsp; due</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">to&nbsp;&nbsp;&nbsp; oil&nbsp;&nbsp;&nbsp;&nbsp; spill.&nbsp;&nbsp;&nbsp;&nbsp; blowout,&nbsp;&nbsp;&nbsp;&nbsp; explosion,&nbsp;&nbsp;&nbsp;&nbsp; fire,&nbsp;&nbsp;&nbsp;&nbsp; storm,&nbsp;&nbsp;&nbsp;&nbsp; hurricane.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; catastrophes&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties,&nbsp;&nbsp;&nbsp; which</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; restore&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; equivalent&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; condition&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; existed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; event&nbsp;&nbsp;&nbsp;&nbsp; causing&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">expenditures,&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp; negotiate&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; charging&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">for overhead&nbsp; based on the following rates:</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of total costs through $100,000; plus</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;3&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of total costs in excess of $100,000 but less than $1 ,000,000; plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">C. <I><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % </I>of total costs in excess of $1.000,000.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Expenditures subject <I>to </I>the overheads above will not be reduced by insurance recoveries, and no other overhead</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">provisions of this Section III shall apply.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Amendment&nbsp; of Rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">The overhead rates provided for in this Section III may be amended from time to time only <I>by </I>mutual agreement</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">between the Parties hereto if, in practice, the rates are found to be insufficient or excessive.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRICING OF JOINT ACCOUNT MATERIAL PURCHASES, TRANSFERS AND DISPOSITIONS</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator&nbsp;&nbsp;&nbsp;&nbsp; Is&nbsp;&nbsp;&nbsp; responsible&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; make&nbsp;&nbsp;&nbsp; proper&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; tImely&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; material</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">movements&nbsp;&nbsp;&nbsp; affecting&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provide&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use on&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property:&nbsp;&nbsp;&nbsp;&nbsp; however,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator's&nbsp;&nbsp; option,&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; supplied&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp; Non-Operator.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; make&nbsp;&nbsp;&nbsp;&nbsp; timely&nbsp;&nbsp;&nbsp;&nbsp; disposition&nbsp;&nbsp; of&nbsp; idle&nbsp;&nbsp;&nbsp;&nbsp; and/or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">surplus&nbsp; Materia,&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; disposal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; being&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp; through&nbsp;&nbsp;&nbsp;&nbsp; sale&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; or&nbsp;&nbsp; Non-Operator,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; division&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; kind,&nbsp;&nbsp;&nbsp; sale&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">outsiders.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; purchase,&nbsp;&nbsp; but&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp;&nbsp; under&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; obligation&nbsp;&nbsp; to&nbsp;&nbsp; purchase,&nbsp;&nbsp;&nbsp;&nbsp; interest&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp; in&nbsp;&nbsp; surplus&nbsp;&nbsp;&nbsp;&nbsp; condition</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A or B Material.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The disposal of surplus&nbsp; Controllable&nbsp; Material&nbsp; not purchased&nbsp; by the Operator shall be agreed to by the Parties.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Purchases</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp;&nbsp; purchased&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp; deduction&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; discounts&nbsp;&nbsp;&nbsp;&nbsp; received&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp; case&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp; found&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; defective&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; returned&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; &nbsp;vendor&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; reasons,&nbsp;&nbsp;&nbsp; credit&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; passed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">when adjustment&nbsp; has been received&nbsp; by the Operator.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Transfers and Dispositions</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp;&nbsp; furnished&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; transferred&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; disposed&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">unless otherwise agreed to by the Parties, shall&nbsp; be priced on the following &nbsp;basis exclusive&nbsp; of cash discounts:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp; New Material&nbsp; (Condition A)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp; Tubular Goods Other than Line Pipe</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp; Tubular&nbsp;&nbsp;&nbsp;&nbsp; goods,&nbsp;&nbsp;&nbsp;&nbsp; sized&nbsp;&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp;&nbsp; 3/8&nbsp;&nbsp;&nbsp;&nbsp; inches&nbsp;&nbsp;&nbsp;&nbsp; OD&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; larger,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp; pipe.&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eastern&nbsp;&nbsp;&nbsp;&nbsp; mill</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp;&nbsp; carload&nbsp;&nbsp;&nbsp;&nbsp; base&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp;&nbsp; effective&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; movement&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; 80,000</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; carload&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; weight&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; basis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; which</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; rail&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; exist.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp; the&nbsp;&nbsp;&nbsp; 80,000&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp; rail&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp; offered,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; 70.000&nbsp;&nbsp;&nbsp; pound</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; 90,000&nbsp;&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp;&nbsp; rail&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; used.&nbsp;&nbsp;&nbsp; Freight&nbsp; charges&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; tubing&nbsp;&nbsp;&nbsp;&nbsp; will&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp; calculated&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; Lorain,&nbsp;&nbsp;&nbsp; Ohio</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and casing&nbsp; from Youngstown, Ohio.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp; For&nbsp;&nbsp; grades&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; special&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; one&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp;&nbsp; only,&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp; computed&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp; base&nbsp;&nbsp; of&nbsp;&nbsp; that&nbsp;&nbsp; mill&nbsp;&nbsp; plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">above in Paragraph 2 A <I>(1)(a). </I>For transportation cost from points other than Eastern mills, the 30,000</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-6-</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pound Oil&nbsp; Field&nbsp; Haulers Association&nbsp; Interstate truck&nbsp; rate shall&nbsp; be used.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special&nbsp;&nbsp;&nbsp; end&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; finish&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; lowest&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; out-of-stock&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; f.o.b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Houston,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Texas,&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp;&nbsp; cost,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Field&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Haulers&nbsp;&nbsp;&nbsp;&nbsp; Association&nbsp;&nbsp;&nbsp;&nbsp; Interstate&nbsp;&nbsp;&nbsp; 30.000&nbsp;&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; truck&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the railway receiving point&nbsp; nearest the Joint&nbsp; Property nearest the Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Macaroni&nbsp;&nbsp; tubing&nbsp;&nbsp; (size&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp; 3/8&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; OD)&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; &nbsp;lowest&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp; out-of-stock&nbsp; prices</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f.o.b&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; supplier&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs,&nbsp;&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil&nbsp;&nbsp;&nbsp;&nbsp; Field&nbsp;&nbsp;&nbsp;&nbsp; Haulers&nbsp;&nbsp;&nbsp; Association&nbsp;&nbsp;&nbsp; interstate&nbsp;&nbsp;&nbsp;&nbsp; truck&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per weight&nbsp; of tubing transferred,&nbsp; to the railway&nbsp; receiving point nearest the Joint Property.</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp; Pipe</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; movements&nbsp;&nbsp;&nbsp; (except&nbsp;&nbsp;&nbsp; size&nbsp;&nbsp;&nbsp;&nbsp; 24&nbsp;&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; OD&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; larger&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; walls&nbsp;&nbsp; 3/4&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; over)&nbsp;&nbsp;&nbsp;&nbsp; 30,000&nbsp;&nbsp; pounds&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; more&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; pricing&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; A.(1)(a)&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; above.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Freight&nbsp; charges shall&nbsp; be calculated from&nbsp; Lorain, Ohio.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp; Pipe&nbsp;&nbsp;&nbsp;&nbsp; movements&nbsp;&nbsp;&nbsp; (except&nbsp;&nbsp;&nbsp; size&nbsp;&nbsp;&nbsp;&nbsp; 24&nbsp;&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp; OD)&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; larger&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp; walls&nbsp;&nbsp;&nbsp; 3/4&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; over)&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp;&nbsp; 30,000</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pounds&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; Eastern&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; carload&nbsp;&nbsp;&nbsp; base&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp; effective&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; shipment.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20&nbsp;&nbsp;&nbsp;&nbsp; percent,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; based&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; freight&nbsp;&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; set&nbsp;&nbsp;&nbsp;&nbsp; forth&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; tubular</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; pricing&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; A (1)(a)&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; above&nbsp;&nbsp;&nbsp;&nbsp; Freight&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; calculated&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lorain,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ohio.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3/4&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; wall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; larger&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; f.o.b&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; point&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; manufacture&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; point</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest the&nbsp; Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp; pipe,&nbsp;&nbsp;&nbsp;&nbsp; including&nbsp;&nbsp;&nbsp; fabricated&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp;&nbsp; pipe,&nbsp;&nbsp;&nbsp;&nbsp; drive&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; conduit&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp;&nbsp; lists&nbsp;&nbsp;&nbsp;&nbsp; shall</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; quoted&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; freight&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; at</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prices agreed to&nbsp; by the&nbsp; Parties.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(3) Other Material shall be priced at the current new price, in effect at date of movement. as listed <I>by </I>a reliable</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp; &nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp; manufacture,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs,&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp;&nbsp; applicable,&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp; receiving point&nbsp; nearest the Joint Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused&nbsp;&nbsp; &nbsp;&nbsp;new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods,&nbsp;&nbsp;&nbsp; moved&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; effect&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; movement,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; reliable&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp; nearest&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; manufacture,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs,&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp; applicable,&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Property. Unused new tubulars will be priced as provided above in Paragraph 2.A (I) and <I>(2).</I></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.&nbsp;&nbsp;&nbsp; Good used Materia1&nbsp; (Condition B)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material in sound and&nbsp; serviceable condition and&nbsp; suitable for reuse&nbsp; without reconditioning&middot;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; Material moved to the Joint Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At seventy-five percent (75%) of current new&nbsp; price,&nbsp; as determined by Paragraph&nbsp; A.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material used&nbsp; on and&nbsp; moved from&nbsp; the Joint&nbsp; Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At&nbsp;&nbsp;&nbsp;&nbsp; seventy-five&nbsp;&nbsp;&nbsp; percent&nbsp;&nbsp;&nbsp; (75%)&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; determined&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; A.&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; was</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; originally charged to the Joint&nbsp; Account as new Material or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; sixty-five&nbsp;&nbsp;&nbsp; percent&nbsp;&nbsp;&nbsp;&nbsp; (65%)&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; determined&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; was</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;originally charged to the Joint&nbsp; Account as&nbsp; used&nbsp; Material.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp; not&nbsp; used&nbsp; on and&nbsp; moved from&nbsp; the Joint&nbsp; Property:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">At seventy-five percent <I>(75%) </I>of current new price as determined by Paragraph A.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp; cost&nbsp; of reconditioning, if any, shall&nbsp; be absorbed by&nbsp; the&nbsp; transferring property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><I>C. </I>Other Used Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; Condition C</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; wh1ch&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; sound&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; serviceable&nbsp; condition&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; suitable&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp;&nbsp; original&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp;&nbsp; until</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reconditioning&nbsp;&nbsp;&nbsp;&nbsp; shall &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fifty&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; percent&nbsp;&nbsp;&nbsp;&nbsp; (50%' )&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; determined&nbsp;&nbsp;&nbsp;&nbsp; by</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; reconditioning&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; property,&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C&nbsp; value plus&nbsp; cost&nbsp; of reconditioning does&nbsp; not exceed Condition&nbsp; B value.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-7-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition D</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp;&nbsp; excluding&nbsp;&nbsp;&nbsp;&nbsp; junk,&nbsp;&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; longer&nbsp;&nbsp;&nbsp; suitable&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp; original&nbsp;&nbsp;&nbsp;&nbsp; purpose,&nbsp;&nbsp;&nbsp;&nbsp; but&nbsp;&nbsp;&nbsp;&nbsp; usable&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; some&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; purpose</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; basis&nbsp;&nbsp;&nbsp; commensurate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp; use.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; dispose&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Condition&nbsp;&nbsp;&nbsp;&nbsp; D&nbsp;&nbsp;&nbsp; Material</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under procedures&nbsp; normally used by Operator&nbsp; without&nbsp; prior approval of&nbsp;&nbsp; Non Operators.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Casing,&nbsp;&nbsp; tubing,&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; Grade&nbsp;&nbsp; A&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; B&nbsp;&nbsp;&nbsp; seamless&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp; pipe</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; comparable&nbsp;&nbsp;&nbsp; size&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; weight .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used&nbsp;&nbsp;&nbsp; casing,&nbsp;&nbsp;&nbsp; tubing&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp; utilized&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; priced at used line pipe prices.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Casing,&nbsp;&nbsp;&nbsp;&nbsp; tubing&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; higher&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pressure&nbsp;&nbsp;&nbsp; service&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lines&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; standard&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pipe,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. g.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; power&nbsp;&nbsp;&nbsp;&nbsp; oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lines,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp; normal&nbsp;&nbsp;&nbsp;&nbsp; pricing&nbsp;&nbsp;&nbsp; procedures&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; casing,&nbsp;&nbsp;&nbsp;&nbsp; tubing,&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp;&nbsp;&nbsp; pipe.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upset&nbsp; tubular goods shall&nbsp; be priced on a non&nbsp; upset&nbsp; basis.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition&nbsp; E</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Junk&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prevailing&nbsp;&nbsp;&nbsp;&nbsp; prices.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; dispose&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition&nbsp;&nbsp;&nbsp;&nbsp; E&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; procedures normally utilized by Operator without prior approval of Non-Operators.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D.&nbsp;&nbsp;&nbsp;&nbsp; Obsolete Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material&nbsp; which&nbsp; is&nbsp;&nbsp; serviceable&nbsp; and&nbsp;&nbsp; usable&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp;&nbsp; original&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp; but&nbsp;&nbsp;&nbsp;&nbsp; condition&nbsp;&nbsp;&nbsp; and/or&nbsp;&nbsp;&nbsp; value&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; not&nbsp; equivalent&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp; which&nbsp; &nbsp;would&nbsp;&nbsp; justify&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp; above&nbsp;&nbsp; may&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; specially&nbsp;&nbsp; priced&nbsp;&nbsp; as&nbsp; agreed&nbsp; to&nbsp; by</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp; price&nbsp;&nbsp; should&nbsp;&nbsp; result&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; being&nbsp;&nbsp; charged&nbsp; with &nbsp;&nbsp;the&nbsp;&nbsp; value&nbsp; of&nbsp; the service</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rendered by such&nbsp; Material.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pricing Conditions</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; Loading&nbsp; or&nbsp;&nbsp; unloading&nbsp; costs&nbsp;&nbsp; may&nbsp;&nbsp; be&nbsp; charged&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp; Joint&nbsp;&nbsp; Account&nbsp; at&nbsp;&nbsp; the&nbsp; rate&nbsp; of&nbsp; twenty-five&nbsp;&nbsp;&nbsp; cents&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25&cent;)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hundred&nbsp;&nbsp;&nbsp;&nbsp; weight on&nbsp;&nbsp; all&nbsp;&nbsp; tublar&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp;&nbsp; movements,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; lieu&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; loading&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; unloading&nbsp;&nbsp;&nbsp; costs</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; sustained&nbsp; at&nbsp; the&nbsp; stocking&nbsp;&nbsp;&nbsp; point.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp; above&nbsp;&nbsp; rate&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp; adjusted&nbsp; as&nbsp; of&nbsp;&nbsp; the&nbsp;&nbsp; first&nbsp; day&nbsp; of&nbsp; April&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; year</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; January&nbsp; 1,&nbsp;&nbsp; 1985&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; same&nbsp;&nbsp;&nbsp; percentage&nbsp;&nbsp;&nbsp; increase&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; decrease &nbsp;&nbsp;&nbsp;used&nbsp;&nbsp; to&nbsp;&nbsp; adjust&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp; III,&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; 1.A.(3)&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp; year,&nbsp; the&nbsp;&nbsp; rate&nbsp; calculated&nbsp; shall&nbsp;&nbsp; be&nbsp; rounded&nbsp; to&nbsp; the&nbsp; nearest&nbsp; cent&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shall&nbsp;&nbsp; be&nbsp;&nbsp; the&nbsp;&nbsp; rate&nbsp;&nbsp; in&nbsp; effect&nbsp;&nbsp; until&nbsp;&nbsp; the&nbsp;&nbsp; first&nbsp;&nbsp; day&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; April&nbsp;&nbsp; next&nbsp;&nbsp; year.&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp; rate&nbsp; shall&nbsp; be&nbsp; published&nbsp; each&nbsp; year</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the&nbsp; Council of Petroleum Accountants Societies.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; involving&nbsp; erection&nbsp;&nbsp; costs&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp; at&nbsp;&nbsp; applicable&nbsp;&nbsp; percentage&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; current&nbsp; knocked-down</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; price&nbsp; of new&nbsp; Material.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Premium Prices</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Whenever&nbsp;&nbsp; Material&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; readily&nbsp;&nbsp;&nbsp; obtainable&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp;&nbsp; because&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; national&nbsp;&nbsp;&nbsp; emergencies.&nbsp;&nbsp; strikes&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">unusual&nbsp;&nbsp;&nbsp; causes&nbsp;&nbsp;&nbsp; over&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; has&nbsp;&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp;&nbsp; control,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; required</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Marerial&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp; actual&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; providing&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; making&nbsp;&nbsp; it&nbsp;&nbsp;&nbsp; suitable&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; moving&nbsp;&nbsp;&nbsp; it</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; notice&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; writing&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; furnished&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; proposed&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; billing</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Non-Operators&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; Material.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp; Non-Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; have&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; right,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; so&nbsp;&nbsp;&nbsp;&nbsp; electing&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp; notifying&nbsp;&nbsp;&nbsp; Operator&nbsp; within</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">ten&nbsp;&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp; notice&nbsp; from&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; furnish&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; kind&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; part&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; his&nbsp;&nbsp; share&nbsp;&nbsp; of&nbsp; such Material&nbsp;&nbsp; suitable&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">and&nbsp; acceptable to Operator.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Warranty of Material Furnished By Operator</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator&nbsp;&nbsp; does&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; warrant&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; furnished.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp; case&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; defective&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp; credit&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; passed&nbsp;&nbsp; to&nbsp; the&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Account until adjustment has&nbsp; been&nbsp; received by Operator from the manufacturers or their&nbsp; agents.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">V.&nbsp; INVENTORIES</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">The&nbsp; Operator shall&nbsp; maintain detailed records of Controllable Material.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Periodic&nbsp; Inventories, Notice and&nbsp; Representation</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">At&nbsp;&nbsp;&nbsp;&nbsp; reasonable&nbsp;&nbsp;&nbsp; intervals,&nbsp;&nbsp;&nbsp; inventories&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; taken&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; Controllable&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; Written&nbsp;&nbsp;&nbsp; notice</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">of&nbsp;&nbsp;&nbsp; intention&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; take&nbsp;&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; given&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp; &nbsp;Operator&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; least&nbsp;&nbsp;&nbsp; thirty&nbsp;&nbsp; (30)&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp; before&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp; is&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; begin&nbsp; so&nbsp; that</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Non-Operators&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; represented&nbsp;&nbsp;&nbsp;&nbsp; when&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; taken.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Failure&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; represented&nbsp;&nbsp; at&nbsp;&nbsp; an</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">inventory shall&nbsp; bind&nbsp; Non-Operators to accept the&nbsp; inventory taken&nbsp; by Operator.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Reconciliation and&nbsp; Adjustment of Inventories</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Adjustments&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; reconciliation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; physical&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp; within six&nbsp;&nbsp;&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">months&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; taking&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; inventory.&nbsp;&nbsp;&nbsp;&nbsp; Inventory&nbsp;&nbsp;&nbsp;&nbsp; adjustments&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; Operator&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-8-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">overages and shortages.&nbsp; but, Operator shall be held accountable only for shortages due to lack of reasonable diligence.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Special&nbsp; Inventories</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Special&nbsp;&nbsp;&nbsp; inventories&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; taken&nbsp;&nbsp;&nbsp;&nbsp; whenever&nbsp;&nbsp; there&nbsp; is&nbsp;&nbsp; any&nbsp;&nbsp; sale,&nbsp;&nbsp; change&nbsp; of&nbsp; interest,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; change&nbsp; of&nbsp; Operator&nbsp; in&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Property.&nbsp;&nbsp;&nbsp; It&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; duty&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; party&nbsp;&nbsp;&nbsp; selling&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; notify&nbsp; &nbsp;all&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; Parties&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; quickly&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; possible&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; transfer&nbsp;&nbsp;&nbsp; of</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">interest&nbsp;&nbsp;&nbsp; takes&nbsp;&nbsp;&nbsp; place&nbsp;&nbsp;&nbsp; In&nbsp; such&nbsp; cases,&nbsp;&nbsp;&nbsp; both&nbsp; the&nbsp; seller&nbsp; and&nbsp; the&nbsp; purchaser&nbsp; shall&nbsp;&nbsp; be&nbsp; governed&nbsp; by&nbsp; such&nbsp; inventory.&nbsp; In cases</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">involving a change of Operator,&nbsp; all Parties shall be governed by such inventory.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Expense&nbsp; of Conducting Inventories</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; conducting&nbsp;&nbsp;&nbsp;&nbsp; periodic&nbsp;&nbsp;&nbsp;&nbsp; inventories&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parties.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp; expense&nbsp; of&nbsp; conducting&nbsp; special&nbsp;&nbsp; inventories&nbsp;&nbsp; shall&nbsp; be&nbsp;&nbsp; charged&nbsp;&nbsp; to&nbsp; the&nbsp; Parties&nbsp; requesting&nbsp;&nbsp; such&nbsp; inventories,&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; inventories</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; required due to change of Operator shall be charged to the Joint Account.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-9-</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 0.5pt 0 0"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 0 0"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.95pt 0 0; text-align: center">EXHIBIT &quot;2&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Initial Test Well</U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Attached <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>and<FONT STYLE="letter-spacing: 1pt"> </FONT>made a<FONT STYLE="letter-spacing: 0.45pt">
</FONT>part of the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.05pt 0 0; text-align: center"><FONT STYLE="line-height: 106%">Unit
Operating Agreement for the</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0; text-align: center">Gabbs Valley Unit Area</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.6pt 0 0; text-align: center">Mineral and<FONT STYLE="letter-spacing: 0.95pt">
</FONT>Nye Counties, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -26.75pt"><FONT STYLE="line-height: 103%">1..&#9;<U>LOCATION:</U>
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>The initial test well shall be drilled at a<FONT STYLE="letter-spacing: 1.4pt"> </FONT>location
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>selected <FONT STYLE="letter-spacing: 1pt"> </FONT>by Unit Operator and approved by<FONT STYLE="letter-spacing: 0.4pt">
</FONT>the Authorized <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Office of the Bureau<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.7pt">
</FONT>Land Management.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -26.75pt"><FONT STYLE="line-height: 103%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: -27pt">2.&#9;<U>DEPTH:</U> <FONT STYLE="letter-spacing: 0.05pt">
</FONT>The <FONT STYLE="letter-spacing: 0.15pt"> </FONT>initial <FONT STYLE="letter-spacing: 0.7pt"> </FONT>test <FONT STYLE="letter-spacing: 0.35pt">
</FONT>well shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>be drilled conformably w1th<FONT STYLE="letter-spacing: 0.45pt">
</FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>terms <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of Article <FONT STYLE="letter-spacing: 0.6pt">
</FONT>9<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of the Paradise<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27pt"><FONT STYLE="line-height: 110%">3.
&#9;<U>COSTS:</U> <FONT STYLE="letter-spacing: 0.95pt"> </FONT>All <FONT STYLE="letter-spacing: 0.3pt"> </FONT>costs and <FONT STYLE="letter-spacing: 0.7pt">
</FONT>expenses incurred in <FONT STYLE="letter-spacing: 0.25pt"> </FONT>connection <FONT STYLE="letter-spacing: 0.25pt"> </FONT>with
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the initial test well, including drilling, testing <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and completing into the tanks, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>if an<FONT STYLE="letter-spacing: 1.45pt"> </FONT>oil
well, or through <FONT STYLE="letter-spacing: 0.6pt"> </FONT>gas<FONT STYLE="letter-spacing: 1.45pt"> </FONT>separator, if<FONT STYLE="letter-spacing: 1.4pt">
</FONT>a gas producer, <FONT STYLE="letter-spacing: 1.3pt"> </FONT>and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>plugging and
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>abandoning, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>if a dry hole, <FONT STYLE="letter-spacing: 0.45pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>be borne <FONT STYLE="letter-spacing: 0.6pt"> </FONT>and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>paid for by O. F. Duffield and such other <FONT STYLE="letter-spacing: 0.05pt"> </FONT>parties <FONT STYLE="letter-spacing: 0.35pt">
</FONT>hereto as agreed to bear such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>costs in accordance with separate agreement <FONT STYLE="letter-spacing: 0.3pt">
</FONT>among<FONT STYLE="letter-spacing: 1.3pt"> </FONT>themselves <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and where applicable
subject to<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the investment <FONT STYLE="letter-spacing: 0.05pt"> </FONT>adjustment provisions
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of Article <FONT STYLE="letter-spacing: 0.25pt"> </FONT>13 of this Agreement. Any
cash contributions<FONT STYLE="letter-spacing: 0.35pt"> </FONT>received <FONT STYLE="letter-spacing: 0.45pt"> </FONT>toward the
drilling of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>initial<FONT STYLE="letter-spacing: 1.45pt">
</FONT>test<FONT STYLE="letter-spacing: 0.95pt"> </FONT>well<FONT STYLE="letter-spacing: 0.95pt"> </FONT>shall belong to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>parties sustaining <FONT STYLE="letter-spacing: 0.45pt"> </FONT>the<FONT STYLE="letter-spacing: 0.6pt">
</FONT>risk of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>drilling the initial<FONT STYLE="letter-spacing: 1.45pt"> </FONT>test<FONT STYLE="letter-spacing: 0.7pt">
</FONT>well.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27.7pt"><FONT STYLE="line-height: 109%">4.
&#9;<U>TITLE EXAMINATION AREA</U>: The title examination area for the<FONT STYLE="letter-spacing: 1.4pt"> </FONT>initial test<FONT STYLE="letter-spacing: 1.45pt">
</FONT>well<FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall be an area surrounding the location of<FONT STYLE="letter-spacing: 0.55pt">
</FONT>such<FONT STYLE="letter-spacing: 1.3pt"> </FONT>well as<FONT STYLE="letter-spacing: 0.55pt"> </FONT>may<FONT STYLE="letter-spacing: 0.7pt">
</FONT>be<FONT STYLE="letter-spacing: 0.6pt"> </FONT>designated <FONT STYLE="letter-spacing: 0.4pt"> </FONT>by the Unit Operator.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27.25pt">5. &#9;<U>COST<FONT STYLE="letter-spacing: 1.4pt">
</FONT>OF<FONT STYLE="letter-spacing: 1.45pt"> </FONT>TITLE EXAMINATION:</U> <FONT STYLE="letter-spacing: 1pt"> </FONT>The<FONT STYLE="letter-spacing: 1.45pt">
</FONT>cost of title<FONT STYLE="letter-spacing: 1.3pt"> </FONT>examination shall be charged <FONT STYLE="letter-spacing: 0.15pt">
</FONT>as a cost of drilling the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>initial test well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27.45pt"><FONT STYLE="line-height: 110%">6.
&#9;DEEPENING, PLUGGING <FONT STYLE="letter-spacing: 0.55pt"> </FONT>RACK: <FONT STYLE="letter-spacing: 0.35pt"> </FONT>In <FONT STYLE="letter-spacing: 0.7pt">
</FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>absence of <FONT STYLE="letter-spacing: 1pt"> </FONT>any agreement to the
contrary, the attempted <FONT STYLE="letter-spacing: 1.45pt"> </FONT>completion, deepening or plugging back, <FONT STYLE="letter-spacing: 0.15pt">
</FONT>and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>abandonment of the Initial Test <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Well
shall be<FONT STYLE="letter-spacing: 0.45pt"> </FONT>governed by the<FONT STYLE="letter-spacing: 0.7pt"> </FONT>provisions of Section
9.3<FONT STYLE="letter-spacing: 0.95pt"> </FONT>to<FONT STYLE="letter-spacing: 0.35pt"> </FONT>this<FONT STYLE="letter-spacing: 1pt">
</FONT>agreement.</FONT></P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.95pt 0 0; text-align: center">EXHIBIT<FONT STYLE="letter-spacing: 1.4pt">
</FONT>&quot;3&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Attached to<FONT STYLE="letter-spacing: 0.6pt">
</FONT>and made<FONT STYLE="letter-spacing: 0.7pt"> </FONT>a part<FONT STYLE="letter-spacing: 0.7pt"> </FONT>of the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.3pt 0 0; text-align: center"><FONT STYLE="line-height: 105%">Unit
Operating <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement for the</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.5pt 0 0; text-align: center">Gabbs Valley Unit<FONT STYLE="letter-spacing: 1pt">
</FONT>Area</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.8pt 0 0; text-align: center">Mineral and Nye<FONT STYLE="letter-spacing: 0.45pt">
</FONT>Counties. Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">INSURANCE</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="line-height: 105%">For
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operations <FONT STYLE="letter-spacing: 1.4pt"> </FONT>by <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Unit <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Operator: The <FONT STYLE="letter-spacing: 0.45pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.45pt">
</FONT>Operator shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>carry for the benefit <FONT STYLE="letter-spacing: 0.45pt"> </FONT>of
the joint account <FONT STYLE="letter-spacing: 0.55pt"> </FONT>insurance to cover the Unit Operator's operations on <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the lands covered by this Agreement <FONT STYLE="letter-spacing: 0.6pt"> </FONT>as follows:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="line-height: 105%">1.<FONT STYLE="letter-spacing: 1pt">
</FONT>Workmens' Compensation <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Insurance <FONT STYLE="letter-spacing: 0.05pt"> </FONT>in
full compliance <FONT STYLE="letter-spacing: 0.6pt"> </FONT>w1th the laws of the<FONT STYLE="letter-spacing: 1pt"> </FONT>applicable
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>State in which<FONT STYLE="letter-spacing: 0.95pt"> </FONT>operations are conducted.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="line-height: 105%">2.
Employer's Liability <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Insurance <FONT STYLE="letter-spacing: 0.35pt"> </FONT>with limits<FONT STYLE="letter-spacing: 1.45pt">
</FONT>of$100,000 as<FONT STYLE="letter-spacing: 0.95pt"> </FONT>to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>any one<FONT STYLE="letter-spacing: 1.45pt">
</FONT>person and $100,000 as to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>any one accident.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 110%">3. Public<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Liability Insurance: <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Bodily Injury<FONT STYLE="letter-spacing: 0.95pt"> </FONT>(other<FONT STYLE="letter-spacing: 1.4pt">
</FONT>than<FONT STYLE="letter-spacing: 0.6pt"> </FONT>automobile) w1th limits<FONT STYLE="letter-spacing: 1pt"> </FONT>of$1,000,000
as to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any one person, $1,000,000 as to<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any
one<FONT STYLE="letter-spacing: 1pt"> </FONT>accident; <FONT STYLE="letter-spacing: 0.25pt"> </FONT>and Property Damage (other
than automobile) with limits of$1,000,000 for each<FONT STYLE="letter-spacing: 0.95pt"> </FONT>accident, $1,000,000 <FONT STYLE="letter-spacing: 0.4pt">
</FONT>aggregate.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt">4. Automobile <FONT STYLE="letter-spacing: 1.3pt"> </FONT>Public
Liability <FONT STYLE="letter-spacing: 1.45pt"> </FONT>Insurance, with limits of $50,000 as <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to <FONT STYLE="letter-spacing: 0.25pt"> </FONT>any <FONT STYLE="letter-spacing: 0.25pt"> </FONT>one <FONT STYLE="letter-spacing: 0.35pt">
</FONT>person <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 45pt; text-indent: 0.25pt"><FONT STYLE="line-height: 178%">$50,000
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>as<FONT STYLE="letter-spacing: 1.45pt"> </FONT>to any one accident, <FONT STYLE="letter-spacing: 0.7pt">
</FONT>and<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Property Damage of $50,000 <FONT STYLE="letter-spacing: 0.7pt"> </FONT>for
each accident; <FONT STYLE="letter-spacing: 0.35pt"> </FONT>excess coverage of<FONT STYLE="letter-spacing: 0.45pt"> </FONT>such
limits up<FONT STYLE="letter-spacing: 0.6pt"> </FONT>to<FONT STYLE="letter-spacing: 0.4pt"> </FONT>$1,000,000 <FONT STYLE="letter-spacing: 0.05pt">
</FONT>combined single limit.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="line-height: 110%">Operator
shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>not <FONT STYLE="letter-spacing: 0.15pt"> </FONT>carry physical <FONT STYLE="letter-spacing: 0.7pt">
</FONT>damage insurance on Jointly-owned <FONT STYLE="letter-spacing: 0.05pt"> </FONT>property, <FONT STYLE="letter-spacing: 0.55pt">
</FONT>it being understood and agreed that<FONT STYLE="letter-spacing: 1.3pt"> </FONT>each party<FONT STYLE="letter-spacing: 1.45pt">
</FONT>will<FONT STYLE="letter-spacing: 1pt"> </FONT>be responsible <FONT STYLE="letter-spacing: 0.6pt"> </FONT>for its own interest
in such properties and will assume<FONT STYLE="letter-spacing: 1.3pt"> </FONT>its<FONT STYLE="letter-spacing: 0.95pt"> </FONT>portion<FONT STYLE="letter-spacing: 1.45pt">
</FONT>of any loss that occurs. Operator shall<FONT STYLE="letter-spacing: 1.45pt"> </FONT>promptly<FONT STYLE="letter-spacing: 1.4pt">
</FONT>notify<FONT STYLE="letter-spacing: 1.45pt"> </FONT>Non-Operator <FONT STYLE="letter-spacing: 0.45pt"> </FONT>in writing
of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>all losses involving damage<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>jointly-owned property<FONT STYLE="letter-spacing: 1.4pt"> </FONT>in excess of <FONT STYLE="letter-spacing: 0.45pt"> </FONT>S
1,000.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="line-height: 110%">Operator
shall submit to Non-Operators certificates of insurance <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in evidence of the above coverage.
Such certificates <FONT STYLE="letter-spacing: 1pt"> </FONT>shall specify that in<FONT STYLE="letter-spacing: 0.95pt"> </FONT>event
of cancellation <FONT STYLE="letter-spacing: 0.7pt"> </FONT>or material change in coverage at least ten<FONT STYLE="letter-spacing: 0.35pt">
</FONT>days prior<FONT STYLE="letter-spacing: 1pt"> </FONT>written<FONT STYLE="letter-spacing: 1.45pt"> </FONT>notice<FONT STYLE="letter-spacing: 1.3pt">
</FONT>will be<FONT STYLE="letter-spacing: 0.6pt"> </FONT>given to Non-Operators at<FONT STYLE="letter-spacing: 0.4pt"> </FONT>their<FONT STYLE="letter-spacing: 0.95pt">
</FONT>respective addresses.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.75pt"><FONT STYLE="line-height: 178%">Operator
shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>notify Non-Operators promptly <FONT STYLE="letter-spacing: 0.7pt"> </FONT>in
writing <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>occurrences <FONT STYLE="letter-spacing: 0.25pt">
</FONT>wherein <FONT STYLE="letter-spacing: 0.55pt"> </FONT>liability may<FONT STYLE="letter-spacing: 0.45pt"> </FONT>exceed the<FONT STYLE="letter-spacing: 0.55pt">
</FONT>limits of the<FONT STYLE="letter-spacing: 0.6pt"> </FONT>insurance if<FONT STYLE="letter-spacing: 0.35pt"> </FONT>covered
by<FONT STYLE="letter-spacing: 0.4pt"> </FONT>insurance as set<FONT STYLE="letter-spacing: 0.55pt"> </FONT>out above.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.35pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.35pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.35pt 0 0; text-align: center">EXHIBIT<FONT STYLE="letter-spacing: 0.95pt">
</FONT>&quot;4&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Attached to<FONT STYLE="letter-spacing: 0.25pt">
</FONT>and made<FONT STYLE="letter-spacing: 0.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.35pt"> </FONT>part<FONT STYLE="letter-spacing: 0.6pt">
</FONT>of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.5pt 0 0; text-align: center"><FONT STYLE="line-height: 187%">Unit
Operating Agreement for the</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: 1.4pt">Gabbs Valley
</FONT>Unit Area</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center">Mineral<FONT STYLE="letter-spacing: 1.45pt">
</FONT>and<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Nye<FONT STYLE="letter-spacing: 0.4pt"> </FONT>Counties, Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EXECUTIVE ORDER NO.<FONT STYLE="letter-spacing: 0.7pt">
</FONT>11246 AND EXECUTIVE ORDER NO.<FONT STYLE="letter-spacing: 0.95pt"> </FONT>11598</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center">PROVISIONS OF SECTION 202<FONT STYLE="letter-spacing: 0.45pt">
</FONT>OF<FONT STYLE="letter-spacing: 0.55pt"> </FONT>EXECUTIVE ORDER NO. 11246</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 187%">(1)
The <FONT STYLE="letter-spacing: 0.25pt"> </FONT>contractor will <FONT STYLE="letter-spacing: 0.4pt"> </FONT>not discriminate against
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>employee or <FONT STYLE="letter-spacing: 0.15pt">
</FONT>applicant for employment because of race, color, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>religion, <FONT STYLE="letter-spacing: 0.55pt">
</FONT>sex or national <FONT STYLE="letter-spacing: 0.15pt"> </FONT>origin. <FONT STYLE="letter-spacing: 1pt"> </FONT>The <FONT STYLE="letter-spacing: 0.05pt">
</FONT>contractor will take affirmative action <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to ensure the<FONT STYLE="letter-spacing: 0.4pt">
</FONT>applicants are employed<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and that employees<FONT STYLE="letter-spacing: 1.45pt">
</FONT>are treated during<FONT STYLE="letter-spacing: 1.45pt"> </FONT>employment, without regard to their race, color, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>religion, <FONT STYLE="letter-spacing: 0.55pt"> </FONT>sex or national origin. Such <FONT STYLE="letter-spacing: 0.05pt">
</FONT>action <FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.4pt"> </FONT>include <FONT STYLE="letter-spacing: 0.7pt">
</FONT>but not be limited <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to the following: Employment, upgrading,<FONT STYLE="letter-spacing: 1.45pt">
</FONT>demotion, or<FONT STYLE="letter-spacing: 0.7pt"> </FONT>transfer; recruitment or recruitment <FONT STYLE="letter-spacing: 0.25pt">
</FONT>advertising; <FONT STYLE="letter-spacing: 0.6pt"> </FONT>layoff or termination; rates of pay or<FONT STYLE="letter-spacing: 0.55pt">
</FONT>other forms<FONT STYLE="letter-spacing: 0.45pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>compensation; and<FONT STYLE="letter-spacing: 0.4pt">
</FONT>selection for training, including apprenticeship. <FONT STYLE="letter-spacing: 1pt"> </FONT>The <FONT STYLE="letter-spacing: 1.45pt">
</FONT>contractor <FONT STYLE="letter-spacing: 0.25pt"> </FONT>agrees to post in <FONT STYLE="letter-spacing: 1pt"> </FONT>conspicuous
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>places available to employees and applicants for employment, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>notices to be<FONT STYLE="letter-spacing: 0.95pt"> </FONT>provided by<FONT STYLE="letter-spacing: 0.95pt"> </FONT>the contracting
officer <FONT STYLE="letter-spacing: 0.05pt"> </FONT>setting forth<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the<FONT STYLE="letter-spacing: 0.95pt">
</FONT>provisions of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>this<FONT STYLE="letter-spacing: 0.55pt"> </FONT>non-discrimination
clause.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 187%">(2)
The <FONT STYLE="letter-spacing: 0.05pt"> </FONT>contractor <FONT STYLE="letter-spacing: 1.3pt"> </FONT>will, in all solicitations
or advertisements for employees placed by or on behalf <FONT STYLE="letter-spacing: 0.45pt"> </FONT>of the contractor, state that
all qualified applicants will receive <FONT STYLE="letter-spacing: 0.4pt"> </FONT>consideration for employment without<FONT STYLE="letter-spacing: 0.6pt">
</FONT>regard to<FONT STYLE="letter-spacing: 0.55pt"> </FONT>race, color,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>religion,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>sex<FONT STYLE="letter-spacing: 0.6pt"> </FONT>or national<FONT STYLE="letter-spacing: 1pt"> </FONT>origin.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.25pt"><FONT STYLE="line-height: 178%">(3)
The contractor will send to each labor union or representative <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.95pt">
</FONT>workers<FONT STYLE="letter-spacing: 1pt"> </FONT>with which he<FONT STYLE="letter-spacing: 0.7pt"> </FONT>has a collective
bargaining <FONT STYLE="letter-spacing: 0.95pt"> </FONT>agreement or other <FONT STYLE="letter-spacing: 0.05pt"> </FONT>contract
or understanding, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>a<FONT STYLE="letter-spacing: 1.45pt"> </FONT>notice, to be provided
by the agency contracting officer, advertising the<FONT STYLE="letter-spacing: 0.25pt"> </FONT>labor<FONT STYLE="letter-spacing: 0.55pt">
</FONT>union<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or<FONT STYLE="letter-spacing: 0.35pt"> </FONT>workers' representative
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt"> </FONT>the contractors' commitments <FONT STYLE="letter-spacing: 0.3pt">
</FONT>under Section <FONT STYLE="letter-spacing: 0.55pt"> </FONT>202<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of<FONT STYLE="letter-spacing: 1.45pt">
</FONT>Executive Order No. 11246 of September <FONT STYLE="letter-spacing: 0.55pt"> </FONT>24, 1965, and<FONT STYLE="letter-spacing: 1.3pt">
</FONT>shall post copies of<FONT STYLE="letter-spacing: 0.4pt"> </FONT>the<FONT STYLE="letter-spacing: 0.55pt"> </FONT>notice<FONT STYLE="letter-spacing: 0.95pt">
</FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>conspicuous places available to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>employees
and<FONT STYLE="letter-spacing: 0.7pt"> </FONT>applicants for<FONT STYLE="letter-spacing: 0.45pt"> </FONT>employment.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">(4) The contractor will comply<FONT STYLE="letter-spacing: 1.45pt">
</FONT>with all provisions of<FONT STYLE="letter-spacing: 1pt"> </FONT>Executive Order No.<FONT STYLE="letter-spacing: 1.4pt">
</FONT>11246<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of September 24, 1965,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and
of the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>rules, regulations, and<FONT STYLE="letter-spacing: 0.45pt"> </FONT>relevant
orders<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>the<FONT STYLE="letter-spacing: 0.4pt">
</FONT>Secretary of<FONT STYLE="letter-spacing: 0.55pt"> </FONT>Labor.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">(5) The contractor <FONT STYLE="letter-spacing: 1.4pt">
</FONT>will furnish <FONT STYLE="letter-spacing: 0.6pt"> </FONT>all information <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and
reports required by Executive <FONT STYLE="letter-spacing: 0.35pt"> </FONT>Order <FONT STYLE="letter-spacing: 0.3pt"> </FONT>No.
11246 of September <FONT STYLE="letter-spacing: 0.45pt"> </FONT>24, 1965, and by the rules, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>regulations, and orders <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Secretary <FONT STYLE="letter-spacing: 0.7pt">
</FONT>of<FONT STYLE="letter-spacing: 1.3pt"> </FONT>Labor, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>or pursuant thereto, and
will permit access to his books, records, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and<FONT STYLE="letter-spacing: 1.45pt">
</FONT>accounts, by the contracting agency and the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Secretary of <FONT STYLE="letter-spacing: 0.7pt">
</FONT>Labor <FONT STYLE="letter-spacing: 1.3pt"> </FONT>for purposes of <FONT STYLE="letter-spacing: 0.6pt"> </FONT>investigation
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>to <FONT STYLE="letter-spacing: 0.35pt"> </FONT>ascertain compliance with <FONT STYLE="letter-spacing: 0.55pt">
</FONT>such rules, regulations,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and<FONT STYLE="letter-spacing: 0.45pt"> </FONT>orders.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 109%">(6)
In the event of the contractor's <FONT STYLE="letter-spacing: 0.4pt"> </FONT>non-compliance <FONT STYLE="letter-spacing: 1pt">
</FONT>with<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the non-discrimination clauses of<FONT STYLE="letter-spacing: 1.3pt"> </FONT>this
contract or with any<FONT STYLE="letter-spacing: 1.45pt"> </FONT>of<FONT STYLE="letter-spacing: 1.45pt"> </FONT>such rules. regulations
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>or<FONT STYLE="letter-spacing: 1.45pt"> </FONT>orders, <FONT STYLE="letter-spacing: 0.4pt">
</FONT>this contract <FONT STYLE="letter-spacing: 0.55pt"> </FONT>may be canceled, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>terminated
or suspended <FONT STYLE="letter-spacing: 0.7pt"> </FONT>in whole or in part and the contractor <FONT STYLE="letter-spacing: 1.3pt">
</FONT>may be declared ineligible for further Government contracts in accordance with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>procedures
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>authorized <FONT STYLE="letter-spacing: 0.95pt"> </FONT>in Executive <FONT STYLE="letter-spacing: 1pt">
</FONT>Order No. <FONT STYLE="letter-spacing: 1.3pt"> </FONT>I 1246 of September 24, I 965, and<FONT STYLE="letter-spacing: 1.3pt">
</FONT>such other<FONT STYLE="letter-spacing: 1.45pt"> </FONT>sanctions <FONT STYLE="letter-spacing: 0.7pt"> </FONT>may<FONT STYLE="letter-spacing: 1.3pt">
</FONT>be imposed and<FONT STYLE="letter-spacing: 1.4pt"> </FONT>remedies <FONT STYLE="letter-spacing: 0.4pt"> </FONT>invoked as
provided <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in<FONT STYLE="letter-spacing: 1pt"> </FONT>Executive Order No. <FONT STYLE="letter-spacing: 1.3pt">
</FONT>I 1246 of September 24, I 965, or by rule, regulation or <FONT STYLE="letter-spacing: 0.4pt"> </FONT>order <FONT STYLE="letter-spacing: 0.55pt">
</FONT>of the Secretary <FONT STYLE="letter-spacing: 0.95pt"> </FONT>of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Labor, or
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>as otherwise provided<FONT STYLE="letter-spacing: 1pt"> </FONT>by law.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 178%">(7)
The contractor will include<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the provisions of Paragraphs (I) <FONT STYLE="letter-spacing: 0.4pt">
</FONT>through (7) in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>every subcontract or <FONT STYLE="letter-spacing: 0.25pt"> </FONT>purchase
order unless exempted <FONT STYLE="letter-spacing: 1.45pt"> </FONT>by rules, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>regulations
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>or <FONT STYLE="letter-spacing: 0.15pt"> </FONT>orders of <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>Secretary of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Labor <FONT STYLE="letter-spacing: 0.7pt">
</FONT>issued pursuant to<FONT STYLE="letter-spacing: 0.25pt"> </FONT>Section 204 of<FONT STYLE="letter-spacing: 0.6pt"> </FONT>Executive<FONT STYLE="letter-spacing: 1.3pt">
</FONT>Order No.<FONT STYLE="letter-spacing: 0.7pt"> </FONT>11246<FONT STYLE="letter-spacing: 1pt"> </FONT>of<FONT STYLE="letter-spacing: 0.25pt">
</FONT>September 24, 1965, so<FONT STYLE="letter-spacing: 0.35pt"> </FONT>that<FONT STYLE="letter-spacing: 0.55pt"> </FONT>such
provision<FONT STYLE="letter-spacing: 1.4pt"> </FONT>will be<FONT STYLE="letter-spacing: 0.95pt"> </FONT>binding<FONT STYLE="letter-spacing: 1.45pt">
</FONT>upon<FONT STYLE="letter-spacing: 0.95pt"> </FONT>each subcontractor or<FONT STYLE="letter-spacing: 0.95pt"> </FONT>vendor.
The contractor <FONT STYLE="letter-spacing: 0.35pt"> </FONT>will take such action with respect to any subcontract or <FONT STYLE="letter-spacing: 0.7pt">
</FONT>purchase order <FONT STYLE="letter-spacing: 1pt"> </FONT>as <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the contracting
agency may <FONT STYLE="letter-spacing: 0.6pt"> </FONT>direct as a <FONT STYLE="letter-spacing: 0.35pt"> </FONT>means of enforcing
such provisions including sanctions for non-compliance; provided, however,<FONT STYLE="letter-spacing: 1.3pt"> </FONT>that<FONT STYLE="letter-spacing: 0.3pt">
</FONT>in<FONT STYLE="letter-spacing: 0.45pt"> </FONT>the event<FONT STYLE="letter-spacing: 0.7pt"> </FONT>the contractor becomes
involved in, or is threatened <FONT STYLE="letter-spacing: 0.3pt"> </FONT>with litigation with a subcontractor or<FONT STYLE="letter-spacing: 1.45pt">
</FONT>vendor as a<FONT STYLE="letter-spacing: 1pt"> </FONT>result<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of such direction
by the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>contracting agency, the contractor <FONT STYLE="letter-spacing: 0.95pt"> </FONT>may
request <FONT STYLE="letter-spacing: 1.3pt"> </FONT>the United <FONT STYLE="letter-spacing: 0.45pt"> </FONT>States <FONT STYLE="letter-spacing: 0.95pt">
</FONT>to enter <FONT STYLE="letter-spacing: 0.7pt"> </FONT>into such litigation<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to
protect the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>interests<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.6pt">
</FONT>the<FONT STYLE="letter-spacing: 0.4pt"> </FONT>United States.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">No. 950CP-I
Rev.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">FORM 88 UNIT-WYO.-COLO</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="line-height: 178%"><B>OIL AND GAS
LEASE</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">AGREEMENT,
Made and entered into this <U> </U> day of <U> </U>, <U>20 </U>, by and between <U> </U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">,
party of the first part, hereinafter called lessor, (whether one or more) and <U> </U>,party of the second part, lessee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">WITNESSETH:
That the lessor for and in consideration of <U> </U> Dollars in hand paid, receipt of which is hereby acknowledged, of the royalties
herein provided, and of the agreements of lessee herein contained, herby grants, leases and lets exclusively unto lessee for the
purpose of investigating, exploring, prospecting, drilling and mining for the producing oil, gas, casinghead gas, and all other
minerals, laying pipe lines, building tanks, power stations, telephone lines and other structures thereon to produce, save, take
care of, treat, transport, and own said products, and housing its employees, the following described land in<U> </U> County, State
of <U> </U> to wit: <U> </U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%"><U>EXHIBIT
&ldquo;5&rdquo; </U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">including all
minerals underlying lakes, streams, roads, easements and rights-of-way which traverse or adjoin said lands, which minerals are
owned or claimed by lessor or rights to which minerals may hereafter be established in lessor; and also, in addition to the above-described
land, all land adjoining the same and owned or claimed by lessor and containing <U> </U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">acres
more or less.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">TO
HAVE AND TO HOLD the same (subject to the other provisions herein contained) for a term of ten years from this date (call &ldquo;primary
term&rdquo;) and as long thereafter as oil or gas or casinghead gas or either or any of them, is produced therefrom; or as much
longer thereafter as the lessee in good faith shall conduct drilling operations thereon and should production result from such
operations, this lease shall remain in full force an effect as long as oil or gas or casinghead gas, shall be produced therefrom.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">In
consideration of the premises it is hereby mutually agreed as follows:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 8.35pt 0 0; text-align: justify; text-indent: 0.25in">1. The <FONT STYLE="letter-spacing: 1.4pt">
</FONT>lessee shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>deliver to the credit <FONT STYLE="letter-spacing: 0.95pt"> </FONT>of
<FONT STYLE="letter-spacing: 1pt"> </FONT>the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>lessor as <FONT STYLE="letter-spacing: 1.4pt">
</FONT>royalty, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>free of cost, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the pipe line <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to which lessee <FONT STYLE="letter-spacing: 0.4pt"> </FONT>may
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>connect its <FONT STYLE="letter-spacing: 0.55pt"> </FONT>wells <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>equal <FONT STYLE="letter-spacing: 0.05pt"> </FONT>one-eighth ( 1/8) part
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of all <FONT STYLE="letter-spacing: 1pt"> </FONT>oil <FONT STYLE="letter-spacing: 1.45pt">
</FONT>produced and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>saved from <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the leased
premises, or at the lessee's <FONT STYLE="letter-spacing: 0.35pt"> </FONT>option, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>may
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>pay <FONT STYLE="letter-spacing: 0.45pt"> </FONT>to <FONT STYLE="letter-spacing: 1.3pt">
</FONT>the lessor <FONT STYLE="letter-spacing: 0.7pt"> </FONT>for such one-eight (1/8) royalty the market price for oil <FONT STYLE="letter-spacing: 0.4pt">
</FONT>of <FONT STYLE="letter-spacing: 0.95pt"> </FONT>like grade <FONT STYLE="letter-spacing: 0.6pt"> </FONT>and <FONT STYLE="letter-spacing: 0.4pt">
</FONT>gravity <FONT STYLE="letter-spacing: 1pt"> </FONT>prevailing <FONT STYLE="letter-spacing: 0.05pt"> </FONT>in the field <FONT STYLE="letter-spacing: 0.05pt">
</FONT>where <FONT STYLE="letter-spacing: 0.4pt"> </FONT>produced on the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>day such oil
is run into the <FONT STYLE="letter-spacing: 1pt"> </FONT>pipe <FONT STYLE="letter-spacing: 0.3pt"> </FONT>line, <FONT STYLE="letter-spacing: 0.95pt">
</FONT>or into storage tanks.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><I>2. </I>The lessee shall pay lessor, <FONT STYLE="letter-spacing: 0.4pt">
</FONT>as <FONT STYLE="letter-spacing: 0.25pt"> </FONT>royalty, one-eighth ( 1/8) <FONT STYLE="letter-spacing: 0.4pt"> </FONT>of
the proceeds from the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>sale of <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the gas,
as such, <FONT STYLE="letter-spacing: 0.55pt"> </FONT>for</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">gas from <FONT STYLE="letter-spacing: 0.15pt"> </FONT>wells <FONT STYLE="letter-spacing: 1.45pt">
</FONT>where gas only <FONT STYLE="letter-spacing: 0.05pt"> </FONT>is <FONT STYLE="letter-spacing: 1pt"> </FONT>found, and <FONT STYLE="letter-spacing: 0.95pt">
</FONT>where not <FONT STYLE="letter-spacing: 0.05pt"> </FONT>used or sold <FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.35pt">
</FONT>pay <FONT STYLE="letter-spacing: 0.4pt"> </FONT>Fifty Dollars <FONT STYLE="letter-spacing: 0.45pt"> </FONT>($50.00) <FONT STYLE="letter-spacing: 0.6pt">
</FONT>per annum <FONT STYLE="letter-spacing: 0.25pt"> </FONT>as <FONT STYLE="letter-spacing: 1.4pt"> </FONT>royalty from each
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>such <FONT STYLE="letter-spacing: 0.35pt"> </FONT>well, <FONT STYLE="letter-spacing: 0.45pt">
</FONT>and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>while <FONT STYLE="letter-spacing: 0.95pt"> </FONT>such <FONT STYLE="letter-spacing: 0.35pt">
</FONT>royalty <FONT STYLE="letter-spacing: 0.05pt"> </FONT>is <FONT STYLE="letter-spacing: 0.45pt"> </FONT>so paid <FONT STYLE="letter-spacing: 0.25pt">
</FONT>such <FONT STYLE="letter-spacing: 0.6pt"> </FONT>well shall be <FONT STYLE="letter-spacing: 0.55pt"> </FONT>held to <FONT STYLE="letter-spacing: 0.15pt">
</FONT>be <FONT STYLE="letter-spacing: 1pt"> </FONT>a <FONT STYLE="letter-spacing: 1.4pt"> </FONT>producing well. <FONT STYLE="letter-spacing: 0.4pt">
</FONT>The lessor to have gas <FONT STYLE="letter-spacing: 0.45pt"> </FONT>free of charge from <FONT STYLE="letter-spacing: 0.45pt">
</FONT>any <FONT STYLE="letter-spacing: 0.6pt"> </FONT>gas well <FONT STYLE="letter-spacing: 0.4pt"> </FONT>on the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>leased <FONT STYLE="letter-spacing: 0.95pt"> </FONT>premises for stoves and inside lights in <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>principal dwelling house <FONT STYLE="letter-spacing: 0.25pt"> </FONT>on
said <FONT STYLE="letter-spacing: 0.6pt"> </FONT>land <FONT STYLE="letter-spacing: 0.4pt"> b</FONT>y <FONT STYLE="letter-spacing: 0.4pt">
</FONT>making <FONT STYLE="letter-spacing: 0.45pt"> </FONT>his own connections with the well, the <FONT STYLE="letter-spacing: 0.35pt">
</FONT>use <FONT STYLE="letter-spacing: 1.4pt"> </FONT>of said gas <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to <FONT STYLE="letter-spacing: 1.4pt">
</FONT>be <FONT STYLE="letter-spacing: 0.4pt"> </FONT>at <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the lessor's sole risk and
expense.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">3. To pay <FONT STYLE="letter-spacing: 1.45pt">
</FONT>lessor for <FONT STYLE="letter-spacing: 1.3pt"> </FONT>gas <FONT STYLE="letter-spacing: 0.3pt"> </FONT>produced from any
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>oil <FONT STYLE="letter-spacing: 1.4pt"> </FONT>well <FONT STYLE="letter-spacing: 0.6pt">
</FONT>and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>used off the premises<FONT STYLE="letter-spacing: 1.4pt"> </FONT>or in
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>the manufacturing<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of gasoline<FONT STYLE="letter-spacing: 1.4pt">
</FONT>or <FONT STYLE="letter-spacing: 1pt"> </FONT>any <FONT STYLE="letter-spacing: 0.25pt"> </FONT>other <FONT STYLE="letter-spacing: 0.15pt">
</FONT>product a royalty of oneeight (1/8) <FONT STYLE="letter-spacing: 1.4pt"> </FONT>of <FONT STYLE="letter-spacing: 0.95pt">
</FONT>the <FONT STYLE="letter-spacing: 1.45pt"> </FONT>market value, at the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>mouth
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>well, <FONT STYLE="letter-spacing: 1.4pt">
</FONT>payable monthly at the prevailing market price.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">4. <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If
</FONT>operation&bull; for <FONT STYLE="letter-spacing: 0.7pt"> </FONT>the drilling of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>well <FONT STYLE="letter-spacing: 1pt"> </FONT>for oil or gas arc not commenced on
said ian on or before <FONT STYLE="letter-spacing: 0.05pt"> </FONT>one <FONT STYLE="letter-spacing: 1.45pt"> </FONT>year <FONT STYLE="letter-spacing: 0.35pt">
</FONT>from this <FONT STYLE="letter-spacing: 0.25pt"> </FONT>date, this lease <FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall
terminate <FONT STYLE="letter-spacing: 0.35pt"> </FONT>a&bull; to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>both parties, <FONT STYLE="letter-spacing: 0.45pt">
</FONT>unless the Jesse&lt; shall. on <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or <FONT STYLE="letter-spacing: 0.35pt"> </FONT>before
one <FONT STYLE="letter-spacing: 1pt"> </FONT>year <FONT STYLE="letter-spacing: 0.35pt"> </FONT>from <FONT STYLE="letter-spacing: 1.4pt">
</FONT>this date, <FONT STYLE="letter-spacing: 0.95pt"> </FONT>pay <FONT STYLE="letter-spacing: 0.95pt"> </FONT>or <FONT STYLE="letter-spacing: 1pt">
</FONT>tender <FONT STYLE="letter-spacing: 0.6pt"> </FONT>to the <FONT STYLE="letter-spacing: 1pt"> </FONT>lessor <FONT STYLE="letter-spacing: 0.3pt">
</FONT>or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>for the lessor&rsquo;s <FONT STYLE="letter-spacing: 0.4pt"> </FONT>credit
in<U> </U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.5pt 0 0; text-align: justify; text-indent: 0.5in">Bank at <U> </U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 8.25pt 0 0; text-align: justify">or its <FONT STYLE="letter-spacing: 0.05pt">
</FONT>successor <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or successors, which bank and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>its successors are lessor's agents <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and which shall continue<FONT STYLE="letter-spacing: 0.95pt">
</FONT>as the depository regardless of changes<FONT STYLE="letter-spacing: 1.3pt"> </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">in
<FONT STYLE="letter-spacing: 0.45pt"> </FONT></FONT>the ownership of the land, the sum of <U> </U>Dollars which <FONT STYLE="letter-spacing: 0.55pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>operate as a rental and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>cover
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>the privilege <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of deferring <FONT STYLE="letter-spacing: 0.55pt">
</FONT>the <FONT STYLE="letter-spacing: 0.35pt"> </FONT>commencement of operations <FONT STYLE="letter-spacing: 0.25pt"> </FONT>for
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>drilling <FONT STYLE="letter-spacing: 0.15pt">
</FONT>of <FONT STYLE="letter-spacing: 0.95pt"> </FONT>a <FONT STYLE="letter-spacing: 1.3pt"> </FONT>well one year from <FONT STYLE="letter-spacing: 0.45pt">
</FONT>said date. In like manner and upon <FONT STYLE="letter-spacing: 0.95pt"> </FONT>payments <FONT STYLE="letter-spacing: 0.6pt">
</FONT>or <FONT STYLE="letter-spacing: 0.35pt"> </FONT>tenders <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.55pt">
</FONT>commencement <FONT STYLE="letter-spacing: 1pt"> </FONT>of operations for the drilling of <FONT STYLE="letter-spacing: 0.05pt">
</FONT>a <FONT STYLE="letter-spacing: 0.7pt"> </FONT>well <FONT STYLE="letter-spacing: 0.3pt"> </FONT>may <FONT STYLE="letter-spacing: 1pt">
</FONT>be <FONT STYLE="letter-spacing: 0.7pt"> </FONT>further deferred <FONT STYLE="letter-spacing: 0.35pt"> </FONT>for like periods
successively during <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the primary term <FONT STYLE="letter-spacing: 0.95pt"> </FONT>of
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>this <FONT STYLE="letter-spacing: 0.7pt"> </FONT>lease. And it <FONT STYLE="letter-spacing: 0.4pt">
</FONT>is <FONT STYLE="letter-spacing: 1.45pt"> </FONT>understood and <FONT STYLE="letter-spacing: 0.95pt"> </FONT>agreed that
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>consideration first recited <FONT STYLE="letter-spacing: 0.6pt">
</FONT>herein, the down payment, covers not <FONT STYLE="letter-spacing: 0.4pt"> </FONT>only <FONT STYLE="letter-spacing: 0.4pt">
</FONT>the privileges <FONT STYLE="letter-spacing: 0.6pt"> </FONT>granted <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to <FONT STYLE="letter-spacing: 0.35pt">
</FONT>the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>date when said rental <FONT STYLE="letter-spacing: 0.45pt"> </FONT>is payable
as <FONT STYLE="letter-spacing: 0.25pt"> </FONT>aforesaid, <FONT STYLE="letter-spacing: 1pt"> </FONT>but also the <FONT STYLE="letter-spacing: 1.3pt">
</FONT>lessee's option <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of <FONT STYLE="letter-spacing: 0.45pt"> </FONT>extending that
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>period <FONT STYLE="letter-spacing: 0.05pt"> </FONT>as aforesaid,<FONT STYLE="letter-spacing: 1pt">
</FONT>and any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all other rights conferred.
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>All <FONT STYLE="letter-spacing: 0.7pt"> </FONT>payments <FONT STYLE="letter-spacing: 0.15pt">
</FONT>or <FONT STYLE="letter-spacing: 1.4pt"> </FONT>tenders <FONT STYLE="letter-spacing: 0.3pt"> </FONT>may be made <FONT STYLE="letter-spacing: 0.3pt">
</FONT>by <FONT STYLE="letter-spacing: 0.6pt"> </FONT>check <FONT STYLE="letter-spacing: 0.4pt"> </FONT>or draft <FONT STYLE="letter-spacing: 0.3pt">
</FONT>of lessee or any assignee thereof,<FONT STYLE="letter-spacing: 0.95pt"> </FONT>mailed <FONT STYLE="letter-spacing: 1.3pt">
</FONT>or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>delivered on <FONT STYLE="letter-spacing: 0.6pt"> </FONT>or before <FONT STYLE="letter-spacing: 1.3pt">
</FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>rental <FONT STYLE="letter-spacing: 0.05pt"> </FONT>paying date. Lessee <FONT STYLE="letter-spacing: 0.95pt">
</FONT>may at <FONT STYLE="letter-spacing: 0.35pt"> </FONT>any 1me execute <FONT STYLE="letter-spacing: 0.55pt"> </FONT>and deliver
to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>lessor <FONT STYLE="letter-spacing: 0.25pt"> </FONT>or place <FONT STYLE="letter-spacing: 0.35pt">
</FONT>of <FONT STYLE="letter-spacing: 0.95pt"> </FONT>record <FONT STYLE="letter-spacing: 1.3pt"> </FONT>a release <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or <FONT STYLE="letter-spacing: 0.95pt"> </FONT>releases <FONT STYLE="letter-spacing: 1.3pt"> </FONT>covering any <FONT STYLE="letter-spacing: 1.3pt">
</FONT>portion<FONT STYLE="letter-spacing: 1.45pt"> </FONT>or portions<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>above described premises<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and
thereby surrender <FONT STYLE="letter-spacing: 0.95pt"> </FONT>this lease as to <FONT STYLE="letter-spacing: 1.4pt"> </FONT>such
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>portion or portions <FONT STYLE="letter-spacing: 0.25pt"> </FONT>and be relieved of
<FONT STYLE="letter-spacing: 1pt"> </FONT>all obligations <FONT STYLE="letter-spacing: 0.45pt"> </FONT>as to the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>acreage surrendered <FONT STYLE="letter-spacing: 1pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>thereafter
the rentals payable hereunder shall be <FONT STYLE="letter-spacing: 0.4pt"> </FONT>reduced in <FONT STYLE="letter-spacing: 0.95pt">
</FONT>the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>proportion <FONT STYLE="letter-spacing: 0.55pt"> </FONT>that the <FONT STYLE="letter-spacing: 1pt">
</FONT>acreage covered herein <FONT STYLE="letter-spacing: 0.3pt"> </FONT>is <FONT STYLE="letter-spacing: 0.95pt"> </FONT>reduced
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>by <FONT STYLE="letter-spacing: 0.45pt"> </FONT>said release <FONT STYLE="letter-spacing: 0.35pt">
</FONT>or releases. Notwithstanding the death of <FONT STYLE="letter-spacing: 1.3pt"> </FONT>the lessor,<FONT STYLE="letter-spacing: 1.3pt">
</FONT>or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>his successor in interest, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the-
payment or tender <FONT STYLE="letter-spacing: 0.55pt"> </FONT>of <FONT STYLE="letter-spacing: 0.6pt"> </FONT>rentals <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">in
</FONT>the <FONT STYLE="letter-spacing: 1.45pt"> </FONT>manner <FONT STYLE="letter-spacing: 0.95pt"> </FONT>provided <FONT STYLE="letter-spacing: 1.3pt">
</FONT>above <FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.45pt"> </FONT>be binding on the <FONT STYLE="letter-spacing: 0.3pt">
h</FONT>eirs, devisees, executors <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and <FONT STYLE="letter-spacing: 0.45pt"> </FONT>administrators
of such persons.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">5. <FONT STYLE="letter-spacing: 1.3pt"> </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If<FONT STYLE="letter-spacing: 1pt">
</FONT></FONT>at any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>time <FONT STYLE="letter-spacing: 0.15pt"> </FONT>prior <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to the discovery <FONT STYLE="letter-spacing: 0.45pt"> </FONT>of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>oil or gas
on this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>land and <FONT STYLE="letter-spacing: 0.35pt"> </FONT>during the term of <FONT STYLE="letter-spacing: 0.4pt">
</FONT>this <FONT STYLE="letter-spacing: 1.3pt"> </FONT>lease, the lessee <FONT STYLE="letter-spacing: 1pt"> </FONT>shall drill
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a <FONT STYLE="letter-spacing: 0.45pt"> </FONT>dry <FONT STYLE="letter-spacing: 0.35pt">
</FONT>hole, or holes, on this land, this lease shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>not terminate, <FONT STYLE="letter-spacing: 0.25pt">
</FONT>provided <FONT STYLE="letter-spacing: 0.6pt"> </FONT>operations <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for the drilling
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>of <FONT STYLE="letter-spacing: 0.4pt"> </FONT>a well shall be commenced by the next
ensuing<FONT STYLE="letter-spacing: 0.7pt"> </FONT>rental <FONT STYLE="letter-spacing: 0.95pt"> </FONT>paying date, or provided
the lessee begins <FONT STYLE="letter-spacing: 0.6pt"> </FONT>or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>resumes <FONT STYLE="letter-spacing: 0.35pt">
</FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>payment <FONT STYLE="letter-spacing: 0.7pt"> </FONT>of rentals 1n the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>manner and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>amount <FONT STYLE="letter-spacing: 0.35pt"> </FONT>above <FONT STYLE="letter-spacing: 1.3pt">
</FONT>herein <FONT STYLE="letter-spacing: 1.3pt"> </FONT>provided; <FONT STYLE="letter-spacing: 1.3pt"> </FONT>and <FONT STYLE="letter-spacing: 1.45pt">
</FONT>in this <FONT STYLE="letter-spacing: 1.3pt"> </FONT>event the preceding paragraphs. hereof <FONT STYLE="letter-spacing: 0.95pt">
</FONT>governing the payment of rental and the manner and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>effect <FONT STYLE="letter-spacing: 0.45pt">
</FONT>thereof shall continue in force.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">6. <FONT STYLE="letter-spacing: 1.3pt"> </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If
</FONT>said <FONT STYLE="letter-spacing: 0.3pt"> </FONT>lessor <FONT STYLE="letter-spacing: 0.25pt"> </FONT>owns <FONT STYLE="letter-spacing: 0.45pt">
</FONT>a less interest in <FONT STYLE="letter-spacing: 1.45pt"> </FONT>the above <FONT STYLE="letter-spacing: 0.7pt"> </FONT>described
land <FONT STYLE="letter-spacing: 0.95pt"> </FONT>than the entire and <FONT STYLE="letter-spacing: 0.95pt"> </FONT>undivided <FONT STYLE="letter-spacing: 1.3pt">
</FONT>fee simple estate <FONT STYLE="letter-spacing: 1.3pt"> </FONT>herein, then <FONT STYLE="letter-spacing: 1.45pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>royalties <FONT STYLE="letter-spacing: 0.35pt"> </FONT>and rentals herein <FONT STYLE="letter-spacing: 0.05pt">
</FONT>provided <FONT STYLE="letter-spacing: 1.3pt"> </FONT>for shall be paid <FONT STYLE="letter-spacing: 1.4pt"> </FONT>the <FONT STYLE="letter-spacing: 1.3pt">
</FONT>lessor only in <FONT STYLE="letter-spacing: 0.95pt"> </FONT>the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>proportion which
his interest <FONT STYLE="letter-spacing: 0.3pt"> </FONT>bears <FONT STYLE="letter-spacing: 1.45pt"> </FONT>to the whole and undivided
<FONT STYLE="letter-spacing: 0.6pt"> </FONT>fee.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 9.15pt 0 0; text-indent: 0.25in"><I>7. </I>Lessee shall <FONT STYLE="letter-spacing: 0.35pt">
</FONT>have the right to use, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>free <FONT STYLE="letter-spacing: 0.7pt"> </FONT>of <FONT STYLE="letter-spacing: 0.4pt">
</FONT>cost, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>gas, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>oil, and water produced
on said land for <FONT STYLE="letter-spacing: 0.15pt"> </FONT>its operation thereon, except water from wells of <FONT STYLE="letter-spacing: 0.95pt">
</FONT>lessor. When requested by <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lessor, lessee <FONT STYLE="letter-spacing: 0.35pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>bury <FONT STYLE="letter-spacing: 0.15pt"> </FONT>his <FONT STYLE="letter-spacing: 0.35pt">
</FONT>pipe lines below <FONT STYLE="letter-spacing: 0.95pt"> </FONT>plow depth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">No well shall <FONT STYLE="letter-spacing: 0.7pt"> </FONT>be <FONT STYLE="letter-spacing: 0.25pt">
</FONT>drilled <FONT STYLE="letter-spacing: 0.55pt"> </FONT>nearer <FONT STYLE="letter-spacing: 0.35pt"> </FONT>than <FONT STYLE="letter-spacing: 0.35pt">
</FONT>200<I> </I>feet to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>house <FONT STYLE="letter-spacing: 1.4pt"> </FONT>or
barn <FONT STYLE="letter-spacing: 0.6pt"> </FONT>now on said premises, without <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>written <FONT STYLE="letter-spacing: 0.25pt"> </FONT>consent of the <FONT STYLE="letter-spacing: 1.3pt">
</FONT>lessor. Lessee <FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.7pt"> </FONT>pay for damages
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>caused by its operations to growing crops on <FONT STYLE="letter-spacing: 1pt"> </FONT>said
land. Lessee shall have the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>right at any <FONT STYLE="letter-spacing: 0.45pt"> </FONT>time
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>to<I> <FONT STYLE="letter-spacing: 0.25pt"> </FONT></I>remove <FONT STYLE="letter-spacing: 0.55pt">
</FONT>all improvements, machinery. and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>fixtures <FONT STYLE="letter-spacing: 0.15pt">
</FONT>placed or erected by <FONT STYLE="letter-spacing: 0.25pt"> l</FONT>essee on <FONT STYLE="letter-spacing: 0.05pt"> </FONT>said
premises,<FONT STYLE="letter-spacing: 0.7pt"> </FONT>including the right to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>pull and
<FONT STYLE="letter-spacing: 0.7pt"> </FONT>remove <FONT STYLE="letter-spacing: 0.3pt"> </FONT>casings.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">8. <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If<FONT STYLE="letter-spacing: 1pt">
</FONT></FONT>the lessee shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>commence to <FONT STYLE="letter-spacing: 0.45pt"> </FONT>drill
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>a well within <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the. term <FONT STYLE="letter-spacing: 0.4pt">
</FONT>of this <FONT STYLE="letter-spacing: 1.45pt"> </FONT>lease <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or any <FONT STYLE="letter-spacing: 1.45pt">
</FONT>extension thereof, the lessee shall have <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the right <FONT STYLE="letter-spacing: 0.6pt">
</FONT>to drill <FONT STYLE="letter-spacing: 0.7pt"> </FONT>such well to completion with <FONT STYLE="letter-spacing: 0.7pt"> </FONT>reasonable
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>diligence <FONT STYLE="letter-spacing: 0.25pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>dispatch,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>and if oil or gas, or either of the<FONT STYLE="letter-spacing: 0.45pt">m,</FONT>
be found <FONT STYLE="letter-spacing: 1pt"> </FONT>in paying quantities, this lease <FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall
continue <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and <FONT STYLE="letter-spacing: 0.95pt"> </FONT>be in <FONT STYLE="letter-spacing: 0.4pt">
</FONT>force with the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>like effect as <FONT STYLE="letter-spacing: 1.45pt"> </FONT>if
<FONT STYLE="letter-spacing: 1pt"> </FONT>such <FONT STYLE="letter-spacing: 0.95pt"> </FONT>well <FONT STYLE="letter-spacing: 1pt">
</FONT>had <FONT STYLE="letter-spacing: 0.15pt"> </FONT>been completed within <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the
term of years herein <FONT STYLE="letter-spacing: 0.35pt"> </FONT>first <FONT STYLE="letter-spacing: 0.05pt"> </FONT>mentioned.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">9. <FONT STYLE="letter-spacing: 1.3pt"> </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If
</FONT>the estate <FONT STYLE="letter-spacing: 0.95pt"> </FONT>of <FONT STYLE="letter-spacing: 1pt"> </FONT>either <FONT STYLE="letter-spacing: 1.4pt">
</FONT>party hereto is assigned <FONT STYLE="letter-spacing: 0.25pt"> </FONT>(and the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>privilege
of <FONT STYLE="letter-spacing: 1.4pt"> </FONT>assigning <FONT STYLE="letter-spacing: 1.45pt"> </FONT>in <FONT STYLE="letter-spacing: 1.4pt">
</FONT>whole or <FONT STYLE="letter-spacing: 0.4pt"> </FONT>in part is <FONT STYLE="letter-spacing: 1pt"> </FONT>expressly allowed),
the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>covenants <FONT STYLE="letter-spacing: 0.7pt"> </FONT>hereof shall extend <FONT STYLE="letter-spacing: 1.4pt">
to</FONT><I> </I>their heirs, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>executors, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>administrators.
successors <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and assigns, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>but no change
o ownership in <FONT STYLE="letter-spacing: 0.95pt"> </FONT>the land or <FONT STYLE="letter-spacing: 1pt"> </FONT>in <FONT STYLE="letter-spacing: 1pt">
</FONT>the <FONT STYLE="letter-spacing: 1.4pt"> </FONT>rentals or royalties shall be binding <FONT STYLE="letter-spacing: 1pt">
</FONT>on the lessee until <FONT STYLE="letter-spacing: 0.6pt"> </FONT>after notice <FONT STYLE="letter-spacing: 0.55pt"> </FONT>to
the lessee and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>it has <FONT STYLE="letter-spacing: 1.45pt"> </FONT>been furnished
with <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.25pt"> </FONT>written transfer or assignment
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>or a certified <FONT STYLE="letter-spacing: 0.4pt"> copy</FONT> <FONT STYLE="letter-spacing: 0.55pt">
</FONT>thereof, and in<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"> <FONT STYLE="letter-spacing: 0.3pt"> </FONT></FONT>case
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>lessee assigns this <FONT STYLE="letter-spacing: 1pt"> </FONT>lease, <FONT STYLE="letter-spacing: 1.45pt">
</FONT>in <FONT STYLE="letter-spacing: 0.6pt"> </FONT>whole <FONT STYLE="letter-spacing: 0.55pt"> </FONT>or <FONT STYLE="letter-spacing: 0.6pt">
</FONT>in <FONT STYLE="letter-spacing: 0.4pt"> </FONT>part.<FONT STYLE="letter-spacing: 0.6pt"> </FONT>lessee <FONT STYLE="letter-spacing: 0.45pt">
</FONT>shall <FONT STYLE="letter-spacing: 1.3pt"> </FONT>be <FONT STYLE="letter-spacing: 0.45pt"> </FONT>relieved of all obligations
with <FONT STYLE="letter-spacing: 1.4pt"> </FONT>respect <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>assigned <FONT STYLE="letter-spacing: 0.25pt"> </FONT>portion or portions<FONT STYLE="letter-spacing: 0.45pt"> </FONT>arising
subsequent to the date of <FONT STYLE="letter-spacing: 0.4pt"> </FONT>assignment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 9pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 9pt 0 0; text-align: justify; text-indent: 0.25in">10. <FONT STYLE="letter-spacing: 0.7pt">
</FONT>There<FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.4pt"> </FONT>be <FONT STYLE="letter-spacing: 0.45pt">
</FONT>no <FONT STYLE="letter-spacing: 0.35pt"> </FONT>obligation on the put of <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the
lessee to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>offset <FONT STYLE="letter-spacing: 0.7pt"> </FONT>wells on <FONT STYLE="letter-spacing: 0.35pt">
</FONT>separate tracts<FONT STYLE="letter-spacing: 0.95pt"> </FONT>into which the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>land
covered by this lease <FONT STYLE="letter-spacing: 0.95pt"> </FONT>may be hereafter <FONT STYLE="letter-spacing: 0.15pt"> </FONT>divided
by <FONT STYLE="letter-spacing: 1.4pt"> </FONT>sale, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>devise or otherwise, <FONT STYLE="letter-spacing: 0.6pt">
</FONT>or <FONT STYLE="letter-spacing: 0.25pt"> </FONT>to furnish separate measuring <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or
receiving tanks.<FONT STYLE="letter-spacing: 1.4pt"> </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">It <FONT STYLE="letter-spacing: 0.55pt">
</FONT></FONT>is <FONT STYLE="letter-spacing: 0.7pt"> </FONT>hereby <FONT STYLE="letter-spacing: 0.35pt"> </FONT>agreed that, in
<FONT STYLE="letter-spacing: 1pt"> </FONT>the event this <FONT STYLE="letter-spacing: 1.45pt"> </FONT>lease shall <FONT STYLE="letter-spacing: 0.7pt">
</FONT>be <FONT STYLE="letter-spacing: 0.25pt"> </FONT>assigned <FONT STYLE="letter-spacing: 0.35pt"> </FONT>as <FONT STYLE="letter-spacing: 1.3pt">
</FONT>to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>a <FONT STYLE="letter-spacing: 1.4pt"> </FONT>part or as to parts <FONT STYLE="letter-spacing: 0.7pt">
</FONT>of the above described <FONT STYLE="letter-spacing: 0.55pt"> </FONT>lands, <FONT STYLE="letter-spacing: 1pt"> </FONT>and
the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>holder <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or owner of <FONT STYLE="letter-spacing: 0.95pt">
</FONT>any <FONT STYLE="letter-spacing: 0.45pt"> </FONT>such <FONT STYLE="letter-spacing: 0.7pt"> </FONT>part or parts shall <FONT STYLE="letter-spacing: 1.45pt">
</FONT>fail <FONT STYLE="letter-spacing: 0.25pt"> </FONT>or <FONT STYLE="letter-spacing: 0.95pt"> </FONT>make <FONT STYLE="letter-spacing: 1pt">
</FONT>default <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the payment of <FONT STYLE="letter-spacing: 0.6pt">
</FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>proportionate part of the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>rent
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>due from him <FONT STYLE="letter-spacing: 0.95pt"> </FONT>or them, on an <FONT STYLE="letter-spacing: 0.95pt">
</FONT>acreage <FONT STYLE="letter-spacing: 0.15pt"> </FONT>basis, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>such default <FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.35pt"> </FONT>not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>operate <FONT STYLE="letter-spacing: 0.7pt">
</FONT>to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>defeat or affect this <FONT STYLE="letter-spacing: 1.45pt"> </FONT>lease
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in so <FONT STYLE="letter-spacing: 1.45pt"> </FONT>far as <FONT STYLE="letter-spacing: 1.45pt">
</FONT>it <FONT STYLE="letter-spacing: 1.4pt"> </FONT>covers a <FONT STYLE="letter-spacing: 1.4pt"> </FONT>part or <FONT STYLE="letter-spacing: 0.35pt">
</FONT>part of said land <FONT STYLE="letter-spacing: 1pt"> </FONT>upon <FONT STYLE="letter-spacing: 1.4pt"> </FONT>which <FONT STYLE="letter-spacing: 0.55pt">
</FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>said lessee or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>any <FONT STYLE="letter-spacing: 0.6pt">
</FONT>assignee hereof shall make due payments <FONT STYLE="letter-spacing: 0.25pt"> </FONT>of <FONT STYLE="letter-spacing: 0.55pt">
</FONT>said rentals.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">11. <FONT STYLE="letter-spacing: 0.3pt"> </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If<FONT STYLE="letter-spacing: 0.35pt">
</FONT></FONT>at <FONT STYLE="letter-spacing: 1pt"> </FONT>any time there be <FONT STYLE="letter-spacing: 0.05pt"> </FONT>as <FONT STYLE="letter-spacing: 0.7pt">
</FONT>many as <FONT STYLE="letter-spacing: 0.7pt"> </FONT>six <FONT STYLE="letter-spacing: 1pt"> </FONT>parties <FONT STYLE="letter-spacing: 0.05pt">
</FONT>(or more) entitled <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to receive royalties under this <FONT STYLE="letter-spacing: 0.3pt">
</FONT>lease, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>lessee <FONT STYLE="letter-spacing: 1.45pt"> </FONT>may withhold payment
thereof unless <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and until all parties designate in <FONT STYLE="letter-spacing: 1.3pt">
</FONT>writing in <FONT STYLE="letter-spacing: 0.6pt"> </FONT>a <FONT STYLE="letter-spacing: 0.6pt"> </FONT>recordable instrument
to be <FONT STYLE="letter-spacing: 0.6pt"> </FONT>filed with <FONT STYLE="letter-spacing: 0.7pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>lessee, a Trustee to <FONT STYLE="letter-spacing: 0.6pt"> </FONT>receive all <FONT STYLE="letter-spacing: 1pt"> </FONT>royalty
payments<FONT STYLE="letter-spacing: 1.4pt"> </FONT>due <FONT STYLE="letter-spacing: 0.05pt"> </FONT>hereunder and to execute division
and <FONT STYLE="letter-spacing: 1pt"> </FONT>transfer <FONT STYLE="letter-spacing: 0.35pt"> </FONT>orders on behalf of said parties
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>their respective <FONT STYLE="letter-spacing: 0.6pt">
</FONT>successors in <FONT STYLE="letter-spacing: 1pt"> title</FONT>.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 8.75pt 0 0; text-indent: 0.25in">12. Lessee <FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall have the <FONT STYLE="letter-spacing: 1.45pt"> </FONT>right to unitize, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>pool,
<FONT STYLE="letter-spacing: 0.05pt"> or</FONT><FONT STYLE="letter-spacing: 1.4pt"> combine</FONT> all or any part of the <FONT STYLE="letter-spacing: 0.55pt">
</FONT>above <FONT STYLE="letter-spacing: 0.4pt"> </FONT>described <FONT STYLE="letter-spacing: 0.15pt"> </FONT>ands with other.
lands in <FONT STYLE="letter-spacing: 0.95pt"> </FONT>the <FONT STYLE="letter-spacing: 0.7pt"> sa</FONT>me general <FONT STYLE="letter-spacing: 0.55pt">
</FONT>area <FONT STYLE="letter-spacing: 1.45pt"> </FONT>by entering 1nto <FONT STYLE="letter-spacing: 1.45pt"> </FONT>a cooperative
<FONT STYLE="letter-spacing: 0.45pt"> </FONT>or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>unit <FONT STYLE="letter-spacing: 0.45pt">
</FONT>plan <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of development or operation approved by any <FONT STYLE="letter-spacing: 1.45pt">
</FONT>governmental authority and, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>from <FONT STYLE="letter-spacing: 1.4pt"> </FONT>time
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>to time, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>with like approval, to modify,
change or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>terminate any such plan or agreement <FONT STYLE="letter-spacing: 0.15pt">
</FONT>and, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>in such event, the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>terms.
conditions <FONT STYLE="letter-spacing: 1.45pt"> </FONT>and provisions <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of this lease
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall be <FONT STYLE="letter-spacing: 0.25pt"> </FONT>deemed modified to conform <FONT STYLE="letter-spacing: 1.4pt">
</FONT>to the <FONT STYLE="letter-spacing: 0.4pt"> terms</FONT>, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>conditions, <FONT STYLE="letter-spacing: 1.4pt">
</FONT>and provisions <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>approved
cooperative or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>unit plan of <FONT STYLE="letter-spacing: 1.4pt"> </FONT>development
<FONT STYLE="letter-spacing: 0.4pt"> or </FONT>operation and, particularly, all drilling and development <FONT STYLE="letter-spacing: 0.95pt">
</FONT>requirements of <FONT STYLE="letter-spacing: 1.45pt"> </FONT>this <FONT STYLE="letter-spacing: 0.95pt"> </FONT>lease, express
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>or implied, <FONT STYLE="letter-spacing: 0.95pt"> </FONT>shall be <FONT STYLE="letter-spacing: 0.05pt">
</FONT>satisfied by compliance with the drilling and development requirements of such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>plan
or agreement, and this lease <FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall not terminate or <FONT STYLE="letter-spacing: 0.55pt">
</FONT>expire during the life <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of <FONT STYLE="letter-spacing: 0.55pt"> </FONT>such
plan or <FONT STYLE="letter-spacing: 0.3pt"> </FONT>agreement.<FONT STYLE="letter-spacing: 0.6pt"> </FONT>In the <FONT STYLE="letter-spacing: 1.45pt">
</FONT>event that said <FONT STYLE="letter-spacing: 0.45pt"> </FONT>above <FONT STYLE="letter-spacing: 0.95pt"> </FONT>described
<FONT STYLE="letter-spacing: 1pt"> </FONT>lands or any <FONT STYLE="letter-spacing: 1pt"> </FONT>part thereof, shall <FONT STYLE="letter-spacing: 0.6pt">
</FONT>hereafter <FONT STYLE="letter-spacing: 0.25pt"> </FONT>be operated <FONT STYLE="letter-spacing: 1pt"> </FONT>under any <FONT STYLE="letter-spacing: 0.05pt">
</FONT>such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>cooperative or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>unit <FONT STYLE="letter-spacing: 0.7pt">
</FONT>plan <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of development <FONT STYLE="letter-spacing: 0.45pt"> </FONT>or operation
whereby the production therefrom is allocated to different portions o! the land covered by <FONT STYLE="letter-spacing: 1pt"> </FONT>said
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>plan, then <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>production <FONT STYLE="letter-spacing: 0.45pt"> </FONT>allocated to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>any particular
tract<FONT STYLE="letter-spacing: 1.4pt"> </FONT>of <FONT STYLE="letter-spacing: 0.7pt"> </FONT>land shall,<FONT STYLE="letter-spacing: 1.4pt">
</FONT>for the purpose of <FONT STYLE="letter-spacing: 0.45pt"> </FONT>computing <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the
royalties to be <FONT STYLE="letter-spacing: 0.95pt"> </FONT>paid hereunder to lessor, be regarded <FONT STYLE="letter-spacing: 1.4pt">
</FONT>as having <FONT STYLE="letter-spacing: 0.45pt"> </FONT>been produced from the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>particular
tract of <FONT STYLE="letter-spacing: 0.7pt"> </FONT>land to which <FONT STYLE="letter-spacing: 0.45pt"> </FONT>it is <FONT STYLE="letter-spacing: 0.55pt">
</FONT>allocated <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>not <FONT STYLE="letter-spacing: 0.45pt">
</FONT>to any <FONT STYLE="letter-spacing: 0.4pt"> </FONT>other <FONT STYLE="letter-spacing: 0.45pt"> </FONT>tract <FONT STYLE="letter-spacing: 0.6pt">
</FONT>of <FONT STYLE="letter-spacing: 0.7pt"> </FONT>land; and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>the royalty <FONT STYLE="letter-spacing: 0.55pt">
</FONT>payments.<FONT STYLE="letter-spacing: 1.3pt"> </FONT>to <FONT STYLE="letter-spacing: 0.35pt"> </FONT>be <FONT STYLE="letter-spacing: 0.25pt">
</FONT>made hereunder to lessor <FONT STYLE="letter-spacing: 1.45pt"> </FONT>shall be <FONT STYLE="letter-spacing: 0.45pt"> </FONT>based
upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>production only as <FONT STYLE="letter-spacing: 0.25pt"> </FONT>so <FONT STYLE="letter-spacing: 1.45pt">
</FONT>allocated. Lessor <FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall formally express <FONT STYLE="letter-spacing: 0.7pt">
</FONT>lessor's consent to <FONT STYLE="letter-spacing: 0.25pt"> </FONT>any cooperative <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>unit <FONT STYLE="letter-spacing: 1.3pt"> </FONT>plan <FONT STYLE="letter-spacing: 1.45pt">
</FONT>of <FONT STYLE="letter-spacing: 0.6pt"> </FONT>development or operation adopted by lessee <FONT STYLE="letter-spacing: 0.35pt">
</FONT>and <FONT STYLE="letter-spacing: 1.3pt"> </FONT>approved <FONT STYLE="letter-spacing: 0.7pt"> </FONT>by <FONT STYLE="letter-spacing: 0.55pt">
</FONT>any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>governmental agency <FONT STYLE="letter-spacing: 0.15pt"> </FONT>by executing
the <FONT STYLE="letter-spacing: 1.4pt"> </FONT>same <FONT STYLE="letter-spacing: 0.6pt"> </FONT>upon <FONT STYLE="letter-spacing: 0.4pt">
</FONT>request <FONT STYLE="letter-spacing: 0.4pt"> </FONT>of lessee.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0; text-indent: 0.25in">13. In addition to and <FONT STYLE="letter-spacing: 0.55pt">
</FONT>not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in limitation of the rights granted in <FONT STYLE="letter-spacing: 1.3pt">
</FONT>paragraph <FONT STYLE="letter-spacing: 0.95pt"> 12</FONT><I> <FONT STYLE="letter-spacing: 0.35pt"> </FONT></I>hereof, lessee
is <FONT STYLE="letter-spacing: 0.7pt"> </FONT>hereby <FONT STYLE="letter-spacing: 0.3pt"> </FONT>granted the right and <FONT STYLE="letter-spacing: 0.25pt">
</FONT>option to consolidate, pool or combine the lands covered <FONT STYLE="letter-spacing: 1.4pt"> </FONT>by this lease. or <FONT STYLE="letter-spacing: 0.55pt">
</FONT>any <FONT STYLE="letter-spacing: 1.4pt"> </FONT>portion or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>portions thereof
or any stratum or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>strata thereunder, with <FONT STYLE="letter-spacing: 0.4pt"> </FONT>other
lands or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>like strata there under for <FONT STYLE="letter-spacing: 1.45pt"> </FONT>the
development thereof or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>for <FONT STYLE="letter-spacing: 1.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>production therefrom of oil, gas, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>casinghead <FONT STYLE="letter-spacing: 0.4pt">
</FONT>gas <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or <FONT STYLE="letter-spacing: 1pt"> </FONT>other hydrocarbons, or <FONT STYLE="letter-spacing: 1.45pt">
</FONT>any or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>all of said <FONT STYLE="letter-spacing: 0.35pt"> </FONT>products, when
in lessee's <FONT STYLE="letter-spacing: 1pt"> </FONT>discretion <FONT STYLE="letter-spacing: 0.7pt"> </FONT>and judgment it is
<FONT STYLE="letter-spacing: 1pt"> </FONT>advisable so <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to <FONT STYLE="letter-spacing: 1.4pt">
</FONT>do <FONT STYLE="letter-spacing: 0.35pt"> </FONT>for <FONT STYLE="letter-spacing: 0.05pt"> </FONT>proper development or <FONT STYLE="letter-spacing: 1pt">
</FONT>operation <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the premises, or
to conform to spacing or zoning rules of <FONT STYLE="letter-spacing: 0.4pt"> </FONT>any <FONT STYLE="letter-spacing: 0.55pt">
</FONT>lawful authority, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>such <FONT STYLE="letter-spacing: 0.45pt"> </FONT>consolidation,
pooling <FONT STYLE="letter-spacing: 1pt"> </FONT>or combining <FONT STYLE="letter-spacing: 0.7pt"> to</FONT><I> </I>be into units
of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>shape <FONT STYLE="letter-spacing: 0.4pt">
</FONT>and <FONT STYLE="letter-spacing: 1.45pt"> </FONT>dimensions as lessee <FONT STYLE="letter-spacing: 1.45pt"> </FONT>may <FONT STYLE="letter-spacing: 0.25pt">
</FONT>elect <FONT STYLE="letter-spacing: 0.25pt"> </FONT>provided that <FONT STYLE="letter-spacing: 0.95pt"> </FONT>all lands
in any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>such <FONT STYLE="letter-spacing: 0.45pt"> </FONT>unit <FONT STYLE="letter-spacing: 0.4pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.6pt"> </FONT>be contiguous <FONT STYLE="letter-spacing: 0.3pt"> </FONT>(either <FONT STYLE="letter-spacing: 0.35pt">
</FONT>adjoining or cornering) but for this <FONT STYLE="letter-spacing: 0.35pt"> </FONT>purpose<FONT STYLE="letter-spacing: 1.45pt">
</FONT>contiguity <FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall <FONT STYLE="letter-spacing: 1.45pt"> </FONT>not be deemed
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to <FONT STYLE="letter-spacing: 0.45pt"> </FONT>be destroyed <FONT STYLE="letter-spacing: 0.15pt">
</FONT>by reason of <FONT STYLE="letter-spacing: 0.6pt"> </FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>existence of a y
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>excluded street. alley, road, railroad, <FONT STYLE="letter-spacing: 0.4pt"> </FONT>canal,
stream. right <FONT STYLE="letter-spacing: 0.7pt"> </FONT>of way or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>other similar
strip or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>parcel of land. <FONT STYLE="letter-spacing: 0.7pt"> </FONT>Any unit formed
under <FONT STYLE="letter-spacing: 1pt"> </FONT>this paragraph for production <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of oil
and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>casinghead gas shall not <FONT STYLE="letter-spacing: 0.25pt"> </FONT>exceed forty-three
(43) <FONT STYLE="letter-spacing: 0.3pt"> </FONT>acres <FONT STYLE="letter-spacing: 1pt"> </FONT>in surface <FONT STYLE="letter-spacing: 0.3pt">
</FONT>area, for <FONT STYLE="letter-spacing: 0.3pt"> </FONT>production of <FONT STYLE="letter-spacing: 1.4pt"> </FONT>dry or<FONT STYLE="letter-spacing: 1.4pt">
gas</FONT> well <FONT STYLE="letter-spacing: 1.4pt"> </FONT>shall not exceed <FONT STYLE="letter-spacing: 1.45pt"> </FONT>six <FONT STYLE="letter-spacing: 0.4pt">
</FONT>hundred and sixty <FONT STYLE="letter-spacing: 0.05pt"> </FONT>(660) <FONT STYLE="letter-spacing: 1.3pt"> </FONT>acres <FONT STYLE="letter-spacing: 0.7pt">
</FONT>in <FONT STYLE="letter-spacing: 0.95pt"> </FONT>surface<FONT STYLE="letter-spacing: 1.4pt"> </FONT>area, and for production
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>of condensate or distillate shall<FONT STYLE="letter-spacing: 0.6pt"> </FONT>not <FONT STYLE="letter-spacing: 1.45pt">
</FONT>exceed three <FONT STYLE="letter-spacing: 0.3pt"> </FONT>hundred and thirty <FONT STYLE="letter-spacing: 0.6pt"> </FONT>(330)
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>acres <FONT STYLE="letter-spacing: 0.25pt"> </FONT>in surface area <FONT STYLE="letter-spacing: 0.7pt">
</FONT>unless <FONT STYLE="letter-spacing: 0.55pt"> </FONT>some larger unit for condensate <FONT STYLE="letter-spacing: 0.15pt">
</FONT>or distillate <FONT STYLE="letter-spacing: 0.35pt"> </FONT>is permitted <FONT STYLE="letter-spacing: 0.95pt"> </FONT>or
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>prescribed by lawful <FONT STYLE="letter-spacing: 0.7pt"> </FONT>authority, in which
event such larger unit shall control, provided that, if <FONT STYLE="letter-spacing: 0.25pt"> </FONT>governmental survey units
be irregular in size in the area <FONT STYLE="letter-spacing: 1.4pt"> </FONT>of <FONT STYLE="letter-spacing: 0.6pt"> </FONT>this
lease, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>size <FONT STYLE="letter-spacing: 0.7pt">
</FONT>of <FONT STYLE="letter-spacing: 0.4pt"> </FONT>any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of <FONT STYLE="letter-spacing: 0.6pt">
</FONT>the <FONT STYLE="letter-spacing: 1.45pt"> </FONT>units <FONT STYLE="letter-spacing: 0.95pt"> </FONT>mentioned herein may
be increased to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the size <FONT STYLE="letter-spacing: 1.45pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.45pt">
</FONT>there <FONT STYLE="letter-spacing: 0.55pt"> </FONT>existing <FONT STYLE="letter-spacing: 0.55pt"> </FONT>governmental survey
unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>nearest <FONT STYLE="letter-spacing: 1.3pt"> </FONT>in <FONT STYLE="letter-spacing: 1.45pt">
</FONT>size <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>unit acreage prescribed
herein. The <FONT STYLE="letter-spacing: 1.4pt"> </FONT>right and <FONT STYLE="letter-spacing: 1pt"> </FONT>option herein granted
to <FONT STYLE="letter-spacing: 0.05pt"> l</FONT>essee may <FONT STYLE="letter-spacing: 1.4pt"> </FONT>be exercised at <FONT STYLE="letter-spacing: 1pt">
</FONT>any time <FONT STYLE="letter-spacing: 1pt"> </FONT>or <FONT STYLE="letter-spacing: 0.95pt"> </FONT>from time to time, <FONT STYLE="letter-spacing: 0.35pt">
</FONT>whether <FONT STYLE="letter-spacing: 0.25pt"> </FONT>before or <FONT STYLE="letter-spacing: 1pt"> </FONT>after production
is secured and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>whether or <FONT STYLE="letter-spacing: 1.4pt"> </FONT>not a unit may
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>theretofore <FONT STYLE="letter-spacing: 0.05pt"> </FONT>have <FONT STYLE="letter-spacing: 1.3pt">
</FONT>been created for some other <FONT STYLE="letter-spacing: 0.95pt"> product, by</FONT><I> </I>executing in writing an <FONT STYLE="letter-spacing: 0.7pt">
</FONT>instrument <FONT STYLE="letter-spacing: 0.15pt"> </FONT>identifying <FONT STYLE="letter-spacing: 0.45pt"> </FONT>and <FONT STYLE="letter-spacing: 0.95pt">
</FONT>describing the unit <FONT STYLE="letter-spacing: 1.4pt"> </FONT>created. and&middot; by delivering a copy <FONT STYLE="letter-spacing: 1pt">
</FONT>thereof to <FONT STYLE="letter-spacing: 0.25pt"> </FONT>lessor or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>by <FONT STYLE="letter-spacing: 0.25pt">
</FONT>recording a copy thereof in the county where the land <FONT STYLE="letter-spacing: 0.05pt"> </FONT>1s <FONT STYLE="letter-spacing: 1.3pt">
</FONT>located. The <FONT STYLE="letter-spacing: 0.7pt"> </FONT>lands in any such unit <FONT STYLE="letter-spacing: 0.35pt"> </FONT>shall
be developed <FONT STYLE="letter-spacing: 1.3pt"> </FONT>or <FONT STYLE="letter-spacing: 1.45pt"> </FONT>operated <FONT STYLE="letter-spacing: 0.55pt">
</FONT>as one tract <FONT STYLE="letter-spacing: 1pt"> </FONT>and <FONT STYLE="letter-spacing: 0.55pt"> </FONT>any <FONT STYLE="letter-spacing: 0.35pt">
</FONT>drilling on or production <FONT STYLE="letter-spacing: 0.35pt"> </FONT>from <FONT STYLE="letter-spacing: 0.35pt"> </FONT>such
unit, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>whether or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>not from lands described
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in this <FONT STYLE="letter-spacing: 1.3pt"> </FONT>lease, shall <FONT STYLE="letter-spacing: 0.15pt">
</FONT>be deemed to <FONT STYLE="letter-spacing: 0.95pt"> </FONT>be drilling done <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or
production <FONT STYLE="letter-spacing: 0.25pt"> </FONT>secured on the lands <FONT STYLE="letter-spacing: 0.55pt"> </FONT>subject<FONT STYLE="letter-spacing: 1.3pt">
</FONT>to this lease <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for all purposes<FONT STYLE="letter-spacing: 1.4pt"> </FONT>except
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>for <FONT STYLE="letter-spacing: 1.4pt"> </FONT>the purpose <FONT STYLE="letter-spacing: 0.05pt">
</FONT>of payment <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of <FONT STYLE="letter-spacing: 1.45pt"> </FONT>royalty hereunder.
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>In <FONT STYLE="letter-spacing: 1pt"> </FONT>such <FONT STYLE="letter-spacing: 0.7pt">
</FONT>event, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>and <FONT STYLE="letter-spacing: 0.95pt"> </FONT>in <FONT STYLE="letter-spacing: 0.15pt">
</FONT>lieu of the <FONT STYLE="letter-spacing: 0.95pt"> </FONT>royalties elsewhere herein specified, <FONT STYLE="letter-spacing: 0.15pt">
</FONT>the lessor <FONT STYLE="letter-spacing: 0.45pt"> </FONT>shall receive from <FONT STYLE="letter-spacing: 0.45pt"> </FONT>production
on any such unit only such <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">. </FONT>portion of <FONT STYLE="letter-spacing: 1.3pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>royalty, at the <FONT STYLE="letter-spacing: 0.55pt"> </FONT>rate <FONT STYLE="letter-spacing: 0.55pt">
</FONT>stipulated elsewhere herein, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>as <FONT STYLE="letter-spacing: 0.4pt"> </FONT>lessor's
acreage<FONT STYLE="letter-spacing: 0.7pt"> </FONT>in the uni<FONT STYLE="letter-spacing: 0.05pt">t </FONT>(or <FONT STYLE="letter-spacing: 1.4pt">
</FONT>his <FONT STYLE="letter-spacing: 0.4pt">r</FONT>oyalty interest<FONT STYLE="letter-spacing: 1.4pt"> </FONT>therein) <FONT STYLE="letter-spacing: 0.6pt">
</FONT>bears to the total <FONT STYLE="letter-spacing: 0.05pt"> acreage. </FONT>Formation of <FONT STYLE="letter-spacing: 0.7pt">
</FONT>any unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>as <FONT STYLE="letter-spacing: 0.05pt"> </FONT>herein provided <FONT STYLE="letter-spacing: 1.45pt">
</FONT>shall in <FONT STYLE="letter-spacing: 1.45pt"> </FONT>no manner <FONT STYLE="letter-spacing: 0.45pt"> </FONT>affect the
ownership or amount of any rental which may be payable under the terms of this lease.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">14. In <FONT STYLE="letter-spacing: 0.45pt">
the</FONT> interest of <FONT STYLE="letter-spacing: 0.4pt"> </FONT>conservation, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>protection <FONT STYLE="letter-spacing: 0.35pt"> </FONT>of <FONT STYLE="letter-spacing: 0.55pt">
</FONT>reservoir pressures <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and recovery of the <FONT STYLE="letter-spacing: 0.35pt">
</FONT>greatest ultimate</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">yield of <FONT STYLE="letter-spacing: 0.95pt"> </FONT>oil, gas and
other minerals, lessee shall <FONT STYLE="letter-spacing: 0.55pt"> </FONT>have the right to combine the leased <FONT STYLE="letter-spacing: 0.3pt">
</FONT>premises <FONT STYLE="letter-spacing: 0.3pt"> </FONT>with <FONT STYLE="letter-spacing: 0.35pt"> </FONT>other premises</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">in <FONT STYLE="letter-spacing: 1.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.45pt">
</FONT>same general <FONT STYLE="letter-spacing: 1.45pt"> </FONT>area <FONT STYLE="letter-spacing: 0.7pt"> </FONT>for <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>purpose <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of <FONT STYLE="letter-spacing: 0.95pt">
</FONT>operating <FONT STYLE="letter-spacing: 0.4pt"> </FONT>and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>maintaining repressuring
and recycling facilities, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>for</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">such <FONT STYLE="letter-spacing: 0.55pt"> </FONT>purpose may <FONT STYLE="letter-spacing: 0.4pt">
</FONT>locate <FONT STYLE="letter-spacing: 1.3pt"> </FONT>such facilities including input wells, upon the <FONT STYLE="letter-spacing: 1.3pt">
</FONT>leased premises, and <FONT STYLE="letter-spacing: 0.7pt"> </FONT>no royalties <FONT STYLE="letter-spacing: 0.4pt"> </FONT>shall
<FONT STYLE="letter-spacing: 0.55pt"> </FONT>be</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">payable hereunder upon <FONT STYLE="letter-spacing: 0.45pt"> </FONT>any
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>gas used <FONT STYLE="letter-spacing: 0.15pt"> </FONT>for <FONT STYLE="letter-spacing: 1.45pt">
</FONT>repressuring and <FONT STYLE="letter-spacing: 0.25pt"> </FONT>recycling operations <FONT STYLE="letter-spacing: 0.7pt">
</FONT>benefiting <FONT STYLE="letter-spacing: 0.45pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>leased premises.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">15. Lessor <FONT STYLE="letter-spacing: 0.4pt">
</FONT>hereby warrants<FONT STYLE="letter-spacing: 1.4pt"> </FONT>and agrees to <FONT STYLE="letter-spacing: 0.7pt"> </FONT>defend
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>the title <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to the land herein <FONT STYLE="letter-spacing: 0.7pt">
</FONT>described <FONT STYLE="letter-spacing: 1pt"> </FONT>and <FONT STYLE="letter-spacing: 0.95pt"> </FONT>agrees <FONT STYLE="letter-spacing: 0.55pt">
</FONT>that <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>lessee, at its <FONT STYLE="letter-spacing: 0.95pt">
</FONT>option, <FONT STYLE="letter-spacing: 0.7pt"> </FONT>may pay and <FONT STYLE="letter-spacing: 1.45pt"> </FONT>discharge any
taxes, <FONT STYLE="letter-spacing: 0.25pt"> </FONT>mortgage, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or <FONT STYLE="letter-spacing: 1.45pt">
</FONT>other <FONT STYLE="letter-spacing: 0.6pt"> </FONT>liens <FONT STYLE="letter-spacing: 0.6pt"> </FONT>existing <FONT STYLE="letter-spacing: 0.45pt">
</FONT>levied, or <FONT STYLE="letter-spacing: 0.35pt"> </FONT>assessed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>on <FONT STYLE="letter-spacing: 0.4pt">
</FONT>or <FONT STYLE="letter-spacing: 0.55pt"> </FONT>against <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the above <FONT STYLE="letter-spacing: 0.3pt">
</FONT>described lands and, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>in event <FONT STYLE="letter-spacing: 0.95pt"> </FONT>it
exercises such option, it shall he subrogated <FONT STYLE="letter-spacing: 1.45pt"> </FONT>to <FONT STYLE="letter-spacing: 0.35pt">
</FONT>the rights of any holder or <FONT STYLE="letter-spacing: 0.3pt"> </FONT>holders <FONT STYLE="letter-spacing: 0.05pt"> </FONT>thereof
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>and may reimburse itself by <FONT STYLE="letter-spacing: 0.15pt"> </FONT>applying<FONT STYLE="letter-spacing: 1pt">
</FONT>to <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the <FONT STYLE="letter-spacing: 0.6pt"> </FONT>discharge of any such mortgage,
tax or <FONT STYLE="letter-spacing: 0.3pt"> other</FONT> lien, any royalty or rentals<FONT STYLE="letter-spacing: 1.3pt"> </FONT>accruing
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>hereunder.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">16. <FONT STYLE="letter-spacing: 0.7pt"> </FONT>All
<FONT STYLE="letter-spacing: 0.4pt"> </FONT>rental <FONT STYLE="letter-spacing: 1.45pt"> </FONT>payments <FONT STYLE="letter-spacing: 0.6pt">
</FONT>which <FONT STYLE="letter-spacing: 0.35pt"> </FONT>may <FONT STYLE="letter-spacing: 0.35pt"> </FONT>fall due under this
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>lease <FONT STYLE="letter-spacing: 0.3pt"> </FONT>may be made to <U> </U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">one of <FONT STYLE="letter-spacing: 0.6pt">
</FONT>the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>above <FONT STYLE="letter-spacing: 0.45pt"> </FONT>named <FONT STYLE="letter-spacing: 0.15pt">
lessor</FONT>,<FONT STYLE="letter-spacing: 1.45pt"> </FONT>in <FONT STYLE="letter-spacing: 0.55pt"> </FONT>the <FONT STYLE="letter-spacing: 1.45pt">
manner</FONT> herein stated.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">17.<I> </I>If <FONT STYLE="letter-spacing: 1.4pt">
</FONT>within the primary <FONT STYLE="letter-spacing: 0.25pt"> </FONT>term of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>this
<FONT STYLE="letter-spacing: 1.45pt"> </FONT>lease production <FONT STYLE="letter-spacing: 0.6pt"> </FONT>on the leased premises
shall cease from any cause, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>this lease <FONT STYLE="letter-spacing: 1.3pt"> </FONT>shall
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>not <FONT STYLE="letter-spacing: 0.15pt"> </FONT>terminate <FONT STYLE="letter-spacing: 0.4pt">
</FONT>provided operations <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for <FONT STYLE="letter-spacing: 1.4pt"> </FONT>the drilling
of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>a well sha11<FONT STYLE="letter-spacing: 1pt"> </FONT>be <FONT STYLE="letter-spacing: 0.25pt">
</FONT>commenced before <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or <FONT STYLE="letter-spacing: 1pt"> </FONT>on the next <FONT STYLE="letter-spacing: 0.6pt">
</FONT>ensuing rental paying date: <FONT STYLE="letter-spacing: 0.7pt"> </FONT>or, provided <FONT STYLE="letter-spacing: 1.3pt">
</FONT>lessee <FONT STYLE="letter-spacing: 0.35pt"> </FONT>begins or <FONT STYLE="letter-spacing: 0.3pt"> </FONT>resumes <FONT STYLE="letter-spacing: 0.7pt">
</FONT>the payment of rentals in <FONT STYLE="letter-spacing: 0.4pt"> </FONT>the <FONT STYLE="letter-spacing: 1pt"> </FONT>manner
and <FONT STYLE="letter-spacing: 0.95pt"> </FONT>amount hereinbefore provided. <FONT STYLE="letter-spacing: 1.45pt"> If</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">,<FONT STYLE="letter-spacing: 0.6pt">
</FONT></FONT>after <FONT STYLE="letter-spacing: 0.35pt"> </FONT>the expiration of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
<FONT STYLE="letter-spacing: 1.3pt"> </FONT>primary <FONT STYLE="letter-spacing: 0.05pt"> </FONT>term of <FONT STYLE="letter-spacing: 0.4pt">
</FONT>this lease, production <FONT STYLE="letter-spacing: 0.15pt"> </FONT>on the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>leased
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>premises shall cease from any <FONT STYLE="letter-spacing: 0.25pt"> </FONT>cause,
this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>lease shall not <FONT STYLE="letter-spacing: 0.45pt"> </FONT>terminate provided
lessee resumes operations <FONT STYLE="letter-spacing: 0.15pt"> </FONT>for drilling a well <FONT STYLE="letter-spacing: 0.55pt">
</FONT>within sixty (60) days from such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>cessation, and <FONT STYLE="letter-spacing: 0.4pt">
</FONT>this lease shall remain in <FONT STYLE="letter-spacing: 0.35pt"> </FONT>force <FONT STYLE="letter-spacing: 0.45pt"> </FONT>during
the prosecution <FONT STYLE="letter-spacing: 1.45pt"> </FONT>of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such <FONT STYLE="letter-spacing: 0.95pt">
</FONT>operations <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and. if <FONT STYLE="letter-spacing: 1.4pt"> </FONT>production <FONT STYLE="letter-spacing: 0.25pt">
</FONT>results therefrom,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>then as long <FONT STYLE="letter-spacing: 1.3pt"> </FONT>as
production<FONT STYLE="letter-spacing: 1.4pt"> </FONT>continues.</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 5.1pt 0 0; text-align: justify; text-indent: 0.25in">18. <FONT STYLE="letter-spacing: 1.45pt">
It </FONT>is agreed that this <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lease shall never be forfeited or <FONT STYLE="letter-spacing: 0.55pt">
</FONT>cancelled <FONT STYLE="letter-spacing: 0.95pt"> </FONT>for failure to perform in whole <FONT STYLE="letter-spacing: 0.45pt">
</FONT>or <FONT STYLE="letter-spacing: 0.6pt"> </FONT>in part any of its <FONT STYLE="letter-spacing: 0.7pt"> </FONT>implied covenants
conditions or stipulations <FONT STYLE="letter-spacing: 0.95pt"> </FONT>until <FONT STYLE="letter-spacing: 0.25pt"> </FONT>it <FONT STYLE="letter-spacing: 1.4pt">
</FONT>shall have <FONT STYLE="letter-spacing: 0.6pt"> </FONT>first been <FONT STYLE="letter-spacing: 0.55pt"> </FONT>finally judicially
determined that such failure exists and after <FONT STYLE="letter-spacing: 0.25pt"> </FONT>such final <FONT STYLE="letter-spacing: 0.45pt">
</FONT>determination, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>lessee is given reasonable time therefrom <FONT STYLE="letter-spacing: 0.4pt">
</FONT>to comply with <FONT STYLE="letter-spacing: 0.4pt"> </FONT>any <FONT STYLE="letter-spacing: 1pt"> </FONT>such covenants,
<FONT STYLE="letter-spacing: 0.35pt"> </FONT>conditions, or stipulations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.5pt 3.2pt 0 0; text-align: justify; text-indent: 0.25in">19. <FONT STYLE="letter-spacing: 1.45pt">
</FONT>All express and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>implied covenants of <FONT STYLE="letter-spacing: 1.45pt"> </FONT>this
lease <FONT STYLE="letter-spacing: 0.25pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be subject to all <FONT STYLE="letter-spacing: 0.05pt">
</FONT>federal <FONT STYLE="letter-spacing: 0.95pt"> </FONT>and state <FONT STYLE="letter-spacing: 0.35pt"> </FONT>laws, executive
orders, <FONT STYLE="letter-spacing: 1.4pt"> </FONT>rules and regulations, and this lease shall not be terminated, <FONT STYLE="letter-spacing: 0.25pt">
</FONT>in <FONT STYLE="letter-spacing: 1.4pt"> </FONT>whole <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or in part, nor <FONT STYLE="letter-spacing: 0.7pt">
</FONT>lessee held <FONT STYLE="letter-spacing: 0.25pt"> </FONT>liable in damage for <FONT STYLE="letter-spacing: 0.95pt"> </FONT>failure
to comply <FONT STYLE="letter-spacing: 1.4pt"> </FONT>therewith <FONT STYLE="letter-spacing: 0.45pt"> </FONT>if compliance <FONT STYLE="letter-spacing: 1.3pt">
</FONT>is <FONT STYLE="letter-spacing: 0.35pt"> </FONT>prevented by or <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">if
</FONT>such <FONT STYLE="letter-spacing: 0.4pt"> </FONT>failure is the result <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of any
such law, <FONT STYLE="letter-spacing: 0.55pt"> </FONT>order, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>rule or regulation,
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or if <FONT STYLE="letter-spacing: 1pt"> </FONT>such compliance is <FONT STYLE="letter-spacing: 0.15pt">
</FONT>prevented by or <FONT STYLE="letter-spacing: 0.3pt"> </FONT>failure <FONT STYLE="letter-spacing: 0.7pt"> </FONT>is the <FONT STYLE="letter-spacing: 0.6pt">
</FONT>result <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of <FONT STYLE="letter-spacing: 1.3pt"> </FONT>inability of <FONT STYLE="letter-spacing: 1.4pt">
</FONT>lessee through <FONT STYLE="letter-spacing: 1pt"> </FONT>no <FONT STYLE="letter-spacing: 0.4pt"> </FONT>fault of its own,
to obtain sufficient and satisfactory material and equipment to justify <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the commencement
of drilling <FONT STYLE="letter-spacing: 0.95pt"> </FONT>operations <FONT STYLE="letter-spacing: 1.45pt"> </FONT>or to continue
production <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of oil <FONT STYLE="letter-spacing: 0.25pt"> </FONT>or gas from the leased
premises.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2pt 0 0; text-indent: 0.25in">20. <FONT STYLE="letter-spacing: 1.45pt">
</FONT>This lease <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all <FONT STYLE="letter-spacing: 0.6pt">
</FONT>its terms,<FONT STYLE="letter-spacing: 1.4pt"> </FONT>conditions, and stipulations shall extend to and be binding on al1
successors of said lessor <FONT STYLE="letter-spacing: 0.95pt"> </FONT>or lessee.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.45pt 4.8pt 0 0; text-indent: 0.25in">21. <FONT STYLE="letter-spacing: 0.05pt">
With respect to</FONT> and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>for the purpose of <FONT STYLE="letter-spacing: 0.95pt">
</FONT>this <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lease, lessor, and <FONT STYLE="letter-spacing: 0.6pt"> </FONT>each <FONT STYLE="letter-spacing: 0.25pt">
</FONT>of them if there<FONT STYLE="letter-spacing: 1.45pt"> </FONT>be more <FONT STYLE="letter-spacing: 0.4pt"> </FONT>than one,
<FONT STYLE="letter-spacing: 0.25pt"> </FONT>hereby <FONT STYLE="letter-spacing: 0.15pt"> </FONT>release and waive <FONT STYLE="letter-spacing: 0.25pt">
</FONT>the right of <FONT STYLE="letter-spacing: 1pt"> </FONT>homestead. WHEREOF witness our <FONT STYLE="letter-spacing: 0.35pt">
</FONT>hands as of the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>day and <FONT STYLE="letter-spacing: 1pt"> </FONT>year first
above written.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.45pt 4.8pt 0 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 42%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 8%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.45pt 4.8pt 0 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.95pt 8pt 0 0; text-align: center"><B>AKNOWLEDGMENT</B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">STATE OF</TD>
    <TD STYLE="width: 22%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 68%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">}ss.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">County of</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.9pt 0 0">On thi<FONT STYLE="letter-spacing: 0.05pt">s <U> </U></FONT>day
of <U> </U>, 19<U> </U>, <FONT STYLE="letter-spacing: 0.45pt"> </FONT>before me personally appeare<FONT STYLE="letter-spacing: 0.4pt">d<U>
</U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.45pt 0 0; text-indent: 0.5in">to me known to be the person<U> </U>
described <FONT STYLE="letter-spacing: 1pt"> </FONT>in and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>who executed the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.45pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.45pt 0 0; text-indent: 0.5in">foregoing <FONT STYLE="letter-spacing: 0.05pt">
</FONT>instrument <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and acknowledged tha<FONT STYLE="letter-spacing: 0.15pt">t <U> </U>
</FONT>executed the same a<FONT STYLE="letter-spacing: 0.05pt">s <U> </U> </FONT>free <FONT STYLE="letter-spacing: 0.45pt"> </FONT>act
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>and deed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.5pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.5pt 0 0">Given under <FONT STYLE="letter-spacing: 1.4pt"> </FONT>my
<FONT STYLE="letter-spacing: 0.95pt"> </FONT>hand and seal <FONT STYLE="letter-spacing: 1pt"> </FONT>thi<FONT STYLE="letter-spacing: 0.35pt">s
<U> </U></FONT>day <FONT STYLE="letter-spacing: 1.3pt"> </FONT>of <U> </U>, <FONT STYLE="letter-spacing: 0.35pt"> </FONT>19<U>
</U>.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">My <FONT STYLE="letter-spacing: 1pt"> </FONT>Commission <FONT STYLE="letter-spacing: 0.6pt">E</FONT>xpires</TD>
    <TD STYLE="width: 34%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 4%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 38%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt; text-align: right">Notary Public</TD></TR>
</TABLE>
<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 1.95pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 1.95pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 1.95pt 0 0; text-align: center"><B>ACKNOWLEDGMENT-MAN AND WIFE</B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0.3pt 0 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">STATE OF</TD>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 67%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">}ss.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">County of</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">On this <U> </U>day <FONT STYLE="letter-spacing: 0.6pt"> </FONT>of
<U> </U>, 19<U> </U>, <FONT STYLE="letter-spacing: 0.6pt"> </FONT>before me personally appeare<FONT STYLE="letter-spacing: 0.4pt">d<U>
</U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 9.35pt 0 0; text-indent: 0.5in">me known to <FONT STYLE="letter-spacing: 1.45pt">
</FONT>be <FONT STYLE="letter-spacing: 1pt"> </FONT>the person<U> </U> <FONT STYLE="letter-spacing: 0.4pt"> </FONT>described in
and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>who executed the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 9.35pt 0 0">foregoing <FONT STYLE="letter-spacing: 0.6pt"> </FONT>instrument
and acknowledged <FONT STYLE="letter-spacing: 0.25pt"> </FONT>tha<FONT STYLE="letter-spacing: 0.15pt">t <U> </U></FONT>executed<FONT STYLE="letter-spacing: 0.7pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>same as <U> </U> free act <FONT STYLE="letter-spacing: 0.95pt"> </FONT>and
deed, <FONT STYLE="letter-spacing: 1pt"> </FONT>including<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the re-</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">lease and waiver of the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>right
of <FONT STYLE="letter-spacing: 0.35pt"> </FONT>homestead; the <FONT STYLE="letter-spacing: 0.4pt"> </FONT>said wife having been
<FONT STYLE="letter-spacing: 1.4pt"> </FONT>by <FONT STYLE="letter-spacing: 0.6pt"> </FONT>me fully <FONT STYLE="letter-spacing: 0.25pt">
</FONT>apprised of <FONT STYLE="letter-spacing: 0.25pt"> </FONT>her <FONT STYLE="letter-spacing: 0.6pt"> right</FONT><FONT STYLE="letter-spacing: 1.4pt">
</FONT>and <FONT STYLE="letter-spacing: 1.4pt"> </FONT>the <FONT STYLE="letter-spacing: 0.7pt"> </FONT>effect <FONT STYLE="letter-spacing: 0.95pt">
</FONT>of signing <FONT STYLE="letter-spacing: 0.4pt"> </FONT>and acknowledging the <FONT STYLE="letter-spacing: 1.3pt"> </FONT>said
instrument.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">Given under my hand <FONT STYLE="letter-spacing: 1pt"> </FONT>and
seal thi<FONT STYLE="letter-spacing: 0.3pt">s <U> </U></FONT>day of <U> </U>, 19<U> </U>.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">My <FONT STYLE="letter-spacing: 1pt"> </FONT>Commission <FONT STYLE="letter-spacing: 0.6pt">E</FONT>xpires</TD>
    <TD STYLE="width: 34%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 4%; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="width: 38%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt">&nbsp;</TD>
    <TD STYLE="font: 9pt Times New Roman, Times, Serif; padding-top: 1.45pt; padding-right: 4.8pt; text-align: right">Notary Public</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<P STYLE="margin: 0"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>8
<FILENAME>exhibit10-15.htm
<DESCRIPTION>EXHIBIT 10.15 - OPTION TO PURCHASE OKIE DRAW & SOUTH OKIE DRAW PROSPECTS
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">EXHIBIT 10.15</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">August 4, 2009</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">Mr. James C. Einarsen, Manager</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">Viking Exploration, LLC</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">6475 West Kingsley Ave.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">Littleton, CO 80128</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">RE:&#9;Option to Purchase Okie Draw</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 22pt; text-align: justify">and South
Okie Prospects,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 22pt; text-align: justify">Natrona County, Wyoming</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dear Mr. Einarsen:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">This letter will serve
as a formal agreement between Empire and Viking with respect to Empire&rsquo;s option to purchase all of Viking&rsquo;s leasehold
and producing interests in the Okie Draw and South Okie Prospects, a description of which is attached hereto as Schedule &ldquo;A&rdquo;.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">As consideration to Empire
for paying the lease rentals due August 31, 2009 and September 30, 2009 on leases listed on Schedule &ldquo;A&rdquo; and paying
Viking a Twenty Five Thousand Dollars ($25,000) cash payment, Viking will grant Empire a six (6) month option commencing September
1, 2009 and ending February 28, 2010, to acquire all of Viking&rsquo;s interests in the leases listed on Schedule &ldquo;A&rdquo;
for the cash consideration of Thirty Five Thousand Dollars ($35,000). In addition to receiving the cash consideration Viking shall
retain the overriding royalties as outlined in Exhibit &ldquo;A&rdquo;.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">During such six (6) month
option period Empire will make every effort to locate and purchase the seismic survey conducted by Southland Royalty Corp or its
successor in ownership. Perhaps this data cannot be located; if not, Empire will research the cost of a new survey.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">In the event Empire exercises
its option and drills a test well and any additional development wells, Empire will pay to Viking Ten Thousand Dollars ($10,000)
for each completed oil well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">If Empire has not drilled
or re-entered a test well on the prospect leases before August 1, 2010 and has no plans to drill or re-enter a test well it shall
re-assign all of the prospect leases to Viking. If it has drilled a successful oil well or plans to drill or re-enter a test well
then it shall pay the August 31, 2010 rentals to retain the leases in good standing.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">This proposal is open for
acceptance until 5:00 p.m. Thursday, August 6, 2009; therefore, if you find it acceptable please sign and return one copy of this
letter to Empire.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">Yours very truly,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">EMPIRE PETROLEUM CORPORATION</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">___________________________________</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 37.4pt">BY: A. E. WHITEHEAD, PRESIDENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 200%">AEW/gs</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 200%">Enclosures</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 150%">Agreed to this
<U>5th</U> day of</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 200%"><U>August</U>,
2009</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 200%">VIKING EXPLORATION,
LLC</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">_______________________________________</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">BY: JAMES C. EINARSEN, MANAGER</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">SCHDULE &quot;A&quot;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">SOUTH OKIE DEVELOPMENT PROJECT - LEASE AND ORR SCHEDULE - T37N R85W,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">NATRONA COUNTY, WYOMING</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">% ORR</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">EXPIRATION</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">LEASE NO.</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">NO.</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">RETAINED</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">% NRI</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">DATE OR</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&amp; ACREAGE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">OF</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">EXISTING</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BY</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">TO</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">LEASE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">DESCRIPTION</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">ACRES</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">OWNERSHIP</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">ORR'S</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">VIKING</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">PURCHASER</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">STATUS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-36587</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Viking 100%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Eckels et al 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">92.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">HBP</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 14: SE/4SW/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Gillespie et al 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Less SSR*</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">(segregated from Okie</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(76% at 150</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Draw Unit)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BOPD)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Competitive Lease</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-153586</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1800</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Viking 100%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">0%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">78.33%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">8/31/2011</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 15:&nbsp; SW, SWSE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23:&nbsp; S/2SW</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25:&nbsp; NENE,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NWNW,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S/2N/2, S/2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26:&nbsp; N2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">WYW-174767</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">720</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Viking 100%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">0%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">82.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9/30/2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 23:&nbsp; E/2NE, NW,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N/2SW, SE</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24:&nbsp; NW, N/2SW</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Note:&nbsp; *SSR=Competitive Lease - Sliding Scale Royalty under USGS known geologic structures.&nbsp; USGS's ORR's vary from 12.5% for 50 BOPD up to 25.0% for 400</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">BOPD</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
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    <TD NOWRAP COLSPAN="13" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">SCHDULE &quot;A&quot;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 24%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="width: 12%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="13" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">SOUTH OKIE DEVELOPMENT PROJECT - LEASE AND ORR SCHEDULE - T37N R85W,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">NATRONA COUNTY, WYOMING</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
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    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">% ORR</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">EXPIRATION</TD></TR>
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    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">LEASE NO.</TD>
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    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">NO.</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">RETAINED</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">% NRI</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">DATE OR</TD></TR>
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    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&amp; ACREAGE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">OF</TD>
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    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">EXISTING</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">BY</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">TO</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">LEASE</TD></TR>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">DESCRIPTION</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">ACRES</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">OWNERSHIP</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">ORR'S</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">VIKING</TD>
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    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">PURCHASER</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">STATUS</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-36587</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Viking 12.5%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Eckels et al 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">92.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Okie Draw</TD></TR>
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    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 14:&nbsp; SW/4SE/4</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 87.5%</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Gillespie et al 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Less SSR*</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">1-4 well is</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Communitiezed with</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">(76.5% at</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">producing and</TD></TR>
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    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 23:&nbsp; N/2NW/4NE/4</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">150 BOPD</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">holds by</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">production</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">both leases</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-36587 &amp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-0323746</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">The above 40 acre tract contains the Okie Draw 1-14 well which has produced 114,088 Bbls. Oil as of Nov., 2005.&nbsp; The Okie Draw</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Unit was contracted to 60 acres shortly after 4/12/1979 and contains the SW/1/4 SE1/4 Sec. 14 and the N1/2 NW1/4 NE1/4 Sec. 23.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">The 1-14 well and the 560 gross acres it holds by production, (87.5% Working Interest) can be acquired by PURCHASER of this</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">deal by dealing directly with Carl Underwood in Casper, Wyoming.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-36587</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">160</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Viking 12.5%*</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Eckels et al 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">92.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Competitive</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 14:&nbsp; N/2 SW/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 87.5%</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Gillespie et al 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Less SSR*</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Lease - HBP</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SW/4 SW/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 2%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">(76.5% at</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">(Held by</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; W/2 SE/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">150 BOPD</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Production)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 15:&nbsp; N/2 SE/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">120</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SE SE/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">W-0323746</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">160</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Viking 12.5%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Ray A. Hose 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">80.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Non</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 14:&nbsp; S/2 NW/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 87.5%</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 2%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Competitive</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E/2 SE/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Lease - HBP</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">(Held by</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Production)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Sec. 23:&nbsp; W/2 NE/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Viking 12.5%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Ray A. Hose 1%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">80.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">N/2 NW/4</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 87.5%</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Underwood 2%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">NE/4 is</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Communitized</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">with Sec. 14:</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">SW/4 Se/4</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">HBP (Held by</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Production)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">3,120 gross acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">2,630 net acres</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Viking's Acreage for sale:&nbsp; 100% Working Interest under 2560 gross and net acres plus Viking's 12.5% Working Interest under 560</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="13" STYLE="font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">acres.&nbsp; (70 net acres) plus 1/8 interest in Okie Draw 1-14 well.&nbsp; (See terms of the Deal)</TD></TR>
</TABLE>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>9
<FILENAME>exhibit10-18.htm
<DESCRIPTION>EXHIBIT 10.18 - PROSPECT LETTER AGREEMENT BETWEEN EMPIRE & 7 (1%) OWNERS
<TEXT>
<HTML>
<HEAD>
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<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">Exhibit 10.18</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.6pt 0 0; text-indent: -0.6pt"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase; line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase; line-height: 115%"><B>Prospect
Letter Agreement</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">This prospect
letter agreement (this &ldquo;Letter Agreement&rdquo;) is made and entered into this [__] day of October, 2010 (the &ldquo;Effective
Date&rdquo;), by and between Empire Petroleum Corporation, a Delaware corporation (&ldquo;Empire&rdquo;), and [________________]
(&ldquo;Assignee&rdquo;). Empire and Assignee shall sometimes be referred to herein individually as a &ldquo;Party&rdquo; and,
collectively, as the &ldquo;Parties.&rdquo;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="line-height: 115%"><B>Recitals</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">A. The Gabbs
Valley Prospect (the &ldquo;Prospect&rdquo;) covers approximately 92,825 gross acres, with no depth limitations. A number of leases
or portions of leases making up the Prospect have been included in an oil and gas unit formed pursuant to that certain Unit Agreement
for the Development and Operation of the Paradise Unit Area, Counties of Nye and Mineral, State of Nevada, dated April 14, 2010,
No. ANVN88316X (the &ldquo;Paradise Unit Agreement&rdquo;). A copy of the Paradise Unit Agreement is attached hereto as <B>Exhibit
A</B>. The unit formed under the Paradise Unit Agreement is hereafter referred to as the &ldquo;Paradise Unit.&rdquo;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">B. The prospect
leases wholly or partially included in the Paradise Unit are identified and described on <B>Exhibit B</B> attached hereto (the
&ldquo;Paradise Unit Leases&rdquo;).</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">C. There are
additional leases included in the Prospect that are not part of the Paradise Unit. The Prospect leases or portions of Prospect
leases not included in the Paradise Unit are identified and described on <B>Exhibit C</B> attached hereto the &ldquo;Non-Unit Leases&rdquo;
and, collectively with the Paradise Unit Leases, the &ldquo;Prospect Leases&rdquo;).</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">D. Subject to
the provisions of the Paradise Unit Agreement, operations for the Paradise Unit have been and shall be conducted pursuant to the
Unit Operating Agreement attached hereto as <B>Exhibit D</B> (the &ldquo;Paradise Unit Operating Agreement&rdquo;).</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">E. Pursuant to
that certain Farmout Agreement dated June 11, 2010 attached hereto as <B>Exhibit E</B> (the &ldquo;Farmout Agreement&rdquo;), by
and between Empire and Cortez Exploration, L.L.C. and Windmill Oil &amp; Gas, L.L.C. (the &ldquo;Cortez Group&rdquo;), Empire drilled
that certain initial test well with respect to the Paradise Unit Leases located on Lease No. N-599901, in the SE/4 of the SE/4
of the NE/4 of Section 12-T12N-R34E (the &ldquo;Empire Paradise Unit No. 2-12 Well&rdquo;) to a depth of approximately 4,248 feet.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">F. Empire owns
98% (of 8/8ths) leasehold interest, record title interest and working interest in all of the Prospect Leases and 98% of 80% (of
8/8ths) net revenue interest in each of the Prospect Leases, all subject to certain reversionary interests to the Cortez Group
pursuant to the Farmout Agreement.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">G. In exchange
for the payment of $[100,000] by Assignee to Empire, the Parties have agreed that the Empire will assign to Assignee [1]% of Empire&rsquo;s
gross working interest (which is [1]% of 80% (of 8/8ths) net revenue interest) in the Paradise Unit Leases and the Empire Paradise
Unit No. 2-12 Well and grant Assignee an option to participate in the Non-Unit Leases.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="line-height: 115%"><B>Agreement</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">In consideration
of the mutual premises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">1. <B>Purchase
Price; Assignment of Transferred Interest</B>. In exchange for the payment of $[100,000] by Assignee to Empire (the &ldquo;Purchase
Price&rdquo;), Empire shall assign to Assignee [1]% of Empire&rsquo;s gross working interest (which is [1]% of 80% (of 8/8ths)
net revenue interest) in the Paradise Unit Leases and the Empire Paradise Unit No. 2-12 Well (the &ldquo;Paradise Unit Transferred
Interest&rdquo;). Upon the execution of this Letter Agreement and the payment of the Purchase Price, Empire shall execute and deliver
to Assignee assignments of the Paradise Unit Transferred Interest in form and substance reasonably acceptable to Assignee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">2. <B>Completion
of Empire Paradise Unit No. 2-12 Well</B>. Empire hereby agrees that it will pay for the cost to deepen the Empire Paradise Unit
No. 2-12 Well another 800 to 1,000 feet. Assignee shall not have any responsibility to pay the costs to continue drilling the Empire
Paradise Unit No. 2-12 Well. Assignee likewise shall not have any responsibility to pay the costs to complete and equip the Empire
Paradise Unit No. 2-12 Well into pipeline connections or tanks, or to abandon the Empire Paradise Unit No. 2-12 Well should it
be a dry hole, as the case may be. As between Empire and Assignee, the manner in which to drill and complete the Empire Paradise
Unit No. 2-12 Well and the costs to be incurred to drill and complete the Empire Paradise Unit No. 2-12 Well shall be in the sole
discretion of Empire, consistent with good oil field practice. In this regard, Empire is not required to prepare an AFE or obtain
approval of an AFE from Assignee with respect to the drilling and completion (or abandonment) of the Empire Paradise Unit No. 2-12
Well.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">3. <B>Option
on Non-Unit Leases</B>. The Parties acknowledge and agree that with respect to the Non-Unit Leases, Empire has certain optional
rights pursuant to Section VII of the Farmout Agreement and, in the event that Empire does not exercise such rights, Empire&rsquo;s
interests in the Non-Unit Leases acquired from the Cortez Group pursuant to the Farmout Agreement are subject to a reversionary
interest to the Cortez Group (the &ldquo;Cortez Group Reversionary Interest&rdquo;). In the event that Empire elects to exercise
such optional rights with respect to any Non-Unit Lease, the Parties hereby agree that Assignee shall have the right to participate
along with Empire and receive [1]% gross working interest(which is [1]% of 80% (of 8/8ths) net revenue interest) in such Non-Unit
Lease (the &ldquo;Non-Unit Lease Transferred Interest&rdquo;) by paying [1]% of the rentals of such Non-Unit Lease, which Non-Unit
Lease Transferred Interest shall be subject to the Cortez Group Reversionary Interest. Empire shall be the operator with respect
to the drilling, completion and/or abandonment of the Non-Unit Test Well (as defined in the Farmout Agreement), if any, and all
operations of the Non-Unit Leases shall be conducted pursuant to the joint operating agreement attached hereto as Exhibit &ldquo;D&rdquo;.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">4. <B>Representations
and Warranties as to Title</B>. Empire represents and warrants that as of the date of this Letter Agreement its title to the Prospect
Leases is free and clear from any prior conveyance, lien or encumbrance made or suffered by it, or by any person by, through or
under it, which diminishes, limits or burdens the rights and interests that Assignee has the right to earn under this Letter Agreement.
Empire further represents and warrants that until such time as the Non-Unit Leases, or any of them, are assigned to Assignee under
the terms of this Letter Agreement, Empire will not make or suffer, or allow to be made or suffered by any person by though or
under it, any conveyance, lien or encumbrance with respect to the Non-Unit Leases.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">5. <B>Burdens</B>.
All assignments under this Letter Agreement shall be subject to and burdened by the terms and conditions of this Letter Agreement,
the Prospect Leases, the Paradise Unit Operating Agreement and the Paradise Unit Agreement (or, with respect to assignments of
the Non-Unit Leases, a unit agreement substantially similar to the Paradise Unit Agreement if a unit is subsequently formed), and
a proportionate part of all landowners&rsquo; royalties, overriding royalty interests and similar interests of record as of the
date of such assignment.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">6. <B>Tag Along
and Drag Along Rights</B>.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(a)&#9;<B>Tag
Along</B>. For a period of [five] years from and after the Effective Date, in the event either Party (the &ldquo;Transferring Party&rdquo;)
desires to sell, assign, transfer or otherwise dispose of all or any portion of its interests in the Prospect, directly or indirectly,
the Transferring Party shall promptly deliver to the other Party (the &ldquo;Non-Transferring Party&rdquo;) written notice thereof,
and the Non-Transferring Party shall have the right, but not the obligation, to elect to participate in the proposed transaction
in proportion to Non-Transferring Party&rsquo;s interests in the Prospect as part of the proposed transaction at the same terms,
conditions and valuation. The notice shall include the name of the proposed transferee, and all of the terms and conditions of
the proposed transaction. The Non-Transferring Party shall deliver to the Transferring Party written notice of the Non-Transferring
Party&rsquo;s election to participate in the proposed transaction on or before five days after the Non-Transferring Party&rsquo;s
receipt of written of notice thereof from the Transferring Party. If the Non-Transferring Party fails to deliver its election within
said time-period, the Non-Transferring Party shall be deemed conclusively to have elected not to participate in the proposed transaction
hereunder. If the acquiring party in the proposed transaction is unwilling to acquire all of the interests offered, the Non-Transferring
Party shall have the right to participate in the proposed transaction in the same ratio as the Non-Transferring Party&rsquo;s interest
in the Prospect bears to the total interests in the Prospect to be transferred by both the Transferring Party and the Non-Transferring
Party.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(b)&#9;<B>Drag
Along</B>. If Empire receives a bona fide written offer (the &ldquo;Purchase Offer&rdquo;) from a third party (the &ldquo;Purchaser&rdquo;)
to purchase all or substantially all of Empire&rsquo;s interest in the Prospect, and the Purchase Offer is acceptable in Empire&rsquo;s
sole and absolute discretion, Empire shall have the right, but not the obligation, to cause Assignee (and their permitted assignee(s)
or successors, if any) to sell all (but not less than all) of Assignee&rsquo;s interests in the Prospect in accordance with the
terms and conditions of this Section 6(b) (the &ldquo;Drag Along Right&rdquo;). Empire shall elect to exercise the Drag Along Right
by written notice (the &ldquo;Drag Along Notice&rdquo;) delivered to Assignee on or before 30 days after receipt of the Purchase
Offer. The Drag Along Notice shall include the name of the Purchaser, the purchase price (the &ldquo;Purchase Price&rdquo;) and
all of the material terms and conditions of the proposed transaction. If Empire elects to exercise the Drag Along Right, the closing
of the transaction shall occur on or before 90 days after receipt of the Drag Along Notice under the circumstances described herein
and, upon compliance with the terms and conditions thereof, Assignee shall sell to such Purchaser all of their interest in the
Prospect. The closing of the Purchaser&rsquo;s acquisition of Empire&rsquo;s interest in the Prospect and Assignee&rsquo;s interest
in the Prospect shall occur simultaneously and be conditioned upon each other.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">7. <B>Miscellaneous</B>.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(a)&#9;<B>Successors
and Assigns</B>. This Letter Agreement shall not be assigned by any Party without the prior written approval of the non-assigning
Party, which approval shall not be unreasonably withheld, conditioned or delayed.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(b)&#9;<B>Headings</B>.
Headings used in this Letter Agreement are inserted for convenience only and shall not affect the interpretation of any of the
provisions of this Letter Agreement.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(c)&#9;<B>Relationship
of Parties</B>. This Letter Agreement does not constitute the Parties as a partnership, mining partnership, mining partnership,
joint venture, incorporated association or any other joint relationship, it being intended that liabilities and obligations of
the Parties shall be several and not joint. Each Party shall be responsible only for its obligations and liabilities as set out
herein and no Party shall be responsible for those of any other Party.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(d)&#9;<B>Further
Assurances</B>. The Parties agree to execute such further instruments and documents and to diligently undertake such actions as
may be necessary or appropriate in connection with the subject matter of this Letter Agreement and to take such other action as
reasonably requested by a Party to give full force and effect to the terms and intent of this Letter Agreement.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(e)&#9;<B>Entire
Agreement</B>. This Letter Agreement, including the Exhibits attached hereto, constitutes the entire agreement and understanding
of the Parties hereto with respect to the transactions contemplated hereby, and supersedes all prior understandings, discussions
and agreements between the Parties relating to the subject matter hereof. The Exhibits attached hereto are incorporated herein
by reference.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(f)&#9;<B>Laws
Governing This Agreement</B>. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(g)&#9;<B>Binding
Effect</B>. This Letter Agreement shall be binding upon and inure to the benefit of the Parties hereto, their respective heirs,
successors and assigns.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(h)&#9;<B>Counterpart
Execution</B>. This Letter Agreement may be executed in any number of counterparts, each of such shall be considered an original
for all purposes.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">(i)&#9;<B>Notices</B>.
All notices or other communications required or permitted hereunder shall be provided in writing and shall be delivered to the
authorized representative of the Parties set forth below, by either (i) personal delivery, (ii) certified mail, return receipt
requested, (iii) overnight delivery service, or (iv) facsimile, as follows:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">If to Empire:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Empire Petroleum
Corporation</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">8801 South Yale,
Suite 120</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Tulsa, Oklahoma
74137-3575</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Attn: A. E. Whitehead</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Facsimile: (918)
488-1530</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">If to Assignee:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">[________________]</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">[________________]</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">[________________]</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Attn: [___________]</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Facsimile: (___)
[__]-[___]</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">Either Party may, upon written notice
to the other Party, change the address and person to whom such communications are to be directed.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">IN WITNESS WHEREOF,
the Parties have executed and delivered this Letter Agreement effective as of the Effective Date.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="text-transform: uppercase; line-height: 115%">Empire
Petroleum Corporation</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 22pt"><FONT STYLE="line-height: 115%">By:</FONT> /s/ Albert E. Whitehead</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Albert E. Whitehead</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">President and
Chief Executive Officer</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">[Assignee]</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">By: ___________________________________</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">Name: _________________________________</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%"></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">Title: __________________________________</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.6pt 0 0; text-indent: -0.6pt"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.6pt 0 0; text-indent: -0.6pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.6pt 0 0; text-indent: -0.6pt">&nbsp;</P>

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<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>EXHIBIT
&ldquo;A&rdquo;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>UNIT
AGREEMENT</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>FOR
THE DEVELOPMENT AND OPERATION</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>OF
THE</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>PARADISE
UNIT AREA</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>COUNTIES
OF NYE AND MINERAL</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>STATE
OF NEVADA</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 21%; font: bold 9pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: windowtext 1pt solid; font: bold 9pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 43%; font: bold 9pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">SECTION</TD>
    <TD STYLE="width: 2%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 78%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">PAGE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Preliminary Recitals</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Enabling Act and Regulations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: -174.15pt; line-height: 115%">Unit Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">3.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unitized Land and Unitized Substances</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">4.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">5.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Resignation or Removal of Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">6.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Successor Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Accounting Provisions  and Unit Operating Agreement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">8.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Rights and Obligations of Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">9.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Drilling to Discovery</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Plan of Further Development and Operation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">11.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Participation after Discovery</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">12.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Allocation of Production</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">13.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Development or Operation of Non-Participating Land Formations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">14.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Royalty Settlement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">15.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Rental Settlement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">16.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Conservation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">17.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Drainage</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">18.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Lease and Contracts Conformed or Extended</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">19.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Covenants Run with Land</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">20.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective Date and Term</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">21.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Rate of Prospecting, Develop-0ment, and Production</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">22.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Appearances</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">23.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Notices</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">24.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">No Waiver of Certain Rights</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">25.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unavoidable Delay</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">26.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Nondiscrimination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">27.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Loss of Title</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">28.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Non-Joinder and Subsequent Joinder</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">29.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Counterparts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">30.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Special Surface Stipulations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">31.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Surrender</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">32.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Taxes</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">33.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">No Partnership</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">16</TD></TR>
</TABLE>
<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">Exhibit
&ldquo;A&rdquo; &ndash; Plat of Unit Area</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">Exhibit
&ldquo;B&rdquo; &ndash; Schedule showing percentage and kind of ownership</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">i</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="width: 1%; line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="width: 99%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">UNIT AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="line-height: 115%"><B>FOR THE DEVELOPMENT AND OPERATION</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">OF THE</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp; PARADISE UNIT AREA</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;&nbsp; COUNTIES OF NYE AND MINERAL</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp; STATE OF NEVADA</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;&nbsp;&nbsp; NO.______________ &nbsp;&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">THIS AGREEMENT, entered into as of the 22nd day of January, 2010, by and between the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">parties subscribing, ratifying, or consenting hereto, and herein referred to as the &quot;parties hereto,&quot;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">WITNESSETH:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.25in"><FONT STYLE="line-height: 115%"><B>WHEREAS, </B>the parties hereto are the owners of working, royalty, or other oil and gas</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;interests in the unit area subject to this agreement; and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 18.05pt"><FONT STYLE="line-height: 115%"><B>WHEREAS<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">, </FONT></B>the<FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"> Mineral Leasing Act of February 25, 1920, 41 Stat. 437, as amended, 30 </FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">U. S.C. Sec. 181 et seq., authorizes Federal lessees and their representatives to unite with each other,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">or jointly or separately with others, in collectively adopting and operating&nbsp; under a unit plan of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">development or operation of any oil and gas pool, field, or like area, or any part thereof for the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">purpose&nbsp; of&nbsp; more&nbsp; properly&nbsp; conserving&nbsp; the&nbsp; natural&nbsp; resources&nbsp; thereof&nbsp; whenever&nbsp; determined&nbsp; and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">certified by the Secretary of the Interior to be necessary or advisable in the public interest; and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">WHEREAS, the parties hereto hold sufficient interests in the Paradise Unit Area covering</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the land hereinafter described to give reasonably effective control of operations therein; and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">WHEREAS, it is the purpose of the parties hereto to conserve natural resources, prevent</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">waste, and secure other benefits obtainable through development and operation of the area subject to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">this agreement under the terms, conditions, and limitations herein set forth;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">NOW, THEREFORE, in consideration of the premises and the promises herein contained,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the parties hereto commit to this agreement their respective interests in the below-defined unit area</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and agree severally among themselves as follows:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif; font-weight: bold; text-indent: 27.1pt">1.&nbsp; ENABLING ACT AND REGULATIONS.&nbsp; The Mineral Leasing Act of February 25,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1920,&nbsp; as&nbsp; amended, supra,&nbsp; and&nbsp; all&nbsp; valid pertinent regulations including operating&nbsp; and unit plan</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">regulations, heretofore issued thereunder or valid, pertinent and reasonable regulations hereafter</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">issued thereunder are accepted and made a part of this agreement as to Federal lands, provided such</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">regulations are not inconsistent with the terms ofthis agreement; and as to non-Federal lands, the oil</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and gas operating regulations&nbsp; in&nbsp; effect&nbsp; as&nbsp; of&nbsp; the&nbsp; effective date hereof&nbsp; governing drilling and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">producing operations, not inconsistent with the terms hereof or the laws of the State in which the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">non-Federal land is located, are hereby accepted and made a part of this agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">2.&nbsp; UNIT AREA.&nbsp; The area specified on the map attached hereto, marked Exhibit &quot;A,&quot; is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereby designated and recognized as constituting the unit area, containing 40,073.39 acres, more or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">less.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Exhibit &quot;A&quot; shows, in addition to the boundary of the unit area, the boundaries and identity</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of tracts and leases in said area to the extent known to the Unit Operator.&nbsp; Exhibit &quot;B&quot; attached</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereto is a schedule showing to the extent known to the Unit Operator, the acreage, percentage, and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">kind of ownership of oil and gas interests in all lands in the unit area.&nbsp; However, nothing herein or in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Exhibits &quot;A&quot; or &quot;B&quot; shall be construed as a representation by any party hereto as to the ownership of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">any interest other than such interest or interests as are shown in the Exhibits as owned by such party.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Exhibits &quot;A&quot; and &quot;B&quot; shall be revised by the Unit Operator whenever changes in the unit area or in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the ownership interests in the individual tracts render such revision necessary, or when requested by</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Authorized Officer, hereinafter referred to as &quot;AO&quot; and not less than four copies of the revised</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Exhibits shall be filed with the proper Bureau of Land Management office.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">The above-described unit area shall when practicable be expanded to include therein any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">additional lands or shall be contracted to exclude lands whenever such expansion or contraction is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">deemed&nbsp; to be necessary or&nbsp; advisable to confonn&nbsp; with the purposes of&nbsp; this&nbsp; agreement.&nbsp;&nbsp; Such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">expansion or contraction shall be effected in the following manner:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(a) Unit Operator, on its own motion (after preliminary concurrence by the AO), or on</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">demand of the AO, shall prepare a notice of proposed expansion or contraction describing the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">contemplated&nbsp; changes in&nbsp; the&nbsp; boundaries of&nbsp; the&nbsp; unit area, the&nbsp; reasons&nbsp; therefor,&nbsp; any&nbsp; plans for</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">additional drilling, and the proposed effective date of the expansion or contraction, preferably the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">first day of a month subsequent to the date of notice.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(b) Said notice shall be delivered to the proper Bureau of Land Management office, and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">copies thereof mailed to the last known address of each working interest owner, lessee and lessor</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">whose interests are affected, advising that 30 days will be allowed for submission&nbsp; to the Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator of any objections.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(c) Upon expiration of the 30-day period provided in the preceding item (b) hereof, Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator shall file with the AO evidence of mailing of the notice of expansion or contraction and a</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">copy&nbsp; of&nbsp; any objections&nbsp; thereto&nbsp; which&nbsp; have&nbsp; been&nbsp; filed&nbsp; with&nbsp; Unit&nbsp; Operator,&nbsp; together&nbsp; with an</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">application in triplicate, for approval of such expansion or contraction and with appropriate joinders.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(d) After due consideration of all pertinent infonnation, the expansion or contraction shall,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">upon approval by the AO, become effective as of the date prescribed in the notice thereof or such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">other appropriate date.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">2</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(e) All legal subdivisions of lands (i.e., 40 acres by Government survey or its nearest lot or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">tract equivalent; in instances of irregular surveys, unusually large lots or tracts shall be considered in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">multiples of 40 acres or the nearest aliquot equivalent thereof), no parts of which are in or entitled to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">be in a participating area on or before the fifth anniversary of the effective date of the first initial</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area established under this unit agreement, shall be eliminated automatically from this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement, effective as of said fifth anniversary, and such lands shall no longer be a part of the unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area and shall no longer be subject to this agreement, unless diligent drilling operations are in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">progress on unitized lands not entitled to participation on said fifth anniversary, in which event all</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">such&nbsp; lands&nbsp; shall&nbsp; remain&nbsp; subject&nbsp; hereto&nbsp; for&nbsp; so&nbsp; long&nbsp; as such&nbsp; drilling&nbsp; operations&nbsp; are&nbsp; continued</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">diligently, with not more than 90 days' time elapsing between the completion of one such well and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the commencement of the next such well.&nbsp;&nbsp; All legal subdivisions of lands not entitled to be in a</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area&nbsp; within&nbsp; 10&nbsp; years after&nbsp; the&nbsp; effective date of&nbsp; the&nbsp; first&nbsp; initial&nbsp; participating area</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approved under this agreement shall be automatically eliminated from this agreement as of said</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">tenth&nbsp; anniversary.&nbsp;&nbsp;&nbsp; The&nbsp; Unit&nbsp; Operator&nbsp; shall,&nbsp; within&nbsp; 90&nbsp; days&nbsp; after&nbsp; the&nbsp; effective&nbsp; date&nbsp; of&nbsp; any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">elimination hereunder, describe the area so eliminated to the satisfaction of the AO and promptly</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">notify all parties in interest.&nbsp;&nbsp; All lands reasonably proved productive of unitized substances in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">paying quantities&nbsp; by diligent&nbsp; drilling&nbsp; operations&nbsp; after the aforesaid 5-year period&nbsp; shall&nbsp; become</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating in the same manner as during said first 5-year period.&nbsp; However, when such diligent</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">drilling operations cease, all non-participating lands not then entitled to be in a participating area</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall be automatically eliminated effective as of the 91st day thereafter.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Any expansion of the unit area pursuant to this section which embraces lands theretofore</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">eliminated pursuant&nbsp; to&nbsp; this&nbsp; subsection&nbsp; 2(e)&nbsp; shall&nbsp; not be&nbsp; considered&nbsp; automatic&nbsp; commitment or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">recommitment of such lands.&nbsp; If conditions warrant extension of the 10-year period specified in this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">subsection, a single extension of not to exceed 2 years may be accomplished by consent of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owners of 90% of the working interest in the current non-participating unitized lands and the owners</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of 60% of the basic royalty interests (exclusive of the basic royalty interests of the United States) in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">non-participating unitized lands with approval of the AO, provided such extension application is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">submitted not later than 60 days prior to the expiration of said 10-year period.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">3.&nbsp;&nbsp; UNITIZED LAND&nbsp; AND UNITIZED SUBSTANCES.&nbsp;&nbsp;&nbsp;&nbsp; All land now or hereafter</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">committed to this agreement shall constitute land referred to herein as &quot;unitized&nbsp; land&quot; or &quot;land</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">subject to this agreement&quot;. All oil and gas in any and all formations of the unitized land are unitized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">under the terms of this agreement and herein are called &quot;unitized substances&quot;.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%"><B>4. UNIT OPERATOR. </B>Cortez Exploration LLC is hereby designated as Unit Operator and</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">by signature hereto as Unit Operator agrees and consents to accept the duties and obligations of Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator for the discovery, development, and production of unitized substances as herein provided.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Whenever reference is made herein to the Unit Operator, such reference means the Unit Operator</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">acting in that capacity and not as an owner of interest in unitized substances, and the term &quot;working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest owner&quot; when used herein shall include or refer to Unit Operator as the owner of a working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;interest only when such an interest is owned by it.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">5. <B>RESIGNATION OR REMOVAL OF UNIT OPERATOR. </B>Unit Operator shall have</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the right to resign at any time prior to the establishment of a participating area or areas hereunder,</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">3</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">but such resignation shall not become effective so as to release Unit Operator from the duties and</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">obligations of Unit Operator and terminate Unit Operator's rights as such for a period of 6 months</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">after notice of intention to resign has been served by Unit Operator on all working interest owners</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and the AO and until all wells then drilled hereunder are placed in a satisfactory condition for</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">suspension or abandonment, whichever is required by the AO, unless a new Unit Operator shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">have been selected and approved and shall have taken over and assumed the duties and obligations</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of Unit Operator prior to the expiration of said period.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Unit Operator shall have the right to resign in like manner and subject to like limitations as</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">above provided at any time after a participating area established hereunder is in existence, but in all</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">instances of resignation or removal, until a successor Unit Operator is selected and approved as</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereinafter provided, the working interest owners shall be jointly responsible for performance of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">duties of Unit Operator, and shall not later than 30 days before such resignation or removal becomes</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">effective appoint a common agent to represent them in any action to be taken hereunder.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">The resignation of Unit Operator shall not release Unit Operator from any liability for any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">default by it hereunder occurring prior to the effective date of its resignation.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">The&nbsp; Unit&nbsp; Operator&nbsp; may,&nbsp; upon&nbsp; default&nbsp; or&nbsp; failure&nbsp; in&nbsp; the&nbsp; performance&nbsp; of&nbsp; its&nbsp; duties&nbsp; or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">obligations hereunder, be subject to removal by the same percentage vote of the owners of working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interests as herein provided for the selection&nbsp; of&nbsp; a new Unit Operator.&nbsp;&nbsp; Such&nbsp; removal shall be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">effective upon notice thereof to the AO.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">The resignation or removal of Unit Operator under this agreement shall not terminate its</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">right, title, or interest as the owner of a working interest or other interest in unitized substances, but</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">upon the resignation or removal of Unit Operator becoming effective, such Unit Operator shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">deliver possession of all wells, equipment, materials, and appurtenances used in conducting the unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">operations to the new duly qualified successor Unit Operator or to the common agent, if no such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">new Unit Operator is selected, to be used for the purpose of conducting unit operations hereunder.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Nothing&nbsp; herein&nbsp; shall&nbsp; be&nbsp; construed&nbsp; as&nbsp; authorizing&nbsp; removal&nbsp; of&nbsp; any&nbsp; material,&nbsp; equipment,&nbsp; or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">appurtenances needed for the preservation of any wells.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">6. <B>SUCCESSOR UNIT OPERATOR. </B>Whenever the Unit Operator shall tender his or its</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">resignation as Unit Operator or shall be removed as hereinabove provided, or a change of Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator is negotiated by the working interest owners, the owners of the working interests according</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">to their respective acreage interests in all unitized land shall, pursuant to the Approval of the Parties</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">requirements of the unit operating agreement, select a successor Unit Operator.&nbsp; Such selection shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">not become effective until:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(a)&nbsp; a Unit Operator so selected shall accept in writing the duties and responsibilities of Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator, and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(b)&nbsp; the selection shall have been approved by the AO.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If no successor Unit Operator is selected and qualified as herein provided, the AO at his</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">election may declare this unit agreement terminated.</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">4</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">7. <B>ACCOUNTING PROVISIONS AND UNIT OPERATING AGREEMENT. </B>If the</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unit Operator is not&nbsp; the sole owner of working interests, costs and&nbsp; expenses incurred by Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator in conducting unit operations hereunder shall be paid and apportioned among and borne by</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the owners of working interests, all in accordance with the agreement or agreements entered into by</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and between the Unit Operator and the owners of working interests, whether one or more, separately</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">or collectively. Any agreement or agreements entered into between the working interest owners and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Unit Operator as provided in this section, whether one or more, are herein referred to as the &quot;unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">operating agreement&quot;.&nbsp;&nbsp; Such unit operating agreement shall also provide the manner in which the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">working interest owners&nbsp; shall be entitled to receive their respective proportionate and allocated</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">share of the benefits accruing&nbsp; hereto in conformity with their underlying operating agreements,</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">leases, or&nbsp; other&nbsp; independent&nbsp; contracts,&nbsp; and such&nbsp; other&nbsp; rights&nbsp; and&nbsp; obligations&nbsp; as&nbsp; between&nbsp; Unit</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator and the working interest owners as may be agreed upon by Unit Operator and the working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest owners; however, no such unit operating agreement shall be deemed either to modify any of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the terms and conditions&nbsp; of this unit agreement or to relieve the Unit Operator of any right or</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">obligation established&nbsp; under&nbsp; this&nbsp; unit&nbsp; agreement, and&nbsp; in&nbsp; case&nbsp; of&nbsp; any&nbsp; inconsistency&nbsp; or&nbsp; conflict</TD></TR>
<TR>
    <TD NOWRAP STYLE="background-color: white; line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">between this agreement and the unit operating agreement, this agreement shall govern.&nbsp; Two copies</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of any unit operating agreement executed pursuant to this section shall be filed in the proper Bureau</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of Land Management office, prior to approval of this unit agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">8. <B>RIGHTS AND OBLIGATIONS OF UNIT OPERATOR. </B>Except as otherwise</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">specifically provided herein, the exclusive right, privilege, and duty of exercising any and all rights</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of the parties hereto which&nbsp; are necessary or convenient for prospecting for, producing, storing,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">allocating, and distributing the unitized substances are hereby delegated to and shall be exercised by</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Unit Operator as herein provided.&nbsp; Acceptable evidence of title to said rights shall be deposited</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">with&nbsp; Unit&nbsp; Operator&nbsp; and,&nbsp; together&nbsp; with&nbsp; this&nbsp; agreement,&nbsp; shall&nbsp; constitute&nbsp; and&nbsp; define&nbsp; the&nbsp; rights,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">privileges, and obligations of Unit Operator. Nothing herein, however, shall be construed to transfer</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">title&nbsp; to&nbsp; any land&nbsp; or&nbsp; to&nbsp; any&nbsp; lease&nbsp; or&nbsp; operating&nbsp; agreement, it&nbsp; being&nbsp; understood&nbsp; that&nbsp; under&nbsp; this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement the Unit Operator, in its capacity as Unit Operator, shall exercise the rights of possession</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and use vested in the parties hereto only for the purposes herein specified.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">9. <B>DRILLING TO DISCOVERY. </B>Within 6 months after the effective date hereof, the</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unit Operator shall commence to drill an adequate test well at a location approved by the AO,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unless on such effective&nbsp; date&nbsp; a well&nbsp; is being drilled in conformity with&nbsp; the terms hereof, and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">thereafter continue such drilling diligently until 500 feet below the top of the Triassic formation has</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">been tested or until at a lesser depth unitized substances shall be discovered which can be produced</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in&nbsp; paying quantities&nbsp; (to-wit:&nbsp; quantities&nbsp; sufficient to&nbsp; repay the costs of drilling, completing and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">producing operations, with a reasonable profit) or the Unit Operator shall at any time establish to the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">satisfaction of the AO that further drilling of said well would be unwarranted or impracticable,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">provided, however, that Unit Operator shall not in any event be required to drill said well to a depth</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in excess of 6,000 feet.&nbsp; Until the discovery of unitized substances capable of being produced in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">paying quantities, the Unit Operator shall continue drilling one well at a time, allowing not more</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">than 6 months between the completion of one well and the commencement of drilling operations for</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the&nbsp; next&nbsp; well,&nbsp; until&nbsp; a&nbsp; well&nbsp; capable&nbsp; of&nbsp; producing&nbsp; unitized&nbsp; substances&nbsp; in&nbsp; paying&nbsp; quantities&nbsp; is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">completed to the satisfaction of the AO or until it is reasonably proved that the unitized land is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">incapable of producing unitized substances in paying quantities in the formations drilled hereunder.</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">5</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">Nothing in this section shall be deemed to limit the right of the Unit Operator to resign as provided</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in Section 5 hereof, or as requiring Unit Operator to commence or continue any drilling during the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">period pending such resignation becoming effective in order to comply with the requirements of this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">section.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">The AO may modify any of the drilling requirements of this section by granting reasonable</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">extensions of time when, in his opinion, such action is warranted.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Until the establishment of a participating area, the failure to commence a well subsequent to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the drilling of the initial obligation well, or in the case of multiple well requirements, if specified,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">subsequent to the drilling of those multiple wells, as provided for in this (these) section(s), within</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the time allowed including any extension of time granted by the AO, shall cause this agreement to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">terminate automatically.&nbsp;&nbsp;&nbsp; Upon&nbsp; failure&nbsp; to&nbsp; continue&nbsp; drilling&nbsp; diligently&nbsp; any&nbsp; well&nbsp; other&nbsp; than&nbsp; the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">obligation well(s) commenced hereunder, the AO may, after 15 days notice to the Unit Operator,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">declare this unit agreement terminated.&nbsp;&nbsp; Failure to commence drilling the initial obligation well, or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the first of multiple&nbsp; obligation&nbsp; wells,&nbsp; on&nbsp; time and&nbsp; to drill&nbsp; it diligently&nbsp; shall&nbsp; result in the unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">agreement approval being declared invalid ab <U>initio</U> by the AO. <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">I</FONT>n the case of multiple well</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">requirements, failure to commence drilling the required multiple wells beyond the first well, and to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">drill them diligently, may result in the unit agreement approval being declared invalid ab <U>initio</U> by</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the AO.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">10. PLAN OF FURTHER&nbsp; DEVELOPMENT AND OPERATION.&nbsp;&nbsp; Within 6 months</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">after completion of a well capable of producing unitized substances in paying quantities, Operator</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall submit for the approval of the AO an acceptable plan of development and operation for the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unitized land which, when approved by the AO, shall constitute the further drilling and development</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">obligations of the Unit Operator under this agreement for the period specified therein.&nbsp; Thereafter,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">from time to time before the expiration of any existing plan, the Unit Operator shall submit for the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approval of the AO a plan for an additional specified period for the development and operation of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the unitized land.&nbsp; Subsequent plans should normally be filed on a calendar year basis not later than</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">March 1 each year.&nbsp; Any proposed modification or addition to the existing plan should be filed as a</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">supplement to the plan.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Any plan submitted pursuant to this section shall provide for the timely exploration of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unitized area, and for the diligent drilling necessary for determination of the area or areas capable of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">producing unitized substances in paying quantities in each and every productive formation.&nbsp;&nbsp; This</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">plan shall be as complete&nbsp; and&nbsp; adequate&nbsp; as&nbsp; the AO may determine&nbsp; to&nbsp; be&nbsp; necessary for timely</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">development and proper conservation of the oil and gas resources of the unitized area and shall:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(a)&nbsp; specify the number and locations of any wells to be drilled and the proposed order and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">time for such drilling; and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(b)&nbsp; provide a summary of operations and production for the previous year.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Plans shall be modified or supplemented when necessary to meet changed conditions or to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">protect the&nbsp; interests of&nbsp; all&nbsp; parties to&nbsp; this&nbsp; agreement.&nbsp;&nbsp; Reasonable diligence shall&nbsp;&nbsp; be&nbsp; exercised in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">complying with the obligations of the approved plan of development and operation.&nbsp; The AO is</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">6</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">authorized to grant a reasonable extension of the 6 month period herein prescribed for submission of</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">an initial plan of development&nbsp; and operation where such action is justified&nbsp; because of unusual</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">conditions or circumstances.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">After completion of a well capable of producing unitized substances in paying quantities, no</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">further wells, except such as may be necessary to afford protection against operations not under this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement and&nbsp; such&nbsp; as&nbsp; may&nbsp; be&nbsp; specifically&nbsp; approved&nbsp; by&nbsp; the&nbsp; AO,&nbsp; shall&nbsp; be&nbsp; drilled&nbsp; except&nbsp; in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">accordance with an approved plan of development and operation.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">11. PARTICIPATION&nbsp; AFTER DISCOVERY. Upon completion&nbsp; of a well capable of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">producing unitized substances in paying quantities, or as soon thereafter as required by the AO, the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unit Operator shall submit for approval by the AO, a schedule, based on subdivisions of the public-</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">land survey or aliquot parts thereof, of all land then regarded as reasonably proved to be productive</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of unitized substances in paying quantities.&nbsp;&nbsp; These lands shall constitute a participating area on</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approval of the AO, effective as of the date of completion of such well or the effective date of this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unit agreement, whichever is later.&nbsp;&nbsp; The acreages of both Federal and non-Federal lands shall be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">based upon appropriate computations from the courses and distances shown on the last approved</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">public-land survey as of the effective date of each initial participating area.&nbsp; The schedule shall also</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">set forth the percentage of unitized substances to be allocated, as provided in Section 12, to each</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">committed&nbsp; tract&nbsp; in&nbsp; the&nbsp; participating&nbsp; area&nbsp; so&nbsp; established,&nbsp; and&nbsp; shall&nbsp; govern&nbsp; the&nbsp; allocation&nbsp; of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">production commencing with the effective date of the participating area.&nbsp;&nbsp; A different participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area shall be established for each separate pool or deposit of unitized substances or for any group</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">thereof which is produced as a single pool or zone, and any two or more participating areas so</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">established may be combined into one, on approval of the AO.&nbsp; When production from two or more</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating areas is subsequently found to be from a common pool or deposit, the participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">areas shall be combined into one, effective as of such appropriate date as may be approved or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">prescribed by the AO.&nbsp; The participating area or areas so established shall be revised from time to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">time, subject to the approval of the AO, to include additional lands then regarded as reasonably</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">proved to be productive of unitized substances in paying quantities or which are necessary for unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">operations, or to exclude lands then regarded as reasonably proved not to be productive of unitized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">substances&nbsp; in&nbsp; paying&nbsp; quantities,&nbsp; and&nbsp; the&nbsp; schedule&nbsp; of&nbsp; allocation&nbsp; percentages&nbsp; shall&nbsp; be&nbsp; revised</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">accordingly.&nbsp;&nbsp; The&nbsp; effective date&nbsp; of&nbsp; any revision shall be the first&nbsp; of&nbsp; the&nbsp; month in which the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">knowledge or information is obtained on which such revision is predicated; provided, however, that</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">a more appropriate effective date may be used if justified by Unit Operator and approved by the AO.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">No&nbsp; land&nbsp; shall be&nbsp; excluded&nbsp; from&nbsp; a&nbsp; participating area&nbsp; on&nbsp; account&nbsp; of&nbsp; depletion&nbsp; of&nbsp; its&nbsp; unitized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">substances, except that any participating area established under the provisions of this unit agreement</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall terminate automatically whenever all completions in the formation on which the participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area is based are abandoned.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif; text-indent: 27pt">It is the intent of this section that a participating area shall represent the area known or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">reasonably proved&nbsp; to&nbsp; be&nbsp; productive&nbsp; of&nbsp; unitized&nbsp; substances&nbsp; in&nbsp; paying&nbsp; quantities&nbsp; or&nbsp; which are</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">necessary for unit operations; but, regardless of any revision of the participating area, nothing herein</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">contained shall be construed as requiring any retroactive adjustment for production obtained prior to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the effective date of the revision of the participating area.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">7</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif; text-indent: 27pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; line-height: 115%">I</FONT>n the absence of agreement at any time between the Unit Operator and the AO as to the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">proper definition or redefinition of a participating area, or until a participating area has, or areas</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">have, been established, the portion of all payments affected thereby shall, except royalty due the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">United States, be impounded in a manner mutually acceptable to the owners of committed working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interests.&nbsp; Royalties due the United States shall be determined by the AO and the amount thereof</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall be deposited, as directed by the AO, until a participating area is finally approved and then</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">adjusted in accordance with a determination of the sum due as Federal royalty on the basis of such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approved participating area.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Whenever it is determined, subject to the approval of the AO, that a well drilled under this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement is not capable of production of unitized substances in paying quantities and inclusion in a</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area of the land on which it is situated is unwarranted, production from such well shall,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">for the purposes of settlement among all parties other than working interest owners, be allocated to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the land on which the well is located, unless such land is already within the participating area</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">established for the pool or deposit from which such production is obtained.&nbsp; Settlement for working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest benefits from such a nonpaying unit well shall be made as provided in the unit operating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">12.&nbsp; ALLOCATION&nbsp; OF&nbsp; PRODUCTION.&nbsp;&nbsp;&nbsp; All&nbsp; unitized&nbsp; substances&nbsp; produced&nbsp; from&nbsp; a</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area established under this agreement, except any part thereof used in conformity with</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">good operating practices within the unitized area for drilling, operating and other production or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">development purposes, for repressuring or recycling in accordance with a plan of development and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">operations that has been approved by the AO, or unavoidably lost, shall be deemed to be produced</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">equally on an acreage basis from the several tracts of unitized land and unleased Federal land, if any,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">included in the participating area established&nbsp; for such production.&nbsp;&nbsp;&nbsp; Each&nbsp; such&nbsp; tract shall have</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">allocated to it such percentage of said production as the number of acres of such tract included in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">said participating area bears to the total acres of unitized land and unleased Federal land, if any,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">included in said participating area.&nbsp;&nbsp; There shall be allocated to the working interest owner(s) of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">each tract of unitized land in said participating area, in addition, such percentage of the production</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">attributable to the unleased Federal land within the participating area as the number of acres of such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unitized tract included in said participating area bears to the total acres of unitized land in said</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area, for the payment of&nbsp; the compensatory royalty specified&nbsp; in Section 17 of this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement.&nbsp; Allocation of production hereunder for purposes other than for settlement of the royalty,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">overriding&nbsp; royalty, or payment&nbsp; out of production obligations of&nbsp; the respective working interest</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owners, including compensatory royalty obligations under Section 17, shall be prescribed as set</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">forth in the unit operating agreement or as otherwise mutually agreed by the affected parties. <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">It</FONT> is</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereby agreed that production of unitized substances from a participating area shall be allocated as</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">provided herein, regardless of whether any wells are drilled on any particular part or tract of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area.&nbsp;&nbsp; If any gas produced&nbsp; from one participating area is used for repressuring or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">recycling purposes in another participating area, the first gas withdrawn from the latter participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area for sale during the life of this agreement, shall be considered to be the gas so transferred, until</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">an amount equal to that transferred shall be so produced for sale and such gas shall be allocated to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the participating area from which initially produced as such area was defined at the time that such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">transferred gas was finally produced and sold.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">8</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt"><FONT STYLE="line-height: 115%"><B>13. DEVELOPMENT OR OPERATION OF NON-PARTICIPATING LAND OR</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">FORMATIONS.&nbsp; Any operator may, with the approval of the AO, at such party's sole risk, cost,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and expense, drill a well on the unitized land to test any formation provided the well is outside any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">participating area established for that formation, unless within 90 days of receipt of notice from said</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">party of his intention to drill the well, the Unit Operator elects and commences to drill the well in a</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">like manner as other wells are drilled by the Unit Operator under this agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If any well drilled under this section by a non-unit operator results in production of unitized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">substances in paying quantities such that the land upon which it is situated may properly be included</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in a participating area, such participating area shall be established or enlarged as provided in this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement and the well shall thereafter be operated by the Unit Operator in accordance with the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">terms of this agreement and the unit operating agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">13&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If any well drilled under this section by a non-unit operator obtains production in quantities</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">insufficient to justify the inclusion of the land upon which such well is situated in a participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area, such&nbsp; well&nbsp; may&nbsp; be operated&nbsp; and produced&nbsp; by the party drilling&nbsp; the&nbsp; same,&nbsp; subject&nbsp; to the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">conservation requirements of this agreement.&nbsp; The royalties in amount or value of production from</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">any such well shall be paid as specified in the underlying lease and agreements affected.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">14. ROYALTY SETTLEMENT. The United States and any State and any royalty owner</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">who is entitled to take in kind a share of the substances now unitized hereunder shall hereafter be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">entitled to the right to take in kind its share of the unitized substances, and Unit Operator, or the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">non-unit operator in the case of the operation of a well by a non-unit operator as herein provided for</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in special cases, shall make deliveries of such royalty share taken in kind in conformity with the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">applicable contracts, laws, and regulations. Settlement for royalty interest not taken in kind shall be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">made by an operator responsible therefor under existing contracts, laws and regulations, or by the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unit Operator on or before the last day of each month for unitized substances produced during the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">preceding calendar month; provided, however, that nothing in this section shall operate to relieve</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the responsible parties of any land from their respective lease obligations for the payment of any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">royalties due under their leases.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If gas obtained from lands not subject to this agreement is introduced into any participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area hereunder, for use in repressuring, stimulation of production, or increasing ultimate recovery, in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">conformity with a plan of development and operation approved by the AO, a like amount of gas,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">after settlement as herein provided for any gas transferred from any other participating area and with</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">appropriate deduction for loss from any cause, may be withdrawn from the formation into which the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">gas is introduced, royalty free as to dry gas, but not as to any products which may be extracted</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">therefrom; provided that such withdrawal shall be at such time as may be provided in the approved</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">plan of development and operation or as may otherwise be consented to by the AO as conforming to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">good petroleum engineering practice; and provided further, that such right of withdrawal shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">terminate on the termination of this unit agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Royalty due the United States shall be computed as provided in 30 CFR Group 200 and paid</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in value or delivered in kind as to all unitized substances on the basis of the amounts thereof</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">allocated to unitized Federal land as provided in Section 12 at the rates specified in the respective</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Federal leases, or at such other rate or rates as may be authorized by law or regulation and approved</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">9</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">by the AO; provided, that for leases on which the royalty rate depends on the daily average</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">production per well, said average production shall be determined in accordance with the operating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">regulations as though each participating area were a single consolidated lease.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">15. RENTAL SETTLEMENT.&nbsp;&nbsp; Rental or minimum royalties due on leases committed</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereto shall&nbsp; be&nbsp; paid by&nbsp; the&nbsp; appropriate parties under existing&nbsp; contracts,&nbsp; laws, and regulations,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">provided that nothing herein contained shall operate to relieve the responsible parties of the land</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">from their respective obligations for the payment of any rental or minimum royalty due under their</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">leases.&nbsp; Rental or minimum royalty for lands of the United States subject to this agreement shall be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">paid at the rate specified&nbsp; in&nbsp; the respective leases from the United States&nbsp; unless such rental or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">minimum royalty is waived, suspended, or reduced by law or by approval of the Secretary or his</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">duly authorized representative.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">With respect to any lease on non-Federal land containing provisions which would terminate</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">such lease unless drilling operations are commenced upon the land covered thereby within the time</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">therein specified or rentals are paid for the privilege of deferring such drilling operations, the rentals</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">required thereby shall, notwithstanding any other provision of this agreement, be deemed to accrue</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and become payable during the term thereof as extended by this agreement and until the required</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">drilling operations are commenced upon the land covered thereby, or until some portion of such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">land is included within a participating area.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">16. CONSERVATION.&nbsp;&nbsp; Operations hereunder and production of unitized substances shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">be conducted to provide for the most economical and efficient recovery of said substances without</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">waste, as defined by or pursuant to State or Federal law or regulation.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">17. DRAINAGE.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(a)&nbsp; The Unit Operator shall take such measures as the AO deems appropriate and adequate</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">to prevent drainage of unitized substances from unitized land by wells on land not subject to this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement, which shall include the drilling of protective wells and which may include the payment</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of a fair and reasonable compensatory royalty, as determined by the AO.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(b)&nbsp;&nbsp; Whenever a participating area approved under Section 11 of this agreement contains</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unleased Federal lands, the value of 12-112 percent of the production that would be allocated to such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Federal lands under Section 12 of this agreement, if such lands were leased, committed and entitled</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">to participation, shall be payable as compensatory royalties to the Federal Government.&nbsp; Parties to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">this agreement holding working interests in committed leases within the applicable participating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">area shall be responsible&nbsp; for such compensatory royalty payment on the volume of production</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">reallocated from the unleased Federal lands to their unitized tracts under Section 12.&nbsp; The value of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">such production subject to the payment of said royalties shall be determined pursuant to 30 CFR</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Part 206.&nbsp; Payment of compensatory royalties on the production reallocated from unleased Federal</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">land to the committed tracts within the participating area shall fulfill the Federal royalty obligation</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">for such production, and said production shall be subject to no further Federal royalty assessment</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">under Section 14 of this agreement.&nbsp; Payment of compensatory royalties as provided herein shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">accrue from the date the committed tracts in the participating area that includes unleased Federal</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">land receive a production allocati :m, and shall be due and payable monthly by the last day of the</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">10</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">calendar month next following the calendar month of actual production. If leased Federal lands</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">receiving a&nbsp; production&nbsp; allocation&nbsp; from&nbsp; the&nbsp; participating&nbsp; area&nbsp; become&nbsp; unleased,&nbsp; compensatory</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">royalties shall accrue from the date the Federal lands become unleased.&nbsp;&nbsp; Payment due under this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">provision shall&nbsp; end&nbsp; when&nbsp; the&nbsp; unleased Federal tract is leased or&nbsp; when&nbsp; production of&nbsp; unitized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">substances ceases within the participating area and the participating area is terminated, whichever</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">occurs first.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">18.&nbsp; LEASES&nbsp; AND&nbsp; CONTRACTS&nbsp; CONFORMED&nbsp; AND&nbsp; EXTENDED.&nbsp;&nbsp;&nbsp; The&nbsp; terms,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">conditions, and provisions&nbsp; of&nbsp; all&nbsp; leases, subleases, and other&nbsp; contracts&nbsp; relating&nbsp; to exploration,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">drilling, development, or operation for oil or gas on lands committed to this agreement are hereby</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">expressly modified and amended to the extent necessary to make the same conform to the provisions</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereof, but otherwise to remain in full force and effect; and the parties hereto hereby consent that the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Secretary shall&nbsp; and&nbsp; by&nbsp; his&nbsp; approval&nbsp; hereof, or&nbsp; by the&nbsp; approval&nbsp; hereof&nbsp; by his duly authorized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">representative, does&nbsp; hereby&nbsp; establish,&nbsp; alter,&nbsp; change,&nbsp; or&nbsp; revoke&nbsp; the&nbsp; drilling,&nbsp; producing,&nbsp; rental,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">minimum royalty, and royalty requirements of Federal leases committed hereto and the regulations</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in respect thereto to conform said requirements to the provisions of this agreement, and, without</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">limiting the generality of the foregoing, all leases, subleases, and contracts are particularly modified</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in accordance with the following:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(a) The development and operation oflands subject to this agreement under the terms hereof</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall be deemed full performance of all obligations for development and operation with respect to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">each and every separately owned tract subject to this agreement, regardless of whether there is any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">development of any particular tract of this unit area.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(b)&nbsp; Drilling and producing operations performed hereunder upon any tract of unitized lands</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">will be accepted and deemed to be performed upon and for the benefit of each and every tract of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">unitized land, and no lease shall be deemed to expire by reason of failure to drill or produce wells</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">situated on the land therein embraced.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(c) Suspension of drilling or producing operations on all unitized lands pursuant to direction</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">or consent of the AO shall be deemed to constitute such suspension pursuant to such direction or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">consent as to each and every tract of unitized land. A suspension of drilling or producing operations</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">limited to specified lands shall be applicable only to such lands.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(d)&nbsp;&nbsp; Each lease, sublease or contract relating to the exploration, drilling, development, or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">operation for oil or gas of lands other than those of the United States committed to this agreement</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">which, by its terms might expire prior to the termination of this agreement, is hereby extended</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">beyond any such term so provided therein so that it shall be continued in full force and effect for and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">during the term of this agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(e)&nbsp; Any Federal lease committed hereto shall continue in force beyond the term so provided</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">therein or by law as to the land committed so long as such lease remains subject hereto, provided</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">that production of unitized substances in paying quantities is established under this unit agreement</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">prior to the expiration date of the term of such lease, or in the event actual drilling operations are</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">commenced on unitized land, in accordance with provisions of this agreement, prior to the end of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the primary term of such lease and are being diligently prosecuted at that time, such lease shall be</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">11</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">extended for two years, and so long thereafter as oil or gas is produced in paying quantities in</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">accordance with the provisions of the Mineral Leasing Act, as amended.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(f)&nbsp;&nbsp;&nbsp; Each&nbsp; sublease&nbsp; or&nbsp; contract&nbsp; relating&nbsp; to&nbsp; the&nbsp; operation&nbsp; and&nbsp; development&nbsp; of&nbsp; unitized</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">substances from lands of the United States committed to this agreement, which by its terms would</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">expire prior to the time at which the underlying lease, as extended by the immediately preceding</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">paragraph, will expire, is hereby extended beyond any such term so provided therein so that it shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">be continued in full force and effect for and during the term of the underlying lease as such term is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">herein extended.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(g)&nbsp; The segregation of any Federal lease committed to this agreement is governed by the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">following provision in the fourth paragraph of Sec. 17(m) of the Mineral Leasing Act, as amended</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">by the Act of September 2, 1960, (74 Stat. 781-784) (30 U.S.C. 226 (m)): &quot;Any (Federal) lease</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">heretofore or hereafter committed to any such (unit) plan embracing lands that are in part within and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in part outside of the area covered by any such plan shall be segregated into separate leases as to the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">lands committed and the lands not committed as of the effective date of unitization: Provided,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-decoration: underline">however, that any such lease as to the non-unitized portion shall continue in force and effect for the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">term thereof but for not less than two years from the date of such segregation and so long thereafter</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">as oil or gas is produced in paying quantities.&quot;&nbsp; If the public interest requirement is not satisfied, the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">segregation of a lease and/or extension of a lease pursuant to 43 CFR 3107.3-2 and 43 CFR 3107.4,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">respectively, shall not be effective.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(h)&nbsp;&nbsp; Any lease, other than a Federal lease, having only a portion of its lands committed</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereto shall be segregated as to the portion committed and the portion not committed, and the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">provisions of such lease shall apply separately to such segregated portions commencing as of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">effective date hereof. <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">I</FONT>n the event any such lease provides for a lump-sum rental payment, such</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">payment shall be prorated between the portions so segregated in proportion to the acreage of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">respective tracts.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">19. COVENANTS RUN WITH LAND.&nbsp; The covenants herein shall be construed to be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">covenants running&nbsp; with&nbsp; the&nbsp; land&nbsp; with&nbsp; respect to&nbsp; the&nbsp; interests&nbsp; of&nbsp; the&nbsp; parties&nbsp; hereto&nbsp; and&nbsp; their</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">successors in interest until&nbsp; this agreement terminates, and any grant, transfer or conveyance of</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest in land or leases subject hereto shall be and hereby is conditioned upon the assumption of all</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">privileges and obligations hereunder by the grantee, transferee, or other successor in interest.&nbsp; No</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">assignment or transfer of&nbsp; any working interest royalty, or other interest subject hereto shall be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">binding upon Unit Operator until the first day of the calendar month after Unit Operator is furnished</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">with the original, photostatic, or certified copy of the instrument of transfer.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">20.&nbsp; EFFECTIVE&nbsp; DATE&nbsp; AND&nbsp; TERM.&nbsp;&nbsp;&nbsp; This&nbsp; agreement shall&nbsp; become&nbsp; effective upon</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approval of the AO and shall automatically terminate five (5) years from said effective date unless:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(a) upon application by the Unit Operator such date of expiration is extended by the AO, or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(b)&nbsp; it is reasonably determined prior to the expiration of the fixed term or any extension</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">thereof that the unitized land is incapable of production of unitized substances in paying quantities</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in the formations tested hereunder, and after notice of intention to terminate this agreement on such</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">12</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">ground is given by the Unit Operator to all parties in interest at their last known addresses, this</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement is terminated with approval of the AO, or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(c)&nbsp;&nbsp; a&nbsp; valuable discovery of&nbsp; unitized substances in paying quantities&nbsp; has been made or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">accepted on unitized land&nbsp; during said initial term or any extension thereof, in which event this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement shall remain in effect for such term and so long thereafter as unitized substances can be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">produced in quantities sufficient to pay for the cost of producing same from wells on unitized land</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">within any participating area established hereunder. Should production cease and diligent drilling or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">reworking operations to restore production or new production are not in progress within 60 days and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">production&nbsp; is&nbsp; not restored&nbsp; or&nbsp; should&nbsp; new&nbsp; production not&nbsp; be obtained&nbsp; in&nbsp; paying&nbsp; quantities&nbsp; on</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">committed lands within this unit area, this agreement will automatically terminate effective the last</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">day of the month in which the last unitized production occurred, or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">(d)&nbsp; it is voluntarily terminated as provided in this agreement.&nbsp; Except as noted herein this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement may be terminated at any time prior to the discovery of unitized substances which can be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">produced in paying quantities by not less than 75 per centum, on an acreage basis, of the working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest owners signatory hereto, with the approval of the AO.&nbsp; The Unit Operator shall give notice</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of any such approval to all parties hereto.&nbsp;&nbsp; If the public interest requirement is not satisfied, the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approval of this unit by the AO shall be invalid.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">21. RATE OF PROSPECTING, DEVELOPMENT, AND PRODUCTION.&nbsp; The AO is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereby vested with authority to alter or modify from time to time, in his discretion, the quantity and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">rate of production under this agreement&nbsp; when such quantity and rate are not fixed pursuant to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Federal or State law, or&nbsp; do&nbsp; not conform to any Statewide voluntary conservation&nbsp; or allocation</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">program which is established, recognized, and generally adhered to by the majority of operators in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">such State.&nbsp; The above authority is hereby limited to alteration or modifications which are in the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">public interest.&nbsp; The public interest to be served and the purpose thereof, must be stated in the order</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of alteration or modification.&nbsp; Without regard to the foregoing, the AO is also hereby vested with</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">authority to&nbsp; alter or&nbsp; modify&nbsp; from&nbsp; time&nbsp; to&nbsp; time, in his discretion,&nbsp; the&nbsp; rate&nbsp; of&nbsp; prospecting and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">development and the quantity and rate of production under this agreement when such alteration or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">modification is in the interest of attaining the conservation objectives stated in this agreement and is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">not in violation of any applicable Federal or State law.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Powers in this section vested in the AO shall only be exercised after notice to Unit Operator</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">and opportunity for hearing to be held not less than 15 days from notice.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">22. APPEARANCES.&nbsp; The Unit Operator shall, after notice to other parties affected, have</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the right to appear for and on behalf of any and all interests affected hereby before the Department</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of the Interior and to appeal from orders issued under the regulations of said Department, or to apply</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">for relief from any of said&nbsp; regulations, or in any proceedings relative to operations&nbsp; before the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Department, or any other legally constituted authority; provided, however, that any other interested</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">party shall also have the right at its own expense to be heard in any such proceeding.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">23.&nbsp; NOTICES.&nbsp; All&nbsp; notices,&nbsp; demands,&nbsp; or statements required hereunder&nbsp; to&nbsp; be given or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">rendered to the parties hereto shall be in writing and shall be personally delivered to the party or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">13</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">parties,&nbsp; or sent by postpaid&nbsp; registered&nbsp; or certified&nbsp; mail, to the last known&nbsp; address&nbsp; of the party or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">parties.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">24. NO WAIVER OF CERTAIN RIGHTS.&nbsp; Nothing herein contained&nbsp; in this agreement</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall be construed&nbsp; as a waiver&nbsp; by any party hereto of the right to assert any legal or constitutional</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">right or defense as to the validity or invalidity&nbsp; of any law of the State where the unitized&nbsp; lands are</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">located, or of the United States, or regulations&nbsp; issued thereunder in any way affecting such party, or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">as a waiver by any such party of any right beyond his or its authority to waive.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">25. UNAVOIDABLE DELAY.&nbsp;&nbsp; All obligations&nbsp; under&nbsp; this&nbsp; agreement&nbsp; requiring&nbsp; the Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Operator&nbsp; to commence&nbsp; or continue&nbsp; drilling,&nbsp; or to operate on, or produce&nbsp; unitized&nbsp; substances&nbsp; from</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">any of the lands covered by this agreement,&nbsp; shall be suspended while the Unit Operator, despite the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">exercise of due care and diligence,&nbsp; is prevented&nbsp; from complying with such obligations,&nbsp; in whole or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">in part, by strikes, acts of God, Federal, State, or municipal law or agencies,&nbsp; unavoidable accidents,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">uncontrollable&nbsp; delays in transportation, inability&nbsp; to obtain&nbsp; necessary&nbsp; materials&nbsp; or equipment&nbsp; in the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">open market, or other matters beyond the reasonable control of the Unit Operator&nbsp; whether similar to</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">matters herein enumerated or not.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt"><FONT STYLE="line-height: 115%"><B>26. NONDISCRIMINATION. </B><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">I</FONT>n connection with the performance of work under this</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement,&nbsp; the Unit Operator&nbsp; agrees&nbsp; to comply&nbsp; with&nbsp; all the provisions&nbsp; of Section&nbsp; 202 (1) to (7)</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">inclusive of Executive Order 11246 (30 F.R. 12319), as amended, which are hereby incorporated by</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">reference in this agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt"><FONT STYLE="line-height: 115%"><B>27. LOSS OF TITLE. </B><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">I</FONT>n the event title to any tract of unitized land shall fail and the true</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owner cannot be induced to join in this unit agreement, such tract shall be automatically&nbsp; regarded as</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">not committed&nbsp; hereto, and there shall be such readjustment&nbsp; of future costs and benefits as may be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">required on account of the loss of such title. <FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">I</FONT>n the event of a dispute as to title to any royalty,</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">working&nbsp; interest, or other interest&nbsp; subject&nbsp; thereto,&nbsp; payment or delivery&nbsp; on account&nbsp; thereof may be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">withheld&nbsp; without liability for interest until the dispute is finally settled; provided,&nbsp; that, as to Federal</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">lands or leases, no payments&nbsp; of funds due the United States shall be withheld,&nbsp; but such funds shall</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">be deposited&nbsp; as directed&nbsp; by the AO, to be held as unearned money pending&nbsp; final settlement&nbsp; of the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">title dispute, and then applied as earned or returned in accordance with such final settlement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">Unit Operator as such is relieved from any responsibility for any defect or failure of any title</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereunder.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">28. NON-JOINDER AND SUBSEQUENT JOINDER.&nbsp;&nbsp; If the&nbsp; owner&nbsp; of any substantial</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest in a tract within the unit area fails or refuses to subscribe&nbsp; or consent&nbsp; to this agreement, the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owner&nbsp; of the working interest&nbsp; in that tract may withdraw&nbsp; the tract from this agreement&nbsp; by written</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">notice delivered to the proper Bureau of Land Management office and the Unit Operator prior to the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">approval&nbsp; of this agreement&nbsp; by the AO.&nbsp;&nbsp; Any oil or gas interests&nbsp; in lands within&nbsp; the unit area not</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">committed&nbsp; hereto prior to final approval may thereafter be committed hereto by the owner or owners</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">thereof subscribing or consenting&nbsp; to this agreement, and, if the interest is a working interest, by the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owner&nbsp; of&nbsp; such&nbsp; interest&nbsp; also&nbsp; subscribing&nbsp; to&nbsp; the&nbsp; unit&nbsp; operating&nbsp; agreement.&nbsp;&nbsp;&nbsp; After&nbsp; operations&nbsp; are</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">commenced&nbsp; hereunder,&nbsp; the right of subsequent&nbsp; joinder,&nbsp; as provided&nbsp; in this section,&nbsp; by a working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest owner is subject to such requirements&nbsp; or approval(s),&nbsp; if any, pertaining&nbsp; to such joinder, as</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">14</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">may be provided for in the unit operating agreement. After final approval hereof, joinder by a non-</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">working interest owner must be consented to in writing by the working interest owner committed</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">hereto and responsible for the payment of any benefits that may accrue hereunder in behalf of such</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">non-working interest.&nbsp; A non-working interest may not be committed to this unit agreement unless</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the corresponding working interest is committed hereto.&nbsp; Joinder to the unit agreement by a working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest owner, at any time,&nbsp; must&nbsp; be accompanied&nbsp; by appropriate joinder&nbsp; to the&nbsp; unit operating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement, in order for the interest to be regarded as committed to this agreement.&nbsp; Except as may</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">otherwise herein be provided, subsequent joinders to this agreement shall be effective as of the date</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of the filing with the AO of duly executed counterparts of all or any papers necessary to establish</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">effective commitment of any interest and/or tract to this agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">29. COUNTERPARTS.&nbsp; This agreement may be executed in any number of counterparts,</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">no one of which needs to be executed by all parties, or may be ratified or consented to by separate</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">instrument in writing specifically referring hereto and shall be binding upon all those parties who</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">have executed such a counterpart, ratification, or consent hereto with the same force and effect as if</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">all such parties had signed the same document, and regardless of whether or not it is executed by all</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">other parties owning or claiming an interest in the lands within the above-described unit area.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">30. SPECIAL SURFACE STIPULATIONS.&nbsp;&nbsp; Nothing in this agreement shall modify the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">special Federal lease stipulations attached to the individual Federal oil and gas leases.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">31. SURRENDER.&nbsp; Nothing in this Agreement shall prohibit the exercise by any working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest owner of the right to surrender vested in such party by any lease, sublease, or operating</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">agreement as to all or any part of the lands covered thereby, provided that each party who will or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">might acquire such working interest by such surrender or by forfeiture as hereafter set forth, is</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">bound by the terms of this Agreement.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If as a result of any surrender, the working interest rights as to such lands become vested in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">any party other than the fee owner of the Unitized Substances, said party may forfeit such rights and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">further benefits from operations hereunder as to said land to the party next in the chain of title who</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall be and become the owner of such working interest.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If as the result of any such surrender of forfeiture working interest rights become vested in</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the fee owner of the Unitized Substances, such owner may:</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.75in">(a)&nbsp; Accept&nbsp; those working&nbsp; interest&nbsp; rights subject to&nbsp; this Agreement&nbsp; and the Unit</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.75in">Operating Agreement; or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.75in">(b) Lease the portion of such land as is included in a participating area established</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.75in">hereunder subject to this Agreement and the Unit Operating Agreement; or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.75in">(c) Provide for the independent operation of any part of such land that is not then</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 0.75in">included within a participating area established hereunder.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">If&nbsp; the&nbsp; fee&nbsp; owner of&nbsp; the&nbsp; Unitized Substances&nbsp; does&nbsp;&nbsp; not&nbsp; accept the&nbsp; working&nbsp; interest rights</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">subject to this Agreement and the Unit Operating Agreement or lease such lands as above provided</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">15</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">within 6 months after the surrendered or forfeited, working interest rights become vested in the fee</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owner; the benefits and obligations of operations accruing to such lands under this Agreement be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shared by the remaining owners of the unitized working interests in accordance with their respective</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">working interest ownerships, and such owners of working interests shall compensate the fee owner</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of Unitized Substances in such lands by paying sums equal to the rentals, minimum royalties, and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">royalties applicable to such lands under the lease in effect when the lands were unitized.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">7</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">8</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif; text-indent: 27pt">An appropriate accounting&nbsp; and settlement shall&nbsp; be made for all benefits accruing to or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">9</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">payments and expenditures made or incurred on behalf of such surrendered or forfeited working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">10</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interests subsequent to the date of surrender of forfeiture, and payment of any moneys found to be</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">11</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">owing by such an accounting shall be made as between the parties within 30 days.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">12</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">13</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt">The exercise of any right vested in a working interest owner to reassign such working</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">14</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">interest to the party from whom obtained shall be subject to the same conditions as set forth in this</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">15</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">section in regard to the exercise of a right to surrender.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 27.1pt">32. TAXES.&nbsp;&nbsp; The working interest owners shall render and pay for their account and the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">18</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">account of the royalty owners all valid taxes on or measured by the Unitized Substances in and</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">19</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">under or that may be produced, gathered and sold from the land covered by this Agreement after its</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">20</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">effective date, or upon the proceeds derived therefrom.&nbsp; The working interest owners on each tract</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">shall and may charge the proper proportion of said taxes to royalty owners having interests in said</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">22</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">tract, and may currently&nbsp; retain&nbsp; and&nbsp; deduct a sufficient&nbsp; amount of&nbsp; the&nbsp; Unitized&nbsp; Substances or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">23</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">derivative products, or net proceeds thereof, from the allocated share of each royalty owner to secure</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">reimbursement for the taxes so paid.&nbsp; No such taxes shall be charged to the United States or the</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">25</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">State of Nevada or to any lessor who has a contract with his lessee which requires the lessee to pay</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">26</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">such taxes.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">27</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">28</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">33. <B>NO PARTNERSHIP. </B>It is expressly agreed that the relation of the parties hereto is that</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">29</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of independent contractors and nothing contained in this Agreement, expressed or implied, nor any</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">30</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">operations&nbsp; conducted&nbsp; hereunder,&nbsp; shall&nbsp; create&nbsp; or&nbsp; be&nbsp; deemed&nbsp; to&nbsp; have&nbsp; created&nbsp; a&nbsp; partnership&nbsp; or</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">31</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">association between the parties hereto or any of them.</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">32</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">33</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">34</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">35</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">36</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">37</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">38</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">39</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">* * * The balance of this page is left blank intentionally* * *</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">40</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">41</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">42</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">44</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">45</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="line-height: 115%; text-align: right">46</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Courier New, Courier, Monospace">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">16</TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1</TD>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-indent: 29.5pt"><FONT STYLE="line-height: 115%"><B>IN WITNESS WHEREOF, </B>the parties hereto have caused this agreement to be executed</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2</TD>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">and have set opposite their respective names the date of execution.</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">3</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">4</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">5</TD>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">UNIT OPERATOR&nbsp; AND WORKING INTEREST OWNER</TD></TR>
<TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">8</TD>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">CORTEZ EXPLORATION,&nbsp; LLC</TD></TR>
<TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">12</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">By:&nbsp; /s/Otto F. Duffield</TD></TR>
<TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">14</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">15</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">16</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Address:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16786 Kincheloe&nbsp; Road</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">17</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Siloam Springs, Arkansas 72761&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Date of Execution</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">18</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">19</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">February 4, 2010</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">21</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">22</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">STATE OF <U>&nbsp;OKLAHOMA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;)</U></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">23</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">) ss.</TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">24</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="line-height: 115%">COUNTY OF <U> TULSA )</U></FONT></TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">25</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">26</TD>
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">The foregoing instrument&nbsp; was acknowledged before me by</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify">OTTO F. DUFFIELD</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">27</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">28</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">as</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">MANAGER</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">29</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">30</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">of Cortez Exploration,&nbsp; LLC.</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">31</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">32</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 27pt"><FONT STYLE="line-height: 115%">This <U> 4TH</U> day of <U> FEBRUARY </U>, 2010.</FONT></TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">33</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">34</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">WITNESS my hand and official seal.</TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">35</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">36</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">My Commission Expires:</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">37</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">38</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">DECEMBER 4, 2010&nbsp;&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">/s/ Gale L. Staton</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">39</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">Notary Public</TD></TR>
<TR>
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    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">41</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">UNIT OPERATOR SIGNATURE PAGE FOR THE</TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">42</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">PARADISE UNIT AGREEMENT</TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">43</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">NYE AND MINERAL COUNTIES, NEVADA</TD>
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<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">44</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">45</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">46</TD>
    <TD NOWRAP COLSPAN="3" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">17</TD></TR>
<TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 27%">&nbsp;</TD>
    <TD STYLE="width: 23%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 42%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt; text-align: center"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

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    <TD NOWRAP COLSPAN="11" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">EXHIBIT &ldquo;B&rdquo;</TD></TR>
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<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">NUMBER</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">SERIAL NO.</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">BASIC</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">LESSEE</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">TRACT</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">DESCRIPTION</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">OF</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&amp; EXPIRATION</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">ROYALTY</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">OF</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">OVERRIDING</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">WORKING</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">NO.</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">OF LAND</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">ACRES</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">DATE OF LEASE</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">AND %</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">RECORD</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">AND %</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">ROYALTY</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">AND %</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">INTEREST</TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">AND %</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R34E&nbsp;&nbsp;MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">3,840.56</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-59901</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.S.A.-ALL (12.5% ROYALTY)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">85.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">O. F. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">85.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 1: Lots 1, 2, 3, 4, S/2N/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Frances A. Duffield Johnson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">S/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">EFFECTIVE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Valorie S. Duffield Reynolds</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 12: All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9/1/1995</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James P. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De. Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 13:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield II</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 24: All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 25:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/28/2010*</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">*Extended by the termination of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 36: All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Cobble Cuesta Unit Agreement</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E&nbsp; MDM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,440.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-60807</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.S.A.-ALL (12.5% ROYALTY)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">85.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">O. F. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">85.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 10:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Frances A. Duffield Johnson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 11:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Valorie S. Duffield Reynolds</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 16:&nbsp; NW/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">6/1/1997</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James P. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De. Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield II</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/28/2010*</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">*Extended by the termination of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Shawn L. Messinger</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">0.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Cobble Cuesta Unit Agreement</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Elizabeth M. Murphy</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">0.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">3</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;T12N-R34E&nbsp;MDM&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">7,040.17</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-60812</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.S.A.-ALL (12.5% ROYALTY)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">85.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">O. F. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">85.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2&nbsp; Lots 1, 2, S/2NE/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Frances A. Duffield Johnson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">SE/4&nbsp;&nbsp; &nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Valorie S. Duffield Reynolds</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 10:&nbsp; E/2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">6/1/1996</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James P. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De. Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp;&nbsp; 11:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield II</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 14:&nbsp; All&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">*Extended by the termination of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 15:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/2/2010*</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Cobble Cuesta Unit Agreement</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 21:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 22:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 23:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 26:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 27:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 28:&nbsp; NE/4, NE/4NW/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">S/2SW/4,&nbsp; E/2SE/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 33:&nbsp; E/2NE/4,&nbsp; NW/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 34:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 35:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">4</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp; T13N-R35E&nbsp; MDM&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">960.00</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-60815</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">85.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">O. F. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">85.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 5pt">Sec.&nbsp; 17&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Frances A. Duffield Johnson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-indent: 5pt">Sec.&nbsp; 19&nbsp; E/2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill&nbsp; Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Valorie S. Duffield Reynolds</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">6/1/1996</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punta De Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James P. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De. Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield II</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&bull;Extended by the termination of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11-28-2010.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Cobble Cuesta Unit Agreement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">5</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E&nbsp; MDM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-60816</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">85.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">O. F. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">85.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 2:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Frances A. Duffield Johnson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 3:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill&nbsp; Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Valorie S. Duffield Reynolds</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 4:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">6/1/1996</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punta De Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James P. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De. Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 9:&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield II</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&bull;Extended by the termination of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11-28-2010.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Cobble Cuesta Unit Agreement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">6</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,908.16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-60885</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">85.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">O. F. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">85.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 29&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">10.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Frances A. Duffield Johnson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 30&nbsp; Lots 1, 2, 3, 4, E/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill&nbsp; Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Valorie S. Duffield Reynolds</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Windmill Oil &amp; Gas LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.50%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">E/2W/2&nbsp; (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9/1/1995</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punta De Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James P. Duffield</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De. Luz, LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 31&nbsp; Lots 1, 2, 3, 4, E/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Otto F. Duffield II</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">E/2W/2&nbsp;&nbsp; (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&bull;Extended by the termination of</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/28/2010*</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">the Cobble Cuesta Unit Agreement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">7.50%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">7</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R34E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">319.43</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-82193</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Coretez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp; 2&nbsp; Lots 3, 4, S/2NW/4,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">SW/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">8/31/2016</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">8</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R34E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,284.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-82185</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">98.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Coretez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">98.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 25&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 36&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">8/31/2016</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">640.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-82186</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">98.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Coretez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">98.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp;&nbsp; 8. All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">8/31/2016</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;T13N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">220.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-82187</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">98.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Coretez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">98.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 19. W/2 (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">2.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Punto De Luz</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTAL</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">9/1/2006</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">8/31/2016</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2,538.67</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-85867</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp; 5&nbsp; Lots 1, 2, 3, 4, S/2N/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">S/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp; 6&nbsp; Lots 1, 2, 3, 4, 5, 6, 7,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2008</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">S/2NE/4, SE/4NW/4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">E/2SW/4, SE/4 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp;&nbsp; 7&nbsp; Lots 1, 2, 3, 4, E/2W/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2018</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">E/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp;&nbsp; 8&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">12</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2,544.24</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-85871</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp; 17. All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp; 18&nbsp; Lots 1, 2, 3, 4, E/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">E/2W/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2008</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 19:&nbsp; Lots 1,2,3,4, E/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">E/2W/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 20&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2018</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">13</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2,400.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-85873</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 16&nbsp; E/2, SW/4,&nbsp; (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 20&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 21:&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2008</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 22: All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2018</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">14</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2,461.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-85876</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Alfred H. Pekarek</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">1.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Empire Petroleum Corporation</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 29&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec. 30&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 31&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2008</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 32&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2018</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">15</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-86963</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James Henry Henderson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James Henry Henderson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp;&nbsp; 9&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp; 10&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">12/1/2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/30/2019</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">16</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-86965</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James Henry Henderson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">James Henry Henderson</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp; 16&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 21&nbsp; All</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">12/1/2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/30/2019</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">17</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,277.16</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-86972</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Nancy Fagen</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Nancy Fagen</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp;&nbsp; 3&nbsp; Lots 1, 2, 3, 4, S/2N/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">S/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp;&nbsp; 4&nbsp; Lots 1, 2, 3, 4, S/2N/2,</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">S/2 (All)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2019</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">18</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,920.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-86998</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 14&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp;&nbsp; 15&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 23&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2019</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">19</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">1,280.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-86999</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 26&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 35&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2019</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">20</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T13N-R35E&nbsp; MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">2,560.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">N-87000</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Cortez Exploration LLC</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 27&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 28&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Effective</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 33&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">11/1/2009</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec&nbsp; 34&nbsp; All (Protracted)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Expires</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">10/31/2019</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">21</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">T12N-R34E MOM</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">320.00</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unleased</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">U.SA- All&nbsp; (12.5% royalty)</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unleased</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">100.00%</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">NONE</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Unleased</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100.00%</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">Sec.&nbsp; 10&nbsp; W/2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
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    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">FEDERAL&nbsp; TRACTS</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTALING</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">40,073.39 ACRES</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">OR</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">100% OF UNIT AREA</TD>
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    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TRACTS</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">TOTALING</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">40073.39 ACRES</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">IN</TD>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">UNIT AREA</TD>
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    <TD NOWRAP COLSPAN="10" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">NOTE: PENDING ASSIGNMENTS ON TRACTS 1-20&nbsp; WILL&nbsp; RESULT IN AN OWNERSHIP OF:&nbsp;&nbsp; EMPIRE PETROLEUM CORPORATION, 57%;&nbsp; CORTEZ EXPLORATION LLC,&nbsp; 38.5%; WINDMILL OIL &amp; GAS LLC, 2.5%,&nbsp; AND,</TD>
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        <P STYLE="font: 5pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>
        <P STYLE="font: 5pt Calibri, Halvetica, Sans-Serif; margin: 0"><FONT STYLE="line-height: 115%">PUNTO DE LUZ, LLC, 2%</FONT></P>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.8pt 0 0 5.1pt; text-align: center"><B>EXHIBIT &ldquo;C&rdquo;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.8pt 0 0 5.1pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.8pt 0 0 5.1pt; text-align: center"><B>NON-UNIT ACREAGE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.8pt 0 0 5.1pt; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt">LEASE SERIAL</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">EFFECTIVE</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 303px; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 55px; line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1.5pt solid; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">NUMBER</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1.5pt solid; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">DATE</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1.5pt solid; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ACREAGE</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">DESCRIPTION</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60885</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/1995</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4,480.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 13: All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 23:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 24: W/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 26:&nbsp; NW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 27:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 28:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 32:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 33:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 34:&nbsp; NW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60812</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1996</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,844.99</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye &amp; Mineral</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 1:&nbsp; Lots 3-4, S/2NW/4, SW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 2:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 3:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60816</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1996</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3,520.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 1:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 12:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 13:&nbsp; E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 18:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 19:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 29:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60792</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1996</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5,461.37</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Lots 1 &amp; 2, S/2NE/4, E/2SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; Lots 1-7, SW/4NE/4, SE/4NW/4, E/2SW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 7:&nbsp; Lots 1-4, E/2W/2, SW/4NE/4, SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 8:&nbsp; S/2S/2, N/2SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 17:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 18:&nbsp; Lots 1-4, E/2W/2, E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 19:&nbsp; Lots 1-4, E/2W/2, E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 20:&nbsp; N/2NE/4, NW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 30:&nbsp; Lots 1-4, E/2W/2, E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 31:&nbsp; Lots 1-4, E/2W/2, E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60791</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/1996</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3,200.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp; &nbsp;&nbsp;Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 24:&nbsp; E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 25:&nbsp; ALL</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 26:&nbsp; SW/4, E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 34:&nbsp; SW/4, E/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 35:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 36:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60793</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1997</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,920.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 30:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 31:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 32:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60808</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1997</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,553.43</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 1:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 2:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 3:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; Lots 1-7, S/2NE/4, SE/4NW/4, E/2SW/4, SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60807</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1997</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">320.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 13:&nbsp; W/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-60806</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">6/1/1997</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,235.70</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 1:&nbsp; Lots 1 &amp; 2, S/2NE/4, SE/4 (E/2)</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Lots 1-4, S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; Lots 1-7, S/2NE/4, SE/4NW/4, E/2SW/4, SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82180</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,274.33</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Mineral</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Lots 1-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; Lots 1-7</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; S/2NE/4, SE/4NW/4, E/2SW/4, SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82181</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,560.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Mineral</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 9:&nbsp;&nbsp;&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 10:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 15:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 16:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82182</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,560.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Mineral</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 11:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 12:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 13:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 14:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82183</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,279.04</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 3:&nbsp; Lots 1-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 3:&nbsp; S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; Lots 1-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82184</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">680.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Mineral</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 28:&nbsp; W/2NW/4, SE/4NW/4, N/2SW/4, W/2SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 33:&nbsp; W/2NE/4, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82185</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">643.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 34E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 24:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82186</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,715.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 7:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82187</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">540.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 18:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82188</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,916.92</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; Lots 1, 3-12</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp; S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Lots 1-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; S/2N/2, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 7:&nbsp; Lots 1-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 7:&nbsp; E/2, E/2W/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82189</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,476.04</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 8:&nbsp;&nbsp;&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 9:&nbsp;&nbsp;&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 17:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 18:&nbsp; Lots 1-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 18:&nbsp; NE/4, E/2W/2, E/2SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82190</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">640.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 11N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 16:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82191</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,119.60</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Lots 3-4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; S/2NW/4, SW/4, W/2SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; SE/4NE/4, SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 7:&nbsp; N/2NE/4, SE/4NE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 8:&nbsp; N/2, N/2SW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82192</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,280.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 9:&nbsp;&nbsp;&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 16:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82446</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">10/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,000.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 20:&nbsp; S/2NE/4, S/2</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 21:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 28:&nbsp; W/2NE/4, NW/4, W/2SW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 29:&nbsp; All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82194</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">730.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 12N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 32:&nbsp; N/2, SW/4, W/2SE/4, SE/4SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 32:&nbsp; W/2NE/4, SE/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 33:&nbsp; S/2SW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 33:&nbsp; W/2NE/4SW/4, SE/4NE/4SW/4</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82195</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,560.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 4:&nbsp;&nbsp;&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 9:&nbsp;&nbsp;&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 16:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 17:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82196</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,560.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 5:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 6:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 7:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 8:&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-82197</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">9/1/2006</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,920.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 36E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 21:&nbsp; Prot All (Excl Me Patent)</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 28:&nbsp; Prot All (Excl Me Patent)</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 33:&nbsp; Prot All (Excl Me Patent)</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-86998</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">11/01/2009</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">640.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 24:&nbsp;&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">N-86999</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">11/01/2009</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,280.00</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Twp: 13N&nbsp;&nbsp;&nbsp;&nbsp; Rge: 35E&nbsp;&nbsp;&nbsp;&nbsp; Meridian:&nbsp; MDM&nbsp;&nbsp;&nbsp;&nbsp; State:&nbsp; Nevada&nbsp;&nbsp;&nbsp;&nbsp; County:&nbsp; Nye</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 25:&nbsp;&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section 36:&nbsp;&nbsp; Prot All</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">TOTAL NON-UNIT ACREAGE</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt">
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: right"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: right"><FONT STYLE="line-height: 115%"><B><U>56,909.42</U></B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; color: red">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt">TOTAL UNIT ACREAGE</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt">
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: right"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: right"><FONT STYLE="line-height: 115%"><B>35,916.23</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; color: red">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt">PARADISE UNIT ACREAGE TOTAL</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="line-height: 115%; font-size: 11pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">EMPIRE, ET AL</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">35,916,23</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">JAMES HENDERSON</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2,560.00</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">NANCY FAGEN</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1,277.16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">UNLEASED</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">320.00</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt">TOTAL UNIT ACREAGE</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: right">40,073.39</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 2.7pt; padding-left: 2.7pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">February 1980 (Pages 2, 3, 4,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>6, 7,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>8,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>9, 10,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>10A, and 16 Revised <FONT STYLE="letter-spacing: 0.15pt"> </FONT>1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.45pt 31pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.15pt 0 0; text-align: center">EXHIBIT &quot;D&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.65pt 0 0; text-align: center"><FONT STYLE="line-height: 178%"><B>UNIT
OPERATING AGREEMENT</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.65pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="line-height: 178%"><B>PARADISE
UNIT AREA</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center"><FONT STYLE="line-height: 187%"><B>COUNTIES
OF<FONT STYLE="letter-spacing: 0.15pt"> </FONT>MINERAL AND NYE</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="line-height: 187%"><B>STATE
OF NEVADA</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">TABLE OF CONTENTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Preliminary  Recitals</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 75%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE I-DEFINITIONS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -1pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Definitions</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 2-EXHIBITS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Exhibits.</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 3-INITIAL TEST WELL</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Location</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Costs of Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 4-SUBSEQUENT TEST WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Right to Drill</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 5-ESTABLISHMENT, REVISION, AND CONSOLIDATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">OF PARTICIPATING AREAS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Objections to Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Revised Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Rejection of Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Consolidation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 6-APPORTIONMENT OF COSTS AND OWNERSHIP AND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">DISPOSITION OF PRODUCTION AND PROPERTY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Apportionment and Ownership Within Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Costs</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Production</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Property</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Ownership and Costs Outside Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; When All Drilling Block Parties Participate</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; When Less Than All Drilling Block Parties Participate</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Cost Liability of Subsequently Created Interests</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Taking in Kind</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Failure to Take in Kind</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Surplus Materials and Equipment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 7-PLANS OF DEVELOPMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Submittal of Plans</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Objections to Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Revised Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Rejection of Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Notice of Approval or Disapproval</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Supplemental Plans</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Cessation of Opers Under the Plan</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">i</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 8-DEVELOPMENT WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Purpose of Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Approval Required</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Notice of Proposed Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Response to Notice</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Notice of Election to Proceed</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Subsequent Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">F.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">G.&nbsp; Rights and Obligations of Drilling Party and Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Attempted Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Notice by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Right to Attempt Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Time and Manner of Initiating Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">F.&nbsp; Rights and Obligations of Completing Party and Non-Completing Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">G.&nbsp; Notice Prior to Plugging</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 9-EXPLORATORY WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Purpose and Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Notice of Proposed Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Basis of Participation</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Exclusion of Land From Proposed Drilling Block</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Preliminary Notice to Join in Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Notice of Election to Proceed</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">F.&nbsp; Subsequent Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">G.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">H.&nbsp; Rights and Obligations of Drilling Party and Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Attempted Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Notice by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Right to Attempt Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">6</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Time and Manner of initiating Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">F.&nbsp; Rights and Obligations of Completing Party and Non-Completing Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">G.&nbsp; Notice Prior to Plugging</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 10-REQUIRED WELLS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Definition</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Election to Drill</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Alternatives to Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Compensatory Royalties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Contraction</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Termination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Required Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Development Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Exploratory Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">7</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 11-DEEPENING, PLUGGING BACK,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">AND ABANDONMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Attempted Deepening or Plugging Back</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Notice by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Right to Initiate Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Right to Participate</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Time and Manner of Initiating Proposal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">F.&nbsp; Effect of Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">G.&nbsp; Rights and Obligations of Participating party and Non-Participating Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Deepening or Plugging Back to Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Conflicts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Attempted Completion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Abandonment of Producing Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Consent Required</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Abandonment Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ii</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Rights and Obligations of Non-Abandoning Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Option to Repurchase Materials</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Deepening or Plugging Back Abandoned Producing Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 12-RIGHTS AND OBLIGATIONS OF DRILLING</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">PARTY AND NON-DRILLING PARTY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Use of Terms</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Scope of Article</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Relinquishment of Interest by Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">9</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Reversion of Relinquished Interest</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Effect of Reversion</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Rights and Obligations of Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Accounting Due Non-Drilling Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Stand-By Rig Time</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12.9</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Subsequently Created Lease Burdens</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">10A</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 13-ADJUSTMENT ON ESTABLISHMENT OR CHANGE OF</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">PARTICIPATING AREA</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">When Adjustment Made</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Definitions</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; &ldquo;Usable well&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; &ldquo;Intangible value&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; &ldquo;Tangible property&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; &ldquo;Value&rdquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Method of Adjustment on Establishment or Enlargement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Method of Adjustment on Contraction</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">11</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Ownership of Wells and Tangible Property</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Relinquished Interest of Non-Drilling Parties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 14-SUPERVISION OF OERATIONS BY PARTIES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Right of Supervision</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Voting Control</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Meetings</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Action Without Meeting</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Representatives</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Audits</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Extraneous Projects</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 15-UNIT OPERATOR&rsquo;S POWERS AND RIGHTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">In General</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Employees</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Non-Liability</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Force Majeure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">13</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Lien</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Advances</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Use of Unit Operator&rsquo;s Drilling Equipment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Rights as Party</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 16-UNIT OPERATOR&rsquo;S DUTIES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Specific Duties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Drilling of Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Compliance with Laws and Agreements</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Consultation with Parties</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Payment of Costs</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">14</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Records</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">F.&nbsp; Information</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">G.&nbsp; Access to Unit Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Insurance</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Unit Operator&rsquo;s</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Contractors&rsquo;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Automotive Equipment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Non-Discrimination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Drilling Contracts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Uninsured Losses</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 17-LIMITATIONS ON UNIT OPERATOR</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Specific Limitations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">iii</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Change in Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Limit on Expenditures</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Partial Relinquishment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">15</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Settlement of Claims</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">E.&nbsp; Determinations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 18-TITLES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Representation of Ownership</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Title Papers to be Furnished</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">A.&nbsp; Lease Papers</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">B.&nbsp; Title Papers for Initial Test Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">C.&nbsp; Title Papers for Subsequent Wells</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">D.&nbsp; Title Papers on Establishment or Enlargement of a Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Title Examination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Option for Additional Title Examination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">16</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Approval of Titles Prior to Drilling</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.6</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Approval of Titles Prior to Inclusion of Land in a Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.7</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Failure of Title to Committed Working Interest</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.8</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Failure of Title to Committed Working Interest After Approval</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.9</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Joinder by True Owner</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18.10</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Title Challenge</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 19-UNLEASED INTERESTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Treated as Leased</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Execution of Lease</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">17</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 20-RENTALS AND LEASE BURDENS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Rentals</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Lease Burdens</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Loss of Committed Working Interest</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 21-TAXES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Payment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Apportionment</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Transfer of Interests</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21.4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Notices and Returns</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 22-WITHDRAWAL OF TRACTS AND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">UNCOMMITTED INTERESTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">22.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Right of Withdrawal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">22.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Non-Withdrawal</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 23-COMPENSATORY ROYALTIES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">23.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Notice</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">23.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Demand for Failure to Drill a Development Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">18</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">23.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Demand for Failure to Drill a Well Other Than a Development Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 24-SEPARATE MEASUREMENT AND SALVAGE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">24.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Separate Measurement</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">24.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Salvaged Materials</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 25-ENHANCED RECOVERY AND</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">PRESSURE MAINTENANCE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">25.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Consent Required</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">25.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Above-Ground Facilities</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 26-TRANSFERS OF INTEREST</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">26.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Sale by Unit Operator</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">26.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Assumption of Obligations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">26.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Effective Date</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 27-RELEASE FROM OBLIGATIONS AND SURRENDER</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">27.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Surrender or Release Within Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">19</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">27.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Procedure on Surrender or Release Outside Participating Area</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">27.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Accrued Obligations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">iv</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">Form 2 (Divided Interest)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: justify">February, 1980</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 28-LIABILITY</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">28.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Liability</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">28.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">No Partnership Created</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">28.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Election</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 29-NOTICES</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">29.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Giving and Receipt</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">29.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Addresses</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 30-EXECUTION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">30.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Counterparts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">30.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Ratification</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">20</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">30.3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Effect of Signature</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 31-SUCCESSORS AND ASSIGNS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">31.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Covenants</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 32-HEADINGS FOR CONVENIENCE</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">32.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Headings</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 33-RIGHT OF APPEAL</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">33.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Not Waived</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 34-SUBSEQUENT JOINDER</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">34.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Prior to the Commencement of Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">34.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">After Commencement of Operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 35-CARRIED INTERESTS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">35.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Treatment of</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 36-EFFECTIVE DATE AND TERM</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">36.1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Effective Date and Term</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Section</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">36.2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Effective Termination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">21</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">ARTICLE 37-OTHER PROVISIONS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center">EXHIBITS</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">1</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Accounting Procedure</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">2</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Initial Test Well</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">3</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Insurance</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">4</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Non-Discrimination</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Exhibit</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">5</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Oil and Gas Lease</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD></TR>
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    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: justify">NOTE:&nbsp; Attention is called to pages 1, 6, 10, 11, 13, 14, 15, 16, and 19, which contain blanks to be filled in.</TD></TR>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0">ROCKY MOUNTAIN UNIT OPERATING<FONT STYLE="letter-spacing: 0.3pt">
</FONT>AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0">Form 2 (Divided<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0">February 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.7pt 0 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>UNIT OPERATING
AGREEMENT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>PARADISE UNIT
AREA</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">THIS AGREEMENT
made as<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of the <U> </U> day of <U> </U>, 2010, by and among the parties who by and among
the parties who execute or ratify this Agreement or a counterpart hereof,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>WITNESSETH:</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">WHEREAS, the Parties
have entered into that certain UNIT AGREEMENT FOR THE DEVELOPMENT AND OPER<FONT STYLE="letter-spacing: 0.15pt">A</FONT>TION OF
THE PARADISE AREA, Counties of <U> Mineral and Nye </U> State of <U> Nevada </U>, dated as of the <U> </U> day of <U> </U>, 2010,
and hereinafter referred to as the &ldquo;Unit Agreement&rdquo;, covering the lands described in EXHIBIT B thereto attached, which
lands are referred to in the Unit Agreement and in this Agreement as the &ldquo;Unit Area&rdquo;; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">WHEREAS,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Parties enter into this Agreement pursuant to Section 7<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Unit Agreement,</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">NOW, THEREFORE,
in consideration of the covenants herein contained, it is agreed as follows:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>ARTICLE 1</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in"><B>DEFINITIONS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">1.1 Definitions.
The definitions contained in the Unit Agreement are adopted <FONT STYLE="letter-spacing: 0.1pt"> </FONT>for all purposes of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>this Agreement. In addition, each term listed below shall have the meaning stated therefor, whenever used in this Agreement:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Unit Operator&quot;
means <U> Cortez Exploration LLC </U> and its successors, as the Unit Operator designated in accordance with <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Unit Agreement, acting in that <FONT STYLE="letter-spacing: 0.3pt"> </FONT>capacity and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>not as an owner of a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Party&quot;
means a party<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to this Agreement, including the Party acting as Unit Operator when acting
as an owner of a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Drilling
Party&quot;, &quot;Completing Party&quot;, and &quot;Participating Party&quot; all mean <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Party or Parties obligated to bear Costs incurred in the Drilling, Completing, or Deepening or Plugging Back, respectively, of
a well at the commencement of such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Non-Drilling<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party&quot;, &quot;Non-Completing Party&quot;, and &quot;Non-Participating<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party&quot;
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all mean the Party or Parties who had the optional right to participate in the Drilling,
Completing, or Deepening or Plugging Back, respectively, of a well and who elected not to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate
therein.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Committed
Working Interest&quot; means a working interest which is shown on Exhibit B <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to the
Unit Agreement as owned by a Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and which is committed to the Unit Agreement. Whenever
reference is made to a Party &quot;in&quot; or &quot;within&quot; the Unit Area, a participating area, or other area designated
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>pursuant to this Agreement,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such reference
shall mean a Party owning <FONT STYLE="letter-spacing: 0.3pt"> </FONT>a Committed Working Interest in lands within such area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Acreage Basis&quot;,
when used to describe the basis of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participation by the Parties within the Unit Area,
a participating area. or other area designated pursuant to this Agreement in voting, Costs, or Production, means participation
by each such Party <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in the proportion that the acreage of its Committed Working Interests
in such area bears to the total acreage of the Committed Working Interests of all such Parties therein. For the purposes of this
definition, (a) the acreage of the Committed Working Interest in a tract within <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Unit Area shall be the acreage of such tract as set forth in Exhibit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>B to the Unit
Agreement, and (b) if there are two or more undivided Committed Working Interests in a tract, there shall be apportioned to each
such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working Interest that proportion of the acreage of the tract that such
Committed Working Interest bears to the entire Committed Working Interest in the tract.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Production&quot;
means all unitized substances produced and saved from the Unit Area except so much thereof as is used in the conduct <FONT STYLE="letter-spacing: 0.1pt">
</FONT>of operations under the Unit Agreement and this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Costs&quot;
means all costs and expenses incurred in the development and operation of the Unit Area pursuant to this Agreement or the Unit
Agreement and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all other <FONT STYLE="letter-spacing: 0.15pt"> </FONT>expenses that
are herein made <FONT STYLE="letter-spacing: 0.1pt"> </FONT>chargeable as Costs, determined in accordance with the Accounting Procedure
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>attached hereto as Exhibit 1, which shall govern in all matters covered thereby, except
that in the event of an inconsistency between said Accounting Procedure and this Agreement, this Agreement<FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall control.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Lease <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Burdens&quot; means the royalty <FONT STYLE="letter-spacing: 0.3pt"> </FONT>reserved to the lessor in an oil and gas lease,
an overriding royalty, a production payment, and any similar burden, but does not include a carried working interest, a net profits
interest, or any other interest <FONT STYLE="letter-spacing: 0.15pt"> </FONT>which is payable out of profits.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Drill&quot;<FONT STYLE="letter-spacing: 0.05pt">
</FONT>means to perform all operations reasonably necessary and incident to the drilling <FONT STYLE="letter-spacing: 0.05pt">
</FONT>of a well to its projected depth, including preparation of roads and drill <FONT STYLE="letter-spacing: 0.1pt"> </FONT>site,
testing, and logging, but <FONT STYLE="letter-spacing: 0.1pt"> </FONT>excluding Completion operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Complete&quot;
means to perform all operations <FONT STYLE="letter-spacing: 0.1pt"> </FONT>reasonably necessary and incident to the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>completion of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a well, commencing with <FONT STYLE="letter-spacing: 0.15pt">
</FONT>the running and setting of the production pipe <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and, if productive of unitized
substances,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>equipping through the wellhead connections, or plugging and abandoning,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>if dry.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 0.25in">&quot;Equip&quot;
means to perform all operations reasonably necessary<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and incident to the equipping of
a well for production beyond the wellhead connections.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center">1</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify">February, 1980 (Page 2 Revised
1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Deepen&quot;<FONT STYLE="letter-spacing: -0.4pt">
</FONT>or &quot;Plug Back&quot; means to perform all operations<FONT STYLE="letter-spacing: 0.3pt"> </FONT>reasonably necessary<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and incident to Drilling<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a well below its original projected depth or plugging
back a well to a depth above its original projected depth, testing,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>logging, but <FONT STYLE="letter-spacing: 0.15pt"> </FONT>excluding Completing and Equipping operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Initial<FONT STYLE="letter-spacing: -0.4pt">
</FONT>Test Well&quot; means the test well or wells provided for<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Section 9<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of the Unit Agreement<FONT STYLE="letter-spacing: -0.3pt"> </FONT>and
in Exhibit 2 attached hereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Subsequent
Test <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Well&quot; means a test well Drilled after the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Drilling of the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Initial Test <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Well
and before discovery of unitized substances<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Paying Quantities in the Unit Area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Development
Well&quot; means a well Drilled within a participating<FONT STYLE="letter-spacing: -0.25pt"> </FONT>area<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and projected to the pool<FONT STYLE="letter-spacing: -0.15pt"> </FONT>or zone for which the participating area was established.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&ldquo;Exploratory
Well&quot; <FONT STYLE="letter-spacing: 0.1pt"> </FONT>means a well (other than a Development Well) Drilled after discovery of
unitized substances in Paying Quantities in the Unit Area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Approval
of the Parties&quot;<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or &quot;Direction of the Parties&quot; means an approval, authorization,
or direction which receives the affirmative vote of the Parties entitled to <FONT STYLE="letter-spacing: 0.3pt"> </FONT>vote on
the giving of such Approval or Direction, as specified in Section 14.2.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Salvage Value&quot;
of a well<FONT STYLE="letter-spacing: 0.05pt"> </FONT>means the value of the<FONT STYLE="letter-spacing: -0.35pt"> </FONT>materials
and equipment<FONT STYLE="letter-spacing: -0.3pt"> </FONT>in or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>appurtenant<FONT STYLE="letter-spacing: -0.5pt">
</FONT>to the well, determined in accordance with <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Exhibit 1, less the reasonably estimated
Costs of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>salvaging<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the same and plugging
and abandoning the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Appropriate
Agency&quot; means the agency designated<FONT STYLE="letter-spacing: -0.2pt"> </FONT>in the applicable Federal<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Regulations, including any person acting under the authority thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&quot;Paying Quantities&quot;
means paying quantities as defined in Section 9 of the Unit<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Other Definitions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 2</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EXHIBITS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">2.1<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Exhibits.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>The following Exhibits are incorporated herein by reference:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 1. Accounting
Procedure.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 2. Initial
Test Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 3. Insurance.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 4. Non-Discrimination.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Exhibit 5. Oil
and Gas Lease.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">In the event of
a conflict or<FONT STYLE="letter-spacing: -0.05pt"> </FONT>inconsistency between <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
provisions of an Exhibit<FONT STYLE="letter-spacing: -0.3pt"> </FONT>and the provisions of<FONT STYLE="letter-spacing: -0.35pt">
</FONT>this Agreement, the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>provisions of this <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Agreement shall control.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 3</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>INITIAL TEST WELL</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">3.1 Location.<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall begin to Drill the Initial<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Test Well within the time required by Section 9 of the Unit Agreement, or any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>extension
thereof, at the location specified <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in Exhibit 2.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">3.2 Costs of Drilling.<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Subject to the investment adjustment provisions of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Article 13, the Costs of
Drilling the Initial Test Well shall be shared by the Parties in the manner and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in
the proportions specified in Exhibit 2.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 4</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUBSEQUENT TEST WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">4.1 Right <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to Drill. The Drilling of any Subsequent Test Well shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be <FONT STYLE="letter-spacing: 0.05pt">
</FONT>upon such terms and conditions as may be<FONT STYLE="letter-spacing: -0.45pt"> </FONT>agreed to by<FONT STYLE="letter-spacing: -0.35pt">
</FONT>the Parties;<FONT STYLE="letter-spacing: -0.15pt"> </FONT>provided, however, that in the absence of<FONT STYLE="letter-spacing: -0.2pt">
</FONT>agreement, such well may be Drilled under the provisions of Article 9.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 5</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ESTABLISHMENT,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>REVISION, AND CONSOLIDATION OF PARTICIPATING AREAS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.1 Proposal. Unit
Operator shall initiate each proposal for the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>establishment or revision of a participating<FONT STYLE="letter-spacing: -0.3pt">
</FONT>area by<FONT STYLE="letter-spacing: -0.2pt"> </FONT>submitting<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the proposal
in writing<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>each Party <FONT STYLE="letter-spacing: 0.3pt">
</FONT>at least twenty<FONT STYLE="letter-spacing: -0.2pt"> </FONT>(20)<FONT STYLE="letter-spacing: -0.25pt"> </FONT>days before
filing the same with the Appropriate <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Agency.<FONT STYLE="letter-spacing: 0.3pt"> </FONT>The
date of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>proposed filing must be shown in the proposal. If,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>within <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the 20-day period above provided, the proposal receives the Approval
of the Parties within the proposed participating area or no<FONT STYLE="letter-spacing: -0.45pt"> </FONT>written objections are
received, then such proposal shall be<FONT STYLE="letter-spacing: -0.45pt"> </FONT>filed on the date <FONT STYLE="letter-spacing: 0.3pt">
</FONT>specified.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.2 Objections
to Proposal. Prior to the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>proposed filing date any Party may submit to all other Parties
written objections to such proposal. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>If, despite such objections, the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>proposal receives <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Approval of the Parties<FONT STYLE="letter-spacing: -0.3pt">
</FONT>within <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the proposed participating<FONT STYLE="letter-spacing: -0.5pt"> </FONT>area,
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>then the Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>making the objections may
renew the same before the Appropriate Agency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.3 Revised Proposal.
If the proposal does not receive the Approval of the Parties within the proposed participating<FONT STYLE="letter-spacing: -0.5pt">
</FONT>area, and Unit Operator<FONT STYLE="letter-spacing: -0.3pt"> </FONT>receives written objections thereto,<FONT STYLE="letter-spacing: -0.3pt">
</FONT>then Unit Operator shall submit to the Parties a revised proposal, taking into account the objections made to the first
proposal. If no<FONT STYLE="letter-spacing: -0.1pt"> </FONT>proposal receives the Approval of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>the Parties within sixty (60)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">2</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 20.5pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING
AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 20.5pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980<FONT STYLE="letter-spacing: -0.05pt">
</FONT>(Page<FONT STYLE="letter-spacing: -0.05pt"> </FONT>3 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 20.5pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">days from<FONT STYLE="letter-spacing: 0.1pt">
</FONT>submission of the first proposal, then Unit Operator<FONT STYLE="letter-spacing: -0.35pt"> </FONT>shall file<FONT STYLE="letter-spacing: 0.15pt">
</FONT>with the Appropriate Agency a proposal reflecting as nearly as <FONT STYLE="letter-spacing: 0.15pt"> </FONT>practicable
the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>various views expressed by the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.4 Rejection<FONT STYLE="letter-spacing: -0.1pt">
</FONT>of Proposal.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>If<FONT STYLE="letter-spacing: -0.25pt"> </FONT>a proposal filed
by Unit Operator<FONT STYLE="letter-spacing: -0.3pt"> </FONT>as above provided is<FONT STYLE="letter-spacing: 0.15pt"> </FONT>rejected
by<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Appropriate Agency, Unit Operator shall initiate a new proposal<FONT STYLE="letter-spacing: 0.1pt">
</FONT>in the same manner as provided in Section 5.1,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>and the procedure with respect
thereto shall be<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the same as in the case<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>an initial proposal.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">5.5 Consolidation.
Two or more participating areas may be combined as provided in the Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 6</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>APPORTIONMENT OF<FONT STYLE="letter-spacing: 0.1pt">
</FONT>COSTS AND OWNERSHIP AND DISPOSITION OF<FONT STYLE="letter-spacing: 0.05pt"> </FONT>PRODUCTION AND PROPERTY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.1 Apportionment
and Ownership Within Participating<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Area. Except as otherwise provided in Articles 8,
9, 11, and 12:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Costs. All Costs
incurred<FONT STYLE="letter-spacing: -0.05pt"> </FONT>in the development<FONT STYLE="letter-spacing: -0.35pt"> </FONT>and operation<FONT STYLE="letter-spacing: -0.1pt">
</FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>a participating area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for or
in connection with production<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of unitized substances<FONT STYLE="letter-spacing: -0.5pt">
</FONT>from any pool<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or zone for which such participating area is established<FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall be borne by the Parties within such participating area on an Acreage Basis, determined as of the time such Costs <FONT STYLE="letter-spacing: 0.1pt">
</FONT>are incurred.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Production.
All Production<FONT STYLE="letter-spacing: -0.3pt"> </FONT>from a participating area shall<FONT STYLE="letter-spacing: 0.1pt">
</FONT>be allocated<FONT STYLE="letter-spacing: -0.5pt"> </FONT>on<FONT STYLE="letter-spacing: 0.05pt"> </FONT>an Acreage Basis
to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the tracts of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>unitized land within
such participating area.<FONT STYLE="letter-spacing: -0.15pt"> </FONT>That portion of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>such
Production which is allocated to any such tract shall be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>owned by the Party or Parties
having Committed<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Working Interest<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or Interests
therein in the same manner<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and subject<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to
the same conditions<FONT STYLE="letter-spacing: -0.2pt"> </FONT>as if actually produced from such tract through<FONT STYLE="letter-spacing: -0.15pt">
</FONT>a well thereon<FONT STYLE="letter-spacing: -0.15pt"> </FONT>and as if this Agreement and the Unit<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Agreement had not been executed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Property.<FONT STYLE="letter-spacing: -0.45pt">
</FONT>All materials,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>equipment,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>and
other property, whether real or personal, the cost of which is chargeable as Costs and which have been acquired<FONT STYLE="letter-spacing: -0.2pt">
</FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>connection<FONT STYLE="letter-spacing: -0.3pt"> </FONT>with the development
or operation of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>a participating area,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>shall<FONT STYLE="letter-spacing: -0.1pt">
</FONT>be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>owned by<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the Parties within
such participating area <FONT STYLE="letter-spacing: 0.1pt"> </FONT>on<FONT STYLE="letter-spacing: 0.05pt"> </FONT>an Acreage Basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.2 Ownership and
Costs Outside<FONT STYLE="letter-spacing: -0.45pt"> </FONT>Participating Area. If<FONT STYLE="letter-spacing: -0.3pt"> </FONT>a
well Drilled (including<FONT STYLE="letter-spacing: -0.45pt"> </FONT>the Deepening or Plugging<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Back thereof) <FONT STYLE="letter-spacing: 0.3pt"> </FONT>within a Drilling<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Block
established under the provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>either
Article 9 or Article <FONT STYLE="letter-spacing: 0.15pt"> </FONT>10 is completed as a producer but not included within a participating
area, then the following provisions shall be applicable:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. When All Drilling<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Block<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Parties<FONT STYLE="letter-spacing: -0.25pt"> </FONT>Participate. If<FONT STYLE="letter-spacing: 0.15pt">
</FONT>all Parties<FONT STYLE="letter-spacing: -0.05pt"> </FONT>within the Drilling<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Block
shall have elected to participate in Drilling and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Completing<FONT STYLE="letter-spacing: 0.15pt">
</FONT>such well, then said well, the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Production therefrom,<FONT STYLE="letter-spacing: -0.35pt">
</FONT>and the materials and equipment<FONT STYLE="letter-spacing: -0.5pt"> </FONT>therein or appurtenant thereto shall be<FONT STYLE="letter-spacing: -0.15pt">
</FONT>owned by<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such Parties; and all Costs <FONT STYLE="letter-spacing: 0.1pt"> </FONT>incurred
in the operation of such well and all <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Lease Burdens<FONT STYLE="letter-spacing: -0.35pt">
</FONT>payable in respect of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Production from such well<FONT STYLE="letter-spacing: -0.05pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>borne and paid by<FONT STYLE="letter-spacing: -0.15pt">
</FONT>said Parties. Apportionment among said Parties of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>ownership, Costs, and Lease
Burdens shall<FONT STYLE="letter-spacing: 0.1pt"> </FONT>be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>in<FONT STYLE="letter-spacing: 0.1pt">
</FONT>the same proportions in which Costs incurred in Drilling the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>well were borne.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. When Less Than
All Drilling<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Block Parties Participate.<FONT STYLE="letter-spacing: -0.45pt"> </FONT>If
any Party within<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the Drilling Block<FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall
have elected not to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate<FONT STYLE="letter-spacing: -0.15pt"> </FONT>in Drilling<FONT STYLE="letter-spacing: -0.5pt">
</FONT>or Completing such well, then the provisions of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Article 12 shall be applicable
thereto; and the relinquished<FONT STYLE="letter-spacing: -0.2pt"> </FONT>interest of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Non-Drilling Party shall revert to it in the same manner and under the same conditions as provided in<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Section 12.4 with respect to a well which results<FONT STYLE="letter-spacing: -0.25pt"> </FONT>in the establishment<FONT STYLE="letter-spacing: -0.2pt">
</FONT>or enlargement<FONT STYLE="letter-spacing: -0.2pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>a participating<FONT STYLE="letter-spacing: -0.15pt">
</FONT>area, except that <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the proceeds or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>market
value to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>be<FONT STYLE="letter-spacing: -0.3pt"> </FONT>used in<FONT STYLE="letter-spacing: 0.15pt">
</FONT>determining when such reversion shall occur shall be the proceeds <FONT STYLE="letter-spacing: 0.1pt"> </FONT>or market
value (after making the deductions provided for in Section 12.4) of that portion of the Production obtained from the well <FONT STYLE="letter-spacing: 0.3pt">
</FONT>which, had the Non-Drilling Party elected to participate<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the Drilling<FONT STYLE="letter-spacing: -0.25pt">
</FONT>or Completing thereof, would have been allocable,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>on an Acreage Basis within
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Drilling Block, to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Non-Drilling
Party. Upon reversion<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the relinquished
interest of the Non-Drilling Party in such well, the provisions of Section 12.5 shall become applicable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.3 Cost Liability
of Subsequently<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Created Interests. Anything<FONT STYLE="letter-spacing: 0.1pt"> </FONT>herein
to the contrary not withstanding, if,<FONT STYLE="letter-spacing: -0.5pt"> </FONT>subsequent<FONT STYLE="letter-spacing: -0.35pt">
</FONT>to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the date of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>this Agreement,<FONT STYLE="letter-spacing: -0.35pt">
</FONT>any Party shall create an overriding royalty, production<FONT STYLE="letter-spacing: 0.15pt"> </FONT>payment, net proceeds
interest, carried<FONT STYLE="letter-spacing: -0.25pt"> </FONT>interest, or any other interest<FONT STYLE="letter-spacing: -0.2pt">
</FONT>out of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>its Committed Working Interest (hereinafter called &quot;Subsequently
Created Interest&quot;), such Subsequently Created Interest<FONT STYLE="letter-spacing: -0.05pt"> </FONT>shall be made expressly
subject to the terms<FONT STYLE="letter-spacing: -0.05pt"> </FONT>and provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>this Section <FONT STYLE="letter-spacing: 0.15pt"> </FONT>6.3 and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of<FONT STYLE="letter-spacing: -0.25pt">
</FONT>Section 12.9. If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>which
created such Subsequently<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Created Interest fails to pay, when due, its share<FONT STYLE="letter-spacing: -0.25pt">
</FONT>of Costs and the proceeds from its share of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Production are <FONT STYLE="letter-spacing: 0.05pt">
</FONT>insufficient<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to cover such Costs, then the Subsequently Created Interest shall
be chargeable with a pro <FONT STYLE="letter-spacing: 0.1pt"> </FONT>rata share of such Costs as if such Subsequently Created Interest
were a Committed Working <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Interest; and Unit <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Operator shall have the right to enforce against such <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Subsequently<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Created Interest the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>lien <FONT STYLE="letter-spacing: 0.1pt"> </FONT>and all
other rights granted in Section 15.5 for the purpose <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of collecting Costs <FONT STYLE="letter-spacing: 0.1pt">
</FONT>chargeable to the Subsequently Created Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.4 Taking<FONT STYLE="letter-spacing: 0.05pt">
</FONT>in Kind. Each Party<FONT STYLE="letter-spacing: -0.05pt"> </FONT>shall currently,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>as
produced, take in kind or separately<FONT STYLE="letter-spacing: -0.2pt"> </FONT>dispose of its share of Production<FONT STYLE="letter-spacing: -0.05pt">
</FONT>and pay Unit Operator for<FONT STYLE="letter-spacing: 0.15pt"> </FONT>any extra expenditure<FONT STYLE="letter-spacing: -0.05pt">
</FONT>necessitated<FONT STYLE="letter-spacing: -0.45pt"> </FONT>thereby.<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Except as
otherwise<FONT STYLE="letter-spacing: -0.05pt"> </FONT>provided in Section 15.5, each Party<FONT STYLE="letter-spacing: -0.05pt">
</FONT>shall be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>entitled to receive directly<FONT STYLE="letter-spacing: -0.1pt">
</FONT>all proceeds from the sale<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of its share of Production. Unit Operator shall timely
make all permitted governmental filings relative<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to the price to be<FONT STYLE="letter-spacing: -0.35pt">
</FONT>charged for gas; however, Unit Operator shall not be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>liable if, through mistake
or oversight, it should fail to make any such filing or should make <FONT STYLE="letter-spacing: 0.3pt"> </FONT>erroneous<FONT STYLE="letter-spacing: -0.05pt">
</FONT>filings.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">6.5 Failure<FONT STYLE="letter-spacing: -0.25pt">
</FONT>to Take in Kind. Should <FONT STYLE="letter-spacing: 0.05pt"> </FONT>any Party<FONT STYLE="letter-spacing: -0.25pt"> </FONT>fail
to take in kind or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>separately<FONT STYLE="letter-spacing: -0.35pt"> </FONT>dispose of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>its share of Production, the Party acting as Unit Operator shall have the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>right,
revocable at will by the Party owning such share, to purchase such share for its <FONT STYLE="letter-spacing: 0.3pt"> </FONT>own
account at not less <FONT STYLE="letter-spacing: 0.3pt"> </FONT>than <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the market price</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">3</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2<FONT STYLE="letter-spacing: 0.3pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 4 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">receives for its own share of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Production;<FONT STYLE="letter-spacing: -0.05pt"> </FONT>provided that all such sales shall <FONT STYLE="letter-spacing: 0.1pt">
</FONT>be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>only for such reasonable<FONT STYLE="letter-spacing: -0.05pt"> </FONT>periods
of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>time as are consistent<FONT STYLE="letter-spacing: 0.15pt"> </FONT>with the minimum
needs of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the industry<FONT STYLE="letter-spacing: 0.1pt"> </FONT>under <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the circumstances, but not to exceed one (1) year. Notwithstanding<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the foregoing,
Unit Operator<FONT STYLE="letter-spacing: -0.2pt"> </FONT>shall not sell or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>commit
any Party's share of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>gas Production<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to a
sale without<FONT STYLE="letter-spacing: -0.4pt"> </FONT>first giving such Party not less than ninety (90) days written notice.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">6.6 Surplus
Materials and Equipment. Materials<FONT STYLE="letter-spacing: -0.45pt"> </FONT>and equipment<FONT STYLE="letter-spacing: -0.3pt">
</FONT>owned by<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.5pt"> </FONT>or by<FONT STYLE="letter-spacing: -0.05pt">
</FONT>any of them pursuant<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>this Agreement<FONT STYLE="letter-spacing: -0.35pt">
</FONT>may be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>classified as<FONT STYLE="letter-spacing: 0.3pt"> </FONT>surplus<FONT STYLE="letter-spacing: -0.45pt">
</FONT>by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Unit Operator when deemed bv it to be no longer needed in operations hereunder,
by giving to each <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party owning an interest therein notice thereof. Such<FONT STYLE="letter-spacing: 0.05pt">
</FONT>surplus materials and equipment<FONT STYLE="letter-spacing: -0.25pt"> </FONT>shall be disposed of as follows:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">A. Each
Party owning an interest therein shall have the right to take in kind its share of surplus<FONT STYLE="letter-spacing: -0.05pt">
</FONT>tubular<FONT STYLE="letter-spacing: 0.15pt"> </FONT>goods and other surplus items which are susceptible<FONT STYLE="letter-spacing: -0.1pt">
</FONT>of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>division in kind, by notice given <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to Unit Operator within thirty<FONT STYLE="letter-spacing: 0.05pt"> </FONT><I>(30) </I>days <FONT STYLE="letter-spacing: 0.15pt">
</FONT>after classification thereof <FONT STYLE="letter-spacing: 0.3pt"> </FONT>as surplus,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>except that such right shall not apply to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>junk or to any item (other <FONT STYLE="letter-spacing: 0.1pt">
</FONT>than tubular<FONT STYLE="letter-spacing: -0.1pt"> </FONT>goods) having<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a replacement
cost of less than Seven Thousand Five Hundred Dollars ($7,500.00).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">B. Surplus<FONT STYLE="letter-spacing: -0.1pt">
</FONT>materials and equipP1ent not divided <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in kind, other than junk and any item (other
than tubular<FONT STYLE="letter-spacing: -0.05pt"> </FONT>goods) having<FONT STYLE="letter-spacing: -0.25pt"> </FONT>a replacement<FONT STYLE="letter-spacing: -0.1pt">
</FONT>cost of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>less than Seven Thousand Five Hundred<FONT STYLE="letter-spacing: -0.25pt">
</FONT>Dollars ($7,500.00), shall be sold to the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>highest bidder or bidders.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">C. Surplus
materials <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and equipment not disposed of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in
accordance with the preceding provisions of this <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Section shall be disposed of as provided
in Exhibit 1.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>ARTICLE 7</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>PLANS OF DEVELOPMENT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.1 Submittal
of Plans.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Each plan for the development and operation of the Unit Area shall be submitted
by Unit Operator<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Appropriate Agency
in accordance<FONT STYLE="letter-spacing: -0.35pt"> </FONT>with the Unit Agreement<FONT STYLE="letter-spacing: -0.1pt"> </FONT>and
the further provisions of this Article.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.2 Proposal.<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Unit Operator shall initiate each proposed plan by submitting the same in writing<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to
each<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party at least thirty<FONT STYLE="letter-spacing: -0.1pt"> </FONT>(30)<FONT STYLE="letter-spacing: 0.1pt">
</FONT>days before filing the same with the Appropriate Agency. If,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>within the 30-day
period above provided, such plan receives the Approval of the Parties or no<FONT STYLE="letter-spacing: -0.15pt"> </FONT>written
objections are received, then such<FONT STYLE="letter-spacing: 0.15pt"> </FONT>plan shall be filed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.3 Objections<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to Plan. Within the 30-day period above provided, any Party may submit<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to Unit
Operator written<FONT STYLE="letter-spacing: -0.4pt"> </FONT>objections to<FONT STYLE="letter-spacing: -0.4pt"> </FONT>such plan.
If,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>despite such objections, the plan receives the Approval of the Parties, then the
Party making the objections may <FONT STYLE="letter-spacing: 0.05pt"> </FONT>renew the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>same
before the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Appropriate Agency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.4 Revised
Plan. If such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>plan does not <FONT STYLE="letter-spacing: 0.05pt"> </FONT>receive the
Approval of the Parties, and Unit Operator receives written objections thereto, then <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit
Operator shall submit to<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Parties a<FONT STYLE="letter-spacing: 0.1pt"> </FONT>revised
plan, taking into account the objections made to the first <FONT STYLE="letter-spacing: 0.15pt"> </FONT>plan. If<FONT STYLE="letter-spacing: -0.05pt">
</FONT>no plan receives the Approval of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.3pt">
</FONT>within sixty (60) days from submission of the first plan, then Unit Operator shall file with <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Appropriate Agency <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a plan reflecting
as nearly as practicable the various views expressed by the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.5 Rejection
of Plan. If a plan filed by Unit Operator as <FONT STYLE="letter-spacing: 0.3pt"> </FONT>above provided is <FONT STYLE="letter-spacing: 0.05pt">
</FONT>rejected by <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the Appropriate<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Agency,
Unit Operator shall initiate a new plan in the same manner<FONT STYLE="letter-spacing: -0.35pt"> </FONT>as provided in Section.
7.2, and the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>procedure with respect thereto shall be the same as in the case of an
initial plan.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.6 Notice
of Approval or Disapproval.<FONT STYLE="letter-spacing: -0.45pt"> </FONT>If and when a plan has been approved or disapproved<FONT STYLE="letter-spacing: -0.15pt">
</FONT>by<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Appropriate Agency, Unit Operator shall give prompt notice thereof to
each Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.7 Supplemental<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Plans. If any Party or Parties shall have elected to proceed <FONT STYLE="letter-spacing: 0.1pt"> </FONT>with a &middot;Drilling,
Deepening,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>or Plugging<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Back operation in
accordance with the provisions <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>this
Agreement,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and such operation is not provided for in the then current plan of development
approved by the Appropriate Agency, Unit Operator shall either (a)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>submit<FONT STYLE="letter-spacing: -0.25pt">
</FONT>to the Appropriate<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Agency for approval a supplemental plan providing for<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the conduct of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>such operation or (b)<FONT STYLE="letter-spacing: -0.45pt"> </FONT>request
the Appropriate<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Agency to consent to<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such
operation, if such consent is sufficient.</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">7.8 Cessation
of Operations Under the Plan. If any plan approved by the Appropriate Agency provides for the cessation<FONT STYLE="letter-spacing: -0.1pt">
</FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any Drilling or other operation therein provided for on the happening<FONT STYLE="letter-spacing: -0.25pt">
</FONT>of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a contingency and such contingency occurs, Unit Operator<FONT STYLE="letter-spacing: -0.3pt">
</FONT>shall promptly cease such Drilling<FONT STYLE="letter-spacing: -0.05pt"> </FONT>or other operation and shall not incur any
additional Costs in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>connection therewith <FONT STYLE="letter-spacing: 0.3pt"> </FONT>unless
and until such Drilling or other operation is again authorized, in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>accordance with
this Agreement, by the Parties chargeable with such Costs and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Appropriate Agency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>ARTICLE 8</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>DEVELOPMENT WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">8.1 Purpose
and Procedure. It is the purpose<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>this<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Article to set forth the procedure<FONT STYLE="letter-spacing: 0.3pt"> </FONT>for Drilling and Completing a Development
Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">8.2 Drilling.
The Drilling of a Development Well shall be pursuant to the<FONT STYLE="letter-spacing: 0.1pt"> </FONT>procedure herein<FONT STYLE="letter-spacing: -0.4pt">
</FONT>set forth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">A. Approval
Required. The Drilling<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of a Development Well shall be subject to such Drilling receiving
the Approval of the Parties, unless the Drilling of the proposed well is necessary <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to
prevent the loss of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>a<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Committed Working
Interest in the tract of land <FONT STYLE="letter-spacing: 0.05pt"> </FONT>on<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which
the proposed well is<FONT STYLE="letter-spacing: -0.1pt"> </FONT>to be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilled. Vote
by<FONT STYLE="letter-spacing: -0.25pt"> </FONT>any Party in favor of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>the Drilling
of any such well shall not, however, be deemed an election by such Party to participate in the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Costs thereof but shall mean only that such Party</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center; text-indent: 15.1pt">4</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 5.05pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February. 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">considers<FONT STYLE="letter-spacing: -0.4pt">
</FONT>the Drilling of the well to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>consistent<FONT STYLE="letter-spacing: -0.05pt">
</FONT>with the efficient and economic development of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>the participating area involved
and has <FONT STYLE="letter-spacing: 0.3pt"> </FONT>no objection to the Drilling thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Notice of Proposed<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Drilling. Subject to the provisions<FONT STYLE="letter-spacing: -0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.5pt">
</FONT>Subdivision A of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Section 8.2, any Party within a participating<FONT STYLE="letter-spacing: -0.3pt">
</FONT>area may propose the Drilling<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a
Development Well therein by giving to each of the other Parties within the participating area notice, specifying the location,
depth, and estimated cost of the proposed well, which location shall conform <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to any
applicable spacing<FONT STYLE="letter-spacing: -0.25pt"> </FONT>pattern then existing or an approved exception<FONT STYLE="letter-spacing: -0.5pt">
</FONT>thereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Response to
Notice. Within thirty (30) days after receipt of such<FONT STYLE="letter-spacing: 0.1pt"> </FONT>notice, each Party within such
participating<FONT STYLE="letter-spacing: -0.5pt"> </FONT>area shall advise all other Parties<FONT STYLE="letter-spacing: 0.1pt">
</FONT>therein<FONT STYLE="letter-spacing: 0.05pt"> </FONT>whether or not it wishes to<FONT STYLE="letter-spacing: -0.15pt"><I>
</I></FONT>participate in<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilling the proposed well. If<FONT STYLE="letter-spacing: -0.25pt">
</FONT>any Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>fails to<FONT STYLE="letter-spacing: -0.2pt"> </FONT>give such advice
within said 30-day period, it<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be<FONT STYLE="letter-spacing: -0.25pt"> </FONT>deemed
to have elected not to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate<FONT STYLE="letter-spacing: -0.15pt"> </FONT>in Drilling<FONT STYLE="letter-spacing: -0.5pt">
</FONT>the proposed well. If<FONT STYLE="letter-spacing: -0.2pt"> </FONT>all Parties within<FONT STYLE="letter-spacing: -0.2pt">
</FONT>such participating area advise that they wish <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to participate in Drilling the
proposed well, then Unit Operator shall Drill the well for the account of all such Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Notice of Election
to Proceed. Unless all <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Parties within<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
participating area agree to participate in Drilling such well, then, within<FONT STYLE="letter-spacing: -0.4pt"> </FONT>fifteen
(15)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>days after expiration<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the 30-day period specified in Subdivision<FONT STYLE="letter-spacing: -0.25pt"> </FONT>C<FONT STYLE="letter-spacing: -0.4pt">
</FONT>of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>this Section 8.2, each Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within<FONT STYLE="letter-spacing: -0.35pt">
</FONT>the participating area then desiring to have the proposed well Drilled shall give to all other Parties therein notice of
its <FONT STYLE="letter-spacing: 0.1pt"> </FONT>election to proceed with the Drilling of said well. Failure<FONT STYLE="letter-spacing: 0.05pt">
</FONT>to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>give such notice shall be<FONT STYLE="letter-spacing: -0.35pt"> </FONT>deemed
an election not to participate in Drilling the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Subsequent<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Election. If election to Drill the proposed <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well is made, any Party within
the participating area who had not previously elected to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate<FONT STYLE="letter-spacing: -0.2pt">
</FONT>therein<FONT STYLE="letter-spacing: -0.2pt"> </FONT>may do<FONT STYLE="letter-spacing: -0.45pt"> </FONT>so<FONT STYLE="letter-spacing: -0.3pt">
</FONT>by notice given to Unit Operator<FONT STYLE="letter-spacing: -0.5pt"> </FONT>at any time before the well is<FONT STYLE="letter-spacing: 0.15pt">
</FONT>spudded,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in which event such Party<FONT STYLE="letter-spacing: -0.5pt"> </FONT>shall
be included in the Drilling<FONT STYLE="letter-spacing: -0.45pt"> </FONT>Party. However, such<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party shall be bound<FONT STYLE="letter-spacing: 0.15pt"> </FONT>by any and all Directions<FONT STYLE="letter-spacing: 0.05pt">
</FONT>and Approvals theretofore given by the Drilling Party concerning the Drilling of the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Effect<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of Election. If one or more, but <FONT STYLE="letter-spacing: 0.1pt"> </FONT>not all, of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>within the participating area elect to proceed with the Drilling<FONT STYLE="letter-spacing: -0.25pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>well, Unit Operator<FONT STYLE="letter-spacing: 0.1pt">
</FONT>shall Drill the well for the account of such Party or Parties, who shall constitute<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Drilling<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Party,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>on an Acreage
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Basis among them selves, or on such other basis <FONT STYLE="letter-spacing: 0.15pt">
</FONT>as said Parties may <FONT STYLE="letter-spacing: 0.1pt"> </FONT>specify.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Rights and<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Obligations<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of Drilling<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party and
Non-Drilling Party. Whenever a Development Well is Drilled otherwise than for the account of all Parties within the participating
area involved, the provisions of Article 12 shall be applicable to such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">8.3 Attempted Completion.
The attempted Completion of Development Wells Drilled to <FONT STYLE="letter-spacing: 0.1pt"> </FONT>their projected depths<FONT STYLE="letter-spacing: 0.15pt">
</FONT>shall be governed by the following provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Notice by Unit
Operator.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>After a Development Well has reached its projected <FONT STYLE="letter-spacing: 0.15pt">
</FONT>depth and been tested,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>logged, and logs furnished to each Drilling<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Party, but before production<FONT STYLE="letter-spacing: 0.3pt"> </FONT>pipe has been set, Unit Operator shall give notice
thereof to each Drilling<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Right to Attempt
Completion. Each Drilling Party shall have the right to initiate <FONT STYLE="letter-spacing: 0.1pt"> </FONT>a proposal to attempt
the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Completion of such well and also <FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall
be entitled to participate in the Completion attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Time and Manner
of Initiating Proposal.<FONT STYLE="letter-spacing: -0.2pt"> </FONT>A period of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>twenty-four
(24) hours (exclusive of Saturdays, Sundays,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>and holidays) from and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>after receipt of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the notice given pursuant<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to Subdivision A of this Section 8.3 shall be allowed within which a Party entitled to do so may <FONT STYLE="letter-spacing: 0.15pt">
</FONT>initiate a proposal to Complete. Any such proposal shall<FONT STYLE="letter-spacing: -0.3pt"> </FONT>be initiated<FONT STYLE="letter-spacing: -0.05pt">
</FONT>by<FONT STYLE="letter-spacing: -0.2pt"> </FONT>giving notice thereof to Unit Operator and to<FONT STYLE="letter-spacing: -0.25pt">
</FONT>each Drilling Party. If<FONT STYLE="letter-spacing: -0.45pt"> </FONT>no<FONT STYLE="letter-spacing: -0.2pt"> </FONT>such
proposal is<FONT STYLE="letter-spacing: -0.2pt"> </FONT>initiated within said period and no other proposal is initiated pursuant
to Article <FONT STYLE="letter-spacing: 0.1pt"> </FONT>11, Unit Operator<FONT STYLE="letter-spacing: -0.15pt"> </FONT>shall plug
and abandon the well for the account <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Drilling<FONT STYLE="letter-spacing: -0.4pt">
</FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Election.<FONT STYLE="letter-spacing: -0.35pt">
</FONT>If a proposal <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to Complete is initiated,<FONT STYLE="letter-spacing: -0.15pt">
</FONT>each Drilling<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall have a
period of twenty-four (24) hours (exclusive of Saturdays, Sundays,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and holidays) from
and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>after receipt of such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposal within
which to notify Unit Operator whether or not it elects <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to participate in the Completion
attempt.<FONT STYLE="letter-spacing: -0.5pt"> </FONT>The failure<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of a Party<FONT STYLE="letter-spacing: -0.25pt">
</FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>signify its election within said 24-hour<FONT STYLE="letter-spacing: 0.05pt">
</FONT>period shall be deemed an election not to participate in the Completion attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Effect<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Election. The Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>or Parties<FONT STYLE="letter-spacing: 0.05pt">
</FONT>electing to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in an attempt<FONT STYLE="letter-spacing: -0.2pt">
</FONT>to Complete a well as above provided shall constitute the Completing Party for such operation. Each<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party who was entitled to make such election but failed to do so as above provided shall be a Non-Completing Party with
respect to such operation.<FONT STYLE="letter-spacing: -0.25pt"> </FONT>Such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation<FONT STYLE="letter-spacing: -0.4pt">
</FONT>shall be conducted by Unit Operator for the account of the Party or Parties constituting the Completing<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Party, on an Acreage Basis among themselves, or on such other <FONT STYLE="letter-spacing: 0.3pt"> </FONT>basis as the Completing
Party may specify. Such operation, if successful, shall include Equipping the well for production.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Rights and Obligations
of Completing<FONT STYLE="letter-spacing: -0.5pt"> </FONT>Party and Non-Completing Party. Upon the commencement of a Completion<FONT STYLE="letter-spacing: -0.1pt">
</FONT>operation otherwise than for the account of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all Drilling<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Parties, the provisions of Article 12 shall be applicable to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Notice Prior
to Plugging.<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Before plugging and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>abandoning
any Development Well which was Drilled to its projected depth and not completed as a producer of unitized substances, Unit Operator<FONT STYLE="letter-spacing: -0.15pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>give the notice specified in Section 11.1 A, unless every Party entitled<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to the notice has consented to the plugging<FONT STYLE="letter-spacing: -0.2pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>abandonment of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well, in which
event Unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Operator<FONT STYLE="letter-spacing: -0.25pt"> </FONT>shall plug and abandon<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the well for the account <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>the
Completing Party. Upon the giving of such notice, the provisions of Article 11 shall apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">5</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN U JIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2<FONT STYLE="letter-spacing: 0.3pt">
</FONT>(Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February 1980 (Page<FONT STYLE="letter-spacing: 0.15pt">
</FONT>6 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 9</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EXPLORATORY WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">9.1 Purpose and
Procedure.<FONT STYLE="letter-spacing: -0.05pt"> </FONT>It is the purpose of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Article
to set forth the procedure for Drilling and Completing an Exploratory Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">9.2 Drilling. The
Drilling of an Exploratory Well shall be pursuant to the procedure herein set forth.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Notice of Proposed
Drilling.<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Any Party<FONT STYLE="letter-spacing: -0.3pt"> </FONT>desiring the Drilling
of an Exploratory Well<FONT STYLE="letter-spacing: 0.05pt"> </FONT>on<FONT STYLE="letter-spacing: 0.1pt"> </FONT>land in which
it owns a Committed Working Interest shall designate an area, herein called <FONT STYLE="letter-spacing: 0.1pt"> </FONT>a Drilling
Block,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>not to<FONT STYLE="letter-spacing: -0.5pt"> </FONT>excee<FONT STYLE="letter-spacing: 0.3pt">d
<U> 960 </U> </FONT>acres, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>which, on<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the
basis of available geological information,<FONT STYLE="letter-spacing: -0.3pt"> </FONT>will, in its judgment, be proved productive
by the Drilling of such well. Unit Operator and each Party within the Drilling<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Block<FONT STYLE="letter-spacing: 0.1pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>furnished with a plat and description of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the area so<FONT STYLE="letter-spacing: 0.1pt"> </FONT>designated, together with notice of the location, objective formation,
estimated<FONT STYLE="letter-spacing: 0.05pt"> </FONT>depth, and estimated<FONT STYLE="letter-spacing: -0.3pt"> </FONT>cost of<FONT STYLE="letter-spacing: -0.35pt">
</FONT>the proposed well. The location of the proposed we II<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall conform to any applicable<FONT STYLE="letter-spacing: -0.1pt">
</FONT>spacing pattern then existing or an approved exception thereto. The Drilling Block shall include no land in <FONT STYLE="letter-spacing: 0.05pt">
</FONT>an established<FONT STYLE="letter-spacing: -0.1pt"> </FONT>participating<FONT STYLE="letter-spacing: -0.15pt"> </FONT>area
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>for<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the objective formation<FONT STYLE="letter-spacing: -0.1pt">
</FONT>for the well to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be Drilled thereon<FONT STYLE="letter-spacing: 0.1pt"> </FONT>nor
any land included in a proposal therefor filed with the Appropriate Agency nor <FONT STYLE="letter-spacing: 0.15pt"> </FONT>any
land within<FONT STYLE="letter-spacing: -0.3pt"> </FONT>an active, previously designated Drilling Block for such <FONT STYLE="letter-spacing: 0.3pt">
</FONT>formation. The Drilling Block shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be considered active for ninety (90) days
after the designation<FONT STYLE="letter-spacing: 0.3pt"> </FONT>thereof and, if<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
actual Drilling<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of a well is commenced thereon within such period, until either:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(1) the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Completion of the well, if it is completed otherwise<FONT STYLE="letter-spacing: -0.3pt"> </FONT>than as <FONT STYLE="letter-spacing: 0.05pt">
</FONT>a producer of unitized substances<FONT STYLE="letter-spacing: 0.1pt"> </FONT>in Paying Quantities,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>either at its original projected depth <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or, if<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Deepening or Plugging Back operations<FONT STYLE="letter-spacing: 0.15pt"> </FONT>are <FONT STYLE="letter-spacing: 0.05pt">
</FONT>conducted, at any other projected <FONT STYLE="letter-spacing: 0.1pt"> </FONT>depth; or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(2) the filing
with the Appropriate<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agency of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a proposal
for the establishment<FONT STYLE="letter-spacing: -0.15pt"> </FONT>or revision <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of
a participating area if the Completion of the well results in the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>filing of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>proposal.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Basis of<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Participation. Each Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within<FONT STYLE="letter-spacing: -0.45pt"> </FONT>the
Drilling Block<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.1pt"> </FONT>be<FONT STYLE="letter-spacing: -0.35pt">
</FONT>entitled<FONT STYLE="letter-spacing: -0.1pt"> </FONT>to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>participate in the Costs
of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Drilling the proposed well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>on<FONT STYLE="letter-spacing: 0.3pt">
</FONT>an Acreage Basis but shall be required<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to do<FONT STYLE="letter-spacing: -0.3pt">
</FONT>so only if<FONT STYLE="letter-spacing: -0.25pt"> </FONT>it notifies the other Parties within <FONT STYLE="letter-spacing: 0.1pt">
</FONT>the Drilling Block<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of its willingness so<FONT STYLE="letter-spacing: -0.1pt">
</FONT>to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate, as hereinafter in this Article 9 provided.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Exclusion<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of Land From Proposed Drilling<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Block.<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Within<FONT STYLE="letter-spacing: -0.4pt"> </FONT>thirty (30) days after receipt of such notice, any part of the land included<FONT STYLE="letter-spacing: 0.15pt">
</FONT>in the proposed Drilling Block may be<FONT STYLE="letter-spacing: -0.35pt"> </FONT>excluded therefrom at the Direction<FONT STYLE="letter-spacing: -0.5pt">
</FONT>of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.3pt"> </FONT>therein.<FONT STYLE="letter-spacing: 0.3pt">
</FONT>In such event the proposed Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block, as reduced by<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the exclusion of such land, shall be established as the Drilling Block. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>In
the absence of any such Direction, then, at the expiration of said 30-day period, the proposed Drilling Block shall be established
as the Drilling Block.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Preliminary
Notice to Join in Drilling.<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Within<FONT STYLE="letter-spacing: 0.05pt"> </FONT>ten (10)<FONT STYLE="letter-spacing: 0.15pt">
</FONT>days after<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the establishment<FONT STYLE="letter-spacing: -0.4pt"> </FONT>of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the Drilling Block,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>each Party<FONT STYLE="letter-spacing: -0.1pt"> </FONT>within
such Drilling Block shall advise all other Parties<FONT STYLE="letter-spacing: -0.05pt"> </FONT>therein<FONT STYLE="letter-spacing: 0.1pt">
</FONT>whether or not it wishes to participate in Drilling the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposed well. If any
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Party fails to give such advice within said 10-day period, it shall be deemed to have
elected not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to participate in Drilling<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the
proposed well.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>If all Parties<FONT STYLE="letter-spacing: -0.35pt"> </FONT>within the
Drilling Block<FONT STYLE="letter-spacing: 0.1pt"> </FONT>advise that they wish to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate
in Drilling the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposed well, then Unit Operator<FONT STYLE="letter-spacing: -0.1pt">
</FONT>shall Drill the well for the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>account of all <FONT STYLE="letter-spacing: 0.05pt">
</FONT>such Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Notice of Election
to Proceed. Unless all Parties within the Drilling Block <FONT STYLE="letter-spacing: 0.3pt"> </FONT>agree <FONT STYLE="letter-spacing: 0.1pt">
</FONT>to participate<FONT STYLE="letter-spacing: -0.35pt"> </FONT>in Drilling such well, then, within fifteen (15)<FONT STYLE="letter-spacing: 0.15pt">
</FONT>days after expiration<FONT STYLE="letter-spacing: -0.4pt"> </FONT>of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the 10-day
period specified in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Subdivision<FONT STYLE="letter-spacing: 0.1pt"> </FONT>D<FONT STYLE="letter-spacing: -0.3pt">
</FONT>of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>this Section 9.2, each Party within<FONT STYLE="letter-spacing: -0.15pt">
</FONT>the Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block then desiring to have the proposed well Drilled shall <FONT STYLE="letter-spacing: 0.05pt">
</FONT>give to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all other Parties<FONT STYLE="letter-spacing: -0.35pt"> </FONT>therein<FONT STYLE="letter-spacing: -0.2pt">
</FONT>notice of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>its election <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>proceed with the Drilling of said well. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Failure to give such notice shall be
deemed an election not to participate<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in Drilling the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Subsequent Election.
If election to Drill <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>proposed well
is made, any <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party within the Drilling Block<FONT STYLE="letter-spacing: 0.15pt"> </FONT>who
had not previously<FONT STYLE="letter-spacing: -0.3pt"> </FONT>elected <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>participate<FONT STYLE="letter-spacing: -0.5pt"> </FONT>therein may do<FONT STYLE="letter-spacing: -0.35pt"> </FONT>so<FONT STYLE="letter-spacing: -0.05pt">
</FONT>by notice given to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>all other <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Parties<FONT STYLE="letter-spacing: -0.25pt">
</FONT>within the Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block at any time before the well is<FONT STYLE="letter-spacing: 0.1pt">
</FONT>spudded, in which event such Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be included in the Drilling<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Party. However, such Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be bound by any and<FONT STYLE="letter-spacing: 0.15pt">
</FONT>all Directions<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and Approvals theretofore given by the Drilling Party concerning<FONT STYLE="letter-spacing: -0.5pt">
</FONT>the Drilling of the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Effect of Election.
If<FONT STYLE="letter-spacing: -0.05pt"> </FONT>one or more, but not all, of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.3pt">
</FONT>within the Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block elect to proceed with <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Drilling<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the well, Unit
Operator<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall Drill the well for the account of<FONT STYLE="letter-spacing: -0.4pt">
</FONT>such Party or<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Parties,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>who<FONT STYLE="letter-spacing: -0.05pt">
</FONT>shall constitute<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Drilling Party,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>on<FONT STYLE="letter-spacing: 0.05pt">
</FONT>an Acreage Basis among themselves, or on such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>other basis as said Parties may
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>specify.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">H. Rights and Obligations<FONT STYLE="letter-spacing: -0.25pt">
</FONT>of Drilling Party and<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Non-Drilling Party. Whenever an Exploratory Well is Drilled
otherwise<FONT STYLE="letter-spacing: -0.4pt"> </FONT>than for the account of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>all Parties<FONT STYLE="letter-spacing: -0.05pt">
</FONT>within the Drilling Block involved, the provisions of Article 12 shall be applicable to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">9.3 Attempted Completion.
The attempted Completion of Exploratory <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Wells <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Drilled to their projected depths shall be governed by the following provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Notice by Unit
Operator.<FONT STYLE="letter-spacing: -0.25pt"> </FONT>After an Exploratory<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Well has
reached its projected depth and has been tested,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>logged, and logs<FONT STYLE="letter-spacing: 0.3pt">
</FONT>furnished to each <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilling<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Party,
but before production pipe has been set, Unit Operator shall give notice thereof to each Drilling<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Right <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to Attempt Completion. Each Drilling Party shall have the right to initiate a proposal to attempt the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Completion of such well and also <FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be entitled to participate in the Completion
attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">6</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February 1980 (Page 7 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Time and<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Manner of Initiating Proposal.<FONT STYLE="letter-spacing: -0.2pt"> </FONT>A period of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>twenty-four (24) hours (exclusive of Saturdays, Sundays,<FONT STYLE="letter-spacing: -0.35pt"> </FONT>and holidays) from
and after receipt <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the notice given pursuant
to Subdivision A of this Section 9.3 shall be allowed within which a Party entitled to do so may initiate a proposal to Complete.
Any such proposal shall<FONT STYLE="letter-spacing: -0.3pt"> </FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>initiated<FONT STYLE="letter-spacing: -0.05pt">
</FONT>by<FONT STYLE="letter-spacing: -0.5pt"> </FONT>giving notice thereof to Unit Operator and to<FONT STYLE="letter-spacing: -0.3pt">
</FONT>each Drilling Party.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>If<FONT STYLE="letter-spacing: -0.3pt"> </FONT>no<FONT STYLE="letter-spacing: -0.45pt">
</FONT>such proposal is initiated<FONT STYLE="letter-spacing: -0.15pt"> </FONT>within said period and no<FONT STYLE="letter-spacing: -0.45pt">
</FONT>other proposal is initiated pursuant to Article 11, Unit Operator<FONT STYLE="letter-spacing: -0.5pt"> </FONT>shall plug
and abandon<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the well for the account of the Drilling<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Election. If
a proposal to Complete is initiated, each Party entitled to participate in the Completion <FONT STYLE="letter-spacing: 0.1pt">
</FONT>attempt shall have a period of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>twenty-four<FONT STYLE="letter-spacing: -0.3pt">
</FONT>(24)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>hours (exclusive of Saturdays, Sundays, and holidays) from and after <FONT STYLE="letter-spacing: 0.1pt">
</FONT>receipt of such proposal <FONT STYLE="letter-spacing: 0.15pt"> </FONT>within which to notify Unit Operator whether or not
it elects to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate<FONT STYLE="letter-spacing: -0.35pt"> </FONT>in the Completion
attempt. The failure of a Party<FONT STYLE="letter-spacing: -0.5pt"> </FONT>to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>signify
its election within said 24-hour period shall be deemed an election not to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate
in the Completion<FONT STYLE="letter-spacing: -0.5pt"> </FONT>attempt.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Effect of Election.<FONT STYLE="letter-spacing: -0.3pt">
</FONT>The Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>or Parties electing to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate<FONT STYLE="letter-spacing: -0.4pt">
</FONT>in an attempt<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to Complete a well as above provided shall constitute the Completing
Party for such operation.<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Each<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party who
was entitled to make such election but failed to do<FONT STYLE="letter-spacing: -0.1pt"> </FONT>so as above provided shall be<FONT STYLE="letter-spacing: -0.15pt">
</FONT>a Non-Completing Party with respect to such operation. Such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation<FONT STYLE="letter-spacing: -0.4pt">
</FONT>shall be conducted by Unit Operator for the account of the Party or Parties constituting the Completing Party, on an <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Acreage Basis <FONT STYLE="letter-spacing: 0.3pt"> </FONT>among themselves, or on such other basis as the Completing Party
may specify. Such operation,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>if successful, shall include Equipping the well for production.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Rights and Obligations
of Completing Party and Non-Completing Party. Upon the commencement of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a Completion
operation<FONT STYLE="letter-spacing: -0.15pt"> </FONT>otherwise<FONT STYLE="letter-spacing: -0.15pt"> </FONT>than for the account
of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>all<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Drilling<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Parties, the provisions of Article 12 shall be applicable to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Notice Prior
to Plugging. Before plugging and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>abandoning any Exploratory Well which was Drilled
to its <FONT STYLE="letter-spacing: 0.15pt"> </FONT>projected depth and not completed as a producer of unitized substances,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall give the notice specified <FONT STYLE="letter-spacing: 0.15pt">
</FONT>in Section <FONT STYLE="letter-spacing: 0.3pt"> </FONT>11.1 A, unless every <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party
entitled<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to the notice has consented to the plugging and abandonment<FONT STYLE="letter-spacing: 0.1pt">
</FONT>of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such well, in which event Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator
shall plug and abandon<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>for the account
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Completing Party. Upon the giving
of such notice, the provisions of Article 11 shall apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 10</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>REQUIRED WELLS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.1 Definition.
For the purpose of this Article, a well shall be deemed a Required Well if the Drilling<FONT STYLE="letter-spacing: -0.1pt"> </FONT>thereof<FONT STYLE="letter-spacing: 0.05pt">
</FONT>is required by a final order of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Appropriate<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Agency. Such an order shall be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>deemed final upon expiration<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the time allowed for appeal therefrom<FONT STYLE="letter-spacing: 0.3pt">
</FONT>without<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the commencement<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of<FONT STYLE="letter-spacing: -0.25pt">
</FONT>appropriate appeal proceedings or, if<FONT STYLE="letter-spacing: -0.35pt"> </FONT>such proceedings<FONT STYLE="letter-spacing: -0.15pt">
</FONT>are commenced<FONT STYLE="letter-spacing: 0.05pt"> </FONT>within<FONT STYLE="letter-spacing: -0.25pt"> </FONT>said time,<FONT STYLE="letter-spacing: 0.1pt">
</FONT>upon the final disposition of the appeal. Whenever Unit Operator receives any such order, it shall promptly mail a copy
thereof to<FONT STYLE="letter-spacing: -0.3pt"> </FONT>each Party.<FONT STYLE="letter-spacing: -0.5pt"> </FONT>If<FONT STYLE="letter-spacing: -0.5pt">
</FONT>any such order is<FONT STYLE="letter-spacing: -0.35pt"> </FONT>appealed, the Party appealing shall give prompt notice thereof
to Unit Operator and to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>each of the other Parties, and, upon final disposition of
the appeal, Unit Operator shall give each <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party prompt notice of the result thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.2 Election<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to Drill. Any Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>desiring<FONT STYLE="letter-spacing: -0.15pt"> </FONT>to
Drill, or to participate<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the Drilling of, a Required Well<FONT STYLE="letter-spacing: -0.15pt">
</FONT>shall give to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: -0.25pt"> </FONT>notice
thereof within thirty (30)<FONT STYLE="letter-spacing: -0.25pt"> </FONT>days after the order requiring such well becomes<FONT STYLE="letter-spacing: -0.15pt">
</FONT>final or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>within such lesser time as may be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>required<FONT STYLE="letter-spacing: -0.35pt"> </FONT>to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>insure compliance
with such order. If such notice is given <FONT STYLE="letter-spacing: 0.3pt"> </FONT>within said period, Unit Operator<FONT STYLE="letter-spacing: -0.3pt">
</FONT>shall Drill <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Required Well for the account of the Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>or Parties<FONT STYLE="letter-spacing: -0.2pt"> </FONT>giving such notice; provided, however, if<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Required Well is a Development Well, it shall not be<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Drilled unless it receives
the Approval <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of the Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>within the
participating area involved. All rights<FONT STYLE="letter-spacing: -0.3pt"> </FONT>and obligations<FONT STYLE="letter-spacing: 0.05pt">
</FONT>with respect to the ownership<FONT STYLE="letter-spacing: -0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such
well, the operating rights<FONT STYLE="letter-spacing: -0.1pt"> </FONT>therein, the Production therefrom,<FONT STYLE="letter-spacing: -0.2pt">
</FONT>and the bearing of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Costs incurred<FONT STYLE="letter-spacing: -0.1pt"> </FONT>therein<FONT STYLE="letter-spacing: -0.05pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.1pt"> </FONT>be<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the same as if<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>had been Drilled under Article 8, if the same is a Development Well,
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or under Article 9, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>if the same is an
Exploratory Well or a Subsequent Test Well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.3 Alternatives<FONT STYLE="letter-spacing: -0.5pt">
</FONT>to Drilling.<FONT STYLE="letter-spacing: -0.45pt"> </FONT>If no Party<FONT STYLE="letter-spacing: -0.25pt"> </FONT>elects
to Drill a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Required Well within<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the period
allowed for such election,<FONT STYLE="letter-spacing: -0.45pt"> </FONT>and if<FONT STYLE="letter-spacing: -0.25pt"> </FONT>any
of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the following alternatives is available,<FONT STYLE="letter-spacing: -0.15pt">
</FONT>the first such alternative<FONT STYLE="letter-spacing: -0.2pt"> </FONT>which is available shall be followed:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Compensatory<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Royalties.<FONT STYLE="letter-spacing: -0.4pt"> </FONT>If<FONT STYLE="letter-spacing: -0.3pt"> </FONT>compensatory royalties<FONT STYLE="letter-spacing: -0.2pt">
</FONT>may be paid in lieu of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Drilling the well and if payment thereof receives, within
said period, the Approval of the Parties who would be chargeable with the Costs <FONT STYLE="letter-spacing: 0.05pt"> </FONT>incurred
in Drilling the well <FONT STYLE="letter-spacing: 0.1pt"> </FONT>if the well <FONT STYLE="letter-spacing: 0.05pt"> </FONT>were
Drilled as <FONT STYLE="letter-spacing: 0.15pt"> </FONT>provided in Section 10.4, Unit Operator shall <FONT STYLE="letter-spacing: 0.1pt">
</FONT>pay<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such compensatory royalties<FONT STYLE="letter-spacing: -0.35pt"> </FONT>for<FONT STYLE="letter-spacing: 0.1pt">
</FONT>the account of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>said Parties; or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Contraction.<FONT STYLE="letter-spacing: -0.35pt">
</FONT>If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Drilling<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of the well may
be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>avoided, without<FONT STYLE="letter-spacing: -0.1pt"> </FONT>other <FONT STYLE="letter-spacing: 0.3pt">
</FONT>penalty, by contraction of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the Unit Area, Unit <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Operator shall make a reasonable<FONT STYLE="letter-spacing: 0.1pt"> </FONT>effort to effect such contraction; or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Termination.
If the Required <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Well is a Subsequent Test Well, the Parties shall join <FONT STYLE="letter-spacing: 0.1pt">
</FONT>in termination of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit Agreement in accordance with its provisions.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">10.4 Required Drilling.<FONT STYLE="letter-spacing: -0.45pt">
</FONT>If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>none of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the foregoing alternatives
is<FONT STYLE="letter-spacing: -0.05pt"> </FONT>available,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit Operator shall Drill
the Required Well under whichever of the following provisions is applicable:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Development
Well. If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Required Well is a Development<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Well,
it shall be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Drilled by Unit Operator for the account of all Parties within the participating
area in which the well is Drilled;<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Exploratory
Well. If<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Required Well is an Exploratory<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Well,
the Drilling<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Block for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such well shall
consist of all forty (40) acre subdivisions and lots of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Public Land Survey <FONT STYLE="letter-spacing: 0.15pt">
</FONT>of which more than one-half <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
surface area is within a distance of 2,640 feet from the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>proposed bottom <FONT STYLE="letter-spacing: 0.15pt">
</FONT>hole location of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well, but
excluding therefrom all lands within any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>participating<FONT STYLE="letter-spacing: -0.1pt">
</FONT>area theretofore</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">7</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980<FONT STYLE="letter-spacing: 0.15pt">
</FONT>(Page 8 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">established for the pool<FONT STYLE="letter-spacing: -0.4pt">
</FONT>or zone<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to which the well is to be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Drilled.
Unit Operator shall Drill such well for<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the account of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>all the Parties owning Committed<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Working Interests within<FONT STYLE="letter-spacing: -0.2pt">
</FONT>the Drilling Block, on an Acreage Basis among <FONT STYLE="letter-spacing: 0.1pt"> </FONT>themselves; and no such Party
shall have the right to elect not to participate in the Drilling of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>said well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 11</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>DEEPENING, PLUGGING BACK, AND ABANDONMENT</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.1 Attempted
Deepening or Plugging<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Back. The attempted Deepening or Plugging<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Back of wells not completed as producers <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>unitized substances at their <FONT STYLE="letter-spacing: 0.05pt"> </FONT>original<FONT STYLE="letter-spacing: 0.1pt"> </FONT>projected
depths shall be<FONT STYLE="letter-spacing: -0.25pt"> </FONT>governed <FONT STYLE="letter-spacing: 0.3pt"> </FONT>by the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>following <FONT STYLE="letter-spacing: 0.05pt"> </FONT>provisions of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Section
11.1 and by the provisions<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Section
11.2, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>unless every Party entitled<FONT STYLE="letter-spacing: -0.4pt"> </FONT>to<FONT STYLE="letter-spacing: -0.05pt">
</FONT>the notice provided for<FONT STYLE="letter-spacing: 0.05pt"> </FONT>in Subdivision<FONT STYLE="letter-spacing: -0.1pt">
</FONT>A of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>this Section 11.1 has consented to<FONT STYLE="letter-spacing: -0.05pt">
</FONT>the plugging and abandonment of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>well:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Notice by Unit
Operator. Before abandoning<FONT STYLE="letter-spacing: -0.5pt"> </FONT>any well which has been Drilled to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>its original projected <FONT STYLE="letter-spacing: 0.15pt"> </FONT>depth but <FONT STYLE="letter-spacing: 0.1pt"> </FONT>not
completed as a producer of unitized<FONT STYLE="letter-spacing: 0.3pt"> </FONT>substances, Unit <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Operator shall give notice of its intention<FONT STYLE="letter-spacing: -0.4pt"> </FONT>to<FONT STYLE="letter-spacing: 0.05pt">
</FONT>plug and abandon such well to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>each Drilling Party and Non-Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Right to Initiate
Proposal. Each Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>who participated in the Drilling of a well<FONT STYLE="letter-spacing: 0.15pt">
</FONT>concerning which notice <FONT STYLE="letter-spacing: 0.05pt"> </FONT>is g1ven in accordance with <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Subdivision A of this Section 11.1 and any other Party owning a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Committed<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Working Interest in the tract of land on which the well is<FONT STYLE="letter-spacing: -0.25pt"> </FONT>located may initiate
a proposal to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>attempt to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Deepen or<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Plug Back such well; provided, however, if the well was Drilled as a Development Well, a proposal <FONT STYLE="letter-spacing: 0.3pt">
</FONT>to Deepen <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or Plug <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Back may be
initiated only by a Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>owning a Committed Working Interest in the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>tract of land on which the well is located.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Right to Participate.
In order to be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>entitled<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to participate<FONT STYLE="letter-spacing: -0.35pt">
</FONT>in a Deepening or Plugging Back operation, a Party must have the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>right to initiate
the same or must own a Committed Working Interest<FONT STYLE="letter-spacing: 0.1pt"> </FONT>in the Drilling<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Block theretofore<FONT STYLE="letter-spacing: 0.1pt"> </FONT>established for Drilling the well involved; if no Drilling
Block was theretofore<FONT STYLE="letter-spacing: -0.15pt"> </FONT>established for Drilling<FONT STYLE="letter-spacing: -0.35pt">
</FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well, the Drilling<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Block for
such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Deepening<FONT STYLE="letter-spacing: -0.45pt"> </FONT>or Plugging Back operation
shall be established automatically in accordance with the provisions of Subdivision B of Section 10.4, which shall be applicable<FONT STYLE="letter-spacing: -0.4pt">
</FONT>hereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Time and Manner
of Initiating Proposal.<FONT STYLE="letter-spacing: -0.3pt"> </FONT>A period of twenty-four (24) hours (exclusive of Saturdays,
Sundays,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>and holidays)<FONT STYLE="letter-spacing: -0.05pt"> </FONT>from and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>after receipt of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the notice given pursuant<FONT STYLE="letter-spacing: 0.05pt">
</FONT>to Subdivision A of this Section 11.1 shall be allowed within which <FONT STYLE="letter-spacing: 0.15pt"> </FONT>a Party
entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to do so may initiate a proposal <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to
Deepen or Plug <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Back. Any such proposal <FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall
be initiated by giving notice thereof to Unit Operator and to each Party entitled to participate in the proposed operation. If
no such proposal is initiated within said period, Unit Operator shall plug and abandon the well for the account of the Completing
Party if<FONT STYLE="letter-spacing: -0.45pt"> </FONT>a Completion attempt was made or, if not, then for the account of the Drilling<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Election. If
a proposal to Deepen or Plug Back a well is initiated, each <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Party entitled to participate
in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the operation proposed shall have a period of forty-eight (48) hours (exclusive
of Saturdays, Sundays,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>holidays) from
and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>after receipt of such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>proposal within
which to notify Unit Operator<FONT STYLE="letter-spacing: -0.5pt"> </FONT>whether<FONT STYLE="letter-spacing: -0.25pt"> </FONT>or<FONT STYLE="letter-spacing: -0.05pt">
</FONT>not it elects to participate in the proposed operation.<FONT STYLE="letter-spacing: -0.4pt"> </FONT>The failure of<FONT STYLE="letter-spacing: -0.4pt">
</FONT>a Party to<FONT STYLE="letter-spacing: -0.35pt"> </FONT>signify its election within said 48-hour period shall be<FONT STYLE="letter-spacing: -0.25pt">
</FONT>deemed an election<FONT STYLE="letter-spacing: 0.15pt"> </FONT>not to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>participate
in the proposed operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Effect<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of Election. The Party<FONT STYLE="letter-spacing: -0.4pt"> </FONT>or Parties<FONT STYLE="letter-spacing: 0.3pt"> </FONT>electing
to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participate in an operation<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to Deepen
or Plug Back a well<FONT STYLE="letter-spacing: 0.1pt"> </FONT>as<FONT STYLE="letter-spacing: 0.15pt"> </FONT>above provided shall<FONT STYLE="letter-spacing: -0.4pt">
</FONT>constitute the Participating Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>for<FONT STYLE="letter-spacing: -0.3pt">
</FONT>such operation. Each Party who was entitled to make such election but failed to do so as <FONT STYLE="letter-spacing: 0.05pt">
</FONT>above provided shall be a Non-Participating Party with respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.1pt">
</FONT>such operation.<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Such operation<FONT STYLE="letter-spacing: -0.2pt"> </FONT>shall
be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>conducted by Unit Operator for the account of the Party<FONT STYLE="letter-spacing: -0.4pt">
</FONT>or<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>constituting the Participating
Party, on an Acreage Basis among themselves,<FONT STYLE="letter-spacing: -0.45pt"> </FONT>subject, however, to the provisions of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Section <FONT STYLE="letter-spacing: 0.1pt"> </FONT>11.2 and Section 11.3. If<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the
Party or Parties making<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>election do
not proceed with the operation, the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs incurred in plugging and abandoning the well
shall be charged and borne as part of the Costs incurred in Drilling the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Rights and Obligations
of Participating Party and Non-Participating Party. Upon the commencement of a Deepening or Plugging Back operation otherwise than
for the account of all Parties entitled to participate therein, the provisions of Article 12 shall be applicable to such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.2 Deepening<FONT STYLE="letter-spacing: -0.4pt">
</FONT>or Plugging<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Back to Participating Area. If<FONT STYLE="letter-spacing: -0.2pt">
</FONT>a well within<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the surface boundaries of a participating<FONT STYLE="letter-spacing: -0.3pt">
</FONT>area is to be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Deepened or Plugged Back to the pool<FONT STYLE="letter-spacing: 0.1pt">
</FONT>or zone<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for which such participating area <FONT STYLE="letter-spacing: 0.3pt">
</FONT>was established, such operation,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>including<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Completion<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of such well, may be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>conducted
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>only if<FONT STYLE="letter-spacing: -0.2pt"> </FONT>it receives the Approval of the
Parties within such participating area, and only upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such terms and conditions as
may be<FONT STYLE="letter-spacing: -0.2pt"> </FONT>specified in such Approval,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>and
upon such further terms and conditions<FONT STYLE="letter-spacing: -0.35pt"> </FONT>as may be agreed to by the Parties owning interests
in the well immediately prior <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to the commencement of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>any such Deepening or Plugging Back operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.3 Conflicts.
If conflicting<FONT STYLE="letter-spacing: 0.1pt"> </FONT>elections<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to attempt to Deepen
or Plug Back are made in accordance with the provisions of this Article 11, preference shall be given first to <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Deepening. However, if a Deepening attempt does not result<FONT STYLE="letter-spacing: 0.1pt"> </FONT>in completion of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the well as a producer of unitized substances, Unit Operator<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall again give
notice in accordance with Subdivision A<FONT STYLE="letter-spacing: -0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Section
11.1 before plugging and abandoning the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.4 Attempted<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Completion. Except as otherwise<FONT STYLE="letter-spacing: -0.3pt"> </FONT>provided in Section 11.2, the attempted Completion
of a well Deepened or Plugged Back to the depth projected <FONT STYLE="letter-spacing: 0.15pt"> </FONT>for such Deepening<FONT STYLE="letter-spacing: 0.1pt">
</FONT>or Plugging Back operation shall be governed by the provisions of Section 9.3, unless every Participating Party has</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">8</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 0.15pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 9 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">consented to the plugging<FONT STYLE="letter-spacing: -0.25pt">
</FONT>and abandonment<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>such well, in
which<FONT STYLE="letter-spacing: -0.45pt"> </FONT>event Unit<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Operator<FONT STYLE="letter-spacing: -0.1pt">
</FONT>shall plug and abandon the well for the account of the Participating Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.5 <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Abandonment of Producing Wells. A well completed as <FONT STYLE="letter-spacing: 0.3pt"> </FONT>a producer of unitized<FONT STYLE="letter-spacing: 0.3pt">
</FONT>substances within<FONT STYLE="letter-spacing: -0.15pt"> </FONT>a participating<FONT STYLE="letter-spacing: 0.1pt"> </FONT>area<FONT STYLE="letter-spacing: -0.05pt">
</FONT>shall<FONT STYLE="letter-spacing: 0.05pt"> </FONT>be abandoned<FONT STYLE="letter-spacing: -0.05pt"> </FONT>for plugging<FONT STYLE="letter-spacing: -0.2pt">
</FONT>if<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and when<FONT STYLE="letter-spacing: -0.15pt"> </FONT>abandonment thereof
receives the Approval<FONT STYLE="letter-spacing: -0.15pt"> </FONT>of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.2pt">
</FONT>within such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>participating area, subject,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>however, to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>provisions of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Section
11.6. The abandonment<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of a well completed as a producer<FONT STYLE="letter-spacing: 0.3pt">
</FONT>but not included in a participating area<FONT STYLE="letter-spacing: -0.2pt"> </FONT>shall be governed by the following
provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Consent<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Required.<FONT STYLE="letter-spacing: -0.5pt"> </FONT>Such well shall<FONT STYLE="letter-spacing: -0.15pt"> </FONT>not be
abandoned<FONT STYLE="letter-spacing: -0.05pt"> </FONT>for production<FONT STYLE="letter-spacing: -0.25pt"> </FONT>from the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>pool or zone in which it is Completed, except with the consent of all Parties then owning the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Abandonment
Procedure. If the abandonment of such well receives the Approval of the Parties who own the well but is not consented to by all
such Parties, Unit<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Operator shall<FONT STYLE="letter-spacing: 0.05pt"> </FONT>give
notice thereof to each Party,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>if any,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>then
having<FONT STYLE="letter-spacing: -0.05pt"> </FONT>an <FONT STYLE="letter-spacing: 0.05pt"> </FONT>interest<FONT STYLE="letter-spacing: 0.1pt">
</FONT>in the well who did <FONT STYLE="letter-spacing: 0.05pt"> </FONT>not join in such Approval. Any such non-joining Party who
objects to abandonment of the well (herein<FONT STYLE="letter-spacing: 0.15pt"> </FONT>called<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Non-Abandoning Party)<FONT STYLE="letter-spacing: 0.05pt"> </FONT>may give notice thereof to all <FONT STYLE="letter-spacing: 0.05pt">
</FONT>other Parties (herein called<FONT STYLE="letter-spacing: -0.45pt"> </FONT>Abandoning Parties)<FONT STYLE="letter-spacing: 0.3pt">
</FONT>then having interests in the well, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>provided such no lice is given<FONT STYLE="letter-spacing: -0.35pt">
</FONT>within<FONT STYLE="letter-spacing: -0.15pt"> </FONT>thirty (30) days<FONT STYLE="letter-spacing: -0.45pt"> </FONT>after
receipt of the notice given by Unit Operator.<FONT STYLE="letter-spacing: -0.05pt"> </FONT>If such objection is so<FONT STYLE="letter-spacing: 0.05pt">
</FONT>made, the Non-Abandoning Party or Parties<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall forthwith pay to the Abandoning
Parties their respective shares of the Salvage Value<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of the well. Upon <FONT STYLE="letter-spacing: 0.1pt">
</FONT>the making of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>such payment,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the
Abandoning Parties shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>deemed to have<FONT STYLE="letter-spacing: 0.05pt">
</FONT>relinquished to the Non-Abandoning Party or Parties<FONT STYLE="letter-spacing: -0.15pt"> </FONT>all their operating<FONT STYLE="letter-spacing: -0.2pt">
</FONT>rights<FONT STYLE="letter-spacing: -0.2pt"> </FONT>and working interest in the well, but <FONT STYLE="letter-spacing: 0.3pt">
</FONT>only with respect<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>pool or
zone in which it is then Completed, and all their<FONT STYLE="letter-spacing: 0.05pt"> </FONT>interest<FONT STYLE="letter-spacing: 0.1pt">
</FONT>in the materials<FONT STYLE="letter-spacing: -0.1pt"> </FONT>and equipment in or pertaining<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the well. If there<FONT STYLE="letter-spacing: 0.3pt"> </FONT>is more than one Non-Abandoning Party,<FONT STYLE="letter-spacing: -0.15pt">
</FONT>the interests so relinquished shall be owned by the Non-Abandoning Parties in the proportions which their respective interests<FONT STYLE="letter-spacing: 0.15pt">
</FONT>in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the well<FONT STYLE="letter-spacing: 0.05pt"> </FONT>bear to the total of
their interests therein immediately prior to such relinquishment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Rights and Obligations of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Non-Abandoning<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Party. After the relinquishment <FONT STYLE="letter-spacing: 0.1pt"> </FONT>above provided for, such well shall be operated
by Unit Operator<FONT STYLE="letter-spacing: -0.3pt"> </FONT>for the account<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of the
Non-Abandoning Party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>or Parties, who shall<FONT STYLE="letter-spacing: -0.1pt"> </FONT>own
all Production therefrom and shall bear<FONT STYLE="letter-spacing: -0.05pt"> </FONT>all Costs, Lease Burdens, and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>other burdens thereafter <FONT STYLE="letter-spacing: 0.05pt"> </FONT>incurred in operating the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>well and plugging<FONT STYLE="letter-spacing: -0.15pt"> </FONT>it when abandoned (unless<FONT STYLE="letter-spacing: -0.45pt">
</FONT>the well is taken<FONT STYLE="letter-spacing: -0.15pt"> </FONT>over for Deepening or Plugging<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Back as hereinafter<FONT STYLE="letter-spacing: -0.05pt"> </FONT>provided)<FONT STYLE="letter-spacing: -0.15pt"> </FONT>and
also <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Costs<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of any additional tankage,
flow <FONT STYLE="letter-spacing: 0.3pt"> </FONT>lines, or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>other facilities needed<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to measure separately<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the unitized substances<FONT STYLE="letter-spacing: 0.05pt">
</FONT>produced<FONT STYLE="letter-spacing: -0.15pt"> </FONT>from the well. Costs shall include an overhead<FONT STYLE="letter-spacing: -0.5pt">
</FONT>charge<FONT STYLE="letter-spacing: -0.05pt"> </FONT>computed at<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the highest
per well rate applicable<FONT STYLE="letter-spacing: -0.25pt"> </FONT>to the operation of a single producing well in accordance<FONT STYLE="letter-spacing: -0.3pt">
</FONT>with Exhibit 1, if such rate is provided.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Option to Repurchase
Materials. If a <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well taken over by the Non-Abandoning Party <FONT STYLE="letter-spacing: 0.1pt">
</FONT>or Parties<FONT STYLE="letter-spacing: -0.25pt"> </FONT>as above provided<FONT STYLE="letter-spacing: 0.1pt"> </FONT>is
abandoned<FONT STYLE="letter-spacing: -0.3pt"> </FONT>for plugging<FONT STYLE="letter-spacing: -0.45pt"> </FONT>within six (6)
months<FONT STYLE="letter-spacing: 0.05pt"> </FONT>after relinquishment <FONT STYLE="letter-spacing: 0.05pt"> </FONT>by the Abandoning
Parties of their interests therein, each<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Abandoning Party shall have the right at<FONT STYLE="letter-spacing: -0.4pt">
</FONT>its option to repurchase<FONT STYLE="letter-spacing: 0.3pt"> </FONT>that portion of the materials<FONT STYLE="letter-spacing: -0.1pt">
</FONT>and equipment<FONT STYLE="letter-spacing: 0.05pt"> </FONT>salvaged from the well which<FONT STYLE="letter-spacing: 0.05pt">
</FONT>is equal to the interest relinquished by it to the Non-Abandoning<FONT STYLE="letter-spacing: -0.25pt"> </FONT>Party or
Parties, at the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>value previously<FONT STYLE="letter-spacing: -0.3pt"> </FONT>fixed
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>therefor. Said option<FONT STYLE="letter-spacing: -0.1pt"> </FONT>may<FONT STYLE="letter-spacing: 0.05pt">
</FONT>be exercised<FONT STYLE="letter-spacing: -0.2pt"> </FONT>only by notice given<FONT STYLE="letter-spacing: -0.1pt"> </FONT>to
Unit<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Operator and to the Non-Abandoning Party or Parties within fifteen<FONT STYLE="letter-spacing: -0.25pt">
</FONT>(15) days<FONT STYLE="letter-spacing: -0.35pt"> </FONT>after receipt<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of the
notice given by Unit Operator pursuant to Section 11.6.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">11.6 Deepening
or Plugging Back Abandoned Producing Wells. Before plugging any <FONT STYLE="letter-spacing: 0.1pt"> </FONT>well authorized for
abandonment pursuant to Section 11.5, Unit Operator shall give notice to <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the Party
or Parties owning<FONT STYLE="letter-spacing: -0.45pt"> </FONT>Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working Interests
in the tract<FONT STYLE="letter-spacing: -0.2pt"> </FONT>of land upon which<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the well
is located, which Parties,<FONT STYLE="letter-spacing: -0.5pt"> </FONT>for the further purposes of this<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Section 11.6, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall<FONT STYLE="letter-spacing: -0.15pt"> </FONT>constitute<FONT STYLE="letter-spacing: -0.2pt">
</FONT>the Parties<FONT STYLE="letter-spacing: -0.05pt"> </FONT>entitled<FONT STYLE="letter-spacing: -0.15pt"> </FONT>to initiate
and participate<FONT STYLE="letter-spacing: 0.05pt"> </FONT>in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a proposed<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Deepening or Plugging<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Back operation. Within ten (10) days after receipt of said
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>notice, any such Party desiring the Deepening or Plugging Back of such <FONT STYLE="letter-spacing: 0.1pt">
</FONT>well shall give notice thereof to Unit<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Operator<FONT STYLE="letter-spacing: -0.3pt">
</FONT>and to each Party entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to participate<FONT STYLE="letter-spacing: -0.1pt">
</FONT>in the proposed operation; and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>all the provisions of<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Subdivisions<FONT STYLE="letter-spacing: -0.25pt"> </FONT>E, F, and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>G of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Section<FONT STYLE="letter-spacing: 0.05pt"> </FONT>11.1 shall apply<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in the
same<FONT STYLE="letter-spacing: -0.5pt"> </FONT>manner<FONT STYLE="letter-spacing: -0.05pt"> </FONT>as<FONT STYLE="letter-spacing: -0.25pt">
</FONT>if the proposed Deepening or Plugging Back <FONT STYLE="letter-spacing: 0.3pt"> </FONT>were a proposal<FONT STYLE="letter-spacing: -0.3pt">
</FONT>for the Drilling of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>an Exploratory<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Well,
subject,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>however,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>to the provisions<FONT STYLE="letter-spacing: -0.4pt">
</FONT>of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Section<FONT STYLE="letter-spacing: 0.05pt"> </FONT>11.2 and Section<FONT STYLE="letter-spacing: -0.15pt">
</FONT>11.3.<FONT STYLE="letter-spacing: -0.3pt"> </FONT>If no Party<FONT STYLE="letter-spacing: 0.1pt"> </FONT>gives notice <FONT STYLE="letter-spacing: 0.3pt">
</FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>desire<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to Deepen or Plug Back
such well within<FONT STYLE="letter-spacing: -0.2pt"> </FONT>said period often (<FONT STYLE="letter-spacing: 0.05pt"> </FONT>10)<FONT STYLE="letter-spacing: 0.3pt">
</FONT>day. or if<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such notice<FONT STYLE="letter-spacing: -0.2pt"> </FONT>is given
but no party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>elects<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to proceed with the
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Deepening<FONT STYLE="letter-spacing: -0.4pt"> </FONT>or Plugging Back of the well
within the time specified therefor,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Unit<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.15pt">
</FONT>shall plug and abandon the well for the account of the Party or Parties owning<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the
well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 12</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RIGHTS AND OBLIGATIONS OF DRILLING
PARTY AND NON-DRILLING PARTY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.1 Use of Terms.
As used in this<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Article, the terms &quot;Drilling<FONT STYLE="letter-spacing: -0.4pt">
</FONT>Party&quot; and &quot;Non-Drilling Party&quot;<FONT STYLE="letter-spacing: -0.1pt"> </FONT>are to be <FONT STYLE="letter-spacing: 0.3pt">
</FONT>understood as including &quot;Completing<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Party&quot; and &quot;Non-Completing<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Party&quot; and &quot;Participating Party&quot;<FONT STYLE="letter-spacing: -0.2pt"> </FONT>and &quot;Non-Participating
Party&quot;, respectively, as such terms are used in Articles<FONT STYLE="letter-spacing: 0.3pt"> </FONT>8, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>9, and 11.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.2 <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Scope<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of Article. The rights and obligations of the Drilling Party<FONT STYLE="letter-spacing: -0.45pt">
</FONT>and Non-Drilling Party with respect to any Drilling, Deepening, Plugging Back,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>or
Completion operation conducted otherwise than for the account of <FONT STYLE="letter-spacing: 0.1pt"> </FONT>all Parties entitled
to participate therein shall be governed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>by the succeeding provisions<FONT STYLE="letter-spacing: 0.05pt">
</FONT>of this Article 12.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.3 Relinquishment<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of Interest<FONT STYLE="letter-spacing: 0.15pt"> </FONT>by Non-Drilling Party. When any Drilling, Deepening,<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Plugging Back, or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Completion operation is conducted otherwise than for the account
of all Parties entitled to participate therein, each Non-Drilling Party, upon <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
commencement of such <FONT STYLE="letter-spacing: 0.1pt"> </FONT>operation, shall <FONT STYLE="letter-spacing: 0.05pt"> </FONT>be
deemed to have relinquished to the Drilling<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party, and the Drilling Party shall own,
all such Non-</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">9</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)'</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 10 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Drilling Party's operating rights and
working interest in and to the well with respect to which such operation<FONT STYLE="letter-spacing: -0.3pt"> </FONT>was conducted.<FONT STYLE="letter-spacing: -0.3pt">
</FONT>In the case<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Deepening or Plugging<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Back operation,<FONT STYLE="letter-spacing: -0.1pt">
i</FONT>f a Non-Drilling Party in such operation owned an interest in the well immediately prior to the Deepening<FONT STYLE="letter-spacing: -0.15pt">
</FONT>or Plugging Back, then the Drilling<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>for that<FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall pay to<FONT STYLE="letter-spacing: 0.1pt">
</FONT>such Non-Drilling Party its share<FONT STYLE="letter-spacing: -0.45pt"> </FONT>of<FONT STYLE="letter-spacing: -0.05pt">
</FONT>the Salvage <FONT STYLE="letter-spacing: 0.1pt">Value</FONT> of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the well, such
payment to be made at the time the well is taken<FONT STYLE="letter-spacing: -0.4pt"> </FONT>over by the Drilling Party for Deepening<FONT STYLE="letter-spacing: 0.3pt">
</FONT>or Plugging Back.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.4 Reversion
of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Relinqu<FONT STYLE="letter-spacing: 0.1pt">i</FONT>shed Interest. If,<FONT STYLE="letter-spacing: 0.1pt">
</FONT>as a result of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any Drilling,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Deepening,
Plugging<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Back, or Completion operation conducted otherwise than for the account<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>all Parties<FONT STYLE="letter-spacing: -0.35pt"> </FONT>entitled<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to participate therein,<FONT STYLE="letter-spacing: -0.35pt"> </FONT>a<FONT STYLE="letter-spacing: -0.05pt"> </FONT>well
is<FONT STYLE="letter-spacing: -0.5pt"> </FONT>completed as a producer of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>unitized
substances<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and is<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Development<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Well<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or results in the
establishment<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>enlargement of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>a participating area to include <FONT STYLE="letter-spacing: 0.1pt"> </FONT>such well and if, by reason thereof, there is
included in such participating area any land <FONT STYLE="letter-spacing: 0.05pt"> </FONT>within<FONT STYLE="letter-spacing: 0.1pt">
</FONT>the Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block in which a Non-Drilling Party owns a<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Committed<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Working Interest,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>then
the operating rights and working interest<FONT STYLE="letter-spacing: 0.1pt"> </FONT>relinquished by<FONT STYLE="letter-spacing: -0.15pt">
</FONT>such Non-Drilling Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall revert<FONT STYLE="letter-spacing: -0.45pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>it at such time as the proceeds or market<FONT STYLE="letter-spacing: 0.05pt"> </FONT>value of<FONT STYLE="letter-spacing: -0.5pt">
</FONT>that<FONT STYLE="letter-spacing: -0.25pt"> </FONT>portion of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Production
obtained from <FONT STYLE="letter-spacing: 0.05pt"> t</FONT>he well after<FONT STYLE="letter-spacing: -0.5pt"> </FONT>such relinquishment<FONT STYLE="letter-spacing: -0.15pt">
</FONT>which is allocated to all the acreage of such Non-Drilling Party in the participating area involved (after deducting from
such proceeds or market<FONT STYLE="letter-spacing: 0.05pt"> </FONT>value <FONT STYLE="letter-spacing: 0.1pt"> </FONT>all Lease
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Burden and all taxes upon or measured by Production that are payable up to such time
on said portion of the<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Production from such well) shall equal the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>total of the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>following:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. 100% of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>that portion of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the Costs incurred in Equipping<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the well and in operating<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the well after such relinquishment, and up<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to<FONT STYLE="letter-spacing: -0.1pt"> </FONT>such time, that<FONT STYLE="letter-spacing: -0.3pt"> </FONT>would have been
charged to<FONT STYLE="letter-spacing: -0.1pt"> </FONT>such Non-Drilling Party had the well been Drilled, Deepened, Plugged Back,
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or Completed and Equipped for the account of all Parties<FONT STYLE="letter-spacing: 0.1pt">
</FONT>entitled to participate therein.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <U> 300</U>%
of that portion of the Costs <FONT STYLE="letter-spacing: 0.15pt"> </FONT>incurred in Drilling, Deepening, Plugging Back, or Completing
the well that<FONT STYLE="letter-spacing: -0.1pt"> </FONT>would have been charged to such Non-Drilling Party had the well been
Drilled, Deepened, Plugged back, or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Completed<FONT STYLE="letter-spacing: 0.05pt">
</FONT>and Equipped<FONT STYLE="letter-spacing: -0.2pt"> </FONT>for the account of all Parties entitled to participate<FONT STYLE="letter-spacing: -0.5pt">
</FONT>therein.</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">However, if a Deepening or Plugging
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Back operation is involved, then <FONT STYLE="letter-spacing: 0.3pt"> </FONT>(1) any
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>payment made to such Non-Drilling Party as its share of the Salvage<FONT STYLE="letter-spacing: -0.4pt">
</FONT>Value of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>the well in accordance <FONT STYLE="letter-spacing: 0.05pt"> </FONT>with
Section 12.3 shall be added to and deemed part of<FONT STYLE="letter-spacing: -0.05pt"> the</FONT> Costs incurred in operating
the well, for the purposes<FONT STYLE="letter-spacing: -0.45pt"> </FONT>of Subdivision A above, and (2) if<FONT STYLE="letter-spacing: -0.1pt">
</FONT>such Non-Drilling Party did not participate<FONT STYLE="letter-spacing: 0.1pt"> </FONT>in the initial Drilling<FONT STYLE="letter-spacing: -0.5pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>well, but the Drilling<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>did participate<FONT STYLE="letter-spacing: -0.45pt"> </FONT>therein,<FONT STYLE="letter-spacing: -0.3pt">
</FONT>and if<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the interest relinquished by such Non-Drilling Party upon the initial
Drilling of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the well had not reverted<FONT STYLE="letter-spacing: -0.1pt"> </FONT>to
it before such Deepening<FONT STYLE="letter-spacing: -0.4pt"> </FONT>or Plugging<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Back,
then, for the purposes of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>Subdivision<FONT STYLE="letter-spacing: 0.3pt"> </FONT>B<FONT STYLE="letter-spacing: -0.35pt">
</FONT>above, (i) where a Plugging<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Back is involved, there shall be added to and deemed
part of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.15pt"> </FONT>incurred in such Plugging
Back <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>then unrecovered portion of the
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs incurred in the initial Drilling of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the
well down to the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>pool<FONT STYLE="letter-spacing: -0.25pt"> </FONT>or zone in which
such well is completed as a producer of unitized substances as <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a <FONT STYLE="letter-spacing: 0.3pt">
</FONT>result of such Plugging Back, and (ii) where a Deepening is involved, there shall be added to and <FONT STYLE="letter-spacing: 0.1pt">
</FONT>deemed part of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs <FONT STYLE="letter-spacing: 0.15pt"> </FONT>incurred
in such Deepening the then unrecovered portion of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs incurred in the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>initial Drilling of the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.5 Effect of
Reversion. From and after reversion to a Non-Drilling<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Party of its relinquished interest
in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>a well,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>such Non-Drilling Party shall
share, on<FONT STYLE="letter-spacing: 0.1pt"> </FONT>an Acreage Basis, in<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the ownership
of the well, the operating rights and working interests therein, the materials and equipment<FONT STYLE="letter-spacing: -0.05pt">
</FONT>in or pertaining to the well, the Production therefrom, and the Costs of operating the well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.6 Rights and
Obligations of Drilling Party. The Drilling Party for whom a well <FONT STYLE="letter-spacing: 0.15pt"> </FONT>is Drilled, Deepened,
Plugged Back, or Completed shall pay and bear all Costs incurred<FONT STYLE="letter-spacing: -0.1pt"> </FONT>therein and shall
own the well and the materials and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>equipment in the well or pertaining thereto,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>subject to reversion to each Non-Drilling Party of its relinquished interest in the well. If the well is<FONT STYLE="letter-spacing: -0.25pt">
</FONT>a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Development<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Well<FONT STYLE="letter-spacing: -0.1pt">
</FONT>or results<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in the establishment<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or
enlargement<FONT STYLE="letter-spacing: -0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a participating<FONT STYLE="letter-spacing: -0.3pt">
</FONT>area to include the well, then, until <FONT STYLE="letter-spacing: 0.05pt"> </FONT>reversion<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to a Non-Drilling Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of its relinquished interest, the Drilling Party shall
own that portion of the Production obtained<FONT STYLE="letter-spacing: -0.5pt"> </FONT>from the well after such relinquishment<FONT STYLE="letter-spacing: -0.4pt">
</FONT>which is<FONT STYLE="letter-spacing: -0.25pt"> </FONT>allocated to all the acreage of such Non-Drilling Party in the participating
area involved and shall pay and bear (a) that<FONT STYLE="letter-spacing: -0.5pt"> </FONT>portion of the Costs incurred in operating<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the well that <FONT STYLE="letter-spacing: 0.3pt"> </FONT>otherwise<FONT STYLE="letter-spacing: -0.15pt"> </FONT>would be
chargeable<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>such Non-Drilling Party and
(b) all Lease Burdens that <FONT STYLE="letter-spacing: 0.05pt"> </FONT>are payable with respect to that<FONT STYLE="letter-spacing: -0.5pt">
</FONT>portion of the Production from such well which is allocated to the acreage<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.4pt">
</FONT>such Non-Drilling Party. If the Drilling<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Party includes two or more Parties,
the burdens imposed upon and the benefits accruing<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to<FONT STYLE="letter-spacing: -0.05pt">
</FONT>the Drilling Party shall be shared<FONT STYLE="letter-spacing: -0.5pt"> </FONT>by<FONT STYLE="letter-spacing: -0.35pt">
</FONT>such Parties on an Acreage Basis<FONT STYLE="letter-spacing: 0.1pt"> </FONT>among themselves.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.7 Accounting
Due Non-Drilling Party. In <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the event a relinquishment of interest by a Non Drilling
Party occurs pursuant to any provision <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of this Agreement with respect <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to any well and Production<FONT STYLE="letter-spacing: -0.45pt"> </FONT>is had from such well, Unit Operator shall furnish
each Non-Drilling Party, upon its request, all information referred to in Subdivision F of<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Section 16.1 and, in addition, the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>following:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. an itemized
statement<FONT STYLE="letter-spacing: -0.4pt"> </FONT>of the Costs of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the operation<FONT STYLE="letter-spacing: -0.05pt">
</FONT>in which the Non-Drilling Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>did not participate; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. until <FONT STYLE="letter-spacing: 0.1pt">
</FONT>reversion<FONT STYLE="letter-spacing: -0.3pt"> </FONT>occurs, a monthly itemized statement of the Costs incurred<FONT STYLE="letter-spacing: -0.25pt">
</FONT>in operating<FONT STYLE="letter-spacing: -0.25pt"> </FONT>said well, the quantity of Production obtained therefrom, the
proceeds received from the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>sale of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such
Production, and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Lease <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Burdens paid
with respect thereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.8 Stand-By Rig
Time. Stand-by time for the rig on a well for the period of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>time allowed for the initiation
of a proposal and for the response thereto shall be charged and borne as <FONT STYLE="letter-spacing: 0.15pt"> </FONT>part of the
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Costs incurred in the operation just completed. Stand-by time subsequent to said period
of time shall be charged to and borne as Costs incurred in the proposed operation, unless<FONT STYLE="letter-spacing: 0.05pt">
</FONT>no<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>elected to participate
therein.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">10</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 1 OA<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">12.9 Subsequently
Created Lease Burdens. Anything herein to the contrary notwithstanding, if, subsequent to the date of this Agreement, any <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Party shall create an overriding royalty, production payment, net proceeds interest, carried interest. or any other interest
out of its Committed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Working Interest and at any time become a Non-Drilling Party with
respect to any operation<FONT STYLE="letter-spacing: 0.1pt"> </FONT>conducted under this Agreement, then the Drilling Party entitled
to receive the share of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Production to which the Non-Drilling Party would otherwise<FONT STYLE="letter-spacing: -0.3pt">
</FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>entitled shall receive the same<FONT STYLE="letter-spacing: -0.35pt"> </FONT>free
and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>clear<FONT STYLE="letter-spacing: -0.45pt"> </FONT>of any <FONT STYLE="letter-spacing: 0.05pt">
</FONT>such burden, and the Non-Drilling Party who created<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such burden<FONT STYLE="letter-spacing: -0.45pt">
</FONT>shall hold the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilling Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>harmless<FONT STYLE="letter-spacing: 0.05pt">
</FONT>with respect thereto.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">l0A <FONT STYLE="letter-spacing: 0.3pt">
</FONT>(The next page is 11)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">ROCKY MOUNTAIN
UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Form 2 (Divided<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">February. 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>ARTICLE 13</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>ADJUSTMENT<FONT STYLE="letter-spacing: 0.3pt">
</FONT>ON ESTABLISHMENT OR CHANGE OF PARTICIPATING AREA</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.1 When Adjustment<FONT STYLE="letter-spacing: -0.05pt">
</FONT>l\lade. Whenever, in accordance<FONT STYLE="letter-spacing: -0.1pt"> </FONT>with the Unit Agreement,<FONT STYLE="letter-spacing: -0.1pt">
</FONT>a participating area IS established,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>or revised by<FONT STYLE="letter-spacing: -0.05pt">
</FONT>contraction<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or enlargement,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>and
whenever two or more participating areas are combined (the participating area <FONT STYLE="letter-spacing: 0.3pt"> </FONT>resulting
from such establishment,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>revision, or combination being hereinafter<FONT STYLE="letter-spacing: -0.35pt">
</FONT>referred to as a<FONT STYLE="letter-spacing: -0.1pt"> </FONT>&quot;resulting<FONT STYLE="letter-spacing: 0.1pt"> </FONT>area&quot;),
an adjustment<FONT STYLE="letter-spacing: -0.5pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>made in accordance<FONT STYLE="letter-spacing: -0.3pt">
</FONT>with the succeeding provisions of this Article 13, as of the date on which the establishment revision or combination<FONT STYLE="letter-spacing: 0.15pt">
</FONT>that creates such resulting area becomes effective, such date <FONT STYLE="letter-spacing: 0.1pt"> </FONT>being hereinafter
referred to as the &quot;effective date&quot; of such resulting area. For the purposes of<FONT STYLE="letter-spacing: -0.2pt">
</FONT>this Article 13, all Costs of a usable well shall be deemed to have been incurred on the date the well was Completed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.2 Definitions.<FONT STYLE="letter-spacing: 0.3pt">
</FONT>As used in this Article 13:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. <FONT STYLE="letter-spacing: 0.05pt">
</FONT>&quot;Usable well&quot; <FONT STYLE="letter-spacing: 0.15pt"> </FONT>within a resulting area means a well which <FONT STYLE="letter-spacing: 0.3pt">
</FONT>is either (1) completed in and capable of producing unitized substances from a <FONT STYLE="letter-spacing: 0.1pt"> </FONT>pool
or zone for which the resulting area was created or (2)<FONT STYLE="letter-spacing: 0.1pt"> </FONT>used as a<FONT STYLE="letter-spacing: 0.15pt">
</FONT>disposal well, injection well, or otherwise<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in connection with the production
of unitized substances from such resulting area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. &quot;Intangible
value&quot; of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>a usable well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>within<FONT STYLE="letter-spacing: -0.4pt">
</FONT>a resulting area <FONT STYLE="letter-spacing: 0.3pt"> </FONT>means the amount of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>those
Costs incurred in Drilling, Completing,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>and Equipping such well, down to the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>deepest pool or zone for which such resulting<FONT STYLE="letter-spacing: -0.1pt"> </FONT>area was created, which contribute<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the production of unitized substances therefrom and which are properly classified as intangible costs in <FONT STYLE="letter-spacing: 0.3pt">
</FONT>conformity with accounting practices <FONT STYLE="letter-spacing: 0.05pt"> </FONT>generally<FONT STYLE="letter-spacing: -0.15pt">
</FONT>accepted in the industry,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>reduced at the following rates<FONT STYLE="letter-spacing: -0.3pt">
</FONT>for each month during any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>part of which such well was operated prior to the
effective date of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such resulting area:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(1) <U> .5 </U>%<FONT STYLE="letter-spacing: 0.1pt">
</FONT>per month for a cumulative total of<FONT STYLE="letter-spacing: -0.25pt"> <U> 60 </U> months,</FONT><FONT STYLE="letter-spacing: 0.05pt">
</FONT>and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(2) <U>NONE</U>%<I>
</I>per month for each month in excess of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>said cumulative<FONT STYLE="letter-spacing: 0.05pt">
</FONT>total.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. &quot;Tangible<FONT STYLE="letter-spacing: -0.3pt">
</FONT>property&quot; serving<FONT STYLE="letter-spacing: -0.15pt"> </FONT>a resulting area <FONT STYLE="letter-spacing: 0.3pt">
</FONT>means any kind of tangible<FONT STYLE="letter-spacing: -0.3pt"> </FONT>property (whether or not in or pertaining to a well)
which has been acquired for use in or in connection with the production of unitized substances from such resulting<FONT STYLE="letter-spacing: -0.1pt">
</FONT>area or any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>portion thereof, and the cost of which has been charged as Costs
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>pursuant to this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. <FONT STYLE="letter-spacing: 0.15pt">
</FONT>&quot;Value&quot;<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of tangible property means the amount of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Costs incurred in the construction or installation thereof (except installation costs properly classified as part of the
intangible costs incurred in connection with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>a well), reduced, in the case of tangible
property which is generally regarded as depreciable, at the rate of<FONT STYLE="letter-spacing: -0.4pt"> <U> .50 </U></FONT>% per
month for each month during any part <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of which such well has <FONT STYLE="letter-spacing: 0.1pt">
</FONT>been operated prior <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>effective
date of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such resulting<FONT STYLE="letter-spacing: 0.1pt"> </FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.3 Method of
Adjustment<FONT STYLE="letter-spacing: -0.3pt"> </FONT>on Establishment<FONT STYLE="letter-spacing: 0.05pt"> </FONT>or Enlargement.<FONT STYLE="letter-spacing: -0.4pt">
</FONT>As promptly as reasonably possible <FONT STYLE="letter-spacing: 0.15pt"> </FONT>after the effective date of a resulting
area created by the establishment or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>enlargement of a participating area, and as of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>such effective date, an adjustment shall be made in accordance with <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the following
provisions, except to the extent otherwise specified in Section 13.6:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. The intangible
value<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of each usable well within such resulting area on the effective date thereof
shall be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>credited to the Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>or<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Parties owning such well<FONT STYLE="letter-spacing: -0.15pt"> </FONT>immediately prior to<FONT STYLE="letter-spacing: -0.35pt">
</FONT>such effective date, in proportion to their respective interests in such well immediately<FONT STYLE="letter-spacing: -0.25pt">
</FONT>prior to<FONT STYLE="letter-spacing: -0.35pt"> </FONT>such effective date. The total amount<FONT STYLE="letter-spacing: -0.2pt">
</FONT>so<FONT STYLE="letter-spacing: 0.1pt"> </FONT>credited as the intangible<FONT STYLE="letter-spacing: -0.05pt"> </FONT>value
of usable wells shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>charged to all Parties within the resulting area on an Acreage
Basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.1pt">
</FONT>The value of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>each item of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>tangible
property<FONT STYLE="letter-spacing: -0.5pt"> </FONT>serving<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the resulting<FONT STYLE="letter-spacing: -0.25pt">
</FONT>area <FONT STYLE="letter-spacing: 0.3pt"> </FONT>on the effective date thereof shall be credited <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to the Party or Parties owning such item immediately prior to such effective date, in proportion to their respective interests
in such item immediately prior to such effective date. The total amount<FONT STYLE="letter-spacing: -0.2pt"> </FONT>so<FONT STYLE="letter-spacing: -0.4pt">
</FONT>credited as the value of the tangible property shall be<FONT STYLE="letter-spacing: -0.35pt"> </FONT>charged to all Parties
within the resulting area on an <FONT STYLE="letter-spacing: 0.15pt">A</FONT>creage Basis.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. If<FONT STYLE="letter-spacing: -0.3pt">
</FONT>a resulting area, on the effective date thereof,<FONT STYLE="letter-spacing: -0.3pt"> </FONT>is<FONT STYLE="letter-spacing: -0.15pt">
</FONT>served by any tangible<FONT STYLE="letter-spacing: -0.3pt"> </FONT>property or usable well which also serves another participating
area or other participating areas, the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>value of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>such tangible<FONT STYLE="letter-spacing: 0.1pt"> </FONT>property and usable well (including the intangible value thereof
shall be determined in accordance with Subdivision D<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of<FONT STYLE="letter-spacing: -0.5pt">
</FONT>Section 13.2, and such value shall be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>fairly <FONT STYLE="letter-spacing: 0.15pt">
</FONT>apportioned between such resulting area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and such other participating<FONT STYLE="letter-spacing: -0.1pt">
</FONT>area or areas, provided that such apportionment receives the Approval of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the
Parties<FONT STYLE="letter-spacing: -0.45pt"> </FONT>in each participating area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>concerned.
That portion of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>the value of such tangible property and usable well (including the
intangible value thereof) which is so apportioned to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the resulting<FONT STYLE="letter-spacing: -0.45pt">
</FONT>area shall <FONT STYLE="letter-spacing: 0.1pt"> </FONT>be<FONT STYLE="letter-spacing: -0.25pt"> </FONT>included in the adjustment<FONT STYLE="letter-spacing: -0.15pt">
</FONT>made as of the effective date of such resulting area in the same manner as is <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the
value of tangible property serving only the resulting<FONT STYLE="letter-spacing: -0.15pt"> </FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. The credits
and charges<FONT STYLE="letter-spacing: -0.4pt"> </FONT>above provided for shall<FONT STYLE="letter-spacing: 0.1pt"> </FONT>be
made by Unit Operator<FONT STYLE="letter-spacing: 0.05pt"> </FONT>in such manner that an adjustment<FONT STYLE="letter-spacing: -0.5pt">
</FONT>shall be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>made for the intangible value of usable wells separate and apart from
an adjustment<FONT STYLE="letter-spacing: -0.1pt"> </FONT>for the value of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>tangible
property. On each such adjustment,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>each Party who<FONT STYLE="letter-spacing: 0.3pt">
</FONT>is<FONT STYLE="letter-spacing: -0.05pt"> </FONT>charged an amount in excess of the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>amount credited to it shall pay to Unit Operator the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>amount of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>such excess, which shall be <FONT STYLE="letter-spacing: 0.05pt"> </FONT>considered <FONT STYLE="letter-spacing: 0.15pt">
</FONT>as Costs chargeable to <FONT STYLE="letter-spacing: 0.3pt"> </FONT>such Party for all purposes of this Agreement;<FONT STYLE="letter-spacing: 0.1pt">
</FONT>and such amount, when received by Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator, shall be<FONT STYLE="letter-spacing: -0.1pt">
</FONT>distributed or credited to the Parties<FONT STYLE="letter-spacing: -0.5pt"> </FONT>who, in such adjustment,<FONT STYLE="letter-spacing: 0.1pt">
</FONT>are credited with amounts<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in<FONT STYLE="letter-spacing: 0.1pt"> </FONT>excess
of the amounts charged to them respectively.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.4 Method of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Adjustment on Contraction.<FONT STYLE="letter-spacing: -0.45pt"> </FONT>As promptly as reasonably<FONT STYLE="letter-spacing: -0.05pt">
</FONT>possible after<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the effective date of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a
contraction of a participating area, an adjustment shall be made with each Party owning a</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">11</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATINGAGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February. 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">Committed Working
Interest in land excluded from <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>participating
area by such contraction (such Committed Working Interest being hereinafter in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>this
Section referred to as &quot;excluded interest&quot;) in accordance with the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>following
provisions:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. An adjustment
for intangibles shall be made in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>accordance with Subdivision B of this Section 13.4,
and a<FONT STYLE="letter-spacing: 0.05pt"> </FONT>separate<FONT STYLE="letter-spacing: -0.35pt"> </FONT>adjustment<FONT STYLE="letter-spacing: -0.15pt">
</FONT>for tangibles shall be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>made in accordance with Subdivision C of this Section
13.4.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Such Party shall
be credited with the sum of (1) the total amount theretofore charged against<FONT STYLE="letter-spacing: -0.3pt"> </FONT>such Party<FONT STYLE="letter-spacing: 0.3pt">
</FONT>with respect <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to its excluded interest, pursuant<FONT STYLE="letter-spacing: -0.25pt">
</FONT>to the provisions of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Exhibit<FONT STYLE="letter-spacing: -0.3pt"> </FONT>1,
as intangible Costs incurred in the development and <FONT STYLE="letter-spacing: 0.15pt"> </FONT>operation<FONT STYLE="letter-spacing: 0.15pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the participating<FONT STYLE="letter-spacing: 0.15pt"> </FONT>area prior
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the effective date of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>such contraction,<FONT STYLE="letter-spacing: -0.4pt">
</FONT>plus (2)<FONT STYLE="letter-spacing: -0.25pt"> </FONT>the total amount charged against<FONT STYLE="letter-spacing: -0.5pt">
</FONT>such Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>with respect to such excluded interest as intangible value <FONT STYLE="letter-spacing: 0.15pt">
</FONT>of usable wells in any previous <FONT STYLE="letter-spacing: 0.1pt"> </FONT>adjustment or adjustments<FONT STYLE="letter-spacing: -0.1pt">
</FONT>made upon the establishment<FONT STYLE="letter-spacing: -0.15pt"> </FONT>or revision of such participating area.<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Such Party<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall be charged with the sum of (1) the market value of that portion
of the Production from such participating area <FONT STYLE="letter-spacing: 0.1pt"> </FONT>which, prior to the effective date of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>such contraction,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>was delivered to<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such
Party with respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such excluded interest,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>less the amount<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Lease Burdens<FONT STYLE="letter-spacing: -0.45pt">
</FONT>and taxes <FONT STYLE="letter-spacing: 0.15pt"> </FONT>paid or payable on said portion, plus <FONT STYLE="letter-spacing: 0.1pt">
</FONT>(2) the total amount credited to such Party with respect to such excluded interest<FONT STYLE="letter-spacing: -0.2pt">
</FONT>as intangible<FONT STYLE="letter-spacing: -0.15pt"> </FONT>value of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>usable
wells in any previous<FONT STYLE="letter-spacing: -0.5pt"> </FONT>adjustment or adjustments<FONT STYLE="letter-spacing: -0.1pt">
</FONT>made upon the establishment or revision of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>such participating area.<FONT STYLE="letter-spacing: -0.5pt">
</FONT>Any difference between the amount of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>said credit and the amount of said charge
shall be adjusted as hereinafter provided.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Such Party shall
be credited with the sum of (1) the total amount theretofore charged against such Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>with
respect to its excluded interest, pursuant<FONT STYLE="letter-spacing: -0.25pt"> </FONT>to the provisions<FONT STYLE="letter-spacing: -0.45pt">
</FONT>of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Exhibit<FONT STYLE="letter-spacing: -0.3pt"> </FONT>1, as Costs other than
intangible<FONT STYLE="letter-spacing: -0.25pt"> </FONT>Costs incurred in the development and operation of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>participating area prior to the effective date of<FONT STYLE="letter-spacing: -0.4pt">
</FONT>such contraction, plus (2)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the total <FONT STYLE="letter-spacing: 0.15pt"> </FONT>amount<FONT STYLE="letter-spacing: -0.1pt">
</FONT>charged<FONT STYLE="letter-spacing: -0.1pt"> </FONT>against such Party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>with
respect to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>its excluded interest<FONT STYLE="letter-spacing: -0.2pt"> </FONT>as value
of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>tangible<FONT STYLE="letter-spacing: -0.3pt"> </FONT>property in any previous <FONT STYLE="letter-spacing: 0.05pt">
</FONT>adjustment or adjustments made upon <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>establishment or revision of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such participating area, plus (3) the excess, if<FONT STYLE="letter-spacing: -0.45pt">
</FONT>any, of the credit provided for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Subdivision<FONT STYLE="letter-spacing: -0.15pt">
</FONT>B of this Section 13.4 over the charge<FONT STYLE="letter-spacing: 0.1pt"> </FONT>provided for in said Subdivision B.<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Such Party<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>charged with the sum of(l) the excess, if any, of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the charge provided for in
said Subdivision B over the credit therein provided for, plus (2) the total amount<FONT STYLE="letter-spacing: -0.05pt"> </FONT>credited
to<FONT STYLE="letter-spacing: -0.1pt"> </FONT>such Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>with respect <FONT STYLE="letter-spacing: 0.1pt">
</FONT>to its excluded interest<FONT STYLE="letter-spacing: -0.15pt"> </FONT>as value of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>tangible
property in any previous<FONT STYLE="letter-spacing: 0.15pt"> </FONT>adjustment or adjustments made upon the establishment or revision
of such participating<FONT STYLE="letter-spacing: 0.05pt"> </FONT>area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. If<FONT STYLE="letter-spacing: -0.25pt">
</FONT>the charge provided for in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Subdivision<FONT STYLE="letter-spacing: -0.35pt">
</FONT>C<FONT STYLE="letter-spacing: -0.2pt"> </FONT>of this Section 13.4 is equal to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>or<FONT STYLE="letter-spacing: 0.05pt">
</FONT>greater<FONT STYLE="letter-spacing: -0.45pt"> </FONT>than<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the credit therein
provided for, no adjustment shall be made with such Party. However, if the credit provided for in said Subdivision<FONT STYLE="letter-spacing: -0.35pt">
</FONT>C is in excess of the charge therein<FONT STYLE="letter-spacing: -0.1pt"> </FONT>provided for,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>such excess shall be charged on an Acreage Basis <FONT STYLE="letter-spacing: 0.3pt"> </FONT>against Parties who remain
in the participating area after such contraction and shall be<FONT STYLE="letter-spacing: -0.35pt"> </FONT>paid by<FONT STYLE="letter-spacing: -0.4pt">
</FONT>said Parties to Unit Operator<FONT STYLE="letter-spacing: -0.25pt"> </FONT>upon receipt of invoices therefor. Such payments,
when received by Unit Operator, shall be paid by it to the Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>owning such excluded
interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.5 Ownership
of Wells and<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Tangible Property. From <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and
after the effective <FONT STYLE="letter-spacing: 0.05pt"> </FONT>date of a resulting area,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>all usable wells within<FONT STYLE="letter-spacing: -0.25pt"> </FONT>such resulting<FONT STYLE="letter-spacing: -0.05pt">
</FONT>area and all tangible<FONT STYLE="letter-spacing: 0.15pt"> </FONT>property serving<FONT STYLE="letter-spacing: -0.15pt">
</FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>resulting area shall be owned by<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the Parties within such area on<FONT STYLE="letter-spacing: 0.1pt"> </FONT>an Acreage Basis, except that (a)<FONT STYLE="letter-spacing: -0.1pt">
</FONT>in the case of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>tangible property<FONT STYLE="letter-spacing: -0.25pt"> </FONT>serving<FONT STYLE="letter-spacing: 0.05pt">
</FONT>a participating<FONT STYLE="letter-spacing: -0.25pt"> </FONT>area or participating<FONT STYLE="letter-spacing: -0.5pt">
</FONT>areas<FONT STYLE="letter-spacing: -0.1pt"> </FONT>in addition to the resulting<FONT STYLE="letter-spacing: -0.3pt"> </FONT>area,
only that undivided interest therein which is proportionate<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to that portion of<FONT STYLE="letter-spacing: -0.35pt">
</FONT>the value thereof which is included in the adjustment provided for shall be owned by the Parties within the resulting<FONT STYLE="letter-spacing: -0.05pt">
</FONT>area on an Acreage Basis, and (b) if<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>within the resulting area was a Non-Drilling Party for a well which is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>a usable
well within such resulting area on the effective date thereof, and if the relinquished<FONT STYLE="letter-spacing: -0.1pt"> </FONT>interest
of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>such Non-Drilling Party in such well has not reverted to it prior to<FONT STYLE="letter-spacing: 0.1pt">
</FONT>such effective date, the Drilling Party for such well<FONT STYLE="letter-spacing: -0.25pt"> </FONT>shall own the interest
therein that<FONT STYLE="letter-spacing: 0.3pt"> </FONT>would<FONT STYLE="letter-spacing: 0.3pt"> </FONT>otherwise be<FONT STYLE="letter-spacing: -0.3pt">
</FONT>owned by<FONT STYLE="letter-spacing: -0.4pt"> </FONT>such Non-Drilling Party<FONT STYLE="letter-spacing: 0.3pt"> </FONT>until
reversion to such Non-Drilling<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Party of its relinquished<FONT STYLE="letter-spacing: 0.1pt">
</FONT>interest in such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.6 Relinquished
Interest of Non-Drilling Parties. If the interest relinquished<FONT STYLE="letter-spacing: -0.15pt"> </FONT>by<FONT STYLE="letter-spacing: -0.05pt">
</FONT>a Non-Drilling Party in a well which <FONT STYLE="letter-spacing: 0.3pt"> </FONT>is a usable well within a resulting area
on the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>effective date thereof has not reverted to it prior to such effective date,
then insofar, but only insofar, as they <FONT STYLE="letter-spacing: 0.1pt"> </FONT>relate<FONT STYLE="letter-spacing: -0.25pt">
</FONT>to such well, the adjustments<FONT STYLE="letter-spacing: -0.45pt"> </FONT>provided !'or in Section 13.3 shall be<FONT STYLE="letter-spacing: -0.25pt">
</FONT>subject <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the following provisions,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>wherein
the sum of the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>intangible value of such well, plus the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>value of the tangible property in or pertaining thereto, is referred to as the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>&quot;value&quot;<FONT STYLE="letter-spacing: -0.05pt">
</FONT>of such well:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. The Drilling<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Party<FONT STYLE="letter-spacing: -0.05pt"> </FONT>for<FONT STYLE="letter-spacing: 0.1pt"> </FONT>such well shall be<FONT STYLE="letter-spacing: 0.1pt">
</FONT>charged with that part of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the value of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the well that would otherwise be chargeable to such Non-Drilling<FONT STYLE="letter-spacing: -0.25pt"> </FONT>Party with
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>respect to (1) such Non-Drilling Party's Committed<FONT STYLE="letter-spacing: -0.25pt">
</FONT>Working Interest<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Interests in the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>participating
area in which <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>well was Drilled, as
such participating<FONT STYLE="letter-spacing: -0.5pt"> </FONT>area existed when the Drilling of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the well was commenced, if<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the well was Drilled as a Development Well, or (2)
the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working Interest or Interests of such Non-Drilling Party which entitled
it to participate<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in the Drilling, Deepening, Plugging Back, or Completion<FONT STYLE="letter-spacing: -0.25pt">
</FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the well, if<FONT STYLE="letter-spacing: -0.15pt"> </FONT>it was Drilled,
Deepened, Plugged Back, or<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Completed <FONT STYLE="letter-spacing: 0.05pt"> </FONT>otherwise<FONT STYLE="letter-spacing: -0.4pt">
</FONT>than as a Development<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Well. However, such Non-Drilling Party shall <FONT STYLE="letter-spacing: 0.1pt">
</FONT>be<FONT STYLE="letter-spacing: -0.4pt"> </FONT>charged <FONT STYLE="letter-spacing: 0.15pt"> </FONT>with such part, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>if<FONT STYLE="letter-spacing: -0.45pt"> </FONT>any, of the value of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such <FONT STYLE="letter-spacing: 0.1pt">
</FONT>well as is chargeable to it, in accordance with Subdivisions<FONT STYLE="letter-spacing: 0.3pt"> </FONT>A<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and B<B> </B>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Section <FONT STYLE="letter-spacing: 0.3pt"> </FONT>13.3, with
respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>its Committed Working Interests
other than those referred to in ( 1) and (2)<FONT STYLE="letter-spacing: -0.2pt"> </FONT>above.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. If that part
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the value of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>such well which would have <FONT STYLE="letter-spacing: 0.05pt"> </FONT>been credited to such Non-Drilling Party if the
well had been Drilled, Deepened, Plugged Back, or Completed for the account of all Parties<FONT STYLE="letter-spacing: -0.35pt">
</FONT>entitled<FONT STYLE="letter-spacing: -0.15pt"> </FONT>to participate therein<FONT STYLE="letter-spacing: 0.3pt"> </FONT>exceeds
the amount provided in Subdivison A of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>this Section.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">13.6 to be<FONT STYLE="letter-spacing: 0.15pt">
</FONT>charged against the Drilling<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Party, such excess shall be<FONT STYLE="letter-spacing: 0.15pt">
</FONT>applied against the reimbursement</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>12</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">to which the Drilling<FONT STYLE="letter-spacing: -0.35pt">
</FONT>Party is entitled<FONT STYLE="letter-spacing: -0.1pt"> </FONT>out of Production that would otherwise<FONT STYLE="letter-spacing: 0.15pt">
</FONT>accrue to such Non-Drilling Party. Any balance of such excess over the amount<FONT STYLE="letter-spacing: 0.15pt"> </FONT>necessary
to complete such reimbursement shall be credited to such Non-Drilling Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 14</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUPERVISION OF OPERATIONS BY PARTIES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.1 Right of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Supervision. Each operation conducted by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: -0.25pt">
</FONT>under this Agreement or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Agreement shall be<FONT STYLE="letter-spacing: -0.4pt">
</FONT>subject to<FONT STYLE="letter-spacing: -0.1pt"> </FONT>supervision<FONT STYLE="letter-spacing: -0.3pt"> </FONT>and control
in accordance<FONT STYLE="letter-spacing: -0.25pt"> </FONT>with the succeeding provisions of this Article 14 by the Parties who
are chargeable with the Costs thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.2
Voting Control.<FONT STYLE="letter-spacing: -0.05pt"> </FONT>In the supervision of an operation conducted by Unit Operator, the
Parties chargeable<FONT STYLE="letter-spacing: -0.35pt"> </FONT>with the Costs of such operation<FONT STYLE="letter-spacing: -0.2pt">
</FONT>shall have the right to vote in proportion to their respective obligations for<FONT STYLE="letter-spacing: -0.35pt"> </FONT>such
Costs. The Parties having the right to vote on<FONT STYLE="letter-spacing: 0.1pt"> </FONT>any other matter shall vote thereon
on an Acreage Basis. Except as provided for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in the Unit Agreement and except as otherwise
specified in this Agreement (particular reference being made to Section 25.1, Section 27.1, and that portion of<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Section 11.5 relating to abandonment of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>producing wells outside of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>a participating area), the affirmative<FONT STYLE="letter-spacing: -0.15pt"> </FONT>vote of Parties having <U> 65 </U>%
or more of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the voting <FONT STYLE="letter-spacing: 0.1pt"> </FONT>power<FONT STYLE="letter-spacing: 0.3pt">
</FONT>on<FONT STYLE="letter-spacing: 0.1pt"> </FONT>any matter which is proper for action by<FONT STYLE="letter-spacing: -0.05pt">
</FONT>them shall be binding upon all Parties entitled to vote <FONT STYLE="letter-spacing: 0.1pt"> </FONT>thereon; provided,
however, if one Party voting in the affirmative has <U> 65 </U>% or more but less than <U> 75 </U>% of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the voting power, the affirmative<FONT STYLE="letter-spacing: 0.05pt"> </FONT>vote of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>such Party<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall not be binding<FONT STYLE="letter-spacing: 0.05pt"> </FONT>upon
the Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>entitled<FONT STYLE="letter-spacing: 0.3pt"> </FONT>to vote thereon unless
its vote is supported by the affirmative vote of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>at least one additional<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Party; and provided <FONT STYLE="letter-spacing: 0.3pt"> </FONT>further, that if one Party voting in the negative<FONT STYLE="letter-spacing: -0.05pt">
</FONT>or failing<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to vote has more than<FONT STYLE="letter-spacing: -0.15pt"> <U>
35 </U></FONT>% but less than 50% of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>the voting power, the affirmative vote of the
Parties having a majority of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the voting power shall be<FONT STYLE="letter-spacing: -0.2pt">
</FONT>binding<FONT STYLE="letter-spacing: -0.45pt"> </FONT>upon all Parties entitled<FONT STYLE="letter-spacing: -0.4pt"> </FONT>to
vote unless there is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>a negative<FONT STYLE="letter-spacing: -0.1pt"> </FONT>vote of
at least one additional Party.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>In the event only two Parties are entitled to vote,
the vote of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the one with the greater interest shall prevail. If only one Party is
entitled to vote, such Party's<FONT STYLE="letter-spacing: 0.1pt"> </FONT>vote shall control. A<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party failing<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to vote shall<FONT STYLE="letter-spacing: 0.3pt"> </FONT>not
be deemed to have voted either<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the affirmative or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>in the negative. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Any Approval or Direction provided for<FONT STYLE="letter-spacing: 0.3pt">
</FONT>in this Agreement<FONT STYLE="letter-spacing: -0.3pt"> </FONT>which receives the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>affirmative
vote above specified shall be deemed given by and shall be binding upon <FONT STYLE="letter-spacing: 0.15pt"> </FONT>all <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Parties entitled to vote thereon, except <FONT STYLE="letter-spacing: 0.1pt"> </FONT>where the vote of a larger percentage
is specifically required.</FONT></P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.3 Meetings.<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Any matter<FONT STYLE="letter-spacing: -0.35pt"> </FONT>which is proper for consideration<FONT STYLE="letter-spacing: -0.05pt">
</FONT>by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the Parties,<FONT STYLE="letter-spacing: -0.45pt"> </FONT>or any of them,
may be considered at a meeting held for that purpose. A meeting<FONT STYLE="letter-spacing: -0.05pt"> </FONT>may be called by Unit<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Operator at any time, and a meeting<FONT STYLE="letter-spacing: -0.35pt"> </FONT>shall be<FONT STYLE="letter-spacing: -0.1pt">
</FONT>called by Unit<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Operator upon written request of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>any Party having<FONT STYLE="letter-spacing: -0.5pt"> </FONT>voting power on any matter<FONT STYLE="letter-spacing: -0.2pt">
</FONT>to be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>considered<FONT STYLE="letter-spacing: 0.3pt"> </FONT>at the meeting.<FONT STYLE="letter-spacing: -0.1pt">
</FONT>At least ten (10) days in advance<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>each
meeting,<FONT STYLE="letter-spacing: -0.5pt"> </FONT>Unit Operator shall give each Party entitled to vote <FONT STYLE="letter-spacing: 0.1pt">
</FONT>thereat notice of the time, place, and purpose of the meeting. Unit Operator's<FONT STYLE="letter-spacing: 0.1pt"> </FONT>representative
shall be the Chairman of such meeting.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.4 Action Without
Meeting. In lieu of calling<FONT STYLE="letter-spacing: -0.25pt"> </FONT>a meeting, Unit Operator may submit<FONT STYLE="letter-spacing: -0.1pt">
</FONT>any matter which is proper for consideration by the Parties,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>or any of them,
by giving to each such Party notice, describing in adequate detail the matter so submitted. Each Party entitled to vote on any
matter so submitted<FONT STYLE="letter-spacing: -0.4pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.05pt"> </FONT>communicate<FONT STYLE="letter-spacing: -0.5pt">
</FONT>its vote thereon<FONT STYLE="letter-spacing: -0.15pt"> </FONT>to Unit Operator<FONT STYLE="letter-spacing: -0.25pt"> </FONT>within<FONT STYLE="letter-spacing: -0.2pt">
</FONT>such period as may be<FONT STYLE="letter-spacing: -0.25pt"> </FONT>designated in the notice given <FONT STYLE="letter-spacing: 0.15pt">
</FONT>by Unit <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Operator (which period shall be not less than ten (10) nor more than
thirty (30) days); provided, however, if, within ten (10)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>days after submission of
such matter, request<FONT STYLE="letter-spacing: -0.3pt"> </FONT>is made for a meeting<FONT STYLE="letter-spacing: -0.2pt"> </FONT>in
accordance with Section 14.3, such matter<FONT STYLE="letter-spacing: -0.3pt"> </FONT>shall be<FONT STYLE="letter-spacing: 0.15pt">
</FONT>considered<FONT STYLE="letter-spacing: 0.3pt"> </FONT>only at a meeting<FONT STYLE="letter-spacing: 0.05pt"> </FONT>called
for that purpose. If a meeting is not required, then, at the expiration of the period designated in the notice given by it, Unit
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Operator shall give to each Party entitled to vote thereon notice, stating the tabulation
and result of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>vote.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.5 Representatives.
Promptly after execution of this Agreement,<FONT STYLE="letter-spacing: -0.35pt"> </FONT>each Party,<FONT STYLE="letter-spacing: -0.35pt">
</FONT>by<FONT STYLE="letter-spacing: -0.25pt"> </FONT>notice to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>all other Parties,
shall designate a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>representative authorized to vote for such Party and may designate
an alternate authorized to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>vote<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for<FONT STYLE="letter-spacing: -0.35pt">
</FONT>such Party<FONT STYLE="letter-spacing: -0.15pt"> </FONT>in the absence of its representative. Any such designation of a
representative or alternate representative may be revoked at any time by notice given to all other Parties, provided such notice
designates<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a new representative<FONT STYLE="letter-spacing: -0.15pt"> </FONT>or alternate
representative, as the case may be.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.6 Audits. Audits
may be made of Unit Operator's records and books of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>account pertaining to operations
hereunder, as provided in Exhibit 1.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">14.7 Extraneous
Projects.<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Nothing contained<FONT STYLE="letter-spacing: -0.15pt"> </FONT>in this Agreement<FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall be deemed to authorize<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Parties, by vote or otherwise,<FONT STYLE="letter-spacing: -0.1pt">
</FONT>to act upon any matter or to authorize any expenditure<FONT STYLE="letter-spacing: -0.1pt"> </FONT>unless such matter or<FONT STYLE="letter-spacing: -0.05pt">
</FONT>expenditure relates to<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the conduct of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>operations
authorized by<FONT STYLE="letter-spacing: -0.25pt"> </FONT>the Unit Agreement or<FONT STYLE="letter-spacing: -0.1pt"> </FONT>this
Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 15</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>UNIT OPERATOR'S POWERS<FONT STYLE="letter-spacing: 0.3pt">
</FONT>AND RIGHTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.1 In General.
Subject to the limitations set forth in this Agreement, all operations<FONT STYLE="letter-spacing: 0.15pt"> </FONT>authorized by
the Unit Agreement and this Agreement shall be managed and conducted by Unit Operator.<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Unit
Operator shall <FONT STYLE="letter-spacing: 0.1pt"> </FONT>have exclusive custody of all materials, equipment, and any other property
used in connection with any operation within the Unit Area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.2 Employees.
All individuals<FONT STYLE="letter-spacing: -0.2pt"> </FONT>employed by Unit <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operator
in the conduct of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>operations<FONT STYLE="letter-spacing: -0.4pt"> </FONT>hereunder
shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the employees of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Unit Operator
alone; and their working hours, rates<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of compensation,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>and all other matters relating to their employment shall be determined solely by Unit Operator.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.3 Non-Liability.
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit Operator<FONT STYLE="letter-spacing: -0.15pt"> </FONT>shall not be liable to
any Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>for anything<FONT STYLE="letter-spacing: -0.25pt"> </FONT>done or omitted
to be done by it in the conduct <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of operations hereunder, except in case of bad faith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.4 Force Majeure.<FONT STYLE="letter-spacing: -0.25pt">
</FONT>The obligations<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit Operator
hereunder shall be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>suspended to the extent</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">13</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">that, and only<FONT STYLE="letter-spacing: 0.3pt">
</FONT>so<FONT STYLE="letter-spacing: -0.1pt"> </FONT>long<FONT STYLE="letter-spacing: 0.05pt"> </FONT>as, performance<FONT STYLE="letter-spacing: -0.3pt">
</FONT>thereof is<FONT STYLE="letter-spacing: -0.2pt"> </FONT>prevented<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by<FONT STYLE="letter-spacing: -0.3pt">
</FONT>fire, action of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the elements, strikes<FONT STYLE="letter-spacing: 0.1pt"> </FONT>or<FONT STYLE="letter-spacing: -0.1pt">
</FONT>other differences<FONT STYLE="letter-spacing: 0.15pt"> </FONT>with workmen, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>acts
of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>civil or military<FONT STYLE="letter-spacing: -0.45pt"> </FONT>authorities, acts
of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>the public enemy, restrictions or restraints imposed by<FONT STYLE="letter-spacing: -0.05pt">
</FONT>law or by regulation<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or<FONT STYLE="letter-spacing: 0.15pt"> </FONT>order of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>governmental<FONT STYLE="letter-spacing: -0.1pt"> </FONT>authority, whether<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Federal,<FONT STYLE="letter-spacing: -0.15pt">
</FONT>State, or<FONT STYLE="letter-spacing: -0.1pt"> </FONT>local, inability<FONT STYLE="letter-spacing: -0.15pt"> </FONT>to<FONT STYLE="letter-spacing: -0.3pt">
</FONT>obtain necessary rights of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>access, or<FONT STYLE="letter-spacing: 0.1pt"> </FONT>any
other cause reasonably<FONT STYLE="letter-spacing: -0.25pt"> </FONT>beyond the control of Unit Operator, whether or not similar
to any cause above enumerated. Whenever performance of its obligations<FONT STYLE="letter-spacing: 0.3pt"> </FONT>is prevented
by any such cause, Unit Operator shall give notice thereof to the Parties<FONT STYLE="letter-spacing: 0.15pt"> </FONT>as promptly
as is reasonably practicable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.5 Lien. Each
of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the Parties hereby grants<FONT STYLE="letter-spacing: -0.45pt"> </FONT>to Unit
Operator<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a lien upon its Committed Working Interests, its interest<FONT STYLE="letter-spacing: 0.1pt">
</FONT>in all jointly owned materials, equipment, and other<FONT STYLE="letter-spacing: 0.3pt"> </FONT>property,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and its interest in all Production, as security for payment of Costs chargeable to it,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>together with any interest payable thereon. In addition to Unit Operator's<FONT STYLE="letter-spacing: -0.25pt"> </FONT>rights
under the foregoing lien, and as a secured party, Unit Operator shall<FONT STYLE="letter-spacing: 0.1pt"> </FONT>be<FONT STYLE="letter-spacing: -0.3pt">
</FONT>entitled<FONT STYLE="letter-spacing: -0.15pt"> </FONT>to<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the benefit of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>any statutory operator's lien provided for<FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the jurisdiction in which the
Unit Area is located. Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator<FONT STYLE="letter-spacing: 0.15pt"> </FONT>may,
but need not, bring an action at law or in equity to enforce collection of such indebtedness, with or without foreclosure of<FONT STYLE="letter-spacing: -0.4pt">
</FONT>such lien, and, in addition,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>shall have all rights provided under the terms
of the Uniform Commercial Code or of any other law. In addition to the foregoing, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and
not in limitation thereof, upon default by any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party in the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>payment of Costs chargeable to it, Unit Operator shall have the right to collect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and
receive proceeds from the purchaser of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>such Party's share of Production,<FONT STYLE="letter-spacing: -0.45pt">
</FONT>up to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the amount<FONT STYLE="letter-spacing: -0.35pt"> </FONT>owing by<FONT STYLE="letter-spacing: -0.4pt">
</FONT>such Party,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>plus interest at the rate of <U> * </U>%<FONT STYLE="letter-spacing: -0.2pt">
</FONT>per annum<FONT STYLE="letter-spacing: 0.05pt"> </FONT>until paid. Each such purchaser shall be<FONT STYLE="letter-spacing: -0.4pt">
</FONT>entitled<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>rely upon Unit Operator's
statement concerning the existence and amount of any such default. None of the remedies or rights specified <FONT STYLE="letter-spacing: 0.05pt">
</FONT>above shall be deemed exclusive, and the exercise of any <FONT STYLE="letter-spacing: 0.1pt"> </FONT>such <FONT STYLE="letter-spacing: 0.15pt">
</FONT>remedy or right shall not be deemed an <FONT STYLE="letter-spacing: 0.3pt"> </FONT>election of remedies and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.1pt"> </FONT>not <FONT STYLE="letter-spacing: 0.05pt"> </FONT>affect enforceability
of the foregoing lien or security interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.6 Advances.
Unit Operator,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>at its election, shall have the right from time to<FONT STYLE="letter-spacing: 0.1pt">
</FONT>time to<FONT STYLE="letter-spacing: -0.35pt"> </FONT>demand and receive from <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Parties chargeable therewith payment in advance of their respective shares of the estimated amount of Costs <FONT STYLE="letter-spacing: 0.3pt">
</FONT>to be incurred during any month, which right may be exercised only by submission to each such Party<FONT STYLE="letter-spacing: -0.2pt">
</FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>a properly itemized statement<FONT STYLE="letter-spacing: -0.15pt"> </FONT>of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>such estimated<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Costs, together with an invoice for <FONT STYLE="letter-spacing: 0.05pt">
</FONT>its share thereof. Each such statement and invoice for the payment in advance of estimated Costs <FONT STYLE="letter-spacing: 0.15pt">
</FONT>for any month shall be submitted on or about the twentieth (20th) day <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of the
next preceding<FONT STYLE="letter-spacing: -0.2pt"> </FONT>month. The amount of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>each
such invoice shall be payable within fifteen (15)<FONT STYLE="letter-spacing: -0.1pt"> </FONT>days after receipt thereof and thereafter
shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>bear interest<FONT STYLE="letter-spacing: -0.4pt"> </FONT>at the rate of <U>
* </U>%<FONT STYLE="letter-spacing: -0.15pt"> </FONT>per annum<FONT STYLE="letter-spacing: 0.05pt"> </FONT>until paid. Proper adjustment
shall be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>made monthly between such advances<FONT STYLE="letter-spacing: -0.45pt"> </FONT>and
Costs, to the end that each Party shall bear and pay its proportionate<FONT STYLE="letter-spacing: -0.25pt"> </FONT>share<FONT STYLE="letter-spacing: 0.1pt">
</FONT>of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Costs incurred and no more. Unit Operator<FONT STYLE="letter-spacing: 0.15pt">
</FONT>may request<FONT STYLE="letter-spacing: 0.15pt"> </FONT>advance payment or security<FONT STYLE="letter-spacing: -0.4pt">
</FONT>for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the total estimated<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Costs to<FONT STYLE="letter-spacing: -0.05pt">
</FONT>be incurred in a particular Drilling,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Deepening, Plugging Back, or Completing
operation and, notwithstanding any other provisions of this Agreement, shall not be obligated to<FONT STYLE="letter-spacing: -0.1pt">
</FONT>commence such operation unless and until <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such advance <FONT STYLE="letter-spacing: 0.05pt">
</FONT>payment<FONT STYLE="letter-spacing: -0.25pt"> </FONT>is made or Unit Operator is furnished security acceptable to it for
such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>payment by the Party or Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>chargeable
therewith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.7 Use of Unit
Operator's Drilling Equipment. Any Drilling, Deepening, or Plugging <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Back operation<FONT STYLE="letter-spacing: -0.1pt">
</FONT>conducted hereunder may be conducted by Unit Operator with its own tools and equipment, provided that<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the rates to be<FONT STYLE="letter-spacing: -0.1pt"> </FONT>charged and the applicable<FONT STYLE="letter-spacing: 0.1pt">
</FONT>terms <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and conditions are set forth in a form of drilling<FONT STYLE="letter-spacing: -0.35pt">
</FONT>contract which receives the Approval of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Party<FONT STYLE="letter-spacing: -0.2pt">
</FONT>or Parties chargeable with the Costs of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>such operation,<FONT STYLE="letter-spacing: -0.1pt">
</FONT>except that in any case where Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Operator<FONT STYLE="letter-spacing: -0.3pt">
</FONT>alone constitutes<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Drilling Party,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such
form shall receive the Approval of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.25pt">
</FONT>within the participating area or<FONT STYLE="letter-spacing: 0.1pt"> </FONT>other designated area for such well prior <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to the commencement of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such operation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">15.8 Rights as
Party.<FONT STYLE="letter-spacing: 0.1pt"> </FONT>As an owner of a Committed Working Interest,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Party acting as Unit Operator<FONT STYLE="letter-spacing: -0.4pt"> </FONT>shall have the same rights and obligations<FONT STYLE="letter-spacing: -0.25pt">
</FONT>hereunder as if it were not Unit Operator.<FONT STYLE="letter-spacing: 0.1pt"> </FONT>In each instance<FONT STYLE="letter-spacing: -0.2pt">
</FONT>where this Agreement<FONT STYLE="letter-spacing: -0.45pt"> </FONT>requires or permits<FONT STYLE="letter-spacing: -0.5pt">
</FONT>a Party to give notice, consent, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or approval to Unit Operator, such notice,
consent, or approval<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall be deemed properly given by<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Party acting<FONT STYLE="letter-spacing: -0.3pt"> </FONT>as Unit Operator if and when given to all other Parties entitled
to give or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>receive such notice, consent, or approval. *2% above prime <FONT STYLE="letter-spacing: 0.3pt">
</FONT>rate as set by the Chase Manhattan Bank of New York City, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>New <FONT STYLE="letter-spacing: 0.1pt">
</FONT>York</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 16</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>UNIT OPERATOR'S DUTIES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.1 Specific Duties.
In the conduct of operations<FONT STYLE="letter-spacing: 0.15pt"> </FONT>hereunder, Unit Operator<FONT STYLE="letter-spacing: -0.35pt">
</FONT>shall:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Drilling<FONT STYLE="letter-spacing: -0.5pt">
</FONT>of Wells. Drill, Deepen, Plug Back, or Complete<FONT STYLE="letter-spacing: 0.05pt"> </FONT>a well or wells only in accordance
with the provisions of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Compliance with
Laws and<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Agreements. Comply <FONT STYLE="letter-spacing: 0.3pt"> </FONT>with the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>provisions of the Unit Agreement, all applicable Jaws and governmental regulations (whether Federal,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>State, or local), and Directions<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Parties pursuant to this <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Agreement. In case of<FONT STYLE="letter-spacing: -0.4pt">
</FONT>conflict between <FONT STYLE="letter-spacing: 0.3pt"> </FONT>such Directions and the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Agreement
or such <FONT STYLE="letter-spacing: 0.3pt"> l</FONT>aws or regulations, the provisions <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.1pt">
</FONT>the Unit Agreement or such laws <FONT STYLE="letter-spacing: 0.1pt"> </FONT>or regulations shall govern.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Consultation
with Parties. Consult freely with the Parties<FONT STYLE="letter-spacing: -0.35pt"> </FONT>within the area affected by any operation
hereunder and keep them advised of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>all matters arising in operations hereunder which
Unit Operator deems important, in the exercise of its best judgment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Payment of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Costs. Pay all costs incurred in<FONT STYLE="letter-spacing: 0.1pt"> </FONT>operations hereunder<FONT STYLE="letter-spacing: -0.1pt">
</FONT>promptly as<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and when due and payable and keep the Committed Working Interests<FONT STYLE="letter-spacing: -0.3pt">
</FONT>and all property used in connection with operations under this Agreement free from liens which may <FONT STYLE="letter-spacing: 0.1pt">
</FONT>be claimed for the payment of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such Costs, except any such lien which it <FONT STYLE="letter-spacing: 0.15pt">
</FONT>disputes, in which event Unit Operator may contest the disputed lien upon giving notice thereof to the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Parties<FONT STYLE="letter-spacing: 0.15pt"> </FONT>affected thereby.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">14</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Records. <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Keep full and accurate records of all Costs incurred and of all controllable materials and equipment, which records, and
receipts and vouchers in support thereof, shall be available for inspection by authorized employees<FONT STYLE="letter-spacing: -0.05pt">
</FONT>or agents<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of the Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>at reasonable<FONT STYLE="letter-spacing: -0.1pt">
</FONT>intervals during usual business hours at the office of Unit Operator.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">F. Information.
Furnish <FONT STYLE="letter-spacing: 0.3pt"> </FONT>promptly <I>to </I>each Party chargeable with Costs of the operation Involved
and to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>each additional Party who makes<FONT STYLE="letter-spacing: -0.25pt"> </FONT>timely
written<FONT STYLE="letter-spacing: 0.1pt"> </FONT>request therefor<FONT STYLE="letter-spacing: -0.15pt"> </FONT>(1) copies of
Unit Operator's authorizations for expenditures<FONT STYLE="letter-spacing: -0.05pt"> </FONT>or itemizations of<FONT STYLE="letter-spacing: -0.35pt">
</FONT>estimated expenditures in excess of <U>Twenty &ndash;Five Thousand</U> Dollars ($<U>25,000</U>),<FONT STYLE="letter-spacing: -0.1pt">
</FONT>(2) copies of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>all drilling reports,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>well
logs, and State and Federal reports, (3) samples of cores and cuttings taken<FONT STYLE="letter-spacing: -0.5pt"> </FONT>from wells
Drilled hereunder, to be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>delivered at the well in containers<FONT STYLE="letter-spacing: -0.45pt">
</FONT>furnished by<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the Party requesting same, and (4)<FONT STYLE="letter-spacing: -0.35pt">
</FONT>such other and additional information or<FONT STYLE="letter-spacing: 0.1pt"> </FONT>reports as may be<FONT STYLE="letter-spacing: 0.05pt">
</FONT>required<FONT STYLE="letter-spacing: -0.25pt"> </FONT>by<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Direction of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>the Parties<FONT STYLE="letter-spacing: -0.15pt"> </FONT>within the area aff'ected. If multiple<FONT STYLE="letter-spacing: 0.15pt">
</FONT>copies of any such materials are requested by any Party, Unit Operator may charge the cost thereof directly to the<FONT STYLE="letter-spacing: 0.15pt">
</FONT>requesting Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">G. Access to Unit
Area. Permit<FONT STYLE="letter-spacing: -0.4pt"> </FONT>each Party, through its authorized employees or agents,<FONT STYLE="letter-spacing: -0.5pt">
</FONT>but at such Party's<FONT STYLE="letter-spacing: -0.1pt"> </FONT>sole risk and expense, to have access to the Unit <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Area at all times and <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to the derrick floor <FONT STYLE="letter-spacing: 0.15pt">
</FONT>of each well Drilled or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>being Drilled <FONT STYLE="letter-spacing: 0.1pt"> </FONT>hereunder,
for the purpose of observing operations conducted hereunder and inspecting materials, equipment,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>or other property used in connection with operations under this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to have <FONT STYLE="letter-spacing: 0.1pt"> </FONT>access at reasonable
times <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to information and data in the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>possession
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of Unit Operator concerning Unit operations.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.2 Insurance.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Unit Operator's.
Unit Operator shall comply with the Workmen's Compensation<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Law<FONT STYLE="letter-spacing: -0.05pt">
</FONT>of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the State in which the Unit Area is located. Unit Operator shall also maintain<FONT STYLE="letter-spacing: -0.4pt">
</FONT>in<FONT STYLE="letter-spacing: 0.3pt"> </FONT>force at all times with respect to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>operations
hereunder<FONT STYLE="letter-spacing: -0.3pt"> </FONT>such other insurance, if any, as may be<FONT STYLE="letter-spacing: -0.2pt">
</FONT>required<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by<FONT STYLE="letter-spacing: -0.3pt"> </FONT>law. In addition, Unit
Operator shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>maintain<FONT STYLE="letter-spacing: -0.5pt"> </FONT>such other insurance,<FONT STYLE="letter-spacing: -0.35pt">
</FONT>if<FONT STYLE="letter-spacing: -0.5pt"> </FONT>any, as is<FONT STYLE="letter-spacing: -0.25pt"> </FONT>described in Exhibit
3<FONT STYLE="letter-spacing: -0.25pt"> </FONT>or<FONT STYLE="letter-spacing: -0.1pt"> </FONT>as receives the Approval of<FONT STYLE="letter-spacing: -0.15pt">
</FONT>the Parties from time to time. Unit Operator shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>carry no<FONT STYLE="letter-spacing: 0.05pt">
</FONT>other insurance<FONT STYLE="letter-spacing: -0.45pt"> </FONT>for the benefit of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the
Parties, except as above specified. Upon request of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>any Party, Unit Operator<FONT STYLE="letter-spacing: 0.1pt">
</FONT>shall furnish evidence of insurance carried by it with respect to operations<FONT STYLE="letter-spacing: -0.25pt"> </FONT>hereunder.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Contractors'.<FONT STYLE="letter-spacing: -0.25pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall require<FONT STYLE="letter-spacing: -0.5pt"> </FONT>all
contractors<FONT STYLE="letter-spacing: -0.5pt"> </FONT>engaged in operations<FONT STYLE="letter-spacing: 0.1pt"> </FONT>under
this Agreement to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>comply with the Workmen's Compensation<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Law of the State<FONT STYLE="letter-spacing: -0.4pt"> </FONT>in<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which the Unit
Area is located<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and to maintain such other insurance as may<FONT STYLE="letter-spacing: 0.05pt">
</FONT>be required by Direction of the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Automotive Equipment.
In the event Automobile<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Public Liability<FONT STYLE="letter-spacing: -0.35pt"> </FONT>insurance
is<FONT STYLE="letter-spacing: 0.1pt"> </FONT>specified in Exhibit<FONT STYLE="letter-spacing: 0.1pt"> </FONT>3 or subsequently
receives the Approval of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the Parties,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>no
direct charge shall be made by Unit <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operator for premiums paid for such insurance
for Unit Operator's fully owned automotive equipment.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.3 Non-Discrimination.
In<FONT STYLE="letter-spacing: 0.3pt"> </FONT>connection with the performance of work under this Agreement,<FONT STYLE="letter-spacing: -0.5pt">
</FONT>Unit Operator agrees to comply with<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the provisions of Exhibit 4. Unit Operator
agrees to insert non-discrimination<FONT STYLE="letter-spacing: 0.15pt"> </FONT>provisions in all subcontracts hereunder, as required
by law or regulation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.4 Drilling<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Contracts. Each Drilling, Deepening,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>Plugging<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Back, or Completing operation con&middot; ducted hereunder,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>and not performed
by Unit Operator<FONT STYLE="letter-spacing: -0.05pt"> </FONT>with its own tools and equipment<FONT STYLE="letter-spacing: -0.05pt">
</FONT>in accordance with Section 15. 7,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>shall be<FONT STYLE="letter-spacing: -0.1pt">
</FONT>performed by<FONT STYLE="letter-spacing: -0.1pt"> </FONT>a reputable drilling<FONT STYLE="letter-spacing: -0.1pt"> </FONT>contractor
having suitable<FONT STYLE="letter-spacing: 0.05pt"> </FONT>equipment and personnel,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>under
written<FONT STYLE="letter-spacing: -0.4pt"> </FONT>contract between Unit Operator and the contractor,<FONT STYLE="letter-spacing: -0.35pt">
</FONT>at the most favorable rates and on the most favorable<FONT STYLE="letter-spacing: -0.35pt"> </FONT>terms and conditions<FONT STYLE="letter-spacing: -0.4pt">
</FONT>bid, if bids<FONT STYLE="letter-spacing: 0.3pt"> </FONT>were obtained,<FONT STYLE="letter-spacing: -0.2pt"> </FONT>but otherwise<FONT STYLE="letter-spacing: -0.1pt">
</FONT>at rates and on terms and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>conditions receiving the Approval of the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">16.5 Uninsured
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Losses. Any and all payments made by <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit
Operator in the settlement or discharge of any liability to third <FONT STYLE="letter-spacing: 0.1pt"> </FONT>persons (whether
or not reduced to judgment)<FONT STYLE="letter-spacing: 0.3pt"> </FONT>arising out of an operation conducted hereunder and not
covered by insurance herein provided for shall be charged as Costs and borne by the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party
or Parties for whose <FONT STYLE="letter-spacing: 0.05pt"> </FONT>account such operation was conducted.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 17</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>LIMITATIONS ON UNIT OPERATOR</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">17.1 Specific Limitations.
In the conduct of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>operations<FONT STYLE="letter-spacing: 0.05pt"> </FONT>hereunder,
Unit Operator<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall not, without first obtaining the Approval of the Parties:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Change in<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Operations. Make any substantial change in the basic method of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>operation of
any well, except in the case of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>an emergency.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. Limit on Expenditures.<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Undertake<FONT STYLE="letter-spacing: -0.25pt"> </FONT>any project reasonably estimated to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>require an expenditure in<FONT STYLE="letter-spacing: 0.05pt"> </FONT>excess of <U>Twenty Five Thousand</U> Dollars($<U>25,000)</U>;
provided, however, that (1) Unit Operator is authorized to make all usual and customary operating expenditures that are required
in the normal course of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>producing operations,<FONT STYLE="letter-spacing: -0.15pt">
</FONT>(2) whenever Unit Operator<FONT STYLE="letter-spacing: -0.2pt"> </FONT>is authorized to conduct <FONT STYLE="letter-spacing: 0.05pt">
</FONT>a Drilling, Completing, or Deepening or Plugging Back operation, or to undertake any other project, in accordance with <FONT STYLE="letter-spacing: 0.15pt">
</FONT>this <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Agreement, Unit Operator shall be authorized to make all reasonable<FONT STYLE="letter-spacing: -0.05pt">
</FONT>and necessary expenditures in connection therewith,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>and (3) in case of emergency,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Unit Operator may make such immediate<FONT STYLE="letter-spacing: -0.5pt"> </FONT>expenditures<FONT STYLE="letter-spacing: 0.15pt">
</FONT>as may be necessary<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for the protection of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>life or property, but notice <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of such <FONT STYLE="letter-spacing: 0.1pt"> </FONT>emergency
shall be given to all Parties as <FONT STYLE="letter-spacing: 0.3pt"> </FONT>promptly as reasonably possible.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Partial Relinquishment.
Make any partial relinquishment<FONT STYLE="letter-spacing: -0.4pt"> </FONT>of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>its rights
as Unit Operator, appoint any sub-operator, or execute any Designation of Agent.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">15</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY<FONT STYLE="letter-spacing: 0.1pt">
</FONT>MOUNTAIN UNIT<FONT STYLE="letter-spacing: 0.1pt"> </FONT>OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980 (Page 16 Revised 1985)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Settlement of
Claims. Pay in excess <U> Ten Thousand </U> Dollars ($<U>10,000</U>) in settlement of any claim (other than Workman&rsquo;s Compensation
Claims) for injury to or death of persons or for loss of or damage to property.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">E. Determinations.
Make <FONT STYLE="letter-spacing: 0.3pt"> </FONT>any of the determinations provided in <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the
Unit Agreement to be made by Unit Operator, except <FONT STYLE="letter-spacing: 0.3pt"> </FONT>as otherwise specified in this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 18</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>TITLES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.1 Representation<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Ownership. Each Party<FONT STYLE="letter-spacing: -0.1pt"> </FONT>represents
to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>all other Parties that,<FONT STYLE="letter-spacing: -0.25pt"> </FONT>to the best
of its knowledge and belief, 1ts<FONT STYLE="letter-spacing: -0.25pt"> </FONT>ownership<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of<FONT STYLE="letter-spacing: -0.5pt">
</FONT>Committed Working Interests in the Unit Area is that set out in Exhibit<FONT STYLE="letter-spacing: -0.45pt"> </FONT>B<FONT STYLE="letter-spacing: -0.15pt">
</FONT>to the Unit Agreement. If it develops that any such ownership<FONT STYLE="letter-spacing: -0.5pt"> </FONT>is incorrectly
stated, the rights and responsibilities of the Parties shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>be governed by the provisions
of this Article 18, but such erroneous<FONT STYLE="letter-spacing: -0.5pt"> </FONT>statement shall not be a cau3e for canceling
or terminating this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.2&#9;Title Papers
to be Furnished.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. Lease Papers.<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Each Party, after executing this Agreement,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall upon <FONT STYLE="letter-spacing: 0.15pt">
</FONT>request promptly furnish<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Operator
with copies of all leases,<FONT STYLE="letter-spacing: 0.15pt"> </FONT>assignments, options, and other<FONT STYLE="letter-spacing: -0.15pt">
</FONT>contracts<FONT STYLE="letter-spacing: -0.05pt"> </FONT>which it has in its possession relating to its <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Committed Working Interests.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Title Papers<FONT STYLE="letter-spacing: -0.5pt"> </FONT>for Initial<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Test Well.
Promptly after the effective date of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>this Agreement each Party<FONT STYLE="letter-spacing: -0.3pt">
</FONT>within the area described as the Title Examination Area in Exhibit<FONT STYLE="letter-spacing: -0.5pt"> </FONT>2 shall,
at its own expense but without responsibility<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for the accuracy thereof, furnish<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Unit Operator with the following title materials<FONT STYLE="letter-spacing: -0.05pt"> </FONT>relating to all lands within
such<FONT STYLE="letter-spacing: 0.05pt"> </FONT>area in which it owns Committed Working<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Interests:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(1) Abstracts of
title based upon the County records, certified to the current date;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(2) All lease papers,
or copies thereof, mentioned in Subdivision<FONT STYLE="letter-spacing: 0.15pt"> </FONT>A of<FONT STYLE="letter-spacing: -0.05pt">
</FONT>this Section 18.2 which the Party has in <FONT STYLE="letter-spacing: 0.15pt"> </FONT>its possession and which have not
been previously furnished to Unit Operator;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(3) Copies of any
title opinions which the Party has in its possession;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(4) If Federal
lands are involved, status reports of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>current date, <FONT STYLE="letter-spacing: 0.15pt">
</FONT>setting forth the entries found in the BLM State Office<FONT STYLE="letter-spacing: -0.15pt"> </FONT>for<FONT STYLE="letter-spacing: 0.15pt">
</FONT>such lands,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>and also certified <FONT STYLE="letter-spacing: 0.05pt"> </FONT>copies
of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the Serial Registers for the Federal leases involved;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(5) If<FONT STYLE="letter-spacing: -0.45pt">
</FONT>State lands are involved, status reports of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>current<FONT STYLE="letter-spacing: -0.4pt">
</FONT>date, setting forth the entries<FONT STYLE="letter-spacing: -0.3pt"> </FONT>found in the State records for such <FONT STYLE="letter-spacing: 0.15pt">
</FONT>lands; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">(6) <FONT STYLE="letter-spacing: 0.3pt">
</FONT>If Indian lands are involved, status reports<FONT STYLE="letter-spacing: -1.3pt"> </FONT>of current date, setting forth
the entries found in the Bureau of Indian Affairs Agency Realty Office having jurisdiction<FONT STYLE="letter-spacing: -0.1pt">
</FONT>over such lands<FONT STYLE="letter-spacing: 0.1pt"> </FONT>and in the Bureau of Indian<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Affairs Land Titles and Records Office<FONT STYLE="letter-spacing: -0.4pt"> </FONT>having jurisdiction over such lands.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C. Title Papers<FONT STYLE="letter-spacing: -0.05pt">
</FONT>for Subsequent Wells. Any Party who proposes the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilling of a Subsequent Test
Well<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Exploratory<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Well shall,<FONT STYLE="letter-spacing: -0.2pt">
</FONT>at the time of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>giving<FONT STYLE="letter-spacing: -0.3pt"> </FONT>notice for
such proposed well, designate a title <FONT STYLE="letter-spacing: 0.05pt"> </FONT>examination area not exceeding <U> 2,560 </U>
acres and not including any lands within a participating area. When the Drilling<FONT STYLE="letter-spacing: -0.25pt"> </FONT>of
a Development<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Well receives <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Approval
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of the Parties within the participating area in which it is to be Drilled, a title
examination area covering lands outside any participating area may be designated by the Approval of such Parties. Each Party within
any such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>title examination area shall, at <FONT STYLE="letter-spacing: 0.1pt"> </FONT>its
own expense and upon request,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>furnish Unit Operator with the title materials listed
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>in Subdivision <FONT STYLE="letter-spacing: 0.1pt"> </FONT>B of this Section 18.2 not
previously furnished, relating to all lands within such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>area<FONT STYLE="letter-spacing: -0.05pt">
</FONT>in which it owns Committed Working Interests.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">D. Title Papers
on Establishment<FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Enlargement<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of a Participating<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Area. Upon the establishment or the enlargement of a participating area, each Party shall <FONT STYLE="letter-spacing: 0.15pt">
</FONT>promptly<FONT STYLE="letter-spacing: -0.2pt"> </FONT>furnish Unit Operator<FONT STYLE="letter-spacing: -0.25pt"> </FONT>all
the title materials<FONT STYLE="letter-spacing: -0.45pt"> </FONT>listed in Subdivision<FONT STYLE="letter-spacing: -0.4pt"> </FONT>B<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>this Section 18.2 not previously furnished, relating to all its Committed
Working Interests in the lands lying within<FONT STYLE="letter-spacing: -0.45pt"> </FONT>such participating area as established
or enlarged.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.3 Title Examination.
Promptly after<FONT STYLE="letter-spacing: 0.3pt"> </FONT>all title materials delivered pursuant to<FONT STYLE="letter-spacing: -0.25pt">
</FONT>Section<FONT STYLE="letter-spacing: 0.1pt"> </FONT>18.2 have been received, Unit Operator<FONT STYLE="letter-spacing: -0.35pt">
</FONT>shall deliver the same to an attorney<FONT STYLE="letter-spacing: -0.4pt"> </FONT>or attorneys approved<FONT STYLE="letter-spacing: 0.3pt">
</FONT>by the Parties within the title examination area. <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Unit Operator shall arrange
to have said materials examined promptly by<FONT STYLE="letter-spacing: 0.1pt"> </FONT>such attorney<FONT STYLE="letter-spacing: -0.15pt">
</FONT>or attorneys<FONT STYLE="letter-spacing: -0.45pt"> </FONT>and shall<FONT STYLE="letter-spacing: -0.35pt"> </FONT>distribute<FONT STYLE="letter-spacing: -0.4pt">
</FONT>copies of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>title<FONT STYLE="letter-spacing: 0.1pt"> </FONT>opinions to all
Parties<FONT STYLE="letter-spacing: -0.15pt"> </FONT>within the title examination<FONT STYLE="letter-spacing: -0.1pt"> </FONT>area
as soon as they are received. Each Party<FONT STYLE="letter-spacing: -0.05pt"> </FONT>shall be responsible, at its expense, for
curing<FONT STYLE="letter-spacing: -0.45pt"> </FONT>its own titles.<FONT STYLE="letter-spacing: -0.3pt"> </FONT>After a reasonable
time, not exceeding thirty (30) days, has been allowed for any necessary curative <FONT STYLE="letter-spacing: 0.15pt"> </FONT>work,
Unit Operator shall submit to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>each Party written recommendations for approval or disapproval
of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>title to each Committed Working
Interest involved, and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>thereafter the Parties shall advise Unit Operator in <FONT STYLE="letter-spacing: 0.05pt">
</FONT>writing, within fifteen (15) days after receipt of such recommendations, of approval or disapproval of titles. Unless otherwise<FONT STYLE="letter-spacing: -0.05pt">
</FONT>agreed, the cost of all title examinations made under this Section 18.3 shall be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>charged
as part of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the Costs of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>Drilling<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the well for which such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>title examination was made.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.4 Option for
Additional Title Examination. Any Party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>who<FONT STYLE="letter-spacing: 0.1pt"> </FONT>furnishes
materials<FONT STYLE="letter-spacing: -0.4pt"> </FONT>for title examination pursuant<FONT STYLE="letter-spacing: -0.45pt"> </FONT>to<FONT STYLE="letter-spacing: -0.45pt">
</FONT>Section 18.2 shall<FONT STYLE="letter-spacing: 0.15pt"> </FONT>have the right to examine all materials<FONT STYLE="letter-spacing: -0.45pt">
</FONT>furnished Unit Operator. If such additional, independent<FONT STYLE="letter-spacing: -0.25pt"> </FONT>title <FONT STYLE="letter-spacing: 0.1pt">
</FONT>examination is elected, it shall be at the sole cost and expense of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Party
electing<FONT STYLE="letter-spacing: -0.3pt"> </FONT>to perform <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the same; and such
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall bear any expense which may
be necessary to reproduce title materials<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for its use, if required. Whether or not
such additional title examination is elected, each Party shall have the right to approve or<FONT STYLE="letter-spacing: -0.05pt">
</FONT>disapprove titles according to the provisions of this Article 18</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">16</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form<FONT STYLE="letter-spacing: 0.3pt">
</FONT>2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.5 Approval of
Titles Prior to Drilling. Where the Committed Working Interests within<FONT STYLE="letter-spacing: -0.1pt"> </FONT>a title examination<FONT STYLE="letter-spacing: 0.1pt">
</FONT>area <FONT STYLE="letter-spacing: 0.05pt"> </FONT>are owned by more than one Party,<FONT STYLE="letter-spacing: 0.1pt">
</FONT>no Drilling shall be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>conducted in such area until t1tles to <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Comm1tted Working Interests therein have received the Approval of the Parties as hereinafter m th1s<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Section prov1ded. If a Drilling Block has been designated for the Drilling<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of
a well, such well shall not be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Drilled until titles to the Committed<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Working <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Interests<FONT STYLE="letter-spacing: -0.35pt"> </FONT>within the title
examination<FONT STYLE="letter-spacing: -0.05pt"> </FONT>area established for<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such
well have received the Approval of the Parties<FONT STYLE="letter-spacing: -0.1pt"> </FONT>within the Drilling Block in which<FONT STYLE="letter-spacing: 0.05pt">
</FONT>such wells<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to be<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Drilled. Approval
of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>title to lands within a Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block<FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>binding upon all Parties
owning Committed Working Interests within<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such Drilling Block. If lands outside a participating
area are included in the title examination<FONT STYLE="letter-spacing: -0.15pt"> </FONT>area for a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Development<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Well, such well shall not be Drilled until <FONT STYLE="letter-spacing: 0.15pt">
</FONT>t1tles <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the Committed Working Interests within such title examination area
have received<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Approval of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Parties<FONT STYLE="letter-spacing: -0.1pt">
</FONT>therein.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>In the event Approval of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the
Parties is not obtained as in this Section 18.5 provided, the Drilling Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>(whether
one or more) may proceed with the Drilling of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the well, but sa1d Drilling Party<FONT STYLE="letter-spacing: -0.2pt">
</FONT>(a) shall, by<FONT STYLE="letter-spacing: 0.05pt"> </FONT>so proceeding, assume all risk attending<FONT STYLE="letter-spacing: -0.45pt">
</FONT>the failure<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to obtain such approval to the s me <FONT STYLE="letter-spacing: 0.1pt">
</FONT>extent<FONT STYLE="letter-spacing: -0.15pt"> </FONT>as if approval<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.35pt">
</FONT>titles to all lands within the Drilling Block (if one has been established)<FONT STYLE="letter-spacing: -0.3pt"> </FONT>or<FONT STYLE="letter-spacing: 0.15pt">
</FONT>within the title<FONT STYLE="letter-spacing: 0.3pt"> </FONT>examination area (in all other instances) had been obtained,<FONT STYLE="letter-spacing: -0.5pt">
</FONT>and (b) shall<FONT STYLE="letter-spacing: -0.4pt"> </FONT>also be<FONT STYLE="letter-spacing: -0.3pt"> </FONT>deemed <FONT STYLE="letter-spacing: 0.1pt">
</FONT>to have g1ven<FONT STYLE="letter-spacing: -0.25pt"> i</FONT>ts<FONT STYLE="letter-spacing: -0.05pt"> </FONT>approval to
the titles<FONT STYLE="letter-spacing: -0.35pt"> </FONT>to all lands <FONT STYLE="letter-spacing: 0.05pt"> </FONT>within<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the Drilling<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Block (if<FONT STYLE="letter-spacing: -0.2pt"> </FONT>one has
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>been established) or within the title examination area (in all other instances).</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.6 Approval of
Titles<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Prior<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to Inclusion<FONT STYLE="letter-spacing: 0.1pt">
</FONT>of Land in a Participating Area. Where the Committed Working Interests within a participating area are owned by more than
one Party, no Committed Working Interest<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall be included within said participating
area or be entitled to participate in the Production of unitized substances<FONT STYLE="letter-spacing: -0.25pt"> </FONT>from said
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>participating<FONT STYLE="letter-spacing: -0.35pt"> </FONT>area until title to such
Committed Working Interest has received the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Approval of the Parties within said participating<FONT STYLE="letter-spacing: 0.1pt">
</FONT>area. Approval of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>titles to lands within a participating area shall be<FONT STYLE="letter-spacing: -0.35pt">
</FONT>binding upon all Parties within such participating area and all Parties coming within such participating area upon any enlargement
thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.7 Failure of
Title to Committed Working Interest Before Approval. If title to a Committed Working Interest<FONT STYLE="letter-spacing: -0.3pt">
</FONT>shall fail in whole or in part prior to receiving the Approval of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Parties,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Parties who improperly<FONT STYLE="letter-spacing: -0.3pt"> </FONT>claimed said interest shall<FONT STYLE="letter-spacing: 0.15pt">
s</FONT>ustain<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the entire<FONT STYLE="letter-spacing: -0.4pt"> </FONT>loss occasioned
by<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such failure<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of title and do<FONT STYLE="letter-spacing: -0.25pt">
</FONT>hereby expressly<FONT STYLE="letter-spacing: -0.3pt"> </FONT>relieve and indemnify<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Unit Operator and all other Parties from and against any and all<FONT STYLE="letter-spacing: 0.15pt"> </FONT>liability on
account thereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.8 Failure of
Title to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Committed Working Interest After Approval. If title to <FONT STYLE="letter-spacing: 0.1pt">
</FONT>a Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.1pt"> </FONT>which
has received the Approval <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the Parties
under Section 18.5 fails in whole or in part at <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a time <FONT STYLE="letter-spacing: 0.1pt">
</FONT>when the tract affected thereby is within an active Drilling<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Block or within
a Drilling Block upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>which a well has <FONT STYLE="letter-spacing: 0.15pt"> </FONT>been
completed otherwise than as a producer <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of unitized substances in Paying Quantities,<FONT STYLE="letter-spacing: -0.25pt">
</FONT>or if title to a Committed Working Interest<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which has received the Approval of
the Parties<FONT STYLE="letter-spacing: 0.05pt"> </FONT>under Section 18.6 fails in whole or in part <FONT STYLE="letter-spacing: 0.1pt">
</FONT>at a time when the tract<FONT STYLE="letter-spacing: -0.25pt"> </FONT>affected thereby is<FONT STYLE="letter-spacing: 0.15pt">
</FONT>within a participating area, then:</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">A. the loss,<FONT STYLE="letter-spacing: 0.1pt">
</FONT>the cost<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of litigation,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>and any
ensuing liability shall be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>borne by<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the
Parties<FONT STYLE="letter-spacing: -0.3pt"> </FONT>having interests in the affected participating area or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Drilling<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Block (including<FONT STYLE="letter-spacing: -0.45pt"> </FONT>the Party<FONT STYLE="letter-spacing: -0.2pt">
</FONT>whose Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.3pt"> </FONT>has
been lost and including<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the acreage<FONT STYLE="letter-spacing: -0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.2pt">
</FONT>such Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest);</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">B. there shall
be relinquished to the Party whose Committed Working <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest<FONT STYLE="letter-spacing: 0.05pt">
</FONT>has been lost such proportionate<FONT STYLE="letter-spacing: -0.3pt"> </FONT>part <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of
each of<FONT STYLE="letter-spacing: -0.35pt"> </FONT>the 0ther Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working Interests<FONT STYLE="letter-spacing: -0.25pt">
</FONT>in the lands within such affected participating<FONT STYLE="letter-spacing: -0.1pt"> </FONT>area or Drilling Block, subject
to a like proportion of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>their respective<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Lease
Burdens, as may be necessary to make the loss of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>such Committed<FONT STYLE="letter-spacing: -0.4pt">
</FONT>Working<FONT STYLE="letter-spacing: -0.45pt"> </FONT>Interest a<FONT STYLE="letter-spacing: 0.05pt"> </FONT>joint loss of
the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Parties within such participating area or Drilling<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Block; and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">C the relinquished<FONT STYLE="letter-spacing: 0.05pt">
</FONT>portions of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>said Committed Working Interests (subject to<FONT STYLE="letter-spacing: -0.1pt">
</FONT>their proportionate part <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the
Lease Burdens attributable thereto) shall be deemed owned by the Party receiving same.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.9 Joinder<FONT STYLE="letter-spacing: -0.25pt">
</FONT>by True Owner. If<FONT STYLE="letter-spacing: -0.1pt"> </FONT>title to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>a<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Committed<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working Interest fails in whole<FONT STYLE="letter-spacing: 0.15pt">
</FONT>or in part, such Committed Working<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Interest<FONT STYLE="letter-spacing: -0.3pt">
</FONT>shall no<FONT STYLE="letter-spacing: 0.3pt"> </FONT>longer be subject<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to this<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Agreement<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or the Unit<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement.
The true owner of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>a Committed Working Interest,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>title to which has failed, may join in this Agreement or enter<FONT STYLE="letter-spacing: 0.1pt"> </FONT>into a separate
Operating Agreement<FONT STYLE="letter-spacing: -0.25pt"> </FONT>with<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the Parties<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to this Agreement upon such terms<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and conditions as receive the Approval of
the Parties<FONT STYLE="letter-spacing: -0.05pt"> </FONT>within<FONT STYLE="letter-spacing: -0.4pt"> </FONT>the Unit Area and subject
to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>any valid claims by the true owner.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">18.10 Title Challenge.
In the event of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any suit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or action challenging<FONT STYLE="letter-spacing: -0.05pt">
</FONT>the title of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any Party to any of the oil and gas rights committed by<FONT STYLE="letter-spacing: -0.15pt">
</FONT>said Party to this Agreement<FONT STYLE="letter-spacing: -0.35pt"> </FONT>and to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
Unit Agreement,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the Party served will immediately notify the other Parties, and <FONT STYLE="letter-spacing: 0.15pt">
</FONT>the Party whose title has been challenged shall forthwith<FONT STYLE="letter-spacing: -0.4pt"> </FONT>take over and be<FONT STYLE="letter-spacing: -0.05pt">
</FONT>in charge of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the conduct of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the
litigation<FONT STYLE="letter-spacing: -0.2pt"> </FONT>and shall <FONT STYLE="letter-spacing: 0.1pt"> </FONT>bear the entire cost<FONT STYLE="letter-spacing: 0.3pt">
</FONT>of such litigation, unless the title has previously received the Approval of the Parties, in which event the<I> </I>provisions
of Section <FONT STYLE="letter-spacing: 0.3pt"> </FONT>18.8 shall apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 19</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>UNLEASED INTERESTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">19.1 Treated as
Leased. If a Party<FONT STYLE="letter-spacing: 0.05pt"> </FONT>owns in fee all or any part of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>the oil and gas rights<FONT STYLE="letter-spacing: -0.25pt"> </FONT>in any tract within<FONT STYLE="letter-spacing: -0.4pt">
</FONT>the Unit Area which is not<FONT STYLE="letter-spacing: 0.3pt"> </FONT>subject to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>any
oil<FONT STYLE="letter-spacing: 0.1pt"> </FONT>and gas lease or<FONT STYLE="letter-spacing: -0.05pt"> </FONT>other contract<FONT STYLE="letter-spacing: -0.3pt">
</FONT>in the nature<FONT STYLE="letter-spacing: -0.05pt"> </FONT>thereof, such Party shall be deemed to own a Committed Working
Interest in such tract and also a royalty interest<FONT STYLE="letter-spacing: -0.45pt"> </FONT>therein in the same manner<FONT STYLE="letter-spacing: -0.5pt">
</FONT>as if such Party's oil<FONT STYLE="letter-spacing: 0.15pt"> </FONT>and gas rights in such tract <FONT STYLE="letter-spacing: 0.15pt">
</FONT>were covered by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the form of oil and gas lease attached as Exhibit 5.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">19.2 Execution
of Lease. In any provision of this Agreement where reference is <FONT STYLE="letter-spacing: 0.05pt"> </FONT>made to <FONT STYLE="letter-spacing: 0.1pt">
</FONT>an assignment or<FONT STYLE="letter-spacing: -0.05pt"> </FONT>conveyance by<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any
Party of its Committed Working Interest<FONT STYLE="letter-spacing: -0.45pt"> </FONT>to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>any
other Party. each such reference as to<FONT STYLE="letter-spacing: -0.05pt"> </FONT>any Party <FONT STYLE="letter-spacing: 0.05pt">
</FONT>owning an unleased interest shall be<FONT STYLE="letter-spacing: -0.1pt"> </FONT>interpreted<FONT STYLE="letter-spacing: -0.1pt">
</FONT>to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>mean that<FONT STYLE="letter-spacing: -0.45pt"> </FONT>such Party shall</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">17</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">execute an oil and gas lease to such
other Party in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the form of Exhibit 5, which shall satisfy the requirement for an assignment
or conveyance of a Committed Working Interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 20</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RENTALS<FONT STYLE="letter-spacing: 0.15pt">
</FONT>AND LEASE BURDENS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">20.1 Rentals. Each
Party<FONT STYLE="letter-spacing: -0.35pt"> </FONT>shall be obligated to pay any and all rentals<FONT STYLE="letter-spacing: -0.25pt">
</FONT>and other <FONT STYLE="letter-spacing: 0.05pt"> </FONT>sums (other <FONT STYLE="letter-spacing: 0.3pt"> </FONT>than Lease
Burdens)<FONT STYLE="letter-spacing: 0.3pt"> </FONT>payable upon or with respect to its Committed Working Interests, subject,<FONT STYLE="letter-spacing: -0.3pt">
</FONT>however,<FONT STYLE="letter-spacing: -0.35pt"> </FONT>to the right of each Party<FONT STYLE="letter-spacing: -0.25pt"> </FONT>to
surrender<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>its Committed<FONT STYLE="letter-spacing: -0.3pt">
</FONT>Working Interests in accordance with Article 27. Upon request,<FONT STYLE="letter-spacing: -0.3pt"> </FONT>each Party shall
furnish<FONT STYLE="letter-spacing: 0.05pt"> </FONT>to Unit Operator satisfactory<FONT STYLE="letter-spacing: -0.15pt"> </FONT>evidence
of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the making<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of such payments. However,
no Party<FONT STYLE="letter-spacing: -0.05pt"> </FONT>shall be liable to any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>other
Party for unintentional<FONT STYLE="letter-spacing: 0.15pt"> </FONT>failure to make any such payment, provided it has <FONT STYLE="letter-spacing: 0.1pt">
</FONT>acted in good faith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">20.2 Lease Burdens.
Each Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>entitled<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to receive a<FONT STYLE="letter-spacing: 0.05pt">
</FONT>share of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Production<FONT STYLE="letter-spacing: -0.35pt"> </FONT>shall be<FONT STYLE="letter-spacing: -0.3pt">
</FONT>obligated<FONT STYLE="letter-spacing: -0.05pt"> </FONT>for any and all payments, whether in cash or <FONT STYLE="letter-spacing: 0.15pt">
</FONT>in <FONT STYLE="letter-spacing: 0.3pt"> </FONT>kind, accruing to any and all Lease Burdens, net profits interests,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>carried<FONT STYLE="letter-spacing: -0.3pt"> </FONT>interests, and any similar<FONT STYLE="letter-spacing: 0.15pt"> </FONT>interest
payable with respect <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>such share<FONT STYLE="letter-spacing: -0.45pt">
</FONT>or the proceeds thereof; provided, however, at any time <FONT STYLE="letter-spacing: 0.15pt"> </FONT>any such Party entitled<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to receive Production is not taking<FONT STYLE="letter-spacing: -0.15pt"> </FONT>in kind or<FONT STYLE="letter-spacing: 0.1pt">
</FONT>separately disposing of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>its share, that portion of such Production or the proceeds
thereof (at the option of such Party)<FONT STYLE="letter-spacing: 0.05pt"> </FONT>accruing to<FONT STYLE="letter-spacing: -0.15pt">
</FONT>such Lease Burdens shall, upon request, be<FONT STYLE="letter-spacing: -0.3pt"> </FONT>distributed<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>such Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">20.3 Loss of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Committed Working Interest. If a Committed Working Interest is lost through<FONT STYLE="letter-spacing: -0.4pt"> </FONT>failure
to make any payment<FONT STYLE="letter-spacing: -0.3pt"> </FONT>above provided to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be
made by the Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>owning the same, such loss<FONT STYLE="letter-spacing: 0.15pt">
</FONT>shall be borne entirely<FONT STYLE="letter-spacing: -0.35pt"> </FONT>by<FONT STYLE="letter-spacing: -0.15pt"> </FONT>such
Party; provided, however, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>if<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Committed<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Working Interest so<FONT STYLE="letter-spacing: -0.1pt"> </FONT>lost covers land within a participating area, the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>provisions<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Section 18.8 shall
apply.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 21</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>TAXES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.1 Payment. Any
and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>all ad valorem and severance taxes payable upon <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Committed Working Interests<FONT STYLE="letter-spacing: 0.1pt"> </FONT>(and upon Lease Burdens which are not payable by
the owners thereof) or upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>materials, equipment, or other property acquired and held
by Unit Operator hereunder, and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>any and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>all
taxes (other <FONT STYLE="letter-spacing: 0.1pt"> </FONT>than income taxes) <FONT STYLE="letter-spacing: 0.1pt"> </FONT>upon or
measured by unitized<FONT STYLE="letter-spacing: -0.4pt"> </FONT>substances<FONT STYLE="letter-spacing: 0.3pt"> </FONT>produced
from the Unit Area which are not payable by the purchaser<FONT STYLE="letter-spacing: -0.5pt"> </FONT>or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>purchasers<FONT STYLE="letter-spacing: -0.5pt"> </FONT>thereof or by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the owner
of Lease Burdens shall be<FONT STYLE="letter-spacing: -0.2pt"> </FONT>paid by Unit Operator as and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>when due and payable.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.2 Apportionment.
Taxes upon materials, equipment, and other property<FONT STYLE="letter-spacing: 0.15pt"> </FONT>acquired and held by Unit Operator<FONT STYLE="letter-spacing: -0.05pt">
</FONT>hereunder shall be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>charged to and borne by the Parties owning the same in proportion<FONT STYLE="letter-spacing: -0.1pt">
</FONT>to their respective interests therein. All taxes paid<FONT STYLE="letter-spacing: 0.15pt"> </FONT>by Unit Operator upon
or measured by the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>value of Production<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall
be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>charged to and borne by the Parties owning the same in the same proportions as
the assessed values of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>their respective portions<FONT STYLE="letter-spacing: -0.4pt">
</FONT>of such Production bear to the whole thereof. All other<FONT STYLE="letter-spacing: 0.05pt"> </FONT>taxes paid by Unit Operator
shall be<FONT STYLE="letter-spacing: -0.1pt"> </FONT>charged to and borne by the Parties<FONT STYLE="letter-spacing: -0.3pt"> </FONT>in
proportion to their<FONT STYLE="letter-spacing: 0.3pt"> </FONT>ownership in the Committed Working Interests or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>unitized substances<FONT STYLE="letter-spacing: 0.05pt"> </FONT>(as the case may be)<FONT STYLE="letter-spacing: 0.1pt">
</FONT>upon which or with respect to which such taxes<FONT STYLE="letter-spacing: 0.3pt"> </FONT>are paid. All reimbursements<FONT STYLE="letter-spacing: -0.25pt">
</FONT>from owners <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Lease Burdens, whether
obtained in cash or by<FONT STYLE="letter-spacing: -0.25pt"> </FONT>deduction<FONT STYLE="letter-spacing: -0.1pt"> </FONT>from
Lease Burdens,<FONT STYLE="letter-spacing: -0.5pt"> </FONT>on account<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt">
</FONT>any taxes paid for such owners shall be paid or credited to the Parties in the same proportions as such taxes were charged
to such Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.3 Transfer of
Interests. In the event of a transfer<FONT STYLE="letter-spacing: -0.25pt"> </FONT>by<FONT STYLE="letter-spacing: -0.25pt"> </FONT>one
Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>another<FONT STYLE="letter-spacing: -0.3pt">
</FONT>under the provisions of this Agreement of any Committed Working Interest or of any other interest in <FONT STYLE="letter-spacing: 0.1pt">
</FONT>any well <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or in the materials and equipment<FONT STYLE="letter-spacing: -0.05pt">
</FONT>in any well, or in the event of<FONT STYLE="letter-spacing: -0.1pt"> </FONT>the reversion<FONT STYLE="letter-spacing: -0.05pt">
</FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>any relinquished<FONT STYLE="letter-spacing: -0.35pt"> </FONT>interest as
in this Agreement provided, the taxes above mentioned assessed against the transferred or reverted interest<FONT STYLE="letter-spacing: 0.05pt">
</FONT>for the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>taxable period in which such transfer or reversion occurs shall be
apportioned<FONT STYLE="letter-spacing: -0.05pt"> </FONT>among said Parties so<FONT STYLE="letter-spacing: -0.15pt"> </FONT>that
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>each shall bear the percentage of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>such
taxes <FONT STYLE="letter-spacing: 0.05pt"> </FONT>which is proportionate<FONT STYLE="letter-spacing: -0.35pt"> </FONT>to<FONT STYLE="letter-spacing: -0.05pt">
</FONT>that portion of the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>taxable period during which it owned <FONT STYLE="letter-spacing: 0.15pt">
</FONT>such <FONT STYLE="letter-spacing: 0.1pt"> </FONT>interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">21.4 Notices and
Returns. Each Party<FONT STYLE="letter-spacing: -0.35pt"> </FONT>shall promptly furnish Unit Operator<FONT STYLE="letter-spacing: -0.25pt">
</FONT>with copies<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of notices, assessments,<FONT STYLE="letter-spacing: -0.5pt"> </FONT>levies,
or tax statements received by it pertaining to the taxes to be paid by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Unit Operator.
Unit Operator shall make such returns,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>reports, and statements as may be required<FONT STYLE="letter-spacing: -0.2pt">
</FONT>by law in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>connection with<FONT STYLE="letter-spacing: 0.15pt"> </FONT>any taxes
above provided to be paid by it and shall furnish<FONT STYLE="letter-spacing: 0.3pt"> </FONT>copies to the Parties<FONT STYLE="letter-spacing: 0.15pt">
</FONT>upon request.<FONT STYLE="letter-spacing: -0.25pt"> </FONT>It shall notify the Parties of<FONT STYLE="letter-spacing: -0.25pt">
</FONT>any tax which it does not propose to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>pay before such tax becomes delinquent.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 22</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>WITHDRAWAL OF TRACTS AND UNCOMMITTED
INTERESTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">22.1 Right of Withdrawal.<FONT STYLE="letter-spacing: -0.45pt">
</FONT>If the owner of<FONT STYLE="letter-spacing: -0.05pt"> </FONT>any substantial interest<FONT STYLE="letter-spacing: -0.35pt">
</FONT>in a tract<FONT STYLE="letter-spacing: 0.05pt"> </FONT>within the Unit Area fails or refuses to <FONT STYLE="letter-spacing: 0.15pt">
</FONT>join <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in the Unit Agreement, then such tract <FONT STYLE="letter-spacing: 0.1pt">
</FONT>may be withdrawn from the Unit Agreement, as provided in the Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">22.2 Non&middot;Withdrawal.<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Should the Party<FONT STYLE="letter-spacing: -0.15pt"> </FONT>or Parties having the right under the Unit Agreement to withdraw<FONT STYLE="letter-spacing: -0.1pt">
</FONT>a tract from the Unit Agreement<FONT STYLE="letter-spacing: -0.35pt"> </FONT>fail to exercise such right,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>then all payments<FONT STYLE="letter-spacing: -0.5pt"> </FONT>and liabilities accruing<FONT STYLE="letter-spacing: -0.05pt">
</FONT>to the owners of uncommitted interests in such tract shall<FONT STYLE="letter-spacing: -0.05pt"> </FONT>be paid and borne
by<FONT STYLE="letter-spacing: -0.1pt"> </FONT>such Party or Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 23</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>COMPENSATORY ROYA<FONT STYLE="letter-spacing: 0.3pt">L</FONT>TIES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">23.1 Notice. Whenever<FONT STYLE="letter-spacing: -0.45pt">
</FONT>demand is made in accordance<FONT STYLE="letter-spacing: -0.25pt"> </FONT>with the Unit Agreement<FONT STYLE="letter-spacing: -0.3pt">
</FONT>for the payment<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of compensatory<FONT STYLE="letter-spacing: -0.3pt"> </FONT>royalties,
Unit Operator<FONT STYLE="letter-spacing: -0.35pt"> </FONT>shall give notice thereof to each Party<FONT STYLE="letter-spacing: -0.15pt">
</FONT>affected<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by the demand.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">23.2 Demand for
Failure to Drill a Development Well. If the demand for compensatory royalties results from<FONT STYLE="letter-spacing: 0.05pt">
</FONT>the failure to have Drilled a Development Well and such well is not Drilled, then Unit</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">18</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Operator<FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall pay such compensatory<FONT STYLE="letter-spacing: -0.3pt"> </FONT>royalties. Such payment shall be charged as Costs
incurred in operations within the participating area involved.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">23.3 Demand for Failure to <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Drill a Well Other Than a Development Well. If the demand for compensatory royalties results<FONT STYLE="letter-spacing: 0.1pt">
</FONT>from the failure to have Drilled a well other than a Development Well and such well is not Drilled, then<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: -0.15pt"> </FONT>shall pay such compensatory royalties. Such payment shall be
chargeable<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to and borne by the Parties<FONT STYLE="letter-spacing: -0.4pt"> </FONT>who
would be<FONT STYLE="letter-spacing: -0.15pt"> </FONT>obligated to bear the Costs of such well if the well were Drilled as a Required
Well under Subdivision B of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Section<FONT STYLE="letter-spacing: 0.3pt"> </FONT>10.4.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 24</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SEPARATE MEASUREMENT AND SALVAGE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">24.1<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Separate Measurement. If a well completed as a <FONT STYLE="letter-spacing: 0.1pt"> </FONT>producer of unitized substances
is in or becomes included in a participating area but is not owned on an Acreage Basis by<FONT STYLE="letter-spacing: -0.35pt">
</FONT>all the Parties within such participating<FONT STYLE="letter-spacing: -0.3pt"> </FONT>area <FONT STYLE="letter-spacing: 0.15pt">
</FONT>and if, within thirty<FONT STYLE="letter-spacing: 0.15pt"> </FONT>(30) days after request therefor<FONT STYLE="letter-spacing: 0.3pt">
</FONT>by<FONT STYLE="letter-spacing: 0.1pt"> </FONT>any interested Party, a method <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of
measuring<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Production<FONT STYLE="letter-spacing: 0.15pt"> </FONT>from such well
without the necessity of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>additional facilities does not receive the Approval of<FONT STYLE="letter-spacing: -0.25pt">
</FONT>the Parties, then Unit Operator<FONT STYLE="letter-spacing: -0.15pt"> </FONT>shall install<FONT STYLE="letter-spacing: -0.25pt">
</FONT>such additional<FONT STYLE="letter-spacing: -0.25pt"> </FONT>tankage, flow lines, or<FONT STYLE="letter-spacing: 0.1pt">
</FONT>other facilities for<FONT STYLE="letter-spacing: -0.25pt"> </FONT>separate measurement<FONT STYLE="letter-spacing: -0.4pt">
</FONT>of the unitized <FONT STYLE="letter-spacing: 0.1pt"> </FONT>substances<FONT STYLE="letter-spacing: -0.35pt"> </FONT>produced
from such well as Unit Operator may deem suitable. The Costs of such facilities for separate measurement shall be charged to<FONT STYLE="letter-spacing: -0.1pt">
</FONT>and borne by<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the Drilling Party<FONT STYLE="letter-spacing: -0.05pt"> </FONT>for
such well and treated<FONT STYLE="letter-spacing: 0.15pt"> </FONT>as Costs incurred in operating<FONT STYLE="letter-spacing: -0.2pt">
</FONT>such well, notwithstanding any other provisions of this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">24.2 Salvaged Materials.
If any materials<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or equipment are salvaged from a well completed as a producer after
being Drilled, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Deepened, Plugged Back, or Completed <FONT STYLE="letter-spacing: 0.15pt">
</FONT>otherwise<FONT STYLE="letter-spacing: 0.05pt"> </FONT>than for the account of all the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Parties entitled to participate therein before reversion to the Non-Drilling Party of its relinquished interest<FONT STYLE="letter-spacing: -0.15pt">
</FONT>in the well, the proceeds derived <FONT STYLE="letter-spacing: 0.05pt"> </FONT>from the sale thereof or, if<FONT STYLE="letter-spacing: -0.1pt">
</FONT>not sold, the Salvage Value thereof, shall be treated<FONT STYLE="letter-spacing: -0.05pt"> </FONT>in the same manner<FONT STYLE="letter-spacing: -0.3pt">
</FONT>as proceeds of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Production<FONT STYLE="letter-spacing: -0.05pt"> </FONT>from
such well for<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the purpose of determining reversion to the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Non-Drilling Party of its relinquished<FONT STYLE="letter-spacing: 0.1pt"> </FONT>interest in such well.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 25</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ENHANCED RECOVERY AND PRESSURE MAINTENANCE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">25.1 Consent Required.<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall not undertake<FONT STYLE="letter-spacing: 0.1pt"> </FONT>any
program of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>enhanced recovery or pressure<FONT STYLE="letter-spacing: -0.4pt"> </FONT>maintenance<FONT STYLE="letter-spacing: 0.1pt">
</FONT>involving injection of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>gas, water, or<FONT STYLE="letter-spacing: 0.1pt"> </FONT>other
substance<FONT STYLE="letter-spacing: -0.3pt"> </FONT>by<FONT STYLE="letter-spacing: -0.35pt"> </FONT>any method, whether now known
or hereafter devised, without<FONT STYLE="letter-spacing: -0.35pt"> </FONT>first obtaining the consent of<FONT STYLE="letter-spacing: -0.25pt">
</FONT>Parties owning, on an Acreage Basis, not less than <U> 90 </U>% of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Committed
Working Interests<FONT STYLE="letter-spacing: -0.3pt"> </FONT>in the participating<FONT STYLE="letter-spacing: -0.05pt"> </FONT>area
affected by any such program. After the Parties have voted to undertake a program of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>enhanced
recovery or pressure<FONT STYLE="letter-spacing: -0.4pt"> </FONT>maintenance<FONT STYLE="letter-spacing: -0.15pt"> </FONT>in accordance
with this Section 25.1, the conduct of such program shall be<FONT STYLE="letter-spacing: -0.3pt"> </FONT>subject to supervision
by the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Parties<FONT STYLE="letter-spacing: 0.15pt"> </FONT>as set forth in Article 14.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">25.2 Above-Ground
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Facilities. This Agreement shall not be deemed to <FONT STYLE="letter-spacing: 0.3pt">
</FONT>require any Party <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to participate in the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>construction or operation of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>any gasoline plant, sulphur recovery plant, dewaxing
plant, or<FONT STYLE="letter-spacing: -0.15pt"> </FONT>other above-ground <FONT STYLE="letter-spacing: 0.1pt"> </FONT>facilities
to process or<FONT STYLE="letter-spacing: -0.15pt"> </FONT>otherwise<FONT STYLE="letter-spacing: -0.1pt"> </FONT>treat Production,
other than such facilities as may be required for treating Production in ordinary lease operations and such facilities<FONT STYLE="letter-spacing: 0.05pt">
</FONT>as may <FONT STYLE="letter-spacing: 0.05pt"> </FONT>be required in the conduct <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.05pt">
</FONT>operations authorized under Section 25.1.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 26</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>TRANSFERS<FONT STYLE="letter-spacing: 0.05pt">
</FONT>OF INTEREST</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">26.1 Sale by Unit
Operator.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>If Unit Operator sells all its Committed Working Interests, it shall resign
and a new Unit Operator shall be selected as provided <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in the Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">26.2 Assumption<FONT STYLE="letter-spacing: -0.3pt">
</FONT>of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Obligations.<FONT STYLE="letter-spacing: -0.15pt"> </FONT>No transfer<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>any Committed Working Interest shall be<FONT STYLE="letter-spacing: -0.25pt">
</FONT>effective unless the same is<FONT STYLE="letter-spacing: -0.05pt"> </FONT>made expressly subject to<FONT STYLE="letter-spacing: -0.15pt">
</FONT>the Unit Agreement and this Agreement and the transferee agrees in writing<FONT STYLE="letter-spacing: -0.3pt"> </FONT>to<FONT STYLE="letter-spacing: -0.35pt">
</FONT>assume and perform all obligations of the transferor under the Unit Agreement and this Agreement insofar as they relate
to the interest assigned,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>except that such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>assumption
of obligations <FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>not be required in
case of<FONT STYLE="letter-spacing: -0.4pt"> </FONT>a transfer by mortgage<FONT STYLE="letter-spacing: -0.35pt"> </FONT>or deed
of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>trust as security<FONT STYLE="letter-spacing: 0.05pt"> </FONT>for indebtedness.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">26.3 Effective<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Date. A<FONT STYLE="letter-spacing: -0.2pt"> </FONT>transfer of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>Committed<FONT STYLE="letter-spacing: -0.1pt">
</FONT>Working Interests shall not be effective as<FONT STYLE="letter-spacing: 0.3pt"> </FONT>among the Parties until the first
day of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>the month next following the delivery to Unit Operator of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>the original or a certified copy<FONT STYLE="letter-spacing: -0.05pt"> </FONT>of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>the
instrument<FONT STYLE="letter-spacing: -0.2pt"> </FONT>of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>transfer conforming to the
requirements<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of Section 26.2. In no event shall a transfer of Committed Working Interests
relieve the transferring Party of any obligations accrued <FONT STYLE="letter-spacing: 0.15pt"> </FONT>under this Agreement<FONT STYLE="letter-spacing: -0.2pt">
</FONT>prior to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>said effective date, for which purpose any obligation<FONT STYLE="letter-spacing: -0.05pt">
</FONT>assumed by the transferor<FONT STYLE="letter-spacing: -0.1pt"> </FONT>to participate<FONT STYLE="letter-spacing: -0.3pt">
</FONT>in the Drilling,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Deepening, Plugging Back, or Completing<FONT STYLE="letter-spacing: -0.4pt">
</FONT>of a well prior to such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>effective date <FONT STYLE="letter-spacing: 0.3pt">
</FONT>shall be deemed <FONT STYLE="letter-spacing: 0.1pt"> </FONT>an accrued obligation.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 27</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RELEASE FROM OBLIGATIONS AND<FONT STYLE="letter-spacing: 0.15pt">
</FONT>SURRENDER</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">27.1 Surrender
or Release Within Participating Area. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>A Committed Working Interest in land within
a participating<FONT STYLE="letter-spacing: -0.3pt"> </FONT>area<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall not be<FONT STYLE="letter-spacing: -0.05pt">
</FONT>surrendered except with the consent<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>all Parties<FONT STYLE="letter-spacing: -0.15pt"> </FONT>within such participating area. However, a Party who owns a Committed
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Working Interest in land within a participating area and who is not <FONT STYLE="letter-spacing: 0.05pt">
</FONT>at the time committed to participate in <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Drilling, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Deepening, Plugging Back, or Completing of a well within such participating
area may be relieved of further obligations<FONT STYLE="letter-spacing: 0.1pt"> </FONT>with <FONT STYLE="letter-spacing: 0.05pt">
</FONT>respect to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such participating area, as then constituted, by<FONT STYLE="letter-spacing: 0.1pt">
</FONT>executing<FONT STYLE="letter-spacing: -0.25pt"> </FONT>and delivering to Unit <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operator
an assignment<FONT STYLE="letter-spacing: -0.1pt"> </FONT>conveying to all other<FONT STYLE="letter-spacing: -0.2pt"> </FONT>Parties<FONT STYLE="letter-spacing: -0.25pt">
</FONT>within <FONT STYLE="letter-spacing: 0.1pt"> </FONT>such participating area all Commit ted Working <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Interests<FONT STYLE="letter-spacing: -0.1pt"> </FONT>owned by such Party in lands within the participating area, together
with <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center; text-indent: 15.1pt">19</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">entire<FONT STYLE="letter-spacing: 0.05pt">
</FONT>interest<FONT STYLE="letter-spacing: -0.2pt"> </FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>such Party in any and
21l<FONT STYLE="letter-spacing: -0.25pt"> </FONT>wells, materials, equipment, and other property within or pertaining to such participating
area.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">27.2 Procedure<FONT STYLE="letter-spacing: -0.3pt">
</FONT>on Surrender<FONT STYLE="letter-spacing: -0.3pt"> </FONT>or Release Outside Participating Area. Whenever a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Parties owning 100%<FONT STYLE="letter-spacing: -0.3pt"> </FONT>of
the Committed Working Interest in any tract which is<FONT STYLE="letter-spacing: 0.1pt"> </FONT>not within any participating area
desire to<FONT STYLE="letter-spacing: -0.5pt"> </FONT>surrender said 100%<FONT STYLE="letter-spacing: -0.1pt"> </FONT>interest,
such Party<FONT STYLE="letter-spacing: -0.45pt"> </FONT>or Parties shall give<FONT STYLE="letter-spacing: 0.1pt"> </FONT>to<FONT STYLE="letter-spacing: -0.35pt">
</FONT>all other Parties notice thereof, describing such Committed Working <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Interest.
The Parties<FONT STYLE="letter-spacing: -0.15pt"> </FONT>receiving <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such notice, or
any of them, shall have the right <FONT STYLE="letter-spacing: 0.15pt"> </FONT>at their option to take from the Party<FONT STYLE="letter-spacing: 0.05pt">
</FONT>or Parties desiring to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>surrender<FONT STYLE="letter-spacing: -0.1pt"> </FONT>an
assignment<FONT STYLE="letter-spacing: -0.1pt"> </FONT>of such Committed Working Interest<FONT STYLE="letter-spacing: -0.35pt">
</FONT>by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>giving the Party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>or Parties
desiring to<FONT STYLE="letter-spacing: -0.45pt"> </FONT>surrender<FONT STYLE="letter-spacing: -0.1pt"> </FONT>notice of<FONT STYLE="letter-spacing: -0.45pt">
</FONT>election so<FONT STYLE="letter-spacing: -0.25pt"> </FONT>to<FONT STYLE="letter-spacing: -0.25pt"> </FONT>do<FONT STYLE="letter-spacing: -0.5pt">
</FONT>within thirty<FONT STYLE="letter-spacing: -0.5pt"> </FONT>(30)<FONT STYLE="letter-spacing: -0.45pt"> </FONT>days after receipt
of notice of the desire to<FONT STYLE="letter-spacing: -0.45pt"> </FONT>surrender. If such election is<FONT STYLE="letter-spacing: -0.1pt">
</FONT>made as above provided, the Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or Parties taking<FONT STYLE="letter-spacing: -0.45pt">
</FONT>the assignment<FONT STYLE="letter-spacing: -0.15pt"> </FONT>(which shall be taken <FONT STYLE="letter-spacing: 0.05pt">
</FONT>by<FONT STYLE="letter-spacing: 0.1pt"> </FONT>them in proportion to the acreage of<FONT STYLE="letter-spacing: -0.2pt">
</FONT>their respective Committed Working Interests<FONT STYLE="letter-spacing: -0.1pt"> </FONT>among themselves<FONT STYLE="letter-spacing: 0.05pt">
</FONT>in the Unit Area) shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>pay the assigning<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or Parties for<FONT STYLE="letter-spacing: 0.1pt"> </FONT>its or their
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>share of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>the Salvage<FONT STYLE="letter-spacing: -0.15pt">
</FONT>Value of all wells, if<FONT STYLE="letter-spacing: -0.1pt"> </FONT>any, in which the assigning Party<FONT STYLE="letter-spacing: -0.05pt">
</FONT>or Parties<FONT STYLE="letter-spacing: -0.5pt"> </FONT>own an interest<FONT STYLE="letter-spacing: -0.45pt"> </FONT>and
which are located on the land covered by<FONT STYLE="letter-spacing: -0.2pt"> </FONT>such Committed Working Interest, which payment<FONT STYLE="letter-spacing: -0.45pt">
</FONT>shall be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>made upon receipt of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>the
assignment.<FONT STYLE="letter-spacing: -0.45pt"> </FONT>If<FONT STYLE="letter-spacing: -0.1pt"> </FONT>no<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Party elects to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>take such assignment<FONT STYLE="letter-spacing: -0.35pt"> </FONT>within
said thirty<FONT STYLE="letter-spacing: -0.3pt"> </FONT>(30)<FONT STYLE="letter-spacing: 0.1pt"> </FONT>day period, then the Party
or Parties owning such Committed Working Interest may surrender<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the same, if<FONT STYLE="letter-spacing: -0.2pt">
</FONT>surrender<FONT STYLE="letter-spacing: 0.1pt"> </FONT>thereof can be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>made in accordance
with the Unit Agreement. Whenever a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Party <FONT STYLE="letter-spacing: 0.3pt"> </FONT>owning
less than 100%<FONT STYLE="letter-spacing: -0.15pt"> </FONT>of the Committed Working Interest in any tract desires to<FONT STYLE="letter-spacing: -0.2pt">
</FONT>surrender its interest<FONT STYLE="letter-spacing: -0.2pt"> </FONT>therein,<FONT STYLE="letter-spacing: -0.5pt"> </FONT>such
interest<FONT STYLE="letter-spacing: -0.45pt"> </FONT>may be<FONT STYLE="letter-spacing: -0.4pt"> </FONT>acquired by<FONT STYLE="letter-spacing: -0.4pt">
</FONT>the other Party or Parties owning Committed Working Interests in said tract without notice being <FONT STYLE="letter-spacing: 0.1pt">
</FONT>given to any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>other Parties owning interests<FONT STYLE="letter-spacing: -0.3pt">
</FONT>within <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Area. In the event the other Party or Parties owning Committed
Working Interests<FONT STYLE="letter-spacing: -0.2pt"> </FONT>in the tract to be<FONT STYLE="letter-spacing: -0.05pt"> </FONT>surrendered
do not desire to acquire such interest,<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the interest shall be treated as a 100% interest.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">27.3 Accrued Obligations.
A<FONT STYLE="letter-spacing: -0.5pt"> </FONT>Party making<FONT STYLE="letter-spacing: -0.5pt"> </FONT>an assignment<FONT STYLE="letter-spacing: -0.35pt">
</FONT>or<FONT STYLE="letter-spacing: -0.25pt"> </FONT>surrender in accordance with Section 27.1<FONT STYLE="letter-spacing: -0.1pt">
</FONT>or<FONT STYLE="letter-spacing: -0.35pt"> </FONT>Section 27.2<FONT STYLE="letter-spacing: -0.25pt"> </FONT>shall not be<FONT STYLE="letter-spacing: 0.05pt">
</FONT>relieved of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>its liability<FONT STYLE="letter-spacing: -0.2pt"> </FONT>for<FONT STYLE="letter-spacing: 0.1pt">
</FONT>any obligation<FONT STYLE="letter-spacing: -0.05pt"> </FONT>accrued under this Agreement at the time the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>assignment or surrender is made or of the obligation to bear its share of the Costs incurred in any Drilling,<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Deepening, Plugging<FONT STYLE="letter-spacing: -0.1pt"> </FONT>Back, or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Completing
operation<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in which such Party had elected to participate prior to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the making<FONT STYLE="letter-spacing: -0.5pt"> </FONT>of such assignment<FONT STYLE="letter-spacing: -0.1pt"> </FONT>or
surrender,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>except to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the extent that the
Party<FONT STYLE="letter-spacing: -0.2pt"> </FONT>or Parties<FONT STYLE="letter-spacing: -0.25pt"> </FONT>receiving such assignment<FONT STYLE="letter-spacing: -0.2pt">
</FONT>shall <FONT STYLE="letter-spacing: 0.05pt"> </FONT>assume,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>with the Approval
of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>the Parties,<FONT STYLE="letter-spacing: -0.15pt"> </FONT>any and all obligations
of the assigning Party under this Agreement and under the Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 28</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>LIABILITY</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.1 Liability.
The liability of the Parties hereunder<FONT STYLE="letter-spacing: -0.1pt"> </FONT>shall be several and not joint or collective.
Each Party shall be responsible only for its obligations as herein set out.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.2 No Partnership
Created. It is not the intention of the Parties to <FONT STYLE="letter-spacing: 0.05pt"> </FONT>create, nor shall this Agreement<FONT STYLE="letter-spacing: -0.1pt">
</FONT>or the Unit Agreement be<FONT STYLE="letter-spacing: 0.1pt"> </FONT>construed as creating, a mining or other <FONT STYLE="letter-spacing: 0.1pt">
</FONT>partnership<FONT STYLE="letter-spacing: -0.15pt"> </FONT>or association between the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Parties or as rendering them liable as partners or associates.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.3 Election.
Each of the Parties hereby elects, under the authority of Section 761(a) <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Internal<FONT STYLE="letter-spacing: -0.2pt">
</FONT>Revenue Code of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>18<FONT STYLE="letter-spacing: -1.3pt"> </FONT>86 to be excluded
from the application<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>all the provisions
of Subchapter<FONT STYLE="letter-spacing: -0.4pt"> </FONT>K of Chapter 1 of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>Subtitle<FONT STYLE="letter-spacing: 0.3pt">
</FONT>A of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Internal Revenue Code of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>1986.
In making<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>election, each Party states<FONT STYLE="letter-spacing: -0.1pt">
</FONT>that income derived by<FONT STYLE="letter-spacing: -0.1pt"> </FONT>it from operations under this Agreement<FONT STYLE="letter-spacing: 0.15pt">
</FONT>can be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>adequately<FONT STYLE="letter-spacing: -0.2pt"> </FONT>determined without
computation of partnership taxable income. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>If the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>income tax laws of the State or States in which the Unit Area is<FONT STYLE="letter-spacing: -0.05pt"> </FONT>located contain,
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>or hereafter<FONT STYLE="letter-spacing: -0.5pt"> </FONT>contain,<FONT STYLE="letter-spacing: -0.5pt">
</FONT>provisions similar<FONT STYLE="letter-spacing: -0.35pt"> </FONT>to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>those contained
in the Subchapter of the Internal Revenue Code of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>1986 above referred to under which
a similar election is permitted, each of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Parties agrees that such election shall
be exercised; and should the income tax laws of such State or States require evidence of such election, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Unit Operator<FONT STYLE="letter-spacing: -0.45pt"> </FONT>is<FONT STYLE="letter-spacing: -0.3pt"> </FONT>authorized<FONT STYLE="letter-spacing: -0.25pt">
</FONT>and directed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to execute the same on behalf of each Party. Beginning with the
first taxable year of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>operation under this Agreement, each Party agrees that <FONT STYLE="letter-spacing: 0.1pt">
</FONT>the deemed election provided by Federal Regulations Section 1.761-2(b)(2)(ii) will apply, and no Party will file an <FONT STYLE="letter-spacing: 0.3pt">
</FONT>application under Federal Regulations Section 1.761&middot;2(b)(3)(i) to revoke said election. *See Page 22.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 29</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>NOTICES</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">29.1 Giving and
Receipt. Whenever a<FONT STYLE="letter-spacing: 0.1pt"> </FONT>rig is<FONT STYLE="letter-spacing: -0.3pt"> </FONT>on location,
every notice and every response shall be<FONT STYLE="letter-spacing: 0.15pt"> </FONT>by telephone, to be<FONT STYLE="letter-spacing: 0.3pt">
</FONT>confirmed promptly in writing. In all other <FONT STYLE="letter-spacing: 0.3pt"> </FONT>instances, any <FONT STYLE="letter-spacing: 0.1pt">
</FONT>notice, response, consent, advice, or statement herein provided or permitted to be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>given
shall be<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in writing<FONT STYLE="letter-spacing: -0.05pt"> </FONT>and shall be<FONT STYLE="letter-spacing: 0.05pt">
</FONT>deemed given <FONT STYLE="letter-spacing: 0.1pt"> </FONT>only when received by the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Party to whom the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>same is directed.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">29.2 Addresses.
For the foregoing purposes, each Party's<FONT STYLE="letter-spacing: 0.15pt"> </FONT>address and telephone number shall be deemed
to be the address and telephone number <FONT STYLE="letter-spacing: 0.3pt"> </FONT>set forth <FONT STYLE="letter-spacing: 0.15pt">
</FONT>under or opposite its signature hereto, unless and until such Party <FONT STYLE="letter-spacing: 0.05pt"> </FONT>specifies
another address or telephone<FONT STYLE="letter-spacing: -0.2pt"> </FONT>number<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by<FONT STYLE="letter-spacing: 0.1pt">
</FONT>not less than ten (10)<FONT STYLE="letter-spacing: -0.2pt"> </FONT>days' prior notice to all other Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 30</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EXECUTION</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">30.1 Counterparts.<FONT STYLE="letter-spacing: 0.15pt">
</FONT>This Agreement may be executed in counterparts, and all such counterparts taken together shall be deemed<FONT STYLE="letter-spacing: 0.05pt">
</FONT>to constitute one and the same instrument.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">30.2 Ratification.
This Agreement may be executed by the execution and delivery of<FONT STYLE="letter-spacing: -0.15pt"> </FONT>a good<FONT STYLE="letter-spacing: -0.25pt">
</FONT>and sufficient instrument<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: -0.45pt"> </FONT>ratification,<FONT STYLE="letter-spacing: -0.35pt">
</FONT>adopting and entering<FONT STYLE="letter-spacing: -0.5pt"> </FONT>into this Agreement. Such ratification<FONT STYLE="letter-spacing: -0.2pt">
</FONT>shall have the same effect as if<FONT STYLE="letter-spacing: -0.3pt"> </FONT>the Party executing<FONT STYLE="letter-spacing: -0.4pt">
</FONT>it had executed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>this Agreement<FONT STYLE="letter-spacing: -0.3pt"> </FONT>or<FONT STYLE="letter-spacing: 0.1pt">
</FONT>a counterpart hereof.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">20</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">ROCKY MOUNTAIN UNIT OPERATING AGREEMENT</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">Form 2 (Divided Interest)</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">February, 1980</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">30.3 Effect<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>Signature.<FONT STYLE="letter-spacing: -0.2pt"> </FONT>When this Agreement<FONT STYLE="letter-spacing: -0.25pt">
</FONT>is executed<FONT STYLE="letter-spacing: 0.05pt"> </FONT>by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>two<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Parties, execution by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>each shall be deemed consideration for execution<FONT STYLE="letter-spacing: 0.3pt">
</FONT>by the other,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>and each Party theretofore or thereafter executing this Agreement<FONT STYLE="letter-spacing: 0.05pt">
</FONT>shall thereupon become and remain bound hereby until the termination<FONT STYLE="letter-spacing: -0.15pt"> </FONT>of<FONT STYLE="letter-spacing: -0.1pt">
</FONT>this Agreement. However, if the<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Unit Agreement does not become effective within
twelve (12) months<FONT STYLE="letter-spacing: -0.2pt"> </FONT>from and after the date of this Agreement, then,<FONT STYLE="letter-spacing: 0.05pt">
</FONT>at the expiration<FONT STYLE="letter-spacing: -0.35pt"> </FONT>of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>said period,
this Agreement shall terminate.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 31</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUCCESSORS AND ASSIGNS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">31.1 Covenants.
This Agreement<FONT STYLE="letter-spacing: -0.4pt"> </FONT>shall be binding<FONT STYLE="letter-spacing: 0.05pt"> </FONT>upon and
shall inure<FONT STYLE="letter-spacing: -0.2pt"> </FONT>to the benefit of<FONT STYLE="letter-spacing: -0.3pt"> </FONT>all Parties
signing the same, their heirs, devisees, personal representatives, successors and assigns, and their successors in interest,<FONT STYLE="letter-spacing: 0.15pt">
</FONT>whether or not it is<FONT STYLE="letter-spacing: 0.1pt"> </FONT>signed by all the Parties<FONT STYLE="letter-spacing: -0.3pt">
</FONT>listed below.<FONT STYLE="letter-spacing: 0.1pt"> </FONT>The terms<FONT STYLE="letter-spacing: -0.3pt"> </FONT>hereof shall
constitute covenants running with the lands and the Committed Working Interests<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of
the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 32</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>HEADINGS FOR CONVENIENCE</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">32.1 Headings.
The Table of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Contents<FONT STYLE="letter-spacing: 0.3pt"> </FONT>and the headings used
in this Agreement are inserted for convenience only and shall be disregarded in construing this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 33</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>RIGHT OF APPEAL</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">33.1 Not Waived.
Nothing<FONT STYLE="letter-spacing: -0.2pt"> </FONT>contained in this Agreement<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall
be<FONT STYLE="letter-spacing: -0.1pt"> </FONT>deemed to constitute<FONT STYLE="letter-spacing: -0.2pt"> </FONT>a waiver by any
Party of any right it would otherwise have to contest the validity of any law or any order or regulation of governmental<FONT STYLE="letter-spacing: 0.3pt">
</FONT>authority (whether Federal, State, or local) relating to or affecting the conduct of operations within the Unit Area or
to appeal from any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>order.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 34</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>SUBSEQUENT<FONT STYLE="letter-spacing: 0.05pt">
</FONT>JOINDER</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">34.1 Prior<FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the Commencement of Operations.<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Prior <FONT STYLE="letter-spacing: 0.1pt">
</FONT>to the commencement of<FONT STYLE="letter-spacing: -0.25pt"> </FONT>operations under the Unit Agreement, all owners of working<FONT STYLE="letter-spacing: 0.15pt">
</FONT>interests in the Unit Area who have joined the Unit Agreement shall be privileged to execute or ratify this Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">34.2 After Commencement
of Operations. After commencement of operations under the Unit Agreement,<FONT STYLE="letter-spacing: -0.1pt"> </FONT>any working<FONT STYLE="letter-spacing: 0.1pt">
</FONT>interest<FONT STYLE="letter-spacing: -0.35pt"> </FONT>in land within<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the Unit
Area which is not then committed hereto may be committed to this Agreement<FONT STYLE="letter-spacing: -0.3pt"> </FONT>and to the
Unit Agreement<FONT STYLE="letter-spacing: -0.05pt"> </FONT>upon such reasonable terms<FONT STYLE="letter-spacing: -0.15pt"> </FONT>and
conditions as may receive the Approval of the Parties.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 35</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>CARRIED<FONT STYLE="letter-spacing: -0.15pt">
</FONT>INTERESTS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">35.1 Treatment
of. <FONT STYLE="letter-spacing: 0.3pt"> </FONT>If any working interest shown on Exhibit B to<FONT STYLE="letter-spacing: 0.05pt"><I>
</I></FONT>the Unit Agreement and committed<FONT STYLE="letter-spacing: -0.25pt"> </FONT>thereto is<FONT STYLE="letter-spacing: 0.3pt">
</FONT>a carried working interest, such interest shall,<FONT STYLE="letter-spacing: -0.05pt"> </FONT>if the carrying<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>executes this Agreement, be<FONT STYLE="letter-spacing: -0.25pt"> </FONT>deemed
to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>be,<FONT STYLE="letter-spacing: -0.4pt"> </FONT>for<FONT STYLE="letter-spacing: -0.05pt">
</FONT>the purpose of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>this Agreement, a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Committed<FONT STYLE="letter-spacing: -0.05pt">
</FONT>Working Interest owned by the carrying<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 36</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>EFFECTIVE DATE AND TERM</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">36.1 Effective<FONT STYLE="letter-spacing: -0.4pt">
</FONT>Date and Term. This Agreement shall become<FONT STYLE="letter-spacing: 0.15pt"> </FONT>effective upon the effective date
of<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the Unit Agreement,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall continue in
effect during the term of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Unit Agreement,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>and shall terminate concurrently therewith.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">36.2 Effect of
Termination.<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Termination of this Agreement<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall
not relieve any Party<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of its obligations then accrued hereunder. Notwithstanding termination
of this Agreement, the provisions hereof <FONT STYLE="letter-spacing: 0.05pt"> </FONT>relating<FONT STYLE="letter-spacing: 0.15pt">
</FONT>to the charging and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>payment of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Costs
and the disposition of materials and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>equipment shall continue<FONT STYLE="letter-spacing: -0.5pt">
</FONT>in force until all materials and equipment owned by<FONT STYLE="letter-spacing: -0.05pt"> </FONT>the Parties have been disposed
of<FONT STYLE="letter-spacing: -0.5pt"> </FONT>and until final accounting between Unit Operator and the Parties has been made.
Termination of this Agreement<FONT STYLE="letter-spacing: -0.4pt"> </FONT>shall automatically<FONT STYLE="letter-spacing: -0.35pt">
</FONT>terminate all rights<FONT STYLE="letter-spacing: -0.5pt"> </FONT>and interests acquired by virtue<FONT STYLE="letter-spacing: -0.35pt">
</FONT>of this Agreement in lands within the Unit Area, except such transfers of Committed Working Interests as have been evidenced
by formal written instruments of transfer.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">21</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>ARTICLE 37</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: center"><B>OTHER PROVISIONS</B></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify">37.1&#9;<FONT STYLE="letter-spacing: 0.1pt"><U>PAYM</U></FONT><U>ENT<FONT STYLE="letter-spacing: -0.3pt">
</FONT>OF TAXES RELATING TO PRODUCTION.</U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&#9;A. At<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and during such time, or times, as Non-Operator is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>exercising the<FONT STYLE="letter-spacing: 0.3pt">
</FONT>right to take in kind or separately dispose of its proportionate part of the production as set forth in Paragraph 6.4 hereof,
Non-Operator shall pay, or arrange for the payment of, all production, severance, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>gathering,
sales or similar taxes imposed upon such part.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&#9;B. At<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and during such time, or times, as Unit Operator is selling Non-Operator's proportionate part of the production,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>as set forth m Paragraph 6.5 hereof, Unit Operator shall pay, or<FONT STYLE="letter-spacing: 0.05pt"> </FONT>arrange for
the payment of,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>all production, severance, gathering, sales or similar taxes imposed
upon such part.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">37.2 <FONT STYLE="letter-spacing: 0.1pt">
</FONT><U>NON-CONSENT INVESTMENT ADJUSTMENT.</U> <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Notwithstanding any provision in this
Agreement to the contrary, no Party shall be liable, without its consent, for any investment adjustment charge under the provisions
of Section 13.3D or 13.4D, which charge is in excess of the<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Party's credits under Article
13. In the event of the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>establishment, enlargement or contraction of a<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Participating Area, the provisions of Article 12, and other provisions related thereto, shall be applicable to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>any investment adjustment to the same extent that these provisions are applicable to a well drilled otherwise than for the
account of all Parties entitled to participate therein. Any Party subject to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>such charge
may elect not to pay it in cash. If, within 30 days after proposal for establishment, enlargement or con<FONT STYLE="letter-spacing: 0.1pt">
</FONT>traction of a Participating Area has been submitted by Unit Operator in writing to the Working Interest Owners involved,
a Party elects not to participate in the investment adjustment applicable <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to the establishment,
enlargement or contraction, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>that Party shall be a<FONT STYLE="letter-spacing: 0.15pt">
</FONT>Non-Drilling Party, and shall be deemed, as of the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>effective date of the resulting
area in connection with which such <FONT STYLE="letter-spacing: 0.15pt"> </FONT>charge is<FONT STYLE="letter-spacing: -0.25pt">
</FONT>made, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to<FONT STYLE="letter-spacing: -0.3pt"> </FONT>have relinquished the
interest for which such charge is<FONT STYLE="letter-spacing: 0.3pt"> </FONT>made to the Party, or Parties, who would otherwise
be entitled to receive a credit under Section 13.3D or Section 13.4D, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>which latter
Party, or Parties, shall be the Drilling Party with respect to this relinquished interest. The Drilling Party shall own the relinquished
interest until it reverts to Non-Drilling Party pursuant to Article 12, except that it is specifically understood that the Article
12.4B percentage for exercise of the Non-Drilling Option applicable to establishment, enlargement or contraction of the Participating
Area be 300%.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">28.3 <U>TAX ELECTION</U>.
(Continued) This election by the Parities to be excluded from the application of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all
of the provisions of <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Subchapter K does not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>apply
in any way to any subsequent agreements between the Parties, or with third parties, concerning the sharing of costs for the drilling
of any wells in the Unit Area. <FONT STYLE="letter-spacing: 0.05pt"> </FONT>The Parties reserve the right to decide with each such
subsequent agreement whether they elect to be excluded from the application of Subchapter K.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0; text-align: justify; text-indent: 15.1pt">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.2pt 0 0; text-align: center">22</P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2.2pt 0 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold"><B>IN WITNESS WHEREOF, </B>the parties hereto have caused this agreement to be executed and have set opposite their respective names</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">the date of execution.</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold; text-decoration: underline; text-align: center">UNIT OPERATOR&nbsp; AND WORKING INTEREST OWNER</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; font-weight: bold"><B>CORTEZ EXPLORATION, LLC</B></TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">By:&nbsp; /s/Otto F. Duffield</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Otto F. Duffield</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Address:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16786 Kincheloe&nbsp; Road</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Siloam Springs, Arkansas 72761&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">Date of Execution</TD></TR>
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    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">February 4, 2010</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">STATE OF <U>&nbsp;OKLAHOMA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;)</U></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">) ss.</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">COUNTY OF <U> TULSA )</U></TD>
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<TR>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 27pt">The foregoing instrument was acknowledged before me by <U> OTTO F. DUFFIELD </U>,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-decoration: underline">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;as</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">MANAGER</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">of Cortez Exploration,&nbsp; LLC.</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 27pt">This <U> 4TH</U> day of <U> FEBRUARY </U>, 2010.</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">WITNESS my hand and official seal.</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">My Commission Expires:</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-decoration: underline">&nbsp;&nbsp;&nbsp; DECEMBER 4, 2010&nbsp;&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">/s/ Gale L. Staton</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: center">Notary Public</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">UNIT OPERATOR SIGNATURE PAGE FOR THE</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">PARADISE UNIT AGREEMENT</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-family: Times New Roman, Times, Serif">NYE AND MINERAL COUNTIES, NEVADA</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 44%">&nbsp;</TD>
    <TD STYLE="width: 22%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 45.75pt 0 378.85pt"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 45.75pt 0 378.85pt"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 45.75pt 0 378.85pt"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 3.9pt 45.75pt 0 378.85pt"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 92%; font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">EXHIBIT &quot;1&quot;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Attached to and made a part of <U> the Unit Operating Agreement for the Paradise Unit Area, Mineral and Nye Counties, Nevada </U></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; font: bold 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">ACCOUNTING PROCEDURE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: bold 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">JOINT OPERATIONS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP COLSPAN="3" STYLE="font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">I.&nbsp; GENERAL PROVISIONS</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Definitions</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Joint&nbsp;&nbsp;&nbsp; Property&quot;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; real&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; personal&nbsp;&nbsp;&nbsp; property&nbsp;&nbsp;&nbsp; subject&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp; which&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Accounting&nbsp;&nbsp;&nbsp; Procedure</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;is attached.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operations&quot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; proper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; development,&nbsp;&nbsp;&nbsp; operation,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; protection&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">maintenance of the Joint Property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Joint&nbsp;&nbsp;&nbsp; Account&quot;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; account&nbsp;&nbsp;&nbsp;&nbsp; showing&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; received&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; conduct&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operations and which are to be shared by the Parties.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Operator&quot; shall mean the party designated&nbsp; to conduct the Joint Operations.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;''Non-Operators&quot; shall mean the Parties to this agreement other than the Operator.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Parties&quot; shall mean Operator and Non-Operators</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;First&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level&nbsp;&nbsp;&nbsp;&nbsp; Supervisors&quot;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; those &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; primary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; direct</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">supervision&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; andlor&nbsp;&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp;&nbsp; labor&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; field&nbsp;&nbsp;&nbsp;&nbsp; operating</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;capacity.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Technical&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees&quot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; having&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; special&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; specific&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; engineering,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; geological&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">professional&nbsp;&nbsp;&nbsp;&nbsp; skills,&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp; primary&nbsp;&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; handling&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; specific&nbsp;&nbsp;&nbsp; operating&nbsp;&nbsp;&nbsp;&nbsp; conditions&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">problems for the benefit of the Joint Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Personal Expenses'' shall mean travel and other reasonable reimbursable expenses of Operator's employees.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Material&quot; shall mean personal property, equipment&nbsp; or supplies acquired or held for use on the Joint Property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&quot;Controllable&nbsp;&nbsp;&nbsp; Material''&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1aterial&nbsp; which&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; time&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; so&nbsp;&nbsp;&nbsp; classified&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; Classification&nbsp;&nbsp;&nbsp;&nbsp; Manual&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">most recently recommended&nbsp; by the Council or Petroleum Accountants Societies.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Statement and Billings</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; bill&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; before&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; last&nbsp;&nbsp;&nbsp; day&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; each&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; their&nbsp;&nbsp;&nbsp; proportionate&nbsp;&nbsp;&nbsp;&nbsp; share&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Account&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; preceding&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; month.&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp;&nbsp; will&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; accompanied&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp; identify&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; authority&nbsp;&nbsp;&nbsp;&nbsp; for</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">expenditure,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lease&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; facility,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; summarized&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; appropriate&nbsp;&nbsp;&nbsp;&nbsp; classifications&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; investment&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">expense &nbsp;&nbsp;&nbsp;&nbsp;except&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp; items&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Controllable&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; unusual&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; separately&nbsp;&nbsp;&nbsp;&nbsp; identified&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">fully described in detail.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Advances and Payments by Non-Operators</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless&nbsp;&nbsp;&nbsp;&nbsp; otherwise&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; agreement,&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; require&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; advance&nbsp;&nbsp;&nbsp;&nbsp; their</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">share&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; estimated&nbsp;&nbsp;&nbsp;&nbsp; cash&nbsp;&nbsp;&nbsp; outlay&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; succeeding&nbsp;&nbsp;&nbsp;&nbsp; month's&nbsp;&nbsp;&nbsp; operation&nbsp;&nbsp;&nbsp;&nbsp; within&nbsp;&nbsp;&nbsp;&nbsp; fifteen&nbsp;&nbsp;&nbsp; (15)&nbsp;&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp; receipt&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">billing&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; first&nbsp;&nbsp; day&nbsp;&nbsp; of&nbsp;&nbsp; the&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; advance&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; required,&nbsp;&nbsp;&nbsp; whichever&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; later.&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; adjust</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">each monthly billing to reflect advances&nbsp; received from the Non-Operators.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp;&nbsp; Non-Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; pay&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp; proportion&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; all&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp; within&nbsp;&nbsp;&nbsp; fifteen&nbsp;&nbsp; (15)&nbsp;&nbsp; days&nbsp;&nbsp; after&nbsp;&nbsp; receipt.&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; payment&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; not&nbsp;&nbsp; made</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Within such time, the unpaid balance shall bear interest monthly at the prime rate in effect at <U>Chase Manhattan Bank, New York, New York</U></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; first&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; day&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; delinquency&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; occurs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">maximum&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; permitted&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp;&nbsp; usury&nbsp;&nbsp;&nbsp; laws&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; state&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; located,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">whichever&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; lesser,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp; attorney's&nbsp;&nbsp;&nbsp; fees,&nbsp;&nbsp; court&nbsp;&nbsp;&nbsp; costs.&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp; connection&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; collection&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; unpaid</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">amounts</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Adjustments</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Payment&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; any&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; &nbsp;not&nbsp;&nbsp;&nbsp; prejudice&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; right of&nbsp;&nbsp; any&nbsp;&nbsp; Non-Operator to&nbsp;&nbsp; protest&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; question&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; correctness&nbsp;&nbsp;&nbsp; thereof.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">provided,&nbsp;&nbsp;&nbsp;&nbsp; however,&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; bills&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; statements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rendered&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; during&nbsp; &nbsp;&nbsp;&nbsp;any&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; shall</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">conclusively&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; presumed&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; true&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; correct&nbsp;&nbsp;&nbsp; after&nbsp; twenty-four&nbsp;&nbsp;&nbsp; (24)&nbsp;&nbsp;&nbsp; months&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; end&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; calendar</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">year,&nbsp;&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp;&nbsp; within&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; said&nbsp;&nbsp;&nbsp;&nbsp; twenty-four&nbsp;&nbsp;&nbsp;&nbsp; (24)&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; Non-Operator&nbsp;&nbsp;&nbsp;&nbsp; takes&nbsp;&nbsp;&nbsp;&nbsp; written&nbsp;&nbsp;&nbsp; exception&nbsp;&nbsp;&nbsp;&nbsp; thereto&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; makes</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">claim&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; adjustment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No&nbsp;&nbsp; adjustment&nbsp;&nbsp;&nbsp; favorable&nbsp;&nbsp; to&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp; made&nbsp;&nbsp; &nbsp;unless&nbsp;&nbsp;&nbsp; it&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; withm&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; same</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">prescribed&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; th1s&nbsp;&nbsp;&nbsp; paragraph&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; prevent&nbsp;&nbsp;&nbsp;&nbsp; adjustments&nbsp;&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; fi&quot;om&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; physical&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Controllable Material as provided for in Section&nbsp; V.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">COPYRIGHT&copy; 1985 by the Council of Petroleum&nbsp; Accountants Societies.</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-1-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Audits</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A&nbsp;&nbsp; Non-Operator,&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp;&nbsp; notice&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; writing&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; Non-Operators,&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; have&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; right&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; audit</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator's accounts and records relating to the Joint Account for any calendar year wllhln the twenty-four</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(24)&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp; end&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp; year;&nbsp;&nbsp;&nbsp;&nbsp; provided,&nbsp;&nbsp;&nbsp; however,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; making&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp;&nbsp; audit&nbsp;&nbsp;&nbsp; &nbsp;shall&nbsp;&nbsp;&nbsp;&nbsp; not</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">extend&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; time&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taking&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; written&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; exception&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustments&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; accounts&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Paragraph&nbsp;&nbsp;&nbsp;&nbsp; 4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Section&nbsp; 1.&nbsp;&nbsp;&nbsp; Where&nbsp;&nbsp;&nbsp;&nbsp; there&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; two&nbsp; or&nbsp; more&nbsp; Non-Operators,&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; make</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">every&nbsp;&nbsp;&nbsp; reasonable&nbsp;&nbsp;&nbsp;&nbsp; effort&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; conduct&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; audit&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; manner&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; Will&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; result&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; minimum&nbsp;&nbsp;&nbsp; of&nbsp; &nbsp;&nbsp;inconvenience</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; bear&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp;&nbsp; portion&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators'&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; audit&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; this</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">paragraph&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; audits&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; conducted&nbsp;&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp; once&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; year</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Without&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp;&nbsp; approval&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; resignation&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; removal&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">at the expense of those Non-Operators&nbsp; approvmg&nbsp; such audit.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Operator shall reply in writing to an audit report within 180 days after receipt of such report</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Approval By Non-Operators</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Where&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp; approval&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; expressly&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; sections&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; th1s</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Accounting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Procedure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;this&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Procedure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; attached&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; contains&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; no</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">contrary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; regard&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; thereto,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; notify&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp; proposal,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">agreement or approval&nbsp; of a majority in interest of the Non-Operators shall be controlling on all Non-Operators</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">II.&nbsp; DIRECT CHARGES</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP COLSPAN="3" STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Operator shall charge the Joint Account With the following items:</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Ecological and&nbsp; Environmental</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Costs&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; result&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; regulatory&nbsp;&nbsp;&nbsp;&nbsp; requirements&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; satisfy</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">environmental&nbsp;&nbsp;&nbsp;&nbsp; considerations&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; include&nbsp;&nbsp;&nbsp;&nbsp; surveys&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; an&nbsp;&nbsp;&nbsp;&nbsp; ecological&nbsp;&nbsp;&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">archaeological&nbsp; nature and pollution control procedures as required by applicable laws and regulations.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Rentals and Royalties</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Lease rentals and royalties paid by Operator&nbsp; for the Joint Operations.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Labor</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ( 1)&nbsp;&nbsp;&nbsp; Salaries&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp; field&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; conduct&nbsp;&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint Operations</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Salaries of First level Supervisors&nbsp; in the field.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp; Salaries&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Technical&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; are</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; excluded from the overhead rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp; Salaries&nbsp; and&nbsp; wages&nbsp; of&nbsp; Technical&nbsp; Employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; temporarily&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; permanently&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; assigned&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; directly</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employed&nbsp; in the operation or the Joint Property if such charges are excluded from the overhead rates.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; holiday,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; vacation,&nbsp;&nbsp;&nbsp;&nbsp; sickness&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; disability&nbsp;&nbsp;&nbsp; benefits&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; customary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; allowances&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp;&nbsp; salaries&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; 3A&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 3B&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; &quot;when&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; basis&quot;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; &quot;percentage&nbsp;&nbsp;&nbsp; assessment&quot;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp; the&nbsp; amount&nbsp; of&nbsp; salaries&nbsp; and&nbsp; wages&nbsp; chargeable&nbsp; to&nbsp; the&nbsp; Joint&nbsp; Account&nbsp; under&nbsp; Paragraph&nbsp; 3A&nbsp; of&nbsp; this&nbsp; Section&nbsp; II.&nbsp; If</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; percentage assessment&nbsp; is&nbsp; used, the rate shall be based on the Operator's cost experience.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenditures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; contributions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;pursuant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; assessments&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1mposed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; authority&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; applicable&nbsp; to Operator's costs chargeable&nbsp; to the Joint Account under Paragraphs 3A and 3B of this Section II.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">D.&nbsp;&nbsp;&nbsp;&nbsp; Personal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp; employees&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whose&nbsp;&nbsp;&nbsp;&nbsp; salaries&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; under</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraphs 3A and 3B of this Section II.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Employee Benefits</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; established&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plans&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; employees'&nbsp;&nbsp;&nbsp;&nbsp; group&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; life&nbsp;&nbsp;&nbsp;&nbsp; insurance,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hospitalization,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pension,&nbsp;&nbsp;&nbsp;&nbsp; retirement.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">stock&nbsp;&nbsp;&nbsp; purchase.&nbsp;&nbsp;&nbsp; thrift.&nbsp;&nbsp;&nbsp;&nbsp; bonus,&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp; plans &nbsp;&nbsp;&nbsp;of&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; like&nbsp;&nbsp; nature.&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; labor&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp; Paragraphs&nbsp;&nbsp;&nbsp; 3A&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; 3B&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;exceed&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; percent</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">most recently recommended&nbsp; by the Council&nbsp; of Petroleum Accountants&nbsp; Societies</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-2-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material purchased or furnished by Operator for use on the Joint Property as provided under Section IV.&nbsp; Only such</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; purchased&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; transferred&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; Immediate&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">reasonably&nbsp;&nbsp;&nbsp; practical&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; consistent&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp; efficient&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; economical&nbsp;&nbsp;&nbsp; operations.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; accumulation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; surplus&nbsp;&nbsp;&nbsp; stocks&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">avoided.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">6</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Transportation</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Transportation of employees and&nbsp; Material necessary for the Joint&nbsp; Operations but subject to the following limitations:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; moved&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; warehouse&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; properties,&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; distance&nbsp;&nbsp;&nbsp; greater&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; distance&nbsp;&nbsp; from&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; reliable&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp;&nbsp; where&nbsp;&nbsp; like</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;material is normally available or railway receiving point nearest the Joint Property unless agreed to by the Parties</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; surplus&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; moved&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; warehouse&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; storage&nbsp;&nbsp;&nbsp; point,&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; distance&nbsp;&nbsp;&nbsp; greater&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; distance&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; reliable&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp;&nbsp; where&nbsp;&nbsp;&nbsp; like&nbsp;&nbsp;&nbsp; material&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; normally</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; available,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp; rece1vmg&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp; No&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; moving&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; properties&nbsp;&nbsp; belonging&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parties.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">C.&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; application&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; subparagraphs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; B&nbsp;&nbsp;&nbsp; above.&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; option&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; equalize&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp; trucking&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; is</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; avallable&nbsp;&nbsp;&nbsp; when&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; $400&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; less&nbsp;&nbsp; excluding&nbsp;&nbsp;&nbsp; accessorial&nbsp;&nbsp;&nbsp; charges.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; $400&nbsp;&nbsp;&nbsp; will&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; adjusted&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; amount most recently recommended by the Council of Petroleum Accountants Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">7</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Services</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">The&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; services,&nbsp;&nbsp; equipment&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; utilities&nbsp;&nbsp;&nbsp; provided&nbsp; by&nbsp;&nbsp;&nbsp; outside&nbsp;&nbsp;&nbsp; sources,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp; excluded&nbsp; by&nbsp;&nbsp;&nbsp; Paragraph</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">10&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II&nbsp; and&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; i,&nbsp;&nbsp;&nbsp; ii,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; III,&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp; III.&nbsp; The&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp; consultant&nbsp;&nbsp;&nbsp; services&nbsp; and&nbsp; contract</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">services&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; technical&nbsp;&nbsp;&nbsp;&nbsp; personnel&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; engaged&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint Property&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; excluded&nbsp;&nbsp;&nbsp;&nbsp; from the overhead</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">rates.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp; consultant&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; technical&nbsp;&nbsp;&nbsp; personnel&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; engaged&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Joint Property shall not be charged to the Joint Account unless previously agreed to by the Parties</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">8</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Equipment and&nbsp; Facilities&nbsp; Furnished By Operator</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; owned&nbsp;&nbsp;&nbsp; equipment&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; facilities&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; commensurate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; ownership&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; operation.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; include&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; maintenance.&nbsp;&nbsp;&nbsp;&nbsp; repairs,&nbsp;&nbsp;&nbsp;&nbsp; other &nbsp;&nbsp;&nbsp;&nbsp;operating</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expense,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; insurance,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taxes,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; depreciation,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; interest&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; gross&nbsp;&nbsp;&nbsp;&nbsp; investment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp;&nbsp; accumulated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; depreciation&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">exceed <U> twelve </U> percent (<U> 12 </U><I>%) </I>per annum Such rates shall not exceed average commercial</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rates currently prevailing in the immediate area of the Joint Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp; lieu &nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; 1n&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 8A&nbsp;&nbsp;&nbsp; above.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; rnay&nbsp;&nbsp; elect&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp; average&nbsp;&nbsp;&nbsp; commercial&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; prevailmg&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; immediate&nbsp;&nbsp;&nbsp;&nbsp; area&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp; 20%.&nbsp; For automotive equipment, Operator may elect to use rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published by the Petroleum Motor Transport Assoc1ation.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">9</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Damages&nbsp; and&nbsp; Losses to Joint&nbsp; Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">All&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; expenses&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; repa1r&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; replacement&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp; because&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; damages&nbsp;&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">losses&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; fire,&nbsp;&nbsp;&nbsp;&nbsp; flood,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; storm,&nbsp;&nbsp;&nbsp;&nbsp; theft,&nbsp;&nbsp;&nbsp;&nbsp; accident,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; cause,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gross</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">negligence&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; willful&nbsp;&nbsp;&nbsp; misconduct.&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; furnish&nbsp;&nbsp;&nbsp; Non-Operator&nbsp;&nbsp;&nbsp; written&nbsp;&nbsp;&nbsp;&nbsp; notice&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; damages&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; losses&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; as</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">soon as practicable after a report thereof has been received by Operator</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Legal&nbsp; Expense</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Expense&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; handling,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; investigating&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; settling&nbsp;&nbsp;&nbsp;&nbsp; litigation&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; claims,&nbsp;&nbsp;&nbsp; discharging&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; liens,&nbsp;&nbsp;&nbsp;&nbsp; payment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Judgment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">amounts&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; settlement&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; claims&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; operations&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">protect&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; recover&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; Operator's&nbsp;&nbsp;&nbsp; legal&nbsp;&nbsp; staff&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; fees&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">outside&nbsp;&nbsp; attorneys&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; previously&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp; All&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; legal&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">covered&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; III&nbsp; unless&nbsp;&nbsp;&nbsp;&nbsp; otherwise&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; Section</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">I,&nbsp; Paragraph 3.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">11</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Taxes</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">All&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; every&nbsp;&nbsp;&nbsp; kind&nbsp;&nbsp; and&nbsp;&nbsp; &nbsp;nature&nbsp;&nbsp; assessed&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; levied&nbsp;&nbsp; upon&nbsp;&nbsp; or&nbsp;&nbsp; in&nbsp;&nbsp; connection&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp; the&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp; the&nbsp;&nbsp; operation&nbsp;&nbsp;&nbsp; thereof,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">or&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; production&nbsp;&nbsp; therefrom,&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp; have&nbsp;&nbsp;&nbsp; been&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; ad</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">valorem&nbsp;&nbsp;&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; based&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; whole&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; part&nbsp;&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp;&nbsp; separate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; valuations&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; party's&nbsp;&nbsp;&nbsp;&nbsp; working&nbsp;&nbsp;&nbsp;&nbsp; interest,&nbsp;&nbsp;&nbsp;&nbsp; then</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">notwithstanding&nbsp;&nbsp;&nbsp;&nbsp; anything&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; contrary&nbsp;&nbsp;&nbsp; herein,&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">hereto in accordance&nbsp; with the tax value generated&nbsp; by each party's working interest.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">- 3-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">12</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Insurance</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Net&nbsp;&nbsp;&nbsp; premiums&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp; for&nbsp;&nbsp; insurance&nbsp;&nbsp;&nbsp; requ1red&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; earned&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; protection&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">event&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Operations&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; conducted&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; state&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; act&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; self-insurer&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; Worker's&nbsp;&nbsp;&nbsp; Compensation</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">and/or&nbsp;&nbsp;&nbsp; Employers&nbsp;&nbsp; Liability&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; respective&nbsp;&nbsp;&nbsp; state's&nbsp;&nbsp;&nbsp; laws.&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; may,&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; election,&nbsp;&nbsp;&nbsp; include&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; risk&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp; self</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">insurance program and&nbsp; in that&nbsp; event,&nbsp; Operator shall&nbsp; include a charge at Operator's cost&nbsp; not to exceed manual rates.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">13</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Abandonment and Reclamation</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Costs&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; abandonment&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property,&nbsp;&nbsp;&nbsp;&nbsp; Including&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp; &nbsp;&nbsp;or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; regulatory&middot;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">authority.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">14</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Communications</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; acquiring,&nbsp;&nbsp;&nbsp;&nbsp; leasing,&nbsp;&nbsp;&nbsp;&nbsp; installing,&nbsp;&nbsp;&nbsp; operating,&nbsp;&nbsp;&nbsp; repairing&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; maintaining&nbsp;&nbsp;&nbsp;&nbsp; communication&nbsp;&nbsp;&nbsp;&nbsp; systems,&nbsp;&nbsp;&nbsp;&nbsp; Including&nbsp;&nbsp;&nbsp;&nbsp; radio&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">microwave&nbsp;&nbsp;&nbsp; facilities&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; serving&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; event&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; communication&nbsp;&nbsp;&nbsp; facilities/ systems&nbsp;&nbsp;&nbsp; serving&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Property are Operator Owned,&nbsp; charges to the Joint&nbsp; Account shall&nbsp; be made&nbsp; as provided&nbsp; in Paragraph 8 of this Section II.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">15</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Other Expenditures</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Any&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; expenditure&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; covered&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; dealt&nbsp;&nbsp;&nbsp;&nbsp; With&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; foregoing&nbsp;&nbsp; provisions&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp; II,&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp; Section&nbsp;&nbsp; III&nbsp; and &nbsp;&nbsp;&nbsp;which</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">is&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; direct&nbsp;&nbsp; benefit&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; proper&nbsp;&nbsp; conduct&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operations.</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">III.&nbsp;&nbsp; OVERHEAD</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Overhead- Drilling and Producing Operations</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; compensation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; administrative,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; supervision,&nbsp;&nbsp;&nbsp; office&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; warehousing&nbsp;&nbsp;&nbsp;&nbsp; costs.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; charge</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drilling and&nbsp; producing operations on either:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">( <B>X </B>) Fixed Rate Basis, Paragraph 1A, or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) Percentage Basis, Paragraph 1B</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; otherwise&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Parties,&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be &nbsp;&nbsp;&nbsp;&nbsp;in&nbsp;&nbsp;&nbsp;&nbsp; lieu&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; expenses&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; offices&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; applicable&nbsp;&nbsp;&nbsp;&nbsp; burdens&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expenses&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; personnel,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; those&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; chargeable&nbsp;&nbsp;&nbsp;&nbsp; under</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 3A,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; outside&nbsp;&nbsp;&nbsp;&nbsp; sources&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; connection&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; matters&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taxation,&nbsp;&nbsp;&nbsp; traffic,&nbsp;&nbsp;&nbsp; accounting&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; &nbsp;matters&nbsp;&nbsp;&nbsp; before&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; involving&nbsp;&nbsp;&nbsp; governmental&nbsp;&nbsp;&nbsp; agencies&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; included&nbsp;&nbsp;&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; above&nbsp;&nbsp; selected&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp; III&nbsp; unless&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp; are</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">agreed to by the Parties as a direct charge to the<I> </I>Joint Account.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries,&nbsp;&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal&nbsp;&nbsp;&nbsp;&nbsp; Expenses&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Technical&nbsp;&nbsp;&nbsp;&nbsp; Employees&nbsp;&nbsp;&nbsp; &nbsp;and/or&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp; consultant</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; services&nbsp; and&nbsp; contract services of technical personnel directly employed on the&nbsp; Joint&nbsp; Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp; X&nbsp;&nbsp; ) shall&nbsp;&nbsp; be covered by the Overhead rates, or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) shall&nbsp; not be covered by the&nbsp; overhead rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">iii&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; salaries,&nbsp;&nbsp;&nbsp; wages&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal&nbsp;&nbsp;&nbsp;&nbsp; Expenses&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Technical&nbsp;&nbsp;&nbsp; Employees&nbsp;&nbsp;&nbsp; and/or&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; professional&nbsp;&nbsp;&nbsp;&nbsp; consultant&nbsp;&nbsp;&nbsp;&nbsp; servicces</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; contract&nbsp;&nbsp;&nbsp; services&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; technical&nbsp;&nbsp;&nbsp; personnel&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp; temporarily&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; permanently&nbsp;&nbsp;&nbsp; assigned&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp; employed&nbsp;&nbsp;&nbsp;&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the operation&nbsp; of the&nbsp; Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ) shall&nbsp; be covered by the overhead rates, or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (&nbsp;&nbsp; X&nbsp;&nbsp; ) shall&nbsp; not be covered by the&nbsp; overhead rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0verhead- Fixed Rate&nbsp; Bass</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator shall&nbsp; charge the Joint&nbsp; Account at the&nbsp; following rates&nbsp; per&nbsp; well&nbsp; per month:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Drilling well Rate $<U> 6,500.00 </U></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Prorated for&nbsp; less than&nbsp; a full&nbsp; month)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Producing Well Rate $<U> 650.00 </U></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Application of Overhead- Fixed&nbsp; Rate&nbsp; Basis shall&nbsp; be&nbsp; as&nbsp; follows:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(a)<I> </I>Drilling Well Rate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(1)<I> </I>Charges for drilling wells shall begin on the date the well is spudded and terminate on the date</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp; rig,&nbsp;&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp;&nbsp; rig,&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp; units&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; released,&nbsp;&nbsp;&nbsp; whichever</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-4-</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; later,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; sha ll&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp; during&nbsp;&nbsp;&nbsp;&nbsp; suspensron&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp;&nbsp;&nbsp; operations</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp; fifteen&nbsp; (15)&nbsp; or&nbsp; more&nbsp; consecutive calendar days</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Charges&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; wells&nbsp;&nbsp;&nbsp;&nbsp; undergoing&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; type&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; workover&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; recompletion&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; live&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;consecutive&nbsp;&nbsp; work&nbsp;&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; more&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; applied&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; period&nbsp; &nbsp;&nbsp;&nbsp;from&nbsp;&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp; workover&nbsp;&nbsp;&nbsp;&nbsp; operations,&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rig&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; units&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; workover</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; commence&nbsp;&nbsp;&nbsp; through&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; rig&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; unit&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; release,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; during</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; suspension of operations for&nbsp; fifteen&nbsp; ( 15) or more&nbsp; consecutive calendar days.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp; Producing&nbsp; Well Rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; An&nbsp;&nbsp;&nbsp; active&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp; produced&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; Injected&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; into&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; portion&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a one-well charge for the entire month.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp; active&nbsp;&nbsp;&nbsp;&nbsp; completion&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; multi-completed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; production&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; commingled&nbsp;&nbsp;&nbsp;&nbsp; down</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hole&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; providing&nbsp;&nbsp;&nbsp;&nbsp; each completion is considered a separate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well by the&nbsp; governing regulatory authority</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;An&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; inactive&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gas&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shut&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; because&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; overproduction&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; failure&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; purchaser&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; take&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; production&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; considered&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; providing&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; gas&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; directly&nbsp;&nbsp;&nbsp;&nbsp; connected&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a permanent sales outlet.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; month&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plugging&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; abandonment&nbsp;&nbsp;&nbsp;&nbsp; operations</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; completed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; one-well&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whether&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp; has</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; produced except when&nbsp; drilling well&nbsp; rate applies.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(5) All other inactive wells (including but not limited to inactive wells covered <I>by </I>unit allowable, lease</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; allowable, transferred allowable, etc.)&nbsp; shall&nbsp; not qualify for an overhead charge.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; adjusted&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; first&nbsp;&nbsp;&nbsp;&nbsp; day&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; April&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; effective&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; agreement&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounting&nbsp;&nbsp;&nbsp; Procedure&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; attached&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp; adjustment&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; computed&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; multiplying</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">the rate currently in use <I>by </I>the percentage increase or decrease in the average weekly earnings of Crude</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Petroleum&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; Gas&nbsp;&nbsp;&nbsp;&nbsp; Production&nbsp;&nbsp;&nbsp; Workers&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; last&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; compared&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; calendar&nbsp;&nbsp;&nbsp; year&nbsp;&nbsp;&nbsp;&nbsp; preceding&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shown&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; index&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; average&nbsp;&nbsp; weekly&nbsp;&nbsp;&nbsp; earnings&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Crude&nbsp;&nbsp;&nbsp; Petroleum&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; Gas&nbsp;&nbsp;&nbsp;&nbsp; Production&nbsp;&nbsp;&nbsp; workers&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; published</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; United&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; States&nbsp;&nbsp;&nbsp; Department&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Labor.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bureau&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Labor&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statistics,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; equivalent&nbsp;&nbsp;&nbsp; Canadian&nbsp;&nbsp;&nbsp; index&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; Statistics&nbsp;&nbsp;&nbsp; Canada,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; applicable.&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjusted&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp; &nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp; currently&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; use,&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; minus the&nbsp; computed adjustment.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overhead- Percentage Basis</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(1)<I> </I>Operator shall charge the Joint Account at the following rates:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Development</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Percent ( <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> 0/o) of the cost of development of the Joint Property exclusive of costs</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp; under&nbsp; Paragraph 10 of Sect1on&nbsp; II and all salvage credits.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Percent ( <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%</U>) of the cost of operating the Joint Property exclusive of costs provided</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; Paragraphs&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; II,&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; salvage&nbsp;&nbsp;&nbsp; credits,&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; value&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; inJected&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; substances&nbsp;&nbsp;&nbsp; purchased</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; secondary&nbsp;&nbsp;&nbsp; recovery&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; taxes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; assessments&nbsp;&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp;&nbsp; levied,&nbsp;&nbsp;&nbsp;&nbsp; assessed&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp;&nbsp; upon&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mineral interest in and&nbsp; to the Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Application of Overhead- Percentage Basis&nbsp; shall&nbsp; be as&nbsp; follows:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; purpose&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; determining&nbsp;&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp; on&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; percentage&nbsp;&nbsp; basis&nbsp;&nbsp; under&nbsp;&nbsp; Paragraph&nbsp;&nbsp; 1B&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; this&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; III,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; development&nbsp; shall&nbsp; include&nbsp; all&nbsp; costs&nbsp; in connection&nbsp; with drilling,&nbsp; re-drilling,&nbsp; deepening,&nbsp; or&nbsp; any&nbsp; remedial</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; wells&nbsp;&nbsp;&nbsp;&nbsp; involving&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; use&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp; rig&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; crew&nbsp;&nbsp;&nbsp;&nbsp; capable&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; producing</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; interval&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; also.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; preliminary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expenditures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; preparation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expenditures&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp; in&nbsp;&nbsp; abandoning&nbsp;&nbsp;&nbsp; when&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; well&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; completed&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; producer.&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; orig1nal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; construction&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; installation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; assets,&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; expansion&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp;&nbsp; assets&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; project &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;clearly</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; discernible&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp; asset,&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; Major&nbsp;&nbsp;&nbsp; Construction&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; defined&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; this&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp;&nbsp;&nbsp; III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All&nbsp;&nbsp;&nbsp; other</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; costs shall&nbsp; be considered as operating.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Overhead-Major&nbsp; Construction</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">To&nbsp;&nbsp;&nbsp;&nbsp; compensate&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; Overhead&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; construction&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; installation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp; assets,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; expansion&nbsp;&nbsp;&nbsp; of</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">fixed&nbsp;&nbsp;&nbsp;&nbsp; assets,&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; project&nbsp;&nbsp;&nbsp; clearly&nbsp;&nbsp;&nbsp;&nbsp; discernible&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fixed&nbsp;&nbsp;&nbsp;&nbsp; asset&nbsp;&nbsp;&nbsp;&nbsp; required&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; development&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; operation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp; negotiate&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; beginning&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; construction,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">- 5-</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Account for overhead based on the following rates for any Major Construction project in excess of $<U> 25,000 </U></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of first $100,000 or total cost if less, plus</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of costs in excess of $100.000 but less than $1.000.000, plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: italic 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><I>C. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % </I>of costs in excess of $1.000,000.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Total&nbsp;&nbsp; cost&nbsp;&nbsp; shall&nbsp;&nbsp; mean&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; gross&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp; of&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp; one&nbsp;&nbsp; project.&nbsp;&nbsp;&nbsp;&nbsp; For&nbsp;&nbsp; the&nbsp; &nbsp;purpose&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; this&nbsp;&nbsp; paragraph,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; component&nbsp;&nbsp;&nbsp; parts&nbsp;&nbsp; of&nbsp;&nbsp; a&nbsp;&nbsp; single</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">project&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; treated&nbsp;&nbsp;&nbsp; separately&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; drilling&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; workover&nbsp;&nbsp;&nbsp; wells&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; artificial&nbsp;&nbsp;&nbsp;&nbsp; lift&nbsp;&nbsp;&nbsp;&nbsp; equipment&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">excluded.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Catastrophe&nbsp; Overhead</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">To&nbsp;&nbsp;&nbsp; compensate&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; event&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; expenditures&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; single&nbsp;&nbsp;&nbsp; occurrence&nbsp;&nbsp;&nbsp; due</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">to&nbsp;&nbsp;&nbsp; oil&nbsp;&nbsp;&nbsp;&nbsp; spill.&nbsp;&nbsp;&nbsp;&nbsp; blowout,&nbsp;&nbsp;&nbsp;&nbsp; explosion,&nbsp;&nbsp;&nbsp;&nbsp; fire,&nbsp;&nbsp;&nbsp;&nbsp; storm,&nbsp;&nbsp;&nbsp;&nbsp; hurricane.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp;&nbsp; catastrophes&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Parties,&nbsp;&nbsp;&nbsp; which</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">necessary&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; restore&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; equivalent&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; condition&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; existed&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; event&nbsp;&nbsp;&nbsp;&nbsp; causing&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">expenditures,&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp; negotiate&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; prior&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; charging&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">for overhead&nbsp; based on the following rates:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="color: black">A. </FONT><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of total costs through $100,000; plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="color: black">B. </FONT><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;3&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % of total costs in excess of $100,000 but less than $1 ,000,000; plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="color: black">C. </FONT><I><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> % </I>of total costs in excess of $1.000,000.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Expenditures subject <I>to </I>the overheads above will not be reduced by insurance recoveries, and no other overhead</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">provisions of this Section III shall apply.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Amendment&nbsp; of Rates</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">The overhead rates provided for in this Section III may be amended from time to time only <I>by </I>mutual agreement</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">between the Parties hereto if, in practice, the rates are found to be insufficient or excessive.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRICING OF JOINT ACCOUNT MATERIAL PURCHASES, TRANSFERS AND DISPOSITIONS</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator&nbsp;&nbsp;&nbsp;&nbsp; Is&nbsp;&nbsp;&nbsp; responsible&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; make&nbsp;&nbsp;&nbsp; proper&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; tImely&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; credits&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; material</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">movements&nbsp;&nbsp;&nbsp; affecting&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provide&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp; &nbsp;&nbsp;use on&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property:&nbsp;&nbsp;&nbsp;&nbsp; however,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator's&nbsp;&nbsp; option,&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; supplied&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; the&nbsp; Non-Operator.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; make&nbsp;&nbsp;&nbsp;&nbsp; timely&nbsp;&nbsp;&nbsp;&nbsp; disposition&nbsp;&nbsp; of&nbsp; idle&nbsp;&nbsp;&nbsp;&nbsp; and/or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">surplus&nbsp; Materia,&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; disposal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; being&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp; either&nbsp;&nbsp;&nbsp;&nbsp; through&nbsp;&nbsp;&nbsp;&nbsp; sale&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; or&nbsp;&nbsp; Non-Operator,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; division&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; kind,&nbsp;&nbsp;&nbsp; sale&nbsp;&nbsp;&nbsp;&nbsp; to</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">outsiders.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; purchase,&nbsp;&nbsp; but&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp;&nbsp; under&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; obligation&nbsp; &nbsp;to&nbsp;&nbsp; purchase,&nbsp;&nbsp;&nbsp;&nbsp; interest&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp; in&nbsp;&nbsp; surplus&nbsp;&nbsp;&nbsp;&nbsp; condition</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A or B Material.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The disposal of surplus&nbsp; Controllable&nbsp; Material&nbsp; not purchased&nbsp; by the Operator shall be agreed to by the Parties.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Purchases</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp;&nbsp; purchased&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp;&nbsp;&nbsp; paid&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp; deduction&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; discounts&nbsp;&nbsp;&nbsp;&nbsp; received&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp;&nbsp; case&nbsp;&nbsp;&nbsp; of</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp; found&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; defective&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; returned&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; vendor&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; reasons,&nbsp;&nbsp;&nbsp; credit&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; passed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">when adjustment&nbsp; has been received&nbsp; by the Operator.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Transfers and Dispositions</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Material&nbsp;&nbsp;&nbsp;&nbsp; furnished&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; transferred&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; disposed&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Operator,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">unless otherwise agreed to by the Parties, shall&nbsp; be priced on the following&nbsp; basis exclusive&nbsp; of cash discounts:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp; New Material&nbsp; (Condition A)</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp; Tubular Goods Other than Line Pipe</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp; Tubular&nbsp;&nbsp;&nbsp;&nbsp; goods,&nbsp;&nbsp;&nbsp;&nbsp; sized&nbsp;&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp;&nbsp; 3/8&nbsp;&nbsp;&nbsp;&nbsp; inches&nbsp;&nbsp;&nbsp;&nbsp; OD&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; larger,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp; pipe.&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eastern&nbsp;&nbsp;&nbsp;&nbsp; mill</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp;&nbsp; carload&nbsp;&nbsp;&nbsp;&nbsp; base&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp;&nbsp; effective&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; movement&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; 80,000</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; carload &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;weight&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; basis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; which</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; rail&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; exist.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp; the&nbsp;&nbsp;&nbsp; 80,000&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp; rail&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp; offered,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; 70.000&nbsp;&nbsp;&nbsp; pound</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; 90,000&nbsp;&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp;&nbsp; rail&nbsp;&nbsp;&nbsp; rate&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; used.&nbsp;&nbsp;&nbsp; Freight&nbsp; charges&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; tubing&nbsp;&nbsp;&nbsp;&nbsp; will&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp; calculated&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; Lorain,&nbsp;&nbsp;&nbsp; Ohio</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and casing&nbsp; from Youngstown, Ohio.</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp; For&nbsp;&nbsp; grades&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; are&nbsp;&nbsp;&nbsp; special&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp; one&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp;&nbsp; only,&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp; computed&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp; base&nbsp;&nbsp; of&nbsp;&nbsp; that&nbsp;&nbsp; mill&nbsp;&nbsp; plus</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provided</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">above in Paragraph 2 A <I>(1)(a). </I>For transportation cost from points other than Eastern mills, the 30,000</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-6-</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pound Oil&nbsp; Field&nbsp; Haulers Association&nbsp; Interstate truck&nbsp; rate shall&nbsp; be used.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special&nbsp;&nbsp;&nbsp; end&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; finish&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; lowest&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; out-of-stock&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; f.o.b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Houston,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Texas,&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp;&nbsp; cost,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Field&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Haulers&nbsp;&nbsp;&nbsp;&nbsp; Association&nbsp;&nbsp;&nbsp;&nbsp; Interstate&nbsp;&nbsp;&nbsp; 30.000&nbsp;&nbsp;&nbsp;&nbsp; pound&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; truck&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;rate,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the railway receiving point&nbsp; nearest the Joint&nbsp; Property nearest the Joint&nbsp; Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Macaroni&nbsp;&nbsp; tubing&nbsp;&nbsp; (size&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp;&nbsp; 2&nbsp;&nbsp;&nbsp; 3/8&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; OD)&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at &nbsp;&nbsp;&nbsp;the&nbsp;&nbsp;&nbsp;&nbsp; lowest&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp; out-of-stock&nbsp; prices</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f.o.b&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; supplier&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs,&nbsp;&nbsp;&nbsp;&nbsp; using&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil&nbsp;&nbsp;&nbsp;&nbsp; Field&nbsp;&nbsp;&nbsp;&nbsp; Haulers&nbsp;&nbsp;&nbsp; Association&nbsp;&nbsp;&nbsp; interstate&nbsp;&nbsp;&nbsp;&nbsp; truck&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rate</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per weight&nbsp; of tubing transferred,&nbsp; to the railway&nbsp; receiving point nearest the Joint Property.</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp; Pipe</TD></TR>
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    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; movements&nbsp;&nbsp;&nbsp; (except&nbsp;&nbsp;&nbsp; size&nbsp;&nbsp;&nbsp;&nbsp; 24&nbsp;&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; OD&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; larger&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp;&nbsp; walls&nbsp;&nbsp; 3/4&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; over)&nbsp;&nbsp;&nbsp;&nbsp; 30,000&nbsp;&nbsp; pounds&nbsp;&nbsp; or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; more&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; tubular&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; pricing&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; A.(1)(a)&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; above.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Freight&nbsp; charges shall&nbsp; be calculated from&nbsp; Lorain, Ohio.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp; Pipe&nbsp;&nbsp;&nbsp;&nbsp; movements&nbsp;&nbsp;&nbsp; (except&nbsp;&nbsp;&nbsp; size&nbsp;&nbsp;&nbsp;&nbsp; 24&nbsp;&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp; OD)&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; larger&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp; walls&nbsp;&nbsp;&nbsp; 3/4&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; over)&nbsp;&nbsp; less&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp;&nbsp; 30,000</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pounds&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; Eastern&nbsp;&nbsp;&nbsp; mill&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; carload&nbsp;&nbsp;&nbsp; base&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp; effective&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp; shipment.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20&nbsp;&nbsp;&nbsp;&nbsp; percent,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; based&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; freight&nbsp;&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; set&nbsp;&nbsp;&nbsp;&nbsp; forth&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; provisions&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; tubular</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp; pricing&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp; A (1)(a)&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; above&nbsp;&nbsp;&nbsp;&nbsp; Freight&nbsp;&nbsp;&nbsp; charges&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; calculated&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lorain,</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ohio.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3/4&nbsp;&nbsp; inch&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; wall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; larger&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; f.o.b&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; point&nbsp; of</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; manufacture&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; point</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;nearest the&nbsp; Joint&nbsp; Property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Line&nbsp;&nbsp;&nbsp;&nbsp; pipe,&nbsp;&nbsp;&nbsp;&nbsp; including&nbsp;&nbsp;&nbsp; fabricated&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp;&nbsp; pipe,&nbsp;&nbsp;&nbsp;&nbsp; drive&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; conduit&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp;&nbsp; lists&nbsp;&nbsp;&nbsp;&nbsp; shall</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; quoted&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; freight&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; at</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prices agreed to&nbsp; by the&nbsp; Parties.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">(3) Other Material shall be priced at the current new price, in effect at date of movement. as listed <I>by </I>a reliable</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Property,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; manufacture,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs,&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp;&nbsp; applicable,&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp; receiving point&nbsp; nearest the Joint Property.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; (4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp;&nbsp;&nbsp; except&nbsp; &nbsp;&nbsp;tubular&nbsp;&nbsp;&nbsp; goods,&nbsp;&nbsp;&nbsp; moved&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; effect&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; date&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; movement,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; reliable&nbsp;&nbsp;&nbsp; supply&nbsp;&nbsp;&nbsp; store&nbsp;&nbsp; nearest&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Property,</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; manufacture,&nbsp;&nbsp;&nbsp; plus&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; transportation&nbsp;&nbsp;&nbsp; costs,&nbsp;&nbsp;&nbsp; if&nbsp;&nbsp;&nbsp; applicable,&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; railway&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; point&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nearest&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Property. Unused new tubulars will be priced as provided above in Paragraph 2.A (I) and <I>(2).</I></TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.&nbsp;&nbsp;&nbsp; Good used Materia1&nbsp; (Condition B)</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material in sound and&nbsp; serviceable condition and&nbsp; suitable for reuse&nbsp; without reconditioning&middot;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; Material moved to the Joint Property</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At seventy-five percent (75%) of current new&nbsp; price,&nbsp; as determined by Paragraph&nbsp; A.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material used&nbsp; on and&nbsp; moved from&nbsp; the Joint&nbsp; Property</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At&nbsp;&nbsp;&nbsp;&nbsp; seventy-five&nbsp;&nbsp;&nbsp; percent&nbsp;&nbsp;&nbsp; (75%)&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; determined&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; A.&nbsp;&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; was</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;originally charged to the Joint&nbsp; Account as new Material or</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; sixty-five&nbsp;&nbsp;&nbsp; percent&nbsp;&nbsp;&nbsp;&nbsp; (65%)&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; price,&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; determined&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.&nbsp;&nbsp;&nbsp; If&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; was</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; originally charged to the Joint&nbsp; Account as&nbsp; used&nbsp; Material.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp; not&nbsp; used&nbsp; on and&nbsp; moved from&nbsp; the Joint&nbsp; Property:</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">At seventy-five percent <I>(75%) </I>of current new price as determined by Paragraph A.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp; cost&nbsp; of reconditioning, if any, shall&nbsp; be absorbed by&nbsp; the&nbsp; transferring property.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><I>C. </I>Other Used Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; Condition C</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material&nbsp;&nbsp;&nbsp; wh1ch&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp;&nbsp; sound&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; serviceable&nbsp; condition&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; suitable&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp;&nbsp; original&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp;&nbsp; until</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reconditioning&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; fifty&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; percent&nbsp;&nbsp;&nbsp;&nbsp; (50%' )&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; current&nbsp;&nbsp;&nbsp;&nbsp; new&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; determined&nbsp;&nbsp;&nbsp;&nbsp; by</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; reconditioning&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; &nbsp;the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp;&nbsp; property,&nbsp;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C&nbsp; value plus&nbsp; cost&nbsp; of reconditioning does&nbsp; not exceed Condition&nbsp; B value.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-7-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
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    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition D</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp;&nbsp; excluding&nbsp;&nbsp;&nbsp;&nbsp; junk,&nbsp;&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp; longer&nbsp;&nbsp;&nbsp; suitable&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp; original&nbsp;&nbsp;&nbsp;&nbsp; purpose,&nbsp;&nbsp;&nbsp;&nbsp; but&nbsp;&nbsp;&nbsp;&nbsp; usable&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; some&nbsp;&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; purpose</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; basis&nbsp;&nbsp;&nbsp; commensurate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp; use.&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp; dispose&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; Condition&nbsp;&nbsp;&nbsp;&nbsp; D&nbsp;&nbsp;&nbsp; Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under procedures&nbsp; normally used by Operator&nbsp; without&nbsp; prior approval of&nbsp;&nbsp; Non Operators.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Casing,&nbsp;&nbsp; tubing,&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; Grade&nbsp;&nbsp; A&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; B&nbsp;&nbsp;&nbsp; seamless&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp; pipe</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of&nbsp;&nbsp;&nbsp;&nbsp; comparable&nbsp;&nbsp;&nbsp; size&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; weight .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Used&nbsp;&nbsp;&nbsp; casing,&nbsp;&nbsp;&nbsp; tubing&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp; utilized&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; priced at used line pipe prices.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Casing,&nbsp;&nbsp;&nbsp;&nbsp; tubing&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pipe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; higher&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pressure&nbsp;&nbsp;&nbsp; service&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lines&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; than&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; standard&nbsp;&nbsp;&nbsp;&nbsp; line&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pipe,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e. g.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;power&nbsp;&nbsp;&nbsp;&nbsp; oil&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; lines,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp; under&nbsp;&nbsp;&nbsp;&nbsp; normal&nbsp;&nbsp;&nbsp;&nbsp; pricing&nbsp;&nbsp;&nbsp; procedures&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; casing,&nbsp;&nbsp;&nbsp;&nbsp; tubing,&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; drill&nbsp;&nbsp;&nbsp;&nbsp; pipe.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upset&nbsp; tubular goods shall&nbsp; be priced on a non&nbsp; upset &nbsp;basis.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition&nbsp; E</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Junk&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; priced&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; prevailing&nbsp;&nbsp;&nbsp;&nbsp; prices.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; dispose&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Condition&nbsp;&nbsp;&nbsp;&nbsp; E&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; procedures normally utilized by Operator without prior approval of Non-Operators.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D.&nbsp;&nbsp;&nbsp;&nbsp; Obsolete Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp; which&nbsp; is&nbsp;&nbsp; serviceable&nbsp; and&nbsp;&nbsp; usable &nbsp;&nbsp;for&nbsp;&nbsp;&nbsp;&nbsp; its&nbsp;&nbsp;&nbsp;&nbsp; original&nbsp;&nbsp;&nbsp; function&nbsp;&nbsp;&nbsp; but&nbsp;&nbsp;&nbsp;&nbsp; condition&nbsp;&nbsp;&nbsp; and/or&nbsp;&nbsp;&nbsp; value&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; Material</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp; not&nbsp; equivalent&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; that&nbsp;&nbsp; which&nbsp;&nbsp; would&nbsp;&nbsp; justify&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp; price&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp; above&nbsp;&nbsp; may&nbsp;&nbsp; be&nbsp; &nbsp;&nbsp;specially&nbsp;&nbsp; priced&nbsp;&nbsp; as&nbsp; agreed&nbsp; to&nbsp; by</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parties.&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp; price&nbsp;&nbsp; should&nbsp;&nbsp; result&nbsp; in&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp;&nbsp; being&nbsp;&nbsp; charged&nbsp; with&nbsp;&nbsp; the&nbsp;&nbsp; value&nbsp; of&nbsp; the service</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;rendered by such&nbsp; Material.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pricing Conditions</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp; Loading&nbsp; or&nbsp;&nbsp; unloading&nbsp; costs&nbsp;&nbsp; may&nbsp;&nbsp; be&nbsp; charged&nbsp; to&nbsp;&nbsp; the&nbsp;&nbsp; Joint&nbsp;&nbsp; Account&nbsp; at&nbsp;&nbsp; the&nbsp; rate&nbsp; of&nbsp; twenty-five&nbsp;&nbsp; &nbsp;cents&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (25&cent;)</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hundred&nbsp;&nbsp;&nbsp;&nbsp; weight on&nbsp;&nbsp; all&nbsp;&nbsp; tublar&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; goods&nbsp;&nbsp;&nbsp;&nbsp; movements,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; lieu&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; actual&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; loading&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; unloading&nbsp;&nbsp;&nbsp; costs</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;sustained&nbsp; at&nbsp; the&nbsp; stocking&nbsp;&nbsp;&nbsp; point.&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp; above&nbsp;&nbsp; rate&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp; adjusted&nbsp; as&nbsp; of&nbsp;&nbsp; the&nbsp;&nbsp; first&nbsp; day&nbsp; of&nbsp; April&nbsp; each&nbsp;&nbsp;&nbsp;&nbsp; year</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; January&nbsp; 1,&nbsp;&nbsp; 1985&nbsp;&nbsp; by&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; same&nbsp;&nbsp;&nbsp; percentage &nbsp;&nbsp;&nbsp;increase&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp; decrease&nbsp;&nbsp;&nbsp; used&nbsp;&nbsp; to&nbsp;&nbsp; adjust&nbsp;&nbsp; overhead&nbsp;&nbsp;&nbsp; rates&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section&nbsp; III,&nbsp;&nbsp;&nbsp;&nbsp; Paragraph&nbsp;&nbsp;&nbsp;&nbsp; 1.A.(3)&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp; year,&nbsp; the&nbsp;&nbsp; rate&nbsp; calculated&nbsp; shall&nbsp;&nbsp; be&nbsp; rounded&nbsp; to&nbsp; the&nbsp; nearest&nbsp; cent&nbsp;&nbsp; and</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; be&nbsp;&nbsp; the&nbsp;&nbsp; rate&nbsp;&nbsp; in&nbsp; effect&nbsp;&nbsp; until&nbsp;&nbsp; the&nbsp;&nbsp; first&nbsp;&nbsp; day&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; April&nbsp;&nbsp; next&nbsp;&nbsp; year.&nbsp;&nbsp;&nbsp;&nbsp; Such&nbsp;&nbsp; rate&nbsp; shall&nbsp; be&nbsp; published&nbsp; each&nbsp; year</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by the&nbsp; Council of Petroleum Accountants Societies.</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; involving&nbsp; erection&nbsp;&nbsp; costs&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp; at&nbsp;&nbsp; applicable&nbsp;&nbsp; percentage&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp; current&nbsp; knocked-down</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;price&nbsp; of new&nbsp; Material.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Premium Prices</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
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    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Whenever&nbsp;&nbsp; Material&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; readily&nbsp;&nbsp;&nbsp; obtainable&nbsp;&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; published&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp;&nbsp; listed&nbsp;&nbsp;&nbsp;&nbsp; prices&nbsp;&nbsp;&nbsp;&nbsp; because&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; national&nbsp;&nbsp;&nbsp; emergencies.&nbsp;&nbsp; strikes&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; other</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">unusual&nbsp;&nbsp;&nbsp; causes&nbsp;&nbsp;&nbsp; over&nbsp;&nbsp;&nbsp; which&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; has&nbsp;&nbsp;&nbsp;&nbsp; no&nbsp;&nbsp;&nbsp;&nbsp; control,&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp; charge&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; required</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Marerial&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Operator's&nbsp;&nbsp; actual&nbsp;&nbsp; cost&nbsp;&nbsp;&nbsp;&nbsp; incurred&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; providing&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; making&nbsp;&nbsp; it&nbsp;&nbsp;&nbsp; suitable&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use,&nbsp;&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; moving&nbsp;&nbsp;&nbsp; it</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Property;&nbsp;&nbsp;&nbsp; provided&nbsp;&nbsp;&nbsp; notice&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; writing&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp;&nbsp; furnished&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; proposed&nbsp;&nbsp;&nbsp; charge &nbsp;&nbsp;&nbsp;prior&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; billing</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Non-Operators&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp;&nbsp; such&nbsp;&nbsp;&nbsp; Material.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each&nbsp; Non-Operator&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; have&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; right,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp;&nbsp;&nbsp; so&nbsp;&nbsp;&nbsp;&nbsp; electing&nbsp;&nbsp;&nbsp; and&nbsp;&nbsp; notifying&nbsp;&nbsp;&nbsp; Operator&nbsp; within</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">ten&nbsp;&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp;&nbsp;&nbsp; receiving&nbsp;&nbsp; notice&nbsp; from&nbsp;&nbsp;&nbsp; Operator,&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; furnish&nbsp;&nbsp;&nbsp; in&nbsp;&nbsp;&nbsp; kind&nbsp;&nbsp;&nbsp; all&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; part&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; his&nbsp;&nbsp; share&nbsp;&nbsp; of&nbsp; such Material&nbsp;&nbsp; suitable&nbsp;&nbsp;&nbsp;&nbsp; for&nbsp;&nbsp;&nbsp; use</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">and&nbsp; acceptable to Operator.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Warranty of Material Furnished By Operator</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Operator&nbsp;&nbsp; does&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp;&nbsp; warrant&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Material&nbsp;&nbsp;&nbsp; furnished.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In&nbsp;&nbsp;&nbsp; case&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; defective&nbsp;&nbsp;&nbsp; Material,&nbsp;&nbsp; credit&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; passed&nbsp;&nbsp; to&nbsp; the&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Account until adjustment has&nbsp; been&nbsp; received by Operator from the manufacturers or their&nbsp; agents.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">V.&nbsp; INVENTORIES</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">The&nbsp; Operator shall&nbsp; maintain detailed records of Controllable Material.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Periodic&nbsp; Inventories, Notice and&nbsp; Representation</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">At&nbsp;&nbsp;&nbsp;&nbsp; reasonable&nbsp;&nbsp;&nbsp; intervals,&nbsp;&nbsp;&nbsp; inventories&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; taken&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; Operator&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; Controllable&nbsp; Material&nbsp;&nbsp;&nbsp;&nbsp; Written&nbsp;&nbsp;&nbsp; notice</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">of&nbsp;&nbsp;&nbsp; intention&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; take&nbsp;&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; given&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp; &nbsp;Operator&nbsp;&nbsp; at&nbsp;&nbsp;&nbsp; least&nbsp;&nbsp;&nbsp; thirty&nbsp;&nbsp; (30)&nbsp;&nbsp; days&nbsp;&nbsp;&nbsp; before&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp; is&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; begin&nbsp; so&nbsp; that</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Non-Operators&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; represented&nbsp;&nbsp;&nbsp;&nbsp; when&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; any&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory&nbsp;&nbsp;&nbsp; is&nbsp;&nbsp;&nbsp; taken.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Failure&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; Non-Operators&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; represented&nbsp;&nbsp; at&nbsp;&nbsp; an</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">inventory shall&nbsp; bind&nbsp; Non-Operators to accept the&nbsp; inventory taken&nbsp; by Operator.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">2</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Reconciliation and&nbsp; Adjustment of Inventories</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Adjustments&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; resulting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; reconciliation&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; a&nbsp;&nbsp;&nbsp;&nbsp; physical&nbsp;&nbsp;&nbsp; inventory&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp; within six&nbsp;&nbsp;&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">months&nbsp;&nbsp;&nbsp; following&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; taking&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; inventory.&nbsp;&nbsp;&nbsp;&nbsp; Inventory&nbsp;&nbsp;&nbsp;&nbsp; adjustments&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp;&nbsp; made&nbsp;&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; Operator&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; for</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-8-</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">COPAS 1984 ONSHORE</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Recommended by the Council</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">of Petroleum Accountants</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">Societies</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">overages and shortages.&nbsp; but, Operator shall be held accountable only for shortages due to lack of reasonable diligence.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">3</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Special&nbsp; Inventories</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Special&nbsp;&nbsp;&nbsp; inventories&nbsp;&nbsp;&nbsp;&nbsp; may&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; taken&nbsp;&nbsp;&nbsp;&nbsp; whenever&nbsp;&nbsp; there&nbsp; is&nbsp;&nbsp; any&nbsp;&nbsp; sale,&nbsp;&nbsp; change&nbsp; of&nbsp; interest,&nbsp;&nbsp;&nbsp; or&nbsp;&nbsp;&nbsp; change&nbsp; of&nbsp; Operator&nbsp; in&nbsp; the&nbsp;&nbsp;&nbsp; Joint</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">Property.&nbsp;&nbsp;&nbsp; It&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; duty&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; party&nbsp;&nbsp;&nbsp; selling&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; notify&nbsp;&nbsp; all&nbsp;&nbsp; other&nbsp;&nbsp;&nbsp; Parties&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; quickly&nbsp;&nbsp;&nbsp; as&nbsp;&nbsp;&nbsp; possible&nbsp;&nbsp;&nbsp; after&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; transfer&nbsp;&nbsp;&nbsp; of</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">interest&nbsp;&nbsp;&nbsp; takes&nbsp;&nbsp;&nbsp; place&nbsp;&nbsp;&nbsp; In&nbsp; such&nbsp; cases,&nbsp;&nbsp;&nbsp; both&nbsp; the&nbsp; seller&nbsp; and&nbsp; the&nbsp; purchaser&nbsp; shall&nbsp;&nbsp; be&nbsp; governed&nbsp; by&nbsp; such&nbsp; inventory.&nbsp; In cases</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">involving a change of Operator,&nbsp; all Parties shall be governed by such inventory.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">4</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt"><B>Expense of Conducting Inventories</B></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: bold 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp;&nbsp;&nbsp; expense&nbsp;&nbsp;&nbsp;&nbsp; of&nbsp;&nbsp;&nbsp; conducting&nbsp;&nbsp;&nbsp;&nbsp; periodic&nbsp;&nbsp;&nbsp;&nbsp; inventories&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp;&nbsp; not&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; charged&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; Joint&nbsp;&nbsp;&nbsp; Account&nbsp;&nbsp;&nbsp; unless&nbsp;&nbsp;&nbsp; agreed&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp; by&nbsp;&nbsp; &nbsp;&nbsp;the</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parties.</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; vertical-align: top; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The&nbsp; expense&nbsp; of&nbsp; conducting&nbsp; special&nbsp;&nbsp; inventories&nbsp;&nbsp; shall&nbsp; be&nbsp;&nbsp; charged&nbsp;&nbsp; to&nbsp; the&nbsp; Parties&nbsp; requesting&nbsp;&nbsp; such&nbsp; inventories,&nbsp;&nbsp; except&nbsp;&nbsp;&nbsp; inventories</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 6pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; required due to change of Operator shall be charged to the Joint Account.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font: 8pt/115% Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">-9-</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 0.5pt 0 0"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.9pt 0 0"><FONT STYLE="line-height: 105%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.95pt 0 0; text-align: center">EXHIBIT &quot;2&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>Initial Test Well</U></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Attached <FONT STYLE="letter-spacing: 0.05pt">
</FONT>to and made a part of the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.05pt 0 0; text-align: center">Unit Operating <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Agreement for the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0; text-align: center">Paradise Unit Area</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.6pt 0 0; text-align: center">Mineral and Nye Counties, Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -26.75pt"><FONT STYLE="line-height: 98%">1..&#9;<U>LOCATION:</U>
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>The initial test well shall be drilled at a location selected by Unit Operator and
approved by the Authorized <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Office of the Bureau of Land Management.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -26.75pt"><FONT STYLE="line-height: 98%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: -27pt">2.&#9;<U>DEPTH:</U> <FONT STYLE="letter-spacing: 0.05pt">
</FONT>The <FONT STYLE="letter-spacing: 0.15pt"> </FONT>initial test well shall be drilled conformably with the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>terms <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of Article 9 of the Paradise Unit Agreement.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27pt"><FONT STYLE="line-height: 100%">3.
&#9;<U>COSTS:</U> All <FONT STYLE="letter-spacing: 0.3pt"> </FONT>costs and expenses incurred in connection with the initial test
well, including drilling, testing <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and completing into the tanks, if an oil <FONT STYLE="letter-spacing: 0.1pt">
</FONT>well, or through gas separator, if a gas producer, and plugging and abandoning, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>if
a dry hole, shall be <FONT STYLE="letter-spacing: 0.1pt"> </FONT>borne and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>paid for
by Cortez Exploration LLC and such other <FONT STYLE="letter-spacing: 0.05pt"> </FONT>parties hereto as agreed to bear such <FONT STYLE="letter-spacing: 0.05pt">
</FONT>costs in accordance with separate agreement <FONT STYLE="letter-spacing: 0.3pt"> </FONT>among themselves <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and where applicable subject to the investment <FONT STYLE="letter-spacing: 0.05pt"> </FONT>adjustment provisions <FONT STYLE="letter-spacing: 0.15pt">
</FONT>of Article 13 of this Agreement. Any cash contributions received toward the drilling of the initial test well shall belong
to the parties sustaining the risk of drilling the initial test well.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27.7pt"><FONT STYLE="line-height: 97%">4.
&#9;<U>TITLE EXAMINATION AREA</U>: The title examination area for the initial test well shall be an area surrounding the location
of such well as may be designated by the Unit Operator.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27.25pt"><FONT STYLE="line-height: 115%">5.
&#9;<U>COST OF TITLE EXAMINATION:</U> The cost of title examination shall be charged <FONT STYLE="letter-spacing: 0.15pt"> </FONT>as
a cost of drilling the initial test well.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -27.45pt"><FONT STYLE="line-height: 100%">6.
&#9;DEEPENING, PLUGGING RACK: In the absence of any agreement to the contrary, the attempted completion, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>deepening or plugging back, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and abandonment of the Initial Test Well shall
be governed by the provisions of Section 9.3 to this agreement.</FONT></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt">&nbsp;</DIV>
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<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 3.95pt 0 0; text-align: center">EXHIBIT &quot;3&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Attached to and made a part of the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.3pt 0 0; text-align: center"><FONT STYLE="line-height: 105%">Unit
Operating <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement for the</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.5pt 0 0; text-align: center">Paradise Unit Area</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.8pt 0 0; text-align: center">Mineral and Nye Counties. Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">INSURANCE</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="line-height: 105%">For
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Operations by <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Unit Operator: The Unit
Operator shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>carry for the benefit of the joint account insurance to cover the Unit
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>Operator's operations on <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the lands <FONT STYLE="letter-spacing: 0.1pt">
</FONT>covered by this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Agreement as follows:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="line-height: 105%">1.
Workmens' Compensation Insurance <FONT STYLE="letter-spacing: 0.05pt"> </FONT>in full compliance w1th<FONT STYLE="letter-spacing: -0.45pt">
</FONT>the laws of the applicable State in which operations are conducted.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="line-height: 105%">2.
Employer's Liability <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Insurance with limits of$100,000 as to any one person and $100,000
as to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>any one accident.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify"><FONT STYLE="line-height: 100%">3.
Public Liability Insurance: Bodily Injury (other than automobile) w1th limits of$1,000,000 as to any one person, $1,000,000 as
to any one accident; and Property Damage (other than automobile) with limits of$1,000,000 for each accident, $1,000,000 aggregate.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 45pt">4. Automobile Public Liability Insurance, with limits of
$50,000 as <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to any one person and</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 45pt; text-indent: 0.25pt"><FONT STYLE="line-height: 178%">$50,000
as to any one accident, and Property Damage of $50,000 for each accident; excess coverage of such limits up to $1,000,000 <FONT STYLE="letter-spacing: 0.05pt">
</FONT>combined single limit.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="line-height: 100%">Operator
shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>not <FONT STYLE="letter-spacing: 0.15pt"> </FONT>carry physical damage insurance
on Jointly-owned <FONT STYLE="letter-spacing: 0.05pt"> </FONT>property, it being understood and agreed that each party will be
responsible for its own interest in such properties and will assume its portion of any loss that occurs. <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Operator shall promptly notify Non-Operator in writing of all losses involving damage to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>jointly-owned property in excess of S 1,000.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.5pt"><FONT STYLE="line-height: 100%">Operator
shall submit to Non-Operators certificates of insurance <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in evidence of the above coverage.
Such certificates shall specify that in event of cancellation or material change in coverage at least ten days prior written notice
will be given to Non-Operators at their respective addresses.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.75pt"><FONT STYLE="line-height: 178%">Operator
shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>notify Non-Operators promptly in writing of any <FONT STYLE="letter-spacing: 0.05pt">
</FONT>occurrences wherein liability may exceed the limits of the insurance if covered by insurance as set out above.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 4.35pt 0 0; text-align: center">EXHIBIT &quot;4&quot;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Attached to and made a part of the</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.5pt 0 0; text-align: center"><FONT STYLE="line-height: 187%">Unit
Operating Agreement for the</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">Paradise Unit Area</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center">Mineral and Nye Counties, Nevada</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EXECUTIVE ORDER NO. 11246 AND EXECUTIVE ORDER
NO. 11598</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.75pt 0 0; text-align: center">PROVISIONS OF SECTION 202 OF EXECUTIVE
ORDER NO. 11246</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 187%">(1)
The contractor will not discriminate against any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>employee or <FONT STYLE="letter-spacing: 0.15pt">
</FONT>applicant for employment because of race, color, religion, sex or national <FONT STYLE="letter-spacing: 0.15pt"> </FONT>origin.
The <FONT STYLE="letter-spacing: 0.05pt"> </FONT>contractor will take affirmative action <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to
ensure the applicants are employed and that employees are treated during employment, without regard to their race, color, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>religion, sex or national origin. Such <FONT STYLE="letter-spacing: 0.05pt"> </FONT>action shall include but not be limited
to the following: Employment, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>upgrading, demotion, or transfer; recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
The contractor agrees to post in conspicuous places available to employees and applicants for employment, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>notices to be provided by the contracting officer <FONT STYLE="letter-spacing: 0.05pt"> </FONT>setting forth the provisions
of this non-discrimination <FONT STYLE="letter-spacing: 0.1pt"> </FONT>clause.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 187%">(2)
The <FONT STYLE="letter-spacing: 0.05pt"> </FONT>contractor will, in all solicitations or advertisements for employees placed <FONT STYLE="letter-spacing: 0.1pt">
</FONT>by or on behalf of the contractor, state that all <FONT STYLE="letter-spacing: 0.1pt"> </FONT>qualified applicants will
receive consideration for employment without regard to race, color, religion, sex or national origin.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.25pt"><FONT STYLE="line-height: 178%">(3)
The contractor <FONT STYLE="letter-spacing: 0.1pt"> </FONT>will send to each labor union or representative <FONT STYLE="letter-spacing: 0.3pt">
</FONT>of workers with which he has a <FONT STYLE="letter-spacing: -0.3pt"> </FONT>collective bargaining agreement or other <FONT STYLE="letter-spacing: 0.05pt">
</FONT>contract or understanding, a notice, to be provided by the agency<FONT STYLE="letter-spacing: 0.1pt"> </FONT>contracting
officer, advertising the labor union or workers' representative <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the contractors'
commitments <FONT STYLE="letter-spacing: 0.3pt"> </FONT>under Section 202 of Executive Order No. 11246 of September 24, 1965, and
shall post copies of the notice in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>conspicuous places available to employees and applicants
for employment.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">(4) The contractor <FONT STYLE="letter-spacing: 0.1pt">
</FONT>will comply with all provisions of Executive Order No. 11246 of September 24, 1965,<FONT STYLE="letter-spacing: 0.3pt">
</FONT>and of the rules, regulations, and relevant orders of the Secretary of Labor.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">(5) The <FONT STYLE="letter-spacing: 0.1pt"> </FONT>contractor
will furnish all information and <FONT STYLE="letter-spacing: 0.1pt"> </FONT>reports required by Executive Order <FONT STYLE="letter-spacing: 0.3pt">
</FONT>No. 11246 of September 24, 1965, and by the rules, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>regulations, and orders
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Secretary of Labor, or pursuant <FONT STYLE="letter-spacing: 0.1pt"> </FONT>thereto,
and will permit access <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to his books, records, <FONT STYLE="letter-spacing: 0.3pt">
</FONT>and accounts, by the contracting agency and the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Secretary of Labor for purposes
of investigation to ascertain compliance <FONT STYLE="letter-spacing: 0.1pt"> </FONT>with such rules, regulations, and orders.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 97%">(6)
In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with any of such rules.
regulations or orders, this contract may be canceled, terminated or suspended in whole or in <FONT STYLE="letter-spacing: 0.1pt">
</FONT>part and <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the contractor may be declared ineligible for <FONT STYLE="letter-spacing: 0.1pt">
</FONT>further Government contracts in accordance with <FONT STYLE="letter-spacing: 0.3pt"> </FONT>procedures authorized in Executive
Order No. I<FONT STYLE="letter-spacing: -0.1pt"> </FONT>1246 <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of September 24, I 965,
and such other sanctions may be imposed and remedies invoked as provided <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in Executive
Order No. I<FONT STYLE="letter-spacing: -0.35pt"> </FONT>1246 of <FONT STYLE="letter-spacing: 0.1pt"> </FONT>September 24, I<FONT STYLE="letter-spacing: -0.2pt">
</FONT>965, or by rule, regulation or order of the Secretary of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Labor, or <FONT STYLE="letter-spacing: 0.15pt">
</FONT>as otherwise provided by law.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27.45pt"><FONT STYLE="line-height: 178%">(7)
The contractor will include the provisions of Paragraphs (I) through (7) in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>every subcontract
or purchase order unless exempted by <FONT STYLE="letter-spacing: 0.1pt"> </FONT>rules, regulations or <FONT STYLE="letter-spacing: 0.15pt">
</FONT>orders of the Secretary of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Labor issued pursuant to Section 204 of Executive
Order No. 11246 of September 24, 1965, so that such provision will be binding upon each subcontractor or vendor. The contractor
will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing
such provisions including sanctions for non-compliance; provided, however, that<FONT STYLE="letter-spacing: 0.3pt"> </FONT>in the
event the contractor becomes involved in, or is threatened <FONT STYLE="letter-spacing: 0.3pt"> </FONT>with litigation with a subcontractor
or vendor as a result of such direction by the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>contracting agency, the contractor
may request the United States to enter into such litigation to<FONT STYLE="letter-spacing: 0.1pt"> </FONT>protect the interests
of the United States.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">No. 950CP-I
Rev.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">FORM 88 UNIT-WYO.-COLO</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="line-height: 178%"><B>OIL AND GAS
LEASE</B></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">AGREEMENT,
Made and entered into this <U> </U> day of <U> </U>, <U>20 </U>, by and between <U> </U></FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">,
party of the first part, hereinafter called lessor, (whether one or more) and <U> </U>,party of the second part, lessee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">WITNESSETH:
That the lessor for and in consideration of <U> </U> Dollars in hand paid, receipt of which is hereby acknowledged, of the royalties
herein provided, and of the agreements of lessee herein contained, herby grants, leases and lets exclusively unto lessee for the
purpose of investigating, exploring, prospecting, drilling and mining for the producing oil, gas, casinghead gas, and all other
minerals, laying pipe lines, building tanks, power stations, telephone lines and other structures thereon to produce, save, take
care of, treat, transport, and own said products, and housing its employees, the following described land in<U> </U> County, State
of <U> </U> to wit: <U> </U></FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%"><U>EXHIBIT
&ldquo;5&rdquo; </U></FONT></P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 178%">including all
minerals underlying lakes, streams, roads, easements and rights-of-way which traverse or adjoin said lands, which minerals are
owned or claimed by lessor or rights to which minerals may hereafter be established in lessor; and also, in addition to the above-described
land, all land adjoining the same and owned or claimed by lessor and containing <U> </U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">acres
more or less.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">TO
HAVE AND TO HOLD the same (subject to the other provisions herein contained) for a term of ten years from this date (call &ldquo;primary
term&rdquo;) and as long thereafter as oil or gas or casinghead gas or either or any of them, is produced therefrom; or as much
longer thereafter as the lessee in good faith shall conduct drilling operations thereon and should production result from such
operations, this lease shall remain in full force an effect as long as oil or gas or casinghead gas, shall be produced therefrom.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 178%">In
consideration of the premises it is hereby mutually agreed as follows:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.7pt 8.35pt 0 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="line-height: 115%">1.
The lessee shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>deliver to the credit of the lessor <FONT STYLE="letter-spacing: 0.1pt">
</FONT>as royalty, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>free of cost, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>pipe line <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to which <FONT STYLE="letter-spacing: 0.1pt">
</FONT>lessee may connect its wells <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>equal
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>one-eighth ( 1/8) part of all oil produced and saved from the leased premises, or
at the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lessee's option, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>may <FONT STYLE="letter-spacing: 0.15pt">
</FONT>pay to the lessor for such one-eight (1/8) royalty the market price <FONT STYLE="letter-spacing: 0.1pt"> </FONT>for oil
of like grade and gravity prevailing <FONT STYLE="letter-spacing: 0.05pt"> </FONT>in the field <FONT STYLE="letter-spacing: 0.05pt">
</FONT>where produced on the day such oil is run into the pipe <FONT STYLE="letter-spacing: 0.3pt"> </FONT>line, or into storage
tanks.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%"><I>2. </I>The
lessee shall pay <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lessor, as royalty, one-eighth (<FONT STYLE="letter-spacing: -0.1pt">
1/8)</FONT> of the proceeds from <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the sale of the gas, as such, for </FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">gas from <FONT STYLE="letter-spacing: 0.15pt">
</FONT>wells where gas only <FONT STYLE="letter-spacing: 0.05pt"> </FONT>is found, and where not <FONT STYLE="letter-spacing: 0.05pt">
</FONT>used or sold shall pay Fifty Dollars ($50.00) per annum as royalty from each such well, and while such royalty <FONT STYLE="letter-spacing: 0.05pt">
</FONT>is so paid such well shall be held to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be a producing well. The lessor to have
gas free of charge from any gas well on the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>leased premises for stoves and inside
lights in the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>principal dwelling house on said land by making his own connections with
the well, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the use of said <FONT STYLE="letter-spacing: 0.1pt"> </FONT>gas <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to be at the lessor's sole risk and expense.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">3. To pay lessor
for gas <FONT STYLE="letter-spacing: 0.3pt"> </FONT>produced from any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>oil well and
used off the premises or in the manufacturing of gasoline or any other <FONT STYLE="letter-spacing: 0.15pt"> </FONT>product a royalty
of oneeight (1/8) of the market value, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>at the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>mouth of the well, payable monthly at the prevailing market price.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">4.
</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">operation&bull;
for the drilling of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a well for oil or gas arc not commenced on said ian on or before
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>one year from this date, this lease shall terminate a&bull; to <FONT STYLE="letter-spacing: 0.15pt">
</FONT>both parties, unless the Jesse&lt; shall. on or before one year from this date, pay or tender to the lessor <FONT STYLE="letter-spacing: 0.3pt">
</FONT>or for the lessor&rsquo;s credit in<U> </U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.5pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="line-height: 115%">Bank
at <U> </U></FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0 8.25pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">or
its <FONT STYLE="letter-spacing: 0.05pt"> </FONT>successor or successors, which <FONT STYLE="letter-spacing: 0.1pt"> </FONT>bank
and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>its successors are lessor's agents <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and
which shall continue as the depository regardless of changes </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">in
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">the ownership of the land, the sum of <U> </U>Dollars which shall
operate <FONT STYLE="letter-spacing: 0.1pt"> </FONT>as a rental and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>cover the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>privilege <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of deferring the commencement of operations for the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>drilling <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of a well one year from said date. In like manner and upon payments
or tenders <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the commencement of operations for the drilling of <FONT STYLE="letter-spacing: 0.05pt">
</FONT>a well <FONT STYLE="letter-spacing: 0.3pt"> </FONT>may be further deferred for like periods successively during <FONT STYLE="letter-spacing: 0.3pt">
</FONT>the primary term of this lease. And it is understood and agreed that <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>consideration <FONT STYLE="letter-spacing: 0.1pt"> </FONT>first <FONT STYLE="letter-spacing: 0.1pt"> </FONT>recited herein,
the down payment, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>covers not only the privileges granted <FONT STYLE="letter-spacing: 0.3pt">
</FONT>to the date when said rental is payable as aforesaid, but also the lessee's option of extending that period <FONT STYLE="letter-spacing: 0.05pt">
</FONT>as aforesaid, and any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all other
rights conferred. All payments <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or tenders <FONT STYLE="letter-spacing: 0.3pt"> </FONT>may
be made <FONT STYLE="letter-spacing: 0.3pt"> </FONT>by check or draft <FONT STYLE="letter-spacing: 0.3pt"> </FONT>of lessee or
any assignee thereof, mailed or delivered on or before the rental <FONT STYLE="letter-spacing: 0.05pt"> </FONT>paying date. Lessee
may at any 1me execute and deliver to lessor or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>place of record a release <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or releases covering any portion or portions of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the above described premises<FONT STYLE="letter-spacing: 0.15pt">
</FONT>and thereby surrender this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lease as to such portion or portions and be relieved
of all obligations as to the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>acreage surrendered and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>thereafter the rentals payable hereunder <FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall be reduced in the proportion
that the acreage covered herein <FONT STYLE="letter-spacing: 0.3pt"> </FONT>is reduced by said release or releases. Notwithstanding
the death of the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lessor, or his successor in interest, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the- payment or tender of rentals </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">in </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">the
manner provided above shall be binding on the <FONT STYLE="letter-spacing: 0.3pt"> h</FONT>eirs, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>devisees, executors and administrators of such persons.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">5.
</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">at
any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>time <FONT STYLE="letter-spacing: 0.15pt"> </FONT>prior <FONT STYLE="letter-spacing: 0.15pt">
</FONT>to the discovery of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>oil or gas on this <FONT STYLE="letter-spacing: 0.05pt">
</FONT>land and during the term of this lease, the lessee shall drill <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a dry hole,
or holes, on this land, this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lease shall not terminate, provided operations <FONT STYLE="letter-spacing: 0.05pt">
</FONT>for the drilling of a well shall be commenced by the next ensuing rental paying date, or provided the lessee begins or <FONT STYLE="letter-spacing: 0.05pt">
</FONT>resumes the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>payment of rentals 1n the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>manner and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>amount above herein provided; and in <FONT STYLE="letter-spacing: 0.1pt">
</FONT>this event the preceding paragraphs. hereof governing the payment of rental and the manner and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>effect thereof shall continue in force.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">6.
</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">said
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>lessor owns a less interest in the above described land than the entire and undivided
fee simple estate herein, then the royalties and rentals herein <FONT STYLE="letter-spacing: 0.05pt"> </FONT>provided for shall
be paid the lessor only in the proportion which <FONT STYLE="letter-spacing: 0.1pt"> </FONT>his interest <FONT STYLE="letter-spacing: 0.3pt">
</FONT>bears to the whole and undivided fee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 9.15pt 0 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%"><I>7.
</I>Lessee shall have the right to use, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>free of cost, <FONT STYLE="letter-spacing: 0.15pt">
</FONT>gas, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>oil, and water produced on said land for <FONT STYLE="letter-spacing: 0.15pt">
</FONT>its operation thereon, except water from wells <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of lessor. When requested by
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>lessor, lessee shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>bury <FONT STYLE="letter-spacing: 0.15pt">
</FONT>his pipe lines below plow depth.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">No well shall be drilled nearer than
200<I> </I>feet to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>house or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>barn now
on said premises, without the written consent of the lessor. Lessee shall pay for damages caused by its operations to growing crops
on said land. Lessee shall have the right at <FONT STYLE="letter-spacing: 0.1pt"> </FONT>any time to<I> </I>remove all improvements,
machinery. and fixtures <FONT STYLE="letter-spacing: 0.15pt"> </FONT>placed or erected by lessee on <FONT STYLE="letter-spacing: 0.05pt">
</FONT>said premises, including the right to pull and remove <FONT STYLE="letter-spacing: 0.3pt"> </FONT>casings.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">8.
</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">the
lessee shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>commence to drill a well within the. term of this lease <FONT STYLE="letter-spacing: 0.15pt">
</FONT>or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>any extension thereof, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the lessee
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall have the right to drill such well to completion with reasonable diligence and
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>dispatch, and if oil or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>gas, or either
of <FONT STYLE="letter-spacing: 0.1pt"> </FONT>them, be found in paying quantities, this lease shall continue <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and be in force with the like effect as if such well had <FONT STYLE="letter-spacing: 0.15pt"> </FONT>been completed within
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the term of years herein first <FONT STYLE="letter-spacing: 0.05pt"> </FONT>mentioned.
</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">9.
</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">the
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>estate of either party hereto is assigned (and the privilege of assigning in whole
or in part is expressly <FONT STYLE="letter-spacing: 0.1pt"> </FONT>allowed), the covenants hereof shall extend to<I> </I>their
heirs, executors, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>administrators. successors <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and assigns, but no change o ownership in the land or in the rentals or royalties shall be binding on the lessee until after
notice to the lessee and it has been furnished with the written transfer or assignment or a certified copy thereof, and in</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">
<FONT STYLE="letter-spacing: 0.3pt"> </FONT></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">case <FONT STYLE="letter-spacing: 0.15pt">
</FONT>lessee <FONT STYLE="letter-spacing: 0.1pt"> </FONT>assigns this lease, in whole or in part. lessee shall be relieved of
all obligations with respect <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the assigned portion or portions arising subsequent
to the date of assignment.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.15pt 9pt 0 0; text-align: justify"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0.15pt 9pt 0 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">10.
There shall be no obligation on the put of the lessee <FONT STYLE="letter-spacing: 0.1pt"> </FONT>to offset wells on separate tracts
into which the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>land covered <FONT STYLE="letter-spacing: 0.1pt"> </FONT>by this lease
may be <FONT STYLE="letter-spacing: 0.1pt"> </FONT>hereafter <FONT STYLE="letter-spacing: 0.15pt"> </FONT>divided by sale, devise
or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>otherwise, or to furnish separate measuring <FONT STYLE="letter-spacing: 0.15pt">
</FONT>or receiving tanks. </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">It </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">is
hereby agreed that, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in the event this lease shall be assigned as to a part or as to
parts of the above described lands, and the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>holder <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or owner of any such part or parts shall fail or make default <FONT STYLE="letter-spacing: 0.15pt"> </FONT>in the payment
of the proportionate<FONT STYLE="letter-spacing: -0.45pt"> </FONT>part of the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>rent
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>due from him or them, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>on an acreage <FONT STYLE="letter-spacing: 0.15pt">
</FONT>basis, such default <FONT STYLE="letter-spacing: 0.3pt"> </FONT>shall not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>operate
to defeat or affect this lease in so far as it covers a part or part of said land upon which the <FONT STYLE="letter-spacing: 0.05pt">
</FONT>said lessee or any assignee hereof <FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall make due payments of said rentals.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">11.
<FONT STYLE="letter-spacing: 0.3pt"> </FONT></FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">If </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">at
any time there be <FONT STYLE="letter-spacing: 0.05pt"> </FONT>as many as six parties <FONT STYLE="letter-spacing: 0.05pt"> </FONT>(or
more) entitled <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to receive royalties under this <FONT STYLE="letter-spacing: 0.3pt">
</FONT>lease, lessee may withhold payment thereof unless <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and until all parties designate
in writing in a recordable instrument to be filed with the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lesse<FONT STYLE="letter-spacing: -0.15pt">e,</FONT>
<FONT STYLE="letter-spacing: -0.45pt"> </FONT>a Trustee to receive all royalty <FONT STYLE="letter-spacing: 0.1pt"> </FONT>payments
due <FONT STYLE="letter-spacing: 0.05pt"> </FONT>hereunder and to execute division and transfer orders on behalf <FONT STYLE="letter-spacing: 0.1pt">
</FONT>of said parties and their respective successors in title.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 8.75pt 0 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">12.
Lessee <FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall have the right to unitize, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>pool,
<FONT STYLE="letter-spacing: 0.05pt"> or</FONT> combine all or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>any part of the above
described <FONT STYLE="letter-spacing: 0.15pt"> </FONT>ands with other. lands <FONT STYLE="letter-spacing: 0.1pt"> in</FONT> the
same general area by entering 1nto a cooperative or unit plan <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of development or operation
approved by any governmental <FONT STYLE="letter-spacing: 0.1pt"> </FONT>authority and, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>from
time to time, with like approval, to modify, change or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>terminate any such plan or
agreement <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and, in such event, the terms. conditions and provisions of this lease shall
be deemed modified to conform to the terms, conditions, and provisions of such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>approved
cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease,
express or implied, shall be <FONT STYLE="letter-spacing: 0.05pt"> </FONT>satisfied by compliance with the drilling and development
requirements of such <FONT STYLE="letter-spacing: 0.3pt"> </FONT>plan <FONT STYLE="letter-spacing: 0.1pt"> </FONT>or agreement,
and this lease shall not terminate or expire during the life <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of such plan or <FONT STYLE="letter-spacing: 0.3pt">
</FONT>agreement. In the event that said above described lands or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>any part thereof,
shall hereafter be operated under any <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such cooperative or unit plan <FONT STYLE="letter-spacing: 0.05pt">
</FONT>of development or operation whereby the production therefrom is allocated to different portions o! the land covered by said
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>plan, then the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>production allocated to
any particular tract of land shall, for the purpose of computing <FONT STYLE="letter-spacing: 0.05pt"> </FONT>the royalties to
be paid hereunder to lessor, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>be regarded as having been produced from the particular
tract of land to which it is allocated <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and not to any other tract of land; and the
royalty payments. to be made hereunder to lessor shall be based upon <FONT STYLE="letter-spacing: 0.05pt"> </FONT>production only
as so allocated. Lessor shall formally express lessor's consent to any cooperative <FONT STYLE="letter-spacing: 0.15pt"> </FONT>or
unit plan of development or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>operation adopted by lessee and approved by any <FONT STYLE="letter-spacing: 0.3pt">
</FONT>governmental agency <FONT STYLE="letter-spacing: 0.15pt"> </FONT>by executing <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the
same upon request of lessee.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0.05pt 0 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">13.
In addition to and not <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in limitation of the rights granted in paragraph 12<I> </I>hereof,
lessee is hereby <FONT STYLE="letter-spacing: 0.3pt"> </FONT>granted the right and option to consolidate, pool or combine the lands
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>covered by this lease. or any portion or portions thereof or any stratum or strata
thereunder, with other lands or like strata there under for the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>development thereof
or for the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>production therefrom of oil, gas, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>casinghead
gas <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or other hydrocarbons, or any or all of said products, when in lessee's discretion
and judgment it is advisable <FONT STYLE="letter-spacing: 0.1pt"> </FONT>so <FONT STYLE="letter-spacing: 0.15pt"> </FONT>to do
for <FONT STYLE="letter-spacing: 0.05pt"> </FONT>proper development or operation <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of
the premises, or to conform to spacing or zoning rules of any lawful authority, such consolidation, pooling or <FONT STYLE="letter-spacing: 0.1pt">
</FONT>combining to<I> </I>be into units of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such <FONT STYLE="letter-spacing: 0.3pt">
</FONT>shape and dimensions as lessee may elect provided that all lands in any <FONT STYLE="letter-spacing: 0.3pt"> </FONT>such
unit shall be contiguous <FONT STYLE="letter-spacing: 0.3pt"> </FONT>(either adjoining or cornering) but for this purpose contiguity
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>shall not be deemed <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to be destroyed <FONT STYLE="letter-spacing: 0.15pt">
</FONT>by reason of the existence of a y excluded street. alley, road, railroad, canal, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>stream.
right of way or other similar strip or parcel of land. Any unit formed under this paragraph for <FONT STYLE="letter-spacing: 0.1pt">
</FONT>production of oil and casinghead gas shall not exceed forty-three (43) <FONT STYLE="letter-spacing: 0.3pt"> </FONT>acres
in surface <FONT STYLE="letter-spacing: 0.3pt"> </FONT>area, for <FONT STYLE="letter-spacing: 0.3pt"> </FONT>production of dry
or gas well shall not exceed six hundred and sixty <FONT STYLE="letter-spacing: 0.05pt"> </FONT>(660) acres in surface area, and
for production of condensate or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>distillate shall not exceed three <FONT STYLE="letter-spacing: 0.3pt">
</FONT>hundred and thirty (330) acres in surface area unless some larger unit for condensate <FONT STYLE="letter-spacing: 0.15pt">
</FONT>or distillate is permitted or prescribed by lawful authority, in which event <FONT STYLE="letter-spacing: 0.1pt"> </FONT>such
larger unit shall control, provided that, if governmental survey units be irregular <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in
size in the area of this lease, the size of any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the units mentioned herein may
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>be increased to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the size of the there
existing governmental <FONT STYLE="letter-spacing: 0.1pt"> </FONT>survey unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>nearest
in size <FONT STYLE="letter-spacing: 0.3pt"> </FONT>to the unit acreage prescribed herein. The right and option herein granted
to <FONT STYLE="letter-spacing: 0.05pt"> l</FONT>essee may be exercised at any time or from time to time, whether before or after
production is secured and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>whether or not a unit may <FONT STYLE="letter-spacing: 0.3pt">
</FONT>theretofore <FONT STYLE="letter-spacing: 0.05pt"> </FONT>have been created for some <FONT STYLE="letter-spacing: 0.1pt">
</FONT>other product, by<I> </I>executing in <FONT STYLE="letter-spacing: 0.1pt"> </FONT>writing an instrument <FONT STYLE="letter-spacing: 0.15pt">
</FONT>identifying and describing the unit created. and&middot; <FONT STYLE="letter-spacing: 0.1pt"> </FONT>by delivering a copy
thereof to lessor or by recording a copy thereof <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in the county where the land <FONT STYLE="letter-spacing: 0.05pt">
</FONT>1s located. The lands in any such unit shall be developed or operated as one tract and any drilling on or <FONT STYLE="letter-spacing: 0.1pt">
</FONT>production from such unit, whether or <FONT STYLE="letter-spacing: 0.05pt"> </FONT>not from lands described <FONT STYLE="letter-spacing: 0.3pt">
</FONT>in this lease, shall <FONT STYLE="letter-spacing: 0.15pt"> </FONT>be deemed to be drilling done <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or production secured on the lands subject to this lease <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for all purposes except
for the purpose <FONT STYLE="letter-spacing: 0.05pt"> </FONT>of payment <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of royalty
hereunder. In such event, and in <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lieu <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of
the royalties elsewhere <FONT STYLE="letter-spacing: 0.1pt"> </FONT>herein specified, <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>lessor shall receive from production on any such unit only<FONT STYLE="letter-spacing: -0.05pt">
such </FONT></FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">. </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">portion
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>royalty, at the rate stipulated
elsewhere herein, as lessor's acreage in<FONT STYLE="letter-spacing: -0.15pt"> </FONT>the uni<FONT STYLE="letter-spacing: 0.05pt">t
</FONT>(or his royalty interest therein) bears to the total <FONT STYLE="letter-spacing: 0.05pt"> acreage. </FONT>Formation of
any unit <FONT STYLE="letter-spacing: 0.3pt"> </FONT>as <FONT STYLE="letter-spacing: 0.05pt"> </FONT>herein provided shall <FONT STYLE="letter-spacing: 0.1pt">
</FONT>in no <FONT STYLE="letter-spacing: 0.1pt"> </FONT>manner affect the ownership or amount of any rental which may be payable
under the terms of this lease.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">14. In the interest
of conservation, the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>protection of reservoir pressures <FONT STYLE="letter-spacing: 0.3pt">
</FONT>and recovery of the greatest ultimate</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">yield of oil, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>gas and other minerals, lessee shall have the right to combine the leased <FONT STYLE="letter-spacing: 0.3pt"> </FONT>premises
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>with other premises</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">in the same general area for <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>purpose of operating and maintaining repressuring and recycling facilities,
and for</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">such purpose may locate such facilitie<FONT STYLE="letter-spacing: 0.1pt">s</FONT>
including input wells, upon the leased premises, and no royalties shall be</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">payable hereunder upon any gas used
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>for repressuring and recycling operations benefiting the <FONT STYLE="letter-spacing: 0.15pt">
</FONT>leased premises.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">15. Lessor hereby
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>warrants and agrees to defend the title <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to
the land herein described and agrees that the lessee, at its option, may pay and discharge any taxes, mortgage, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>or other liens existing levied, or assessed <FONT STYLE="letter-spacing: 0.15pt"> </FONT>on or against the above <FONT STYLE="letter-spacing: 0.3pt">
</FONT>described lands and, in event it exercises such option, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>it shall he subrogated
to the rights of any holder or <FONT STYLE="letter-spacing: 0.3pt"> </FONT>holders <FONT STYLE="letter-spacing: 0.05pt"> </FONT>thereof
and may reimburse itself by <FONT STYLE="letter-spacing: 0.15pt"> </FONT>applying to the discharge of any such mortgage,<FONT STYLE="letter-spacing: -0.05pt">
</FONT>tax or <FONT STYLE="letter-spacing: 0.3pt"> other</FONT> lien, any royalty or rentals accruing <FONT STYLE="letter-spacing: 0.3pt">
</FONT>hereunder.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">16. All rental
payments which may fall due under this lease <FONT STYLE="letter-spacing: 0.3pt"> </FONT>may be made to <U> </U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="line-height: 115%">one of the above
named <FONT STYLE="letter-spacing: 0.15pt"> lessor</FONT>, in the manner herein stated.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">17.<I>
</I>If within the primary term <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>this
lease production on the leased premises shall cease from any cause, this lease shall not <FONT STYLE="letter-spacing: 0.15pt">
</FONT>terminate provided operations <FONT STYLE="letter-spacing: 0.05pt"> </FONT>for the drilling of <FONT STYLE="letter-spacing: 0.15pt">
</FONT>a well sha11 be commenced before <FONT STYLE="letter-spacing: 0.05pt"> </FONT>or on the next ensuing rental <FONT STYLE="letter-spacing: 0.1pt">
</FONT>paying date: or, provided lessee begins or <FONT STYLE="letter-spacing: 0.3pt"> </FONT>resumes the payment of rentals in
the manner and amount hereinbefore provided. If</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">, </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">after
the expiration <FONT STYLE="letter-spacing: 0.1pt"> </FONT>of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the primary <FONT STYLE="letter-spacing: 0.05pt">
</FONT>term of this lease, production <FONT STYLE="letter-spacing: 0.15pt"> </FONT>on the leased premises shall cease from any
cause, this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>lease shall not terminate provided lessee resumes operations <FONT STYLE="letter-spacing: 0.15pt">
</FONT>for drilling a well within sixty (60) days <FONT STYLE="letter-spacing: 0.1pt"> </FONT>from such cessation, and this lease
shall remain in force during the prosecution of <FONT STYLE="letter-spacing: 0.05pt"> </FONT>such operations <FONT STYLE="letter-spacing: 0.15pt">
</FONT>and. if production results therefrom, then as long as production continues.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="line-height: 115%">18.
It is agreed that this <FONT STYLE="letter-spacing: 0.15pt"> </FONT>lease shall never be forfeited or cancelled for failure to
perform in <FONT STYLE="letter-spacing: 0.1pt"> </FONT>whole or in <FONT STYLE="letter-spacing: 0.1pt"> </FONT>part any of its
implied <FONT STYLE="letter-spacing: 0.1pt"> </FONT>covenants conditions or stipulations until it shall have first been finally
judicially determined that such failure exists and after such final determination, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>lessee
is given reasonable time therefrom to comply with any such covenants, conditions, or stipulations.</FONT></P>

<P STYLE="font: 9pt Calibri, Halvetica, Sans-Serif; margin: 2.5pt 3.2pt 0 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; line-height: 115%">19.
All express and implied covenants of this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lease shall <FONT STYLE="letter-spacing: 0.15pt">
</FONT>be subject to all <FONT STYLE="letter-spacing: 0.05pt"> </FONT>federal and state laws, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>executive <FONT STYLE="letter-spacing: 0.1pt"> </FONT>orders, rules and regulations, and <FONT STYLE="letter-spacing: 0.1pt">
</FONT>this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lease shall not be terminated, in whole <FONT STYLE="letter-spacing: 0.3pt">
</FONT>or <FONT STYLE="letter-spacing: 0.1pt"> </FONT>in <FONT STYLE="letter-spacing: 0.1pt"> </FONT>part, nor lessee held liable
in damage for failure to comply therewith if compliance is prevented <FONT STYLE="letter-spacing: 0.1pt"> </FONT>by or </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">if
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">such failure is the result <FONT STYLE="letter-spacing: 0.3pt">
</FONT>of any such law, order, rule or regulation, <FONT STYLE="letter-spacing: 0.3pt"> </FONT>or <FONT STYLE="letter-spacing: 0.1pt">
</FONT>if such compliance is <FONT STYLE="letter-spacing: 0.15pt"> </FONT>prevented by or <FONT STYLE="letter-spacing: 0.3pt">
</FONT>failure is the result of inability of lessee through no fault of its own, to obtain sufficient and satisfactory material
and equipment to justify <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the commencement of drilling operations or to continue production
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>of oil or gas from the leased premises.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 2pt 0 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">20. This
lease <FONT STYLE="letter-spacing: 0.15pt"> </FONT>and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>all its terms, conditions,
and stipulations shall extend to and be binding on al1 successors of said <FONT STYLE="letter-spacing: 0.1pt"> </FONT>lessor or
lessee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.45pt 4.8pt 0 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">21.
<FONT STYLE="letter-spacing: 0.05pt"> With respect to</FONT> and for the purpose of this <FONT STYLE="letter-spacing: 0.15pt">
</FONT>lease, lessor, and each of <FONT STYLE="letter-spacing: 0.1pt"> </FONT>them if there be more than one, hereby <FONT STYLE="letter-spacing: 0.15pt">
</FONT>release and waive the right of homestead. WHEREOF witness our hands as of the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>day
and year first above written.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.45pt 4.8pt 0 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 42%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 8%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.45pt 4.8pt 0 0; text-indent: 0.25in"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0.05pt; text-align: center; margin-bottom: 0"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0.05pt; text-align: center; margin-bottom: 0"></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin-top: 0.05pt; text-align: center; margin-bottom: 0"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT><B>ACKNOWLEGDEMENT</B></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin-top: 0.05pt; text-align: center; margin-bottom: 0"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">STATE OF</TD>
    <TD STYLE="width: 22%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 68%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">}ss.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">County of</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.35pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.9pt 0 0"><FONT STYLE="line-height: 115%">On thi<FONT STYLE="letter-spacing: 0.05pt">s
<U> </U></FONT>day of <U> </U>, 19<U> </U>, before me personally appeared<U> </U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.45pt 0 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">to
me known to be the perso<FONT STYLE="letter-spacing: 0.1pt">n<U> </U></FONT> described in and <FONT STYLE="letter-spacing: 0.3pt">
</FONT>who <FONT STYLE="letter-spacing: 0.1pt"> </FONT>executed the </FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.45pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 7.45pt 0 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">foregoing
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>instrument <FONT STYLE="letter-spacing: 0.3pt"> </FONT>and acknowledged tha<FONT STYLE="letter-spacing: 0.15pt">t
<U> </U> </FONT>executed the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>same a<FONT STYLE="letter-spacing: 0.05pt">s <U> </U>
</FONT>free act and deed.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.5pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 1.5pt 0 0"><FONT STYLE="line-height: 115%">Given under my hand and seal
this <U> </U>day of <U> </U>, 19<U> </U>.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif"><FONT STYLE="line-height: 115%">My  Commission Expires</FONT></TD>
    <TD STYLE="width: 34%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 4%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 38%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">Notary Public</TD></TR>
</TABLE>
<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 1.95pt 0 0; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 1.95pt 0 0; text-align: center"><FONT STYLE="line-height: 115%"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 1.95pt 0 0; text-align: center"><FONT STYLE="line-height: 115%"><B>ACKNOWLEDGMENT-MAN
AND WIFE</B></FONT></P>

<P STYLE="font: 9pt Arial, Helvetica, Sans-Serif; margin: 0.3pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">STATE OF</TD>
    <TD STYLE="width: 21%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 67%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">}ss.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">County of</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">On this <U> </U>day of <U> </U>,
1<FONT STYLE="letter-spacing: -0.25pt">9<U> </U></FONT>, before me personally appeared<U> </U></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 9.35pt 0 0; text-indent: 0.5in"><FONT STYLE="line-height: 115%">me
known to be the person<U> </U> described in and <FONT STYLE="letter-spacing: 0.05pt"> </FONT>who executed the</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.4pt 9.35pt 0 0"><FONT STYLE="line-height: 115%">foregoing instrument
and acknowledged tha<FONT STYLE="letter-spacing: 0.15pt">t <U> </U></FONT>executed the <FONT STYLE="letter-spacing: 0.3pt"> </FONT>same
as <U> </U> free act and deed, including<FONT STYLE="letter-spacing: 0.3pt"> </FONT>the re-</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">lease and waiver of the right of
homestead; the said wife having <FONT STYLE="letter-spacing: 0.1pt"> </FONT>been by me fully apprised of her right and the effect
of signing and acknowledging the said instrument.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.3pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="line-height: 115%">Given under my hand and seal thi<FONT STYLE="letter-spacing: 0.3pt">s
<U> </U></FONT>day of <U> </U>, 1<FONT STYLE="letter-spacing: -0.25pt">9<U> </U>.</FONT></FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif"><FONT STYLE="line-height: 115%">My  Commission Expires</FONT></TD>
    <TD STYLE="width: 34%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 4%; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 38%; border-bottom: windowtext 1pt solid; padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-top: 1.45pt; padding-right: 4.8pt; padding-bottom: 10pt; line-height: 115%; font-family: Times New Roman, Times, Serif; text-align: right">Notary Public</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"><FONT STYLE="line-height: 115%">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Courier New, Courier, Monospace; margin-top: 0.05in; margin-bottom: 0; text-align: center"><B>EXHIBIT<FONT STYLE="letter-spacing: -1.3pt">
</FONT>&ldquo;E&rdquo;</B></P>

<P STYLE="font: 5.5pt Courier New, Courier, Monospace; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 203.9pt 0 204.45pt; text-align: center"><B><U>FARMOUT AGREEMENT</U></B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 81.15pt"><B>THIS </B>Farmout Agreement (&quot;Agreement&quot;)
is made and entered into this 11th day of June,</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0.4pt 44.6pt 0 44.85pt; text-align: justify; text-indent: 0.5pt"><FONT STYLE="font: 11.5pt/105% Times New Roman, Times, Serif">2010,
by<FONT STYLE="letter-spacing: 0.05pt"> </FONT>and between EMPIRE PETROLEUM CORPORATION (hereinafter referred to as &quot;Empire&quot;),
as party of the first part, and CORTEZ EXPLORATION, L.L.C. and WINDMILL OIL </FONT><FONT STYLE="font: 10.5pt Arial, Helvetica, Sans-Serif">&amp;
</FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">GAS, L.L.C., as parties of the second part. Hereafter, Cortez Exploration,
L.L.C. will sometimes be referred to as &quot;Cortez&quot; and Windmill <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Oil <FONT STYLE="letter-spacing: 0.1pt">
</FONT></FONT><FONT STYLE="font: 10.5pt Arial, Helvetica, Sans-Serif">&amp; </FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">Gas,
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>L.L.C. will sometimes be referred to as<FONT STYLE="letter-spacing: 0.05pt"> </FONT>&quot;Windmill&quot;.
On some occasions,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Cortez and Windmill will be<FONT STYLE="letter-spacing: 0.15pt">
</FONT>collectively referred to as the<FONT STYLE="letter-spacing: -0.05pt"> </FONT>&quot;Cortez Group&quot;.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 234.2pt 0 233.85pt; text-align: center"><B>RECITALS</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 44.6pt 0 45.1pt; text-align: justify; text-indent: 36.8pt">1. <FONT STYLE="letter-spacing: 0.15pt">
</FONT>The Gabbs Valley Prospect (&quot;Prospect&quot;) covers approximately 92,825 gross acres, with no depth limitations, in
Nye and Mineral Counties, Nevada, which acreage is owned by<FONT STYLE="letter-spacing: -0.2pt"> </FONT>the parties to this Agreement.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 44.65pt 0 44.6pt; text-align: justify; text-indent: 36.05pt"><FONT STYLE="line-height: 98%">2.
A <FONT STYLE="letter-spacing: 0.3pt"> </FONT>number of leases or portions of leases making up the Prospect have been included
in an oil and gas unit formed pursuant to that certain agreement titled &quot;Unit Agreement for the Development and <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Operation of the Paradise Unit Area Counties of Nye and Mineral, State of Nevada&quot;, dated April 14, 2010, No. ANVN88316X
(hereinafter, the &quot;Paradise Unit Agreement&quot;). A copy of the Paradise Unit Agreement is attached hereto as Exhibit &quot;A&quot;.
The unit formed under the Paradise Unit Agreement is hereafter referred to as the &quot;Paradise <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Unit&quot;. Prospect leases wholly or partially included in the Paradise Unit are identified and described on Exhibit &quot;B&quot;
attached to this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Agreement, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>and are hereafter
referred <FONT STYLE="letter-spacing: 0.05pt"> </FONT>to as <FONT STYLE="letter-spacing: 0.1pt"> </FONT>the &quot;Paradise Unit
Leases&quot;.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 45.15pt 0 44.35pt; text-align: justify; text-indent: 36.55pt"><FONT STYLE="line-height: 98%">3.
There <FONT STYLE="letter-spacing: 0.3pt"> </FONT>are additional leases included in the Prospect that are not part of the Paradise
Unit. Prospect leases or portions of Prospect leases not included in the Paradise Unit are identified and described on Exhibit
&quot;C&quot; attached<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to this<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Agreement,
and are hereafter referred to as the &quot;Non-Unit Leases&quot;.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif">
<TR>
    <TD>
        <P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0 0 10pt"></P></TD></TR>
</TABLE>
<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">4. The Cortez Group owns 41% (of 8/8ths) leasehold interest, record title interest and <FONT STYLE="letter-spacing: 0.1pt">
</FONT>working interest in all <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of the Prospect Leases and 41% of 80% (of 8/8ths) net
revenue interest in each of the Prospect Leases free and clear of other burdens, liens and encumbrances. Empire desires to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>acquire by farmout an<FONT STYLE="letter-spacing: 0.05pt"> </FONT>additional working<FONT STYLE="letter-spacing: -0.05pt">
</FONT>interest in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>the Paradise Unit Leases.</P>

<P STYLE="font: 20pt Arial, Helvetica, Sans-Serif; margin: 0 15.5pt 0 0; text-align: right"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 9pt Calibri, Halvetica, Sans-Serif">
<TR>
    <TD>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">5. &#9;The Cortez Group and Empire have agreed, at the request of Empire, that the</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 44.6pt; text-align: justify">Cortez Group will assign
to Empire the Cortez Group's 41<B>% </B>gross working interest (which is</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 44.6pt; text-align: justify"><B>41% <FONT STYLE="letter-spacing: 0.15pt">
</FONT></B>of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>8/8 net revenue <FONT STYLE="letter-spacing: 0.15pt"> </FONT>interest)
in all of the &quot;Prospect&quot; Leases concurrently with the fully</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 44.6pt; text-align: justify">execution of this Agreement.
At this time, the Cortez Group's ownership in the Prospect Leases</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.25pt 0 44.6pt; text-align: justify; text-indent: 0.5in">is as
follows:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 1.75pt 0 0 79.95pt"><FONT STYLE="font: 11.5pt/105% Times New Roman, Times, Serif">Cortez
Exploration, L.L.C. Windmill Oil </FONT><FONT STYLE="font: 10.5pt Arial, Helvetica, Sans-Serif">&amp; </FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">Gas,
L.L.C.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 1.5pt 157.75pt 0 0; text-align: center">38.5%</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 158.15pt 0 3.65pt; text-align: center">2.5%</P>

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    <!-- Field: /Page -->

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 3.2pt 3pt 0 7.7pt; text-align: justify; text-indent: 0.5pt"><FONT STYLE="line-height: 105%">Empire
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>will earn a working interest in the Paradise Unit Leases, owned by the Cortez <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Group only, by payment of 100% of the lease rentals on the Paradise Unit Leases coming due subsequent to June <FONT STYLE="letter-spacing: 0.3pt">
</FONT>1, 2010, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>within the terms of this Agreement, <FONT STYLE="letter-spacing: 0.05pt">
</FONT>and after Empire drills the Paradise Unit No. 2-12 Well, and otherwise performs in accordance with the terms and provisions
as<FONT STYLE="letter-spacing: 0.3pt"> </FONT>set forth below.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.9pt 0 7.7pt; text-align: justify; text-indent: 36.5pt"><FONT STYLE="line-height: 105%">6.
Concurrently with the execution of this Agreement, Cortez Exploration, L.L.C. will execute an agency agreement or any<FONT STYLE="letter-spacing: 0.15pt">
</FONT>other required documents so as to make Empire the designated &quot;Unit Operator&quot;, to be effective with commencement
of drilling operations on the Paradise Unit No. 2-12 Well.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0 109.65pt 0 7.7pt; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>I.
<FONT STYLE="letter-spacing: 0.05pt"> </FONT></B></FONT><B><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">PAYMENT OF
RENTALS AS TO PARADISE UNIT LEASES</FONT></B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.9pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.7pt 0 0.1in; text-indent: 36.25pt"><FONT STYLE="line-height: 98%">A.
&#9;As a part of this <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Agreement, Empire has paid tl-e Paradise Unit <FONT STYLE="letter-spacing: 0.15pt">
</FONT>lease rentals which became due in June of 2010. In addition thereto, during the time that Empire holds the Cortez Group
working interest in the Paradise Leases, which is a 41% of 8/8ths gross working interest and a 41% of 80% net revenue interest,
Empire shall pay the 41% of rentals due under the Paradise Unit Leases on behalf of the Cortez Group. At such time as Empire has
reassigned to the Cortez Group a collective 20.5% (of 8/8ths) working interest in the Paradise Unit Leases, Empire shall pay 77.5%
of the rentals due under the Paradise Unit Leases and the Cortez Group and Punto De Luz shall pay the remaining<FONT STYLE="letter-spacing: 0.3pt">
</FONT>portion of such rentals.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.95pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 115.1pt 0 0.1in; text-align: justify"><B>II. EARNING OBLIGATIONS
FOR PARADISE UNIT LEASES</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 42.95pt">A. &#9;<U>Assignment to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Empire.</U></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.9pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.9pt 0 0.1in; text-align: justify; text-indent: 71.75pt">Upon
the full execution of this Agreement, the Cortez Group shall, at the request of Empire, execute and deliver to Empire assignments
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>of all of the Cortez <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Group's working interest
and the agreed upon corresponding net revenue interest in the Prospect Leases.</P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 141.75pt 0 41.1pt; text-align: center">B. &#9;<U>Obligation To
Drill The Paradise Unit No. 2-12 Well.</U></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.9pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.3pt 0 6.95pt; text-align: justify; text-indent: 71.75pt"><FONT STYLE="line-height: 98%">The
initial test well with respect to the Paradise Unit Leases will be known as the &quot;Empire Paradise <FONT STYLE="letter-spacing: 0.3pt">
</FONT>Unit No. 2-12 <FONT STYLE="letter-spacing: 0.3pt"> </FONT>Well&quot;. The Empire <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Paradise
Unit No. 2-12 Well <FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall be located in the Paradise Unit, on Lease No. N-599901, in
the SE/4 of the SE/4 of the NE/4 of Section 12-T12N-R34E, and shall be drilled to the lesser of (i) 6,000 feet below the surface,
(ii)</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.3pt 0 6.7pt; text-align: justify">500 feet into the Triassic
formation, or (iii) any lesser depth where oil and/or gas is found in</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.45pt 6pt 0 6.5pt; text-align: justify">commercial quantities. Empire
shall commence the drilling of the Empire Paradise Unit No. 2-</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.2pt 4.05pt 0 5.75pt; text-align: justify; text-indent: 1.7pt"><FONT STYLE="line-height: 98%">12
Well on or before the 15th day of August, 2010, or at such other time as may be agreed upon by the Cortez <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Group in writing. Empire shall earn the working interest in the Paradise <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Unit
Leases contemplated in this Agreement when either (a) Empire has completed and equipped the Empire Paradise Unit No. 2-12 Well
into pipeline connections or tanks, should such well produce oil and/or gas, or (b) Empire has properly plugged and abandoned such
well in accordance with the rules and regulations of<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the BLM, should such well be<FONT STYLE="letter-spacing: 0.1pt">
</FONT>a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>dry hole.</FONT></P>

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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 3.3pt 0 0 42.65pt">C. &#9;<U>Costs for Drilling and Completing the<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Empire<FONT STYLE="letter-spacing: -0.05pt"> </FONT>Paradise Unit Nol. 2-12 Well.</U></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.95pt 0 6.1pt; text-align: justify; text-indent: 71.9pt"><FONT STYLE="line-height: 105%">The
Cortez Group shall not have any responsibility to pay the costs to drill the Empire Paradise Unit No. 2-12 Well. The Cortez Group
likewise shall not have any responsibility to pay the costs to complete and equip the Empire Paradise Unit No. 2-12 Well into pipeline
connections or tanks, or to abandon the Empire Paradise Unit No. 2-12 Well should it be a dry hole, as the case may be. As between
Empire and the Cortez Group, the manner in which to drill and complete the Empire Paradise Unit No. 2-12 Well and the costs to
be incurred to drill and complete the Empire Paradise Unit No. 2-12 Well shall be in the sole discretion of Empire, consistent
with good oil field practice. In this regard, Empire is not required to prepare an AFE or obtain approval of<FONT STYLE="letter-spacing: 0.1pt">
</FONT>an AFE from the Cortez<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Group with respect<FONT STYLE="letter-spacing: 0.1pt">
</FONT>to the drilling and completion (or abandonment) of the Empire Paradise Unit No. 2-12 Well. All reference to the Empire Paradise
Unit No. 2-12 Well<FONT STYLE="letter-spacing: -0.05pt"> </FONT>in<FONT STYLE="letter-spacing: 0.15pt"> </FONT>this Section II.C
shall apply<FONT STYLE="letter-spacing: 0.3pt"> </FONT>equally to<FONT STYLE="letter-spacing: 0.3pt"> </FONT>any<FONT STYLE="letter-spacing: 0.3pt">
</FONT>substitute well under Section II.D, immediately below.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.9pt">D. &#9;Substitute Well(s).</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.4pt 0 5.85pt; text-align: justify; text-indent: 71.65pt"><FONT STYLE="line-height: 105%">If,
in Empire's opinion, the drilling or further drilling of the Empire Paradise Unit No. 2-12 Well as set forth in Section II.B above
is rendered impossible or impractical prior to satisfying the requirements of Section II.B above, Empire shall notify the Cortez
Group of the same as provided in this Agreement. Empire shall have the option, but not the obligation, <FONT STYLE="letter-spacing: 0.1pt">
</FONT>of drilling a substitute well in a reasonable location of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Empire's choosing.
If Empire chooses not to drill <FONT STYLE="letter-spacing: 0.05pt"> </FONT>a substitute well, then Empire shall promptly reassign
the entirety of the Paradise Unit Leases and corresponding <FONT STYLE="letter-spacing: 0.05pt"> </FONT>net revenue interest to
the Cortez Group using BLM Form 3000-3 in recordable form so<FONT STYLE="letter-spacing: 0.1pt"> </FONT>that the Cortez<FONT STYLE="letter-spacing: 0.05pt">
</FONT>Group may<FONT STYLE="letter-spacing: 0.05pt"> </FONT>record<FONT STYLE="letter-spacing: 0.05pt"> </FONT>such assignments
in Nye and Mineral Counties, Nevada. This Agreement shall terminate upon the transmittal of such reassignment from Empire to the
Cortez Group.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.9pt 0 41.65pt; text-indent: -35.6pt"><B>III. &#9;REASSIGNMENT
TO CORTEZ WITH REPSECT TO THE PARADISE UNIT LEASES</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.95pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 41.65pt">A. &#9;<FONT STYLE="font-size: 11.5pt"><U>Reassignment
if the Empire Paradise Unit No. 2-12 Well is<FONT STYLE="letter-spacing: 0.1pt"> </FONT>a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Dry
Hole.</U></FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.45pt 0 5.85pt; text-align: justify; text-indent: 71.2pt"><FONT STYLE="line-height: 98%">If
Empire drills the Empire Paradise Unit No. 2-12 Well to the requirements of Section II above, but such well is a dry hole, then
Empire, upon completion of the plugging and abandonment of such well, shall reassign to the Cortez Group 20.5% (of 8/8ths) of the
working interest and corresponding net revenue interest in the Paradise Unit Leases using BLM Form</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 6.1pt">3000-3.</P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0 0 0 41.2pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">B.
&#9;</FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif"><U>Reassignment if the Empire <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Paradise Unit No. 2-12 Well Produces <FONT STYLE="letter-spacing: 0.3pt"> </FONT>in <FONT STYLE="letter-spacing: 0.1pt">
</FONT>Paying</U></FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.9pt 0 0 5.85pt">Quantities.</P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.6pt 0 5.1pt; text-align: justify; text-indent: 71.4pt"><FONT STYLE="line-height: 105%">If
the Empire Paradise Unit No. 2-12 Well produces hydrocarbons, Empire shall retain all of the working interest and corresponding
net revenue interest in the NE/4 of Section</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0 6.3pt">12-T12N-R34E (the &quot;Spacing Unit&quot;) in
the Paradise <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Unit <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Leases (i.e., the 41%
(of <FONT STYLE="letter-spacing: 0.15pt"> </FONT>8/8ths)</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.65pt 0 0 5.1pt">working interest and corresponding net revenue
interest assigned by the Cortez Group pursuant</P>

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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 3.15pt 2.55pt 0 7.5pt; text-align: justify">to Section III.A above,
until the Empire Paradise Unit No. 2-12 Well reaches Payout, as defined in Section III.D below. At such time as the Empire Paradise
Unit No. 2-12 Well reaches Payout, Empire shall reassign to the Cortez Group 20.5% (of<FONT STYLE="letter-spacing: 0.15pt"> </FONT>8/8ths)
of the working interest and corresponding net revenue interest in the Paradise Unit<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Leases,<FONT STYLE="letter-spacing: -0.15pt">
</FONT>and Empire shall retain 77.5% (of</P>

<P STYLE="font: 11.5pt Calibri, Halvetica, Sans-Serif; margin: 0.2pt 3.3pt 0 7.95pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">8/8ths)
of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the working interest and <FONT STYLE="letter-spacing: 0.3pt"> </FONT>corresponding
net revenue interest </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">in </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">the
<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Paradise Unit</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.2pt 430.55pt 0 7.5pt; text-align: justify">Leases.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 43.65pt">C. &#9;<U>Reassignment if<FONT STYLE="letter-spacing: -0.1pt">
</FONT>the Empire Paradise<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Unit No. 2-12 Well<FONT STYLE="letter-spacing: -0.05pt">
</FONT>is Not Drilled.</U></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.7pt 0 7pt; text-align: justify; text-indent: 72.3pt"><FONT STYLE="line-height: 105%">If
Empire does not drill the Empire Paradise Unit No. 2-12 Well within the time provided in Section II.B <FONT STYLE="letter-spacing: 0.3pt">
</FONT>above, then Empire, if it has <FONT STYLE="letter-spacing: 0.15pt"> </FONT>received assignment, shall promptly reassign
the entirety of the Paradise Unit Leases and corresponding net revenue interest to the Cortez Group using BLM Form<FONT STYLE="letter-spacing: 0.3pt">
</FONT>3000-3.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 43.15pt">D. &#9;<U>Definition of Payout.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.3pt 0 6.5pt; text-align: justify; text-indent: 72.8pt"><FONT STYLE="line-height: 98%">&quot;Payout&quot;
for this Agreement shall be<FONT STYLE="letter-spacing: -0.25pt"> </FONT>on a well-by-well basis, and shall be<FONT STYLE="letter-spacing: 0.1pt">
</FONT>deemed to<FONT STYLE="letter-spacing: 0.15pt"> </FONT>occur for each well when sales proceeds actually<FONT STYLE="letter-spacing: 0.15pt">
</FONT>received from production from the well, after deduction of taxes and Nevada taxes on production, landowner's royalty and
overriding royalty interest shall equal 100% of <FONT STYLE="letter-spacing: 0.3pt"> </FONT>the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>actual cost <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of drilling, testing, completing, equipping and operating the well
to<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the point<FONT STYLE="letter-spacing: 0.05pt"> </FONT>of<FONT STYLE="letter-spacing: 0.15pt">
</FONT>payout, and treating,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>processing, transporting and marketing production therefrom.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 143pt 0 6.75pt; text-align: justify"><B>IV. OPERATIONS WITH RESPECT
TO<FONT STYLE="letter-spacing: 0.15pt"> </FONT>PARADISE UNIT</B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 42.7pt">A. &#9;Empire To Be Unit<FONT STYLE="letter-spacing: 0.1pt">
</FONT>Operator.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 5.1pt 0 6.3pt; text-align: justify; text-indent: 72.3pt"><FONT STYLE="line-height: 105%">The
Cortez Group shall take the actions necessary so that Empire is appointed as the replacement Unit Operator as soon as possible,
or<FONT STYLE="letter-spacing: -0.05pt"> </FONT>at<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the<FONT STYLE="letter-spacing: 0.15pt">
</FONT>request of Empire.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.9pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 42.45pt">B. &#9;Unit Operating Agreement.</P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.85pt 0 5.8pt; text-align: justify; text-indent: 73.05pt"><FONT STYLE="line-height: 98%">Subject
to all provisions of the &quot;Paradise Unit Agreement&quot;, operations for the Paradise Unit shall be conducted pursuant to the
Unit Operating Agreement, attached hereto as Exhibit &quot;D&quot;, except that with respect to<FONT STYLE="letter-spacing: 0.3pt">
</FONT>any inconsistencies between this Agreement and the Unit Operating Agreement, this Agreement shall govern. If additional
Paradise Unit wells are proposed subsequent to the drilling, completion and/or abandonment or<FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Empire Paradise Unit No. 2-12 Well, then such additional wells shall be drilled pursuant to the terms and provisions
of the Unit Operating Agreement.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 259.85pt 0 5.8pt; text-align: justify"><B>V. AREA OF MUTUAL INTEREST</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 5.95pt 0 5.8pt; text-align: justify; text-indent: 35.7pt"><FONT STYLE="line-height: 105%">Empire
and the Cortez Group hereby form an area of mutual interest (&quot;AMI&quot;) covering Townships 11, 12, 13 and 14 North and Ranges
34, 35 and 36 East MDM, Nevada. <FONT STYLE="letter-spacing: 0.15pt"> </FONT>This AMI shall remain in effect for five (5) years<FONT STYLE="letter-spacing: 0.15pt">
</FONT>from the date of this Agreement.</FONT></P>

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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 3.9pt 2.9pt 0 6.5pt; text-align: justify; text-indent: 36.85pt"><FONT STYLE="line-height: 105%">If<FONT STYLE="letter-spacing: 0.3pt">
</FONT>during the five (5) year<FONT STYLE="letter-spacing: 0.05pt"> </FONT>duration of such AMI<FONT STYLE="letter-spacing: 0.15pt">
</FONT>any<FONT STYLE="letter-spacing: 0.1pt"> </FONT>party should acquire (&quot;Acquiring Party&quot;) any <FONT STYLE="letter-spacing: 0.05pt">
</FONT>oil and gas leases, leasehold interest or mineral <FONT STYLE="letter-spacing: 0.05pt"> </FONT>interest within the AMI by
any means including, but not limited to, purchase, top lease, farmins, farmouts, farmout options, or acreage contributions, then
the <FONT STYLE="letter-spacing: 0.15pt"> </FONT>Acquiring Party <FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall immediately
notify the Non-Acquiring Parties, in writing, of such acquisition, setting forth the nature of the interest acquired, all terms,
provisions and contracts related to the acquisition (along with copies of all documents relating to the acquisitions or rights
to earn a leasehold or mineral interest) and the price paid therefor. The Non-Acquiring Parties shall have a period of thirty (30)
days following receipt of notice to elect in writing, with all appropriate documentation relating to the acquisition, to purchase
at<FONT STYLE="letter-spacing: 0.1pt"> </FONT>the Acquiring Party's cost and acquire its Ownership Percentage (defined below) of
such acquisition by remitting the required payment to the Acquiring Party, during such thirty (30) day period. If the interest
is to be earned by drilling and/or shooting seismic, the Non-Acquiring Parties must ratify all appropriate agreements within the
thirty (30) days period. Notwithstanding the preceding sentence, such thirty (30) day notice period may be reduced due to applicable
contractual obligations or limitations <FONT STYLE="letter-spacing: 0.15pt"> </FONT>(e.g., farmout terms or lease expiration dates),
in which case the Non-Acquiring Parties may be required to respond in a shorter time period as may be reasonably appropriate under
the circumstances. In the event one or more parties receiving an offer pursuant to this paragraph <FONT STYLE="letter-spacing: 0.3pt">
</FONT>do not accept same, the Acquiring <FONT STYLE="letter-spacing: 0.1pt"> </FONT>Party shall first offer the interest not accepted
by a party to the other parties on a pro rata basis. If any of the interest that was previously turned down by a party is <FONT STYLE="letter-spacing: 0.1pt">
</FONT>available after it has been turned down by the remaining parties, the Acquiring Party shall hold such interest free and
clear of any further AMI obligations of this Agreement. However, <FONT STYLE="letter-spacing: 0.05pt"> </FONT>notwithstanding anything
to the contrary contained herein, any interest within the AMI acquired by any party as a result of the acquisition of the stock
or substantially all of the assets of another entity or any transaction in which such interests are not of material value in relation
to the entire transaction, shall be excluded <FONT STYLE="letter-spacing: 0.3pt"> </FONT>from and not subject to this AMI.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.05pt 0 6.3pt; text-align: justify; text-indent: 36.15pt"><FONT STYLE="line-height: 98%">The
parties specifically agree that if<FONT STYLE="letter-spacing: 0.15pt"> </FONT>a lease or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>interest
covers land both inside and outside an AMI, the Acquiring Party must offer the entire lease or interest to the other parties and
if the party elects to acquire an interest in the lease, it must<FONT STYLE="letter-spacing: 0.3pt"> </FONT>agree to proportionately
acquire an interest in the<FONT STYLE="letter-spacing: 0.3pt"> </FONT>entire lease or interest even if a<FONT STYLE="letter-spacing: 0.3pt">
</FONT>portion of<FONT STYLE="letter-spacing: 0.05pt"> </FONT>the<FONT STYLE="letter-spacing: 0.15pt"> </FONT>lease<FONT STYLE="letter-spacing: -0.25pt">
</FONT>or interest lies outside the AMI.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.95pt">Any interest acquired within the AMI shall <FONT STYLE="letter-spacing: 0.05pt">
</FONT>be subject to the <FONT STYLE="letter-spacing: 0.05pt"> </FONT>provisions of the Unit</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 6.75pt">Operating Agreement, or Joint Operating Agreement,
as applicable.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.4pt 0 5.8pt; text-align: justify; text-indent: 36.15pt"><FONT STYLE="line-height: 105%">As
used herein, &quot;Ownership Percentage&quot; shall be the same percentage as the parties' then-ownership in the Paradise Unit.
To the extent the parties' <FONT STYLE="letter-spacing: 0.15pt"> </FONT>then-ownership in the Paradise Unit is not uniform throughout
the Unit, then Ownership Percentage shall be the average of each party's ownership interest on an<FONT STYLE="letter-spacing: 0.1pt">
</FONT>acreage basis.</FONT></P>

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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 4.05pt 2.4pt 0 42.7pt; text-indent: -35.9pt"><B>VI.&#9;REPRESENTATIONS
&#9;AND &#9;WARRANTIES &#9;BY&#9;THE &#9;CORTEZ &#9;GROUP; LIMITED INDEMNITY</B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 42.45pt">A. &#9;<FONT STYLE="font-size: 11.5pt"><U>Warranty of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Title.</U></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.55pt 0 6.3pt; text-align: justify; text-indent: 72.55pt"><FONT STYLE="line-height: 105%">Cortez
and Windmill, and each of them, represent and warrant that as of the date of this Agreement their respective title to the Prospect
Leases is free and clear from any prior conveyance, lien or encumbrance made or suffered by them, or by any person by, through
or under them, which diminishes, limits or burdens the<FONT STYLE="letter-spacing: 0.1pt"> </FONT>rights and interests that Empire
has the right to earn under this Agreement. Cortez and Windmill, and each of them, further warrant that until such time as<FONT STYLE="letter-spacing: 0.3pt">
</FONT>the Non-Unit Leases, or<FONT STYLE="letter-spacing: 0.3pt"> </FONT>any of them, are assigned to Empire under the terms of
this Agreement, neither Cortez nor Windmill will make or suffer, or allow to be made or suffered by any person by through or under
them, any conveyance, lien or encumbrance with respect to the Non-Unit Leases.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 42.45pt">B. &#9;<U>No Third Party Acquisitions.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.2pt 0 6.3pt; text-align: justify; text-indent: 72.05pt"><FONT STYLE="line-height: 105%">Cortez
and Windmill, and each of them, represent and warrant that as of the date of this Agreement, there are no agreements with any person
not a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>party to this Agreement that in any manner qualify, alter or otherwise affect
the rights and obligations of the parties under this Agreement.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.75pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 42.7pt">C. &#9;<U>Limited Indemnity.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.45pt 0 6.05pt; text-align: justify; text-indent: 72.3pt"><FONT STYLE="line-height: 98%">Cortez
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>shall indemnify, defend, <FONT STYLE="letter-spacing: 0.1pt"> </FONT>protect and hold
harmless Empire from and against any and all loss, cost or liability with respect to any lien, encumbrance or claim made by James
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>S. Isern, Isern Oil Company, Inc., or either of them, and any successors or assigns
of either of them, making any claims affecting title to either the Paradise Unit Leases or the Non Unit Leases.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 258.4pt 0 3.95pt; text-align: center"><B>VII. &#9;NON-PARADISE
UNIT LEASES</B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.95pt">A. &#9;<U>Empire's <FONT STYLE="letter-spacing: 0.15pt">
</FONT>Option With<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Respect<FONT STYLE="letter-spacing: -0.05pt"> </FONT>to the Non-Unit
Leases.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0 3.75pt 0 5.1pt; text-align: justify; text-indent: 72.3pt"><FONT STYLE="font: 11.5pt/105% Times New Roman, Times, Serif">For
a period of one (1) year from June 1, 2010, Empire shall have the optional right to drill an additional test well on any of the
Non-Unit Leases that have not expired. In order to maintain such option, Empire must pay<FONT STYLE="letter-spacing: 0.3pt"> </FONT>100%
of the rentals that become due under each of the Non-Unit Leases. However, Empire shall have the right to elect, on a lease-by-lease
basis during this one </FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">(1) </FONT><FONT STYLE="font: 11.5pt/105% Times New Roman, Times, Serif">year
term, whether to release its option as to a particular Non-Unit Lease (or Leases), while still maintaining its option to the remaining
Non-Unit Leases. Should Empire elect to release a Non-Unit Lease from the option provided in this Agreement, Empire shall give
written notice of such election to the Cortez Group no later than thirty (30) days in advance of the date the rental is due on<FONT STYLE="letter-spacing: 0.3pt">
</FONT>such Non-Unit Lease.</FONT></P>

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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 3.15pt 0 0 42.15pt">B. &#9;<U>Drilling the Non-Unit Test Well.</U></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.65pt 0 41.7pt; text-align: justify; text-indent: 71.85pt"><FONT STYLE="line-height: 105%">As
between Empire and the Cortez Group, Empire shall have the right to select the location for the Non-Unit Test Well. This Non-Unit
Test Well shall be drilled and earning rights achieved under the same terms and conditions as previously set forth for the drilling
of the Empire Paradise Unit No. 2-12 Well, with Empire earning 98% of the 160 acre governmental drilling and spacing unit surrounding
the Non-Unit Test Well until payout and earning one-half (1/2) of the Cortez Group's 41% (of 8/8ths) working interest in the remaining
Non-Unit Leases.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.9pt">C. &#9;Reassignment of Non-Unit<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Leases.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.65pt 0 41.7pt; text-align: justify; text-indent: 71.6pt"><FONT STYLE="line-height: 105%">In
the event<FONT STYLE="letter-spacing: 0.15pt"> </FONT>that Empire<FONT STYLE="letter-spacing: 0.3pt"> </FONT>does not exercise
its<FONT STYLE="letter-spacing: 0.3pt"> </FONT>optional right to drill a<FONT STYLE="letter-spacing: 0.15pt"> </FONT>Non Unit Test
Well within the term of this Agreement, then it shall immediately reassign all of the Cortez Group's interest to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>them in<FONT STYLE="letter-spacing: 0.1pt"> </FONT>their proportion of ownership.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.9pt">D. &#9;<U>Operator/Joint Operating<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Agreement.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.9pt 0 41.45pt; text-align: justify; text-indent: 71.6pt"><FONT STYLE="line-height: 105%">Empire
shall <FONT STYLE="letter-spacing: 0.3pt"> </FONT>be the Operator with respect to <FONT STYLE="letter-spacing: 0.15pt"> </FONT>the
<FONT STYLE="letter-spacing: 0.15pt"> </FONT>drilling, completion and/or abandonment of the optional Non-Unit Test Well and all
operations for such Non Unit Leases shall be conducted pursuant to a<FONT STYLE="letter-spacing: 0.3pt"> </FONT>Joint Operating
Agreement, a<FONT STYLE="letter-spacing: 0.1pt"> </FONT>copy of which is attached hereto as Exhibit &quot;D&quot;.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 5.75pt"><B>VIII. &#9;NOTICES</B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.65pt 0 5.5pt; text-align: justify; text-indent: 36.15pt"><FONT STYLE="line-height: 98%">All
notices or other communications required or permitted hereunder shall be provided in writing and shall be delivered to<FONT STYLE="letter-spacing: 0.15pt">
</FONT>the authorized representatives of Empire or the Cortez Group, as the case may be, by either (i) personal delivery, (ii)
certified mail, return receipt requested, (iii) overnight delivery service, or (iv)<FONT STYLE="letter-spacing: 0.15pt"> </FONT>facsimile,
as<FONT STYLE="letter-spacing: 0.15pt"> </FONT>follows:</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.45pt"><B>To Empire:</B></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.85pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.45pt">Empire Petroleum Corporation</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 41.9pt">8801 South Yale, Suite 120</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 41.45pt">Tulsa, Oklahoma 74137-3575</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.65pt 0 0 40.95pt">Attn: A. E. Whitehead</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 40.95pt">Facsimile: (918) 488-1530</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 40.95pt"><B>To the Cortez Group:</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 40.95pt">Cortez Exploration, L.L.C.</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.65pt 0 0 41.9pt">16786 Kincheloe Road</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 40.95pt">Siloam Springs, Arkansas 72761</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0.4pt 0 0 40.25pt"><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">Attn:
</FONT><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">0. </FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">F.<FONT STYLE="letter-spacing: 0.3pt">
</FONT>Duffield, Manager</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0 40.25pt">Facsimile: <FONT STYLE="letter-spacing: 0.05pt">(</FONT><FONT STYLE="letter-spacing: 0.1pt">4</FONT>79)
524-6057</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 3.3pt 247.45pt 0 4.8pt; text-align: center"><FONT STYLE="font-size: 12pt">IX.
&#9;</FONT><FONT STYLE="font-size: 11.5pt"><B>MISCELLANEOUS PROVISIONS</B></FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 0 0 0 42.15pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">A.
&#9;</FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif"><U>Successors and Assigns.</U></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.45pt 0 6.55pt; text-align: justify; text-indent: 71.65pt"><FONT STYLE="line-height: 105%">This
Agreement shall not be assigned by any <FONT STYLE="letter-spacing: 0.15pt"> </FONT>party without the <FONT STYLE="letter-spacing: 0.1pt">
</FONT>prior written approval of the non-assigning parties,<FONT STYLE="letter-spacing: 0.3pt"> </FONT>which<FONT STYLE="letter-spacing: 0.3pt">
</FONT>approval shall<FONT STYLE="letter-spacing: 0.3pt"> </FONT>not<FONT STYLE="letter-spacing: 0.3pt"> </FONT>be unreasonably
withheld, conditioned or delayed.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.9pt">B. &#9;Headings.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 3.15pt 0 6.55pt; text-align: justify; text-indent: 71.4pt"><FONT STYLE="line-height: 105%">Headings
used in this Agreement are inserted for convenience only and shall not affect the interpretation of any of<FONT STYLE="letter-spacing: 0.3pt">
</FONT>the<FONT STYLE="letter-spacing: 0.1pt"> </FONT>provisions of this Agreement.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.9pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 42.15pt">C. &#9;<U>Relationship of Parties.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.45pt 0 6.1pt; text-align: justify; text-indent: 71.9pt"><FONT STYLE="line-height: 105%">This
Agreement does<FONT STYLE="letter-spacing: 0.1pt"> </FONT>not constitute the parties hereto<FONT STYLE="letter-spacing: 0.15pt">
</FONT>as a partnership, mining partnership, mining partnership, joint venture,<FONT STYLE="letter-spacing: 0.1pt"> </FONT>incorporated
association or<FONT STYLE="letter-spacing: 0.05pt"> </FONT>any other joint relationship, it being intended that liabilities and
obligations of the parties hereunder shall be several and not joint. Each party<FONT STYLE="letter-spacing: 0.1pt"> </FONT>shall
be responsible only for its<FONT STYLE="letter-spacing: 0.3pt"> </FONT>obligations and liabilities as set out herein and no party
shall be responsible for those of any other party.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.9pt">D. &#9;<U>Further Assurances.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 2.6pt 0 5.85pt; text-align: justify; text-indent: 71.9pt"><FONT STYLE="line-height: 98%">The
parties agree to execute <FONT STYLE="letter-spacing: 0.15pt"> </FONT>such further instruments and documents and to diligently
undertake such actions as may <FONT STYLE="letter-spacing: 0.1pt"> </FONT>be necessary or appropriate in connection with the subject
matter of this <FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement <FONT STYLE="letter-spacing: 0.1pt"> </FONT>and to use their
<FONT STYLE="letter-spacing: 0.1pt"> </FONT>best efforts to do those <FONT STYLE="letter-spacing: 0.3pt"> </FONT>things reasonably
necessary to give full force and effect<FONT STYLE="letter-spacing: 0.15pt"> </FONT>to the terms and<FONT STYLE="letter-spacing: 0.3pt">
</FONT>intent<FONT STYLE="letter-spacing: 0.1pt"> </FONT>of<FONT STYLE="letter-spacing: 0.3pt"> </FONT>this Agreement.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.6pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.65pt">E. &#9;<U>Entire Agreement.</U></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.25pt 0 5.6pt; text-align: justify; text-indent: 71.9pt"><FONT STYLE="line-height: 105%">This
Agreement, including the Exhibits attached<FONT STYLE="letter-spacing: 0.15pt"> </FONT>hereto, constitutes the<FONT STYLE="letter-spacing: 0.3pt">
</FONT>entire agreement and understanding of the parties hereto with respect to the transactions contemplated hereby, and supersedes
all prior understandings, discussions and agreements between the parties relating to the subject matter hereof.</FONT></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.9pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.45pt">F. &#9;<U>Laws Governing This Agreement.</U></P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4pt 0 5.85pt; text-align: justify; text-indent: 71.4pt">This Agreement
shall be governed by and construed in accordance with the laws of the<FONT STYLE="letter-spacing: -0.3pt"> </FONT>State of Nevada.</P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 41.45pt">G. &#9;Binding Effect.</P>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.8pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 4.4pt 0 5.35pt; text-align: justify; text-indent: 71.65pt">This
<FONT STYLE="letter-spacing: 0.05pt"> </FONT>Agreement shall be <FONT STYLE="letter-spacing: 0.1pt"> </FONT>binding upon and inure
to the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>benefit <FONT STYLE="letter-spacing: 0.15pt"> </FONT>of <FONT STYLE="letter-spacing: 0.05pt">
</FONT>the <FONT STYLE="letter-spacing: 0.1pt"> </FONT>parties hereto, their respective heirs, successors and assigns.</P>

<P STYLE="font: 11pt Calibri, Halvetica, Sans-Serif; margin: 3.65pt 0 0 42.6pt"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">H.
&#9;</FONT><FONT STYLE="font: 11.5pt Times New Roman, Times, Serif">Counterpart Execution.</FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 6.05pt 0 7.1pt; text-indent: 71.25pt">This Agreement may be executed
in any number of counterparts, each of such shall be<FONT STYLE="letter-spacing: 0.05pt"> </FONT>considered an original for all<FONT STYLE="letter-spacing: 0.3pt">
</FONT>purposes.</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 5.35pt 0 6.6pt; text-indent: 35.75pt"><FONT STYLE="line-height: 100%"><B>IN
WITNESS WHEREOF, </B>the parties hereto have executed <FONT STYLE="letter-spacing: 0.1pt"> </FONT>this <FONT STYLE="letter-spacing: 0.05pt">
</FONT>Agreement on the dates set forth below.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 5.35pt 0 6.6pt; text-indent: 35.75pt"><FONT STYLE="line-height: 100%">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 9pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="width: 8%; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="width: 47%; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">EMPIRE PETROLEUM CORPORATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt; text-align: center">6-11-10</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">/s/ A. E. Whitehead</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt; text-align: center">(Date)</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">A. E. Whitehead, President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">CORTEZ EXPLORTION, L.L.C.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt; text-align: center">6-15-10</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">/s/&nbsp; O. F. Duffield</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt; text-align: center">(Date)</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">O. F. Duffield, Manager</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
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    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">WINDMILL OIL &amp; GAS, L.L.C.</TD></TR>
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    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD>
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    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt; text-align: center">6-11-10</TD>
    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">By:</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">/s/&nbsp; Richard L. Harris</TD></TR>
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    <TD STYLE="font: 11.5pt/115% Times New Roman, Times, Serif; padding-right: 5.05pt">Richard L. Harris, Manager</TD></TR>
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<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">EXHIBIT 31</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">CERTIFICATION</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">I, Albert E. Whitehead, certify that:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1. I have reviewed this annual report on Form
10-K of Empire Petroleum Corporation;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2. Based on my knowledge, this report does
not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3. Based on my knowledge, the financial statements,
and other financial information included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4. The registrant's other certifying officer(s)
and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for
the registrant and have:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">(a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">(b) Designed such internal control
over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">(c) Evaluated the effectiveness
of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>

<P STYLE="font: 10pt Courier New, Courier, Monospace; margin: 0 0 0 31.5pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">(d) Disclosed in this report any
change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter
(the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over financial reporting; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5. The registrant's other certifying officer(s)
and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify; text-indent: 0.5in">(a) All significant
deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify; text-indent: 0.5in">(b) Any fraud,
whether or not material, that involves management or other employees who have a significant role in the registrant's internal control
over financial reporting.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 31.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
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    <TD STYLE="width: 47%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">March 21, 2012</TD>
    <TD STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 49%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><U>/s/ Albert E. Whitehead</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Albert E. Whitehead, Chief Executive</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Officer (and principal financial officer)</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9;&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>11
<FILENAME>exhibit32.htm
<DESCRIPTION>EXHIBIT 32 CERTIFICATION
<TEXT>
<HTML>
<HEAD>
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</HEAD>
<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">EXHIBIT 32</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">CERTIFICATION PURSUANT TO</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT
TO</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with
the annual report of Empire Petroleum Corporation (the &quot;Company&quot;) on Form 10-K for the period ending December 31,
2011, as filed with the Securities and Exchange Commission on the date hereof (the &quot;Report&quot;), I, Albert E.
Whitehead, Chief Executive Officer (and principal financial officer) of the Company, certify, pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(1) The Report fully complies with the requirements
of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(2) The information contained in the Report
fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 47%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">March 21, 2012</TD>
    <TD STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 49%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><U>/s/ Albert E. Whitehead</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Albert E. Whitehead, Chief Executive</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Officer (and principal financial officer)</TD></TR>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A signed original of this written statement
required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and
Exchange Commission or its staff upon request.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The foregoing certification is being furnished
to the Securities and Exchange Commission as an exhibit to the Report and shall not be considered filed as part of the Report.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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          <div style="width: 200px;"><strong>Related Party Transactions<br></strong></div>
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">9. Related Party Transactions:</p>

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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 1, 2011 the Company and its Chief
Executive Officer entered into an agreement where the Company received $100,000 in exchange for entering into a Convertible Note
agreement. The note accrues interest at an annual rate of 4% and was originally set to mature on February 1, 2012. The note may
be converted into Common Stock of the Company by the holder at a conversion price of $.10 per share. The maturity date of the Note
has been extended to August 1, 2012.</p>


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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 235<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.4-08.(k))<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6881521&amp;loc=d3e23780-122690<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Article 3A<br><br> -Section 04<br><br> -Paragraph b<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 57<br><br> -Paragraph 1-4<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 850<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 5<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6457730&amp;loc=d3e39678-107864<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Article 4<br><br> -Section 08<br><br> -Paragraph k<br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 850<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 6<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6457730&amp;loc=d3e39691-107864<br><br><br><br>Reference 7: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 850<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 1<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6457730&amp;loc=d3e39549-107864<br><br><br><br>Reference 8: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 850<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 4<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6457730&amp;loc=d3e39622-107864<br><br><br><br>Reference 9: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 850<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 3<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6457730&amp;loc=d3e39603-107864<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
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<DOCUMENT>
<TYPE>EXCEL
<SEQUENCE>15
<FILENAME>Financial_Report.xls
<DESCRIPTION>IDEA: XBRL DOCUMENT
<TEXT>
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  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0ESG">
      <tr>
        <th class="tl" colspan="1" rowspan="2">
          <div style="width: 200px;"><strong>Stockholders Equity<br></strong></div>
        </th>
        <th class="th" colspan="2">12 Months Ended</th>
      </tr>
      <tr>
        <th class="th">
          <div>Dec. 31, 2011</div>
        </th>
        <th class="th">
          <div>Dec. 31, 2010</div>
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      </tr>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_EMPR_NotesToFinancialStatementsAbstract', window );"><strong>Notes to Financial Statements</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockholdersEquityNoteDisclosureTextBlock', window );">Stockholders Equity</a></td>
        <td class="text"><p style="margin: 0pt"></p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4. Capital Stock:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2005, the Company raised $500,000 of net
proceeds by selling 5,000,000 shares of newly issued common stock along with warrants to purchase 1,250,000 shares of common stock
which, subject to certain restrictions, could have been exercised for a period of one year at an exercise price of $0.25. Proceeds
of the original placement were allocated $67,875 to common stock warrants and</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">$432,125 to common stock and paid in capital.
In 2006, the warrants were extended twice; the extensions reduced the value of the warrants to $18,250. The value assigned to the
warrants was determined using the Black-Scholes option valuation method with the following assumptions: no dividend yield, expected
volatility of 154%, risk free interest rate of 3.28% and expected life of one year. Assumptions used for the extensions were: no
dividend yield, expected volatility of 153%, risk free interest rate of 4.86% and</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">expected life of 6 months. The warrants expired
on November 15, 2010 with none being exercised.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2006, the Company raised $1,450,000 of net
proceeds by selling 7,250,000 shares of newly issued stock along with warrants to purchase 1,812,500 shares of common stock, which,
subject to certain restrictions, could have been exercised on or before March 15, 2009 subsequently extended to November 15, 2010
at an exercise price of $0.50. Proceeds of the placement were allocated $144,675 to common stock warrants and $1,305,325 to common
stock and paid in capital. The value assigned to the warrants was determined using the Black-Scholes option valuation method with
the following assumptions: no dividend yield, expected volatility of 148% risk-free interest rate of 5.09% and an expected life
of one year. The warrants expired November 15, 2010 with none being exercised.</p>

<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2007, the Company raised $1,000,000 of net
proceeds by selling 5,000,000 shares of newly issued stock, along with warrants to purchase 1,250,000 shares of common stock, which
subject to certain restrictions, could have been exercised until March 15, 2009 (subsequently extended to November 15, 2010 at
an exercise price of $0.50 per share. Proceeds of the placement</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">were allocated $80,000 to common stock warrants
and $920,000 to common stock and paid in capital. The value assigned to the warrants was determined by using the Black-Scholes
option valuation methods with the following assumptions: no dividend yield, expected volatility of 136%, risk free interest rate
of 4.94%, and an expected useful life of one year. The warrants expired November 15, 2010 with none being exercised.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2009, the Company raised $1,215,216 of net
proceeds by selling 17,360,233 shares of newly issued common stock. Proceeds were utilized for the Company's share of costs to
drill a new well on the Gabbs Valley Prospect (See Note 1).</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2010, the Company raised $685,000 of net
proceeds by selling 8,515,874 shares of newly issued stock, along with warrants to purchase 2,222,226 shares of Common Stock which,
subject to certain restrictions, could have been exercised until June 16, 2011 at an exercise price of $0.50 per share. Proceeds
of the placements were allocated $101,250 to Common Stock Warrants and $583,750 to Common Stock and paid in capital. The value
assigned to the warrants was determined by using the Black-Scholes option valuation methods with the following assumptions: no
dividend yield, expected volatility of 155%, risk free interest rate of .3% and an expected useful life of one year. The warrants
expired in 2011 with none being exercised.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2011, the Company issued 2,000,000
shares of its common stock to Albert E. Whitehead, its Chief Executive Officer, for a purchase price of $0.05 per share, which
resulted in a total investment of $100,000.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5. Stock options:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under a stock option plan adopted in 1995, the
Company had the discretion to grant options for up to 1,600,000 shares of common stock until May 15, 2005, at which time the plan
terminated except to the extent necessary to govern outstanding options. Stock options granted under the plan vest on grant date
and expire ten years from the date of grant plus 30 days. The exercise price of the options is the fair market value on the date
of grant.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the Company's 2006 Annual Meeting of Stockholders,
the stockholders approved the 2006 Stock Incentive Plan (the &#34;Plan&#34;). The Plan permits the issuance of stock options,
restricted stock awards, and performance shares to employees, officers, directors, and consultants of the Company. Initially, and
until such time as the Board creates a Compensation Committee, the Board of Directors will administer the Plan. The total number
of shares of common stock that may be issued pursuant to awards under the Plan is 5,000,000. Under the Plan, no participant may
receive awards of stock options that cover in the aggregate more than 500,000 shares of common stock in any fiscal year. Unless
terminated by the Board, or upon the granting of awards covering all of the shares subject to the Plan, the Plan shall terminate
on June 5, 2016.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses the cost of options granted
over the vesting period of the option based on the grant-date fair value of the award. No options were granted in 2009. For the
year ended December 31, 2011 and 2010, the Company recognized an expense of $11,295 and $28,080, respectively, related to options
granted under the Plan.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair values were estimated at the date of grants
of the options, using the Black-Scholes option valuation model with the following weighted average assumptions: risk-free interest
rate of 3.65% and 2.77%, volatility factor of the expected market price of the Company's common stock of 172% and 142%, no dividend
yield on the Company's common stock, and a weighted average expected</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">life of the options of 5 years. The Black-Scholes
option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions
and are fully transferable. For purposes of determining the expected life of the options, the Company utilizes the Simplified Method
as defined in Staff Accounting Bulletin No. 107 issued by the Securities and Exchange Commission.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition options valuation models require
the input of highly subjective assumptions including stock price volatility.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, there was no unrecognized
compensation expense related to nonvested share-based compensation arrangements under the Plan.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the Company's Incentive Plan as
of December 31, 2011 and changes during the year is presented below:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

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    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
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<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
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<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at Beginning of Year 2010</td>
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<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Granted</td>
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    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.25</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
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<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cancelled or Exercised</td>
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    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.44</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at End of Year 2010</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
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    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.148</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Granted</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">150,000</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.10</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cancelled or Exercised</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.00</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at End of Year 2011</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,245,000</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
</table>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information about
stock options outstanding at December 2011:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" colspan="2" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options Outstanding</td>
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<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 16%; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</td>
    <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Range of</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Remaining</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Outstanding</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Contractual</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercisable</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Prices</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">at 12/31/11</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Life</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Price</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">at 12/31/11</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Price</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
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    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</td>
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    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</td>
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    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</td></tr>
</table>
<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">6. Income taxes:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes differs from
the amount obtained by applying the Federal income tax rate of 34% to income before income taxes. The difference relates to the
following items:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</td>
    <td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Statutory tax rate</td>
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    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">34%</td>
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    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">34%</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Expected tax benefit</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (85,000)</td>
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    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (890,000)</td></tr>
<tr style="vertical-align: bottom">
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    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;85,000</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
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<tr style="vertical-align: bottom">
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2011, the Company had net operating
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Utilization of the Company's loss carryforwards
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is no longer subject to income tax
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by any tax authorities.</p>

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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based upon a review of its income tax filing
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recorded. The Company recognizes interest related to income taxes as interest expense and penalties as operating expenses.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">7. Oil Sale Revenue:</p>

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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company currently records revenue from petroleum
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amounts due. Prior to 2006, the Company was responsible for distributing allocable portions of oil sale revenue to working interest
and royalty owners for production in the Cheyenne River Prospect. Accordingly, a liability for estimated royalty payments was recorded
when oil sale proceeds were received since a division order had not been completed, certain amounts were credited to royalties
payable until the division order issue was resolved.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">8. Operating lease:</p>

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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company leases office space under an operating
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Rent expense for each of the years ended December
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable).  Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 04<br><br> -Article 3<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 29, 30, 31<br><br> -Article 5<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 310<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SAB TOPIC 4.E)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6228006&amp;loc=d3e74512-122707<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 505<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 4<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21484-112644<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 505<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 4<br><br> -Subparagraph (SAB TOPIC 4.C)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6959260&amp;loc=d3e187143-122770<br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 129<br><br> -Paragraph 2, 3, 4, 5, 6, 7, 8<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 20: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 505<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 2<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21463-112644<br><br><br><br>Reference 21: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher AICPA<br><br> -Name Accounting Principles Board Opinion (APB)<br><br> -Number 12<br><br> -Paragraph 10<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 22: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 505<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 6<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21506-112644<br><br><br><br>Reference 23: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 505<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 11<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21564-112644<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_StockholdersEquityNoteDisclosureTextBlock</nobr></td>
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                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
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                    <td><strong> Data Type:</strong></td>
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  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0ELOAE">
      <tr>
        <th class="tl" colspan="1" rowspan="1">
          <div style="width: 200px;"><strong>Balance Sheets (USD $)<br></strong></div>
        </th>
        <th class="th">
          <div>Dec. 31, 2011</div>
        </th>
        <th class="th">
          <div>Dec. 31, 2010</div>
        </th>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_AssetsCurrentAbstract', window );"><strong>Current assets:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_CashAndCashEquivalentsAtCarryingValue', window );">Cash and cash equivalents</a></td>
        <td class="nump">$ 4,978<span></span></td>
        <td class="nump">$ 68,689<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_AccountsReceivableNetCurrent', window );">Accounts receivable</a></td>
        <td class="nump">7,195<span></span></td>
        <td class="nump">45,915<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_PrepaidExpenseAndOtherAssetsCurrent', window );">Prepaid expenses and other current assets</a></td>
        <td class="nump">1,100<span></span></td>
        <td class="nump">7,336<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_AssetsCurrent', window );">Total current assets</a></td>
        <td class="nump">13,273<span></span></td>
        <td class="nump">121,940<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_PropertyPlantAndEquipmentNet', window );">Property &amp; equipment less accumulated depreciation and depletion</a></td>
        <td class="nump">255,215<span></span></td>
        <td class="nump">255,215<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_OtherAssets', window );">Other assets</a></td>
        <td class="nump">58,442<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_Assets', window );">Total assets</a></td>
        <td class="nump">326,930<span></span></td>
        <td class="nump">377,155<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_LiabilitiesCurrentAbstract', window );"><strong>Current liabilities:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent', window );">Accounts payable and accrued liabilities</a></td>
        <td class="nump">11,487<span></span></td>
        <td class="nump">149,065<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent', window );">Notes payable - related party</a></td>
        <td class="nump">100,000<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_LiabilitiesCurrent', window );">Total current liabilities</a></td>
        <td class="nump">111,487<span></span></td>
        <td class="nump">149,065<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockholdersEquityAbstract', window );"><strong>Stockholders' equity:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_CommonStockValueOutstanding', window );">Common stock</a></td>
        <td class="nump">85,564<span></span></td>
        <td class="nump">83,069<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_AdditionalPaidInCapital', window );">Additional paid in capital</a></td>
        <td class="nump">14,136,432<span></span></td>
        <td class="nump">13,904,142<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_RetainedEarningsAccumulatedDeficit', window );">Accumulated deficit</a></td>
        <td class="num">(14,006,553)<span></span></td>
        <td class="num">(13,759,121)<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockholdersEquity', window );">Total stockholders' equity</a></td>
        <td class="nump">215,443<span></span></td>
        <td class="nump">228,090<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_LiabilitiesAndStockholdersEquity', window );">Total liabilities and stockholders' equity</a></td>
        <td class="nump">$ 326,930<span></span></td>
        <td class="nump">$ 377,155<span></span></td>
      </tr>
    </table>
    <div style="display: none;">
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Sum of the carrying values as of the balance sheet date of obligations incurred through that date and due within one year (or the operating cycle, if longer), including liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received, and other costs not separately disclosed in the balance sheet that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_AccountsPayableAndOtherAccruedLiabilitiesCurrent</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_AccountsReceivableNetCurrent">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 3<br><br> -Subparagraph a(1)<br><br> -Article 5<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 4<br><br> -Article 5<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.3-4)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_AccountsReceivableNetCurrent</nobr></td>
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                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
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                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
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                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
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                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
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              </div>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_AdditionalPaidInCapital">
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          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of additional paid-in capital associated with common and preferred stock. For additional paid-in capital associated with only common stock, use the element additional paid in capital, common stock. For additional paid-in capital associated with only preferred stock, use the element additional paid in capital, preferred stock.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 31<br><br> -Article 5<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.30(a)(1))<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_AdditionalPaidInCapital</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
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              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_Assets">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Article 7<br><br> -Section 03<br><br> -Paragraph 12<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br> -Section S99<br><br> -Name Accounting Standards Codification<br><br> -Publisher FASB<br><br> -Paragraph 1<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Concepts (CON)<br><br> -Number 6<br><br> -Paragraph 25<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 18<br><br> -Article 5<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.18)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_Assets</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_AssetsCurrent">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 3<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6361293&amp;loc=d3e6801-107765<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Section 45<br><br> -SubTopic 10<br><br> -Topic 210<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6361293&amp;loc=d3e6676-107765<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Paragraph 1<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 9<br><br> -Article 5<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.9)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 1<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6361293&amp;loc=d3e6676-107765<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_AssetsCurrent</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_AssetsCurrentAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_AssetsCurrentAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_CashAndCashEquivalentsAtCarryingValue">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.1)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 1<br><br> -Article 5<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 95<br><br> -Paragraph 7<br><br> -Footnote 1<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 230<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 4<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3044-108585<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 95<br><br> -Paragraph 8, 9<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 1<br><br> -Subparagraph (a)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6361293&amp;loc=d3e6676-107765<br><br><br><br>Reference 7: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Glossary Cash<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6506951<br><br><br><br>Reference 8: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 95<br><br> -Paragraph 7, 26<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 9: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Glossary Cash Equivalents<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6507016<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_CashAndCashEquivalentsAtCarryingValue</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_CommonStockValueOutstanding">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Value of all classes of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares exclude common shares repurchased by the entity and held as treasury shares.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 30<br><br> -Article 5<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.29)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_CommonStockValueOutstanding</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_LiabilitiesAndStockholdersEquity">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 32<br><br> -Article 5<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.32)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Article 7<br><br> -Section 03<br><br> -Paragraph 25<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_LiabilitiesAndStockholdersEquity</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_LiabilitiesCurrent">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 21<br><br> -Article 5<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.21)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_LiabilitiesCurrent</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>instant</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_LiabilitiesCurrentAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_LiabilitiesCurrentAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NotesPayableRelatedPartiesCurrentAndNoncurrent">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The amount for notes payable (written promise to pay), due to related parties.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
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                <p>The aggregate carrying amounts, as of the balance sheet date, of assets not separately disclosed in the balance sheet.</p>
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                <p>The total of the amounts paid in advance for capitalized costs that will be expensed with the passage of time or the occurrence of a triggering event, and will be charged against earnings within one year or the normal operating cycle, if longer, and the aggregate carrying amount of current assets, as of the balance sheet date, not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer).</p>
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                <p>Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.</p>
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                <p>The cumulative amount of the reporting entity's undistributed earnings or deficit.</p>
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                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.31(a)(3))<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher AICPA<br><br> -Name Accounting Principles Board Opinion (APB)<br><br> -Number 12<br><br> -Paragraph 10<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 02<br><br> -Paragraph 31<br><br> -Article 5<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 04<br><br> -Article 3<br><br><br><br></p>
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                <p>Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.</p>
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  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0ELE">
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          <div style="width: 200px;"><strong>Basis of Presentation and Significant Accounting Policies<br></strong></div>
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          <div>Dec. 31, 2011</div>
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">EMPIRE PETROLEUM CORPORATION</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">NOTES TO FINANCIAL STATEMENTS</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">DECEMBER 31, 2011 and 2010</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 20, 2001, Americomm Resources Corporation
merged with its wholly-owned subsidiary, Empire Petroleum Corporation, and simultaneously changed the name of the corporation to
Empire Petroleum Corporation (the &#34;Company&#34;). Both the merger and name change were effective as of August 15, 2001. Americomm
Resources Corporation was originally incorporated in the State of Utah on the 22nd day of August 1983, as Chambers Energy Corporation.
On the 7th day of March 1985, the state of incorporation was changed to Delaware by means of a merger with Americomm Corporation,
a Delaware corporation formed for the purpose of effecting the said change. In July 1995, the Company changed its name to Americomm
Resources Corporation.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">1. Continuing operations:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The ultimate recoverability of the Company's
investment in its oil and gas interests is dependent upon the existence and discovery of economically recoverable oil and gas reserves,
the ability of the Company to obtain necessary financing to further develop the interests, and upon the ability to attain future
profitable production. The Company has been incurring significant losses in recent years.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Virtually all of the Company's assets are invested
in the Gabbs Valley and South Okie Prospects, both of which are unproven, that is, they have not been evaluated as being capable
of producing economical quantities of reserves. The Company acquired additional leasehold interests in and drilled a test well
on its Gabbs Valley Prospect in 2006. Completion of the test well was suspended pending evaluation of the geologic information
and the securing of additional capital to continue the evaluation and possibly to complete the well. The Company drilled a test
well on the Prospect in 2010 which recovered oil, however the oil contained paraffin which prevented it from producing at economic
rates. The Company continues to believe that the Prospect contains economical reserve quantities and is actively conducting additional
studies and will be pursuing potential funding and/or partners to continue evaluation and exploration.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company plans to supplement current studies
of the South Okie Prospect with a seismograph evaluation to verify the potential of the prospect. The Company has acquired 11 miles
of seismic and studies of this data were completed in early January 2010 and an additional geological study was also completed
in early January 2010.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The continuation of the Company is dependent
upon the ability of the Company to attain future profitable operations. These financial statements have been prepared on the basis
of United States generally accepted accounting principles applicable to a company with continuing operations, which assume that
the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its obligations
in the normal course of operations. Management believes the going concern assumption to be appropriate for these financial statements.
If the going concern assumption were not appropriate for these financial statements, then adjustments might be necessary to the
carrying value of assets and liabilities, reported expenses and the balance sheet classifications used.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">2. Significant accounting policies:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity
with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(a) Capital assets:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company uses the successful efforts method
of accounting for its oil and gas activities. Costs incurred are deferred until exploration and completion results are evaluated.
At such time, costs of activities with economically recoverable reserves are capitalized as proven properties, and costs of unsuccessful
or uneconomical activities are expensed.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Capitalized drilling costs are reviewed periodically
for impairment. Costs related to impaired prospects or unsuccessful exploratory drilling are charged to expense. Management's assessment
of the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such
leaseholds impact the amount and timing of impairment provisions. An impairment expense could result if oil and gas prices decline
in the future as it may not be economical to develop some of these unproved properties.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(b) Per share amounts:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company calculates and discloses basic earnings
per share (&#34;Basic EPS&#34;) and diluted earnings per share (&#34;Diluted EPS&#34;). The computation of basic earnings per
share is computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares
during the period.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Diluted EPS gives effect to all dilutive potential
common shares outstanding during the period. The computation of diluted EPS does not assume conversion, exercise or contingent
exercise of securities that would have an anti-dilutive effect on losses. As a result, if there is a loss from continuing operations,
Diluted EPS is computed in the same manner as Basic EPS is computed. At December 31, 2011 the Company had 1,245,000 options outstanding
that were not included in the calculation of diluted earnings per share. Such financial instruments may become dilutive and would
then need to be included in future calculations of Diluted EPS.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(c) Income taxes:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes in accordance
with the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets
and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income in the years in which
those temporary differences are expected to be recovered or settled. A valuation allowance is established if management determines
it is more likely than not that some portion of a deferred tax asset will not be realized.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(d) Financial instruments:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The carrying value of current assets and current
liabilities approximate their fair value due to the relatively short period to maturity of the instruments.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(e) Stock option plan:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses options granted over the
vesting period based on the grant date fair value of the award.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(f) Obligations associated with the retirement
of assets:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows Financial Accounting Standards
Board (&#147;FASB&#148;) guidance on accounting for asset retirement obligations, which among other matters, addresses financial
accounting and reporting for legal obligations associated with the retirement of tangible long-lived assets and the associated
asset retirement costs. This guidance requires that the fair value of a liability for an asset retirement obligation be recognized
in the period in which it is incurred, with the associated asset retirement cost capitalized as part of the related asset and allocated
to expense over the asset's useful life. The Company applies its analysis to producing wells. The Company accrued $0 and $0, respectively
at December 31, 2011 and 2010 as an asset retirement obligation for wells in Nevada, which was recorded as an expense since the
well costs have been fully impaired.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(g) Recent Accounting Pronouncements:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The FASB periodically issues new accounting
standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently
issued pronouncements and concluded that the following new accounting standards are applicable:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="margin: 0">In June 2011, the FASB issued Accounting Standards Update 2011-05, <i>Presentation of Comprehensive Income.
</i>This Update amended the provisions of FASB ASC 220-10 by eliminating the option of reporting other comprehensive income in
the statement of changes in stockholders&#146; equity.&#160;&#160;Companies will have the option of presenting net income and
other comprehensive income in a single, continuous statement of comprehensive income or presenting two separate but consecutive
statements of net income and comprehensive income.&#160;&#160;The new presentation requirements are effective for interim and annual
periods beginning after December 15, 2011.&#160;&#160;Therefore, this new presentation will first be reflected in the Company&#146;s
March 31, 2012 consolidated financial statements.</p>


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          <div style="width: 200px;"><strong>Property Plant and Equipment<br></strong></div>
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        <th class="th" colspan="1">12 Months Ended</th>
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          <div>Dec. 31, 2011</div>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_EMPR_NotesToFinancialStatementsAbstract', window );"><strong>Notes to Financial Statements</strong></a></td>
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<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">3. Property and equipment:</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2003, the Company acquired a 10% interest
in the Gabbs Valley Prospect of Western Nevada by issuing 2,000,000 shares of Company stock. The Company has recorded its investment
at $200,000. In 2005, the Company conducted a seismic survey of the Gabbs Valley Prospect. Based on the results of the seismic
survey, during 2006, the Company entered into an agreement to increase its working interest in the prospect to 40% by paying $675,000
plus 55% of the drilling costs through completion. The Company contracted a drilling rig, which commenced drilling the Empire Cobble
Cuesta 1-12-12N-34E, Nye County, Nevada in September 2006. After reaching a depth of 5,195 feet the Company ceased drilling operations,
ran electronic logs, installed a wellhead, and</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">conditioned the hole so that it might be re-entered
or deepened at a later date. In April 2007, the Company re-entered the well and based on the results of drill stem tests, determined
that the formation was very sensitive to the mud and water used in drilling the test well, causing clogs in the formation to swell
which prevented any oil which might be present to flow into the well bore. The total gross acres of this prospect was increased
to 92,826 acres by the acquisition of 30,917 acres from the U.S. Department of Interior in June 2006, at a cost of $36,689, the
acquisition of 9,943.91 acres in September 2008, at a cost of $13,025 and the acquisition of 7,680 acres in September 2009, at
a cost of $12,615. The Company increased its interest to 57% in the prospect leases in 2007 when one of the joint participants
elected to surrender its 30% interest. The Company and the remaining joint owners assumed liabilities of approximately $68,000
to acquire the interest.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2010, the Company drilled a test well in
the Paradise Unit of the Gabbs Valley Prospect to a depth of 4,250 feet. The well produced small amounts of oil containing paraffin
which may have restricted oil flow. A co-owner of the lease elected to take over the lease and well, including remediation of the
site, as of December 31, 2010 the Company had expensed $2,255,493 of intangible drilling costs related to the Paradise Unit test
well. Also in 2010, the Company sold a 7% working interest in the Gabbs Valley Prospect for $700,000. In December 2011, the Company
acquired leases on 3,840 acres of undeveloped land in Nye County, Nevada, which are a part of the Gabbs Valley Prospect. As of
December 31, 2011, the Gabbs Valley Prospect consisted of approximately 34,186 gross acres of federal leases located in Nye County,
Nevada, of which the Company owns a 50% working interest in 30,346 gross acres and an 88.5% in 3,840 gross acres.</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company's other property and equipment,
totaling $2,561 at December 31, 2011, consists entirely of office furniture, fixtures and equipment, which are fully depreciated.</p>


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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
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                  <tr>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 205<br><br> -SubTopic 20<br><br> -Section 50<br><br> -Paragraph 1<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6360339&amp;loc=d3e1361-107760<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 210<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.5-02.13-14)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher AICPA<br><br> -Name Accounting Principles Board Opinion (APB)<br><br> -Number 12<br><br> -Paragraph 5<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 360<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 1<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6391035&amp;loc=d3e2868-110229<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 360<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 2<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6391110&amp;loc=d3e2921-110230<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
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                    <td><strong> Name:</strong></td>
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  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0EKKAE">
      <tr>
        <th class="tl" colspan="1" rowspan="2">
          <div style="width: 200px;"><strong>Statements of Operations (USD $)<br></strong></div>
        </th>
        <th class="th" colspan="2">12 Months Ended</th>
      </tr>
      <tr>
        <th class="th">
          <div>Dec. 31, 2011</div>
        </th>
        <th class="th">
          <div>Dec. 31, 2010</div>
        </th>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_RevenueMineralSalesAbstract', window );"><strong>Revenue:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
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        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_ExplorationAbandonmentAndImpairmentExpense', window );">Well abandonment expense</a></td>
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        <td class="nump">2,221,293<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_OilAndGasProductionExpense', window );">Production &amp; operating</a></td>
        <td class="nump">22,060<span></span></td>
        <td class="nump">178,174<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_GeneralAndAdministrativeExpense', window );">General &amp; administrative</a></td>
        <td class="nump">222,133<span></span></td>
        <td class="nump">231,996<span></span></td>
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      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_CostsAndExpenses', window );">Total costs and expenses</a></td>
        <td class="nump">244,193<span></span></td>
        <td class="nump">2,631,463<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_OperatingIncomeLoss', window );">Operating loss</a></td>
        <td class="num">(244,193)<span></span></td>
        <td class="num">(2,631,463)<span></span></td>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_OtherIncomeAndExpensesAbstract', window );"><strong>Other income and (expense):</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_InterestIncomeDepositsWithFinancialInstitutions', window );">Interest income</a></td>
        <td class="nump">11<span></span></td>
        <td class="nump">3,561<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_InterestExpenseDebt', window );">Interest expense</a></td>
        <td class="num">(3,250)<span></span></td>
        <td class="nump">0<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_InterestIncomeExpenseNet', window );">Total other income (expense)</a></td>
        <td class="num">(3,239)<span></span></td>
        <td class="nump">3,561<span></span></td>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetIncomeLoss', window );">Net income (loss)</a></td>
        <td class="num">$ (247,432)<span></span></td>
        <td class="num">$ (2,627,902)<span></span></td>
      </tr>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_EarningsPerShareBasicAndDiluted', window );">Net income (loss) per common share, basic and diluted</a></td>
        <td class="nump">$ 0.00<span></span></td>
        <td class="num">$ (0.03)<span></span></td>
      </tr>
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        <td class="nump">84,163,193<span></span></td>
        <td class="nump">80,487,318<span></span></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Total costs of sales and operating expenses for the period.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 225<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SX 210.5-03)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
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                  <tr>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The amount of net income or loss for the period per each share in instances when basic and diluted earnings per share are the same amount and reported as a single line item on the face of the financial statements.  Basic earnings per share is the amount of net income or loss for the period per each share of common stock or unit outstanding during the reporting period.  Diluted earnings per share includes the amount of net income or loss for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
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                    <td><strong> Name:</strong></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The adjustment to expense previously capitalized costs of drilling exploratory wells when proved reserves are not found or when the entity obtains information that raises substantial doubt about the economic or operational viability of the project.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 360<br><br> -Section 40<br><br> -Paragraph 3<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475089&amp;loc=d3e66625-109467<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 360<br><br> -Section 40<br><br> -Paragraph 2<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475089&amp;loc=d3e66610-109467<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 19<br><br> -Paragraph 27, 28, 40, 41<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 360<br><br> -Section 40<br><br> -Paragraph 1<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475089&amp;loc=d3e66584-109467<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 230<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 28<br><br> -Subparagraph (b)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 360<br><br> -Section 35<br><br> -Paragraph 11<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475018&amp;loc=d3e66150-109466<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 225<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SX 210.5-03.4)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br></p>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Article 5<br><br> -Section 03<br><br> -Paragraph 8<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 34<br><br> -Paragraph 21<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 225<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SX 210.5-03.8)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_InterestExpenseDebt</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_InterestIncomeDepositsWithFinancialInstitutions">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Interest income derived from funds deposited with both domestic and foreign financial institutions including funds in money market and other accounts.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 04<br><br> -Paragraph 4<br><br> -Article 9<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 942<br><br> -SubTopic 225<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.9-04.4)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6879574&amp;loc=d3e536633-122882<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_InterestIncomeDepositsWithFinancialInstitutions</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
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                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
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                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_InterestIncomeExpenseNet">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The net amount of operating interest income (expense).</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 04<br><br> -Paragraph 10<br><br> -Article 9<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 942<br><br> -SubTopic 225<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.9-04.10)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6879574&amp;loc=d3e536633-122882<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_InterestIncomeExpenseNet</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NetIncomeLoss">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 944<br><br> -SubTopic 225<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.7-04.22)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6879464&amp;loc=d3e573970-122913<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 230<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 28<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 225<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SX 210.5-03.18)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher AICPA<br><br> -Name Accounting Research Bulletin (ARB)<br><br> -Number 51<br><br> -Paragraph 38<br><br> -Subparagraph a<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 260<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 1<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6371337&amp;loc=d3e3550-109257<br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 220<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 6<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6920043&amp;loc=d3e565-108580<br><br><br><br>Reference 7: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher AICPA<br><br> -Name Accounting Research Bulletin (ARB)<br><br> -Number 51<br><br> -Paragraph A7<br><br> -Appendix A<br><br><br><br>Reference 8: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 130<br><br> -Paragraph 10, 15<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 9: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Glossary Other Comprehensive Income<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6519514<br><br><br><br>Reference 10: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher AICPA<br><br> -Name Accounting Research Bulletin (ARB)<br><br> -Number 51<br><br> -Paragraph 38<br><br> -Subparagraph d<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 11: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Emerging Issues Task Force (EITF)<br><br> -Number 87-21<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 12: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Glossary Net Income<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6518256<br><br><br><br>Reference 13: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 944<br><br> -SubTopic 225<br><br> -Section S99<br><br> -Paragraph 1<br><br> -Subparagraph (SX 210.7-04.19)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6879464&amp;loc=d3e573970-122913<br><br><br><br>Reference 14: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Article 5<br><br> -Section 03<br><br> -Paragraph 19<br><br><br><br>Reference 15: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 95<br><br> -Paragraph 28, 29, 30<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 16: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation S-X (SX)<br><br> -Number 210<br><br> -Section 04<br><br> -Paragraph 20<br><br> -Article 9<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_NetIncomeLoss</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_OilAndGasProductionExpense">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Costs incurred to operate and maintain an entities' wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 235<br><br> -Section 50<br><br> -Paragraph 23<br><br> -Subparagraph (b)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6821537&amp;loc=d3e62136-109447<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 19<br><br> -Paragraph 24<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 225<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SX 210.5-03.2)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 360<br><br> -Section 25<br><br> -Paragraph 15<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6474861&amp;loc=d3e65139-109465<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_OilAndGasProductionExpense</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_OilAndGasSalesRevenue">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Revenue from the sale of oil and gas during the period.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 225<br><br> -SubTopic 10<br><br> -Section S99<br><br> -Paragraph 2<br><br> -Subparagraph (SX 210.5-03.1)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 235<br><br> -Section 50<br><br> -Paragraph 23<br><br> -Subparagraph (a)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6821537&amp;loc=d3e62136-109447<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 932<br><br> -SubTopic 235<br><br> -Section 50<br><br> -Paragraph 24<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6821537&amp;loc=d3e62246-109447<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_OilAndGasSalesRevenue</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_OperatingIncomeLoss">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The net result for the period of deducting operating expenses from operating revenues.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_OperatingIncomeLoss</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
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                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
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                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_OtherIncomeAndExpensesAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_OtherIncomeAndExpensesAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_RevenueMineralSalesAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_RevenueMineralSalesAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 260<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 16<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6920599&amp;loc=d3e1505-109256<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Emerging Issues Task Force (EITF)<br><br> -Number 07-4<br><br> -Paragraph 4<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 128<br><br> -Paragraph 40<br><br> -Subparagraph a<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 128<br><br> -Paragraph 8<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 260<br><br> -SubTopic 10<br><br> -Section 50<br><br> -Paragraph 1<br><br> -Subparagraph (a)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6371337&amp;loc=d3e3550-109257<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:sharesItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
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  <head>
    <META http-equiv="Content-Type" content="text/html; charset=us-ascii">
    <link rel="StyleSheet" type="text/css" href="report.css"><script type="text/javascript" src="Show.js">/* Do Not Remove This Comment */</script></head>
  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0EWPAC">
      <tr>
        <th class="tl" colspan="1" rowspan="2">
          <div style="width: 200px;"><strong>Document and Entity Information (USD $)<br></strong></div>
        </th>
        <th class="th" colspan="1">12 Months Ended</th>
      </tr>
      <tr>
        <th class="th">
          <div>Dec. 31, 2011</div>
        </th>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_EMPR_DocumentAndEntityInformationAbstract', window );"><strong>Document And Entity Information</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityRegistrantName', window );">Entity Registrant Name</a></td>
        <td class="text">Empire Petroleum Corporation<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityCentralIndexKey', window );">Entity Central Index Key</a></td>
        <td class="text">0000887396<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_DocumentType', window );">Document Type</a></td>
        <td class="text">10-K<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_DocumentPeriodEndDate', window );">Document Period End Date</a></td>
        <td class="text">Dec. 31,
         2011<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_AmendmentFlag', window );">Amendment Flag</a></td>
        <td class="text">false<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_CurrentFiscalYearEndDate', window );">Current Fiscal Year End Date</a></td>
        <td class="text">--12-31<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityWellKnownSeasonedIssuer', window );">Is Entity a Well-known Seasoned Issuer?</a></td>
        <td class="text">No<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityVoluntaryFilers', window );">Is Entity a Voluntary Filer?</a></td>
        <td class="text">No<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityCurrentReportingStatus', window );">Is Entity's Reporting Status Current?</a></td>
        <td class="text">No<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityFilerCategory', window );">Entity Filer Category</a></td>
        <td class="text">Smaller Reporting Company<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityPublicFloat', window );">Entity Public Float</a></td>
        <td class="nump">$ 86,809,235<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_EntityCommonStockSharesOutstanding', window );">Entity Common Stock, Shares Outstanding</a></td>
        <td class="nump">85,564,235<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_DocumentFiscalPeriodFocus', window );">Document Fiscal Period Focus</a></td>
        <td class="text">FY<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_dei_DocumentFiscalYearFocus', window );">Document Fiscal Year Focus</a></td>
        <td class="text">2011<span></span></td>
      </tr>
    </table>
    <div style="display: none;">
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_AmendmentFlag">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>If the value is true, then the document as an amendment to previously-filed/accepted document.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_AmendmentFlag</nobr></td>
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                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
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                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:booleanItemType</td>
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                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
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                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
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              </div>
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          </td>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_CurrentFiscalYearEndDate">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>End date of current fiscal year in the format --MM-DD.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_CurrentFiscalYearEndDate</nobr></td>
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                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
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                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:gMonthDayItemType</td>
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                  <tr>
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                    <td>na</td>
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                    <td>duration</td>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_DocumentFiscalPeriodFocus">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_DocumentFiscalPeriodFocus</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>dei:fiscalPeriodItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
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                </table>
              </div>
            </div>
          </td>
        </tr>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_DocumentFiscalYearFocus">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_DocumentFiscalYearFocus</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:gYearItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_DocumentPeriodEndDate">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented.  If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_DocumentPeriodEndDate</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:dateItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_DocumentType">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type is limited to the same value as the supporting SEC submission type, minus any "/A" suffix. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, 497, NCSR, N-CSR, N-CSRS, N-Q, 10-KT, 10-QT, 20-FT, POS AM and Other.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_DocumentType</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>dei:submissionTypeItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_EntityCentralIndexKey">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation 12B<br><br> -Number 240<br><br> -Section 12b<br><br> -Subsection 1<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityCentralIndexKey</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>dei:centralIndexKeyItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_EntityCommonStockSharesOutstanding">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityCommonStockSharesOutstanding</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:sharesItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
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          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityCurrentReportingStatus</nobr></td>
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          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
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                    <td><nobr>dei_EntityFilerCategory</nobr></td>
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                    <td>na</td>
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                    <td>duration</td>
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          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityPublicFloat</nobr></td>
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                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>dei_</td>
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                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher SEC<br><br> -Name Regulation 12B<br><br> -Number 240<br><br> -Section 12b<br><br> -Subsection 1<br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityRegistrantName</nobr></td>
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                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
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                    <td>duration</td>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_dei_EntityVoluntaryFilers">
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          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityVoluntaryFilers</nobr></td>
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                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
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                    <td>dei:yesNoItemType</td>
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                    <td>na</td>
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                    <td>duration</td>
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          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>dei_EntityWellKnownSeasonedIssuer</nobr></td>
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                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
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                    <td>dei:yesNoItemType</td>
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                    <td><strong> Balance Type:</strong></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>EMPR_DocumentAndEntityInformationAbstract</nobr></td>
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<DOCUMENT>
<TYPE>XML
<SEQUENCE>23
<FILENAME>R4.htm
<DESCRIPTION>IDEA: XBRL DOCUMENT
<TEXT>
<html>
  <head>
    <META http-equiv="Content-Type" content="text/html; charset=us-ascii">
    <link rel="StyleSheet" type="text/css" href="report.css"><script type="text/javascript" src="Show.js">/* Do Not Remove This Comment */</script></head>
  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0ER5AE">
      <tr>
        <th class="tl" colspan="1" rowspan="2">
          <div style="width: 200px;"><strong>Statements of Cash Flows (USD $)<br></strong></div>
        </th>
        <th class="th" colspan="2">12 Months Ended</th>
      </tr>
      <tr>
        <th class="th">
          <div>Dec. 31, 2011</div>
        </th>
        <th class="th">
          <div>Dec. 31, 2010</div>
        </th>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_OperatingCashFlowsDirectMethodAbstract', window );"><strong>Cash flows from operating activities:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncomeLossFromContinuingOperations', window );">Net loss</a></td>
        <td class="num">$ (247,432)<span></span></td>
        <td class="num">$ (2,627,902)<span></span></td>
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      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract', window );"><strong>Adj to reconcile net loss to net cash used in operating activities:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInAccruedSalaries', window );">Value of services contributed by employee</a></td>
        <td class="nump">50,000<span></span></td>
        <td class="nump">50,000<span></span></td>
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      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockOptionPlanExpense', window );">Stock incentive plan expense</a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="nump">11,295<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_ExplorationAbandonmentAndImpairmentExpense', window );">Well abandonment expense</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">2,221,293<span></span></td>
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      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract', window );"><strong>Change in operating assets and liabilities:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInAccountsReceivable', window );">Accounts receivable</a></td>
        <td class="num">(19,722)<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInPrepaidExpense', window );">Prepaid expenses</a></td>
        <td class="nump">6,236<span></span></td>
        <td class="num">(7,336)<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities', window );">Accounts payable and accrued liabilities</a></td>
        <td class="num">(64,088)<span></span></td>
        <td class="nump">138,482<span></span></td>
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      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetCashProvidedByUsedInOperatingActivities', window );">Net cash used in operating activities</a></td>
        <td class="num">(263,711)<span></span></td>
        <td class="num">(197,383)<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract', window );"><strong>Cash flow from investing activities:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets', window );">Sale of working interest</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">700,000<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_PaymentsToAcquireAndDevelopRealEstate', window );">Acquisition of lease acres</a></td>
        <td class="nump">0<span></span></td>
        <td class="num">(35,000)<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_ExplorationExpense', window );">Well equipment and drilling costs</a></td>
        <td class="nump">0<span></span></td>
        <td class="num">(2,255,493)<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetCashProvidedByUsedInContinuingOperations', window );">Net cash provided by (used in) investing activities</a></td>
        <td class="nump">0<span></span></td>
        <td class="num">(1,590,493)<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract', window );"><strong>Cash flows from financing activities:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_PaymentsForProceedsFromInvestments', window );">Proceeds from private equity placement</a></td>
        <td class="nump">100,000<span></span></td>
        <td class="nump">685,000<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_ProceedsFromNotesPayable', window );">Proceeds from related party, note payable</a></td>
        <td class="nump">100,000<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetCashProvidedByUsedInFinancingActivities', window );">Net cas provided by Financing Activities</a></td>
        <td class="nump">200,000<span></span></td>
        <td class="nump">685,000<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease', window );">Net increase (decrease) in cash</a></td>
        <td class="num">(63,711)<span></span></td>
        <td class="num">(1,102,876)<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_CashPeriodIncreaseDecrease', window );">Cash - Beginning of period</a></td>
        <td class="nump">68,689<span></span></td>
        <td class="nump">1,171,565<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_ProfitLoss', window );">Cash - End of period</a></td>
        <td class="nump">$ 4,978<span></span></td>
        <td class="nump">$ 68,689<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract', window );"><strong>Supplemental Disclosure for Non Cash Items:</strong></a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockholdersEquityNoteDisclosureTextBlock', window );">Common Stock issued for accounts payable</a></td>
        <td class="text"><p style="margin: 0pt"></p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">4. Capital Stock:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2005, the Company raised $500,000 of net

proceeds by selling 5,000,000 shares of newly issued common stock along with warrants to purchase 1,250,000 shares of common stock

which, subject to certain restrictions, could have been exercised for a period of one year at an exercise price of $0.25. Proceeds

of the original placement were allocated $67,875 to common stock warrants and</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">$432,125 to common stock and paid in capital.

In 2006, the warrants were extended twice; the extensions reduced the value of the warrants to $18,250. The value assigned to the

warrants was determined using the Black-Scholes option valuation method with the following assumptions: no dividend yield, expected

volatility of 154%, risk free interest rate of 3.28% and expected life of one year. Assumptions used for the extensions were: no

dividend yield, expected volatility of 153%, risk free interest rate of 4.86% and</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">expected life of 6 months. The warrants expired

on November 15, 2010 with none being exercised.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2006, the Company raised $1,450,000 of net

proceeds by selling 7,250,000 shares of newly issued stock along with warrants to purchase 1,812,500 shares of common stock, which,

subject to certain restrictions, could have been exercised on or before March 15, 2009 subsequently extended to November 15, 2010

at an exercise price of $0.50. Proceeds of the placement were allocated $144,675 to common stock warrants and $1,305,325 to common

stock and paid in capital. The value assigned to the warrants was determined using the Black-Scholes option valuation method with

the following assumptions: no dividend yield, expected volatility of 148% risk-free interest rate of 5.09% and an expected life

of one year. The warrants expired November 15, 2010 with none being exercised.</p>



<p style="font: 10pt Courier New, Courier, Monospace; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2007, the Company raised $1,000,000 of net

proceeds by selling 5,000,000 shares of newly issued stock, along with warrants to purchase 1,250,000 shares of common stock, which

subject to certain restrictions, could have been exercised until March 15, 2009 (subsequently extended to November 15, 2010 at

an exercise price of $0.50 per share. Proceeds of the placement</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">were allocated $80,000 to common stock warrants

and $920,000 to common stock and paid in capital. The value assigned to the warrants was determined by using the Black-Scholes

option valuation methods with the following assumptions: no dividend yield, expected volatility of 136%, risk free interest rate

of 4.94%, and an expected useful life of one year. The warrants expired November 15, 2010 with none being exercised.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2009, the Company raised $1,215,216 of net

proceeds by selling 17,360,233 shares of newly issued common stock. Proceeds were utilized for the Company's share of costs to

drill a new well on the Gabbs Valley Prospect (See Note 1).</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2010, the Company raised $685,000 of net

proceeds by selling 8,515,874 shares of newly issued stock, along with warrants to purchase 2,222,226 shares of Common Stock which,

subject to certain restrictions, could have been exercised until June 16, 2011 at an exercise price of $0.50 per share. Proceeds

of the placements were allocated $101,250 to Common Stock Warrants and $583,750 to Common Stock and paid in capital. The value

assigned to the warrants was determined by using the Black-Scholes option valuation methods with the following assumptions: no

dividend yield, expected volatility of 155%, risk free interest rate of .3% and an expected useful life of one year. The warrants

expired in 2011 with none being exercised.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2011, the Company issued 2,000,000

shares of its common stock to Albert E. Whitehead, its Chief Executive Officer, for a purchase price of $0.05 per share, which

resulted in a total investment of $100,000.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">5. Stock options:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under a stock option plan adopted in 1995, the

Company had the discretion to grant options for up to 1,600,000 shares of common stock until May 15, 2005, at which time the plan

terminated except to the extent necessary to govern outstanding options. Stock options granted under the plan vest on grant date

and expire ten years from the date of grant plus 30 days. The exercise price of the options is the fair market value on the date

of grant.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the Company's 2006 Annual Meeting of Stockholders,

the stockholders approved the 2006 Stock Incentive Plan (the &#34;Plan&#34;). The Plan permits the issuance of stock options,

restricted stock awards, and performance shares to employees, officers, directors, and consultants of the Company. Initially, and

until such time as the Board creates a Compensation Committee, the Board of Directors will administer the Plan. The total number

of shares of common stock that may be issued pursuant to awards under the Plan is 5,000,000. Under the Plan, no participant may

receive awards of stock options that cover in the aggregate more than 500,000 shares of common stock in any fiscal year. Unless

terminated by the Board, or upon the granting of awards covering all of the shares subject to the Plan, the Plan shall terminate

on June 5, 2016.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses the cost of options granted

over the vesting period of the option based on the grant-date fair value of the award. No options were granted in 2009. For the

year ended December 31, 2011 and 2010, the Company recognized an expense of $11,295 and $28,080, respectively, related to options

granted under the Plan.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Fair values were estimated at the date of grants

of the options, using the Black-Scholes option valuation model with the following weighted average assumptions: risk-free interest

rate of 3.65% and 2.77%, volatility factor of the expected market price of the Company's common stock of 172% and 142%, no dividend

yield on the Company's common stock, and a weighted average expected</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">life of the options of 5 years. The Black-Scholes

option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions

and are fully transferable. For purposes of determining the expected life of the options, the Company utilizes the Simplified Method

as defined in Staff Accounting Bulletin No. 107 issued by the Securities and Exchange Commission.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition options valuation models require

the input of highly subjective assumptions including stock price volatility.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2011, there was no unrecognized

compensation expense related to nonvested share-based compensation arrangements under the Plan.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the Company's Incentive Plan as

of December 31, 2011 and changes during the year is presented below:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="width: 59%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 18%; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted Average</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: bold 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise Price</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at Beginning of Year 2010</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

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    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.162</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Granted</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">120,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.25</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cancelled or Exercised</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">95,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.44</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at End of Year 2010</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,095,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.148</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Granted</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">150,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.10</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Cancelled or Exercised</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">0</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.00</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Outstanding at End of Year 2011</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,245,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

</table>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes information about

stock options outstanding at December 2011:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" colspan="2" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options Outstanding</td>

    <td nowrap="nowrap" colspan="3" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Options Exercisable</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 16%; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</td>

    <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Weighted</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Range of</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Remaining</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Average</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Outstanding</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Contractual</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercisable</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Exercise</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Prices</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">at 12/31/11</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Life</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Price</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">at 12/31/11</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Price</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.10 - $0.26</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5.86 Years</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,245,000</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$0.142</td></tr>

</table>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">6. Income taxes:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes differs from

the amount obtained by applying the Federal income tax rate of 34% to income before income taxes. The difference relates to the

following items:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</td>

    <td nowrap="nowrap" style="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="width: 27%; border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Statutory tax rate</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">34%</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">34%</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Expected tax benefit</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (85,000)</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (890,000)</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Benefit of losses not recognized</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

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    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

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<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Tax provision (benefit) as reported</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" colspan="5" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">The components of deferred income taxes at December 31, 2011 are as follows:</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2011</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2010</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Deferred tax assets:</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Loss carry-forwards</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,300,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 2,650,000</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Valuation allowance</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;(2,015,000)</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(2,125,000)</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">285,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 525,000</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Deferred tax liabilities:</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Property and equipment</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;285,000</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">525,000</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">Net deferred taxes</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="border-bottom: windowtext 1pt solid; font: 9pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; -</td></tr>

<tr style="vertical-align: bottom">

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td>

    <td nowrap="nowrap" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr>

</table>

<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2011, the Company had net operating

loss carryforwards of approximately $7,850,000 which expire beginning in 2012.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Utilization of the Company's loss carryforwards

is dependent on realizing taxable income. Deferred tax assets for these carryforwards have been reduced by a valuation allowance

up to an amount equal to estimated deferred tax liability.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is no longer subject to income tax

examinations by tax authorities for years before 2007. The Company is not currently the subject of any income tax examinations

by any tax authorities.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based upon a review of its income tax filing

positions, the Company believes that its positions would be sustained upon an audit and does not anticipate any adjustments that

would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been

recorded. The Company recognizes interest related to income taxes as interest expense and penalties as operating expenses.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">7. Oil Sale Revenue:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company currently records revenue from petroleum

sales when received from the operator of the well. Oil Sale Revenue is reported net of working interest and overriding royalty

amounts due. Prior to 2006, the Company was responsible for distributing allocable portions of oil sale revenue to working interest

and royalty owners for production in the Cheyenne River Prospect. Accordingly, a liability for estimated royalty payments was recorded

when oil sale proceeds were received since a division order had not been completed, certain amounts were credited to royalties

payable until the division order issue was resolved.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">8. Operating lease:</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company leases office space under an operating

lease agreement with an unrelated party which expires in June 2012. Monthly lease payments are $1,100.</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>



<p style="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Rent expense for each of the years ended December

31, 2011 and 2010 was $13,200 and $12,649, respectively.</p>





<p style="margin: 0pt"></p><span></span></td>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 26<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 24<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3521-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_CashPeriodIncreaseDecrease">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) in cash, excluding cash equivalents, for an entity that has cash equivalents, but does not aggregate cash equivalents with cash on the balance sheet. For example, an entity that aggregates cash equivalents with investments discloses the balance of cash excluding cash equivalents on the balance sheet and the change in cash excluding cash equivalents on the statement of cash flows. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_CashPeriodIncreaseDecrease</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_ExplorationAbandonmentAndImpairmentExpense">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The adjustment to expense previously capitalized costs of drilling exploratory wells when proved reserves are not found or when the entity obtains information that raises substantial doubt about the economic or operational viability of the project.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 932<br><br><br><br> -SubTopic 360<br><br><br><br> -Section 40<br><br><br><br> -Paragraph 3<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475089&amp;loc=d3e66625-109467<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 932<br><br><br><br> -SubTopic 360<br><br><br><br> -Section 40<br><br><br><br> -Paragraph 2<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475089&amp;loc=d3e66610-109467<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 19<br><br><br><br> -Paragraph 27, 28, 40, 41<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 932<br><br><br><br> -SubTopic 360<br><br><br><br> -Section 40<br><br><br><br> -Paragraph 1<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475089&amp;loc=d3e66584-109467<br><br><br><br><br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -Subparagraph (b)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 932<br><br><br><br> -SubTopic 360<br><br><br><br> -Section 35<br><br><br><br> -Paragraph 11<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6475018&amp;loc=d3e66150-109466<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_ExplorationAbandonmentAndImpairmentExpense</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_ExplorationExpense">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Exploration expenses (including prospecting) related to oil and gas producing entities and would be included in operating expenses of that entity. Costs incurred in identifying areas that may warrant examination and in examining specific areas that are considered to have prospects of containing oil and gas reserves, including costs of drilling exploratory wells and exploratory-type stratigraphic test wells. Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as prospecting costs) and after acquiring the property. Principal types of exploration costs, which include depreciation and applicable operating costs of support equipment and facilities and other costs of exploration activities, are: (i) Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&amp;G" costs. (ii) Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, and the maintenance of land and lease records. (iii) Dry hole contributions and bottom hole contributions. (iv) Costs of drilling and equipping exploratory wells. (v) Costs of drilling exploratory-type stratigraphic test wells.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 932<br><br><br><br> -SubTopic 360<br><br><br><br> -Section 25<br><br><br><br> -Paragraph 9<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6474861&amp;loc=d3e64954-109465<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 932<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 1<br><br><br><br> -Subparagraph (SX 210.4-10.(a)(15))<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6949603&amp;loc=d3e511914-122862<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Audit and Accounting Guide (AAG)<br><br><br><br> -Number AAG-OGP<br><br><br><br> -Chapter 2<br><br><br><br> -Paragraph 48<br><br><br><br> -IssueDate 2006-05-01<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 19<br><br><br><br> -Paragraph 17<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Regulation S-X (SX)<br><br><br><br> -Number 210<br><br><br><br> -Section 10<br><br><br><br> -Paragraph a<br><br><br><br> -Subparagraph 15<br><br><br><br> -Article 4<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_ExplorationExpense</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncomeLossFromContinuingOperations">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>This element represents the income or loss from continuing operations attributable to the parent which may also be defined as revenue less expenses and taxes from ongoing operations before extraordinary items but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests, if any.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 260<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 1<br><br><br><br> -Subparagraph (a)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6371337&amp;loc=d3e3550-109257<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 29<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 810<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 18<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6921628&amp;loc=SL4613673-111683<br><br><br><br><br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 28<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 38<br><br><br><br> -Subparagraph b(1)<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 7: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 225<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 2<br><br><br><br> -Subparagraph (SX 210.5-03.13)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6880815&amp;loc=d3e20235-122688<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_IncomeLossFromContinuingOperations</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) during the reporting period in the amounts payable to vendors for goods and services received and the amount of obligations and expenses incurred but not paid.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 28<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -Subparagraph (a)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncreaseDecreaseInAccountsReceivable">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 28<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -Subparagraph (a)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_IncreaseDecreaseInAccountsReceivable</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncreaseDecreaseInAccruedSalaries">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) during the period in accrued salaries.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 28<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -Subparagraph (a)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_IncreaseDecreaseInAccruedSalaries</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_IncreaseDecreaseInOtherOperatingAssetsAndLiabilitiesNetAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncreaseDecreaseInPrepaidExpense">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) during the reporting period in the amount of outstanding money paid in advance for goods or services that bring economic benefits for future periods.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 28<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -Subparagraph (a)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_IncreaseDecreaseInPrepaidExpense</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>credit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NetCashProvidedByUsedInContinuingOperations">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) in cash associated with the entity's continuing operating, investing, and financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_NetCashProvidedByUsedInContinuingOperations</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NetCashProvidedByUsedInFinancingActivities">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The net cash inflow or outflow from financing activity for the period.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 26<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 24<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3521-108585<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 26<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3574-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_NetCashProvidedByUsedInFinancingActivities</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperationsAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_NetCashProvidedByUsedInOperatingActivities">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 24<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3521-108585<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 25<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3536-108585<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 28<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 26<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_NetCashProvidedByUsedInOperatingActivities</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_OperatingCashFlowsDirectMethodAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_OperatingCashFlowsDirectMethodAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Details</a><div>
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_OtherNoncashInvestingAndFinancingItemsAbstract</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
                  </tr>
                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:stringItemType</td>
                  </tr>
                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
                  </tr>
                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
                  </tr>
                </table>
              </div>
            </div>
          </td>
        </tr>
      </table>
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_PaymentsForProceedsFromInvestments">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
        </tr>
        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The net cash paid (received) associated with the acquisition or disposal of all investments, including securities and other assets.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 9<br><br><br><br> -Subparagraph (a)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3098-108585<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 15<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Glossary Investing Activities<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6516133<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 8<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3095-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The cash outflow from the acquisition of a piece of land and anything permanently fixed to it, including buildings, structures on it and so forth, and payments to develop real estate assets by adding improvements on or to a parcel of land. Such improvements may include drainage, utilities, subdividing, access, buildings, and any combination of these elements. Including real estate intended to generate income for the owner; excluding real estate acquired for use by the owner.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 17<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 13<br><br><br><br> -Subparagraph (c)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3213-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_PaymentsToAcquireAndDevelopRealEstate</nobr></td>
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        <tr>
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            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The cash inflow from a borrowing supported by a written promise to pay an obligation.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 14<br><br><br><br> -Subparagraph (b)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3255-108585<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 18<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 95<br><br><br><br> -Paragraph 19<br><br><br><br> -Subparagraph b<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Glossary Financing Activities<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6513228<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_ProceedsFromNotesPayable</nobr></td>
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                    <td><strong> Data Type:</strong></td>
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                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
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                    <td><strong> Period Type:</strong></td>
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        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>Aggregate cash proceeds received from a combination of transactions in which noncurrent assets are sold, which may include the sale of a business, an investment in an affiliate (including an equity method investee), property, plant and equipment and intangible assets. Excludes sales of trading, available-for-sale, and held-to-maturity securities.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>No definition available.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_ProceedsFromSalesOfBusinessAffiliateAndProductiveAssets</nobr></td>
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        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 810<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 55<br><br><br><br> -Paragraph 4J<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6922042&amp;loc=SL4591551-111686<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 38<br><br><br><br> -Subparagraph a<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph A1, A4, A5<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 38<br><br><br><br> -Subparagraph c(1)<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 29<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 810<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 1A<br><br><br><br> -Subparagraph (a),(c)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6921930&amp;loc=SL4573702-111684<br><br><br><br><br><br><br><br>Reference 7: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 810<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 55<br><br><br><br> -Paragraph 4K<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6922042&amp;loc=SL4591552-111686<br><br><br><br><br><br><br><br>Reference 8: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 51<br><br><br><br> -Paragraph 5<br><br><br><br> -Subparagraph b<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 9: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 810<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 19<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6921628&amp;loc=SL4569616-111683<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_ProfitLoss</nobr></td>
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                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
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                    <td><strong> Balance Type:</strong></td>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_StockholdersEquityNoteDisclosureTextBlock">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable).  Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Regulation S-X (SX)<br><br><br><br> -Number 210<br><br><br><br> -Section 04<br><br><br><br> -Article 3<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Regulation S-X (SX)<br><br><br><br> -Number 210<br><br><br><br> -Section 02<br><br><br><br> -Paragraph 29, 30, 31<br><br><br><br> -Article 5<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 310<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 2<br><br><br><br> -Subparagraph (SAB TOPIC 4.E)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6228006&amp;loc=d3e74512-122707<br><br><br><br><br><br><br><br>Reference 4: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 4<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21484-112644<br><br><br><br><br><br><br><br>Reference 5: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 4<br><br><br><br> -Subparagraph (SAB TOPIC 4.C)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6959260&amp;loc=d3e187143-122770<br><br><br><br><br><br><br><br>Reference 6: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 129<br><br><br><br> -Paragraph 2, 3, 4, 5, 6, 7, 8<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 7: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Glossary Preferred Stock<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6521494<br><br><br><br><br><br><br><br>Reference 8: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 5<br><br><br><br> -Paragraph 15<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 9: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Regulation S-X (SX)<br><br><br><br> -Number 210<br><br><br><br> -Section 08<br><br><br><br> -Article 4<br><br><br><br><br><br><br><br>Reference 10: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 1<br><br><br><br> -Subparagraph (SX 210.3-04)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6959260&amp;loc=d3e187085-122770<br><br><br><br><br><br><br><br>Reference 11: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Staff Accounting Bulletin (SAB)<br><br><br><br> -Number Topic 4<br><br><br><br> -Section C<br><br><br><br><br><br><br><br>Reference 12: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 5<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21488-112644<br><br><br><br><br><br><br><br>Reference 13: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 210<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 1<br><br><br><br> -Subparagraph (SX 210.5-02.29-31)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682<br><br><br><br><br><br><br><br>Reference 14: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Regulation S-X (SX)<br><br><br><br> -Number 210<br><br><br><br> -Article 4<br><br><br><br> -Section 08<br><br><br><br> -Paragraph d<br><br><br><br><br><br><br><br>Reference 15: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher SEC<br><br><br><br> -Name Staff Accounting Bulletin (SAB)<br><br><br><br> -Number Topic 4<br><br><br><br> -Section E<br><br><br><br><br><br><br><br>Reference 16: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 30<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 2<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6405834&amp;loc=d3e23285-112656<br><br><br><br><br><br><br><br>Reference 17: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 3<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21475-112644<br><br><br><br><br><br><br><br>Reference 18: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 235<br><br><br><br> -SubTopic 10<br><br><br><br> -Section S99<br><br><br><br> -Paragraph 1<br><br><br><br> -Subparagraph (SX 210.4-08.(d),(e))<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6881521&amp;loc=d3e23780-122690<br><br><br><br><br><br><br><br>Reference 19: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Research Bulletin (ARB)<br><br><br><br> -Number 43<br><br><br><br> -Chapter 1<br><br><br><br> -Section B<br><br><br><br> -Paragraph 7, 11A<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 20: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 2<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21463-112644<br><br><br><br><br><br><br><br>Reference 21: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher AICPA<br><br><br><br> -Name Accounting Principles Board Opinion (APB)<br><br><br><br> -Number 12<br><br><br><br> -Paragraph 10<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 22: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 6<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21506-112644<br><br><br><br><br><br><br><br>Reference 23: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 505<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 50<br><br><br><br> -Paragraph 11<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21564-112644<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_StockholdersEquityNoteDisclosureTextBlock</nobr></td>
                  </tr>
                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
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                  <tr>
                    <td><strong> Data Type:</strong></td>
                    <td>nonnum:textBlockItemType</td>
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                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>na</td>
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                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
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          </td>
        </tr>
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      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_StockOptionPlanExpense">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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        <tr>
          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The noncash expense that accounts for the value of stock or unit options distributed to employees as compensation.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 123R<br><br><br><br> -Paragraph 64<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br><br><br> -Number 123R<br><br><br><br> -Paragraph A240<br><br><br><br> -Subparagraph i<br><br><br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br><br><br><br><br>Reference 3: http://www.xbrl.org/2003/role/presentationRef<br><br><br><br> -Publisher FASB<br><br><br><br> -Name Accounting Standards Codification<br><br><br><br> -Topic 230<br><br><br><br> -SubTopic 10<br><br><br><br> -Section 45<br><br><br><br> -Paragraph 28<br><br><br><br> -Subparagraph (b)<br><br><br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br><br><br><br><br></p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ Details</a><div style="display: none;">
                <table border="0" cellpadding="0" cellspacing="0">
                  <tr>
                    <td><strong> Name:</strong></td>
                    <td><nobr>us-gaap_StockOptionPlanExpense</nobr></td>
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                  <tr>
                    <td style="padding-right: 4px;"><nobr><strong> Namespace Prefix:</strong></nobr></td>
                    <td>us-gaap_</td>
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                    <td><strong> Data Type:</strong></td>
                    <td>xbrli:monetaryItemType</td>
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                  <tr>
                    <td><strong> Balance Type:</strong></td>
                    <td>debit</td>
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                  <tr>
                    <td><strong> Period Type:</strong></td>
                    <td>duration</td>
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  <body><span style="display: none;">v2.4.0.6</span><table class="report" border="0" cellspacing="2" id="ID0EL1AE">
      <tr>
        <th class="tl" colspan="1" rowspan="2">
          <div style="width: 200px;"><strong>Shareholders Equity (USD $)<br></strong></div>
        </th>
        <th class="th" colspan="2">12 Months Ended</th>
      </tr>
      <tr>
        <th class="th">
          <div>Dec. 31, 2010</div>
        </th>
        <th class="th">
          <div>Dec. 31, 2009</div>
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        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic', window );">Net loss</a></td>
        <td class="num">$ (247,432)<span></span></td>
        <td class="num">$ (2,627,902)<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities', window );">Accrued employee salaries</a></td>
        <td class="nump">50,000<span></span></td>
        <td class="nump">50,000<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockOptionPlanExpense', window );">Issuance of Stock Options</a></td>
        <td class="nump">11,295<span></span></td>
        <td class="nump">28,080<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims', window );">Issuance of Common Stock</a></td>
        <td class="nump">173,490<span></span></td>
        <td class="nump">685,000<span></span></td>
      </tr>
      <tr class="rh">
        <td class="pl" style="border-bottom: 0px;" valign="top">
          <div class="a">Common Stock</div>
        </td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic', window );">Net loss</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities', window );">Accrued employee salaries</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockOptionPlanExpense', window );">Issuance of Stock Options</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">0<span></span></td>
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      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims', window );">Issuance of Common Stock</a></td>
        <td class="nump">2,495,000<span></span></td>
        <td class="nump">8,515,874<span></span></td>
      </tr>
      <tr class="rh">
        <td class="pl" style="border-bottom: 0px;" valign="top">
          <div class="a">Additional Paid-In Capital</div>
        </td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic', window );">Net loss</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities', window );">Accrued employee salaries</a></td>
        <td class="nump">50,000<span></span></td>
        <td class="nump">50,000<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockOptionPlanExpense', window );">Issuance of Stock Options</a></td>
        <td class="nump">11,295<span></span></td>
        <td class="nump">28,080<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims', window );">Issuance of Common Stock</a></td>
        <td class="nump">170,995<span></span></td>
        <td class="nump">676,484<span></span></td>
      </tr>
      <tr class="rh">
        <td class="pl" style="border-bottom: 0px;" valign="top">
          <div class="a">Accumulated Deficit</div>
        </td>
        <td class="text">&#xA0;<span></span></td>
        <td class="text">&#xA0;<span></span></td>
      </tr>
      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic', window );">Net loss</a></td>
        <td class="num">(247,432)<span></span></td>
        <td class="num">(2,627,902)<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities', window );">Accrued employee salaries</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">0<span></span></td>
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      <tr class="ro">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_StockOptionPlanExpense', window );">Issuance of Stock Options</a></td>
        <td class="nump">0<span></span></td>
        <td class="nump">0<span></span></td>
      </tr>
      <tr class="re">
        <td class="pl" style="border-bottom: 0px;" valign="top"><a class="a" href="javascript:void(0);" onclick="top.Show.showAR( this, 'defref_us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims', window );">Issuance of Common Stock</a></td>
        <td class="text">&#xA0;<span></span></td>
        <td class="nump">$ 0<span></span></td>
      </tr>
    </table>
    <div style="display: none;">
      <table border="0" cellpadding="0" cellspacing="0" class="authRefData" style="display: none;" id="defref_us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities">
        <tr>
          <td class="hide"><a style="color: white;" href="javascript:void(0);" onclick="top.Show.hideAR();">X</a></td>
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          <td>
            <div class="body" style="padding: 2px;"><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">- Definition</a><div>
                <p>The increase (decrease) during the reporting period in the aggregate amount of obligations related to services received from employees, such as accrued salaries and bonuses, payroll taxes and fringe benefits.</p>
              </div><a href="javascript:void(0);" onclick="top.Show.toggleNext( this );">+ References</a><div style="display: none;">
                <p>Reference 1: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Statement of Financial Accounting Standard (FAS)<br><br> -Number 95<br><br> -Paragraph 28<br><br> -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009.  This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.<br><br><br><br>Reference 2: http://www.xbrl.org/2003/role/presentationRef<br><br> -Publisher FASB<br><br> -Name Accounting Standards Codification<br><br> -Topic 230<br><br> -SubTopic 10<br><br> -Section 45<br><br> -Paragraph 28<br><br> -Subparagraph (a)<br><br> -URI http://asc.fasb.org/extlink&amp;oid=6943989&amp;loc=d3e3602-108585<br><br><br><br></p>
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