Common use of Introduction and Background Clause in Contracts

Introduction and Background. On August 31, 2005, Pioneer Natural Resources Alaska, Inc. (Pioneer), as the designated NE Storms unit operator, filed the NE Storms Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR), on behalf of itself and the other majority working interest owner (WIO), ConocoPhillips Alaska, Inc. (ConocoPhillips). The proposed unit is located on the North Slope, approximately 1-2 miles southwest of the Prudhoe Bay Unit (PBU). The proposed unit area covers approximately 16,456 acres within seven individual State of Alaska oil and gas leases. Approval of the proposed NE Storms Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. Five of the leases in the proposed unit area were offered in the North Slope Areawide 2003 Oil and Gas Lease Sale, held on October 29, 2003. DNR issued oil and gas leases ADL 390472 (Tract 1), ADL 390473 (Tract 2), ADL 390492 (Tract 5), ADL 390497 (Tract 6), and ADL 390496 (Tract 7), effective May 1, 2004, on State of Alaska lease form number DOG 200204 (rev. 10/2003), which reserves a 16.66667 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on April 30, 2011. The remaining two leases in the proposed unit area were offered in State of Alaska Lease Sale 87, held on June 24, 1998. DNR issued oil and gas leases ADL 389096 (Tract 4) and ADL 389097 (Tract 3), effective November 1, 1998, on State of Alaska lease form number DOG 9609 (rev. 6/97), which reserves a 12.50 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on October 31, 2005.

Introduction and Background. On August 31May 9, 20052000, Pioneer Natural Resources Xxxxxxxx Alaska, Inc. (Pioneer“Xxxxxxxx”) applied on behalf of itself and Chevron U.S.A. Inc. (Chevron), as for approval of the designated NE Storms proposed McCovey Unit Agreement (“Agreement”). The proposed McCovey Unit is in the Beaufort Sea, north of the Prudhoe Bay Unit and west of Cross Island. The proposed unit operator, filed area covers approximately 28,504 acres. Xxxxxxxx proposed unitizing seven individual oil and gas leases including four State of Alaska leases and three Federal Outer Continental Shelf leases. Xxxxxxxx submitted the NE Storms McCovey Unit application (Application) with for approval by the State of Alaska, Department of Natural Resources (“DNR), on behalf of itself ”) and the other majority working interest owner (WIO), ConocoPhillips Alaska, Inc. (ConocoPhillips). The proposed unit is located on the North Slope, approximately 1-2 miles southwest U.S. Department of the Prudhoe Bay Unit Interior, Minerals Management Service (PBU“MMS”). The proposed unit area covers approximately 16,456 acres within seven individual State of Alaska oil and gas leases. Approval of the proposed NE Storms Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. Five of the leases in the proposed unit area were offered in the North Slope Areawide 2003 Oil and Gas Lease Sale, held on October 29, 2003. DNR issued oil and gas leases ADL 390472 (Tract 1), ADL 390473 (Tract 2), ADL 390492 (Tract 5), ADL 390497 (Tract 6), and ADL 390496 (Tract 7), effective May 1, 2004, on State of Alaska lease form number DOG 200204 (rev. 10/2003), which reserves a 16.66667 percent royalty to the State of Alaskacontracts. The seven-year primary lease term of these leases expires on April 30, 2011. The remaining two state leases in the proposed unit area were offered in State of Alaska Lease Sale 8765, held on June 244, 19981991. DNR issued oil and gas leases ADL 389096 (Tract 4) 377055, ADL 3777056, ADL 377059, and ADL 389097 (Tract 3), 377066 effective November August 1, 1998, 1991. The leases are on State of Alaska lease form number DOG 9609 DNR 10-4037 (rev. 6/97), revised 9/90) which reserves provides for a 12.50 percent 16.66667% royalty share to the State of Alaskastate. The seven-ten- year primary lease terms expire on July 31, 2001. The Agreement, if approved, will extend the term of these the state leases expires for as long as they are subject to the Agreement. 11 AAC 83.190. MMS offered the three federal leases in the proposed unit area in Federal OCS Sale Number 124 held on October 31June 4, 2005.1991. MMS issued federal leases OCS-Y-1576, OCS-Y-1577 and OCS-Y-1578 on form number MMS-2005 (revised March 1986) which provides for a 12.5% royalty share to the federal government. The federal leases have an effective date of August 1, 1991 and a ten- year primary term. MMS will review the unit application and issue a separate decision. Xxxxxxxx is the proposed unit operator and holds the leases jointly with Chevron. Each company holds 50% working interest in the proposed unit area. Chevron held 100% interest in the state leases until November 1, 1998, when it transferred half of its working interest to Arco Alaska, Inc. Effective April 27, 2000, Arco Alaska, Inc. changed its name to Xxxxxxxx Alaska, Inc.

Introduction and Background. On August 31June 1, 20052001, Pioneer Natural Resources Alaska, Inc. AVCG LLC (Pioneer), as the designated NE Storms unit operator, AVCG) filed the NE Storms Sakonowyak River Unit application (Application) with the Division of Oil and Gas (Division) on behalf of BP Exploration (Alaska) Inc. (BPXA), the designated unit operator. The proposed unit is located in Gwydyr Bay Alaska, at the mouth of the Sakonowyak River, south of the Northstar Unit and north of the Prudhoe Bay Unit. The proposed unit area covers approximately 11,520 acres within five individual State of Alaska oil and gas leases. AVCG submitted the Application for approval by the State of Alaska, Department of Natural Resources (DNR), on behalf of itself and the other majority working interest owner (WIO), ConocoPhillips Alaska, Inc. (ConocoPhillips). The proposed unit is located on the North Slope, approximately 1-2 miles southwest of the Prudhoe Bay Unit (PBU). The proposed unit area covers approximately 16,456 acres within seven individual State of Alaska oil and gas leases. Approval of the proposed NE Storms Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. Five Four of the leases in the proposed unit area were offered in the North Slope Areawide 2003 Oil and Gas Lease Sale, held on October 29, 2003. DNR issued oil and gas leases ADL 390472 (Tract 1), ADL 390473 (Tract 2), ADL 390492 (Tract 5), ADL 390497 (Tract 6), and ADL 390496 (Tract 7), effective May 1, 2004, on State of Alaska lease form number DOG 200204 (rev. 10/2003), which reserves a 16.66667 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on April 30, 2011. The remaining two leases in the proposed unit area were offered in State of Alaska Lease Sale 8780, held on June 24December 5, 19981995. DNR issued oil and gas leases ADL 389096 (Tract 4) 385198, ADL 385199, ADL 385201, and ADL 389097 (Tract 3)375202, effective November February 1, 19981996, on State of Alaska lease form number DOG 9609 (rev. 6/97), which reserves a 12.50 percent royalty to the State of Alaska9208. The seven-year primary lease term of these leases expires on October January 31, 20052003. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 65, held on June 4, 1991. DNR issued ADL 377051, effective August 1, 1991, on State of Alaska lease form number DNR 10-4037 (Revised September, 1990), which provides for a ten-year primary term. Without unitization, lease ADL 377051 expires July 31, 2001. BPXA initially purchased the four Sale 80 leases, and then assigned 25% of the working interest in each to Arco (Alaska), Inc. (AAI). AAI changed its name to Xxxxxxxx (Alaska), Inc. (PAI) effective April 27, 2000. Earlier this year, PAI assigned its 25% working interest in the leases to AVCG. ADL 377051 was originally issued to AAI in Sale 65. Less than a year al ter, AAI assigned Xxxxxxxx Petroleum Company and Texaco Exploration Alaska each a one-third working interest in the lease. XXX later assigned an 81/3% working interest ownership in the lease to Exxon Corporation, thus retaining a 25% working interest. In December 2000, Texaco Exploration Alaska assigned its working interest to Xxxxxxxx Petroleum Company, which became the property of PAI following the BP-ARCO merger. Earlier this year, Exxon Corporation agreed to assign its working interest in the lease to AVCG, and Xxxxxxxx Petroleum Company has agreed to do the same for its working interest in the proposed unit. Upon approval of these pending assignments, BPXA and AVCG will have 62% and 38% effective working interests in the unit area, respectively. The Agreement, if approved, will extend the term of the leases for as long as they are subject to the Agreement. 11 AAC 83.190.

Introduction and Background. On August 31October 5, 2005, Pioneer Natural Resources Alaska, Inc. Xxxxxx Range Petroleum Corporation (PioneerXxxxxx Range), as the designated NE Storms unit operatorWhiskey Gulch Unit Operator, filed the NE Storms Whiskey Gulch Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR), on behalf of itself and as the other majority sole working interest owner (WIO), ConocoPhillips Alaska, Inc. (ConocoPhillips). The proposed unit is located on the North Slope, approximately 14-2 5 miles southwest south of the Prudhoe Bay Kuparuk River Unit (PBUKRU). The proposed unit area covers approximately 16,456 30,651 acres within seven twelve individual State of Alaska oil and gas leases. Approval of the proposed NE Storms Whiskey Gulch Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. Five of the leases in the proposed unit area were offered in the North Slope Areawide 2003 2000 Oil and Gas Lease Sale, held on October 29November 15, 20032000. DNR issued oil and gas leases ADL 390472 (Tract 1), ADL 390473 389687 (Tract 2), ADL 390492 389692 (Tract 57), ADL 390497 389693 (Tract 6), ADL 389694 (Tract 8), and ADL 390496 389695 (Tract 79), effective May December 1, 20042001, on State of Alaska lease form number DOG 200204 (rev. 10/2003)200004, which reserves a 16.66667 12.50 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on April November 30, 20112008. The remaining two seven leases in the proposed unit area were offered in State of Alaska Lease Sale 87, held on June 24, 1998. DNR issued oil and gas leases ADL 389096 389089 (Tract 1), ADL 389090 (Tract 5), ADL 389091 (Tract 4) and ), ADL 389097 389092 (Tract 3), ADL 389093 (Tract 10), ADL 389094 (Tract 11) and ADL 389095 (Tract 12), effective November December 1, 1998, on State of Alaska lease form number DOG 9609 (rev. 6/97), which reserves a 12.50 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on October 31November 30, 2005.

Introduction and Background. On August 31February 15, 20052001, Pioneer Natural Resources BP Exploration (Alaska) Inc. (“BP”) on behalf of itself, Chevron U.S.A. Inc. (“Chevron”), and Xxxxxxxx Alaska Inc. (“PAI”) as the working interest owners in the proposed Slugger Unit applied for approval of the proposed Slugger Unit Agreement (“Agreement”). The proposed Slugger Unit is on the North Slope of Alaska, Inc. (Pioneer)east of the confluence of the Kavik and Shaviovik Rivers, as and southwest of the designated NE Storms Pt. Thomson Unit. The proposed unit operator, filed area covers approximately 79,508 acres within fourteen individual State of Alaska oil and gas leases. BP submitted the NE Storms Slugger Unit application (Application) with the for approval by t he State of Alaska, Department of Natural Resources (“DNR), on behalf of itself and the other majority working interest owner (WIO), ConocoPhillips Alaska, Inc. (ConocoPhillips”). The proposed unit is located on the North Slope, approximately 1-2 miles southwest Appr oval of the Prudhoe Bay Unit (PBU). The proposed unit area covers approximately 16,456 acres within seven individual State of Alaska oil and gas leases. Approval of the proposed NE Storms Unit t he Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreementcontracts. Five Eight of the leases in the proposed unit area were offered in the North Slope Areawide 2003 Oil and Gas Lease Sale, held on October 29, 2003. DNR issued oil and gas leases ADL 390472 (Tract 1), ADL 390473 (Tract 2), ADL 390492 (Tract 5), ADL 390497 (Tract 6), and ADL 390496 (Tract 7), effective May 1, 2004, on State of Alaska lease form number DOG 200204 (rev. 10/2003), which reserves a 16.66667 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on April 30, 2011. The remaining two leases in the proposed unit area were offered in State of Alaska Lease Sale 8770A, held on June 24January 29, 19981991. DNR issued oil and gas leases ADL 389096 (Tract 4) 375033, ADL 375034, ADL 375036, ADL 375052, ADL 375053, ADL 375054, ADL 375055, and ADL 389097 (Tract 3), 375059 effective November April 1, 19981991, on State of Alaska lease form number DNR 10-4037 (revised 9/90). The ten-year primary lease term of these eight leases expires on March 31, 2001. Two of the leases in the proposed unit area were offered in State of Alaska Lease Sale 70-AW, held on May 25, 1993. DNR issued ADL 382035 and ADL 382056 effective August 1, 1993, on State of Alaska lease form number DOG 9609 (rev. 6/97)9208, which reserves provides for a 12.50 ten-year primary term. Three of the leases in the proposed unit area were offered in State of Alaska Lease Sale 80, held on December 5, 1995. DNR issued ADL 385126, ADL 385129, and ADL 385144 effective February 1, 1996, on State of Alaska lease form number DOG 9208, which provides for a seven-year primary term. The final lease in the proposed unit area was offered in State of Alaska Areawide NS 2000 Lease Sale, held November 15, 2000. This lease, ADL 389656, has yet to be issued, but if issued it will be on State of Alaska lease form number DOG 9609, which carries a primary term of seven-years. All fourteen leases retain a 12.5 percent royalty to the State of Alaska. Arco (Alaska) Inc., BP, Chevron, and Amerada Xxxx Corporation all had initial ownership in the leases. Amerada Xxxx Corporation sold all of its working interest in the leases between 1994 and 1999, and Arco (Alaska) Inc. changed its name to PAI effective April 27, 2000. Ownership varies between the individual leases, but on average BP, the proposed unit operator owns 42%; Chevron owns 33%; and PAI owns 25% of the working interest in the proposed unit area. The seven-year primary lease Agreement, if approved, will extend the term of these the leases expires on October 31, 2005for as long as they are subject to the Agreement. 11 AAC 83.190.

Introduction and Background. On August 3110, 20052001, Pioneer Natural Resources Xxxxxxxx Alaska, Inc. (PioneerXxxxxxxx), as the designated NE Storms unit Cosmopolitan Unit operator, filed the NE Storms Cosmopolitan Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR), and the U. S. Department of Interior, Minerals Management Service (MMS), on behalf of itself and the other majority working interest owner owner, Forest Oil Corporation (WIO), ConocoPhillips Alaska, Inc. (ConocoPhillipsForest). The proposed unit is located on the North SlopeKenai Peninsula, approximately 1-2 miles southwest offshore, north of the Prudhoe Bay Unit (PBU)Anchor Point. The proposed unit area covers approximately 16,456 24,601 acres of which approximately 14,835 acres are State of Alaska lands within seven individual State of Alaska oil and gas leases. The remaining approximately 9,766 acres proposed for the Cosmopolitan Unit are federal Outer-Continental Shelf (OCS) lands within two MMS oil and gas leases. Approval of the proposed NE Storms Cosmopolitan Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. Five A summary of the State of Alaska leases proposed for the Cosmopolitan Unit follows. Two of the leases in the proposed unit area were offered in the North Slope Areawide 2003 Oil and Gas State of Alaska Lease SaleSale 78, held on October 2931, 20031994. DNR issued oil and gas leases ADL 390472 384403 (Tract 1), 3) and ADL 390473 384404 (Tract 2), ADL 390492 (Tract 5), ADL 390497 (Tract 6), and ADL 390496 (Tract 74), effective May January 1, 20041995, on State of Alaska lease form number DOG 200204 (rev. 10/2003), which reserves a 16.66667 percent royalty to the State of Alaska9208. The seven-year primary lease term of these leases expires on April 30December 31, 20112001. The remaining two One of the leases in the proposed unit area were was offered in State of Alaska Lease Sale 8778W, held on June 24November 14, 19981995. DNR issued oil and gas leases ADL 389096 387102 (Tract 4) and ADL 389097 (Tract 31), effective November February 1, 19981996, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of this lease expires on January 31, 2003. Another lease in the proposed unit area was offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas lease ADL 389230 (Tract 6), effective February 1, 2000, on State of Alaska lease form number DOG 9609 (rev. 6/979/99). The seven-year primary lease term of this lease expires on January 31, 2007. Two of the leases were offered in the Cook Inlet Areawide 2000 Oil and Gas Lease Sale, held on August 16, 2000. DNR issued oil and gas leases ADL 389525 (Tract 8) and ADL 389526 (Tract 9), which reserves a 12.50 percent royalty to the effective May 1, 2001, on State of AlaskaAlaska lease form number DOG 200004. The seven-year primary lease term of these leases expires expire on October April 30, 2008. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 9, held on July 11, 1962. DNR issued ADL 18790 (Tract 7), effective September 1, 1962, on State of Alaska lease form DL-1 (Rev. April, 1961). The Starichkof State #1Well, a certified well capable of production in paying quantities, is located on ADL 18790. All seven leases retain a 12.5 percent royalty to the State of Alaska. The two MMS leases were offered in Cook Inlet OCS Oil and Gas Lease Sale 149, held on June 11, 1997. The leases were effective August 1, 1997, for a five-year primary lease term. The leases expire July 31, 20052002, and reserve a 12.5% royalty to the federal government.