Agreement Regarding Gas Purchase Contract Crockett County, Texas (Re: Mariposa — Clayton #1)
Exhibit 10.19
Agreement Regarding Gas Purchase Contract
Xxxxxxxx County, Texas
(Re: Mariposa — Xxxxxxx #1)
Xxxxxxxx County, Texas
(Re: Mariposa — Xxxxxxx #1)
Reference is made to that Gas Purchase Contract (“the Contract”) dated May 1, 2004 between
Ozona Pipeline Energy Company (“OPEC”), Buyer, and Approach Resources I, L.P. (“Approach”) et al,
Sellers. A copy of the Contract is attached to this Agreement.
Some of the entities who are Sellers under the Contract have farmed in a Xxxxxxx Lease
covering the South half of Section 9, Block 1, GC & SF Survey, Abst. 2476, from Mariposa Production
Company (“Mariposa”), As a part of the negotiation for that tract, the parties have agreed to tie
in the existing Mariposa — Xxxxxxx #1 to the existing gathering system in the vicinity now
operated by Approach. That well will continue to be operated by Mariposa.
The tie in to the gathering system will be made at Approach’s expense and at a location of its
choosing. Approach, at its sole discretion, will either use part or all of Mariposa’s existing gas
line (after burying it) or will lay a new buried gas line. Approach will set a gas sales meter and
Mariposa will set separation facilities which are adequate to provide for accurate operation of the
sales meter. The effective date of the connection will August 1, 2005.
The gas from the Mariposa — Xxxxxxx #1 will be sold through the Approach gathering system to
OPEC on the same basis and according to the same terms as the other Sellers under the Contract.
Mariposa will become a Seller under the Contract and will be bound by it as fully and completely as
if it had originally executed the Contract. Mariposa will bear its share of actual compression,
fuel or other costs, and line loss as borne by the other Sellers. However, recognizing that
Approach, as operator of the gathering system, has the means to allocate gas sales volumes to each
of the respective xxxxx tied into the system, the parties agree that the portion of revenue
attributable to the Mariposa — Xxxxxxx #1 well will be distributed by OPEC to Approach and that
Approach will then distribute 100% of that revenue to Mariposa. Approach will make that
distribution within fifteen days of its receipt by Approach. Mariposa will make any royalty,
overriding royalty or other distributions to interest owners in its well. Mariposa will be
responsible for its release from any gas contract to which it might currently be subject. Any
notice to be given to Mariposa will be to the address and phone number shown adjacent to its
signature line below.
This agreement is dated May 26, 2005 but shall be effective August 1, 2005.
Ozona Pipeline Energy Company |
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By: | Ozona Energy Corporation, | |||
its General Partner | ||||
By: | /s/ Xxxxx Xxxx Xxxxxxxx, Xx. | |||
Xxxxx Xxxx Xxxxxxxx, Xx., President | ||||
Approach Resources I, L.P. |
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By: | /s/ X. Xxxx Craft | |||
Approach Resources, Inc., | ||||
its General Partner By: X. Xxxx Craft, President |
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Mariposa Production Company |
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By: | /s/ Xxx Xxxxxxx, Xx. | |||
Xxx Xxxxxxx, Xx., President | ||||
X.X. Xxx 0000 Xxxxxxxxx, XX 00000 Phone: 000-000-0000 Fax: E-mail: xxxxxxxx@xxxxxx.xxx |
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