PLAINS MARKETING, L.P. LETTERHEAD] Crude Oil Purchase Contract

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Exhibit 10.8

[PLAINS MARKETING, L.P. LETTERHEAD]

Crude Oil Purchase Contract

CONTRACT NO. 4863-1003 May 05, 2005

This contract by and between Ellora Operating, L.P. ("Ellora"), with an address of 0000 Xxxxxxx, Xxxxx 000, Xxxxxxx, XX 00000—and Plains Marketing, L.P., ("PMLP"), covering the sale and delivery by Ellora and the purchase and receipt by PMLP of the hereinafter specified oil is entered into in accordance with the following feints and conditions:

1.		TERM:		The primary term shall be a period of one month from November 01, 2004 to December 01, 2004.
				The term shall be automatically extended for a Secondary Term month to month thereafter unless notice of non-renewal is given by either party hereto upon not less than thirty (30) days advance written notice to the other party.
2.		QUALITY
		AND
		CRUDE
		TYPE:		Rocky Mountain Sweet crude oil.
3.		QUANTITY:		An amount equal to actual lease receipts from lease(s) indicated on Exhibit "A" attached hereto and made a part hereof. (Approximately 26 barrels per day).
4.		DELIVERY:		Shall be made at the well tankage into PMLP's designated transportation facilities.
5.		PRICE:		For the crude oil sold and delivered hereunder, PMLP agrees to pay a price per barrel equal to SPLLC Colorado Southeastern Crude Oil Posting, capped 44.9ø API gravity. For pricing purposes, deliveries will be calculated on equal daily quantities.
6.		PAYMENT:		Payment shall be made by check on or about the twentieth (20th) day of-the month following the month of delivery.

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

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

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

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

Plains Marketing, L.P.
00 Xxxxx Xxxxx, Xxxxx 000X
Xxxxxxx, Xxxxx 00000
Phone: (000) 000-0000
Fax: (000) 000-0000

Invoices shall be mailed or faxed to PMLP as follows:

Plains Marketing, L.P.
000 Xxxx Xxxxxx Xxxxx0000
Xxxxxxx, Xxxxx 00000
Phone: (000) 000-0000
Fax: (000) 000-0000

Notices and all other correspondence to Ellora shall be mailed or faxed as follows:

Ellora Operating, L.P.
0000 Xxxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Phone:(000) 000 0000
Fax:(000) 000 0000

BUYER				SELLER
Plains Marketing, LP.				Ellora Operating, LP.
By Plains Marketing GP Inc. Its General Partner
Agreed and accepted this 19 day of June, 2005.				Agreed and accepted this 6th day of June, 2005.
By:		/s/ XXXX X. XXXXXX		By:		/s/ XXXXXXX X. XXXXXXX
Name:		Xxxx X. Xxxxxx		Name:		Xxxxxxx X. Xxxxxxx
Title:		Director, West Texas Region and Attorney in Fact		Title:		Manager-Land/Marketing

jac
Log No.: 17049

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Plains Marketing L.P.

May 05, 2005

Plains Contract:

4863-1003

Effective 03-01-2005

Exhibit "A"

Partner contract:

Page 1 of 1

PM Lease ‡=Intact			Lease		Operator		County/ Parish		State		Price Code*		Price Method**		Applicable Premium or (Deduct)			Percent			Gravity		State Lease
	014910		SNIFF E		ELLORA OPERATING LP		BENT		CO		S2078		EDQ		$	0.0000			100.00000	%	Capped 44.90 API
	049340		SNIFF LATERAL DRIP STATION		ELLORA OPERATING LP		BENT		CO		S2078		EDO		$	0.0000			100.00000	%	Capped 44.90 API
	049341		MCCLAVE SEPARATOR		ELLQRA OPERATING LP		XXXXX		XX		X0000		EDO		$	0.0000			100.00000	%	Capped 44.90 API
	074223‡		LOS ANIMAS GATHERING COMPRESSO		ELLORA OPERATING LP		BENT		CO		S2078		EDQ		$	0.0000			100.00000	%	Capped 44.90 API
	106918		XXXXX A		ELLORA OPERATING LP		BENT		CO		S2078		EDO		$	0.0000			100.00000	%	Capped 44.90 API
	123195		XXXXXXX D #1		ELLORA OPERATING LP		BENT		CO		S2078		EDO		$	0.0000			100.00000	%	Capped 44.90 API
	128645		TEMPLE.B		ELLORA OPERATING LP		BENT		CO		S2078		EDQ		$	0.0000			100.00000	%	Capped 44.90 API

(*)

S2078 PLAINS MARKETING LP-COLORADO SOUTHEASTERN

(**)

EQUAL DAILY QUANTITIES

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Exhibit 10.8