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EXHIBIT 10.15.1
[XXXXXXX OIL & GAS, L.P. LETTERHEAD]
June 10, 1996
Via Overnight Delivery
Veritas Geophysical Ltd.
000 Xxxx Xxxxxxx Xxxxxxx, Xxxxx 000
Xxxxx, Xxxxx 00000
Attention: Xx. Xxxxxx Xxxxxxx
Re: Anadarko Basin Seismic Operations Agreement dated
February 15, 1996, by and between Xxxxxxx Oil & Gas,
L.P. ("BOG") and Veritas Geophysical, Ltd.
("Veritas") (hereinafter referred to as the "Alliance
Agreement")
Dear Ed:
This letter amendment sets forth BOG's and Veritas' agreement to amend
the Alliance Agreement to exclude our Cornhusker Project from the Alliance
Agreement and to set forth our new arrangement for the acquisition of sand
tires for the Alliance Seismic Crew's vibrator trucks.
I.
The parties hereto agree that the 3-D seismic operations being
conducted for BOG's Cornhusker Project, located in Xxxxxxx and Hemphill
Counties, Texas, are being conducted by Veritas pursuant to a separate Basic
and Supplemental Agreement executed by the parties and, therefore, such
Cornhusker Project and the 3-D seismic operations conducted therein are hereby
excluded from the Alliance Agreement. The parties hereto agree that the first
BOG Project Area which shall be the subject of the Alliance Agreement shall be
the Gold Project Area for which field seismic operations are expected to
commence around June 24, 1996.
II.
As 3-D Operations for the first Project Area under the Alliance
Agreement are not expected to commence until some time after the start of the
Cornhusker Project, the parties hereby agree that the term for conducting 3-D
Operations under the Alliance Agreement shall be increased from eighteen months
to twenty-three months. As such, the parties hereto agree that the Alliance
Agreement is hereby amended such that everywhere the word "eighteen" appears in
Sections 2.2, 2.5 and 3.9 of the Alliance Agreement, such term shall be
replaced with the word "twenty-three."
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Veritas Geophysical, Ltd.
Alliance Agreement Amendment
June 10, 1996
Page 2
III.
The parties have also agreed that model 28-L-26 ANS Goodyear Tractor
Tires with Diamond Tread, or the equivalent thereof, are to be acquired by
Veritas immediately and placed on the Alliance Seismic Crew's vibrator trucks.
For a period of five years from the date of this letter agreement, or for the
useful life of the tires, whichever comes first, Veritas shall maintain the
acquired sand tires and BOG shall receive priority use of such sand tires for
3-D Operations which are conducted for BOG by Veritas. During the term of the
Alliance Agreement the Alliance Seismic Crew's vibrator trucks shall always be
equipped with the acquired sand tires unless BOG notifies Veritas otherwise.
As such, the parties agree that Section 2.7 of the Alliance Agreement is hereby
deleted in its entirety and replaced with the following:
Section 2.7. Sand Tire Provisions. The Parties agree that
Veritas shall immediately purchase and acquire sufficient model
28-L-26 ANS Goodyear Tractor Tires with Diamond Tread, or the
equivalent thereof, to equip five of the Alliance Seismic Crew's
vibrator trucks with such sand tires. During the term of this
Agreement, five of the Alliance Seismic Crew's vibrator trucks shall
always be equipped with such acquired sand tires unless BOG notifies
Veritas otherwise.
The parties hereto also agree that the Vibrator section of Exhibit E
to the Alliance Agreement is hereby deleted in its entirety and replaced with
the following:
5-6 - Vibrators. Current configurations include Xxxxx 18 buggy
mounted (44,250 pounds peak force), Hemi 48 buggy mounted
(47,700 pounds peak force) and Xxxxx 18 HD buggy mounted
(51,240 pounds peak force) units. Five (being the Vibrators
in use) of the Vibrators are to be equipped with model 28-L-26
ANS Goodyear Tractor Tires with Diamond Tread, or the
equivalent thereof, unless BOG requests otherwise. All
Vibrators shall be equipped with Xxxxxx Advance II
electronics, and Vibra *Sig QC software.
As the parties have now agreed to the provision of the above-described
tires, the parties agree that the Sand Tire Exception and the "Sand Tire
Excluded Project Area" concept is deleted from the Alliance Agreement
everywhere it appears in same.
As consideration for Veritas' acquisition of the model 28-L-26 ANS
Goodyear Tractor Tires with Diamond Tread, or the equivalent thereof, as
described above, the parties agree that the Turnkey Charge in Section 3.2 shall
be increased in amount by $38.00 per square mile. As such, the parties hereto
agree that Subsection J of Section 3.2 of the Alliance Agreement is hereby
deleted in its entirety and replaced with the following:
J. The Total Turnkey Charge per square mile for a
Project Area is then determined by adding together (i) twenty-five
percent (25%) of the AVG, (ii) seventy-five percent (75%) of the RRLLN
for the longest receiver line in the Project Area, and (iii)
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Veritas Geophysical, Ltd.
Alliance Agreement Amendment
June 10, 1996
Page 3
thirty-eight dollars. The Total Turnkey Charge per square mile for a
Project Area being referred to in this Section 3.2 as the "TTCPM."
Therefore, the Turnkey Charge per square mile which is set forth in the two
examples contained in Exhibit C to the Alliance Agreement shall be increased by
$38.00 as follows:
Project Area
Example A
Turnkey Charge Per Square Mile
= (.25 * AVG) + (.75 * longest RRLLN) + $38
= (.25 * $15,056) + (.75 * $15,788) + $38
= $3,764 + $11,841 + $38
= $15,643
Project Area
Example B
Turnkey Charge Per Square Mile
= (.25 * AVG) + (.75 * longest RRLLN) + $38
= (.25 * $14,644) + (.75 * $15,265) + $38
= $3,661 + $11,449 + $38
= $15,148
The parties agree that the consideration described above covers the
cost of initially transporting and installing the model 28-L-26 ANS Goodyear
Tractor Tires with Diamond Tread (or the equivalent thereof) on the Alliance
Seismic Crew's Vibrators and any costs which are incurred by Veritas in the
event that different Vibrators are used for the Alliance Seismic Crew and thus
Veritas must transport and/or install the tires on different Vibrators.
However, in the event that BOG requests that other tires be utilized for any
Project Area and then decides to utilize the model 28-L-26 ANS Goodyear
Tractor Tires with Diamond Tread (or the equivalent thereof) for a subsequent
Project Area, BOG shall pay the actual costs incurred to truck the model
28-L-26 ANS Goodyear Tractor Tires with Diamond Tread (or the equivalent
thereof) to the Alliance Seismic Crew. As such, the parties hereto agree that
the fifth item of the "Excluded From the Turnkey Rate" Section of Exhibit B
which provides that the cost of trucking sand tires is excluded from the
Turnkey Charge, is hereby deleted in its entirety and replaced with the
following:
- In the event that BOG requests that the Alliance Seismic
Crew's vibrators utilize tires other than the model 28-L-26
ANS Goodyear Tractor Tires with Diamond Tread (or the
equivalent thereof) for a Project Area and then decides to
utilize the model 28-L-26 ANS Goodyear Tractor Tires with
Diamond Tread (or the equivalent thereof)for a subsequent
Project Area, BOG shall pay the actual costs incurred to truck
the model 28-L-26 ANS Goodyear Tractor Tires with Diamond
Tread (or the equivalent thereof) back to the Alliance Seismic
Crew for such subsequent Project Area.
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Veritas Geophysical, Ltd.
Alliance Agreement Amendment
June 10, 1996
Page 4
If this letter amendment correctly sets forth Veritas' agreement and
understanding with respect to the subject matter hereof, we ask that you have
an authorized representative of Veritas execute the duplicate originals of same
below and return one of such fully executed duplicate originals to our offices.
Sincerely,
XXXXXXX OIL & GAS, L.P.
by Xxxxxxx Exploration Company,
its Managing General Partner
/s/ XXX X. XXXXXXX
Xxx X. Xxxxxxx, President / CEO
ACCEPTED AND AGREED this ___ day of ________ , 1996:
VERITAS GEOPHYSICAL, LTD.
By: /s/ XXXXXX XXXXXXX
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(name printed) Xxxxxx Xxxxxxx
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Its: Operator Supervisor
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