EQUIVA
TRADING COMPANY
Shell, Texaco & Saudi Aramco Working Together
FEBRUARY 22, 1999
NOVA ENERGY INC
000 X 0xx XX XXX 000
XXXXXX XX 00000
ATTN: XXX XXXXXX
RE: LEASE PURCHASE AGREEMENT NUMBER:
95871RO1
DEAR XX. XXXXXX:
This confirms our understanding to amend the referenced agreement to
conform with the enclosed Attachment(s)-012. Please include Attachment(s)-012
effective FEBRUARY 1, 1999, with your copy of the referenced agreement as
replacing Attachment(s)-011.
Please verify this agreement by signing and returning one of enclosed
originals to the attention of Xxxxx X. Xxx.
Regards,
/s/XXXXXX XXXXX
--------------------------------------------
XXXXXX XXXXX
TRADING MANAGER - ONSHORE
NOVA ENERGY INC
/s/Xxx Xxxxxx
--------------------------------
By: Xxx Xxxxxx
Date: 3/3/99 (HAND DATED)
-----------------------------
:dlm
P.O. Box 4604 Houston, TX 77252-4604
Lease Lease PROPERTY NAME PAY TAX PRICE PRICE PURCHASE
Holder Number COUNTY, STATE OPERATOR NAME TERMS STAT BASIS DIFF. DECIMAL
XXXXX FEDERAL #2
35014 XXXXXXXX, WY NOVA ENERGY INC DB A TWF +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXX FED 4-3-13
55260 FREMONT,WY NOVA ENERGY INC DB A QWB +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WOOD B 14-1
38550 XXXXX, WY NOVA ENERGY INC DB A WSF +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
NOVA 24-33
55785 XXXXX, WY NOVA ENERGY INC DB A TWP +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXX 6-11
50425 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXX 6-15
50743 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WHITEHEAD4-11
50653 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WHITEHEAD4-13
50654 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WHITEHEAD12-1
50659 50660 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WHITEHEAD12-7
50669 50661 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXXXX 69 AMOCO #1
50677 53542 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXXXX 69 AMOCO #2
50677 53543 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXXXX 69 AMOCO #4
50677 53544 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
18}4WHITEHEAD
55715 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
XXXXXX 24-12
55735 55722 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
SRTI24-12
55714 55725 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
SRTI24-6
55714 55725 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
SRTI24-10
55714 55726 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
24}4MORRIS
55735 55729 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
MORRIS13-8
55734 55730 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
MORRIS14-16DE
55735 55731 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WHITEHEADB-15
55736 55749 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
WHITEHEAD12-16
55751 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
MORRIS13-4
50509 55755 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
MORRIS14-8
50509 55756 ELBERT, CO NOVA ENERGY INC DB A ECQ +1.1000* 1.0000000
----- -------------------- --------------- -- - --- -------- ---------
EQUIVA TRADING COMPANY
PAGE 3
COMPANY NAME : NOVA ENERGY INC
ETCO / OTHER CO CONTRACT : 95871ROI /
EFFECTIVE DATE : FEBRUARY 1, 1999
NOTES
-----
PAYMENT TERMS
------------------------
DB = BY ETCO TO INDIVIDUL INTEREST OWNERS
TAX STATUS
-------------------------
A = ETCO IS FIRST PURCHASER. ETCO WILL COLLECT AND REMIT
PRICE BASIS
-------------------------
TWF = EQUIVA POSTED PRICE FOR WYOMING SWEET (OTHER) DEEMED AT 40.0 GRAVITY
IN EFFECT ON DATE OF DELIVERY
QWB = EQUIVA POSTED PRICE FOR WYOMING SWEET (OTHER) DEEMED AT 40.0 GRAVITY **
WSF = EQUIVA POSTED PRICE FOR WYOMING SWEET (OTHER) **
TWP = EQUIVA POSTED PRICE FOR WYOMING SWEET (OTHER) IN EFFECT ON DATE OF
DELIVERY FOR GRAVITY DELIVERED
ECQ = EQUIVA POSTED PRICE FOR COLORADO EASTERN SWEET DEEMED AT 40.0 GRAVITY **
OTHER
---------------------------
* = INDICATES CHANGE MADE ON REFERENCED EFFECTIVE DATE.
** = FOR PRICING PURPOSES, CRUDE OIL SHALL BE DEEMED TO HAVE BEEN
DELIVERED IN EQUAL DAILY QUANTITIES DURING EACH CALENDAR MONTH.
TEXACO TRADING AND TRANSPORTATION INC. 0000 Xxxxxxxx
Xxxxxx XX 00000-4899
000-000-0000
JULY 8, 1992
NOVA ENERGY INC
2055 S XXXXXXX
CASPER, WY 62604-0000
ATTN: XXX XXXXXX
RE: LEASE PURCHASE AGREEMENT NUMBER:
95871ROI
DEAR XX. XXXXXX:
This confirms Texaco Trading and Transportation Inc's ("TTTI") agreement to buy
and NOVA ENERGY INC's ("Seller") agreement to sell and deliver crude oil
production from the lease(s) described in the enclosed Attachment(s) to carriers
designated by TTTI. Provisions relating to crude type(s), decimal interest(s)
for purchases from each lease, price, payment for crude oil and payment of taxes
are stated in Attachment(s).
This agreement will continue from the date indicated on Attachment(s) until
cancellation by either party 30 days after written notice to the other and is
also subject to the terms and conditions stated in the General Provisions, a
copy of which is attached hereto and made a part hereof.
Please verify this agreement by signing and returning the enclosed copy of this
letter to the attention of the undersigned.
Regards,
/s/ X. X. Xxxxxxxx
-------------------------
X. X. Xxxxxxxx
TEXACO TRADING AND TRANSPORTATION INC.
NOVA ENERGY INC
By:
-----------------------------
Date:
---------------------------
Texaco Trading and Transportation Inc. General Provisions
1. The specific agreement terms stated on page one and on the
Attachrnent(s) to this agreement shall control over the following general
provisions and altogether comprise an integrated contract between Texaco and
Seller.
2. The term "crude oil" as used in this agreement shall include all
marketable liquid hydrocarbons.
3. All crude oil delivered to TTTI under this agreement shall be
merchantable crude oil. Title and risk of loss shall pass to TTTI as soon as
TTTI receives such crude oil into its custody or that of any carrier designated
by it.
4. TTTI shall compute quantity and quality and make corrections for
temperature and deductions for impurities according to the prevailing API/ASTM
standards in effect at the time and place of delivery and the laws and
regulations prescribed by the governmental authorities having jurisdiction.
5. Seller warrants that all crude oil delivered under this agreement
will be produced and delivered in compliance with all applicable laws and
regulations; and free of any and all claims against title when received by TTTI.
6. If TTTI makes payment to the individual owners of interests in the
crude oil to be delivered to TTTI under this agreement, Xxxxxx agrees to provide
accurate information concerning each owner's title sufficient to enable TTTI
to make such payments to protect, indemnify and hold harmless TTTI from any
claims resulting from errors or omissions in such information. TTTI agrees to
protect, indemnify and hold harmless Seller from any claims resulting from
errors or omissions made by TTTI in making payments in accordance with the
information provided by Seller.
7. If payment by TTTI to Seller includes payment for interests owned by
others in the crude oil, Seller agrees to pay all persons and entities who may
have any right, title or interest in and to the crude oil and further agrees to
protect, indemnify and hold harmless TTTI from any claims for payment by any
such persons and entities.
8. Neither party shall be liable to the other for failure or delay in
making or accepting delivery hereunder to the extent such failure or delay may
be due to compliance with acts, orders, regulations or requests of any federal,
state or local civilian or military authority or any persons purporting to act
therefor; riots; strikes; labor difficulties; action of the elements;
transportation difficulties; any subsequently enacted law or regulation having a
material adverse economic impact upon either party's ability to perform this
agreement; or any other cause reasonably beyond the control of such Party,
whether similar or not.
9. This agreement shall be governed by the laws of the state in which
the crude oil is produced.
10. In addition to the legal rights provided by the terms and provisions
of this document, the Seller may have certain statutory rights under the laws of
the state of production.
TEXACO TRADING AND TRANSPORTATION INC.
ATTACHMENT 1-000
RECEIPT LEASES
COMPANY NAME : NOVA ENERGY INC
TTTI / OTHER CO CONTRACT : 95871RDl /
EFFECTIVE DATE : JUNE 1, 1992
Lease Lease PROPERTY NAME PAY TAX PRICE PRICE PURCHASE
Holder Number COUNTY, STATE OPERATOR NAME TERMS STAT BASIS DIFF. DECIMAL
------ ------ --------------------------- --------------- ----- --- ------ ---------- ----------
50425 XXXXXX 6-11 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50473 XXXXXX 6-11 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50509 50509 XXXXXX 13-4, 14-8 HDR NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50653 XXXXXXXXX 4-11 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50654 XXXXXXXXX 4-13 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50659 50659 XXXXXXXXX 12-1, 12-7 HEADER NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50650 XXXXXXXXX 12-1 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50659 50661 XXXXXXXXX 12-7 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
50677 XXXXXXXX 569 AMOCO E-1 NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
55714 55714 XXXXX NOVA ENERGY INC DB A CN +O.4000 1.0000000
ELBERT, CO
55715 18-4 XXXXXXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT, CO
55735 55722 24-12 XXXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT, CO
55714 55724 24-2 XXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT, CO
55714 55725 24-6 XXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
55714 55726 24-10 XXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT, CO
55735 55729 24-4 XXXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT. CO
55734 55730 13-8 XXXXXX NOVA ENERGY INC DB A CN +0.4000 1.0000000
ELBERT, CO
55735 55731 14-16 XXXXXX NOVA ENERGY INC DB A CN +0.4000 l.0000000
ELBERT. CO
