EXHIBIT 99.10
Unocal Corporation
0000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xx Xxxxxxx, Xxxxxxxxxx 00000
Telephone (000) 000-0000
Facsimile (000) 000-0000
E-mail xxxxxxx@xxxxxx.xxx
[UNOCAL LOGO]
September 2, 2002
Xxxxx X. Dallas
Executive Vice President
and Chief Financial Officer
The Board of Directors
Pure Resources, Inc.
000 Xxxx Xxxxxxxx
Xxxxxxx, Xxxxx 00000
Gentlemen:
We kindly refer you to the Business Opportunities Agreement (the "Agreement")
dated as of December 13, 1999 among Union Oil Company of California ("Union
Oil"), Pure Resources, Inc. (the "Company"), TRH, Inc., and Titan Exploration,
Inc. and the Waiver Letters related to the Agreement, dated May 9, 2001 and
April 23, 2002, that we executed at the Company's request (the "Waiver
Letters").
Pursuant to Union Oil's reservation of rights in the Waiver Letters, we hereby
provide written notice that the limited waivers that Union Oil provided in the
Waiver Letters with respect to the Offshore Extended Business (as defined in
the Waiver Letters) shall terminate on March 31, 2003. Please note that Union
Oil will not, under any circumstance, extend the effective period of the limited
waivers for the Offshore Extended Business beyond March 31, 2003.
We note that with the termination of our limited waiver covering the Offshore
Extended Business, the Agreement will, by its own terms, prohibit the Company
from owning, developing or operating any Offshore Extended Business assets after
March 31, 2003. Notwithstanding that prohibition, Union Oil hereby confirms
that it will not take any action or make any claim under the Agreement after
March 31, 2003, with respect to the Company's continued ownership, development
or operation of any Offshore Extended Business assets which it owns on the date
of this letter.
We are confident that the Company will take all appropriate measures over the
next few months to ensure that it is in compliance with the Agreement on
March 31, 2003 and at all times thereafter.
Thank you in advance for your cooperation in this matter.
Very truly yours,
UNION OIL COMPANY OF CALIFORNIA
By: /s/ Xxxxx X. Dallas
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Name: Xxxxx X. Dallas
Title: Executive Vice President and
Chief Financial Officer
