30-Dec-96 Conoco Inc. 6855 So. Havana Street Suite 620 Englewood, Colorado 80112
6003 N. Robinson
Oklahoma City, Oklahoma 73118-7425
This letter confirms your agreement to sell and Conoco Inc.'s ("Conoco") agreement to purchase the crude oil
and/or condensate ("Oil") production from this subject lease(s).
Price and Custody Transfer
Conoco Inc. will purchase, at the lease tanks, the allowable marketable crude oil and/or condensate from the
lease. The purchase shall be under the provisions of Conoco's Basic Division Order, property executed by all
owners of interest, and at Conoco's Wyoming Sweet Powder River Basin posted price plus a $1.35/bbl bonus,
gravity adjusted, equal daily quantities. Conoco will be responsible for paying Conservation taxes only.
You, as seller, warrant that the crude oil and/or condensate delivered is not contaminated by chemicals foreign to
virgin crude and/or condensate including, but not limited to, chlorinated and/or oxygenated hydrocarbons.
Conoco shall have the right, without prejudice, to reject and return quantities of crude oil and/or condensate
which are found to be so contaminated, even after delivery to Conoco.
Division Order - Title Requirements
The operator will, at its expense, furnish to Conoco Inc. Real Property Administration Department, P.O. Box
1267, Ponca City, Oklahoma 74603, evidence of title, acceptable to Conoco, as may be requested to determine
the proper method and manner of disbursing payments. Evidence of title shall be furnished in the form and manner
indicated below, along with a list showing names, Social Security numbers or Tax I.D. numbers, and current
mailing addresses of all owners of interest. Division orders will be mailed to all owners of interest by Conoco Inc.
Please submit the original and two (2) copies of acceptable division order title opinion and necessary supplements
thereto addressed to Conoco and covering the lands included in the above-described lease(s) as pre