STEPHENS ENERGY CORP. - The Railroad Commission of Texas

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Gentlemen: Re: I11I) Openling Agreement Memuring Station # Freenone County, Texas agmment ("Agreemml") is lo sd f0Rh lhc agmment between I .. ("Point Dcsipd"', and T N Gas Company ('TXU GAS'), conarninp gas qual~ty, routing. alloca~ion&a associated with gas sources deliwing into TXU GAS syrtem a thc Yuinl(s) of' Dclivcry lisled on the ntachcd Enhibit "A" (the "Receipt Poinl(s)"). Thc parlies l~rcla~ mmize - thrl Point Dcsimcc delivers go6 - from vuioru well sourccs into mch Receipt Point metcr which --ires rhe perform-~~e~ofy&us o~erotions. which may include, but uc not limi.tod to. musurcment of war - .. ~rrhcur=tml. tnnsvonatioa of gas and quality - . analysis by TXU GAS for Pod Designer. - thc snk of gas at 11be ~seipi ~ o imeter i to various mskcts. or th;do&marn pooling ofgal. Effeclive October I, 2004, in order to clKify requkmcnls associated with vuious opentionu at the Rcceip Point. and in C~~ide~ti~n of the mulusl covenants ad agreements maiaed hmln. thc adcquuy and sufIiciency of which arc hereby acbowkdged, the parties hcmo agree as follows: I. Thc mlunl ps flowing Lhmugh thc Receipt Point into TXU GAS' systun must: (a) IK nf -Qualttv @) k con&rcially fm of dutr, gum, gum-forming wnrtitmts. p~)lmc. liquid hydnxrrhons. water a;d my other subflancc of any kind tha may become separated from tl~c gas 'luring t k hnndling th-f or that may cause injuy to or interference with p&pcr operation &,I' the lines, meters. reguhtors or other appliances through which it flows; (e) contain not more than % grain of hydrogen sulfde p a 100 cubic fcn of gas; (d) m ain not more than 5 grains of total vrlhr. including not more than 1 p in of macaptan sulfur, per 100 cuhie feet of gas (e) conlain not rnm [tun 2% by volumc of cubon dioxide; and contain not more than a total of 4% by volume of non- hydrocarbon gases; (0 conlain not more than 0.05% oxygen: (g) contain a lgou heating value of ;II lead 950 British Thnmd Units ("Btu") per cubic foot and not more than 1.100 Bfu per cubic fool: (h) contain rmc mar than 7 poundr of wata vapor pu million cubic feet of gas; (i) have a temperalure of not nmre than 120 degrees Fahenheit, nor less than 40 degrees Fahrenheit; (i) have r hydmcarba dew point below 40 degrees Fabrcnheit at the delivery pressure; and (k) have an intcrchnngeabilily faclur (calculotcd by dividing uch Btu of gas, saluntd wllh water vapor al a tcmpsraturc nl' 0 degrees Fahrenl~eit and a a plcsaure of 14.65 psi., by the square mot of the specific gravity ofllle gas) ctut deviates no more than 7% from the interchangeability factor of the gas contained in 'TXU GAS' plpelinc nystcm at the Rcocipt Point. Notwilhstmndi& the foregoing, TXU GAS may waive Point Designee's uhligatims with reprd to maximum Bru content, hydrocarbon dew point and
inmhangubitity, subjc* to TXU GAS' continuing hturc. TXU GAS nurvtc the right, at anyimc r quality specifications set fod~ abovc on a nondi 30 days prlw wnnen notice of such changes. 2. If at any lime the gas delivcrcd into the TXU GAS syrtun or rereivcd into thc TXU GAS sys~cni XI tk Receipt Puinl fails to meo the qualily specificatitnu enumerated hmin TXU GAS will nolib I'olnt Designee and Point Designee will immediately wmct such failure. - If Point kipnee is o~~nhlc or uriwillii to deliver gas according to such specifications, D(U GAS may r e h to ecccpt delivery of Ens h m u k for so long as such condition exists. 3. All oflhe gns drlivmd to TXU LiAS at the Receipt hinl by Point Designee must be lransponcd .In TXII GAS' ryrtem punuant to agreements between TXU GAS and the p ny that own$ or coinrols the gas at the Keeeipt Point 4. TXU GAS will be solely responsible for all daily opmtional activities performed md costs with =card to the Rescipt Point described herein, including. but not limited to. operation, tcning. calibration, adjusting and routine maintenance necessary for the utilization of the Receipt R~inl. Point Dcsigwc will be responsible for all repair or replacement cons ofeach Receipt Point l'acililic* (including. bur nM limited to lhox paN that typically equirr periodic repair or replacement unds accepcd burinw practices for mtu and regulator operation). Any individual rcpair(s) tir replacc~ncnt(s) costing S1.000.00 a kss. and my emeremcy repaids) or rcplacmcn(r) ex=edi~tx 5I,utMJ.(W. may be nia& by lXU GAS within its discretion, but if TXU GAS determines that :~ny nmrraw regir or replacement of equipmcnl will s x d SI, en TXU GAS will scck 11) obtain writtm approval f m Pold Designee prior to tnakuy-r or replacement, unlur tk npnir or replacement is considued m emergency repair or replacement in TXU GAS' rcaronablc upin~on. Anu TXU GAS mker my rcpair or replacanent of cquipmcnt pursuant w the tvmr ul'lliis hragraph. TXU GAS will forward to Point Designee a statement setting fonh the total costr anrihvrable lo such repair or rrplxunent, and Point Designee will pay to TXUOA~ the lull an~c)unl of any such statement as provided in Paragraph 8. If Point Designee refuses lo agm to any necessary rcpatr or qlaccment that exceeds S 1000.0. TXU GAS is nuthorizrd to ceau receivink en:; antt prevent rhc delivery of gar ch refusal cominucs for 'HI days. Pninl Daiyec will nd removal of facilities at Receipt Point as provid 3.61. Shipper agrms to ' minihur~ Transporter for my Taxer as defined in pngraph 13 of this ~~ruemeni. . 5. If. in TXU GAS' reasonable opinion. the flow turndown or range on the existing meter is insutliclcnl for awuralr muwnment on 8 day-tc-day or an hour-tohour basis. TXU GAS may purchase and inaall promptly. at I'oint Designee's sole cod and expcnce, an altcmac mctn that meets TXU (;AS standards fa accuracy at the flow turndown oc my experienced at the hhsunng Station. 6. As be~wccn TXU GAS md Point Designee, each assumes full responsibility for its own itcls psrlbnncd pununnl lo thr tcnns and conditions ofthu Agreement and uch parry agrees to indenlll~fy and hold harntlas ib 0 t h pany from all liebilitin. losses. claims, costr (including dorncy's fccr and coun costs), damages or expenses of whatever nature that may result from injury to or death ol persons, or damage, loss or drstruction of property arising out of or in w~axion with thc indenlniqin~ party's aclions under or brcach of this Agrcemcnt, eacspl to he cxtcnr rht any n~ch liahtlity. Iw, claim. damage, cost or expensc n caused by the negligence or other fault dthe utllur party. 'Thb Parapraph will survive the tmnination ofthir Apmcnt.
Page 1 and 2: STEPHENS ENERGY CORP. RANDAL M. STE
Page 3 and 4: months of excessive fuel+LUG deduct
Page 5 and 6: allocating LUG proportionately as r
Page 7 and 8: CONTRACT REVIEW BELOW OmnlCManenb ~
Page 9 and 10: - cM@#&g& May 29,2003 P.O. Box 1JC
Page 11: Re: - Due lo the changing industry
Page 15 and 16: "POINT DESIGNEE" (Nouca and invoice
Page 17 and 18: Auyst 13,2001 Re: 4^ Opnating Agree
Page 19 and 20: Imcrchmgeabillty, subject to TXU GA
Page 21 and 22: March 24, 2003 ~.06rmu B 1 T H b h
Page 23 and 24: 3.2 lbrthiagtothceon~bminconlaincdn
Page 25 and 26: RE: RoposedGasPmdmseAgrsmwt~CitoriO
Page 28 and 29: --- mu- OUlg.mn1PMI ~P-9gcofRwadsdP
Page 30 and 31: Unaccounted Gas (LUG), which is gas
Page 32: magically go away, and in& fa will
Page 35 and 36: a&essment of th-e bpe andlor Intern
Page 37 and 38: March 2,2005 Chairman Houde Energy
Page 39 and 40: New Horizon Investments, Ltd. P.O.
Page 41: ~ ~ f ,316 El Dorado Drive Fc t Wor
Page 44 and 45: The logic of all this is, a long as
Page 46 and 47: u RUSSOI N. TAYLOR am Texas Allianc
Page 48: If -one hu read a Yn: eoatraec. h g

STEPHENS ENERGY CORP. - The Railroad Commission of Texas

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