STEPHENS ENERGY CORP. - The Railroad Commission of Texas

RE: Gas Purchase Agreement B&--
-, L. P. Dated February 1,2004
Dear M:
February 9.2004 .
Thank you for the recent second contract you sent me, which inchrdcs compcnsatiori for
liquids. Between the time I called for that liquids contract, and the time I received it; I
received a call from a gas marketer that specializes in putting together smaller volumes,
and selling all those volumcs together at a premium price to industrial markets all o w
the U. S. Thy said they watch well permits in North Texas and now want to specialize
in the Barnett Shale, because it is so active. We told them we have a good well and
might drill a few more.
We would like to also consider their oKer. as well as yours. Thaeforc I propose a
transport agreement of 14 cents per mcf to your Bridgeport Plant and delivered into
NGPL there for our account. As a second option, I also propose 14 cents per mcf for
delivery for our account into either of the big 36" lines (Lone StarIGulf Terra) where ever
you can deliver to them. is it Morgan Mi117 We would pay your compression and other
appropriate fees as you propose. Please send us a draft transport agreement as soon as
you can so we can consider our options.
Thanks so mucn. and we look forward to hearing from you soon. T
807 8th Street Suite # l l 13 Wichita Falls. Texas 76301-3302
rqbn I 177.n37n