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Exhibit 10.7
December 23, 2008
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Floyd Trujillo Presco Western, LLC 5665 Flatiron Parkway Boulder, CO 80301 | | Re: Texon Contract No. CPE6866 Amendment No. 13 Customer Ref. No. Various Kansas Leases—See Exhibit |
This Agreement shall serve to amend the above referenced contract and amendments thereto, if any, between Texon L.P. ("Buyer") and Presco Western LLC ("Seller"). The following Special Provisions reflect the original terms and are updated to include the item(s) amended herein and all prior amendments, if any. Items amended by this Agreement are described below. These updated Special Provisions and Texon L.P.'s General Provisions (Revision 3/08) constitute the entire Agreement between the parties.
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ITEMS | | PRICE: Amended pricing as described below effective December 1, 2008. |
AMENDED | | EXHIBIT "A": Added the Juanita 5-M29-32-39, the Franzland Co. 7-B and the Pheasant Valley leases, Morton, Seward and Finney County, Kansas effective December 1, 2008. |
| | EXHIBIT "A": Added all leases from Exhibits "B" and "C" effective December 1, 2008. |
SPECIAL PROVISIONS |
QUALITY | | Kansas Common crude oil |
QUANTITY | | Equal to Seller's owned or controlled oil condensate production from the properties/leases described in the Exhibits attached hereto. Estimated to be 3,000 barrels per day. As additional wells are added to the contract, and the volume increases, we will adjust the volume accordingly. |
PRICE | | Each calendar month's arithmetic average of the settlement prices for the Nearby Light Sweet crude oil futures contract (WTI) on the New York Mercantile Exchange (NYMEX) for each day the NYMEX settles the Nearby WTI contract (Mere days only), plus or minus the NYMEX Roll (as defined below), less an adjustment of $4.37 per barrel. |
| | NYMEX Roll: The arithmetic average of the daily settlement price for "Light Sweet Crude Oil" front month futures contract reported by the New York Mercantile Exchange (NYMEX) during the Physical Month of Delivery (the calendar month when the crude is delivered), excluding weekends and holidays, plus or minus the arithmetic average of the daily NYMEX settlement price for the prompt month, trading days only, when the Physical Month of Delivery is the prompt month trading on NYMEX, less the arithmetic average of the daily NYMEX settlement price for the second month during the same period, trading days only, multiplied by .6667, plus the average of the daily NYMEX settlement price for the prompt month, trading days only, when the Physical Month of Delivery is the prompt month trading on NYMEX, less the average of the daily NYMEX settlement price for the third month during the same period, trading days only, multiplied by .3333. |
| | In the event that the transportation cost and/or tariff changes during the term of this Agreement, Buyer reserves the right to revise the contract accordingly. |
DELIVERY | | Delivered into Buyer designated carriers from the properties/leases described in the Exhibits attached hereto. |
| | |
TERM | | Effective November 1, 2008 through April 30, 2009 and continuing month to month thereafter unless either party cancels with thirty (30) days prior written notice. Cancellation shall become effective on the first day of the month following such notice period. |
| | Buyer shall pay Seller or their designee 100% of the amount due for crude oil purchased hereunder, excluding all applicable taxes, by wire transfer on the 20th day of the month following the month of delivery. (See paragraph 3 of the General Provisions attached hereto.) |
| | Buyer shall deduct from amounts due Seller all applicable taxes and shall remit such taxes on Seller's behalf when due. Seller or their designee shall make all revenue distribution payments to all royalty interest owners and any and all other persons who may have a right, title, interest, or claim to any part of the payments made by Buyer to Seller hereunder. SELLER AGREES TO PROTECT, INDEMNIFY AND HOLD BUYER HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, COSTS, ATTORNEY'S FEES, EXPENSES OR LIABILITY OF ANY NATURE WHICH BUYER MAY SUFFER BY REASON OF BUYER MAKING PAYMENTS AS HEREIN PROVIDED. |
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Texon L.P. | | Presco Wester, LLC |
| | | | | | | | | | |
BY: | | /s/ W.K. Jones
| | DATE: 1/21/09 | | BY: | | /s/ Floyd Trujillo
| | DATE: 1/28/09 |
| | W.K. Jones Sr. Vice President, Crude Oil | | | | | | Floyd Trujillo | | |
EXHIBIT A
| | | | | | | | | | |
LEASE NAME | | FIELD | | COUNTY | | STATE | | ADJUSTMENT | |
---|
GCC 1-530 | | | | Finney | | KS | | | (4.370000 | ) |
GCC 6-C30-23-33 | | | | Finney | | KS | | | (4.370000 | ) |
GCH 4-D36-26-32 | | | | Finney | | KS | | | (4.370000 | ) |
GCH 5-D36-26-32 | | | | Finney | | KS | | | (4.370000 | ) |
Irene 1-1632 | | | | Finney | | KS | | | (4.370000 | ) |
Jehle 1-1624 | | | | Finney | | KS | | | (4.370000 | ) |
JLM Farms 1-827 | | | | Finney | | KS | | | (4.370000 | ) |
JLM Farms 4-127-26-32 | | | | Finney | | KS | | | (4.370000 | ) |
Larson 1-731 | | | | Finney | | KS | | | (4.370000 | ) |
Pettz 1-531 | | | | Finney | | KS | | | (4.370000 | ) |
Pheasant Valley 33-23S-32W | | | | Finney | | KS | | | (4.370000 | ) |
Ramsey 10-E28-23-32 | | | | Finney | | KS | | | (4.370000 | ) |
Webdell 3-3 | | | | Finney | | KS | | | (4.370000 | ) |
Barclay College 6-029-30-38 | | | | Grant | | KS | | | (4.370000 | ) |
Bunn 1 | | | | Grant | | KS | | | (4.370000 | ) |
Johnson 4-L | | | | Grant | | KS | | | (4.370000 | ) |
Johnson Heirs 1 | | | | Grant | | KS | | | (4.370000 | ) |
Johnson Heirs 2 | | | | Grant | | KS | | | (4.370000 | ) |
Lucas Trust 4-K29-30-38 | | | | Grant | | KS | | | (4.370000 | ) |
Lucas Trust 5-M29-30-38 | | | | Grant | | KS | | | (4.370000 | ) |
Nave 6-B (Sec 18, T30, R38) | | | | Grant | | KS | | | (4.370000 | ) |
Scherling W B 1-29 | | | | Grant | | KS | | | (4.370000 | ) |
Scherling W B 2-29 | | | | Grant | | KS | | | (4.370000 | ) |
Winter 13-M8-30-33 | | | | Grant | | KS | | | (4.370000 | ) |
Winter 14-N8-30-33 | | | | Grant | | KS | | | (4.370000 | ) |
Winter 15-M8.30-33 | | | | Grant | | KS | | | (4.370000 | ) |
Schartz Foods 4-K7-30-38 | | Wildcat | | Grant | | KS | | | (4.370000 | ) |
Allen Trust No. 8 | | | | Haskell | | KS | | | (4.370000 | ) |
Allen Trust No. 9 | | | | Haskell | | KS | | | (4.370000 | ) |
Andrews Trust 9-C | | | | Haskell | | KS | | | (4.370000 | ) |
Anton 2-518 | | | | Haskell | | KS | | | (4.370000 | ) |
Bergner 7-P17-28-34 | | | | Haskell | | KS | | | (4.370000 | ) |
Black Luciene A 9 | | | | Haskell | | KS | | | (4.370000 | ) |
Black Trusts 17-07-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Black Trusts 18-P7-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Black Trusts 20-D7-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Black Trusts 21-G7-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Black Trusts 23-E7-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Bond 5L | | | | Haskell | | KS | | | (4.370000 | ) |
Brennan 1 | | | | Haskell | | KS | | | (4.370000 | ) |
Brennan Gas Unit 2 | | | | Haskell | | KS | | | (4.370000 | ) |
Brookover EC 1A | | | | Haskell | | KS | | | (4.370000 | ) |
Cox 1-162 | | | | Haskell | | KS | | | (4.370000 | ) |
Cox 1-8 | | | | Haskell | | KS | | | (4.370000 | ) |
Cox 6-P2-28-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Davis 6-N17-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Diaden Farms 1-B2-29-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Diaden Farms 3-K15-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Diaden Farms 4-J15-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Diaden Farms 5-B15-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
E Hall 1-K16-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
| | | | | | | | | | |
LEASE NAME | | FIELD | | COUNTY | | STATE | | ADJUSTMENT | |
---|
E Hall 5-N16-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
E Hall 6-P16-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
E Hall 8-M16-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
E Hall 9-C16-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Earlene Black 1-817 | | | | Haskell | | KS | | | (4.370000 | ) |
Edna Cox 1-138 | | | | Haskell | | KS | | | (4.370000 | ) |
EE & L Stalker 1-1430 | | | | Haskell | | KS | | | (4.370000 | ) |
Eilerts 5-D17-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Elliot 28-M (SWLVU P10) | | | | Haskell | | KS | | | (4.370000 | ) |
Ellsaesser 1 | | | | Haskell | | KS | | | (4.370000 | ) |
Ellsaesser 2 | | | | Haskell | | KS | | | (4.370000 | ) |
Ellsaesser Gas Unit A 1 | | | | Haskell | | KS | | | (4.370000 | ) |
ELS Properties 1-1030 | | | | Haskell | | KS | | | (4.370000 | ) |
Eric Bradley 1-17 | | | | Haskell | | KS | | | (4370000 | ) |
Feight A 1-27 | | | | Haskell | | KS | | | (4.370000 | ) |
Feight A 4-27 | | | | Haskell | | KS | | | (4.370000 | ) |
FeightA 5 Lower | | | | Haskell | | KS | | | (4.370000 | ) |
Feight A 5 Upper | | | | Haskell | | KS | | | (4.370000 | ) |
Feight A 6 (SWDW) | | | | Haskell | | KS | | | (4.370000 | ) |
Garner 1-1624 | | | | Haskell | | KS | | | (4.370000 | ) |
Garner 11-J24-30-34 | | | | Haskell | | KS | | | (4.370000 | ) |
Garner 12-124-30-34 | | | | Haskell | | KS | | | (4.370000 | ) |
Garner 22-H24-30-34 | | | | Haskell | | KS | | | (4.370000 | ) |
Grant Maurice 1-30 | | | | Haskell | | KS | | | (4.370000 | ) |
Hall SG1 | | | | Haskell | | KS | | | (4.370000 | ) |
Hall SG2 | | | | Haskell | | KS | | | (4.370000 | ) |
Hoffman 3-019-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Hon 1-930 | | | | Haskell | | KS | | | (4.370000 | ) |
James Unit A A B 1 | | | | Haskell | | KS | | | (4.370000 | ) |
Kenneth 5-E 14-78-33(S14T28R33) | | | | Haskell | | KS | | | (4.370000 | ) |
Kilgore 5-E33-29-39 | | | | Haskell | | KS | | | (4.370000 | ) |
Kilgore Trust 9-H | | | | Haskell | | KS | | | (4.370000 | ) |
Koehn 5-F2-28-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Lavelette 1-C12-27-33 | | | | Haskell | | KS | | | (4.370000 | ) |
LC Black 1-417 | | | | Haskell | | KS | | | (4.370000 | ) |
Luciene Black 10-17 | | | | Haskell | | KS | | | (4.370000 | ) |
McKinley 1-1519 | | | | Haskell | | KS | | | (4.370000 | ) |
McKinley 15-P19-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
McKinley 16-119-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Megan Janae 1-30 | | | | Haskell | | KS | | | (4.370000 | ) |
Mertia Ammerman 1 | | | | Haskell | | KS | | | (4.370000 | ) |
Mertia Ammerman 2 | | | | Haskell | | KS | | | (4.370000 | ) |
Murphy 6-L27-29-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Nanninga Trust 1-430 | | | | Haskell | | KS | | | (4.370000 | ) |
Nanninga Trust 34-E30-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
RB Garner 2 | | | | Haskell | | KS | | | (4.370000 | ) |
Riphahn 13-035-28-34 | | | | Haskell | | KS | | | (4.370000 | ) |
Roger Wilson 1-519 | | | | Haskell | | KS | | | (4.370000 | ) |
Schnellbacher A-4 | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker 1-23 (Gas Unit) | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker 19-C | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker 33 | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker 34-L30-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
| | | | | | | | | | |
LEASE NAME | | FIELD | | COUNTY | | STATE | | ADJUSTMENT | |
---|
Stalker Eta! 28-130-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker Etal 29-030-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker Etal 30-K30-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker Etal 31-A30-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Stalker Etal 32-H30-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 112 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 114 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 117 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 119 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 121 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 122 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 123 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P02 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P03 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P04 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P07 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P11 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P12 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P13 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P14 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P15 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P18 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P21 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P22 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P23 | | | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU P24 | | | | Haskell | | KS | | | (4.370000 | ) |
Walter E. Preedy B1 | | | | Haskell | | KS | | | (4.370000 | ) |
Walter E. Preedy B3 | | | | Haskell | | KS | | | (4.370000 | ) |
Watkins 2-N17-30-32 | | | | Haskell | | KS | | | (4.370000 | ) |
Watkins Gas Un F-4 | | | | Haskell | | KS | | | (4.370000 | ) |
Wilson Gas Unit F3 | | | | Haskell | | KS | | | (4.370000 | ) |
Wilson-Dent Trust 27-F19-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Wright B 28 | | | | Haskell | | KS | | | (4.370000 | ) |
Wright C Cl | | | | Haskell | | KS | | | (4.370000 | ) |
Wright GU B1 | | | | Haskell | | KS | | | (4.370000 | ) |
Wyatt Trusts 9-N16-30-33 | | | | Haskell | | KS | | | (4.370000 | ) |
Anton 1-21 | | Victory | | Haskell | | KS | | | (4.370000 | ) |
Black 22C (Sec 7, T30, R33W) | | Victory | | Haskell | | KS | | | (4.370000 | ) |
Marie 1-21 | | Victory | | Haskell | | KS | | | (4.370000 | ) |
Poppe Trust 22-J17-30-33 | | Victory | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 8 | | Victory | | Haskell | | KS | | | (4.370000 | ) |
SWLVLU 9 | | Victory | | Haskell | | KS | | | (4.370000 | ) |
Fletcher 7-J21-23-37 | | | | Kearny | | KS | | | (4.370000 | ) |
Kisel 1-1215-2 | | | | Kearny | | KS | | | (4.370000 | ) |
Miles 1-1128 | | | | Kearny | | KS | | | (4.370000 | ) |
BFC Warring Trust 2 | | | | Morton | | KS | | | (4.370000 | ) |
Blackwell Al | | | | Morton | | KS | | | (4.370000 | ) |
BOWKER | | | | Morton | | KS | | | (4.370000 | ) |
Bowker Gas Unit B1 1-2 | | | | Morton | | KS | | | (4.370000 | ) |
Dos Reatas 5-E26-32-40 | | | | Morton | | KS | | | (4.370000 | ) |
Dos Reatas 6-M26-32-40 | | | | Morton | | KS | | | (4.370000 | ) |
Green 4J S29-T32-R39 | | | | Morton | | KS | | | (4.370000 | ) |
Hull 5-G30-32-39 | | | | Morton | | KS | | | (4.370000 | ) |
| | | | | | | | | | |
LEASE NAME | | FIELD | | COUNTY | | STATE | | ADJUSTMENT | |
---|
Johns 1-1324 | | | | Morton | | KS | | | (4.370000 | ) |
Juanita 5-M29-32-39 | | | | Morton | | KS | | | (4.370000 | ) |
Milbum 5-N28-31-39 | | | | Morton | | KS | | | (4.370000 | ) |
Osborne B-3 | | | | Morton | | KS | | | (4.370000 | ) |
Trahem 6-G20-31-39 | | | | Morton | | KS | | | (4.370000 | ) |
Becker Trust 5 | | | | Seward | | KS | | | (4.370000 | ) |
Becker Trust 6 | | | | Seward | | KS | | | (4.370000 | ) |
Chandler Carroll 1-19 | | | | Seward | | KS | | | (4.370000 | ) |
Franziand Co. 7-B 22-31S-33W | | | | Seward | | KS | | | (4.370000 | ) |
Hatfield Eta! Unit 5-J22-31-33 | | | | Seward | | KS | | | (4.370000 | ) |
Lemert B H 1 | | | | Seward | | KS | | | (4.370000 | ) |
Wendy Marie 1-30 | | | | Seward | | KS | | | (4.370000 | ) |
Simpson Trust 5-J4-31-33 | | Victory | | Seward | | KS | | | (4.370000 | ) |
Abbey Michelle 1-35 | | | | Stanton | | KS | | | (4.370000 | ) |
Amanda Jill 1-36 | | | | Stanton | | KS | | | (4.370000 | ) |
Amber Michelle 1-34 | | | | Stanton | | KS | | | (4.370000 | ) |
Andrea Frances 1-21 | | | | Stanton | | KS | | | (4.370000 | ) |
Andrea Lyn 1-9 | | | | Stanton | | KS | | | (4.370000 | ) |
Benjamin Lee (Sec 25, T29S, R40W) | | | | Stanton | | KS | | | (4.370000 | ) |
Brian Daniel 1-34 | | | | Stanton | | KS | | | (4.370000 | ) |
Christopher Jared 1-8 | | | | Stanton | | KS | | | (4.370000 | ) |
Collingwood 1-28 | | | | Stanton | | KS | | | (4.370000 | ) |
Esser 2-16 | | | | Stanton | | KS | | | (4.370000 | ) |
Federal Land Bank 4-21 | | | | Stanton | | KS | | | (4.370000 | ) |
Federal Land Bank 5-21 | | | | Stanton | | KS | | | (4.370000 | ) |
Fell Gas Unit 4A | | | | Stanton | | KS | | | (4.370000 | ) |
Garay 6-J21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Jay Morris 1-8 | | | | Stanton | | KS | | | (4.370000 | ) |
Kayla Marie 1-2 | | | | Stanton | | KS | | | (4.370000 | ) |
Kaylee Brooks 1-35 | | | | Stanton | | KS | | | (4.370000 | ) |
KU 6-120-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
KU 7-J20-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
KU 8-P20-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
KU 9-P20-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Lynn Stacy 1-22 | | | | Stanton | | KS | | | (4.370000 | ) |
McPherson College 4-E21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
McPherson College 5-F21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Mitchell Trust 5-E23-29-40 | | | | Stanton | | KS | | | (4.370000 | ) |
R & L Farms 1-28 | | | | Stanton | | KS | | | (4.370000 | ) |
Sarah Jane 1-34 | | | | Stanton | | KS | | | (4.370000 | ) |
Shonn Gregory 1-35 | | | | Stanton | | KS | | | (4.370000 | ) |
Trent David 1-23 | | | | Stanton | | KS | | | (4.370000 | ) |
Wade Allen 1-36 | | | | Stanton | | KS | | | (4.370000 | ) |
Western Feed Yard 1-1133 | | | | Stanton | | KS | | | (4.370000 | ) |
Western Feed Yard 2-1433 | | | | Stanton | | KS | | | (4.370000 | ) |
Williams 1-L21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Williams 2-L21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Williams 3-K21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Williams 4-L21-29-39 | | | | Stanton | | KS | | | (4.370000 | ) |
Wilson Unit 1 | | | | Stanton | | KS | | | (4.370000 | ) |
Yardley Frederick 1-25 | | | | Stanton | | KS | | | (4.370000 | ) |
Yashell Shirin 1-35 | | | | Stanton | | KS | | | (4.370000 | ) |
LTW Trust 12-E26-29-39 | | Big Bow | | Stanton | | KS | | | (4.370000 | ) |
| | | | | | | | | | |
LEASE NAME | | FIELD | | COUNTY | | STATE | | ADJUSTMENT | |
---|
Elliott Spencer 1 | | Liverpool Cemetery | | Stanton | | KS | | | (4.370000 | ) |
Josline B-2 | | | | Stevens | | KS | | | (4.370000 | ) |
Swalar Al | | | | Stevens | | KS | | | (4.370000 | ) |
Swalar B1 | | | | Stevens | | KS | | | (4.370000 | ) |
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