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Exhibit 10.8
[PLAINS MARKETING, L.P. LETTERHEAD]
Crude Oil Purchase Contract
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| CONTRACT NO. 4863-1003 | | May 05, 2005 |
This contract by and betweenEllora Operating, L.P. ("Ellora"), with an address of 5480 Valmont, Suite 350, Boulder, CO 80301—andPlains Marketing, L.P., ("PMLP"), covering the sale and delivery by Ellora and the purchase and receipt by PMLP of the hereinafter specified oil is entered into in accordance with the following feints and conditions:
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| 1. | | TERM: | | The primary term shall be a period of one month from November 01, 2004 to December 01, 2004. |
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The term shall be automatically extended for a Secondary Term month to month thereafter unless notice of non-renewal is given by either party hereto upon not less than thirty (30) days advance written notice to the other party. |
2. |
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QUALITY |
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| | | AND | | |
| | | CRUDE | | |
| | | TYPE: | | Rocky Mountain Sweet crude oil. |
3. |
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QUANTITY: |
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An amount equal to actual lease receipts from lease(s) indicated on Exhibit "A" attached hereto and made a part hereof. (Approximately 26 barrels per day). |
4. |
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DELIVERY: |
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Shall be made at the well tankage into PMLP's designated transportation facilities. |
5. |
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PRICE: |
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For the crude oil sold and delivered hereunder, PMLP agrees to pay a price per barrel equal to SPLLC Colorado Southeastern Crude Oil Posting, capped 44.9ø API gravity. For pricing purposes, deliveries will be calculated on equal daily quantities. |
6. |
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PAYMENT: |
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Payment shall be made by check on or about the twentieth (20th) day of-the month following the month of delivery. |
PMLP's General Provisions dated February 01, 2001 are incorporated herein by reference and made a part hereof. To the extent of any conflict between the provisions herein and the General Provisions, the provisions herein shall govern.
If Division Orders have been issued to Ellora by PMLP and executed by Ellora covering the wells on Exhibit A, the Division Orders are incorporated herein and made a part hereof. The provisions of this Agreement, including but not limited to those relating to term, rights of termination, price and otherwise, shall be applicable and govern, notwithstanding any provision in the Division Orders to the contrary.
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All invoices and notices given pursuant to this agreement shall be in writing, telex or faxed and shall be deemed delivered when received by the other party at the address specified below:
Notices and all other correspondence to PMLP shall be mailed or faxed as follows:
Plains Marketing, L.P.
10 Desta Drive, Suite 200E
Midland, Texas 79705
Phone: (432) 683-9622
Fax: (432) 683-0849
Invoices shall be mailed or faxed to PMLP as follows:
Notices and all other correspondence to Ellora shall be mailed or faxed as follows:
Ellora Operating, L.P.
5480 Valmont, Suite 350
Boulder, CO 80301
Phone:(303) 444 8881
Fax:(303) 417 1000
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| BUYER | | SELLER |
Plains Marketing, LP. |
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Ellora Operating, LP. |
By Plains Marketing GP Inc.
Its General Partner | | | | |
Agreed and accepted this 19 day of June, 2005. |
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Agreed and accepted this 6th day of June, 2005. |
By: |
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/s/ MARK L. THOMAS
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By: |
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/s/ CHANDRA C. BAESLER
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Name: |
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Mark L. Thomas |
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Name: |
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Chandra C. Baesler |
Title: |
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Director, West Texas Region and Attorney in Fact |
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Title: |
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Manager-Land/Marketing |
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Log No.: 17049
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| Plains Marketing L.P. | | | | | | | | | | | | May 05, 2005 |
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Plains Contract: |
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4863-1003 |
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Effective 03-01-2005 |
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Exhibit "A" |
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Partner contract: |
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PM
Lease
‡=Intact | | Lease | | Operator | | County/
Parish | | State | | Price
Code* | | Price
Method** | | Applicable
Premium
or
(Deduct) | | Percent | | Gravity | | State
Lease |
|---|
| | 014910 | | SNIFF E | | ELLORA OPERATING LP | | BENT | | CO | | S2078 | | EDQ | | $ | 0.0000 | | | 100.00000 | % | Capped 44.90 API | | |
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049340 |
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SNIFF LATERAL DRIP STATION |
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ELLORA OPERATING LP |
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BENT |
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CO |
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S2078 |
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EDO |
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$ |
0.0000 |
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100.00000 |
% |
Capped 44.90 API |
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049341 |
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MCCLAVE SEPARATOR |
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ELLQRA OPERATING LP |
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KIOWA |
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CO |
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S2078 |
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EDO |
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$ |
0.0000 |
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100.00000 |
% |
Capped 44.90 API |
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074223‡ |
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LOS ANIMAS GATHERING COMPRESSO |
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ELLORA OPERATING LP |
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BENT |
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CO |
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S2078 |
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EDQ |
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$ |
0.0000 |
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100.00000 |
% |
Capped 44.90 API |
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106918 |
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STARK A |
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ELLORA OPERATING LP |
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BENT |
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CO |
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S2078 |
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EDO |
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$ |
0.0000 |
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100.00000 |
% |
Capped 44.90 API |
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123195 |
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WOLLERT D #1 |
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ELLORA OPERATING LP |
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BENT |
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CO |
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S2078 |
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EDO |
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$ |
0.0000 |
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100.00000 |
% |
Capped 44.90 API |
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128645 |
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TEMPLE.B |
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ELLORA OPERATING LP |
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BENT |
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CO |
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S2078 |
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EDQ |
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$ |
0.0000 |
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100.00000 |
% |
Capped 44.90 API |
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- (*)
- S2078 PLAINS MARKETING LP-COLORADO SOUTHEASTERN
- (**)
- EQUAL DAILY QUANTITIES
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