EOTT ENERGY Operating Limited Partnership 5400 ALDRIN COURT BAKERSFIELD, CA 93313 September 2, 1999 CRUDE OIL PURCHASE CONTRACT HALLADOR PRODUCTION COMPANY 1660 LINCOLN STREET, SUITE 2700 DENVER, CO 80264 EOTT CONTRACT #36937 The undersigned "Seller" whether one or more, hereby represents, warrants and declares that it is authorized to deliver and sell (and receive 100% of the proceeds) for all of the "oil" produced from the following: Lease (s): South Cuyama Lease #5093872; Hibberd Lease #5093873 Described as: Santa Barbara County, CA This Crude Oil Purchase Agreement ("Agreement") between Hallador Production Company, hereinafter called "Seller," and EOTT ENERGY Operating Limited Partnership, hereinafter called "Buyer," sets forth the terms and conditions under which Seller agrees to sell and deliver, and Buyer agrees to purchase and receive, the crude and/or condensate ("oil") from the above described Lease(s), to wit: I. TERM: Effective January 01, 2000 through March 31, 2000 continuing thereafter on a 30 day evergreen II. TYPE OF OIL: Buena Vista Hills III. QUANTITY: About 700 to 1400 barrels per day IV. DELIVERY: Delivery shall be made from designated shipping tanks and/or through sales meters into EOTT's designated carrier from the South Cuyama Lease #5093872; Hibberd Lease #5093873. Title shall pass from Hallador Production Company to EOTT as crude oil passes through the outlet flange of the tank. V. PRICE: Average of Chevron, Union, & Equiva's Buena Vista Posting, plus $0.85 per barrel, gravity adjusted, EDQ. VI. PAYMENT: Payment shall be made on the twentieth (20th) of the month following the month of delivery. VII. INVOICES: All invoices, invoicing documents and invoicing matters for EOTT Energy Operating Limited Partnership, shall be sent to the following address: CONTRACTS: EOTT ENERGY Operating Limited Partnership Attn: Shellie Williams/Lease Acquisitions 5400 Aldrin Court Bakersfield, CA 93313 Phone #(661)397-3900 Fax #(661)834-5410 INVOICES: EOTT ENERGY Operating Limited Partnership Attn: Crude Oil Accounting 111 West Ocean Blvd., Suite 1700 Long Beach, CA 90802 Fax invoices to: (562)436-8319 DIVISION ORDERS: EOTT ENERGY Operating Limited Partnership Attn: Division Order Department P.O. Box 4666 Houston, TX 77251-4666 HALLADOR PRODUCTION COMPANY EOTT ENERGY Operating Limited Partnership By: /S/VICTOR P. STABIO By: /S/TED MCCURDY Printed: Victor P. Stabio Printed: Ted McCurdy Title: President Title: Manager, Lease Acquisitions Date: 9/3/99 Date: September 2, 1999 Tax ID#: 84-0428142 Please return one executed copy in the self addressed envelope. EOTT ENERGY CORP. General Partner