Yates Term Sheet

Yates recently agreed (verbally to Brian) to the terms of the attached
sheet. I do not know if or when they will sign an LOU; however, as we've
been doing with other customers in the interest of time, we would like to get
Yates a first draft of purchase and gathering documents as soon as possible.
Please call with any questions. Thanks.

Dan

P.S. F.Y.I., As you will see in this term sheet, Yates is installing their
own first stage of compression (screw) and wellhead gathering, similar to
Ind. Production.