Re: Operating Agreement

Candy - This isn't a matter I'm working on.

Candace L Bywaters
08/29/2000 09:40 AM

To: Ann Elizabeth White/HOU/ECT@ECT
cc: Gerald Nemec/HOU/ECT@ECT
Subject: Operating Agreement

I'm losing track, here. Is anyone working on an Operating Agreement with
Merl Vanek for the water well on Vanek's grazing lease at
Bammel? I believe I sent a copy of Vanek's Grazing Lease to Gerald a week or
so ago.

Whoever has the assignment, please include language concerning not only
Vanek's full responsibility for operation and maintenance at no cost or
expense to HPL, but also his accountability to bear and fines, charges or
fees associated with the ownership and operation of the well.

Please send me a draft of this Operating Agreement at your earliest
opportunity. Ir's effective date will be the same as the effective date for
HPL's ownership of this well.