PLAINS MARKETING, L.P. LETTERHEAD] Crude Oil Purchase Contract


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Exhibit 10.8

[PLAINS MARKETING, L.P. LETTERHEAD]

Crude Oil Purchase Contract

CONTRACT NO. 4863-1003   May 05, 2005

This contract by and between Ellora Operating, L.P. ("Ellora"), with an address of ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇—and Plains 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:

1.   TERM:   The primary term shall be a period of one month from November 01, 2004 to December 01, 2004.

 
 
 
 
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.
 
QUALITY
 
 
    AND    
    CRUDE    
    TYPE:   Rocky Mountain Sweet crude oil.

3.
 
QUANTITY:
 
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.
 
DELIVERY:
 
Shall be made at the well tankage into PMLP's designated transportation facilities.

5.
 
PRICE:
 
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.
 
PAYMENT:
 
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 ▇▇▇▇▇ 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.

1

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.
          ▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
          ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
          Phone: (▇▇▇) ▇▇▇-▇▇▇▇
          Fax: (▇▇▇) ▇▇▇-▇▇▇▇

Invoices shall be mailed or faxed to PMLP as follows:

          Plains Marketing, L.P.
          ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
          ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
          Phone: (▇▇▇) ▇▇▇-▇▇▇▇
          Fax: (▇▇▇) ▇▇▇-▇▇▇▇

Notices and all other correspondence to Ellora shall be mailed or faxed as follows:

          Ellora Operating, L.P.
          ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
          ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
          Phone:(▇▇▇) ▇▇▇ ▇▇▇▇
          Fax:(▇▇▇) ▇▇▇ ▇▇▇▇

BUYER   SELLER

Plains Marketing, LP.
 
Ellora Operating, LP.
By Plains Marketing GP Inc.
Its General Partner		        

Agreed and accepted this 19 day of June, 2005.
 
Agreed and accepted this 6th day of June, 2005.

By:
 
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
 
By:
 
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇

Name:
 
▇▇▇▇ ▇. ▇▇▇▇▇▇
 
Name:
 
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇

Title:
 
Director, West Texas Region and Attorney in Fact
 
Title:
 
Manager-Land/Marketing

jac
Log No.: 17049

2

Plains Marketing L.P.                       May 05, 2005
 
Plains Contract:
 
4863-1003
 
Effective 03-01-2005
 
Exhibit "A"
 
 
 
Partner contract:
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Page 1 of 1

   

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    

 
049340
 
SNIFF LATERAL DRIP STATION
 
ELLORA OPERATING LP
 
BENT
 
CO
 
S2078
 
EDO
 
$
0.0000
 
 
100.00000
%
Capped 44.90 API
 
 

 
049341
 
MCCLAVE SEPARATOR
 
ELLQRA OPERATING LP
 
▇▇▇▇▇
 
▇▇
 
▇▇▇▇▇
 
EDO
 
$
0.0000
 
 
100.00000
%
Capped 44.90 API
 
 

 
074223‡
 
LOS ANIMAS GATHERING COMPRESSO
 
ELLORA OPERATING LP
 
BENT
 
CO
 
S2078
 
EDQ
 
$
0.0000
 
 
100.00000
%
Capped 44.90 API
 
 

 
106918
 
▇▇▇▇▇ A
 
ELLORA OPERATING LP
 
BENT
 
CO
 
S2078
 
EDO
 
$
0.0000
 
 
100.00000
%
Capped 44.90 API
 
 

 
123195
 
▇▇▇▇▇▇▇ D #1
 
ELLORA OPERATING LP
 
BENT
 
CO
 
S2078
 
EDO
 
$
0.0000
 
 
100.00000
%
Capped 44.90 API
 
 

 
128645
 
TEMPLE.B
 
ELLORA OPERATING LP
 
BENT
 
CO
 
S2078
 
EDQ
 
$
0.0000
 
 
100.00000
%
Capped 44.90 API
 
 
(*)
S2078 PLAINS MARKETING LP-COLORADO SOUTHEASTERN

(**)
EQUAL DAILY QUANTITIES

3



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Filed: April 21st, 2009