Penn Virginia Oil & Gas GP, LLC and Penn Virginia Oil & Gas L.P. v. Alfredo De La Garza, Individually and as Next Friend for I. D. L. G. and K. D. L. G., Minors, and John Paul Adame, Individually and A/N/F for C.A.A., J.P.A., Jr., and J.N.A.

Opinion

ACCEPTED 01-15-00867-CV FIRST COURT OF APPEALS HOUSTON, TEXAS 11/24/2015 10:18:56 AM CHRISTOPHER PRINE CLERK

NO. 01-15-00867-CV

FILED IN 1st COURT OF APPEALS HOUSTON, TEXAS FIRST COURT OF APPEALS 11/24/2015 10:18:56 AM HOUSTON, TEXAS CHRISTOPHER A. PRINE Clerk

PENN VIRGINIA OIL & GAS GP, L.L.C. & PENN VIRGINIA OIL AND GAS L.P., Appellants.

V.

ALFREDO DE LA GARZA, INDIVIDUALLY AND AS NEXT OF FRIEND FOR XXXXXX XX XX XXXXX AND XXXXXXXX XX XX XXXXX, MINORS & JOHN PAUL ADAME, INDIVIDUALLY AND AS NEXT OF FRIEND OF XXXXXXXXX XXXXXX XXXXX, XXXX XXXX XXXXX, XXX, AND XXXX XXXXXXXX XXXXX, MINORS, Appellees.

On Appeal from the 215TH Judicial District Court, Harris County, Texas Cause No. 2014-42519

APPELLANTS’ RESPONSE TO APPELLEE’S MOTION TO DISMISS

To the Honorable Justices of the First Court of Appeals:

Appellants, Penn Virginia Oil & Gas GP, LLC and Penn Virginia Oil & Gas,

L.P. (collectively “Penn Virginia”) file this Response to Appellee Alfredo De La

Garza’s Motion to Dismiss. In support thereof, Penn Virginia would respectfully

show this Honorable Court as follows:

1. In his Motion at paragraphs 5 and 6, Appellee argues that Penn

Virginia’s appeal should be dismissed because Penn Virginia filed its Notice of

Appeal outside of the 20 day deadline to do so under Texas Rule of Appellate

Procedure 28.1, and that Penn Virginia failed to “reasonably explain the need for

an extension” in its Motion for Extension of Time to File Notice of Appeal. (See

Penn Virginia’s Motion for Extension of Time to File, attached as Exhibit A, and

Penn Virginia’s Reply to Appellees’ Objection, attached as Exhibit B.)

2. Rather than reiterate all of the arguments made and facts asserted in

Penn Virginia’s underlying Motion for Extension of Time to File and Penn

Virginia’s Reply to Appellees’ Objection to same, Penn Virginia would simply

direct this Court to those Motions and the affidavits submitted in support of same,

all of which are attached to this Response as Exhibits A and B, and which are on

file with this Court. Penn Virginia would show further that this Court has not

denied Penn Virginia’s Motion for Extension, therefore, there has been no judicial

determination that the Court lacks jurisdiction as a result of the date of filing. That

is to say, if this Court grants Penn Virginia’s Motion for Extension to File, then

Penn Virginia’s Notice of Appeal filed on October 13, 2015 will be considered

timely filed and there will be no question as to jurisdiction.

CONCLUSION & PRAYER

In light of the foregoing, Appellants, Penn Virginia Oil & Gas GP, LLC and

Penn Virginia Oil & Gas, L.P. pray that this Court deny Appellee’s Motion to

Dismiss. Penn Virginia further prays for such other and further relief, both special and

general, at law and in equity, to which it may be justly entitled.

Respectfully submitted,

GALLOWAY, JOHNSON, TOMPKINS BURR & SMITH

/s/ Thomas J. Smith Thomas J. Smith State Bar No. 00788934 tsmith@gallowayjohnson.com Kelly C. Hartmann State Bar No. 24055631 khartmann@gallowayjohnson.com Alexis B. Hester State Bar No. 24072807 ahester@gallowayjohnson.com 1301 McKinney, Suite 1400 Houston, Texas 77010 (713) 599-0700 (713) 599-0777 – facsimile

ATTORNEYS FOR APPELLANTS, PENN VIRGINIA OIL & GAS GP, LLC AND PENN VIRGINIA OIL & GAS, L.P.

CERTIFICATE OF SERVICE

I hereby certify that, in accordance with Rule 9.5 of the Texas Rules of Appellate Procedure, I have served the foregoing document upon the following attorneys by electronic service, personal mail, by commercial delivery service or by fax on November 24th, 2015:

John David Hart J. Javier Gutierrez LAW OFFICES OF JOHN DAVID HART Ana Laura Gutierrez Wells Fargo Tower THE GUTIERREZ LAW FIRM, INC. 201 Main Street, Suite 1720 700 East Third Street Fort Worth, Texas 76102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 361-664-7245 Counsel for Appellee, Alfredo Counsel for Appellee, John Paul De La Garza and his minor children Adame and his minor children

/s/ Kelly C. Hartmann Kelly C. Hartmann

ACCEPTED 01-15-00867-CV FIRST COURT OF APPEALS HOUSTON, TEXAS 10/14/2015 4:27:54 PM CHRISTOPHER PRINE CLERK

NO. 01-15-00867-CV

FIRST COURT OF APPEALS HOUSTON, TEXAS

PENN VIRGINIA OIL & GAS GP, L.L.C. & PENN VIRGINIA OIL AND GAS L.P., Appellants.

V.

ALFREDO DE LA GARZA, INDIVIDUALLY AND AS NEXT OF FRIEND FOR XXXXXX XX XX XXXXX AND XXXXXXXX XX XX XXXXX, MINORS & JOHN PAUL ADAME, INDIVIDUALLY AND AS NEXT OF FRIEND OF XXXXXXXXX XXXXXX XXXXX, XXXX XXXX XXXXX, XXX, AND XXXX XXXXXXXX XXXXX, MINORS, Appellees.

On Appeal from the 215TH Judicial District Court, Harris County, Texas Cause No. 2014-42519

MOTION FOR EXTENSION OF TIME TO FILE NOTICE OF APPEAL

To the Honorable Justices of the First Court of Appeals:

Appellants, Penn Virginia Oil & Gas GP, LLC and Penn Virginia Oil & Gas,

L.P. (collectively “Penn Virginia”) file this Motion for Extension of Time to File

EXHIBIT "A"

Notice of Appeal pursuant to Rules 26.3 and 10.5(b)(2). In support thereof, Penn

Virginia would respectfully show this Honorable Court as follows:

I. FACTUAL SUMMARY

1. This appeal arises out of a September 11, 2015 Order denying

Appellant’s Motion to Compel Arbitration and to Abate, which was filed in the

215th Judicial District Court of Harris County, Texas.1 The underlying litigation,

which is currently set for trial on May 31, 2016, involves an April 29, 2014 oilfield

incident near Shiner, Texas, in which two employees of Nabors Completion &

Productions Services Co. (“NCPS”) were injured when an improperly constructed

high pressure flow line parted and caused the sudden release of pressurized gas.

The two employees (now, Appellees) were standing near the flow line when the

line separated. NCPS was a well site contractor that had been hired by Penn

Virginia, the operator, to perform workover operations. Both Appellees were

members of the NCPS day crew.

2. Nabors Industries, Inc. (“Nabors”) and its subsidiaries, one of which

is NCPS, have a valid arbitration program (known as the Nabors Dispute

Resolution Program or “DRP”) which requires that disputes involving injuries to

employees that are incurred during the course and scope of employment be

1 See Exhibit “A,” Order Denying Motion to Compel Arbitration.

submitted to final and binding arbitration. Appellees acknowledged and accepted

the terms of the DRP as a condition of their employment with NCPS.

3. The DRP applies to all direct and indirect subsidiaries of Nabors, all

current and former employees of the aforementioned subsidiaries, and any

“Electing Entity” that has agreed to be bound by the terms of the agreement. Penn

Virginia is an “Electing Entity” and agreed on more than one occasion to be bound

by the terms of the DRP, first in a 2008 drilling contract and later in a 2010 drilling

contract. In Penn Virginia’s Motion to Compel Arbitration and Abate, Penn

Virginia argued that Appellee’s individual claims fall within the scope of the DRP,

as both were employees of NCPS at the time of the incident and both allege that

their injuries occurred while in the course and scope of their employment.2

Because Penn Virginia is an Electing Entity to the Nabors DRP, Appellees’ claims

against Penn Virginia fall within the scope of the arbitration provisions set forth in

the DRP.

4. On June 18, 2015, Penn Virginia filed its Motion to Compel

Arbitration and Abate. The matter was set for hearing on July 31, 2015 but was

reset for September 11, 2015 after counsel for Appellee’s made requests for

various depositions and additional discovery relating to the arbitration agreement.

2 See “Exhibit B,” Motion to Compel Arbitration.

Following the hearing and on September 11, 2015, the trial court issued an Order

denying Penn Virginia’s Motion to Compel Arbitration.

5. On October 1, 2015, Penn Virginia filed a Motion for Reconsideration

of the Court’s Order, and with it attached an Affidavit from Mr. Ernest Nelson,

Vice President of Contracts for Nabors, to address a latent ambiguity raised by the

Court during the hearing. The trial court heard the Motion for Reconsideration on

October 12, 2015, and denied the Reconsideration on that same day.

II. ARGUMENTS & AUTHORITIES

6. Penn Virginia now moves this Court of Appeals for an extension of

time to file its Notice of Appeal in light of the Motion for Reconsideration that was

presented to the Court and denied on October 12, 2015.3

7. Texas Rule of Appellate Procedure 26.3 states that “the appellate

court may extend the time to file the notice of appeal if, within 15 days after the

deadline for filing the notice of appeal, the party: “(a) files in the trial court the

notice of appeal; and (b) files in the appellate court a motion complying with Rule

10.5(b).”4 Rule 10.5(b)(2) provides the pleading requirements for a motion to

extend time to file a Notice of Appeal. Under Rule 10.5(b)(2), appellant must

3 See “Exhibit C,” Motion for Reconsideration and “Exhibit D,” Order Denying Motion for Reconsideration. 4 See Exhibit “E,” a File Stamped Copy of Penn Virginia’s Notice of Appeal, which was filed with the trial court on October 13, 2015.

provide the deadline for filing “the item in question;” (in this case, the Notice of

Appeal); “the facts relied on to reasonably explain the need for an extension;”

identification of the trial court, “the date of the trial court’s judgment or appealable

order, and the case number and style of the case in trial court.”

8. In this instance, Penn Virginia’s deadline to file the Notice of Appeal

would have been twenty days from September 11, 2015, pursuant to Texas Rule of

Appellate Procedure 28.1. Twenty days from September 11, 2015 was October 1,

2015. If this Motion is granted, the extended deadline will fall on October 16,

2015. There have been no other requests for extension of time to file this Notice of

Appeal. The trial court’s judgment or appealable order was entered on September

11, 2015, and the case number and style of the case in the trial court is as follows:

Cause No. 2014-42519, Alfredo De La Garza, Individually and as Next Friend for

xxxxxx xx xx xxxxx and xxxxxxxx xx xx xxxxx, minors v. Penn Virginia Oil & Gas,

L.P., Penn Virginia Oil & Gas GP, L.L.C., Mike Ferguson, Trifecta Oilfield

Services, L.L.C., Cudd Pressure Control, Inc., Roywell Services, Inc., and Oaks

Personnel Services, Inc. d/b/a The Oaks Group.5

9. The facts relied on to explain the need for an extension include the

following:

5 It is relevant to note that Appellees non-suited all defendants but for Penn Virginia and the Penn Virginia Company Man, Mike Ferguson.

- At the September 11, 2015 hearing, the Court noted that it would deny

the Motion to Compel Arbitration and to Abate because the contracts

entered into between Penn Virginia and Nabors in which Penn Virginia

became an Electing Entity to the Nabors DRP contemplated application

to “past and present” employees. The trial court reasoned that because

neither of the Appellees were past or present employees of NCPS at the

time the contracts were entered into, Penn Virginia’s status as an Electing

Entity did not apply to the dispute between Appellees and Penn Virginia,

and therefore the DRP did not apply.

- On October 1, 2015, Penn Virginia filed a Motion for Reconsideration in

which it presented the Affidavit of Ernest Nelson who, as set forth above,

is the Vice President of Contracts for Nabors. Mr. Nelson entered into

one of the contracts with Penn Virginia on behalf of Nabors and has

personal knowledge as to the intent of Nabors when it prepared the

agreements.

- In the Motion for Reconsideration, Penn Virginia argues that the

language providing that “Penn Virginia is an Electing Entity as to all

disputes with ‘present and former employees and applicants of Nabors,’”

must be read to mean that Penn Virginia is an Electing Entity “as to all disputes involving present and former employees at the time the dispute

arises,” and not at the time the contract was entered into. In other words,

“Penn Virginia’s status as an Electing Entity is not limited to present and

former employees as of 2008 or 2010” (the time the underlying contracts

were entered into) but instead “applies as to all persons who are present

Nabors employees or former Nabors employees at the time of the

dispute.”

- In this case, the dispute arose between Penn Virginia and Appellees on

April 29, 2014, at which time both injured parties were NCPS employees.

Because Penn Virginia became an Electing Entity to the Nabors Dispute

Resolution Program in 2008 and again in 2010, the DRP applies as to the

dispute between Penn Virginia and Appellees.

- Counsel for Penn Virginia mistakenly believed that the deadline to file its

Notice of Appeal from the Order denying the Motion to Compel

Arbitration was thirty days from September 11, 2015. Counsel

determined after the actual deadline had passed that the appealable Order

was an accelerated appeal and that Penn Virginia in fact had twenty days

from the date of the September 11, 2015 Order. Penn Virginia now files

its Notice of Appeal and this Motion to Extend the Deadline to file its

Notice of Appeal by fifteen days from October 1, 2015.

10. The failure to file a Notice of Appeal on October 1, 2015 was not

deliberate or done in attempt to circumvent the Texas Rules. Counsel for Penn

Virginia had a good faith belief that the deadline to file its Notice of Appeal of the

Order denying the Motion to Compel Arbitration fell thirty days from the date of

the September 11, 2015 Order, pursuant to Rule 26.1. Thus, counsel believed that

the deadline to file was October 12, 2015 (as October 11, 2015 fell on a Sunday).

In light of counsel’s erroneous understanding of the deadline, it was Penn

Virginia’s belief that it could file the Motion for Reconsideration, proceed to oral

argument on the morning of October 12, 2015, and immediately and timely file the

Notice of Appeal from the original September 11, 2015 judgment if the Court then

denied the Motion for Reconsideration.

11. In actuality, an appeal from an Order denying a Motion to Compel

Arbitration is, pursuant to Rule 28.1(a), an accelerated appeal, which permits only

twenty days to file the Notice of Appeal. Following counsel’s research as to

available remedies, Penn Virginia has made all available and good faith efforts to

seek an extension under Rule 10.5(b)(2) to file its Notice of Appeal.

12. Before counsel became aware of the actual and correct deadline,

counsel believed it was in Penn Virginia’s best interest to allow the trial court to

consider the Affidavit of Ernest Nelson and evaluate the Motion for

Reconsideration before the Notice of Appeal was filed. Counsel further believed

(in error) that the “thirty day deadline” would permit the trial court to review the

Motion for Reconsideration and evaluate the Affidavit presented prior to divesting

the trial court of its jurisdiction. Given the trial court’s expression of concern at the

September 11, 2015 hearing as to the “ambiguity” set forth above, Penn Virginia

believed that the Motion for Reconsideration might resolve the issues the trial

court took with the Motion to Compel Arbitration and that, if not, the Notice of

Appeal could be timely filed immediately following the October 12 hearing.

13. Penn Virginia should be permitted to pursue its appeal and would

request that this Court of Appeals exercise its discretionary authority to allow Penn

Virginia to file its Notice of Appeal within fifteen days after the October 1, 2015

deadline. As this Court is no doubt aware, there is a strong presumption in Texas

favoring arbitration. See Circuit City Stores, Inc. v. Adams, 121 S. Ct. 1302 (2001);

Cantella & Co. v. Goodwin, 924 S.W.2d 943 (Tex. 1996); Jack B. Anglin v. Tipps,

842 S.W.2d 266, 268 (Tex. 1992). If a valid arbitration agreement exists, and the

claims are within the agreement’s scope, a trial court has no discretion and must compel arbitration. Cantella, 924 S.W.2d at 944; Shearson Lehman Bros., Inc. v.

Kilgore, 871 S.W.2d 925, 928 (Tex. App.—Corpus Christi, 1994, orig.

proceeding).

14. Penn Virginia did not deliberately, strategically, or intentionally delay

in filing its Notice of Appeal in an effort to subvert the Texas Rules of Appellate

Procedure or engage in any gamesmanship with the trial court. Instead, counsel for

Penn Virginia mistakenly believed the deadline to file its Notice of Appeal fell on

October 12, 2015 rather than October 1, 2015. Penn Virginia believed that, with

the thirty-day deadline, it would have the opportunity to address the trial court’s

specific concerns as to a particular and nuanced ambiguity in the contracts between

Penn Virginia and Nabors. Penn Virginia should not be penalized for the errors

made by its counsel and would request the opportunity to litigate the issues set

forth in its Motion to Compel Arbitration, particularly the application of the

arbitration provisions set forth in the Nabors DRP.

PRAYER

Accordingly, Appellants, Penn Virginia Oil & Gas GP, LLC and Penn

Virginia Oil & Gas, L.P. pray that this Court grant this Motion to Extend the

Deadline to File a Notice of Appeal and permit Penn Virginia to present to this Court

its arguments and authorities in support of arbitration. Penn Virginia further prays for such other and further relief, both special and general, at law and in equity, to which it

may be justly entitled.

Respectfully submitted,

/s/ Thomas J. Smith Thomas J. Smith State Bar No. 00788934 tsmith@gallowayjohnson.com Kelly C. Hartmann State Bar No. 24055631 khartmann@gallowayjohnson.com Alexis B. Hester State Bar No. 24072807 ahester@gallowayjohnson.com GALLOWAY, JOHNSON, TOMPKINS BURR & SMITH 1301 McKinney, Suite 1400 Houston, Texas 77010 (713) 599-0700 (713) 599-0777 – facsimile

ATTORNEYS FOR APPELLANTS, PENN VIRGINIA OIL & GAS GP, LLC AND PENN VIRGINIA OIL & GAS, L.P.

CERTIFICATE OF CONFERENCE

As required by Tex. R. App. P. 10.1(a)(5), I certify that I have conferred with counsel for Appellees, both of whom indicated that they are opposed to this Motion.

/s/ Kelly C. Hartmann__________ Kelly C. Hartmann

CERTIFICATE OF SERVICE

I hereby certify that, in accordance with Rule 9.5 of the Texas Rules of Appellate Procedure, I have served the foregoing document upon the following attorneys by electronic service, personal mail, by commercial delivery service or by fax on October 14, 2015:

John David Hart J. Javier Gutierrez LAW OFFICES OF JOHN DAVID HART Ana Laura Gutierrez Wells Fargo Tower THE GUTIERREZ LAW FIRM, INC. 201 Main Street, Suite 1720 700 East Third Street Fort Worth, Texas 76102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 361-664-7245 Counsel for Appellee, Alfredo Counsel for Appellee, John Paul De La Garza and his minor children Adame and his minor children, and Intervenor, Ernesto Gonzalez, Jr.

/s/ Kelly C. Hartmann Kelly C. Hartmann

NO.

COURT OF APPEALS HOUSTON' TEXAS

PENN VIRGINIA OIL & GAS GP, L.L.C. & PENN VIRGINIA OIL AND GAS L.P., Appellants.

v.

ALF'REDO DE LA GARZA, INDIVIDUALLY AND AS NEXT OF' F'RIEND MINORS & JOHN PAUL AD INDIVIDUALLY AND AS NEXT OF FRIEND OF AND MTNORS, Appellees.

On Appeal from the 215rH Judicial District Court, Harris County, Texas Cause No. 2014-42519

Vnnrrrc¡,TroN oF Tnonn¿,s J. Snnrrn

STATE OF TEXAS $ $ COUNTY OF HARRIS $

BEFORE ME, the undersigned authority on this day personally appeared Thomas J.

Smith, who after being duly swom upon his oath stated as f'ollows:

1. "My name is Thomas J. Smith. I am over twenty-one (21) years of age. I arn of

sound mind and in all ways competent to make this affidavit and verification, 2. I am one of the attomeys of record for Defendants, Perur Virginia Oil & Gas, L.P.

and Penn Virginia Oil & Gas GP, LLC. I have personal knowledge of the facts stated in this

affidavit and those facts are true and correct.

3. I have reviewed the foregoing Motion for Extension of Time to Fil of

Appeal. In my personal knowledge, the Motion truly and correctly recites allegations

set forth in the pleading,"

Smifh

STIBSCRIBED AND SWORN TO before me a notary public, which witness my hand ffiuV of October, 201 5 and seal of this office this

1n and for the State Texas ROSYN S, MORGAN NolÕry Puþlic, Slole ol lexos Mv Cornmrssron Explres JulY 30, 20.l I r-l CAUSE NO. 2014-42519 tfn'ç Pfrlt tl ALFREDO DE LA GARZA, $ IN TIIE DISTRICT COURT OX'

ASNEXT Ì'RIEND $ FOR and $ tnlnors $ $ v $ IIARRIS COUNTY,TEXAS $ PEI\N VIRGINIA OIL & cAS, L.P., PEI\N $ yIRGTNIA OIL & cAS cP LLC, $ MIKE X'DRGUSON, TRIX'ECTA OILFIELn $ SERVICES, LLC, CUDD PRESSURE $ CONTROL,INC., ROYWELL $ 215th JUDICIAL DISTRICT SERVICES, INC., and OAKS PERSOII¡IEL $ SERVICES, INC. d/b/a TIIE OAKS GROUP $

ORDER DEI\¡-YING DEFENDA¡ITS, PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGIMA OIL & GA.S GP LLC'S MOTION TO COIVIPEL ARBITRATION AND TO ABATE

On ll# day of STt^! .2015, came to be considered Defendants, Penn

Virginia Oil & Gas, L,P. and Penn Virginia Oil & Gas GP.LLC's Motion to Compel A¡bitration

and to Abate. After considering the motion and hearing the arguments of counsel, this Court is of the opinionthatthe Motion shouldbe DENIE?

Fe¡g$cen "ttd nefgtrdurt.Qgj<* Pc¡sorulet Serv'ecs¡ he .l/h/e Tbe lì@ qr o . 0 bo (d À t-. O' rt F'HL&:Ð Ghris Daniel V.t-

o\ q Distrlct Clerk SIGNED this day of 2015 ---\D-"-'-t \n å-> ãËt SEP I # ry6

Få'ff: H. ELEEì JUDGE, 2 I 5TI{ DISTRICT COURT ffie HEE ' Ë<8 cr: rú 6E ôG rË 'Ë order Denying Defendants, Penn virginia oil & Gaq L.P. and Penn Virginia oil & Gas Gp LLC's Page I ofl O¡ Motion to Compel Arbiüation and to Abate U EXHIBIT "A"

oç

I, Chris Daniel, District Clerk of Harris County, Texas certify that this ís a true and correct copy ofthe original record filed and or recorded in my office, elechonically or hard copy, as it appears on this date. 'Witness my official hand and seal of office this October 13.2015

Certified Document Number: 66994917 Totp! Pages: I

t^Lø¿r¿ Chris Daniel, DISTRICT CLERK IIARRIS COUNÏY, TEXAS

In accordance with Texas Govcrnment Code 406.013 electronically transmitted authenticated documents are valid. If there is a question regarding the validify of this document and or seal please e-mail support@hcdistrictclerk.com 6/1 8/2015 4:58:00 PM Chris Daniel - District Clerk Harris County Envelope No. 5739243 By: <<Name>> Filed: 6/1 8/201 5 4:58:00 PM

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY and AS NEXT FRIEND $ FOR A and $ , mlnors $ $ v $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CITDD $ PRES SURE CONTROL, [NIC., $ ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ THE OAKS GROUP $ 281ST ruDICIAL DISTRICT

DEFENDANTS, PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGINIA OIL & GAS GP. LLC'S MOTION TO COMPEI , ARRITRATION AND TO ARATE

Defendants, Penn Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC

(collectively referred to hereinafter as "Penn Virginia" unless individual reference is necessary)

file this Motion to Compel Arbitration and to Abate pending such arbitration. In support thereof,

Penn Virginia would show as follows:

I.INTRODUCTION

l. Plaintiff, Alfredo "Freddie" De La Garza ("Plaintiff' or "De La Garza"),

Individually and as Next Friend of and , and

Intervenor, John Paul "J.P." Adame ("Adame"), Individually and as Next Friend of

, (collectively "the parties") filed

personal injury claims against Penn Virginia on Jruly 24, 2014 and, November 6, 2014,

respectively. Their claims arise out of an April 29,2014 incident, which occurred at a well site

EXHIBIT "B''

located near Shiner, Texas while De La Garua and Adame were working in the course and scope

of their employment with Nabors Completion & Production Co. ("NCPS").

2. Nabors Industries, Inc. ("Nabors") and its subsidiaries, one of which is NCPS,

have a valid arbitration agreement which requires that disputes involving injuries to employees

that are incurred during the course and scope of employment be submitted to final and binding

arbitration. De La Garza and Adame both acknowledged and accepted the terms of the

arbitration agreement.

3. The arbitration agreement applies to all direct and indirect subsidiaries of Nabors,

all current and former employees of the aforementioned subsidiaries, and any "Electing Entity"

that has agreed to be bound by the terms of the agreement.r Penn Virginia is an "Electing Entity"

and has agreed on more than one occasion to be bound by the terms of the agreement.2 De La

Garza's and Adame's individual claims fall within the scope of the arbitration agreement as both

were employees of NCPS at the time of the incident and allege that their injuries occurred while

in the course and scope of their employment. De La Garza and Adame also filed claims as

representatives of their minor children. The minors' claims are also subject to the arbitration

agreement as they are derivative of De La Garza and Adame's claims. Consequently, De La

Garza and Adame's individual claims against Penn Virginia and the claims filed on behalf of

their minor children all fall within the scope of the arbitration agreement.

4. Therefore, Penn Virginia's Motion to Compel Arbitration should be granted, and

this case should be abated or dismissed and compelled to final and binding arbitration.

I See Nabors Dispute Resolution Program ("DRP'), a true and correct copy of which is attached as Exhibit l-4. 2 See 2008 Penn Virginia Oil & Gas, LP IADC Contract, a true and correct copy of which is attached as Exhibit 1- B; see also Contractors Special Proyisions, a true and correct copy of which is attached as Exhibit 1-C, at I 16 "Operator, its parent, subsidiary and affiliated corporations, as well as the employees, officers and directors ofeach (collectively, "Operator") is cognizant of the Nabors Dispute Resolution Program and wishes to become an Electing Entity, as defined in that Program." See also 2010 Penn Virginia MC Energy, LLC IADC Contract, a true and correct copy of which is attached as Exhibit l-D; see also Contractors Specíøl Provisions, a true and correct copy of which is attached as Exhibit 1-E, at fl 16.

II.I.INDISPUTED FACTS

5. Nabors is the "Sponsor" of the Nabors Dispute Resolution Program (ooDRP"), as

that term is defined by the DRP.3

6. The DRP is subject to the Federal Arbitration Act ("FA"{").4

7. By its terms, the Nabors DRP is designed to provide a means for the resolution of

disputes between the "Company" and the Company's present and former employees that are

related to or that arise out of a current or former employment relationship with the Company.s

8. The DRP is intended to create an exclusive procedural mechanism for the final

resolution of all disputes falling within its terms.6 Consequently, the DRP requires that all

disputes between De La Garza, Adame and the Company are subject to binding arbitration.T

9. The DRP defines "Dispute" to include personal injuries that are incurred at the

worþlace or in the course and scope of employment.s

10. The DRP defines "Company" as "Sponsor and every direct and indirect

subsidiary...ofSponsor,@',,9Aspreviouslymentioned,Naborsisthe

3 Al/idavit of Keith Nicholson ("Nicholson Alf."), a true and coraect copy of which is attached as Exhibit 1, atl4; see also Exhibit I -4, at fl 2(L). a SeeExhibit 1-A at fl fl 2(C) and 8. The Federal Arbitration Act, 9 U.S.C. $ 2, applies in state courts and preempts state anti-arbitration laws to the contrary. Circuit City Stores, Inc. v. Adams, 121 S.Ct. 1302; Southland Corp v. Keating, 465 U.S. 1, 16 (1984); see also Palm Harbor Homes v. McCoy, 944 S.W.2d 716, 721 (Tex. App.-Fort Worth 1997) (holding that FAA preempted Texas Arbitratìon Act's requirement that party's attorney sign agreement). Although the FAA preempts state arbitration laws, courts still must resort to general state law contract principles to determine whether an arbitration agreement will be enforced. 5,Se¿ Exhibit l-4, at fl L 6 See Exhibit l-4, at fl l. 7.See Exhibit l-4. 8 "Dispute" means all legal and equitable claims, demand and controversies, of whatever nature or kind, whether in contract, tort, under statute or regulation, or some other law, between persons bound by the Program or by an agreement to resolve Disputes under the Program, or between a person bound by the Program and a person or entity otherwise entitled to its benefits, including, but not limited to, any matters with respect to...6. any personal ínjury allegedly incurred in or about a Company l{orkpløce or ìn the course and scope oføn Employee's employment. See Exhibit 1-A at tf 2(E) (emphasis added). e See Exhibit l-A at !f 2(D) (emphasis added).

"Sponsor" of the DRP. NCPS, De La Garza and Adame's employer at the time of the worþlace

incident, is a subsidiary of Nabors.r0 The DRP extends to and includes employees of NCPS.Ir

11. Further, Penn Virginia is an "Electing Entity" and agreed to be bound by the

terms of the DRP in two IADC Conhacts between it and Nabors.l2 As an "Electing Entity," Penn

Virginia is required to resolve disputes with any past or present employee(s) or applicants of

Nabors in accordance with the DRP.I3

12. On January 2, 2013, Adame executed a document entitled "Application For

Hourly And Daily Employment," as well as another document entitled "Notice to Applicants

Regarding Dispute Resolution Program."l4 Likewise, on July 16,2013, De La Garza executed

the "Application For Hourly And Daily Employment" and the "Notice to Applicants Regarding

Dispute Resolution Program."l5 De La Gana and Adame, by their signatures, acknowledged and

agreed that they would be "required to adhere to the Dispute Resolution Program and its

requirement for submission of all claims to...arbitration."l6

13. On January 7,2013, Adame also executed a document entitled "Employee

Acknowledgement Concerning Nabors Dispute Resolution Program."lT The document

specifically states, "I have received a copy of the Nabors Dispute Resolution Program."l8 De La

Garza executed the same document on July 22, 20l3.re De La Garza and Adame, by their

to See Nicholson Aff. atl 6. tt See Nicholson Aff. atl6; see also Affidavit oJ Katherine Ryan, a true and corect copy of which attached as Exhibit 2. t2 See Nicholson Aff, at\l7 through 9; see ølso Exhibits 1-B and l-D; see a/so Exhibits 1-C and 1-E, at t[ 16. t3 See Nicholson Af,f. atl 10; see also Exhibits 1-B - I -G. ta See Nicholson Aff. atl 12; see also Exhibit 1-F. ts See Nicholson Aff. at\ 16; see also Exhibit 1-G. t6 See Nicholson Aff. atll 12 and 16; see also Exhibit I -F and 1 -G. t7 Nicholson Aff. at\ 13; see also Exhibit I -H. ts Nicholson Aff. at fl 13; see also Exhibit l-H.

te NicholsonAff. atllT;see also Exhibit 1-I.

signatures, again acknowledged and agreed that they would be "required to adhere to the Dispute

Resolution Program and its requirement for submission of all claims to...arbitration."2O

14. On April 29,2003, Adame was hired by Nabors Well Services, Ltd. as a crew

worker.2l On January 7 ,2013, as a result of a business reorganization, he became a crew worker

for NCPS when Nabors V/ell Services, Ltd. liquidated into Nabors V/ell Services, Co., which

liquidated and dissolved into NCPS.22 As a crew worker, Adame's job duties and responsibilities

included the operation of hand and power tools to perform maintenance and repairs to oil or gas

wells and related equipment. Adame's job duties also involved activities associated with rigging-

up and rigging-down workover rigs, pulling levers or turning handles to extend hydraulic or

screw-type jacks to support and level the rig, laying steel production rods, tubing, and casing,

and other tasks necessary to support operations.23 Adame's job duties and responsibilities did not

include the movement of goods in interstate commerce.2a While employed by NCPS, Adame was

never employed as a commercial truck driver or transportation worker.25

15. On July 22,2013, De La Garza was hired by NCPS as a crew worker.26 As a crew

worker, De La Garza'sjob duties and responsibilities included the operation of hand and power

tools to perform maintenance and repairs to oil or gas wells and related equipment. De La

Garza's job duties also involved activities associated with rigging-up and rigging-down workover rigs, pulling levers or turning handles to extend hydraulic or screw-type jacks to

support and level the rig, laying steel production rods, tubing, and casing, and other tasks

necessary to support operations.2T DeLaGarza'sjob duties and responsibilities did not include

20 Nicholson Alf. atll 13 and,17; see also Exhibit l-E.

2t Nicholson Aff. at \ 14. 22 NicholsonAff. atfl 14. 23 Nicholson Aff. at fl 14. 24 Id. 2s Id. 26 Nicholson Aff, at tf 18. 27 Nicholson Aff atl 18.

the movement of goods in interstate commerce.2s While employed by NCPS, De La Garza was

never employed as a commercial truck driver or transportation worker.2e

L6. On July 24, 2014, De La Garza filed his Original Petition, and on September 8,

2014 and October l, 2014, De La Garza filed his First and Second Amended Petitions.30

Likewise, on November 6, 2014 and February 19, 2015, Adame filed his Original and First

Amended Petitions in Intervention.3l A copy of all pleadings are maintained in the Court's

records. De La Garza and Adame allege that on April 29, 2014 and while working for NCPS,

they were injured when a piece of NCPS line pipe parted, causing both to be thrown back as a

result ofthe released pressurized gas.32

III. SUMMARY OF'THE ARGUMENT 17. The Company (defined to include Nabors, its subsidiaries, and any "Electing

Entity") has a valid arbitration agreement, which both De La Garza and Adame acknowledged

and accepted. Because Penn Virginia is an "Electing Entity," the parties' claims against Penn

Virginia fall within the scope of the arbitration agreement. Consequently, the parties' claims

must be submitted to final and binding arbitration in accordance with the DRP. Therefore, Penn

Virginia's Motion to Compel Arbitration should be granted and this case should be abated.

IV. ARGUMENT & AUTHORITIES

18. Pursuant to the DRP, the parties' lawsuit must be submitted to binding arbitration.

It is undisputed that Texas courts recognize that arbitration agreements in an "at-will"

employment setting apply to personal injury claims. In fact, there is a strong presumption in

Texas favoring arbitration. See Circuit City Stores, Inc. v. Adams, 121 S. Ct. 1302 (2001);

28 Id.

2e Id.

30 Plaintiffls Original Petition, First Amended Petition, and Second Amended Petition. 3rAdame's Original Petition in Intervention and First Amended Petition in Intervention. 32SeePlaintifls Original Petition and First Amended Petition, as well as Adame's Original Petition in Intervention and First Amended Petition in Intervention.

Cantella & Co. v. Goodwin, 924 S.W.2d,943 (Tex. 1996); Jack B. Anglin v. Tipps,842 S.W.2d

266, 268 (Tex. 1992). If a valid arbitration agreement exists, and the claims are within the

agreement's scope, atrial cout has no discretion and must compel arbitration. Cantella,924

S.V/.2d at 944; Shearson Lehman Bros., Inc. v. Kilgore, 871 S.V/.2d 925,928 (Tex. App.- Corpus Christi, 1994, orig. proceeding).

19. The clear language of the DRP states that the Federal Arbitration Act,9 U.S.C. $

1, et. seq. ("FAJA.") controls.33 The Texas Supreme Court has held that in cases where the FAA

is stated in the agreement as the controlling law, the FAA prevails. EZ Pawn Corp. v. Mancias,

934 S.W.2d 87,91 (Tex. 1996). In adjudicating a motion to compel arbitration under the FAA,

courts generally try to determine whether the parties agreed to arbitrate the dispute in question.

Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 626 (1985); Folse v.

Richard Wolf Medical Instruments Corp., 56 F.3d 603, 605 (5th Cir. 1995); R.M. Perez &

Assocs., Inc. v. Welch, 960F.2d 534, 538 (5th Cir. 1992).

20. Under the FAA, the court applies ordinary state contract law principles in order to

decide whether a valid arbitration agreement exists. See In re D. Wilson Constr. Co., 196 S.V/.3d

774,781 (Tex. 2006) (citing First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944

(1995)); 9 U.S.C.A. $ 1 et seq.; Crv. Pnec. & R¡v. Coon $ 171.001 et seq. Once a valid

arbitration agreement is established, a presumption attaches favoring arbitration. Dallas

Cardiologt Assoc., P.A. v. Mallick,978 S.V/.2d 209,212 (Tex. App.-Dallas, 1998, pet. denied).

Then Court must then determine whether the arbitration agreement covers the non-movant's

claims. In re Jim Walter Homes, lnc.,207 S.W.3d 888 (Tex. App.-Houston [14th Dist.] 2006).

In doing so, a court must focus on the complaint's factual allegations rather than the legal causes

of action asserted. Id.

33 S¿¿ Exhibit l-A at !f fl 2(C) and 8 21. Thus, two questions guide the determination of whether Penn Virginia's Motion

to Compel should be granted: 1) is there a valid agreement to arbitrate; and2) does the dispute in

question fall within the scope of the agreement? Associated Glass, Ltd. v. Eye Ten Oaks Invs.,

Ltd., 147 S.W.3d 507,511 (Tex. App.-San Antonio 2004,no pet.).

A. Valid Agreement to Arbitrate

22. An "at-will" employee who receives notice of an employer's arbitration policy

and continues or commences employment accepts the terms of the agreement as a matter of law.

See In re Halliburton, S0 S.W.3d 566 (Tex. 2002); In re Dallas Peterbilt, Ltd., L.L.P., 1.96

S.\M.3d 761, 162 (Tex. 2006). In Halliburton, the employer created a dispute resolution program

which obligated both employees and the employer to arbitrate all disputes between them. See

Halliburton, 80 S.W.3d at 566. The Texas Supreme Court held that the employer was justified

in giving notice to all employees of the program and informing them that by continuing to work

after the adoption of the program, employees would be considered to have accepted the program.

See id at 569-71.

23. Four years later, the San Antonio Court of Appeals extended Halliburton even

further. Relying on Halliburton, the Fourth Court of Appeals compelled arbitration where the

employee expressly refused to sign an arbitration agreement but continued to work after

receivingnoticeofthearbit¡ationrequirement. InrefuRGT,Inc.,2006WL622736 (Tex.App.-

San Antonio 2006, orig. proceeding).

24. It should also be noted that the San Antonio Court of Appeals has specifically considered the Nabors DRP and held that it is valid and enforceable on multiple occasions. See

NDUSA USA, LP v. Pena, 385 S.V/.3d 103 (Tex. App.-San Antonio 2012, pet. denied);

NDUSA USA, LP v. Carpenter, 198 S.V/.3d 240,249 (Tex. App.-San Antonio 2006, orig.

proceeding). Furthermore, in October 2013 and, then again in December 2013, the Texas

Supreme Court denied the family of a deceased Nabors' employee's petition for review when the

family sought to reverse the Fourth Court of Appeals' determination that the DRP was valid and

enforceable. See Pena,385 S.ïi/.3d 103

25. De La Garza and Adame executed documents on several occasions that clearly

express both parties' agreement to the terms of the DRP.3a The documents specifically state that

De La Garza and Adame acknowledged receiving, reviewing, understanding, and accepting the

DRP's requirement to submit disputes to arbitration.3s De LaGarza and Adame's signatures on

the aforementioned documents is strong evidence of their actual acknowledgment and agreement

that they are required to adhere to the DRP. See In re Bunzl USA,l55 S.W.3d 202 (Tex. App.- El Paso 2004, orig. proceeding).

26. De La Garza and Adame accepted the terms of the DRP as a matter of law.

Therefore, a valid and enforceable agreement to arbitrate was formed. In re Pqlm Harbor Homes, Inc.,l95 S.V/.3d 672,676 (Tex. 2006).

B. The Dispute Falls Within the Scope of the Aereement

21. The parties' claims fall within the scope of the DRP. The DRP requires that

disputes between the Company (defined as Nabors, its subsidiaries, and any "Electing Entity")

and its current or former employees be submitted to arbitration. According to the parties'

Petitions, De La Gana and Adame were both employees of a Nabors' subsidiary (NCPS) and

both were allegedly injured while in the course and scope of their employment. Consequently,

this dispute, which is between NCPS employees and Penn Virginia (an "Electing Entity"), falls

within the scope of the agreement.

3a SeeNicholsonAff. atfl\12, 13,16,andl7;see also Exhibits 1-F- 1-I. 35 Nichols on Aff. at I I 12, 13, I 6, and 17 ; see also Exhibits -F - 1-I.

28. Whether a claim falls within the scope of an arbitration agreement depends on the

factual allegations of the complaint rather than the legal causes of action asserted. Prudential

Secs., Inc. v. Marshall,909 S.V/.2d 896, 899 (Tex. 1995); Ikon Of/ìce Solutions, Inc. v. Eifert,2

S.W.3d 688, 697 (Tex. App.-Houston [14th Dist.] 1999, orig. proceeding); Prudentiøl-Bache

Secs., Inc. v. Garza, 848 S.V/.2d 803, 807 (Tex. App.-Corpus Christi 1993). Based on the

factual allegations contained in the parlies' pleadings, the parties' claims fall squarely within the

scope of the DRP.

29. It is undisputed that De La Garza and Adame were employed by NCPS, which is

a Nabors subsidiary.36 It is undisputed that La Garza and Adame both alleged that they were

injured at the worþlace and/or in the course and scope of their employment.3T

30. De La Garza and Adame signed an acknowledgement that specifically states, "I have received a copy of the Nabors Dispute Resolution Program...and understand that I am

required to adhere to the Dispute Resolution Program and its requirement for submission of

disputes to...arbitration."38 All of these terms are clearly defined in the DRP.

31. The DRP clearly and unequivocally states that it "applies to and binds the

Company, each Employee and Applicant."3e The DRP defines "Dispute" to include any personal

injury that is incurred at the worþlace or in the course and scope of employment.aO According

to the DRP, "Company" means "Sponsor and every direct and indirect subsidiary...of Sponsor,

(and) any Electing Entity."al

36 Nicholson Aff. atl T 6, 11 through 151, see also Plaintiffs Original Petition and First Amended Petition, and Adame's Original Petition in Intervention and First Amended Petition in Intervention. 37 ,See Plaintiffs Original Petition and First Amended Petition and Adame's Original Petition in Intervention and

First Amended Petition in Intervention. 38 Nicholson Aff atll l3 and l6; see also Exhibits l-H and l-I (emphasis added). 3e,S¿e Exhibit l-4, at !f l. ao Exhibit 1-A at tf 2(E).

See ar ,See Exhibit l-A at 2(D).

!f

32. Nabors is the "sponsor" of the DRP.a2 NCPS is a subsidiary of Nabors.a3 Penn

Virginia is an "Electing Entity" and agreed that it is bound by the terms of the DRP.44 Therefore,

Penn Virginia falls within the scope of the "Company."

33. The parties' claims clearly fall within the scope of the arbitration agreement.

Consequently, Penn Virginia's Motion to Compel Arbitration should be granted and this case

should be abated or dismissed and compelled to final and binding arbitration.

V. CONCLUSION

34. Nabors has instituted a comprehensive dispute resolution program, which requires

arbitration of disputes between the Company (which is defined as Nabors Industries, Inc., its

subsidiaries, and any "Electing Entity") and current or former employees. De La Garza and

Adame unequivocally agreed to adhere to the DRP and its requirement to submit all claims to

arbitration. The DRP applies to personal injuries that occur at the workplace or while the

employee is in the course and scope of his employment. Therefore, the parties' claims, as

asserted in this lawsuit, are subject to the terms of the DRP. Consequently, Penn Virginia's

Motion to Compel Arbitration should be granted and this case should be abated or dismissed and

compelled to final and binding arbitration.

PRAYER

For the foregoing reasons, PENN VIRGINIA OIL & GAS, L.P. and PENN VIRGINIA

OIL & GAS GP, LLC request that the Court grant this Motion, abate or dismiss this action, and

order that the claims asserted by Alfredo De La Garza,Individually and as Next Friend of

a, and Intervenor, John Paul Adame, Individually and as

Next Friend of be

a2 Nicholson Aff, at\ 4; see also Exhibit l-4, at !J 2(L). 43Nicholson Aff. atl 6. 4 See Nicholson Aff. atll7 through l0; see also Exhibits l-C and l-F,, at Contractors Special Provisions,fllí.

compelled to final and binding arbitration. PENN VIRGINIA OIL & GAS, L.P. and PENN

VIRGINIA OIL & GAS GP, LLC further request all other relief to which they are entitled.

Respectfully submitted,

/s/ Thomas J. Smith Thomas J. Smith State Bar No. 00788934 tsmith@gallowayj ohnson. com Kelly C. Hartmann State Bar No. 24055631 khartmarn@gall owayj ohn son. com Alexis B. Hester State Bar No.24072807 ahester @gallowayj ohnson. com Ge[owey, JoFTNSoN, Tolr¿prrNs Bunn & SurrH l30l McKinney, Suite 1400 Houston, Texas 77010 (713) s99-0700 (7 1 3) 599-07 77 - facsimile

Attorneys for Defendants, Penn VirgÍnÍa OÍ1& Gaso L.P. and Penn VÍrgÍnÍa OÍI8t Gas GP, LLC

CERTIFICATE OF SERVICE

I hereby certi$ that a true and correct copy of the foregoing document has been served electronically, by and through the Court approved electronic filing manager, to participating parties on this 18th day of June 2015, as follows:

John David Hart J. Javier Gutierrez L.rw Ornrcns OF JonN D¿,vrn H¿,nr Ana Laura Gutierrez Wells Fargo Tower Tnn GurrrRREz LAw Frnu,Inc. 201 Main Street, Suite 1720 700 East Third Street Fort Worth, Texas 76102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 361-664-7245 Coanselfor Plaintiff, Individaally and as Counselfor Intervenor, Nert Fríend of I John Pøul Adøme, Indivíduølly and øs Next , Minor Children Fríend of

Benjamin A. Escobar, Jr. Brit T. Brown BEIRNE, M.lvNnRn & PlnsoNo L.L.P. 1300 Post Oak Blvd., Suite 2500 Houston, Texas 77056 Phone 713-623-0887 Fax 713-960-1527 Counsel for Defendønt, Cudd Pressure Control, Inc.

/s/ Thomas J. Smith Thomas J. Smith

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY aTTcl AS NE,XT FRIEND $ FOR $ mlnoïs ç $ $ HARRIS COI'NTY, TEXAS $ PENN VIRGINIA OlL & GAS, LP, $ PENN VIRGINIA OIL & GAS GP, LLC, $ MII(E FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYWELL SERVICES,INC. and OAI(S 6

PERSONNEL SERVICES, lNC, cllb/a $ ST THE OAKS GROUP $ 28 1 JUDICIAL DISTRICT

VERIFICATION

S'|ATE OF TEXAS {j

$ COUNTY OF HARRIS $

BEFORE ME, the undersigned authority on this day personally appeared Thornas J.

Smith, who after being cluly sworn upon his oath stated as follows:

1. "My narne is Thomas J. Srnith. I am over twenty-one (21) years of age. i am of sound

rnind and in all ways competent to make this verification.

2. I am one of the attorneys of record for Dcfcndants, Penn Virginia Oil & Gas, L,P, and

Penn Virginia Oil & Gas GP, LLC. I have personal knowledge of the facts stated in this affidavit

and those facts are true and correct.

3. I have revicwcd the foregoing Motion to Compel Arbitration and to Abate this case

pcnding such arbitration. In my personal knowledge, the Motion truly and correctly recites the

fäctual allegations set fortir in the pleadings ancl the evidence in the trial court record."

J

SUBSCRIBED AND SWOI{N TO before me a notary public, which witness my hand and seal of this office this/ l*day of June, 2015.

Notary Public in and for ofTexas nHoND^ SCHNltZ Notory Publlc, Stole ol Toxqs MyCommlsslon Fxplr€! Docembor lt,2013

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF Y andAs NEXTFRIEND $ and $ $ $ $ HARRIS COLINTY, TEXAS $ PENN VIRGINIA OTL &. GAS, LP, $ PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYV/ELL SERVICES, INC. and OAKS $ PERSONNEL SERVTCES, INC. d/b/A $ ST THE OAKS GROUP $ 28 1 JUDICIAL DISTRICT

AFFIDAVIT OF KNITH NICHOLSON

STATE OF'TEXAS $ $ COUNTY OF HARRIS $

Before me, the unclersigned notary, on this day personally appeared Keith Nicholson, the afftan6 a person whose identity is known to me. After I administered an oath to affiant, the affiant testified:

I "My name is Keith Nicholson. I am over l8 years of age, of sound mind, and capable of making this affidavit. The facts stated in this affidavit are within my personal knowledge and are true and correct.

2. I am Assistant General Counsel for Nabors Corporate Services, Inc.

J In my capacity as Assistant General Counsel, I am required to be familiar with Nabors Industries, Inc.'s corporate structure and the relationship of its various subsidiaries and affiliated companies. I am also required to be familiar with the Nabors Dispute Resolution Program ("DIUt"¡.

4 Nabors Industries, Inc. is the "Sponsor" of the Nabors DRP as that tem is defined by the DRP. A true and correct copy of the DRP is attached to my affìdavit as Exhibit 1-4.

5 The DRP provides that it applies to all direct and indirect subsidiaries of Nabors Inclustries, Inc., as well as all "Electing Entities" that have agreed to be bound by same.

6. Nabors Completion & Production Services Co. ("NCPS") was a subsidiary of Nabors

EXHIBIT "1"

Industries, Inc. at the time of the April 29,2014 incident which makes the basis of the lawsuit.

7 On Septembet 23,2008, Penn Virginia Oil & Gas, LP agreed to be bound by the DRP as an "Electing Entity" in the "Contractors Special Provisions" contained in the International Association of Drilling Contractors ("IADC") Drilling Contract between it and Nabors Drilling USA LP. A true and correct copy of the IADC Contract is attached in its entirety to my affidavit as Exhibit l-8. The Contractors Special Provisions portion has been pulled out for reference and is attached as Exhibit 1-C.

8. The Contractors Special Provisions page states at paragraph 16 that "Operator, its parent, subsidiary, and affiliated corporations,..(collectively "Operator") is cognizant of the Nabors Dispute Resolution Program and wishes to become an Electing Entity, as defined in that Program. Accordingly, Operator and Nabors Industries, Inc. ("Nabors") hereby agree that Operator is an Electing Entity..."

9 In addition, on September 8, 2010, Penn Virginia MC Energy, LLC agreed to be bound by the DRP as an "Electing Entity" in the "Contractors Special Provisions" contained in the International Association of Drilling Contractors ("IADC") Drilling Contract between it and Nabors Drilling USA LP. A true and conect copy of the IADC Contract is attached in its entirety to my affidavit as Exhibit 1-D. The Contractors Special Provisions portion has been pulled out for reference and is attached as Exhibit 1-8. lt is my understanding that Penn Virginia MC Energy, LLC is a subsidiary or affiliated corporation of Penn Virginia Oil & Gas, LP andlor Penn Virginia Oil & Gas GP, LLC.

10. As an "Electing Entity," Defendants, Penn Virginia Oil & Gas, LP and Penn Virginia Oil & Gas GP, LLC are required to resolve disputes with any past or present employee(s) or applicant(s) of Nabors Industries, Inc. or its subsidiaries in accordance with the DRP.

I l. Based upon my review of the personnel file of Mr. Adame, I can confirm that Mr. Adame was employed by NCPS, and that he executed various documents that acknowledged that he received, reviewed, and accepted the terms and conditions of the DRP.

t2, Specifically, my review of the relevant documents confirms that on January 2,2013,Mr.

Adame executed a document entitled "Application For Hourly And Daily Employment," a true and correct copy of which is attached as Exhibit 1-F. Mr. Adame acknowledged and agreed by his signature that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to..,arbitration."

l3 Further, on January 7,2013, Mr. Adame executed a document entitled "Employee Acknowledgement Concerning Nabors Dispute Resolution Program," a true and correct copy of which is attached as Exhibit l-H. The document specifically states, "I have received a copy of the Nabors Dispute Resolution Ptogram." Mr, Adame acknowledged and agreed by his signature that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to...arbitration."

t4 Mr. Adame was employed by NCPS as a crew worker. As a crew worker, Mr. Adame's job duties and responsibilities included the operation of hand and power tools to perform maintenance and repairs to oil or gas wells and related equipment. Mr. Adame's job duties also involved activities associated with rigging-up and rigging-down work over rigs, pulling levers or turning handles to extend hydraulic or screw-type jacks to support and level the rig, laying steel production rods, tubing, and casing, and other tasks necessary to support operations. 'While employed by NCPS, Mr. Adame was never a commercial truck driver or transportation worker.

15. Based upon my review of the personnel file of Mr. Alfredo De La Garza,I can confirm that Mr'. De La Gana was employed by NCPS, ancl that he executed various documents that acknowledged that he received, reviewed, and accepted the terms and conditions of the DRP.

16. Specifically, my review of the relevant documents confirms that on July 16, 2013, Mr. De La Gana executed a document entitled "Application For Hourly And Daily Employment," a true and coüect copy of which is attached as Exhibit l-G. By his signature, Mr. De LaGarza acknowledged and agreed that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to. .. arbitration."

17. Further, on July 22,2013, Mr, De La Garza executed a document entitled "Employee Acknowledgement Concerning Nabors Dispute Resolution Program," a true and correct copy of which is attached as Exhibit 1-I. The document specifically states, "I have received a copy of the Nabors Dispute Resolution Program." Mr. De La Garza acknowledged and agreed by his signature that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to...arbitration."

18 Mr. De LaGarua was employed by NCPS as a crew worker. As a crew worker, Mr. De La Garza's job duties and responsibilities included the operation of hand and power tools to perform maintenance and repairs to oil or gas wells and related equipment. Mr. De La Garza's job duties also involved activities associated with rigging-up and rigging-down work over rigs, pulling levers or turning handles to extend hydraulic or screw-type jacks to support and level the rig, laying steel production rods, tubing, and casing, and other tasks necessary to support operations. Mr. De La Garza'sjob duties and responsibilities did not include the movement of goods in interstate commerce. While employed by NCPS, Mr. De LaGarza was never a commercial truck driver or transportation worker.

t9. At all times relevant to this matter, NCPS was engaged in interstate commerce as it was in the business of providing services for the development of oil and gas resourÇes that are placed into commerce in both Texas and other states of the United States.

20. On information and belie{ Penn Virginia is also engaged in interstate commerce as it is in the business of producing oil and gas resources that are placed into commerce in both Texas and other states of the United States.

21 Attached as Exhibit 1-A to my affidavit is a true and correct copy of Nabors Industries, Inc.'s DRP booklet, in English and Spanish, respectively. These records are kept by Nabors Industries, Inc. in the regular course and scope of business, and it was the regular course of business of Nabors Industries,Ino, for an employee or representative of Nabors Industries, Inc., with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records were made at or near the time or reasonably soon after the act or event that was recorded.

22 Attached as Exhibit i -B to my affrdavit is a true and correct copy of the 2008 IADC Drilling Contract between Nabors and Penn Virginia Oil & Gas, LP, and attached as Exhibit l-C is a true and correct copy of the portion of the IADC contract titled "Contractors Special Provisions." These records are kept by Nabors Industries, Inc. in the regular course and scope of business, and it was the regular course of business of Nabors Industries, Inc. for an employee or representative of Nabors Industries, Inc., with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records werc madc at or near the time or reasonably soon after the act or event that was recorded.

23 Attached as Exhibit l-D to my affidavit is a true and conect copy of the 2010 IADC Drilling Contract between Nabors and Penn Virginia MC Energy, LLC, and attached as Exhibit l-E is a true and correct copy of the portion of the IADC contract titled "Contractors Special Provisions." These records are kept by Nabors Industries, Inc. in the regular course and scope ofbusiness, and it was the regular course ofbusiness ofNabors Industries, Inc. for an employee or representative of Nabors Industries, Inc., with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records were made at or near the time or reasonably soon after the act or event that was recorded.

24. The records attached as Exhibits 1-F, 1-G, l-H, and 1-I are true and correct copies of records that are kept by NCPS in the regular course and scope of business, and it was the regular course of business of NCPS for an employee or representative of NCPS, with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records were made at or near the time the act or event that was recorded."

Sworn to and subscribed before me by on the Éã*of June, 2015.

ú Notary in and for the ofTexas MAny D. Hotstilcroil My Commission expires Notory Publlc, Stote of T6xos My Commtsrlon Expkês Moy 05, 20tt

NABORS DISPUTE RESOLUTION PROGRAM and RULES

Copies thís pamphlet are availahle in S¡sanish, upon o,.f rer|u.e st, .fi' o m anj, J$a b or,v s u b s i d i a ry' s Hu il1.c¿lt Resouvees Deparfinent.

Copías de eslefall.eto esldtt dispontble en espafiol con solo requeriúas al Depa{lamenfo de Recurso^r tr,, * "..n n nu ^ Ê;¡HlþlT'¡*fl[ri.,'1. t, ^".

^t^

THE Ì BORS DISPUTE RESOLUTION P} GRAM

1. Purpose and Construction

The Prograrn is designed to pt'ol'ide a means for the quick, fair, accessible, and inexpensive resolufion of Disputes between the Company and the Company's present a¡d fornrer Employees and Applicants for enrployment , ñated to or arising out of a cürrcnt, forrne¡ or potsntial employment relationship with the Company. The Prograrn is intended to öreatÉ an exclusive procedural mechanism for the final ¡esolution of all Disputes falling within its terms. It is not inlended eitler to abridge or enlarge substantive rights available under applicable law, The Program contractually modifies the "at-wili" employm Énf' relafiunship'"'betq'eet''tlte Company -'and its Employees, but only to the extent expressly stated in the Program. The Program should be interpreted in accordance with fhese putposes.

2, I)efïnítions

A. '¿AAA" rüeaüs the Arnerican Arbitration Assosiation,

B. '!JAN{S" means Judiciai Arbitration and Mediation Servises.

C. The 'oAct" meåns the Federal Arbit¡ation Aot, 9 U.S.C.$1, et seq., as amended frc¡m time to time'

D. "Company" means Sponsor and every direct ot indiresl subsidiary (wbether a corpotation, lirnited liability cornpâny, company partnership or other legal entity) of Sponsor, any Electing Eniity, any entity oi person alleged to have joint and several liability concerning aly Dispute, and all of their ditectors, officers, employees, and agents, every plan ofbene' fìts, whether or not tax-exempt, established or maintained by any such entity, the fiduciaries, agents and employees of all suct¡ plans, and thç successors and assigns ofall such entities, plans and persons; provÍded , however, that in the case of an Electing Entity, "Company" shall include the Electing Entity oúly tc the exlent provided in the Electing Entity's agrcement to Lre borurd by the Prograrn.

E. "Dispute" means ali legal arrd equitable elaims, demands, a¡d controversies, of whalever nature or kind, whether in contract, tort, under statufe or regu- Iation, or sóme other law, between persons bound by tlre Program or by an agrcement to resolve Disputes ler the Ptogtam, or between a person i nd by the Program and a person or entity otherwise entitled to its benefits, including, but not lirnited to, any matters wilh respect to:

l. this Program;

2. the employment or polential reemployment of an Employee, including the terms, conditions, or termination of such employment with the Company;

3. employee benefits or incidents of employrnent with the Company;

4: any 'ofher"matter reiated -to- or çoncerníng^the '- '-

relationship between the Employee and the Company includÍng, by way of example and wifhout limitati on, allegations ofi discri¡nination based on race, sex, religion, national origin, age, veteran status or disability; sexual or olher kinds of harassment; workers' compensafion retaliatiorr ; defanratiorr; infliction of emotional disüess, ârtitrust claim concenring wages or otherwiso, or status, claim or membership with regard to any employee benefit plan;

5. arr Applicant's application for employment and the Company's actions and decisions regarding such application; and

6. any personal injury allegedly incuned in or about a Company worþlace or in the coulse and scope of an Employee's employmenl

"Dispute" includes all such mattcrs regatdless of when the çvents on which they are based occurred, including mattel:s based on events oceurring before the Employee became subject to this Program (so long as such disputes were not previously asserted in a judioial forum) or affer termination of the employment ¡elationship"

F. "Electing Entity" mearis any legal entity that has agreed ts be bound by the Program as provided herein.

G. "Etnployee" rneans ¿üy person who is or has been in the employment of tbe Comparry on or afer the effective date of this Prograrn, rvhether ot not empltyed af the rime a claim is brought with respect to a Dispute, residirrg in the United States, or otherwise subject to lau,s of the United States or any statÊ, ricipality, or other polilical subdivision of the Uniteo States,

if, "Applicant" llreâns any person u'ho is seekirrg or has sought employmont u'ith the Company affer the effective date of this Program.

I. "Parly" meills, with respect to ¿ patticular Dispute, affecled pe1'solls a¡dlor' enlities bounci try this Prograrn,

.1. "Progrårn" lrealls this Nabors Dispute Rcsolurion Program, as anrended ftotn time to time.

K. "Rules" rneans the Nsbors Dispute Resolution Rttles, . .as arnencle<l from limelo tinre. rvhich arç atpiiçablejô mediation and arbitration.

L- "Sponsôr" means Nabors Industries, IÞc., a l)elawarc corporat¡on.

3. Namc, Äpplication and Coveragc

A, Tlre Program shall be refened to as The "Nabors Dispute Resolutìou Progtam." Ahornatively' it may be refe.rred 1o as thc "Dispulc Resolutiotl Prbgtam."

B. Until revoked by Sponsor pursuant to this Program, this Program applies to a¡d binds the Company, each Bnrployee and Applicant and the heirs, bencficiaries and assigns of any such person or entity; provided, however, that this Pnlgram shall not apply to any Ëmployee in a unit of Hmployees represented by a labor organization, or to fhe Corupany '¡'ifh respect to such employees, except to the extent permiftcd in an applicable collective bargaining agreement or lawfully imposed by tlie Company rvhen ro eollectit'e bægaining agreernent is in effcct

C. Except as provided for het'ei::, this Prog¡am applies to any Dispute.

D. Notwithstanding anything to ihe cobtral)¡ it this Progrâm, the Prograrn does not apply to clailus for rvôl*ers' compensation benefits or unenrpicryment c ompensati on bcnefits.

E. À4ediafion and arbitration elË only available for Dispules involving legally plotected riglrts.

F twifhstsnding any other provisiou ; eof, any court with jurisdiction over the Parties may issue any injunctive o¡ders (including preliminary injunctÍ orm) if the neaessary legal and equitable requirements under applicable law are met pending the institution of prooeedings under the Program. Furthermore, an action under The Liruitalion of Ship Owners Liability Ac\ 46 U.S.C. $$181-189, shall not be subjecf to lhis Program.

4. Resolution of Disputes

All Disputes not otherwise settled by the Pa¡ties shall be fìnally and conclusively resoived uude¡ this Program and the Rules.

5. No Retaliation

No employee shall be subject to âny form of discipline or retaliation for initiating or pariicipaling in gooc{ faith in any process or proceeding uuder this Program'

6. Amendment

A. This Program may be amended by Sponsor at any time by giving at least I0 days' notice to crurent Ëmployees, Horvevet, no amendment shall apply to a Díspute lbr which a proceeding has been initiated pursuanl to the Rules, unless otherwi.se agreed.

B. Sponsor may amend ihe Rules at any time by serving notice of the amendmetrts on AAA and JAMS. However, no amendment of the Rules shall apply to a Dispute for which a proceeding has been initiated pursuant to the Rules unless otherwise agreed.

7. Termlnation

This Progmnr may be terminated by Sponsor at any time by giving at least i0 days'notice of termination to surrent Employees. However, temrination shall not be effective as to Disputes for which a proceeding has been initiatcd pursuant to the Ruies prior to the date of termination unless olherwise agreed.

8. Appllcable Law

A. The A,ct shall appl¡, to this Program, the Rules, and any proccedings under the Program or the Rules, including any actions to compel, enfotce, vâcate or confirm proceedings, awards, orders of an arbitator, ot settlements under the Program or the Rules,

B. , I.

a¡bitrations held pursuant to this Pro¡ n shali be corvened as near as possible to the worksite where the events in dispute occurred if Nabors continues to perfonn wo¡k at that location. Otherwise the arbitration will occur at the place rnost convenient for the majority of the witresses,

C. Other thari a.s expressly provided herein, or in the Rules, the subsl¿ntive legal rights, rernedies, and defenses of all Parties are preserved. In the case of arbitration, the a¡bitrator shall have the authority to determine the applicable law and to order any and all relief, legal or equitable, whic.h a Party could obtain from a couf of competerlt jurisdiction on the basis of the claims made in the proceeding.

D. Other than as exptessly provided herein, o¡ in the Rules, the Program shall not be construed to gralt additional substantive, legal, or conlractual rights, remedies o¡ defenses which would not be applied by a court of competent jurisdiction inthe absence of the Program.

E, Notwíthstanding the provisions of the prececling subsection , in any proceeding before an arbitrator, the arbit¡ato¿ in his or her discretion, may allow a prevailing Employee or Applicant a reasonable attomey's fee as part of the awa¡d, The dise¡efion to allow an award of fe¿s under this subsection is in addition 10 any disoretion, right or power which the arbitralor may have under applicable law, If the arbitrator awa¡ds âttorney fcos without authorízadon for such an âward by statute or conlract, such award will be iimited to $2,500.00.

9, AdministrativeProceedings

A. This Program shall apply to a Dispute pending before any local, stâte ü federal adminislrative body or court ur:less prohibited by law

B. Parlioipation in any adminisüative or judicial proceeding by thc Company shall not alïect the applícability ofthe Program to any such Dispute upon . termination of the adrninistrative or. judiciai proceedings. A finding, recommendation or decision by an adrninistrative body on the merits of a Dispute shall have the same legal weight or effect unde¡ thç Program as it wouid in a coufi of competent jurisdíction .

10. Exr ive Remedy

Proceedings under the Program shall be the exclusive, final a¡d bindine method by which Disputes are resolved.

Il. Electing Entiúies

A. Corporations ot other legal entities, not otherwise Paflies, may elect to be bound by this Program by written agreement wíth Sponsor.

B. Election may be made only as 1o some types of Disputes, or only a.s to sornp persons, in the disolction of Ë,lecting Entity.

12. Effecfive Drtc

The Effective Date of this Program shall be April 15, 204r.

13. SeverabilÍty

The terms of this Program and the Rules are severable. Thc invalidity or unenforceability of any provision therein shall not affect the applicalion of any other provision, 'Where possible, consistenf with the purposes of the Program, any otherwise invalid provision of the Prograrn or the Rules may be reformed and, as refotmed, enfo¡eed.

14. .{ssent

Employment or sontinued empþment after the Effective Date of tbis Program constitutes consent by both the Ernployee and tlhe Company to be bound by this Program, both during the employment and after tennination of employment, Submission of,an application, regardless of form, for employment constitutes consent by both the Applioant and the Company to be bound by this Program.

NABORS DISPUTE RESOLUTION RULES

l. Definitions

Alldefinitions included in the Nabors Dispute Resolution Program apply fo these Rules.

2. Àpplication

A. lf different rules are applicable to a specific class of Disputes, and have been adopted by Sponsor and served on AAA or JAMS, tlese llules shall not apply to such class of Disputes,

B. i :se Rules apply in the forn¡ existingi the time proceedings are initiated under 1'hem,

C, To the extent consistent r¡'ith these Rules, the Ernployment Dispute Resolution Rules of AAA or JAMS also apply to all proceedings governed by these Rdes.

3. ïnitiation of the Process

A. A Party may initiate proceedings under these Rules at any time, subject to any defenses including those . appiicable to the timeliness of the claim, including limitations a¡rd laches.

-- Ê.' A Pä'rymay-inifiatc proceedings by servirrg a u'r'it1cn -- -

requgst to initiate proceedings on AAAor JAMS, and tenderit:g the appropriate admini strative lee.

C, Copies of the request shail be served on all othe¡ Parties to the Dispute by AAAor JAMS. The request shall describe the nature of the Dispute, the amount involved, if any, the remedy soughq and the proceeding locale requested.

D. Proceedings may also bc initíated by an Employee or Applicant by serving a writtcn request to initiate proceedings on the Compauy's Dispuæ Resolution Propçram Adminislrator. In such a oase? the Company shall promptly forward arry properly served request it has received to AAA or JAMS.

E. Parties against wirom a claim is asselted shall flle an answering statement within 21 days of receiving notice of intent to a¡bitrate or a specification of claims, which shall include any counterclaims and any request thatthe arbil¡ator (ifany) prçpare a stâtement of reasons for thç awæd,

4, Administrative Conference

AAA or JAMS shall convene an administrative conference as soon as possible after rcceiþt of the answe.ling state' ment or after expiration of the time for filing an alswering statement if one. has not been filed. The conferenoê mây be held in person or by telephone. At the conferetlce, AAA <¡r JAMS will deterrnine whether the Parties are in agfeement on a method to resolve tlte l)ispute, If the Pafties are in agreement, AAA or JAMS will implement the procedure in accordance with their rulEs upon payment of any applieable fpe, If the Parties camot agree, or if the

Pæ have prêviously attempted and failed¡ ¿solve the Þispute by mediation ór alolher nonbinding mechanisut, the Dispute shall be arbitrate.d under these Rr¡les.

5. ^A.ppointment of Ärbitrator

Immediately after payment of th€ arbitration fee, AAA or JAMS shall sinult¿neously send. each Party an identical list of names of persons chosen from a panel of qualified arbitrators which,{AAor JAMS shall select and maintain. Each Pafy to the Þispute shall. have fou¡teen (14) d¿ys from the tmnsmittal date to sftike any irames objected to, , number the remaining names in ordsr of preference, and return the list to AAAor JAMS. If a Party does not Teïilrn the list witbin the iime specified, ail persons therein shall " -- be deemed-ar,ræptablu-Fl'om'åmoûg the-persons who "'- ---'

have been apptoved on botb lists, and in accorda¡roe with the order of mutual pteference, AAAor JAMS shali invite the acceptance ofthe arbit¡ator or arbitrators to serve. In those cases where more than $2,000,000 is in controversy, either Pa*y shall have the right to require that the a¡bitration proceed before a tbreo member patrel rather than a single arbitator. The Party who elects fcrr a panel in these circumstances shal.l noti$ the other Parties during the adminishative conference described ir Section 4 of the Program. Any Party shatl have tbe right to strike one list of arbitralors in ifs entirety, lVhen a Party exercises this right, AAA or JAMS shall issue a new list of arbitrators consistent with the above procedures.

6. Qualifications of the Arbitrator

No person shall ssrve as an arbitrafor in any matter irr which that person has any financial or persortal interest. I'rior to accepting appointment, the prospective arbiÍ¡ator shall disclose any circumstance likely to provent a prompl hearing or create a presumption of bias. Upon receipt of such infor¡nation from the a¡bitrator ot any other source, AAA o¡ JAMS will either replace tlrat person or cornmunicate the inform¿tion to the P¿*ics fo¡ comment. Thereafter, AAAor JAMS may disqualify that persor¡ and its decision shallbe conclusive.

7, Vacancies

If a vacarrey occurs for any reason or if an appointcd arbitrator is unablc to serve promptly, the appointment procedure in Section 5 shall apply to the selection of a substitute arbiüatol

L Da¡ Time and Place of Hearings

A. The arbitralor shall set the date, tine and place of any proceeding puxsuânt to lhe requirements of Section 88 of the Program.

B. Notiee of any hearing shall be given at least ten (10)

days in advance, unlcss the arbitrator detemilies or the P¿¡ties agree that a shorter time is neeessaxy,

C. Ihe axbitrator shall make every effort, without unduly incuning expense! to accommodate the Ërnployee or Applicant in the selection of a proceeding,location.

9. Confcvcnc¿s

At the request of AAA or JAMS, or of a Party or on the initiative of the arbitr¿tor,lhe arbitator or AAA or JAMS may notioe and hold conferenoes for the discussion urd determination of any matter rvhich will expedtte the proceeding, including:

A. veaue,

B. clarification of issues,

C. determination of prelín:inaty issues, including summary determination of dispositive legal issues,

D. discovery,

E. thç time and location of proceedings or conferences,

F. interim legal orequitable reliefauthorized by applicable law

G. pre- or postùearing memoranda.

H. stipulations; andlor

I. any other m¿fer of substance or procedure ,

10. Mode of Hearings and Conferences

In the discretion of the arbitrator or by agreement of the Parties, conferences and hearings ruay be conduded by telephone or by written submission, as well as in person.

11. Pre, aring Discovery

À. On any sohedule determined by tle a¡bitrato¡, each Parly shall submit in advance the names and addresses of the witnesses it intends to produce and arry doc' uments it intends to present.

B. The a¡bitrator shall have discretion to determine the fonn, amount and frequency of discovery by the Parties.

C.. Discovery may take any form pernútted by the " Federal Rules of Civil Procedurc, as amended from time to time, subject 1o any restrictions imposed by the arbitrator.

12. Representafion

Any Parry may be represented by coulsel or by any otlrer authorized representative.

13. Attendance at Hearings

The arbitrator shall maintain the privacy of the procoedings to the extent permitted by law. Any person having a direct interest in the matter is entitled to attend the proceedings.

The arbitrator shall otherwise have the power to exclude any witness, other than a Party or other essential person, during the testimony of any otiier witness. The a¡bitrator shall determine whether any other pcrson may attend the proceeding. Upon the request of any Party, the arbitrator shall exclude any witness during the testimony of any othçr wibress.

14, Postponement

A. The arbitrator, for good cause shown by a Party, or on agleement of the Parties, may postporre any proceeding or confererrce.

B. The pendency of court proceedings related to the same matter is not good cause for postponement.

15. Oaths

Befcre proceeding with the firsl hearing, each atbitrator rnay take an oath of office and, if requiled by law, shall do so. The albitrator may requÍre witnesses to testifr under oath administered by any duly qualifïecl person and, if required by law or requested by any Party, slrall do so.

16, Rec I of Proceedings

There shall be no stenograpiric, audio, or video record of the proceedings unless either requested by one of the Parties or specifìed b)' the arbilrator The Party requesting tl:e record shall bear tbe entire cost of producing the same' Copies of the record shall be fuurished to all other Parlies upon request ancl upon pâyrìlent ofthc cost of reproduction ,

17. Proccdurc

The proceedings shall be conducfed by the a¡birator in whatever order and Ìrariller will nrost expeditiously permit full presentaliou of tlts evidenee anci arguments of the Panies.

18. Ar.bitration in the Absence of a Party

The arbitrator nlây proceed in the absence of Parties or represeutativcs whÒ! after due notice" fail to be present or fail to obtain a postponemenl. A¡r award shall not be made solel5, e¡ the default o{i a Party. Tlre arbibatôr shall roquire aly Part¡ who is present to submit such evidetrce as the arbiftalor lr1ûy require for the making of an award.

19. Evidencc

A. 'i hc a¡bitrator shall be the sole judge af the relev"ancy, materialíty, ard admissibility of evidencc offeled. Conformity to legal rulcs of cvidence shall rrot be necessar)'.

B. The arbi.trator may subpoena witrresses or docuntents al the requesi of a Parly ol on the arbilrator's own initiative..

C. 'llbe arbílrator may consider the evidence of rvilnesses.

by affidavit or declâratio¡, but shall give it only such rveiglrt as the artritrator deems appropriate after conside ¡ation of anv objectiol n:ade to its aclmission.

20. Post-Hearing Submissions

All clocumentarl, evidence to be considered by the a:'ilitralor shall be filed $ rhe hearing rnless flre arbirator finds good cause fo peruit a post-hearitig submis.sion. All Pallies sh¿ll be a{Tor¿led an opportrurity fo exarnine and com¡nent on any ¡rostJrealirtg evidence. 'llhe arbilr¿tor shall penttit the tiJing of posl-ltcaring briefs at the requesl of a Putl' an<l sball delemir:.e the procedure and timing of such äiings.

21. Cla g and Reopening of Froceedlngs

A, When the arbilrator is satisfied that the record is complete, inctuding the submission of any post-hcaring briefb or dooume¡ls pennifted by the arbitrator, the arbitrator shall declare the p¡oceeding closed'

B. "lhe proceeding may be reopened on the arbitrator's initiative or upon application of a Pafy at any tfuie before the award is madc.

22. Wúver of Proeedures

Any Party rryhç fails to objecl in rvriting. after knowledge that sûy provision or requirements e¡f these procedures and " - Rule.s l1¿y8,.¡61-,þean..cornplied rvith, slrnll ..be. clecrned .to.

have waived the right to otrject.

23. Servicc of Notices and PaPers

Any papers, notices, ôr process necessary or proper for the irritiation or continuation of any proceeding under these Rules (ineluding the auard of the arbitrator' any court action in connection therewith, or the entry of judgment on an award made under these procedures) may be served on a Party by mail addrcssod to the Parry ot his or her representative at the last knqwn address or by personal service. A\rQ{, JA}{S, the Partieq, and dre arbitlator may also use facsimile transmission, telex, telegrarn, or other written forms of elecbonis communication to give any notices required bY these Rules.

24. Communications with the AAA, JAMS, and the Company

A. Any Party may noticæ, servê or communicate with AAAby contactingr

Regional Adminishator Amerioan Arbitation Association 1001 Fannin St,, Suite 1005 Houston, Texas77A02 Q13) 739-t342 Fax: (713) 739-1142

B, Any Pa¡ty may notice, serve or comrnunicate with JÂMS by conlaoting:

JAMS 345 Park Avenue" 8th F'loor NewYork,NY 10154 (212) 7st-2700 Føx: Q12)75ï-4099

c. .y notice, serviÇe or cotnÍlunicâtii with the Connpany will be to:

Legal Department Nabors lndustries, lnc. 515 West Greens Road, Suite 1200 Houston, Texas 7 7 067 - 4525 (281) 874"0035 Fax: (281) 775-8431

25. Comnunicetion rvith the A.rbitrator

lhere shall be no çommunication between the Parlies arrd the arbifrator other than at any oral hearings or conferences . Any other oral or written communications fro¡n the ..-, parties .to-tire..arbitator shall .be directed. tolhe-AAA..or JAMS (and copied to the Parties) for transmission to the arbittator, unless the Par¿ies and the atbitrator agree other' wise.

26. Timc of .{ward

The award shail bc prômptly made by the arbitrato¡ rurless otherwise agreed by the Pa¡tiss or specified by applicable law. no later than thirty (30) days from the dats of the closing of the proceeding or, if applicable, the closing ofa reopened proceeding.

2?. Forúr of Award

the award shall be in wriling and shall be sìgned by the arbìtrator. The a¡bitrator sliall write a statement of reasons fo¡ the award if requested to do so in the request to initiate proceedings or in the zurswering statament. The award shall be exe¿uted in any manner required by applicable law

28. Modification of Atvard

On order of a courf of competent jurisdiotion' or ol1 agreet ment of the Palties, the arbihator shall rnodify any award. The arbìtrator Dlây modify an award on the motion of a Party if the arbihalor finds that lire award, as rendered, is ambiguous or defective in form, or if the award requires an.illegal or irnpossible act. .These are the only ciroumstanses under which an arbitrator shall have ju¡isdiction to withdr¡iw or modify an award.

29. Set nent

Iftbe Parties setfle tlreir Dispute during the course of the a¡bitration, the arbitrator may set out the terms of the settiement in a consent award.

30. Scope of Ärbitrator's Authority

The a¡bitrator's authority shali be limited to llle resolution of legal Disputes between the Farties. As such, the arbitrato¡ shail be bourd by and shall apply applicable law, including that related to the allocation of tlie bu¡den of proof; as weil as subst¿ntive law, The a¡bitratsr shall ncf have the authority either fo abridge or enlarge substantive 'rights available under applicable lau¿ 'fhe arbitrator may - 'also graut eme¡gency-or-temporary relief tlrat is'or would law. The a¡bitrator shali be be authorizcd by applicable bound by and shall comply with the provisions of the Progrâm and Rules.

31, Judicial Procccdings and Exclusion of Liabilify

A. Neither AAA, JAMS, nor any arbitratot is â nesesssty Party in aly judiciai proceedings relating to proceedings under these Rules,

B. Neither AAA, JAMS, nor any a¡bit¡alor shall be liable to any Party for any ac-t or omission in corurection with any proceedings within the scope of these Rules.

C, A:ry court with jurisdiction over the Pæties may oompel a Party to proceed unde¡ these Rules at any place and may enforce any award made.

D. Parties to these Rules shali be deemed to havç consented that judgrnent upon the award of thc arbitrator may be entcred and enforted in any federal or state court having jwisdiction of the Partjes.

E. Initiation of, p'aficipation in, or removal of a legal proceeding shall not constitute waiver of the right to proceed under these Rulss.

F. Any court with jurisdiction over fhe Pañ.ies nray issue any injrurctive . orders. (iucluding prelinrinarl, injunctions ) if the necessary legal and equitable requirements under applicable law are met. pending thc institution of procee<lings under these Rules.

32. Fee rd Expenses

A, 'Ibc expenses of rvitnesses shall be borne by the ParÇ producing such rvitnesses' exoept as otherwise provided by larv or in tlte ar¡¿ald of the a¡bitlator,

B, .A.ll attomeys' fees sl:all be borne by the Party incutriug them exc.cpl as othenvise provided by larv. by the Proglam, or in the award of úc arbit¡ator.

C. Discovery costs (e.g., court reportcr fees for origirral t'anscrþts) shall be borne by thc Party iniliating lhe discovery. Thc cost of copies of deposition transcr:ipts or ofher discovery shall be borne by the Party ordering the copy.

D. The fees and expenses of experts. consulfallts and oth'

ers retained or consulted b¡' a Party shall he borne by the Parly utilizing drose selises.

E. The Ernployee or Applicant shail pay a $150 fec if he or shc initíates arbjtrafiol or uredjation' Olhelrvise, Employee/Applicanl Partjes shall not tre responsible for payment of lbes atd expenses of ptcecrlings under tlese Rules, including reqlriled lravel of a¡r arùitrator or a mediator' expenses ol'an arbilrafo¡ nrediator. AAÂ or "IAMS, and the cost of any ploof ¡:roduccd at the discretion ofan a¡bit¡ator.

F'. If'the denland fo:: ¡nediation or arbit¡ation is ir:itiated by the Contpany, such fees q'il1 ì:e paid by the Conrpany.

G, l?xcept as olherwise pror4cled by law or in the arryar:d of'thc arbitrator, all other expenses, fccs and costs of proceedings under these Rules shall be borrrc equally by tlio Parties who are not Ernployees/Applicants.

33. fnter¡retafion anrl A¡rplication of Thcsc ltulos

llhe arbitrator shall ititerpret and apply these Rules insofar as ttrcy relate to thc arbitrator's poltlrs antl tluties. All othsr rules shall l¡e in intcrpreted and appliecf by the AA,,\ or JAMS.

34. Applicable Larv

A. Proeeeditrgs under thesc R,Llles ald ally iudicíal review of au,irrds shall bs govetned b)' lhe Act.

9¿ t cept wherc otherwise exprcssly provi' I in these Kules, tlre substantíve law applied $hâll be st¿te or federal substarúivç law which would be applied by a Uniæd States District Court sitting at the place of the proceedÍng

35. Medi¡tion

At any time bçfore the procecdìng is closed, the Pa¡ties may agree to mediate their dÍspute by notifring AAA or JAMS. .4,{.4. or JAMS shall deter¡sine wtat procedures apply tc any such mediation,

36. Spanish

Nabors lndustries, lnc.

April2001 {llr January 11,2017 '

TO; All Employees of Nabors Industries,Ino. a¡d Subsidiaries

RE: Nabor¡ Dispuæ Resolution Program

Dear Employee:

Effective tan (10) days after he date of tbis notico, prlrsuånt æ Sectiol 6 of the Nabors Dispute Rrsotution Progar4 Nabors ludushies; Inc. ('Nabon') gãd its sr¡bsidieries are arnending the Nabors Þirpute Resolution Prograrn and Rules for the determination of all. dispuæs between employees and Nabors or ous of its suhsidia¡iãs.

f¡e aûcndmentc æ ttre Piogra; *¿ frrl* *"

u*lol.¿ oo't!" baok of this fage. Nabots is amending ono (I) sectíon of the N¿box Ðisputc Resolution Progr¡m and one (1) section of the Nabors Dinpute Resolutiou Rulas. You should already bave a copy of the cu¡rest Program and Rulcsn or they mey be found on the Nabors Intranet under policy number 200.80.1 at hüo y'/sqgrsf)abt.uaba$.co$/C I OlHil &ao %Z0ReÈou¡rooç/dof iu li. a¡fä

As before, the Nabors Ðispute Resolutiou Program. as arrcndcd, gives you.fle most effective .and effrcient m€ãns of-rosolving any dispulies you may have through s process which encourages resotution at fte sarliest opportunity, Enployecs do not waive any substantive iegal rights under the Prograo- Ra&er, tåe Frograo, as aurendcd, provides that any substaative legal issues you may htve witl be resolved oir'a¡i individual basis il mediafion or befors a neukal a¡bíEator, whose deoision will bo ûnal and binding on you and the Compauy. Under the Program, as ame¡ded, however,.you waive any procedural rights you may bave to briug e cotrt acfion, on an individu¿1 or on,t,qtass, orillcolirre or ropresenlative basÍs; and you waive your right to a jury friai coaoeming any {ispute you mey bave with the Cotpany or ary Electing Eotity (ae defi¡cd in the . Program), inoludbg auy personal iqiury claims or cl¿ims of disorimination based ou race, n¡tional origrn, geuder, rcligion, ago o'r disability under any federal or shþ oivil rights statutE.

Every individual who worla fo¡ N¿bors Indus*ies, Inc. or a subsidiary is subject to tho Program, as amended" exccpt that the amonded provísions will affect only disputes initiated after the effective date of ihe arieadments, and not my matters pendinè before tbe efÊctive date. Your continued emplo5'ment afrer the date you teceive this notice will constituüc your acce,ptance of tåe amendureats to the Program, both during and aflpr your emploltrent with thb Company.

We look fontr¿rd to continuing to rvork together. tf you have any questions about the ¿glendments to tho Program and Rules or aûy other lerrn of yoúr employmont please do not hesitate to contacttre Human Resources Departrnent of your employer.

Sinceroly,

NABORS INDUSTRIES, INC.

*,1 øpy olthls nol'æe ís avollable in lpanßIa upon rcqbesg fram aty Nabars suisldlaqt!* IIaudn Resoarces DE atTtacn¿ + Unø copb 4c ega noticíø cill dlqtonÍhle en español con solo re4ucrirlø al Ðeparfouenlo de Rs¿ur¡os lltttnanos ðe caolqrl¿r sabsldìa¡la ú¿ Nøúors,

,4qendm ept f s TIII N.a'ß OBS ÐISJLTTE R$QOI,UTION PRQ CB.dM I

4, Re¡olution of Disputes

¿-. All Dispuæs not othenpise se$led by the Palies shail be finally end coaclusively regolved r¡nder tlis Progmm and the Rulcs. The Parties forego arry right either rray bave to a jrny frial on claims relating in any way to any Dirpute.

8. Eacb Diçute shall be arbitxated oa an individual basis, The Parties forego and waive any rigbt to join çr consolidate claime in a¡bitation with others or to m¿ke olains in arbitation æ a ' ropresentative or as ¡ mcmber ola class or in a private attomey general or similar capacity, unless zucÉ'prooedures are agtccd to by all Parties. Ncither thc Company nor ¿ny Employee or Appücant may pursue any Di¡pute on ¿ class action, collectivo action oi consolidated basis or in a re,proseffativa capacity ø behalf of ofåer porsorls or cntities who a¡e claimed io be similarly " dituated; of pãifðiþÉilc i¡'s I okss menr?tðr j¡ súch a. prtíceèding. üõ, iÍrltiuafôr rä ariy proceedlng " under tlis }rogram sh¿Il have no autlority to conduct th'e mattcr as ¿ consolidated, clæs, collective or represênt¿tive action.

C. If the procedural ümiution in Paragraph B of thìs ,Section is held unenforcoable by * cotnt in a procecding ín rvhioh a party seeks úo pursue a consolidated, class or colleotive action or others¡ise aot in a røpresenfative capacity, then flis Program shall apply to such ptqce€ding only to tJre . following exte¡rl The cou¡t will deoidç whefhor the Disputo should prooæd on a consolidatd

cla¡s, colloctivc or other re¡:ræentative basis sJ¡{ if sq will definc tbe ncopo of the slass. None of tbe forogobrg detcrø.iuatiot¡ sb¿ll be submited tq thc drbitraør, and in no ovent shall tle a¡bitator have the power to detennine class, Çollective ot re,pfesentativo action certificetion. Tho court's decisions will bo subject to appeal purÉuaüt to tåe applicable rules of procedure. If the court certifies a olaôs, colleotive oÍ other representative action, then all other detemdnatíons in or relaæd to the Díspute shall be mado by the arbitator. The a¡bi$¿tor shall detersrino questions of liabitity to or'of tåe clæs ¿s a wbole and romedies available to or fròm tle olass as a whole. The afb¡!:ètor sh¿ll also decidç the reliet if Ðy, to wbioh a patty or class me¡nbcr may be entitled iadividualty. If the court, however, ultímafely denies a parly's request úo proceed o.n a consolidated, class, oolleoüive or ropresentative baeis, thon that party's individual claím(s) shall sti1l be subject to this Program and referable to ¡rbiüation püJsuâût to itÁ tsrbs.

:

30. Scope of Arbftrator'¡ Authority

A. Thc a¡bitrator's authority shall be liflited to the resolutlon of legal Disputes between the Parties.

As suc\ the a¡titatsr shall be bound by and shalt apply applicable iaw, including that related ûo the allocation of the bu¡deu of proof, as well as substantive law. The arbitrator sball not have the authority either to abridge or enlarge subs{¿utive rights available under applicable law. The arbitator may also gtâût eürergsncy of te.mporary relief that is or would be authorized by applicable law. fhe arbitrator ¡hall be bound by and shall oomply with tl¡e pmvisious of the Program aad R¡les.

B. ' Tbe arbihator shall not h¿ve thc powor to hear a.uy cl¿ims in arbihation as a class or collective action, or in aprivate atioiney general or simila¡ capaciþ, or on any other represontativc capacity basis, or, absent fhe consent of all parfies, on a consolidafed basis. Thp arbitaûor shall be authorized to decide only the dirputed claims bçtwcçn tle i¡dívidual parties.

PROGRAMA DE RESOLUCIÓN DE CONFLICTOS DE NABORS

Copies of thß pamphlet are available in Spanish, upon request,from any Nabors subsidiary's Human Resources Department.

Copias de este þlleto estan disponible en español con solo requerirlas al Departamento de Recursos Huttanos cuolQu yr subs Nahors ¿U rdyry ,lU

PROGRAMA DE RESOLUCIÓN DE CONFLICTOS DE NABORS

l. I. Propósito y Diseño

El Plogranra está diseñado con el fin de proporcionar un medio parc la resolución rápida, justa, accesible y económica de conflictos entre la Compañía y los Empleados actuales y anteriores de la Cornpañfa y los Aspirantes para puestos de empleo, con respecto a o corno consecuencia de una relación de empleo actual, anterior o potencial con la Compañía. EI Progratna está diseäado para facilitar un proceso para la resolución definitiva de todas los Conflictos descriptos en los términos del misnlo. No está diseñada para linitar o aumentar los derechos fundamentales disponibles bajo las leyes aplicablos. El Programa modifica eu forma contractual la relación de empleo efectuado entre la Compañla y sus Empleados, pero sólo en la medida en que esté expresamente establecido en el Programa, El Prograrna deberá ser interpretado de acuerdo con esta intención.

2. Definiciones

A. UAAA" significará la Asociación Americana de Arbitraje (the American Arbritration Association)

B. "JAMS" significará los Servicios de Mediación y Arbitraje Judiciales (Judicial Arbilration and Mediation Services)

C, La "Ley" significará la Ley Federal de Arbitraje (the Federal Arbitlation Act)

D. La "Compañía" significará el paÛocinador del Programa y las filiales directas o indirectas (ya sean una corporación, una compañla de responsabilidad limitada, una sociedad u otra entidad legal) del patrocinador, la Entidad que Selecciona el Programa, la entidad o persona que se alega tiene responsabilidad asociada o separada con respecto a cualquier Conflicto, y todos sus directores, funcionarios, empleados y agentes, plan de beneficios, ya sea exento o no-exento de impuestos, establecido o rnantenido por dicha entidad, los fìduciarios, agentes y empleados de dichos planes, y los sucesorcs y beneficiarios de dichas entidades, planes y personas; siempre y cuando, en el caso de la Entidad que selecciona ei Programa, "La Compañía" deberá incluir la Entidad que Selecciona el Programa solamente en la medida establecida en e! contrato de dicha Entidad en la que estará obligada por el Programa.

E. "Conflicto" signifrcará todas las denrandas legales y justas, los reclamos y controversias, de cualquier lndole o tipo, ya fueren contractuales, o de responsabilidad extracontractual, de acuerdo con el derecho escrito o las regulaciones o alguna otra ley, entre las pattes obligadas por el Programa o por un contrato para resolver los Conflictos de acuerdo al Programa, o entre urìa persona obligada por el Programa y una persona o entidad con derecho a recibir sus benefìcios, incluyendo pero sin limitarse a lo siguiente:

1 este Programa;

L la contratación o la posible recontraiaciÓn de un Empleado, incluyendo los términos, condiciones o el cese de dicho empleo con la Compañla;

J los beneficios o incidentes de ernpleo con la Compañia;

4. todo asunto relacionado con la relación entre el Empleado y la Compañla incluyendo, por ejemplo pero sin limitarse a: la discriminación basada en la raza, el sexo, la religión, el origen nacional, la edad, la condición de veterano de guerra o cualquier incapacidad; el acuso sexual u cualquier otro tipo de acoso; las represalias por concepto de compensación laboral; la difamación, la imposición de un agravio emoçional, la reclamación de antimonopolio relacionado con sueldos o el estado de, una reclamación por o una membresía relacionado con los planes de beneficios para ernpleados;

5. la solicitud de un Aspirante para un puesto de empleo y las acciones y decisiones de la Cornpañía con respecto a dicha solicitud; y

6. cualquier lesión personal supuestamente incurrida en o alrededor del sitio de trabajo de una Compafiia o durante el término y alcance de las actividades laborales de un Empleado,

El "Conflicto" incluye todo lo anteriormente mencionado , independientemente del momento en que hayan ocurrido los eventos en los cuales estén basados, incluyendo los asuntos basados en eventos que hayan sucedido antes de que el Empleado estuviera sujeto a este Programa (siempre y cuando dichos conflictos no fueren establecidos con anterioridad en un tribunal juridico) o después de la termiuación de la releción de ernpleo t'. La "Bntidad que Selecciona el Programa" significará toda entidad legal que hubicra acordado una obligación por medìo el Programa de acuerdo a las disposiciones de este documenlo.

C. El "Empleado" significará toda persona que estuviera o hubiera sido empleada por la Compañía a la fecha o después de la fecha de vigencia de este Programa, incluso si estuviera o no estuviera empleado por la Compañía en el mornento en que una demanda fuera presentada en relación con un Conflicto, y que residiera en los Estados Unidos de América, o que estuviera sujeto a las leyes de los Estados Unidos o de cualquier estado, municipalidad u otra subdivisión polftica de los Estados Unidos.

H. El "Aspirante" significará toda persona que estuviera buscando o que haya buscado empleo con la Compañia después de la fecha de vigencia de este Proglama.

Las "Partes" significarán, las personas perjudicadas en relaciólr con un Conflicto particular, y/o las entidades que obligadas y vinculadas por estc Pt'ograma.

J. El "Programa" significará este Programa de ResoluciÓn de Conflictos de Nabors, y como f'uere modifïcado de tiempo en tiempo.

K. Las "Reglas" significarán las Reglas para la Resolución de Conflictos de Nabors, según fueran modificadas de tiempo en tiempo, que seBn aplicables a Ia rnediación y el arbitraie.

L. El "Patrocinador" signifrcará Nabors Industries, Inc., una corporación del estado de Delaware.

3. Nombre, Aplicacién y Cobertura

A. El Programa será denominado el "Programa de Resolución de Conflictos de Nabors". De forma alternativa , podrá ser referido como el "Programa de Resolución de Confl ictos".

B. Hasta que sea revocado por la entidad Patrocinadora de acuerdo con lo dispuesto en este Programa, dicho Programa se aplica y obliga la Compañla" cada Empleado y cada Aspirante y sus herederos, ios benefìciarios y los cesionarios de dicha persona o entidad; siempre que este Programa no se aplique a un Empleado que sea parte de un grupo de Empleados representados pol'una organización laboral o a la Compañía relacionada con dichos empleados, excepto

en la medida permitida en un convenio de negociación colectiva (entre patronos y sindicatos obreros) o legalmente impuesto por la Compañía cuando ningún convenio de ncgociación colectiva estuviera vigente.

C. Este Programa se aplica a todo Conflicto, salvo se estipule lo contlario en este documento.

D. Sin perjuicio de lo estipulado en este Programa, el mismo no se aplica a las reclarnaciones por concepto de indemnización o compensación de beneficios para obreros o de beneficios por concepto de desempleo,

E, La rnediación y el arbitraje estátr solamente disponibles para los Conflictos que involucren derechos que estuvieren protegidos legalmente.

F. Sin perjuicio cle otras disposiciones establecidas en este documento, todo tribunal conjurisdicción sobre las Partes puede emitir órdenes judiciales (incluyendo requerimientos judiciales preliminares) si los requerimientos legales y equitativos de acuerdo a las leyes aplicables se cumplieran durante la institución de las demandas bajo el Programa. Adicionalmente, una demanda bajo la Ley denominada The Limitation of Ship Owners Liability Act, 46 U.S.S $$l8l-189, no estará sujeta a este Programa.

4, Resolución de Conllictos

Los conflictos que no fueren resueltos por las Pafies serán definitivamente resueltos de acuerdo con este Programa y sus Reglas.

5. Artículo referente a Represalias

No se podrá imponer ninguna forma de disciplina, ni se deberá tolnar represalias con los ernpleados por haber iniciado o pafticipado de buena fe en un proceso o una demanda de acuerdo con este Programa,

6. Enmienda

A. Este Programa puede ser modifrcado por el Patrocinador en cualquier momento rnediaute una notificación previa a los empleados actuales de por lo menos l0 dlas. Sin embargo, no se deberá aplicar ninguna enmienda a un Conflicto por el cual una demanda haya sido iniciada de R"*l"t t"lvo conven8a cõnrar¡o acuerdo cån las se lo B. El Patrocinador puede modificar las Reglas en cualquier momento por medio de la notilicación de las enmiendas en AAAy JAMS. Sin embargo, ninguna entnienda de

las Reglas deberá aplicar a un Conflicto por el cual una demanda haya sido iniciada de acuerdo con las Reglas, salvo se acuerde lo contrario.

7. Terminación del Programa

Este Programa podrá ser ter¡ninado por el Patrocinador en cualquier momento mediante la notificación a los Empleados actuales en un plazo no mayor de l0 días previo a la terminación antedicha. Sin embargo, la terminación no entrará en vigencia para los Conflictos para los cuales una demanda haya sido iniciada de acuerdo con las Reglas antes de la fecha de terminación, salvo se acuerde lo contrario.

8. Ley Aplicable

A. La Ley se aplicará a este Programa, las Reglas y cualquier demanda realizada de acuerdo al Programa o lds Reglas, incluyendo Ias demahdas para obligar, hacer cumplir, anular o confirmar demandas, adjudicaciones, órdenes de un árbitro, o resoluciones de acuerdo al Programa o las Reglas,

B. Todos los arbitrajes efectuados de acuerdo con este Programa deberán sel convocados tan cerca como fuera posibte del sitio de trabajo donde sucedieton los eventos en disputa, en caso que Nabors continrie realizando labores en esa ubicación. De lo contrario, el arbitraje tomará lugar en el sitio más conveniente para la mayor parte de los testigos.

C. Salvo se establezca de manera expresa en las Reglas contenidas en este documento, se cons€rvan los derechos legales fundamentales, los recursos y los mecanismos de defensa de todas la Partes. En caso de arbitraje , el árbitro tendrá la autoridad para determinar las leyes aplicables y de ordenar las compensaciones legales o equitativas, que una Parte pudiera obtener de un tribunal de jurisdicción competente en base a las reclamaciones presentadas en Ia demanda.

D. Salvo se estipule de forma expresa en este documento, o en las Reglas del mismo, no se deberá interpretar el Programa con el propósito de otorgar derechos, recursos o mecanismos de defensa fundamentales, legales o contractuales adicionales, los cuales no podrfan ser aplicados por un tribunal de unajurisdic-

ción competeûte en ausencia del Programa.

E. Sin perjuicio de las disposiciones establecidas en la subcláusula anterior, en toda demanda presentada ante un árbitro, el árbitro, a su total discreción, podrá permitir que un Empleado o Aspirante prevalcciente reciba los honoralios para el pago de abogados como parte del fallo dictado. La discreción para permitir la concesión de una asignación de honorarios de acuerdo a esta subcláusula será adiciotral a toda discreción, derecho o autolidad que el árbitro pudiera tener de acuerdo a las leyes aplicables. Si el árbitro concede los honorarios de abogado sin la autorización para dicha asignación pot derecho escrito o contrato, dicha asignación estará limitada a $2,500.00.

9. Procesos Administrativos

A. Este Programa se deberá aplicar a un Conlìicto que e$tuviera pendiente ante toda entidad administrativa o tribunal local, estatal o federal, a menos que estuviera prohibido por la ley.

B. La participación en todo proceso administrativo o judicial por la Compaäía no deberá afectar la aplicabilidad del Programa a dicho Conflicto una vez que fuere terminado el proceso administrativo o judicial. Un fallo, una recolnendacién o una decisión efectuada por una entidad administrativa en base a los mél'itos de un Conflicto deberá tener el tnismo peso o efecto legal de acuerdo al Programa como si hubieran sido dictados por un tribunal de una jurisdicción cotnpetente.

10. Recurso Exclusivo

Los procesos efectuados de acuerdo al Programa deberán ser el método exclusivo, inapelable y vinculante por medio de los cuales se resolverán los Conflictos.

Il. Las Entidades que Seleccionen el Programa

A. Las Corporaciones u otras entidades legales, qu€ no fuesen Partes del mismo, tienen la opción de decidir si quisieren esfar vinculadas y obligadas por este Programa mediante un contrato escrito con el Patrocinador.

B. Dicha opción para parlicipar en este Progtama puede ser efectuada en relación con algunos tipos de Conflictos, o en relación con algunas personas, a discreción de la Entidad que Seleccione el Programa.

12. La Fecha de Vigencia

La Fecha de Vigencia de este Prograrna será e1 I 5 de abril de 200 1.

13. A,tribución de Separación

Los términos de este Prograrna y las Reglas son separables. La falta de validez o de la obligación para que se cumplieran algunas de las disposiciones en este documento no afectará la aplicación de las otras disposiciones. Donde fuere posible, y en forma consistente con los propósitos del Programa, toda disposición que fuera invalidada en el Programa o en las Reglas se podrá modihcar y después de modificada, se podrá obligar su cumplirniento.

14. Asentimiento

El empleo o la continuación del empleo después de la Fecha en Vigencia de este Programa constituyen el consentimiento por parte del Empleado y la Compaflfa para estar obligados por las disposiciones de este Programa, durante la duración del empleo y después del cese del mismo. La presentación de una solicitud de empleo, independientemente del fonnulario utilizado, constituye el consentimiento por parte del Aspilante y la Compañla para estar obligados por las disposiciones de este Programa.

REGLAS PARALA RtrSOLUCIÓN DE CONFLICTOS DE NABORS

1. Definiciones

Todas las definiciones incluidas en el Programa de Resolución de Conflictos de Nabors se aplicarán a estas Reglas.

2. Aplicación

A. Si hubieran reglas diferentes que fueran aplicables a una determinada clase específica de Conflicto, y éstas lrubieran sido adoptadas por el Patrocinador y notificadas a AAA y JAMS, estas Reglas no se aplicarán a dicha clase de Conflictos.

B. Estas Reglas se aplican de la forma en que existieran en el morngnto cn que se iniciatan los procesos establecidos de acuerdo con las mismas.

En la medida que fuera consistente con estas

L

las Reglas de Resolución de Conflictos Laborales de AAAo JAMS también se aplicarán a todos los pt'ocesos reglamentados por estas Reglas.

3. El Inicio del Proceso

A. Una Parte puede iniciar la demanda de acuerdo con lo establecido por estas Reglas en cualquier momento, sujeto a los mecanismos de defensa e incluyendo aquellos que apliquen en el tiempo oportuno de la reclamación, incluyendo las limitaciones y demoras indebidas.

B. Una Pafe puede iniciar la demanda mediante Ia entrega de una solicitud escrita para iniciar 1a demanda en AAAo JAMS y después del pago de cargo administrativo correspondiente.

C. Las copias de la solicitud deberán ser entregadas a todas las otras Partes del Conflicto por AAAo JAMS. La solicitud deberá describir la índole del Conflicto, el monto involucrado, si !o hubiese, el recurso que se solicita y el sitio solicitado para el proceso.

D. Las demandas también pueden ser iniciadas pot un Empleaclo o Aspirante mediante la entrega de una solicitud escrita para iniciar los procesos al Administrador del Programa de Resolución de Conflicfos de la Compaflía. En dicho caso, la Compañía deberá entregar en la brevedad posible a AAA o JAMS toda solicitud que hubiera recibido y que hubiera sido entregada en forma apropiada.

E. Las Partes contra quienes se haya presentado una demanda deberán presentar una declaración en respuesta a dicha demanda dentro del plazo de 2l días de la fecha a partir de la que se recibió la notificación de la intención dc arbitraro la descripción de las reclamaciones, Ia cual deberá incluir las contrademandas y las solicitudes para que el árbitro (si lo hubiera) prepare una declaración fundamentando las razones por las cuales se concede la indemnización.

4. JuntaAdministrativa

AAA o JAMS deberán convocar una junta administrativa tan pronto como sea posible después de haber recibido la declaración de respuesta o después del vencimiento del plazo para la presentación de la declaraciÓn de respuesta, si

dicha declaración no hubiera sido presentada. La junta puede ser sostenida en persona o por teléfono. En lajunta,

En la medida que fuera consisteute con estas * .

AAAo JAMS determinarán si las Partes han acordado un método para resolver el Conflicto. Si las Panes estuvieran de acuerdo, AAA o JAMS implementarán el proceso de acuerdo con sus reglas una vez que se haya efectuado el pago del cargo conespondiente. Si las Partes no pueden llegar a un acuerdo, o si las Partes hubieran intentado llegar a un acuerdo y no pudieron resolver el Conflicto por medio de la mediación u otro mecanismo que no fuera vinculante u obligatorio, el Conflicto deberá ser arbitrado de acuerdo con estas Reglas.

5. El Nombramiento de un Árbitro

Inmediatamente después del pago del cargo por concepto de arbitraje, AAA o JAMS deberán enviar sirnultállearnente a cada Parte involucrada una lista idéntica de los nombres de las personas que Íìreron escogidas de un panel de árbitros calificados que AAA o JAMS cleberá seleccionar y mantener. Cada una de las Partes del Conflicto tendrá catorce (14) días a partir de ia fecha del comunicado para tachar los nombres que no prefiere, numerar en orden de preferencia los nombres restantes y devolver la lista a AAA o JAMS. Si una de las Partes no regresara la lista dentro del plazo especificado, todas las personas en la misma serán consideradas como aceptables. Entre las personas que hayan sido aprobadas en ambas listas, y de acuerdo con el orden de preferencia mutua, AAAo JAMS deberán invitar a que uno de ellos o más de uno ejerza./n de árbitro/s. En los casos en los cuales más de $2,000,000 esté en controversia, cualquiera de las pafies tendrá el derecho de solicitar que el arbitraje proceda delante de un panel de tres miembros en vez de un solo árbitro. La Parte que escoja un panel en estas circunstancias deberá notificar a las otras Partes durante lajunta adlninistrativa descrita en la Cláusula 4 del Plograma. Cualquiera de las Partes tendrá el delecho de tachar una lista de árbitros en su totalidad. Cuando una de las Partes ejercita este derecho, AAAo JAMS deberá emitir una nueva lista de árbitros de manera consistente con los procesos anteriormente mencionados.

6. Requisitos para la designación dc un Árbitro

Ninguna persona deberá ejercer como árbitro en ningún caso en el cual dicha persona tuviera un interés financiero o personal. Antes de aceptar el nombramiento, el posible candidato deberá revelar cualquier circunstancia que posiblemente pudiera impedir una audiencia oporluna o crear la presunción de parcialidad. Una vez recibida dicha infor'- mación por parte del árbitro o de cualquier otra fuente, AAA o JAMS tendrá que sustiluir esa persona o çomunicar la información a las Partes involucradas para que

A partir de entonces, puedan formular sus comentarios. AAA o JAMS podrán descalificar dicha persona y su decisión será concluyente.

7. Vacantes

Si hubiera una vacante pol cualquier raz6n o si un árbitro designado no pudiera ejercer en forma oportuna, se deberá aplicar el proceso para determinar nombramientos descripto en la Cláusula 5 para la selección de un árbitro substituto.

8. Fecha, Hora y Sitio para las Audiencias

A. El árbitro deberá frjar Ia fecha, hora y sitio de cualquier proceso efectuado dç acuerdo con las disposiciones de la Cláusula 88 del Programa.

B. Se proporcionará la nofificación de la audiencia con un plazo no mayor de diez (10) dlas de anticipación, salvo que cl árbitro determinara o que las Partes convengan que un periodo más corto fuera necesario.

C. El árbitro deberá realizar su labor, sin incurrir en gastos indebidos, para acomodar el Empleado o el Aspirante en la selección de un sitio para el proceso.

9. Juntas

A pedido de AAA o JAMS, o de una de las Partes o por iniciativa del árbitro, el árbitro de AAA o JAMS podrá convocar a juntas previa notificación para la discusión y la determinación de cualquier asunto que agilice el proceso, incluyendo:

A. la jurisdicción,

B, la aclaración de asuntos de especial interés

C. la determinación de asuntos preliminares, incluyendo el sumario de Ias consideraciones y disposiciones legales

D. la junta prevía a la audiencia

E, el tiempo y sitio para los procesos o juntas de arbitraje

F. los recursos equitativos o legales interinos autorizados por las leyes aplicables C. los memorandums anteriores o posteriores a la audiencia

H. las disposiciones, y/o

I. cualquier otro asunto o proceso fundamental

10. La modalidad para realizarAudiencias y Juntas

A discreción del árbitro o por común acuerdo entre las Partes, se podrán realizarjuntas y audiencias por leléfono o por escrito, así como en persona.

11. La Junta previa a la A.udiencia

A. En un horario que será determinaclo por el ár'bitro, cada una de las partes deberá entregar por adelatttado los nombres y direcciones de los testigos que se pro-pone presentar y también los documentos que tiene planeado presentar.

B. El árbitro tendrá la discreción para determinar el formato , la cantidad y la frecuencia de las juntas con las Partes involucradas.

C. Las juntas antedichas podrán tomar el formato permitido por las Reglas Federales para Procesos Civiles, ser modificadas de tiempo en tiempo, y estar sujetas a las restricciones impuestas por el árbitro.

12. Representación

Cualquiera de las Paúes podrá ser representada por un abogado o por cualquier otro representante autorizado

13. La Asistencia a las Audiencias

El árbitro deberá guardar la privacidad de los procesos hasta donde fuera permitido por la ley. Todas aquellas persoltas que tienen un interés personal en el caso a ser tratado tendrán el derecho de asistir a los procesos de arbitraje.

El árbitro deberá tener la autoridad de excluir a cualquier testigo que no fueta una de las Partes u otra persona esencial , durante del testimonio de otros testigos. El árbitro deberá determinar si alguna otra persona podrá asistir al proceso. A pedido de cualquiera de las Partes, el árbitro deberá excluir cualquier testigo durante el testimonio do otros testigos.

14. Aplazamiento de los procesos o juntas de arbitraje

A. El árbitro, dcbido a una causa justificada demostrada por una de las Paftes, o de común acuerdo con las Partes, podrá postergar cualquier proceso o junta de arbitraje.

B. La realización de procesos judiciales pendientes y relacionados con el mismo asunto no constituye una causa justificada para su aplazamiento.

I5. Declaración Jurada

Antes do proseguìr con la primera audiencia, cada árbitro podrá tomar eì juramento para el ejercicio de su cargo y así lo hará si fi¡era requerido por la ley. El árbitro puede requerir que los testigos tcstifiquel bajo juramento conducido por una persona debidamente calificada y así lo hará si fuera requerido por la ley o requerido por alguna de las Partes,

16. Registro de los Procesos de Arbitraje

No habrá ningún registro estenográfico, de audio o video de los procesos de arbitraje salvo que fueran solicitados por alguna de las Partes o determinado por el árbitro. La Parte que solicite el Íegistro deberá pagar el costo total de su producción. Se suministrarán copias del registro a pedido de las otras Partes y \na vez que se haya pagado el costo de la reproducción.

17. Proceso

El Proceso deberá ser dirigido por el árbitro en el orden y de la manera que permita la más rápida preseniación de la evidencia y de los argumentos de las Partes.

18. El Arbitraje en Ausencia de una de las Partes

El árbitro podrá proseguir en ausencia de una de las Partes o ropresentant€s que, después de la debida notificación, no se presentaran o no obtuvieran un aplazamiento. No se alcanzarâ un fallo solamente en base a la falta de asistencia de una de las Partes. El árbitlo deberá requerir que cualquiera de las Partes presentes presente toda la evidencia que el árbitro requiriera con el ftn de alcanzar un fallo o conceder una asignación.

19. Evidencia

A. El árbitro será el único que juzgará la relevancia, la importancia, y la admisibilidad de la evidenciaque fuera presentada. La conformidad con las reglas legales referentes a evidencia no se¡á necesaria.

B. El ár'bitro puede citar con una orden de comparecencia a testigos o documentos a pedido de una de las Partes o por Ia inicìativa propia del árbitro.

C. El árbitro puede considerar la evidencia de los testigos mediante una declaración jurada o una declaración, pero le deberá dar el peso que el árbitro considere apropiado después de haber considerado cualquiel objeción hecha para su admisión al proceso de arbitraje.

20. Presentación de la Evidencia después de la Audiencia

La evidencia documentada a ser considerada por el árbitro deberá ser presentada en la audiencia salvo que el árbitro encuentre una justifìcación pala que se perrnita una presentación posterior a dicha audiencia. Se les deberá proporcionar a todas las Partes la oportunidad para examinar y comentar sobre cualquier evidencia que fuera presentada posteriormente a la audiencia. El árbitro deberá permitir la presentación de expedientes a pcdido de una de las Partes y deberá determinar el proceso y el momento oportutro de dicha presentación.

21. El Cierre y Ia Reapertura de los Procesos de Arbitraje

A. Cuando el árbitro esté satisfecho que el registro está completo, incluyendo los expedientes que hayan sido presentados con su permiso después de la audiencia, el árbitro deberá declarar el cierre del proceso.

B. Se podrá reabrir el proceso por iniciativa del árbitro o mediante la solicitud de una de las Partes en cualquier momento anterior al fallo del árbitro.

22. Renuncia al Derecho de Objetar en el Proceso de Arbitraje

Después de haber tenido conocimiento de gue no se hubiera cumplido con las disposiciones o requerimientos relacionados con estos procesos y reglas de arbitraje, cualquiera de las Partes que no se oponga por escrito será considerada como que hubiera renunciado al derecho de objetar, 23. Notificacioncs

Cualquier comunicado, notificaciones o procesos necesarios o apropiados para la iniciación o la continuación de cualquier proceso de arbitraje efectuado de acuerdo con estas Reglâs (incluyendo el fallo del árbitro, cualquier demanda judicial en relación con el mismo, o la adjudicación de una indemnización efectuada de acuerdo con estos procesos) puede ser enviado por correo dirigido a la Parte o su representante a la dirccción más reciente cle la cual se tuviera conocimiento o entregado mediante un servicio de mensajeria. AAAo JAMS, las Partes, y el árbitto también podrán usar la fransmisión por facsímile, telex, telegrama, u cualquier otra forma escrita de comunicación electrónica con el fin de entregar cualquier notificación tequerida por esta Reglas.

24, Lz Comunicación con AAA, JAMS y la Compañfa

A Cualquìera de las Partes podrá notificar o comunicarse con AAA, comunicándose con:

Regional Administrador (Adrnilistrador Regional) American Arbitration Association (Asociación Amsricana de Arbitraj e) 1001 Fannin St, Suite 1005 Houston, Texas 77002 (7 t3) 739-13022 Fax: (71 3) 739-1702

B. Cualquiera de las Par-tes podrá notificar o comunicarse con JAMS, comunicándose con:

JAMS 345 Park Avenue, 8th Floor NewYork,NY 10154 (212)751-2700 Fax: (212) 751-4499

C. Cualquier notificación o comunicado con la Compañla deberá ser dirigido a:

Legal Department (Departamento Legal) Nabors Industries, lnc. 515 West Greens Road, Suite 1200 Houston, T exas 7 7 061 -4525 (28r) 874-0035 Fax: (281) 775-8431

25. Conrunlcación con el .Árbitro

No habrá ninguna comunicación con Ias Partes y el árbitro aparte de la comunicación en las audiencias o juntas de arbitraje. Cualquier otra forma de comunicación ya sea oral o esuita de las paftes al árbitro deberán ser dirigidas a AAA o JAMS (y su copia enviada a las Partes) para ser transmitidas al árbitro, salvo que las Paftes y el árbitro acuerden 1o contrario.

26. Plazo para efectuar el Fallo de Arbitraje

El fallose efectuará rápidamente por el árbitro, salvo que se hubiera acordado lo contrario por las Partes o que estu-

viera estipulado por las leycs aplicables, en un plazo no mayor de treinta (30) días a partir de la fecha del ciene de los procesos o, si fuera aplicable, del ciere de un proceso de arbitraje que haya sido reabierto.

27. El Formato del Fallo de Arbitraje

El fallo del arbitraje deberá ser por escrito y deberá ser firmado por el árbitro. El árbitro deberá redactar una declaración de las razones para el fallo, si fuera requerido en Ia solicitud para iniciar los procesos o en la declaración de respuesta que se hubieran presentado, El fallo del árbi - tro deberá ser ejecutado de la manera requerida por las leyes aplicables.

28. Modificaciones del Falto del .{rbitro

Como consecuencia de un mandato de un tribunal de jurisdicción competente, o por común acuerdo entre las Pafes, el árbitro deberá modificar cualquiêr fallo que se hubiera dictado. El árbitro podrá modificar un fallo rnediante la moción de alguna de las Partes si el árbitro considera que el fallo fuera ambiguo o presentara algún defecto, o si el fallo requiriera un acto ilegal o imposible de realizar. Estas son las únicas circunstancias por medio de las cuales un árbitlo tendrá jurisdicción para retirar o modificar un dictarnen o fallo.

29. Resolución

Si las Partes resuelven su Disputa durante el transcurso del arbitraje, el árbitro podrá describir los términos de la resolución en un fallo de consentimiento.

30. Alcance de la Autoridad det Árbitro

La autoridad del árbitro deberá estar limitada a la resolución de Conflictos iegales entre las Partes. Como tal, el árbitro deberá estar obligado por y deberá aplicar las leyes aplicables, incluyendo las que estén relacionadas con la determinación del peso de la prueba, así como las leyes fundamentales. El árbitro tendrá la autoridad para limitar o extender los derechos fundamentales protegidos por las ieyes aplicables. El árbitro podrá tarnbién conceder un recurso de emergencia o provisional que esté o que podrfa estar autorizado por las leyes aplicables. El árbitro deberá estar obligado a cumplir con las disposiciones del Programa y las Reglas.

31. Los Procesos Judiciales y la Exclusión de Responsabilidad

A. Ni AAA, JAMS o ningún árbitro deberán constituir

ninguna de las Partes de ningún proceso judicial en relación con los procesos de arbitraje efectuados de acuerdo con estas Reglas.

B. Ni AAA, JAMS o ningrln árbitro será responsable ante ninguna de las Partes por ningún acto de ornisión en relación con cualquier proceso que se encuentre dentro del alcance de estas Reglas.

C. Cualquier tribunal con jurisdicción sobre las Pattes podrá obligar a alguna de las Partes a proceder de acuerdo con estas Reglas en cualquier lugar y podrá hacer cumplir cualquier fallo que se haya dictado.

D. Se considerará que las Partes bajo estas Reglas consienten en que el fallo del árbitro podrá ser admitido y que dicho fallo se podrá hacer cumplir en cualquier tribunal federal o estatal que tuviera jurisdicción sobre las Partes.

E. La iniciación de, la participación en, o la eliminación de un proceso legal no constituirá una renuncia al derecho a procoder de acuerdo con estas Reglas.

F. Cualquier tribunal con jurisdicción sobre las Partes podrá presentar órdenes judiciaìes (incluyendo órdenes preliminares) si se cumplieran los requisitos legales necesarios y equitativos de acuerdo con las leyes aplicables, en espera de la institución de los procesos de arbitraje efectuados de acuerdo con estas Reglas.

32. Honorarios y Gastos

A. Los gastos de los testigos deberán ser pagados por la Parte que presenta dichos testigos, salvo se indique lo contrario en las leyes aplicables o en el fallo del árbitro, B. Todos los honorarios de los abogados deberán ser pagados por la Parte que los contrató, salvo se indique lo contrario en las leyes aplicables, en el Programa o en el fallo del árbitro.

C. Los costos de las juntas a realizarse (por ejemplo; los honorarios del relator para la transcripción original) deberán ser pagados por la Parte que inicia lajunta. El costo de las copias de la transcripción de la declaración jurada y cualquier otro costo deberá ser pagado por la Pa¡te que solicite la copia.

D. Los honorarios y los gastos de los peritos, asesores y demás que fueren presentados o consultados por una de las Partes, deberán ser pagados por la Parte que utilice dichos servicios.

E. El Empleado o Aspirante deberá pagar un cargo de $150 si él o ella inicia el arbitraje o mediación. Aparte de dicho cargo, el Empleado / Aspirante no será responsable de pagar los honorarios y gastos del proceso efectuado de acuerdo a estas Reglas, incluyendo los viáticos rcqueridos de un árbitro o mediador, AAA o JAMS, y el costo de cualquier evidencia que fuere presentada a la discreción del árbitro.

F. Si la demanda para mediación o arbitraje es iniciada por la Compañia, dichos honorarios serán pagados por la Compañía.

G. Salvo se indique lo contrario en las leyes vigentes o en el fallo del árbitro, todos los otros gastos, honorarios y costos del proceso efectuado de acuerdo a estas Rcglas serán pagados de manera equitativa por las Partes que no son Empleados/Aspirantes

33. Interpretacién y Aplicación de Estas Reglas

El árbitro deberá interpretar y aplicar estas Reglas en lo que respecta a los poderes y deberes del árbitro, Todas las otras reglas deberán ser interpretadas y aplicadas por AAA o JAMS.

34. Ley Aplicable

A. Los Procesos efectuados de acuerdo a estas Reglas y la revisiónjudicial de los fallos deberán ser regidos por la Ley.

B. Salvo se indique lo contrario de forma expresa en estas Reglas, las leyes fundamentales aplicadas deberán ser leyes estatales o leyes federales fundamentales que serían aplicadas por un Tribunal de Distrito de los Estados Unidos que tomara el lugar del proceso de arbitraje.

35. Mediación

En cualquier momento después de que el proceso de arbitraje haya concluido, las Partes podrán acordar la mediación de su disputa por medio de la notificación de AAAo JAMS. AAAo JAMS deberán determinar que procesos se aplican a dicha mediación.

36. Español

Este Programa de Resolución de Conflictos se €ncuentl'a disponible en inglés y en español

Nabors lndustries, lnc.

April 2001 {lll)

17 de enero de2007

A: Todos los Empleados de Nabors Industries, Inc. y Subsidiarias

REF: Programa de Resolución de Disputa de Nabors

Estimado Empleado:

A partir de diez (10) días después de la fecha de este aviso, de conformidad con la Sección 6 del Programa de Resolución de Disputa de Nabors de Nabors Industries, Inc. ("Nabors") y sus subsidiarias están enmendando el Programa y Reglamentos de Resolución de Disputa de Nabors panla determinación de todas las disputas entre los empleados y Nabors o una de sus subsidiarias.

Las enmiendas al Programa y Reglamentos están anexas en la parte posterior de esta página. Nabors estás enmendando una (1) sección del Programa de Resolución de Disputa de Nabors y una (l) sección de los Reglamentos de Resolución de Disputa de Nabors. Usted debe ya tener una copia del programa y los reglamentos actuales o pueden encontrarse en la Intranet de Nabors, de acuerdo a la política número 200.80.1, en http:lisharepoint.nabo .

Como antes, el Programa de Resolución de Disputa de Nabors, incluyendo sus enmiendas, le da los medios más efectivos y eficientes para resolver cualquier disputa que pueda tener, a través del proceso que estimula la resolución a la oportunidad más inmediata. Los empleados no renuncian a algún derecho legal sustantivo de acuerdo al Programa. En su lugar, el programa, incluyendo sus enmiendas, estipula que cualquier asunto legal sustantivo que pueda tener, sea resuelto sobre una base individual por mediación o ante un árbitro neutral, cuya decisión será final y que lo obliga a usted y a la Compañía. De acuerdo al programa. incluyendo sus enmiendas, sin embargo, usted renuncia a todo derecho de procedimiento que pueda tener para iniciar una acción judicial en base individual, colectiva, de clase o representativa; yusted renuncia al derecho de unjuicio antejurado en relación con alguna disputa que pueda tener con la Compañía o alguna Entidad Electora (como es definida en el Programa), que incluye alguna reclamación de lesión o reclamación de discriminación en base ataza, origen nacional, género, religión, edad o discapacidad ,de acuerdo con cualquier estatuto de derechos civiles federales o estatales.

Cada individuo que trabaja para Nabors Industries, Inc. o una subsidiaria está sujeto al Programa, incluyendo sus enmiendas, excepto que las disposiciones enmendadas afecten solamente a las disputas iniciadas después de la fecha efectiva de la enmiendas y sin asuntos pendientes antes de la fecha efectiva. Su empleo continuado después de la fecha en que reciba este aviso constituirá su aceptación de las enmiendas al Programa, tanto durante y después de su empleo con la Compañía.

Esperamos continuar trabajando juntos. Si tiene alguna pregunta acerca de estas enmiendas al Programa y a los Reglamentos o a cualquier otro término de su empleo, por favor, no dude en comunicarse con el Departamento de Recursos Humanos de su empleador.

Atentamente,

NABORS INDUSTRIES, INC.

*Unø copía de este aviso está disponible en espøñol, sí la solicitø al Departamento de Recursos Humanos de cualquìer subsidiørìa de Nabors.

4lll)

Enmienda al PROGRAMA DE RESOLUCION DE DISPUTA DE NABORS:

4. Resolución de disputas

A. Todas las disputas que no sean de otro modo establecidas por las Partes serán finales y resueltas de manera concluyente, de acuerdo a este Programay a los Reglamentos. Las partes renuncian a todo derecho que puedan tener a unjuicio antejurado sobre reclamaciones relacionadas de alguna manera a cualquier disputa.

B. Cada disputa será arbitrada sobre una base individual. Las Partes preceden y renuncian a cualquier derecho para unirse o consolidar reclamaciones en arbitraje çono otros o para hacer reclamaciones al arbitraje como un representante o como un miembro de una clase o en capacidad de abogado particular o similar, a menos que tales procedimientos sean convenidos por todas las partes. Ni la Compañía ni algún Empleado o Solicitante puede continuar alguna Disputa sobre una base de acción de clase, de acción colectiva o consolidada o en capacidad de representación de otras personas o entidades que hayan reclamado estar situados similarmente o participado como un miembro de clase en tal demanda. El árbitro en alguna demanda de acuerdo a este Programa no tendrá autoridad para conducir el asunto como una acción consolidada, de clase colectiva o de representación.

C. Si la limitación del procedimiento en el Párrafo B de esta Sección no puede hacerse cumplir por un tribunal en una demanda en la cual una parte busca ejercer una acción consolidada, de clase o colectiva, o actuar de otra manera en una capacidad de representación, entonces este pt'ograma aplicará a tal demanda sólo al siguiente alcance. El tribunal decidirá si la Disputa debe proceder sobre una base consolidada, de clase, colectiva u otra de representación y, si es así, definirá el alcance de la clase. Ninguna de las determinaciones anteriores será remitida al árbitro y en ningún caso el árbitro tendrá el poder para determinar la certificación de acción de clase, colectiva o de representación. Las decisiones del tribunal estarán sujetas a apelación en conformidad a las reglas de procedimiento aplicables. Si el tribunal cedifica una acción de clase, colectiva u otra representación, entonces todas las otras determinaciones, dentro o relacionadas con la Disputa, serán hechas por el árbitro. El árbitro determinará las preguntas de responsabilidadpara, o de la clase, como un todo y los remedios disponibles para o de la clase, como un todo. En árbitro también decidirá el desagravio, si lo hay, al cual una parte o miembro de clase puede tener derecho individualmente. Si el tribunal, no obstante, niega en última instancia una solicitud de una parte para proceder sobre una base consolidada, de clase, colectiva o de representación, entonces esa reclamación individual de la parte estará todavía sujeta a este Programa y referible al arbitraje en conformidad a sus términos.

Enmienda a |os REGLAMENTOS DE RESOLUCIÓN DE DISPUTA DE NABORS:

30. Alcance de la Autoridad del Árbitro

A. La autoridad del árbitro será limitada a la resolución de Disputas legales entre las Partes. Como tal, el árbitro estará obligado y aplicará la ley pertinente, que incluye aquello relacionado con la ubicación de la carga de la prueba, así como la ley sustantiva. El árbitro no tendrá la autoridad, ya sea de abreviar o aumentar, los derechos sustantivos disponibles de acuerdo con la ley aplicable. El árbitro también puede otorgar desagravio de emergencia o temporal que sea o sería autorizado por la ley aplicable. El árbitro estará obligado y cumplirá con las disposiciones del Programa y los Reglamentos.

B. El árbitro no tendrá el poder de escuchar reclamaciones en el arbitraje como una acción de clase o colectiva, o en capacidad de abogado particular o similar o sobre otra base de capacidad de representación, o ausente el consentimiento de todas las partes, sobre una base consolidada. El árbitro estará autorizado a decidir solamente las reclamaciones disputadas entre las partes individuales.

{lll) APPLICATION FOR HOURLY AND DAILY EMPLOVIIETI'T PAGE 3

Applic ant Must Read And Verl Wíth rg I declare that the statemênts conlalnod ln this application are correct and undarsland that wllhholdlng inlormatlon o:. making a false staternent ln this application and lnformalion submitted thêrowilh or ai any timê duTlng lhe appllcatloi and pre-employmênl procÐss wlll be the basls lor my applicallon nol to be oonsidered and/or dismissal, I authorlze all omployars, oducators and other firms or pereon named hereln lo prov¡de the Company wnh lnformal¡on tega¡dfng my educaiion, êmploymsnt and medlcal hlstory and release all such individuals or entitiBs. fronl all [åþlllty fot any damages lhat may .resuft trom furnishing inlorrn.allon regardlng me.

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I understand thãt thls appllcation doês not obligalô thë company lo ofler me employment or to hire rne. I {urlher understand thal if I ani employod by the Company, my employment will be on an "al wlll" basie and may be termlnaled by the Company at àny timo with or wìthout cause or notice, lf I am omployed.I undorsland lhåt I w¡ll weåt the prescrlbed personal ptôtective equlpment arld,wlll ablde by all Federal, State ånd Company procedures artd regulalions while working for the Compaty, - Ad H ' INITIALS ---.

I acknowledge thal a copy of the Company's Dispute Flosolulion Program wås avallable for rny re_vlew at thê locallon whe¡e I submitled this application, I acknowledge and understanci fhaÌ I am required to adhëre to the t¡spute Resolullon Program and lts roquirements for subrnisslon ol all clalnls to a proÐoss that may include rnei1latlon and/or arbllrãllon and lhal if I refuso lo sign below that my appllcatlon wlll not be consldered lor employment. I furlher underÉland that my erïploymônl applloâllon eubmission wiih the Company constitutes my jrÄ.\\j " tT ,:liïr",ltlrls provision as a condlllon of employment consideratlon.

ll I am hlred, I hereby agree to parllclpale in the Company's Payroll Direcl Deposlt Slrstem for payrnant of salariedlhourly emptoybeiand coñrpþr{ fho Payroll Direc¡ Doposl! Authorizalion Form to lmplement the Pâyroll Direct Doporli sysieni for my pay. . ,-." lNlTlALs -i\d\1-

Thls application will be considered active for lh¡rty (30) days,

*{rffik;h$.,þr- 1*lu*\3 Date

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NO'f ¡çF, To QÁN:¡S nECilI!ÞI l\ç ^PPLI DTSPUTE RESOLUTIÓN PROGRÅM g lt¡¡ ûpl)licfinti or ancl lhe Company. ïhls omplrryê03 tho rrpst eud ofiden( moans sny d lsputos they mây ha üfâge¡ o tsJ olulion Ðt tho afliosl possiblB

A óopy ol 1¡r€ Dlsputo Rosolu(on Progßm i$ ¡€ing provìded for your r€vl9w. lf sny appl¡cant lBlls to ocknowl€dgo ârìd q0.60 totfiðProü¡rm.thoywlll rìolbomñ6idsrsdfffomploymonl.'¡þescknowlodgomonllsprov¡dedbélowloryourslgnelure.

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2. Ey my slgnaturo bolow, I âcl(ìc¡vrlodgo ând undót$lrnd lh6( I eln roquirod lo sdhefo lo ths DlsÉute Resotut¡on Pfogfârn mod¡Àtiôn ând/or 4rbl(fât¡on. lùrlhðt ß{l{u Lâ9 fny â cce ptance ol th (eilns ol

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-\3 hi$'eåo Tlr La, Go,

¡lyl.SfLll¿\ll^û ,lSpl rl^N'l'lr:S l)li l.:i\{ltr.nS l.Ur:!ir¡r;çlj(¿.i\1. l¡rt()t;¡t¿\M-ô-uUJIU,Cl}üÍ;|l;t¡J nrr. cQNnL¡c'rr}s

en(ro ssptrqnls8 o ompleâdos y l¡ Oorrlt)alllÊ. Ësl€ prû+rranÉ lê propor(ronâ s t¡rpkûnlos y omploâdoð 0l modþ mált otBctÍvo y sl-¡çtsn(s pârâ ro6olvor crltrlquiôf eoflflistoqu6 pudlsrsn lãnsr 0 ltâVós dô un proct¡soquo fonìontt una rotcr¡uclón do lä mismâ å lâ môxlrnû br6vodsd pÕElÞ10.

Junlacc/n ãt f¡¡esonts âv¡so ss 16 Êstá propôrdonândo uRûdolPtogtäarsds Råsoluc{ón do confllclos petâ su rôvlôlôn.sl un å.qpir0nl€ rì un fl¡aãto d9 lfâbajo no acuss racibo y no oslá d0 ,rcuûrdo (bn ol PlofJfâmá. no sêrA cqrs¡dorsdo pârå el omploo- so lo prnpotclon0 os[s lonilulârlode scuso(o rogbo d0 ogts nollliotción æn fospécto al programâ do re soluciótl cfo æntllctot pâtâ qus ustsd k) firms orl u)nforrnidad a ûxl¿ÍntlûL'iÕ'l.

3. so ms h¿ pornftldo reviror sl ProoramA €19 Rssoluc¡ón de conllictos dB Nâbof3.

{ Oor¡ rrìi l¡trila a cörttiruâc¡ón, acù$o rocibo clo ls hformâcién ân{0f¡olmontg moncl.inadå y q)Ínprsndo qu0 i0 rto ra.JU¡0ro üUmÍr¡ir con al Programa ds Råsoluc¡útr do Conlllctosy eu requisllorie 3r{¡otorl{¡os {os f€clsÍr¡os a un Droc6so qus puodo lflclulf ¡ne<Jlación y/o ûrhltrÐJo. famhiôn comprorrdo quo lo prosânloclón de ml sollcitrKl Þârî omplÊo æn ld Compalìlrr mfls lf[ily8 nli acotrloddn de los lótnìtoos do o6lt disftoslclóÐ tþrn) rtnr t)ndlalôn p8rt 0or ùônsidofâdo potâ sl eíl]lão.

NðñÞr¡ ootAtp¡rsnlt Fkma oer r\8PrE¡ntg

I{R- 106

I.)M PLOYIIE ÂCKNOW I,ND G UI,IIIN'I'

coNCËRNING NABORS DISI¡UI'E IIESCILUTTON.,r',lloçtì^.n/{ I have tcccived a copy olthe Nnbors Dis¡rute Ilcsoiutio:t lrogratn.

I ack¡<:rvleilge thRt !i1c Ernploycc Dispute Rcsolutian l)r'ogranr is tol a corllrilct of ernplr:yl*ettt b¿twoon 'lìrc file Cor.-rpaly onC ,,r* ft'r nuy spccitìc tirnc pcriotJ a¡rd docs nf-,t filief thc ctir¡rlo¡'r:tent-¡ìt-ù¡ll rcìaÍ1onship. crnpliyment reiaiio¡slrip bctwcôt1 the Cornparry arrd all en:pioyecs is hased on nlt:luel con.serì! arlij èalÌ hii fèrmirìalc.l al any litnc, cítlter by ln¡r.s"¡¡o, tn" Ourlpany, rvilhout noticú trr requircn¡eit o1'callse'

I und¿:.starrd tbai nollling corrf¿irrcd il1 tlic lìnr¡;loyec Ðíspule iì.csoìulion Pxrgrrinr is intcirde'J ìc víolat(r ol lcsirict al-,y r-i¡¡h:s of eniployccs gutrantceti l)y st¿it or f'cd¿rai iaws.

Hy nty slgrraturc bciorv, I acknorvleclge artrl undcrstalr¿J lh¡1 ì an; r'eqrrirctl t<: adjtc¡'c to lhc $is¡ruic R¿s¡l¡tir¡r:

l¡e fefllls olthis provisirr¡ ¿rs a conciiliorr of nr¡,entploylìleoi ilr oónliltrttrl em¡:10¡'trtenl,

ì'larrre oliEnr (Plint) -$ígnätur'e

*-7-.ra-\3 DÊte

p6r la ¡rresenle declaro que he recît¡ido una co¡:in dcl t¿xto del Prognnra de llesoii¡ciélt (le I)is¡rllil$ dc:.\abr:rs.

Yo errticndo quc cl Pr.ogratll:r de Resr¡luciôn de l)ìr^putâs dc, Nsbors lÌo rgpfessnlâ url c.orltrâk) de enrpico cntie ls f-:ontpâiiíâ y ti-,i personripor un pcriodo <le liernpo espccífico y nr-r rucCìlìca ln lclución cje er:t¡:leo a vclrrtlÍirJ. L.il rslación cle c,rrpleo ctllre ia Oonrp¡ñía y lodos los errrpleados está ba.slitla e¡t ull ¿t)¡t$otliint;cnlcì nìultlo t ptrctic aìurdâí cosantc c¡ cnaìr¡uier tì)ôt1ìcìrTo¡ yâ sea pof tni ¡rarlo !r Por l).ìrtc tlc lt Ootn prrñia, 'sil,' avis(r ¡rtlvi<r c' ¡rrcscnlaciórr do car¡stt.

yo r:ontprerrtlr; c¡rre nl¡guua purle Cel ccntclid{) dcl Pro¡;r'ainn <{c iìc$.rl.lù¡Ótì <ie L)isputzrs ticne ltt irrli:rrciritt er:1:rtr:t de violai o Ìjnlílar lc.c d{itcchos dc los crrrpicados galaniizados pcl'el e.strdo o liis lcycs lidct¡lo's

(ìorr ntj ljnna rcconoT-oo y entíendo quo so |t'.c¡uie|e cue yo cunrpla oùn cl I)rôgriìl1la <Jc lìcstrluciÔrl r'lt l):s¡rrrtlts.l "í requi.sito dc someter cuâl(¡¡ict'riisputa a rh prooesll que ¡rudìera inclrrir la lll<ldiación y/o ol irrhiliii¡e ¡\tjioiotralt¡cnte, o¡tnpt'errdo quu rni empleo plcsonte o fttturo con la C)onrpañfa rc¡rrc-^ctttlt rni rsctrtrUùirrljcilio expreso de los térnrinos da cst:r disiro.siciórr couro gonrlicirirl dc rni ern¡tleo pre$sl¡tt o liriuro.

Nombls def Ernpleado (Letra de Inrprenta/Molde) Finn¿ dcl Ernpìcado

Fcoh¡t [lìl;l'A¡ ]i lN liMl'1.(11'|ju s¡¿iìvlc:u IÍLl i!

¡t.:.st'tì t:ctìI4rJf ,A¡1lo t)Ìißf-il(^ sl¿tì cOï.oc.4lx) tin* Ll' ARclilVO llliT,lìt{PLiiÁlx)J

R.vhed Arttl2æ3 IIIÍERNANONAL ASgOCIANOH OF DRILLINC COI{IRACTORS ORILLING BID PROPOSAL ANO DAYWORK DRILLING CONTRACT - U,S.

TO:

pbs¡s ñbr¡it bb m thlr dtilii! øbrct &m toryo¡flrmlng tn€ rori 4dinsd b€tü upo¡ l¡a lrro âñd fs lhé s!ù!êdhl sl füth. ril¡ ûE und6trtá¡rtnQ thâl ,l tho þld is .e¿dôd by lht¡ ln¡nffit rri{ btlwn un ud P.M @ þ llËtollüing sdd@:

THIS CONTRACT CONTAINS PROVISIONS RELATING 10 INITEIIINITY, RELEASE OF LIABIL¡TY, AND ALLOCATION OF RISK -

SËË ÞARAGRAPH$ 4,9, 6.3{c}, t0. 12, ANO 14 lhb Gdo rnd dÌlsrsd lnlo s $e drto hetoì¡rfia Côntr¡cl lr æ{ lortlr by rId bolffiff be p.dþc h.nln dssi0Mled .Ð'O!a@¡¡'8rd'Conlmds.' OPËRA1ÖR: PønVlrll¡hOl¡G¡r,LF Add6!: ¡{¡ €$rñr 4üd, S0llú tûû _ . . ,

ïôwþ¡,Ì¡E! ?021 .

COtl¡ttACÌORr NAOORSDRILUa{SUSA¡L.P ... AddHli 515W. CHnr Rold, guh¡ tû{0

INCONSIDERAIIOI{ oftEm¡turlpronhã,ørdrùm.hdrgffiblËlhøhlnldandùolprdlhârloruendEp€cþlpov¡glstrtlorthlrÊrn¡bit'A'lndÉ)ôllñ 'å' Éfl¡lnod hsæla arìd mdc ¡ p¡rt hoEof (he 'Cgnfåcu, Opôrslø ei0ao0s Cøtrstpr ¡a 9n lnd€poîdst æotrrctq lo drill tl€ llrdnlnér dê8¡gncled Hll q vdle ln ôagÉlr 9l ollorgå8 on a Oâysrt 8ælt.

f ø purpgsr ho.æf, lhê Þrn 'ortw{k' or 'O6tNrt õs!¡¡'ærn$ Csþãlbl .l$ll llrml¡h equ¡pmnt, l6bç. ånd pafom eßlcð t¡ hgrh p.dld¿d, lor t t9êclfi€d m p.r dry undq lhr d¡ædq, tup¡EÉloo !0d @[Íol ol Opsrator (¡r¡duslß sl üry dfrdolæ, å0st. Mûltân{ q uh(ð!úcld qgsged by Otaratò. ìô di¡æl d.il¡nt op¿r.l¡orr)- lt¡4 opþúlg Ø ã D.fwrh â¿.¡a, CoÌataôlû ,ha{ h. luly Ftlù el lha ,r{,g¿blc .tlß ot p.jf,mt fid sws üV lhô otít'doß .ut Itbil¡ilæ sáasd hq.lo, Êxc.pa lol ruh orrlqltloñt tnd lteblÍl¡êt ap*tletly sssw.4 by Cô,tktclot, Op.ãlOi rrt r, åt ro¡êry Gpoorlôlo rnd F.ufrË lLblß¡y lor tlt ton..qñcú o, orñtfor¡ ôy ùóth pat'llr. (hllÒ Ø . Ðrwnù &¿sls, lîctudlig n'ult, .nd tll olhat ¡tßlta or ¡tabllll¡.s lncuï.d h ú lñldql to ttoà ôpcäflors, 1. LOCÀlrOñ OÊlirÉt¡r W¿{ NaD ál! l.lumber Fâdôå/ cM9; 61¿16. Texao l{¡rc: Wo¡ lànd 1.J Addlüo¡sl W.ll Loc¡tlonr or AElr;

luN.y þas, 2. COTIMÉHcEMEIÙÞA1E;

lo{ úre drifr¡{ ol ltþ rell b}]ùq ¡ag

Confrãctor chal! thÊ Cortttôcf ünlo3s payê f¡om suoh tho locrl¡on ls lo¡dv, fi BO tcrm¡natæ, tho be dâomrd to ber åt OpGrator's olectlon, ánd tht provlslonÊ af Sub-paragrapb

!.lwi|loâpth¡ThÈs.ll(.)¡h¡l¡bedll.dlqrdoplholâPP{qimt.ly-10'|00.Fæl,#tù¡h€-

fg{qdien3rhh$¡&¡+dsþø, brJ{ lhè Cool¡ador ¡hell mt þa rèqlired h{ændê¡ lo drill !¿il Kll(i) balfl R ñrytmD deplh of f€0[ unL$ Cillrslor ¡nd Oporatd nñ¡lly åe tÉ lo drif lo ¡ ¡rslâr d$th. - llol to .¡c.td c¡f.c¡ly ol rt! ¡¡ d*rlb¡d on tha rlg lnvútot .tlæh.d hifrlo. ,I, ÞAYWORKRAfÉg:

Conlrâctôr ùrll bð psld !t ltþ lollqln0 rsls fd lng Frk pelom¡d hoHndcr. ¡1.1 t obllttllqo: opårlor ¡half Þây cmÍe&r ôeùíaeàoâ{oec{ c ð mb¡lhrlhr d.tmþ d¡ 19,000' dây. fhis m bo d!ôå¡d ¡[ lul lhè r¡g ¡! €ú¡d ;tõiæiÏñõãffi1ñïTiËr6dy ro spud. Meblìtåliù rltô{ }E¡u.Jc.

¡.¿ óowblllr.t¡on: Op€ratq CFf pry Coltßcltr¡¡mul&a{o¡Jr#l * r dmbltl¿.tþû dåy ÞÞ cl{ê|"ì.*{e{ß{t i 19,000' ær dry, þñvir€d hffiver tlEt rc denotfil¿rjo16 ¡tull bE payabh ll ür! Cñlact b iarm¡ml¿d dw lo ltE loltl lN q d.rlrudkn ¡.d!do: Rig down ãnd remove ¡lg from ths linãl wel I lôcrtlon and, it appllcåblê, movs thô 0l thû r'ls. alêftobill¡dtJm shåll rig to tho noat€st sultâble stack out looatlon. tPlus âclual co6ts of trucks, cranes ¡nd permits and $4,500 for rfian-lllls, llght lovÍer6 arrd strlng down se¡vlces-

¡a9146g{d.¡€gd{ðS.{ß-lhsit¡ h{aF.$.lcH.iqÉdr¡lt{Iqqåeffi{d{.eilft,€m¡då0s áfffiÐr+¡¡àl¡+.v Csl¡do(+m{ll -4¡ eaf{#ry{eqf.(9{}lr{,{.1Ê --.-

{4 Opêrädnfl ory n¡!r: fq ßrt pífümd Ftva l5l cw ¡hdl pôt lwÞnl}Llour (2,{) hd¡ dsy witl¡ mn lh6 Bp¿ßùtE dsy Ete ba:

Deplh l0tflåla Frñ Io t{llieql odll Plp. wlttt Dr¡llPlpt 0 Rlo RêlêâB€ ¡_____3LÉ!9__p".ó"y s 21.000 ærdsy dây ¡-- P!Ì dåY ddl Þs dry

Uc¡n¡Opetàlq'Èddltpl!ôt r?!99L-!errtry. I

T¡ro r¿1. will begìn wtÉn lhe drllli¡C unlt ie rlog€d oÞ qt {hÉ d((lro læsùm, q p€¡ügrcd oEr ho loBlìo¡ dur¡ng mrìæ wrf, a^d Édy to @nruG opïûüon!; ¡rd wlll æ¡$e whon ttE rl0 ¡s r@dy lo bô mv€d oi tl¡o lqtion

Us.qW^Wá'Pry1) Fm pGvidôd byFoms OtrA.Dirk Copyri¡ht ! 2003 lnlqnsl¡orôl A&¿lrlim ol Orilll¡g C6lffi¡ {214) 34044æ FomsooÂDi!¡(.s .

EXHIBIT ''I.B''

o o [ lnds th! obçvè æbm 'Wü! Drif Plæ" m 6læ ¿6 6pécjdêd, tlÉ Þle ,er lwñly.tôuf tuer diy whm 6fill ,i!ê It rn us 3¡rllbo lhr 6pplk¡bl! 610 ¡p€dfud lo fio @iumn ,Wilhoul Orlll PlÞc" pt!! æhpan.rtion torany ddli p¡pô rdu.lt u$ó arûË n(ø lpddsd bÇjs,, @ñpuled ú th€ b$¡s olthe m[loum drlll dp€ In !* ll âry

ûme dunô' eåchlËrly'6u' hwr dây' pÞE RAfÊ pEFza.r{ouRoAy DRrLrtlúcüontl ot 3ùrlght Holo Sla cr¡dÒ Stra Ond.

r.. NlA prrL s-l.|lA--p., ft

¡ NlÀ . pon. s NJA ær À t NIA pern. ¡ ..NlA par TL

okêctlmtt g vôæ^kolled ddi¡tod hdc will bc dæmad {o êxlll vdþn drrletlon lÌ6ds dêg&ú d wtEn the cha¡ge dl dôgl€ qcô€dl d.grær pôrôþ hund€d læ1, Orillplp€ sh.ll bgændëied in @ nûtonì¿ wn in ¡qtwl uw Þul slso wtrl¡6 ¡l l! b€lrg pkl6d !p orl¡ld dM. Wr€n drlllpipE i9 slrnding h ú€ de.tck, il shållnot

b€ðf,riddrdhu¡ô,fÌüided,hffiw,thrtllCslrælotturirhñâped¡ìúrìrî|Êoldrillp¡pe,driltæ¡bF.¿ñdhrndlfngløl¡¡sfñvidèdtori4E {blt'A',t*$m0shtl rl ¡ll Ure¡ {jì6 - shrll trfltigi¡ ða¿¡ het - tru ddll bs M!¡derad ln u!è fi toëùm I untit æles.d by op.htq, h rc d.¡t b€ æn:id3red ln cmrothg ìtß åruil0a Þlps ¡s in uq bùt 8uó tlru shlll bê cd¡p0l6d to lhe nÉ6i hwr. wllh tiìily mlnutcs tr ffiô br¡rE cflìdê¡ld r lull hN. åñd ì€r! 1ù8n thlrty n]nul,qs not to b. qntod.

+6 ¡l.F¡lr 1lûe: ln lie.6ìt ¡t l. Ëæry to ¡lÌd dM Conltsdg/i rig ûx tepâirr. eldudiñg rwlæ lh EDlclr{, CØÙdc,ttr shâtl ùa dh$d trpe¡letionãilbospp¡iøòbrolsføæhrh(tdqdnllmistoåmxlm¡mof--jqÀl1!lL-lprßÉqa¡yon€rigrEprk¡ob.br¡lroltôoxæ.daw¿otv.io$l?¡lhoutr | ol iu.t¡ ffip.üsls tor lrry €loñd¡r runül. ThseâR€r, Cüu¡clor shåll bê q¡óûiai¡d ãl â râle of ¡-------¡&0-¡!L- Êsr twrly-ler (24) houl dÁy. Rdliæ n{ | owljng ¿hall ¡ndùdo, bvl mt ùr llñlled tq, dning ¿nd .llpfttrg dritliig thô, a¡unilrlg Êsñp ú Nied â¡(prf,d¡bla. b¡lirg BOP àquípwnl, ¡ub¡€tlng /ig, ¡od

4.0 8lln¡lbt l¡n. Rtlfi glrfidüt offi ¡h¡tl þô dèfi¡ld lo lñald! tlü whs ItE ¡g l¡ 3huì diln !Ítþ{4,i h mrdrßr to ¡êg¡n tr æsuru .pa.rüo¡s üit Cfrùffi ir ø¡{ng on qdétr of opGrâbror on mlsñrls, t€ñk¡! 6 olÀq it!ru þ bo tum¡rh€d by Opórah.

4-? Oillllng Flulrl R¡tr!! \4¡hen drfll¡g nvidr ol å tpp ?nd clârudrristu làsl índaÉs.6 totfÊdo/r @sl of þdom€nø teßu0de¡, l¡cludjrg, but no{ lldr¡tdf tô, ojlba$d md ot potâslun diorldê, 6rq in uæ, Op€rator g¡all Þay Cmtñctü In .ddhbn þ the c9€6õl{ ¡de ipedî!{ oboro:

tå, S---10-.-.-* fâ ñ€n por dry for conrdq's rlo.EÞ pmúml I lb) ¡__ll!_ pôr dry 0dd¡lkrÞt oprrrtinq r8te: ûnd I (c) Coetofálllabor,nhlariôlrndrcrttur- Mfity'|trlllt__hfircop€6üngr¡l€{oclsånrioendGt¡t€d6qilipmnr. I

4.8 foÉøilr.loúBR.lert-f-l---J---j-jÑì;rs$.|ùrtra)lerd.ylo'¡nyffilin66pqlodih.t¡dñ!openbm¡öslrÞq¡todcÉf,mlb. I *r¡.d ñ du9 lo þódillmô ol Fo@ Måþ.. !s &fi¡ed ln Pâqfr+h l? håræf lt ìs, htrEr, s^d€Ftögd ttu{ Nbiect to SúbpaÞg.¡Þh 6.3 bÇ|oû, Opgô|ff æ¡ rel¡a!6 ths ,10 ¡n a@llsnæ wilh OpoEt¡16 rlqht lo d¡€ct 3lopp¡û. ot tiåwrl, åfælìw wicr s¡dÍ{s will Þ{dl¡ {þ ril to bo mùod lmthá lo@llm.

4.9 Folmhon.bla co!b: Opmtq !àJl r€imb@e ó0.!âcþ, lq ltÞ ø¡k ol frrdkt, tquìpmt, {gt q ffidr wtidì ¡E to b¡ lmi¡hed ¡y Operaþt r¡ provldodbrh6Gì0h¡tûhìr¡td@nwnènæ@.ctul¡yfumllhedbyCmt-ætortOper¡rol3oq$d,tlw tân¡l0l tflænlfdrochcoilo¡hrnd,io.t?,rÐ. I .t Opônlor'i¡.qswlrnd úlh con'ado,tt ahø Conlñtior amlêfgr or9øü.o¡tnak lot @tàln liñt ot aüvlô.. wltlctt opcalat tô ftqulr..l har.ln 'glúmonl to prcvlds, l6t pweoa¿s ôl aò. húqâlty ând frtes. prâvLtont ol trút eontnca æld kñt ot tail,cç ha dffi.d aø ba Opñú íqûlahql ltqîç ôî ',6U 6avtcø6, Áñy ôub.ontacþn ôô hlftd zhail bG ú@ød ,o bâ Ofçatû,t çoîtsctot, Ðûd Aps.tpr sh.ll nol bc totlte¿ of arry ot lte [obtftlû ln æñiqa,qa thrÙwflh. Nol*llhs¡andlng lht lotogc¡ng, âontncbt $hall nol ba þàtlgtd to pæh.$ ,ny lÍma aî bah.lt Ol Ap@þL I 1.10 Rav¡llotlñRatð;ThÞrâlêsâ¡d,/orpâyftôlshæinsettorftdsloOq¡trcldlMôparålørhtllù?wiledþEltðtl¡€chsrEah6t!ilt't@tûôaôn!

ot lhe¡trm h¿rciæflor lilted lhal wry ry M6 ûån -_gg¡IqL_ psænl fn ltE æsls lhssf 6 ttE dôtc of lhis ConlÉl rr by tl8 sm pe(fiÌ otls the däle ol I

snyrlvi¡lo¡ ,utru.r( tq {blc Subp¡EgEphi L¡bor @!ß, lældin0 âll b€l€ltlÂ. olConlreroó pr¡d¡d; Conllqclo/g cod ot ¡nwãnæ prcn{um; ContEclor's6!tolluel,lndudingtrlltrþrrr{lsilheø!tpêr9ÉllonfMcFbohg¡ NrA lOpðlld¡hgltFov¡dô.llfu.l.

'E

{gll0 ltthm b rny ttrângts ot ln su io d qlh.r urfoÉHn, utu.ual eÉnt lhÍ ¡llêlt Cst¡åclD/¡ llnend!lbqdd.

6. TtrtE oF PÀy$E{f P¿yræñl is due tty Operstgr b Can(Eclor 6 folleÂ: 6.1 Ptyffil ftr m¡l¡¡êi6, irill¡r{ ârld oh3r Frk p.fomd al ¡odk5bls ral6s, ârd sll ôt¡w ¡pd¡c.bl! dtrr!Ês ehall bo dÉ, upff p.€i6bfón o¡ lnvo{.e lh€Étd, upón 6mplctlor of rp¡Uai¡of,, lômtiùrdbn, rig rel.e¡e olål ür. Ê¡d ol the Îtrf1 h r.dt6 t@h t¡st( wls grldrpd or othd c{ôrgd árq l¡ÉrGd. qi¡ðws tholl ñrol @ur, Al lnvoloeF nât b€ Nllod to Opor.td al û¡q eddEg! hcElRbow !hm, un1.9s Opomta dæ9 iqÇbt dH¡0mlâóàt luch lnwlcs rhsll bg milod âE lollows;- .-..- . -

5.?Dl¡put dlnYolcÈ.ndLrbP.lmdtiOper¿to.alr¡llÊryalltrc¡e!wiüh____-g!!gltûLd¡yô ¡ñq eEp! thtt if Opqâbr dispülôâ e lnwlæ reæipl or ony pd{ t¡orool OÞsrbr !h.ll wilhh li.en d6y¡ sier r@lpt o, br lnvo{Ö, ño{tty CoôlFdor ol the ltw dilp0ted, .pocltlng th€ rèÉrm llseld, and payrÉ^t ol1tþ

dþP!Ì€d tlm ruy bo w¡Ûlnab unül ætü€mqf af lhå dirpulê, þl lh¡aly pryffiîl ilr¡l bG mdr of any undlrgsl€( pô{ton Any sms (¡N¡|ldhg ¿mu¡t! ulllmatov poid wilhr6.psdtoâdilpdcdhrcþs¡&tpãldûlhhlMðbo€spôdfieddryssbållb€rlntge3tat¡hérd¡oc, 11n lsænt or lhc mrúrum 169Âl r01., wlìic,+tær ß le!s, per mnth lron lhc d@ .táte unilt pãid ll op€Etq dG æl pây dndrSÈJld [ñs wiltrln thB ahK 6tat€d ùN, Co¡ùadÖr my 6!lfÞ¡d opôr¿üN { lêñìmG thi9 CoitËcl s Épacl¡ed lnder SÞbpldordph 6 3

6. ¡ÊRM:

8.'l O!ñtloñ ol CoúFal¡ lhls ContÉd sà¡ll r€msln ¡n tu!¡ fse and efæ1 unu¡ drll¡rg opât6ìonB ah æmplÊlad ú lho mll s-Æ¡¡6 sp€cltiçd l4 Pa€û6!ì 1 abo6,{rlo.i{€añof--...-flme!ìd¡g On lho dd6 tfcclttôd ¡n FâfrCGOh Z Ðbd?

8,1 6¡$slæ'+omr€ç€+ãæ}.€rls¡d-iho.{d@tlt'bçmtGct.ff -_---------fi[{6}*{..¿?o*rd€L=

6.t Eârly Tcmfñrdotri lål Ëy Elùór p.rty: Upq givlnq ol ùlnë¡ noíæ, 6¡thsr p.rty my tmiñiê lhir Cøród wtH loì¡l los or dgltvCtlo¡ ol th€ r¡€. or r @jd b@kdM ffi lDdefñìlè cpr¡. ümc ñ¡s.fiå¡e 6þ0ftng op66UÐ3 howndcr,

Cópyrighl (u.8 uwícôñd-Pry2)

q 2003 lobôÊì¡on6l Asrd.tbn ol Orilliog CØ16õ{ü3 (ii,r¿ffii:ïjî:Ëftå-"sr Ñ

lb)

to By Oporâtoi iloMth¡rônót¡g thc ÞroviôlN of prEgEph 3 w{th 6pêct fo EÉ dðþah l0 bc dlillêd, Orfi¡þr lhall haÉ evd lhdúgh cøtåclor lrìà .lcñl lo

æ dêl¡u{ hdend6f'

dltld Fù,Èad llr l¡ sch w€nl fæJ ^4r,ol lho ¡loppagc

woft to bö po|lsrEd by Cmtrdp. tls¡€M!. rl eñy tiru lxhr lo Éåchlûg thê gp€clft d daplh, s¡d h¿ô mådâ

Opgâtoi lh¡ll rríûurs Oo¡l¡¡dd t! æl b.lh ¡¡\ Subpd¡OEph I a hs.eoL {c) By cont€cto(ì Nottilh¡hdi^g t}Ìq ptolill@ ol P¡Ìd€ÈPh ð vfrlh t€aPæt to fÉ d8Þfh lo b€ dritèd' ¡n $t ol€Glù 9¡Úl bsfl ln¡olvilt' q bÊ '6i q fte. bt &y ot ¡êUlton o. ¡ñ¡H, d!btor/6 p€llio¡ d ôlhe. skin0 adiglmo¡l ol Opemtoa¡ d¿bh. undtl âny ðahkÚpkil s dob{Ódr adJ&tB(ed 6 b¡rtrugt a d¿ldho q OpelÀlol3 propêrty. or AÛy trtt lhtteoL d ßäôÌ t w3 nü ol hc.6¡t.. ptsvrf ing. or ¡l årìy âucI bô úted sgatñt Op$tor, d h ds ¡ Mlvor bG ¡ppointcJ ol OFBId opqâlots åf5h5 be plåæd ¡n the ñ€rúr ôt a crodltoat comûiíæ, o.. follflirrg lh$ buJmsr drys pri{r wrlun .oliþ lo Ópe¿br ¡l oaäèlor @e9 nol Þay cailtrdd wilhin the (me ¡prclfâd i0 gubprÉgEph 5.2åÍ lDdtsü/lld l!trÉ due end wlno, c€ntñclor rsy, åttts ôp{ld, (l} 6l6cl lo bmln¡letutulpclorruø of Ùy ffft Ùnd6 th¡! Cfftr¡d ÊM Coñltsctods.þhl þ enFensïqñ !h8f bo rs æl fodh h SubparagGÈr 0.4 h.¡Nl. s (4 !6psÍ !pe.âÙ!ñ¡ w¡ þâtffil is m* ry Op8Élr ¡n nhld¡ avqt frF slandþy trm r¡(ê ¿¡il¿¡ned In Svbpðßgnph 4.6 rha[ ôpply u¡t|l pi]¡l|Hrl ir rude by Opdalor ônd opeßtions .Þ ÉrumBd ,r¡ tddl.,ol to Cottlðffilt tlriaa lo sut¡fid oge?iloni qt tffiútgß ptrlafrlanca und{lhtt Peagnpl4 Opffi]g ttgâbf qlntsly åg.M ,rolsc(r dtlúd and lftrenlty Conñcao|lrcïl aßd {û

dø.a& ,nd Ècttæ øt ac?lon, lñclo.flig att catF, o( d.fe.., .g¿tott any cll¡ûs, tn l¿vw ol Oqmtor, OFFIúb ÞveÍ/@, ersH ud]or,ttt om./¡, fr

any ottt tl ary ddiltdg CñmÍîn.nli ar obtlgrl4oñ ñþlÃçl otht petltæ.tltl^t ln ú, ìsra,letfrgul,g'!e6¡ Ot o¡hú ,grffitl, eltlht ñt! ba ai'.d.d by iuçh sutp.n loq ol op.ñllòñ orleñ¡ûllon ol pôttlmtncG h*ødv.

8.1 Êrrly Tmln.non cmËdatþn:

(s) prlo. to Commr¡cm.nti ,n $Ê dsnt Opr¡tûr fsn{nâts thlÀ Ç6lrâc,t pid lô ffinclma¡{ ôl qpetathrl lrwnde( Opô8br lhËll pry CmlGClû ¡t tiqv¡datø d6må¡6 {nd rct as ! FônElt å.M{qsdlo{ào{tsdåy{ks€{è{$t¡bÈ*aï¡Éh43}rs{+€.1€d{a::dstÈs ê {uûÞ sum ol ¡-J!í!qq-.

(b¡ Prþ.toSpr¡ddlng¡llqcñirr*r.fón@rßðfkr$mlmnloloË6tfi!bltÞhlblh.sptrdd¡go{fhowell,OpeÞltstÉlp.ybContrad6ìlrsa ot lôM ôllhe Cmlftt ä¡d ôy mffi ol ttË Þroñâtule lgmlmliil thêlÞllMlìg: (l) dll oxp€n*r rerrilrt{y rnd n!æEsttlt'loarred 3rd Þ bô incúrêd W Cm!ådg ry oa lhe war, hdud¡nÊ üre expêM of dr¡fl¡g 6{'ütêr ffi mmhð ¿ßd ¡úlrlis¡on díæüy 0!6hfËd lo lho d0; (2} lfl p8rc$t {10y.) ol lhê rmunl of sæ}l reknh¡ðåbl¡ !¡pá¡s6s; ånd (3) s sum €lcuhtd ¡t tla útárúby tiæ .¡å lq rll tiË fÞñ th€ ltåtó ùpø $ld Co¡tråclo{ ðmæ 6ny opc6lhñ! hô@ndd dffi to uh dø18

Bubs€q4nllolhsd.t¡of(dmiÆlffi.rwill.f'ordconlrôdofteâsmabl.lfl€todlsron0ôitsn8andrqu¡pÑnl@o th*æ srt| I lét å p¡rtid qf lime, O-åÞþr slËlt-pry4aôutrrlå-odd¿f¡oà-*r-lår4ùoerlåô+sæ t'l4*4-¡ql€r]¡*{fly.úyffift-lêb0+*eÈth.gtl¡ süGtod{eJo.nraliF.¡90ô r¡lr¡å49.{.-!ior mclffi c¡a.8ûüiñg lE ai¡ and fl!¡lfod{c&¡fi+o$91{àðldü q-

(cl Stbtequant t0 apûddln0l tl iuch ìelmi¡álþ¡ @.s 6119r ths sFiddiôq ol tlr6 Hll Opd6lor 6hðll piy Conü'ðclor (!) làe snmun( lo¡ dl ¡Þplbtbls ôteð rld åÍ ild @imbuMffits duô tô Conldtø btt ir ú ær{ lhrll 3úd1 *m. dduliw ôl r€lmbq,ffitg dvô, ¡€ l4t rf¡cn wosld túvt ohar ctutlpe bÈ¡ esh.d tor fleê (61 dây3 et UË lppllÉblé Ete "lvìlhod Olll FlÞa" ond lhe åclùtl sæu¡l dus l0r drll plpê lFd e@rd¿M w{ü lhè abcw 'ô rstes: d (2ì et ths 6le¿tion dl Cfflr$ctd ånd ¡ñ l¡ry ol tho {(egd¡g, OpcFis !h¡11 ply ôo[trætor lo¡ ãll srç€n¡cl M¡wbly ând resñV ¡ßtnãd .rú lo boìnd1Èdbyro¡sdoflhi8cor¡ld.l'dbvræqol3uchprerulñler*[|ioôplü.sksp$F{¿¡Æ to-{q+4m-d-ffilhÐqe-{¡+s-{or-á-ça¡iodd-tìH}.-€peret*-eho$'pary'.Geilrwkf-h-€d*l&Õ-ló-tu¡iãö4ì}r¡ð"}l¡ló¡,ñ-ååla lé...tly{årggl' lôbq.toî¡$Òdola 0l]ûnhôtbwìl¡.lho$d{$[ lim* il l¡@ldnaú drnrqð ¡cd M ¡r soltv. r lum. run rou¡l lo llYo 16l rllr $ ûó &¡tdbv fknô R¡l{-

?. CASING PROoRAÄI

¡t ulr,ch *qg ûf bê Þt &tl fth qamtr ot $tliñg, cñ!ù!^g and l4Únt Opdstar èhcil háw lll€ rhht to dálenalg th€ p<t¡lo Og.ataf ßf ûodlly lhê

ø!h! p(oodñ. twv.r, Bny ¡uch r¡odìlølim wtì¡dt ühr¡sly lncæa!€ô embâClod! hsnll¡ ûl @sts øn only ùå ñ!dê ry ndwl cqíænt ol ôp6tt{ tnd ConlÉclor aod upø sgrffin s to ûa ¡ddllloru¡æmponetloô lo bq p¡ld Cslõddsr ! HUllthe.æl

8. oRILLINO tlElHOÕc ¡rilÞ PRACIICEsT !,1 Cont{dor 6hall måhbln re{ ænlrd quipHl ln good ø$dhø !l ¡[ fmÈ snd ß¡all u.e âll r€a!@bþ ûãnt b Presl Ðnd 6nlo: ñßr and blorñqb cnd lo protêct tht hoþ.

8,2 Sübloct 1o thB t6ms ho@t. snd ¡t Opealô/ô Gt, !r ál¡ tim¡ dudrE hr dllhg ol lÀ! wll, Oper.w ôfr.ü hlw lhs n{ht to Mtol$a n0d pßgäm,

ond th6 drlÍlng ñuld rut b6 ol ¡ ìna ¡ld mdnt¡hld òy C{nlEclor tn t@rdanB si$ thg Bpocilkdhf,¡ thown ln Efh¡bit "A hAvo ch¡.åqatì6tlc6 tñ òt 83 Êach p¡rty herslo agÉg6 to @ntly wlth rll lâw, dþt. rnd re0olÁt{is 9l eny ttda6l, 6lat9 d l€l Eovdnmøtâl ávt$ority w¡ktl !æ ffi d roy beæme spp¡i€ùto lo tlret pÀrtyb ópsrtlqE wed by d århino @l ot lì9 podomom ol N, Coolrel, Whqn Gquk d by Jft, fÉ lm ol Exhlblt "B' ¡lÉ¡ €ppt to lhr! Côntdcl io lh. ffi( any Þ¡wtrhn ol üf! Coñüd i¡ l|ffi.i.bnl witli or @¡lÉry tq a^Y sppli6bh &d9¡01, ddê 0¡ lecål l9w, tulo d r.gvLlioo, sold pbytslqñ shsll be doamed to bs môdlÍêd þ tño to æmÞiy rlh lold 1fr, r!þ or r€gqlálim. ð¡d sS S ffidiñêd !si, Þti{¡m r¡d ü13 CmlÞcl oxlfft lqquir€d lhallql¡næ ln foll fúæ ând elð* 6.{ Cúúadff lhâlt kæp snd turnl6h lO Op.rãtot å¡ ¿Ðo(ç ndd Ol tlc wl pdls@d 6d Jtrtul'@6 dúlôd ôn lhe nÔeaPl Dåily Otif,lrQ 8.port Fm or ol¡sldm ocmplsblð lg Op€Eld, A þ0lblo Npy of ssìd lqm she{ ta lûm¡ihad bl| Coñl6cl¡r lo Ops¡bi !J tt requeslod bt Opâútor. Cdtsclq sholt tunteh opdalol wfih a øgt o{ dgliwry ücllb ðvedng iiy @lÊlitl q ruPdlá p¡9v¡dçd bt Opa.!þr €r¿ æiY€d ry Co¡fâcld, s, tNcRêsS, éGRESS, ÀN0 LoCAnONT Oæ6tq hEebt ¡sllgnr to Ciltncþf rli 6essily rlgils ol lnlrcs .nd sgdi'r¡{fi r6pæ{ to lhe LæI o¡ *t*b thr fill ¡r to þe l@têd lor ûo perturruÊ by êonthctor ol rtj @rk øts!ÞtÊ(d by tht6 C@haC ShouH Cdtraç,io{ b. daqted lt4 âe6 10 l¡ê l@(¡m for tny taM mt rcâlmbly t{lhln Cotr.qþf8 cmtrot. ¡oytim lost by C¡ntr¡{ùor 6e s 6uR ql sú¿h de¡i.l ¡hall Þ pek, lo¡ âl lho 8tAôlby üm lali. Oper¡þr agrs! sl olltmr to h¿¡¡tåin lh6 ro¡d úd lGli'n tñ !!fü a cfidÃ1fi tMt wllt !Iø tuæ !eôt! ¡nd ffimt to end frun lhe ddrì¡! lilo ln ¿n ddinarlty èqüippsd hl¡hEy lypr velícl€ li Conl6cld E ÞquÙad to us bulldoers, ùdol|oß. loutswiæl dr¡vg vel#€r, or B¡y o{hd çpôclåli2ôd ùànspoÈtion lquipftnì lor lhè ruffi¡t ol n6æry prßhnd. mt,liæry. d eqilipûÞnt gve¡ ¡eð9 rc¡ds or on tlB dritlin€ l@t¡on Op€ótF rhrll i!frirh h€ sm rl llr dpeh!ô â¡d v.rtfþu{ @rl to Cütac1q,lhe á6{ral @l of repilrl to .ny Vðn!æütion cqoipru¡t ,umit}r€d by C4l6do¡ d ß ,.røml drwged 8! ! ,ê¡!11 al k¡propqly maiolâfßd Mes @ds d l@Û6 wlll ùa dËmqd lo Op€falq OpeÌ¡llr onâl¡ rslnbqßB Cslrarlor tq aìl amouils Éôffibly erÐ.rdad by Cmctof tq r.páir6 and,ror lrlalq€ffiI at rc¡ó9, brlte4 ¡nd telated or 9ìmihf fæ¡tiüeå {pùblio ã¡d pftvste) faqulr.d ¡s r dì.ect..rultol a rlt mve purouenlto peíom¡@ h.rê!nd{ opøaÚ 6tull bi rsspmfbls faf lrry ællr 3sm¡oted stì lêv.ling lñc ñ9 b+cauee 0f lo€lloî saîlhg. 10. SOUNDLoGÀTlONl opçr¡lü ôhâil þr.FE r rænd loølim odequele in rÞe ånd c¡prblo ot pbldly Bup¡odire the d.illhg d9, and ¡h¡ll Þ rosoan¡lbla ro¡ 9 ø!¡ng lôd srenli¡0 prof Ém adequaiq to prdst sôl .nd sbsd¡ ffih eL lt ie r.Ðgnlcd thal Opcr.{or h$ epqÍr ¡rrcw1édge d th. l$tia¡ a.d ffi rauts to üe l@tio[, a¡d ß3t

lU s àe* öodñd . Pry 3J Fom preid.d by Fme Oo{.Olrk copylght o 2003 lnlrmalonal Ar*iåûod ol Driling Cd¡c1q¡ (21{) 34c929 FdGOúDIrk cÒfi âdvils c$tEdq of ¡ry rob{ulaw wldltmô, g gb€uldìm fo (hdüdhÛ, h( noi lmièd Rt#áAt rul þi tdmq awns, Jñl holor, ttÇtñ, tifElinÉ' pæ ilru !fÉ ctu'a I ffiunbôtffi flÉ) wdllch C$lrucior mhht euntt whlþ s mls to üts l@0ú q d6¡¡g oÈeBbbn! hslôunds, ,l lào ffi/t $b¡üìl*' SndlllØt lt sqb.d cùdluñt ,M6 qßaííLcaory ft supPotl tho da arÚdnl ma,ln opea¡oîõ hq$rtfl,, Çnd cßtêd,lg or thûtng ol aâe ,ocatld rodrc¿ or PrcþHty o1 lhlc coilacl, lo'loút'd tô.. or drBgr to aht ,tç a. tt trtoct ad .$rlpñd1l M¡tlã thartlqñj optraor tttttl, wilhgû rafF'd to otbq Pryl.lóiê pÒyûÒtrt ot Fsrca ltry¿ut' Aô1¡ d6lîg lo,.L sirùp€ÞgEftr i1,l h@1, talñbúF. Cohtñ¡tor îa. s| tvh lús ot .ttø.gñ lnahtdlng nmovâl ol .lnds .nd .ndlû d.moblltølloî ¡l .PPllarU¿ at. ÊoutPMÉr¡l cAPÂclfy oporalim¡ shsÍ nd bâ 1ttêñpl9d undGr sny as¡idms whlch oKæd thê øteily of thê equlPftnl sp€dlad to be usd hsetnds s+*s6€c6l'És!Ði{ôtlh6 jfrËù vìrifet p.ejdÉe to tha provi¡þð5 ot Pr4Eph I hsGuridü, Cøfsdot .à8¡l tFw tE dol¡t l¡o nrka ælrffi o{-:- 1

ùo n¡€t dæt.ld ¡6 b yôer 6( opEouoô I .[qfpl€d op.latkh @ld âxdd lhÇ c¡paclv ol spidlþd eqÚlpMl

a2. fERMlNArlol¡ OF LOCÀ¡loN Lf.ABllttvr wiw caiand|w hta cotctúdoú op&t,oÆ a( th6 sf,t toc.tton. optrftr th.1ì ah...ú!s b6lttþle lot dlnag.Ia e&Fan/, eßMtt titqy ot Mt ol ,ny pwo¡ wr¡fclt o.6ul¡ €ç ! t6 Y4 tt tordlüonÊ 9l lhe tcailai añd Conl,cçlot ahrll bt rf//kv'l ol iwh t/Àillltn pmvtdëö' ttoew' 'l Coilnçlgrchttl tuhs.gei{y ¡.qlor upon lhs tolrúon tv fiy twoi, ¡øÊludlng Movd ol tha ttñ, .ny lom ot lh¿ coñat¿cl t tøltqg ro tÊh n6þy oal|try tl¡ll bacoffi epplrc.blo dw{ng 3ßh pctlø.I' r3. lr.tguRAlloË Dgñm 0Ë llle otf|lr chhåcl, cdttr'lpr ghåll åt kììrætoa3 ê¡pfls mhtåln, rfh añ lnsurorÖ @ñP¡tly or coñpdnht ¡uthorl¡ed b óo bu¡ltlos Io thg gl¡le ùþre thê b lo tô p€lormd d thrd¡9h 9ìl.ín!ùr¡næ Frog6n hluEÞ @vs.9.6 ol tha ki¡d !ñd h lhe tmu¡l !êt tmh iñ Êrhttt 'A'' ¡n4tlû0 lh'

ffi ltâbJt{iôs 6peciÍ4Íy å*uñÉd by contsadot h pâßgÉph t4 0f th¡s cmkåct. chlwtq 3hall pøre lrÕm lha m¡any r ørranisE $l1itrE sld ln¡ufg@ à t tlilì6Þ q ærtilhdes thÉt ùâd In3!r!@ i9 h lull loM r¡d llact atd ùel lhs Ëaru ¡nâll @1 ¡e ancêléd ol tul€rlålly dEô9êd *llhoùt lfl (t0) d¡ys pflof rtitts þíd ìo OÞtñtoi FOr ¡¡blnier a#úôd hHeqndd by Corùrdq.lt¡r ¡4su6M Bhsll bo .rtdßâd to provld. úrt th€ und€erilÐ wå¡E lhôil.lohtOleb¡oo¡llon ôg¡in¡t Opel¡lW Op€ñlof wiil. tr w[, 6u* i(s ln¡ut to wetw lu¡rÞlplþo âgdnst Controctü ,il l¡aHity lt ¡rtows nnd lhåll ffilnf¡iî, ¡t OÞtñtoft e¡pa¡B. ã ¡t¡¡¡l æll hge. jnrqa¡æ ô0ærå!É I 3et torlh ln Ê¡nlbit'A' ol úE sm üos ¡ffiun( ds lr r9quited ot Contrrc{q, ¡nsqi¡g th¿ llåbifl¡fi Enêcj6€lly å$ÙtÊd 0y Oþêrld kl¡d ¡rld in tlË

¡n psE .ô0h 14 ol ü6 Conúad Opêrabr' ùgü Flwc lód $e øñlsny d ønþtniÈ wilõg sld i¡ruråffi t ærlitcåh d ætlificdê$ üþ1.¡id lÉvlam ll h hll l0û sñdellGclrñdthstthrpñe Éãsilnôlba!ânrã3dormlelalyc¡örgedwlthouitil{10}dst"pfiqyitenrcliætoCmtfflol OpsråtorEndCmhadorlhdlðlstM¡ @Þôcttvs !ñdwfsE lô Mm t ìs oüs ¡dd[b¡rly iñwnd blt oñlf lo lhe ortend d lhe |rdffiirdál¡on oubadonÉ a$rud he te ió,

I4. RÊSÞOHAIEILITY FOR LO$g OR I'AXAQE, IilOET*{ITY. RELÊ¡SË OF LIåBILITY A¡IO AI.LOCÂIIOH OF RISK:

1t.1 coitñc|lels s.tt d Eq$wtt Õo,4ûqrlot ohef Ërló f¡Àüry 9{ r¡l &rÈr Ér ôøa0â lo s drsù¡rcrm d Cfitteclo/, awle !4¡r{mdfl, dÛiltf& of wltln o¡ hov auch ûNgè ør dürüctltn ecußt tat! Conhc1ôr thút røl*ta Opd.lor ú ,1y Ìþbtllq lot .ny tu¡h log, ur.pl ros o¡ úmgtr r¡tfu ttt. pñvli¡ons ô1 Fàñg?ph to õ1 Stbpngdph 11,3.

't1.2 Cú¡/rctof, ttû.lota Eqdlnat Opttor shú asøa lþbry al d ,!nß f!¡ a&ryr lo d &¡¡diø od Cörbdqt ù¡trolo l,|ilqnq¡1, lncl$dl¡¡9, bul no?

llûttad lo, drill pl¡a, &ltl iotlet& ,Dd loot 10lñ16. snd opca,'oÍ sltll m!ûbur* cø¡rlñêlo' lër ot! v¡I& ol ¡¡y 5slr toti or dtmgti lãê vtlú lo ht dtlqûl'ßd tÍPnql úèftuwd tya.ñúa Corfñôtq ¡fd auñl ßpâ!. úslt or ----!lþ--Fqcqt .l clffil 4w n$tcøøl corf ol rlcrr belweel Opa¡¡to t as ôg I by to tht ffilt 'lla, la,t ?Åfitc.¡o/. Eqtøvt . Efiitrffi¿Àl Le q OdÉfi: íorìitúrsod¡g dt ø.vhlois ot sôÞÀrrgnph ,1,1 .b9! Off.rú ,ltùl .!rlm ¡úrl¡Ì rl rÍ ú¡ð rbr ùrE!ú fo x d#úrddt ol Cdù{1ø/a ¡,ulr,tÈ/. Mûtlg løî ùb g$fid oaírs, COr s dtu @ru|# aË4tút ,M sraü,ûo ltñin'¡ú<B lM

{fràsøiãce totrFdort ßc olæø4$'! óþ.tøftÞ ortavaáô.ûidE h arto ûßktgfl!fu, d olo

1a.t qp@ó. rtÉt x@ åld¡y I Cl ûrß fo. d¡r¡t lú d dqrttÀdón ol qøtfdt ù b @Yqí6i @l-æ' g totñ ffi'

Oþc'åto." Egutg,wtt 6+{pnqi, hrf¡dfig, bú ñl ¡,nlld tot c.slnt, fùâ./nt Hrf ,ttd g{dpñ út, end Pl.atañ ll âPpllctblc' ftgÚdl$ o¡ wlts ot ho* se¡t lâNqt or dt1Ûuclloi æcuß, .nó apomot 6rrer, ¡rto¡ó Cøl¡ùaao, þt iny lltblthy ¡ar t¡l tuch ¡æt or dtûtge.

1l.S lht Hù h th. ñl /¡. tôrr ,rodd ô6 ,osl q abragÊd, OFrfr. 3hrf }{ æaêrr/ rûFdÁtL td rær¡ &rûogi þ d tclt 0î nE Ñ kt ltñng lþ cLht f¡rù!r. Opaalor iñCt.licrs Ceûrff Ðdrb rr4'p/ç¡i, ørfscloÁ sd r.ó.o¡rt cfur5 d sty rlt ol üv lúY¡l þ. Èit¡{E b ø ,os 9t û. tPê Ûtd !h¡û pltr!'

dC&d qd l,ðãînry Cfficlq and tt at$pfr¡,¡a, cfficlG ¡rd r!ô@rl¡. cþrt Of ny l* tlþû úd âg.tnsl tiy ti.! sll etalfrq ,ì¿bilLy, tûd .xÞansa rtlttløg to

arch úan.tt to ot ¡ott ùl lha hb/i Undetç.oØd Oøãf.j øþefv r¡¡a rd.qF CØntM drd lß ttryÍú, qrd!õ U.¡ ùtd ,tJöcortuoas þl úry lq ol aol IâltãU ¡u, mO ¡lt¡¿ pofçcç

úd tnddnilfy coffiú.rd ¡b úr&FlÊ.r, rorfrcüG üd r!òaó4t.¡clgr ol dy 0ç ¡ñn ed ttafu n y ¿t d d, çLlñ, MW úd â¡p.ô¡¡ ruü+lnl t}!ø (féôãd

9p@û0ilÊ ødca0rtr cøt ct wffimta(hwlot &1tñ.ao¿ ql@ sårË,rrui rfüúp,v.tv,ElrdÚtùao oß.ga,qúÛñ*¡a) t.ó¡ã¡Ëd¡.ryió., ¡tl tha úne olths ãct ü frtsdû cd,d.ng 6t,d/t Wry, &þtrthL¡ofq tr t rp¡¡lffi¿ s¡d õr/tdtnæ rì9dmt ô{ æd¡tétd þ ptliðk, þo'¡s¡bn !¡oþ dÉ s(ÉaÉ otüa

sttL tnd fú My Iþ$ g( d'ø/,ga lo frl htttvëú,5ffi, ørE6ðt ôêdôdl lÀ.6qÉcc or lrE ó¡lÀ t1.? ln6Þ6aloù o, Nalalal¿ Fufrlshad by opqtor cútrtclangtæs lo vt¡dty lttJpd mlslats ltñttà& öy Q"ttlot balon utttry w úd 10 'l'

oollÌy Otqatgr ol .¡y .ÐA¡ri ddfÊ úr.il¡r. Cortrclg. õlutl Nl bo libla lN W b$ d d.rEge ñ&tå¡g iíñ !û 8a gl ñt¡d|ls hältß/,fd bt Opc¡au, end OptÊloast¿r, ¡rráost Cofrlrrclü îñ ,anó.h.ìt poaæi dart\d.nd i¿d4mnlty Conlndot l¡om Ûdd.gtlast' tny.wl, l¡oètlry.

148 oot ñ6 tîcffif,'lÞtotr al ¡rffiy o¡f,ó? ¡fo.r eld Oprr¡er Cormcru d¡r¡ Ft¡$ Mor d oy r¡ôfily ô,ì tad Crß P,úri dúsó &d çf¡rf ¡t, .hkrr! dérßnó, .nd øM ú âc{oÐ ol ñry tM .¡d êrurcE, wldþd Âl'{¡íd *iùM ttúF¡d tÞ ltå d@ d ôtÆ ú?w' q â6 nègìlgdM t út Frg ú pô¡ll¡s, úr!îg h ÈdrEao¡ hae4ú ,1 lrw ol cetusclb,/t drp,qffi ry co¡tdo¡! 3ot'dílEclø ol ry dr' (þ8ka¡6 ot Úy tgdt! 6 ffi#d trilÈ ty cq¡túalt q alrl¡ ñNoy@, d Corirðlúrt fn rçå ø reql of búl trútl, ctrd¡ ø deøüç lo pnpañy, C;*frac(atl lô(llttîl¡f e$é ífa FgWrPh Sat ôo dr¡oul rrgryd fo ûd wilhottt dry,øfr þ cnnùlbttdú lram.¡ty tÊffi ûtlfttà¡l{ld bf WO. Put'ryl lo P.rttñFh 13. i ÊhltdlJ.tJ üdt¡f,t.d itat ûn ñMqâry ltfrttb ot INlffiø ìtgtttø heødf, g ot tJÈ ùdsr¡rdß vgfsøtfly éaí.d utdÆt Srtp¡dlmPt t4! t!,ldcl¡ CúlúEþ/ ùd oplÑr ìdôt ogft r{rJ ôe ¡mporl.d eVtr åy r6Àtt¡r eôgfy hffi ødlr w'rbì ûn t w hr, ñ ¡¡9n of sr$¿otaffot å!Ð'd ,â! h tutúa, ú wlsûttly t.9+úw¡4 h tytl o, wttot4 vcaê¡! lha ÍpùÙûffi ñ|lf5 pømrar,ld Øtu applanle bf,. ¡r ,s üøÐd d¡r erd trr@d teqd,mt¡f. o¡ ÈtrL.tMlfâ! .& atlwfdtdlt ba Em¿Rda.l aD emloañ îo lhè aañûq ffiitury llñNs pÙmtlled undg aßh taw.

l1,g Ogeilfort lndønìlc|dotr o, CmWM OÞc¡At.à¡rl ¡J¡ CøÈfrf o, tîy lúllly tú, .ad t¡úl¡ Noftt d.k d úl t áJr¡lîy Comdø t¡ff qd 't rg'rfijl ¿r, cJ.tro, dmaó, rnd 4F o/¡ôfto¡t o¡ eÇy tulând dits.cfqt wtlhott lþtìI øid Èllþn ng¿rrl lo thø aaúir ot c.uras aha@l qlh. ñ.gtlgñêô ol a¡y pâfty o. ptdtaL t.tíIng tn c!ùre,lEo âcnpn tr l.w o! OF.ãþ/r ñptoyw ù Apq.lot's ffiæ d ury ö.. (o.tqlo ol úl .gs¡l .qsdþrfl v 3uôrúffiû elg¡gûd ùy optrrbt') úahti uîqlulæ, ( Op!¡¡*o/s &wtlt6 oüts tâ.¡ rrtæp.tde¡ ff$fiod/¡ dal' ü

. lu9, t¿N*wntú'PT.a) Fqtn Proetúsd by FqN O["1t.Þl¡t Õopyrighl€ 20G htetuùond Asi¡tllo¡ ot Ùimng C¡nl6qG (e!1) ¡40,t4¿C. FsmonADitl.ffi

lorgl oo to trcga¡ty. ogal€t ffianry n¡rç t b Pþctrþlt .fr ôó *fü4t nFd ,p &d ,uùoú gr,lgtt ao cdrnló|doî iw dy hw cûnuac!ü pß@ú ¡o paâgìi{,tt ß í n k pdtcw éalqî/llj, th.t th. trßtlÛ¡ry þî¡6 or þr',ffiê n$ùlEd tmffidê.ø û#ht'd hy dr lòe kdôNildeâ vôltwÙ Únú mæ M Àtr,2ô03

||rrßh ltê htlfr l8 ûo d su6Ã.rr9rpà u,e Nlrfit Çdûtctú ñ otr ofw t¡qEôy ¡!É *!t¿ b s!4pøtß &êt by tt¡6rõl.lttÚw l.ffiæ, llttdo¡ 'lgn tt ôðgptb¡ .gc¡rrr dþ &dbrñüñ, ø hllrlfr.fy r.,f.¡¡r@ad ltt Fl w *t*) dóaid rr ¡ilrñø ¡¡{ir, fgnúh¿ ø* ¿æ*ah b{. ll ß ã'/tú itl 8'{'

lntunncø rcqúQú.nlÊ o/ lñ6en1üß rlptl a]¿/.oñ.íatty h. .múdâdlo Mloñ lo l¡É fr.xlñM tnaltry ttñrlt þqmlllod uñdû aùêh lew, b6 üàk lo t alp c& aî EgfrE Ørtot ot mF ûdd rr4 € *d{e lot tô*0a ffiv.l d Útl dtò.tJ *td c€r ta.lo usuw l$rfidw* o{p.opeg øar¡lra¡trl t Conñc/¡t ùti fü tupp¿æ colù¡dm Úd slffi ol crY d'( lÑñ ffiúathò úd ee{@t lrd OpqE{¡o¡ ¡rta¿ dr€a \ plo¡M, d.lfrE aûd lddomntly

tnd t9ôlñii âoy tlâbllÍ¡l lör rp.h cota.

,1lt poþùdôi o, Coit ûtñ.ltort tlott¡thraanúng.nß¡ttll to ¡l|a.oiñry.ooLtdt4 harelî, orcøþl aha 9þv!s1o46 ol F.ngßrht 1A and lZ ¡l 15

úidøtsl.od ,gßtd by ôod 6at'ffi contñciq atd O''xelôl lhtt dta ì,alflalb{W llt poltuøon gt coìlâñ,l.âllØ th.ll b6 âs rólfnw9:

Dãd

lr) cr¡øctç. sfE/t erírs ,l rr¡poßI,nfrù lor. l¡.i{r./¡rC cffùo, md Bno€t ú, aîd dlsff Noftrr'., daû/,d ñO tntuüy O,tûW tgm rnd ,fpihrl C d¡,rq,

dØûd| àN aw ol ,aûú o! ecry ,¡ñtt gd.,rtçlrr {*tl¡rg /rffi p0d¡/ûb, ü corûn*¡dlo.r, úúct o¡lÉþfr¡ .àwê lrg rrãc . d tà ¡eó 6 ñÊ fun .# al lwb, tttbí6rr& nolot tla¡¡pç øpc p¡*¡rr, sorÊnß, âda4 ù't. drd !F ôrgc, dt4 6tü¡o¡.hô,t po¡t¡tr t l @ Grêfl. 9¡a' wûolly ,n ca.fatfÛl¡ posHlø nd lorltol .ûd dlñlty dsscJ¡ t6d dtà CØlÞ c,ot¿3 ,gulpmql old t.cll¡[t f}, Opr¡lp/5lÞdM.dtÉpdËñ¡ïy br. ¡ñir¡¡dtl toiat,/ uí dwd ol, axf¡n {t d!4 d..W!rd lodffilÍ&,¡,dd0t.rd t¿l ll4oþ¡çr¡ øúfttw rd t.úçú¡Érætú ot tny t/f,r tø qd |¡ú¡t !* .Lir¡4 ttqúradt, ød qsrB af .r{ôa ol aYW tlnd .4d çheêlq ad¿lng llBlty ør lndíftrtl ldh dl oah*

Þoltudoî ar cgnttnlnútØ whlôi ñ.1 æçw tu¡htg lrtç SndtÉl Otfdlon+ lqsüóa4 lrÊlúûtg, M Nî ,Ñêtt lô, thd ú1¿.h ßy tú ,tw ,tq ôtow4( Ot

ctttdlra, wa w ey ú8 vtrontrdûd lrw ol od, 06f, F{* di¡dtr &óebrBa 6 [tJ * frt e tr dópotlrofl ol ú d.ltnøíúd+ hclu*tg b.t dlffi fo, ot

eûr,ßtûî, ôt! b6e ú cløtheily t&/f,d ùìW thlrdf't úûñn ¡¡{!d cúr¡s ff cí'rtngs, trl clrÍlodor .¡d r&tr NEy Dlbrtú ¡¡d tMds Op6fþ¡ ¡tu, ælãt coìtú1q and tB s!P'llß, ¿drùrfrr ed¡sô¿ølñçtas Dl tylk ol ú1fl¿W lb¡dÉ rbñfor,$ lcl ht íú wl t lrhn tly cøwttú U æ1ú dtr¡sdo4 tdtkrt rt¡¡rfr ¡n poXst/þn û cOtêt¡ffiû ,úrwlüt.ilhd ?Aiffia ú OPæ&,lüÚtm nd, p.ñy ls ¡trt¡on',t wt(, ,i àgld art tr ,rrqfy ¿þ¡fq úlr Þspo¡rt¿rí îÊtt/''ot .rr,lt h s ¡.ôØ Csrffir úd O@ú, to ùô d¡á ffi u lÍ dÐ qryprd.Ed,

Fùlf ,i. wrtú ttþ wrl< w pølamú hâd pqlond.d iþ ws {rd ¡JV ot d,! rùntúù,ûß lËpsrútg PEkÈr¡, dt¡æq tuoãntly ed l&nlilo0 ol tßP4t¿W ãn.ttLôll¡ty,.r 6ct lotth ln (tt tnd lbt a6ow, thall ta spñiliñlty âpprloó, Cqsq@ñat thùÉ!Ér sr4¡Êclto ïd *üldrt onh.it¡g ü¡o p,Dyrdo¡s ott& eonû*f rü0.rú¡g lñ I 11,12 rlghA aú o¡lçúont ol lia q Ita tW '4yowt 'eltß olIô3å, .gle$ Irdfrdanûlttrfdts¿rdoá{il{qsorltrp¡,1¿ì, dp.ny¡rÞ¡ût.trtrE 'thi!{rlløañ eg6r.¡l ß ffi 6pËcAl, frdrel o¡ øs.qrãidr, dañ&* ùd ôr psdc¡ ryË ôf gpacþl l4dtËt d amngúdöl d¡Fçr sôd, ôc erï.ft lo ,rc¡¡di ${re.t I,frtÞdaã" t c íO$ow1ng: lw ol pßln q ñú6ì côlts ¡nd a.rpdrq ßrÌùA nw }laårBl tfgúqlonr: lñ ol d d&y ll ptodtM; lw al ù ÉtüjÞ ft drd

,s¡Gr¡or4. þg oltrd.&f ,fl dtüog s qr+ilr(, r¡ddf.¿t ¡ndryvrc¡(, trerattt lÍdþ elffit0tgr{ Fvvlü by oqøa¡'' ngìrþtc€l otsþrs ota. otpgpg& cqrtræt@ r¡{¡ôcøfrr cæ Ene Optw ltA tr* úìg ¡ó rspqt¡rüro løand tro*, þ¡n¡s frr trdønly CofËcfo. dd å¡ tr1tptþ6, ot @sy íd ú by tltú cootlftfoÉ àrd ¡¡¡ôffioÊ ot Nyús!rcm ùí.g.lnü.{ d¿hÉt døütú qd dß d.a',il d Nf tM and clúañ lû øñsôbD tldr r¡¡dt t¡.cÈr, hil¡tct øcorrrg@tl¡, dr.figñ ¡¡rltcdôy Ore{qf,6 c@$æ¡t, Þãfqvì ælat 6t lÁrnq'. ltñ, pall& ütd W w.

11,13 lõd.ûntty Ohltgcløa: E qopt .¿ olh.rvlta uryattty lrnhad Iû lil6 Corù!.( ,f ,5 tÀe ldfÈt sl pflJú haûao lhta tll ñ¡Þ5r¡, fÍdffirfy oðr8åloñs andlo. llâhllílú dsaumed òy ,ftrt Êrlll6 !û& r loms olliìt Co¡dßca, tr.ludlnv, vrlhôtta ttñfl.dû, 3úhpiñgñþhs 1,9 .nd 6,3(C), P.øtõP¡ß l0 nd ¡2, Soal SsòF¡dgõp¡9 11,4 heñ|, bô tdlhoul t,nlt añd úhottl npttt to th. c!r. o¡ Èßs lhqet hclûdlng, bul noa llmftcd ,o, FlÉklltg (1bugh 14.12

condtdaqs, daL.l ot nttn êl fltfr/6$ d lq.rrpffie *nct úetlltl$ E ul{low o. slrlvtêty tleMltly, pftducß li:bl¡¡¡f, bwlt of ,ePNslúJú q wway

laxpæ ot lñpt¡.óL þMh ol ddy (*lta+w *iJþtf, @rú.ctât ü ol|tt*tu) W úsy al aeí ¡,wh d .oÌtñ, ,.rL tE rñdlgwo ol .n, d(,s û crt$c''. Irrúrldf,ß o, *i.drrech nqlgqèè b *, þm d wË( ra4,Vq¡ p¡ss¡v! t tt6l d úl 4ltly ü !*l,É, ktdulagüæ ø1V r..lú¡g ûtô ¡a¡{tf of ¿à! trh.¡q

,'dñotly ot *tøFføt ol htl'fy, v t y ôlrtslhsl dt?rrfþö¡¡ry- fttô ¡ilrmt^iq. a¡ìd nlr4¡ç ild ß¡¡nÞCoß of¿åtlrfy.'lcdrd bï A. pula hq* u'dc¡ ln

pEMa hotdlng tûd ,tlll¡.têó @npônh6 tñd rtr. olLcàtt, dhxloß, ifætnodarr. patlÛr& ñrn gu., ð¡rull(¡ft s, qqloyæg co8utl'nf! edult, rêMtß ôñd /¿sfrda ot Écá, EÆapl.¡ otttfwls. prcvttgd hanln, sßh ¡ndffittta.tloñ ânl àiØll/órt ol llúItly th7¡l ûot b.la@ad to ¿taL úy tlotfas

to tndffiñlllcrllo1 ln any peão¡ ç¡ .dfty nøt a paâf lA ahþ c,sntùcl, .,ahq 8. lhtrd pottt búaûclary ar öy rûron ot tDy agr&Nnl o( l¡dffin¡ry bM ono ol dt. p.t1l.ô h.t lo e.d Anolh.r Þ&û or 4W aol . !Ûttl to dllt Conancl ,1s. auDtl tf ¡ny psymflt pðvidsd hr het@ndd h ruúc d ll8 ¡Çûr oi Cmtraçtöt's ølB, O!ætg rhåll hrw tha rìghl to aølt ConlRcto¡'J bðkg 8id Hrtd¡ rohllng to rucS ø1.. Contsãc(d tgræ! to Eintain !!dl bæk! aùl rgd¡ far s ¡Mod t, fM {2} }9å6 ûm ûF dâb irrdl øß we lñßEd ånd b m¡tê ÈfJ| òoolq rrd lwdo e&ift .vol¿bl€ to Opôr¿tor tl âny 6¡Måbþ tlm s l¡n* wìthln lha pt¡lod.

tS. NOWAIVER EXCEPT IiIWRITINô ( lr futV !¡doúþod 9pd sqH¿ ù¡t ¡o.Þ ol th. rcq\¡r€mlt ol lhie Cøh.d ÈhùÍ b! stldsd 6 waved ÞT ê¡th6 p¡íy unþaa 1ñê ¡am l! úon. ¡n

triti¡g. and lh.n mty bry thc psr4N €r@1i10 h¡a Cqtsd, d olÌÉ1 dlly âdhdi¿od aoónt t ÞFe!e^lâül¿! ol ttç p¡rty. t?. FORCÊ MAJEURE

Exæpt €s pmvi¡ed Ín lhit Pårgñph l? lnl rlhöut prê|niÉ to ùE rÈÌ ol lør, ßles lrd indomnily obligaüoB ûnde lhls Conlnd, eÉll P¡rty lo |tl¡3 Cslrä{t shðìt bs exc!6td úm rmÞlyi¡q silh the !6m! ot lhl! Õo¡træ.|, qepl lor lne plymnl ol mnles $rc¡ du!. if eñd lor s lo¡g al 9r,eð æ¡Þ!"Êôæ i¡ hlø.rtd t ptêvônlêd by ¡ Fot& túajdura Ëwnt. As ugód in th¡i conlÞçt. 'Fffi Mûjrutå Ev90r hdld€sr rqls o! G9d. ætrm af the el8æn{s. e6 {dédafed Û uñdæ[¡têd), lôrurrd¡en, rovolutifi. r6bðtllôn. o, clvil st¡Io, dreey. õvil war d àolti¡€ æîm, lsffiist sd6, rþl¡, 8bket, dltlstsMs wiÙ¡ wkß. ¿cL3 of Brblic e0et¡$, lâd€Bl 4 strt€ |ffi, rdôr. reguhliqs ókpositkn! or sdrr of a¡y gowrnme¡tål rutl$tüq¡ ¡svì¡ç juriodrclbn fn the pr€mirÉ ü ol ?ny oüs g.tup. s0å¡l¡¡liln ff lnføml r!3*¡qUoñ (wi!ùs q no{ lsmlly io€onl¿nd år e qov.m@nl). Imblfly to p@r¡ rutdt¿|, ôquipmnl, l$l or nM¡ery lsbq ln lhð opü ruûrl, æ!t€ ¡lìd un$usl tâb¿r r ñtedât, êquipment or Jud shot¡gÊc, û ¡oy ôüar 6uw loÞpt ltÈn bl) bryüd the @ntrol of eilhs p¿rly, NeiUH Opelatd t Celr¿dt shâi be ßqúlÞd

againrt its wilf to qdjult arv laÞor ü simll¡r dis$rles ârefl in 9ødå¡æ wilh eppli{åôla lðd. ln tbê eyent üât èlt}s pãty heæio ¡3 r€ndeEd umþle, htþlly q h p?rl, by any of û\ôs 6uæs lo cårry oul itr obllgrlron unde! {hlÉ 6skicl, it k åersd th.t sß p¿dt dÉ1| ghæ mllG erd d€hll. ol Fo@ Mársare ¡n riìr€ tô lhs olhd F6lty !s

rcûlþllly ås p6!iuê âRÊr ¡b æruten6. h sudt øs. lhr obl¡(FtioGr ol lhs t¡ry Cñin0lhg ællÞ rharl bo sqpendcd dudñ! lhe sÙnusE ol my ¡n¡Hl¡lyto 4usåd

oræpt lñat Oprrgtar sh¡l| bo obllgålod þ p¡y b Cfitrciis lt8 Fqæ lrlareure Rnto þldlded lat ln SubpsFgsù ,{.8 abve, .I8. GÔVERNING LÂWI

tfil¡ Cdrf¡.ct rtE¡ bi cñüuod, goffiad, lîlrrpntÉrt, rtlorçad md l¡lg¡bd, md th. ildoú brtrEo¡ th. prti.r dsbmlnod ln æætdac6 r¡n'l üB

lg i e)@Å coffi - ãcr 5J Fóm provided b! Fqæ on4.Dl3k coÞyflght e 2003 l¡leru{úâl Aaspdrt9n ol Dfillì[g cqldlds {21 {} 3,10'0¡129 . FdNOnADirk.m o o r9. TNFORHÂïöN CONFIDEI,¡tI^I:

upon {rlddn rcqoær by Op.{.ttr, inlomatior ôbbln€d ry Cøhâct6 h l¡, ÐdKt ot dr¡lìiô! oæEllms ø lhh wll, hdvdhg, bùt trot llmilcd to, {epï1, fmrtio¡! p.trkat¿d, lñß räuls ol ølrE, ta6{o9 ud seying, ehâlì be d¡ldtrÊd mfidenlil rnd rhall nol b€ dlw¡o3d by Co¡træ1ot fr lb mpk'teeÊ, lo ¡ny pepn. 1ro, d @lD¿,¡llon ofnar thü O!é.rt¿i! derloftlsC rcprdqûbliv6s. 20. SUBCONÍ¡ACIS| Elthor plru m¡y am¡{dy rts @lraçtffi b p.fúÌ srry o¡ l,bc qperaliñ. t FNleô to bo ,ovldgd or pstþfr¡ad bt it ræordlng to E¡hlbH 'A'.

2I. AÍTORNETSFÊEs It lhl! Cql€cl ls plg6d h lhe hand8 ot ,n Díotnay for cclle(,id of a¡t ¡uß dm hqgüod* tr rull lr broogbl on 9are. d &m dß hêrdndí tr ¿dLct€d

lhmugh banl{ruplcy d rròikã16 pr@Gdhqr, lt!€tr lhr p.evading prrv shâf Þr al{e{t lo ECôVF r€ôtonÉUÉ stbrmy't t6! of,d 6t,. 2r. ctAll¡$ailoLtÊ¡{sl ConLâdtr âOiH to pry âil @ld ds¡m lq trþor, @þr¡¡1, tñiF. Btrd slpplþ8 tô bê tu.ni6hôd by coñretoi hæunde¡, 8nd ¡gres 1o dq ¡o f¡rn bt ruó lhlr! p¡ní.¡ þ bs ñ¡õd upqr ürc lcg. tp rell, d oûËr prÞrrny ollhð oporil$ ü thô hod updr w'tlþh s¡! KI lr locsled

1¡. AssloNÍrrEilT:

rsD¡ trh oonlród w¡lhoul *ìe prlor wi[s æ¡lcnl ó1 lhe oüu, srld poúpt mllce ol ff] such l¡lant lq ßslgn eh¡ll bë gl€n lo th¿ Neil¡er pârty nEy oth6r psrt h lho eeni ol sch Nsignmanl. lrc aslgní¡0 pgrty sh¡ll Emh llsblo lo lhe oths p¡rty a! r g@6ntú{ ol lhc pSfoma@ bf üo aæíCe ol ltë tgtm! ol $lr Qølrrçt. l, å¡y ass¡g¡ñút b mâdè lhát matdi¿lty ¡ll@ conu¡c{o/e lit¡Ml hFl€n. cøbrclú/r ømtnglio¡ Ji.li bê adjßl6d lo glvê ctlËcl lortyltúessüdø€6661nçqntBÉlo/sopêrâl¡no @fr. 2¡I. NOÍICES AIiD PI.ACE OF PAYilEilI:

i¡or¡c$, ßt6tt, rnd o|hrr Fnmunbâtionr rcquked tr p.øl(ed Þy lhb Cont€cl to Þe tivq a ærìì b, üê pirly io ûÞ ôlñô¡ riì.¡Ì ba dâlireËd by håM, üiled. dlgllalfy t rremlttêd or lehæf led lo tiâ dddN h€Èln¡bovr Ehff, All luml tåy¡!ê h.revnde¡ þ CáûlËdoÌ shr¡¡ te pry¡blo sl lb åddm¡ h€ElnrÔdo rtìM

2¡, COrílñUtr¡6 0su6AîoNs:

Notwittril¡ndl¡o {lF ùBm¡ætþ¡ ot lhiè Cdlr.ct tho Fâdic! åhåll dtjnuc tÒ bo bilnd ùf lùe provilion6 of lì¡9 Ctnlmct ûul .ëå!mbv Éq¡¡rs qls ss!ún q lorù¿ðf¡m eft{t au(lr knúrdbr. ¡r, ÊMTlnÊaoRÊÊttEr¡t;

f¡lÉ Cü|.ágl @nrtlld6 ths luü uñddtâidlng ol thã prdú. and e Mptete 9id ardug¡w 3bfomt or lhê tôm ol lhdr å!rerH¡l ¡¡d rhal excluslvÙ ænlral .nd gwn lll ffiil palomed hrðndd, Al Epnwl¡dor, offer!, ¿M ùndertãt¡ms of hG p¡.ti! mda prba b iÉ .tbdw dâè h?Ët c/trtfrar or¡l qt ¡n r¡ünE tæ mlgrd heGtn, .nd m o{her çq{@tr, rgrctrenlo d wk 0dæ, eæatBd pr¡or þ úa cr@ì6 ol this ÕanlÉd, ti¡ll ln rny My modlçy, åffind. altoror ctungÈ 8îyol lhç tsrß øændifiônr sêl oul hÇ/êìn,

27, SPECIALFROV|SI0t{3¡

,7.1 E¡hlblt ¡C'- 99nlr!Êlllrj¡Itd¡l:fqtÈ!¡ft l. rlhhed h.roto .nd ñrde . prrl hô@f. ¡7.2 ln rh6 æent ol .ny dkDrts ¡dllù dl ot d nLl.d to thh Contr¡d tlþ orltr mma ú[l lurl¡dldlon w¡ll ll0 .xclu.tv.lv wttt ür qlrlo ud lbdrôl qoúrtr lÞ Ho6fon, H.rdi Coünty, l.16; OFfltor mNr ¡nd cmtarlt¡ lò ll|aludrdlctñr d llrr-.t¡b rnd t dñl rqilr ln Hõu¡lon, H¡rl! Cdt*y, frnt, .nd Btvát rny obþction thåL.(ch 4ourti aE .r lhitrqp.. ø lnoqnv{¡ñl vroþ or|oûñ l0r !!slr dl¡Ful¡l 17,! Fof Þ9rldô ot d.l¡y durln¡ df mq6, c.uæd by clßunËrcË bcydtd cfflmlør con¡ol, lmltdlne , but not l,mh¡d to, lncl.mút wot(hrt, læt ol avålftHllty ot D.d.;læ.don, tñn¡poûllon squlftnont or Þ.ñ[r, Opèñtorrhrll pry conlrôcloft Col¡ynteol 1r9,000 Pef dôy, ?'.{ Epfth tlolr qôMc!¡, lhgj ("€poch'}¡ ¡o rfnlllto ot Coñt6cllt r¡óll lorôla Opr6(ô,, ånd opcr¡lô..h¡ll p.y Epoch ¡¿t0 par d.y lEpud to æþ!s) lot Nnl¡lollho Epæû Rlg Wllch¡ylbn, Tho emoh Rto Wttoh 8s(m EûulrmrÍt tNludr¡ ths Íolldlnor OdlHt Èrt(.t¡lroo, Conmrymrn aoñÞst'r qorlrt¡dm, f@lpuhtr ømÈrtor rcrtrlúoñ. dõ¡0ìrùlt lñd*jnn ¡nbñ. hook lffdtùlt wrlq¡t rdrù lo|W. rotld RPlrl ofirD ffiiun, Mt alto¡r cwtf,¡ (2 punp| lnc{urtedl, plt volunlt Drcùo¡ ü pFb6 lnclúdút wlllí odlo¡ tor 6 .dd¡Uõr¡l Þobã¡), tiip r¡nt v'olum. pìlba'r ll nEbo |tidud.d wtth oÞÙer lor I rdd¡üaml p.où.l, .¡d atum niry plldh,

2T, ACCEPIAI{CE OF CONIFACI;

Th. lôtÒg'lng ôonlaaL lnctudlag llto p.avlr,onr ßJ.r]ng b tñúffibBh r6løs. ol ltabtllq tnd tllo¡.l/þû ¿l 116l .l sobÞofrgñpht 1g .it &t(ê), Pañgñphô 10 tnd rZ.ndgaÞpttugnph. la,l thnull- 14,1?,lt tcloott.dg.d, €gt .d ta t.rd sè..Olod ty ôpffir"r,, ?, 3 aoy ø S€f '2ol$

OPERÂÍOR: \ 8y¡

Ìlüô:

thr loßOolñq Conurca frclûdiûg dr. pðvrcbft ..l.dn, ,o lnlcnnlry, rè,ltts ol ,l.ttrry .r.t ailoçallor ol .lal cf SgùF¡åÍÉÞrt¡ ,.9 6,4Ct, Pmwpht ,A and 11 thd Ssùprrtgßptt. t1.l dtþsgth 1a.12, It aakîowdÛad, o916û to ¡Ìd¡Êct H !y Cm hrclq thls 2I-L, al -Z¡L*.!â! -iiâgløþg,-

||'r/,ñh t9 tffi r¡d !vov¡$,øs, vlttt ,ùø uú¿ElÇnttlot ¡io e,ficûve dr'¡r oltåls ôdltfacl ruùJÉt lô tlg.w(tutÍly, sdtt tu6jæa ¡o ,¡l ol tlt llrl ,t will ñ1ba blndln| uprr Oqqaw @lll Oþdñlst hat îoLd L. ace.?lrna., tñd wljh,io fuahû lndxtlatdldt rh.l unle6¡ srld Cøhq{ ,s tâ6 .x.cûad by Qpffir

vflhln ¿ã!43/û:øL dtyt cl lha rbow .laL Coãlnclot shlll b. lñ no Ntne beanû by llt slgîalufr ¡hq.'.o,

col¡TR^010R:

fttL:

(U,i, O.Wh Mêll . PW 6) Fm pdildd Þy FomÉ Ön-ÀDlsk Copyrlght O :{03 lnt€rEtonsl Aesisltm of Ddlllru Cmlr¿dß (2la) 340.942S. FoñO[AOiek.æm

a o R.*d Aù{, 2@3

EXHIBIT "A''

To DayÉ¡k Cont ec{ dalêd 9.st6br¡ 22 . 20 -l¡l-

OpoEld N.i^e ñdll¡Àð llqÁ I Þ

W€ll l{mo rrtr liuFbø lã ha rddúl hv ôBótô¡

spÈcrFtcAnoNS Aô/o 3PËcraL PRovlslolls

L gÂSlNô PRoGRAt'l ls.o Prnlr¡ph tl llôtÊ C¡¡lng W.lght Gñde A9!ro¡'n¡te Walt on ccmt Slro Slre s.dlng O.pth Tlna

Cond!Êlor in. ¡ñ lbslll IL hE

Suúco in ln. lbo/t n trrS

Protællon lo. þ.rn. Ir. hB 'l ¡n. ln lbs/ô tl. hÊ

Productld ¡n, lr. lbe/i It tE Lln¡r ln. i¡, b6rn. Ir. hË ln ln, lblrn It ¡ß

¡, MUD coiltnoL P¡ooRAi¡ (98 6ubp¡R0nph a.2)

O¡Þlh lnl.r.l (11)

W¡lght vt.cotil Wlt¡r Lsr {lbt,srlì {3s) t*l Frffi to Typo Íud

Olher nìdd !pæif6liw;

3. IXSURANCE (3€e PrrrgÉÞù ll¡ f .1 Adéquale Wdkerô'CoôoôôStlo¡ l¡.u,ânæ @mplt¡nt uith Slâtt lM óppllebh d Émpbyéß' LiEt lE lMùrqnø wilh lìn¡A ot t--3$ll.!!!l&4---

øvsr¡¡o allof con(l¡ctoÍs ñploygo! wr¡¡ng lnder lhlgCmlact.

t,2 Comffi.clâl (or cmpchsNl$) co¡a€l lirlility liluE@, indudin! qu&ctul au¡gttioß s r6pèd! thlr Cdbel áñd prepo. @vflgê lor sll othd ouloåtmg 3.ruftad íî üìþ Cqùact. Ihö t¡¡îl 6tst¡ m $_-gløU)-00¡ltþ!-- ffi @rtütrþd ingl€ lln¡t ps td Bod¡V ln¡oçM ProFerty Orm0O.

s.3 Auloûþtir€ Fub{rê uq&rry t6umw $.rì tðib ol f-j!lltl&¡l!þt- llr tho delh or hlury or êocn prrs rnd ç--¡ELl1l-ûll!Þ¡t-]ôr æcþ

æilml; 6rld A¡tlorctiþ Publìc Ll¡tillty Pnporty Otm!ô lnt(¡næ wilrr lmlt¡ !l r----eê9"llL¡dl!þ4- hf t .fi ¡cddMr 1,4 lqlbs¡l-opa€dañ¡.{ô-Õre¡4dtrr-e*þdeHlt€1r4¡ryiHd(¡fe¡-t€-$c t€t¡trúty{¡rirå.-UÞfffg.hetæ'.+l{flùd-f rdl6E-êsE?¡flrtkh¡pli¡¿$lcÍÐl¡ibùd}{oqLd¡âCfihþ/¡ffi$¡fs.+gt{F*e¿¡*æ d lrûrFe€EtlH{sd¡:# 'eFô¡*-dørlt 3.6 OU¡er l¡¡u€îço; Gxcor ll¡bllltY lnr âËto.¡l ot ?.1. f.?.nd 3,r1, P|.r¡tor wlll qrtl[tL9EÉ lnl$r6sa tn ¡n rmo.t ¡ot h¡¡ th.n SIO m¡lllqÊ.doll¡ô l¡&rlngllh. í¡t{lfilôr.r¡run¡d lr{ th. Ofrll!il qn Lr tltl. Cooltæl .

4. EAUIPMEtIT¡ tilÂTeRIALS tNÞ SËRVICE8 fO sE FUnNßHEO lY COÙlRAcloRi Th€ reh'rcry, €qulÞmôrìì" lOó&, mðterlals, !uppli¿3, l$lrümnl9, rfllços.nd lebor hslÉfnr lì3ìod, ¡ndùdìn{ ãfly Itusporltllm roqulÈd fù rudl ¡tsmr, sh¡ll bo prwldcd ¿l lha þìl l@liûo rt U!ô axpâmÉ ot Co¡lrtld unlggü oìtÉrrtE roGd by üìk Ò$ttåci .t,, Ddlllng Rlg'SüÈr.ètlo rwlhbll¡ly compleß d¡jlìin0 &. då.lan¡bd bt Cmlrdd 9! ¡tr Rb No. 11?¡ t¡9 na¡t l@ o¡ Gquiprftnt b€l¡g:

ô,ffiksi Mak6 and¡lodal Far ir l^sd.p ¡trÈhd

PunF: ño, I Maks. Slzâ. ãnd Põrci !¡0. 2 Måte, sl!r, E¡d Pmr Mod túi¡lnç Púmpr Mâke. SLê. ,îd Fw- B.il.r¡i Nunber, tltðka, H.P. ¡nd W P

D€tlc¡ or M6t MskF. SiÌe, âd Ctpadly

súb6lruçlu,ê: S¡6 rnd Cap€dv_*_--_ Robr/ Drivg: T!!€- Or{l prpej Sjæ * - I ta2'- ln @lqhtt !¡d gndE !g mcdrld lgltl'lrhln l0Q0ü lbq oveßùll I ; SÞr: *.- in .---- i Dil¡ Õdh6r iluñÞ.ônd Sl¡D

@ -

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. Sllq Sede! or ldaPr, l¡l¡k. t ¡rod.l Nuñbct

g.O,P- Clos¡ng Uniil B O.P. Aæumulalof,

4,2 oâricl l¡oþ8. {.s $omâ¡ Glring ðf ddl p{p¿ Erd drllÍ øll¡ñ ðpêdüed ¿bdê. 4.{ Corvóìiñ¡l dril indÈ4lor 4,5 Cnculating nqd plr. LA Næsr$3ry plpô 16*3 âõd rigÍh! uÈ h8Ìqial. 4.7 l*ml ô{erâ¡e¡oç¡iÞd¡¡{talFnbð¡F 4.8 Shále Sþker. 4,9 4.10 a3t t,12, 4,1! 4,14 ¿.16 4,t0 4,1?

5. €qutPfiÊMf, M tERtaLS AllÞ gÊRVTCES tO BÉ FURñ|SHED AY OPERÁTOR;

T¡e machhcry, squlpme.l toots, tuleflâls, âuppliæ, lßtruMb. ècNis aîd tabd heæin¡ltêr lirl6d. including âny Íãffpoît¡tlor ËquiÞd lor ¡udl lirilü. 3lÉll þð pmldBd st $e Rll l$1'þn Bl th¡ tìç6ffi ol Ôpdå8 unlos olheNlæ tuted bf rlls Cont/6ct â.1 Furnith and ru¡nhin ad€qvÈlo mdway.ndtry 6n9ltoloc¿tioo, riChl{tHy, ¡reludiîq dg¡lÊ€,.mylor iÆlônd mltr liñff. riwrøo¡s¡nor,l¡f¡hw?y cGd¡rgâ,0¿lså ôrd éld€ ootú.

5,2 Slak€ l€tion. ch6r úõ çÉdo l@tiaß. snd providê tumend, rnduding surfsci^g$i*n næssry 5.t Tô9( b¡k6 wirh plpoâM ñlün!9. aÅ Mld ttoEgê l¿nk¡ wû! plpo rnd ffli¡gi. 5,6 Sepa.ator willr llpr ând litlings. 5.6 tçbor rnd EþlÊls lo @¡ned.nd dl¡enÉÈt mvC þnt, test {¡nk. ànd wd g¡! 4p¡r¿lor. 5.7 5.4 Drilll^Í oud, Êhem'üle, lo.t ckillrtlon mstdis¡. gnd other ¡dditlm. 5,0 ond dws oil ciEùhtino l¡€g 6.t0 Lgbor t0 lay, blry re¿ñùr. eilèrdttGF, lbbiUrß €nd lF.cjrltgols 6.11 orilllng bils, á.1? Cmtr¡¿ì n$inû t@lH¡6sãßd lool Gffil. 5,17 W¡Þ l¡n6 cre bltrøh€adr, côÉ hârolr and w¡E liñe @ro êldl€6 f requkéd. 5-14 ConvenlÌaîql çore bils, cqe stÈlÞlÉ ånd øe b€rels. ô.r5 oiãrcnd øre bsrn¡ s'fl¡ h6åd. 5.t6 Caftrl ând comnl¡¡O 9+rvlce. 6.t? Éþctr@l wlrBlinê lôtghg wkô¡, 5.tú Oìedi$sl. ølìper. or othq spe¡lal !m orjel pêlôråtíq æFþe!.

6,'t9 Gùñ 5.10 Erd6iYes ¡nd shoolir! dov¡æ!- 5,21 Fm¡l¡m l'e¡{rç, hdraul¡C ftðcþrlñg, åcìdÞjn0 snd oth€r roþlod Srylær ã.22 Équlp¡ænl fq drill len t6fñ€, ß.27 Mrd kx9lng lcN¡øs 5,24 Sldfrall dlng oefr¿ê t.2ö Wddiôg æßìe for *ldrng bôllon lcinF ol æt¡ng, gvdè 6h*,íìoat *w.lto!t ølhr.nd r[ @nrgtioî rirlì ìngbtlìôg ol Kfi tlecd equipmeñ llteqllæd. 5.26 Caling. tuling, lins, gæn, llælaa¡hñ, euldÈ.¡d lìoalsho* 6íd a3sJ¡lod oqultf,dL 6-21 Csrng sralchg.s ãfij ænbðl¡rñ. 9.28 Well h€¿al ønedFns åôd ãllèqdprmnl lo b€ Inglâlled ¡n o.mwelloron lhE FcmlJaå rff ocêln cún€çlionwilh {êiliog, amFþlion åñ opcrslÐn o, wall 519 Sp€clal or ¡dded storåge aor rud â¡d chèmb¡ls. 5.t0 C¿s¡nghêâd, API 6e/ÉÀ,lo øûrmþ úðl iho*r ld lhe blñdpovil1e6 sp*ifad in Sub0ðh!ÉÊh 4 1 sboy€. 5,31 8þwoulprèv€¡ld lsl,n9 Þácldf 8nd teltrnq 4rytæ5 9.32 Aeplâeañntot BOP rubhß, obMú ôf,d *elô.Iquhed. dtlår inilbltesl 5.3¡ C¡s¡nO lhHd Pro(ecloß ård Csho luÞrløñts 6.14 HrS taìnìn! ánd .qljF¡át ¡t å5 Equlred by hf.

Sle sgptrc !F.t.ma, 'tsery 9r 5.t6 5,3t _ thhd Edv BOP trllm snlcq. t.3e 5.t9 6.al 3,di 6,42 5,43 É.'44 6.46 5-46 5,lt 5.48 t.ae 3.50

(U S úfn\ Coù.ct -'ErM A'. Pqs 4 Fqm Þrüdled by Foms On.A.fxsk copy.lght0 2003 l¡lsarþ¡¡l A!w¡rtion ol Drillino cmfå<tdr (214) 3a0-â4?s ' FoNOúOiik øm a o 6. EOUIPI¡ENI, ¡¡IA'ERIALS ÁTIO SERVICES IO DÊ fURNISHED AY DESIôNATED PÂfi'IY:

Thê msch¡n€ry, 6qu¡pmnt. loots. Nledats, gùtptigs, l¡¡rurc¡tt, $rv1.6, sM letry li¡led s6 thr lol¡owlng nursffed il€nr, ¡Klüdlng å¡y ù'eo¡poltåthn ßquìr€d lq !€h lens unlði otFrhlss gp€dñsd. shall b€ proltd€d âl lhs ffill þ@ljlm and At ÛE ltpeos 0l lh€ pdrly ¡eæ{o ss deag¡ôl€d bt á^ X mú in lhÛ sPProtdâìô 6lum To Bc P.ovlded 9y e¡d il Tho ErP.nsÈ Ol tlofi oporÍor Conlróctor 6.t Coliá.¿Íd RurcË.,.... x 6.2 oílchqc ånd s!mP.. .--,, ,

X

6.t Fuel (lffitêd at x 6.4 Êue¡ Uôrs (l€nslh ____gUlC3úL-J x, 6,5 W¡t€r ?t qræ.l¡ciud¡rq rEqujmd F¡m¡18.. . x 6,6 Wat€r wll, iñludii! E{ulÊdFmils-..,.,. ,,.. .. 6.f WálÉ¡ l¡neô, induól^9 r€qrired æm¡b qpscity (Pêr.lg ¡osntôall. .'

6.8 l/9alersìo€os lånts -- 6.S Pctrl'lôslfi rnú Þôltlid wlt r,.-...,......,..-.....,.... ô.10 l.þor toop€rale waleÍwlldwð14 pump iRlg c(wøly). ....,,'-,-......,.,. . . . x 6.11 MôintoËnæ otvrater well. il relúÌGd..-. ., .., , x 6.12 x 6.13 x -

to. êno¡nes and ùoilft. ot nËló6 a^d ñud pùmPs ...

6.1a Mals . .. -,'-- . -. ,

6,rð 'f6trlponqtþn of ConlGctof! pmp.dy:

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N'A 6.lt

x

6.lt d.ill pipå J( 6.19 Ddlr p¡p€ probclùr rù Xdry þlnt sd €c¡ jolñl ûfdr;lf plpô rurn¡ñg insld€ of SrrJðæ Csslng o¡ rflufr.d, lot u& $h ftmal €llñf â Ol dtiìl dpê..- ,,,.,,.,..,..., t,20 Drillplpq trct*tdg lot Ksllyþlnl¡rd dr¡lldpe runolô!

I6idê ól ptateclion c¡tns. ....,...,...,,....,.,.., . ..,-....,._,...

8.2t R¿te o(Fê¡dmtþn recûdin! devÞ (epoch llæùo¡lcl.,...,.., )t

Q,22 Êxks labor fd runnìng âod 6|mllng e¡ñt (Ca¡ltg qtr¡).,.,.-.... ............,.,.. 6.23 Cêrirolær9., x 6,24 Pffir 4eln9 lógr x 6,2ð LatdM.nd!ìck!pmaa¡in€ .,.. ......- -.. 6,26 x 6.21 8.rs Crd sú6. ¡r,A E.l9 S€re 6o¡!È.. ItfA NJÀ

6.10 s¿ry¡@ t!9 86l MA 0,¡t 6-¡? irouk Hole t ttJ t 6J{ l.Jpp€r l(ol¡y Cæk... ....... .

t( e.¡5 LMr }(ellt Vaþe."..., ,.

)( 8.35 Dri[ Pipo Safory Velve- 8,3? élarcd PrÊvs¡tet., ..,.,... .-.,...,,, ., lñsldo 6,38 ld or dríving lù ændudor úp4.,...,....

o¡illin0 hole x g,3s C}ìã196, æslof bondi fü 9uulc roôdg,,.,-. ..., ,...,.,- x 6.r0 Porbblê llilel.,. ., t 6.41 TrâôhRæphl6, t â,a2 Ur*ilolþrsnof6 Shâkq {PerlC lnwn{dil 8.4t Sh.le Shokq ScrëÞ3,. , _x 6,14 Mud Cloanor.. ..., x 6.¡15 Mu.rcas Sep€rølq-..... ¡-{6 De$ôd€r, x 6-¡¡7 8.¡0 Dogåssq..-..-., -,-..,.,,,. ,,., .,,, ....., t,{o Ce¡tlu!€ ...... .-.. .. 0,50 6.sl RotstiÍg H€ad Rrbbeß ,.,.,.. . ,..... 6.62 HydmulióAdjuslâuê cho(s..., ..,,,,,. 6.5: PitVêfûm Toãli¡sr. . -... .,.

ô,õ{ Conmwiø1i6.lypô@. ,. ô.66 Forkliff. €Þâcjly . x 8.69 ClNioñ lihibjld lor fratetint dril¡strlng- x 6,57 8.58 6.¡9 6.S4

-

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(u.S OÛNû ôoñnd -'Ethlú A'. P6F 4) Fmøov¡ded b, Fm¡ On.A.Dlgk Coplrloh1 I 2003 l¡t€matton¿l Assdollon olOdlllng conrÉlaE (214t 3{0-9429 . FomsO^ADlsk-æ0

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'oe¡ ! !Jâ 0t ul Þ¡llrcrold w1 Fluuml4u¡ qn muqduoo ¡o uo$È¡pr3 eq¡ (tl u¡tc ¡t { ÞcltÞlod ¡.ÌJm t€ddÞlpu¡rl ¡q .!mt9 uoFy qlî¡lt¡v Tl!

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's uruFl^ e$ ,o ¡u3jiarr Þua t{uqe ¡r4pJrôo t ¡,ltt !Þ uJc rr ut p¡<¡¡srd rnqc uotFv sllullw s|l l¡l ,t Ì.Og UJC l' r¡l peqÞru Ht|3 ¿(Uu¡¡oddo pnb¡ 0u (,, :uo lcs 4lri¡ ! s aün¡ej¡¡ ,4 ptÄr¡oC rq¡ q 9op¡od,fi¡l ån '^{q ¡q þàrûa, pa|ft 'ñ¡nqo lunottol gql.

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a o coNTRÂCrORs SPECTAL P ROVtÊlOgS

1. conlrâctor 6hâll fumlsh iÕltial têslêd annular prsv€rllar elêrrent. lf lhs olement is damagod dus to dsglruc{ve elem6nts introduc€d lo ths mud, Etripping. or excessiy€ lesting, the Operalor agre€s to fumi6h a new elomênl.

2, Chémìcal Addltives to thê mud lor preventing orídetion of the drlll slring eñd hydrogen súllids scávêûg¡ng d¡emicelo to trest the mud of drllllng fuid as ne¿€ssâry tô remove all hac€ô of H2S gnd to conlrol oxygsn coÍosion to bs fumished by the Operâtor.

3. Opèråtor sh6ll furn¡sh ðll lâbor, €quÍpfienl and måtedâls to cleân flg åñerus6 of oll bàôe mud and/ot cômplêlion fluld.

4, Êxtra caEt ta rlg up for drilling with oll þasê mud ¡ncluding, bul nol llm¡ted to, lhå cogt of p¡t cov6r9, stsam cleaneas, drip !'ans, mud vac6 ând cleÊn¡ng materialr shall be at Operalo/e expens¿.

5. hft¡al lnspÉcl¡on of all Conlrsclof's drill plpe, d¡ill collars, kelly, kètly ioints, valv6s, ôubs ánd I{WDP ôhâll bs at Cöntmdofs exp€nse. All repâir6, rêplâc€ment3 and haul¡ng for ropairs wilf be st Contracto/s 6xpçn6s. (ths lnspec,lion will bè to T.H, Hilf, Ds1, CÉtêgory 3 ör lts €quiv€lent.)

6. Subsequent inspeclionô (including the lnspecllon al th6 6nd of lhe job) of sll drill pipe, drlll collao, k6lly, kelly Joints, valvas, subs end IIWOP shall be al tho Opgrâto/B expeñ6s. All repairs, rsplacements á0d hâullng lor repairs will be at Operelofs êxpens€. fthe ínspeclion wlll bE to T,H. H¡lt, DSl, Celêgory 3 ôr its equivâlent,)

7. Opõralorshall furnish all êcreens tor shale shakers.

8. operalor shall lurnish sll polable'¿al6r for Operalor and Conlractor psrúonnâ|.

å. Oparator, Ope¡alor'e repr€F€ntalives and Opel-ålo/s sub-conlraclors shall supporl Contrec{o/s Sølety Policies ond Procêdures in gensrå' ând in parliculer, wlll comply wllh åll Contraclois pgr€onal proleclive equipment requhÉment6,

10. Operslor will be r€spondiblê fôr ths pror'ì8lon 8nd mâ¡nlenancÉ of any site seplic systams.

I t. Conlråô,ior w¡ll prov¡de only on€ size ot mud pump ¡iners. Any addilional sizes required by OpôIs(or w¡ll bè prov¡ded by Opêrator at Operâtor's cóst.

12. All thlrd party eq0ipm6nl required lo n¡pple up/îipple down BOP equlpment will b6 provided ând pâld for by Opsr¡tor,

13, Thè lâtos contaln6d in thls Contrãct àre b€sed on the f¡g lnv€nlory attached hereto. Any modilìsgtion ol addltlofl to lhe rig ¡equegted by Opsràtôr will b6 at Operalo/c expen8Ê.

14. Qperator shall tel BOP åqu¡pm6nt al ¡nlðwal8 as spøcilìed ¡n federal, stats or locål regulålion3, API Rêcommended Praclic€ or âvery twênty-one (21) dâys whichever intêrval ìs more stríngsnt. All tosting wlll bo psdomsd by ân ¡ndep€ndent lesling company prcvlded and pald fóf by Operalor.

15. ln sll cqses whðre Conkactor'e employeas (includlng Conlråctor's direct, borrowêd, Bpeciâl or slålulory employegs) âre covered by the Louisìsnå Wôrkeis comp€nsâlion Act, La. R. S. 23:1021 et saq., Operator and Contraclor âgreè lhãl âll work and opBmt¡ons perfom€d by Contrãdor and ¡ls emplôy6ca put8uanl 10 (his sgroement are sn lnlegral pårl of and arâ essèntiel to thê âb¡l¡V ôf Op€ralor 10 generale Operato/s gþods. productg and eerv¡cea. Êurlhemore, Operalor ånd Côr¡taclof âgIèè that Operator 16 å gtalutory €mployêr of Conlractols €mployôe$ for purposes of La. R. S. 23:10€l (A) (3). Notwilhstãnding Opêrator's Etatus os a statulory employer or rpèôiâl employãr (6s defingd in La. R. S. 23:1031 (C)) ol Conlrgcrols €mployÞes, Conlraslor shall remalh pdmar¡ly rðspônslble for the paymont of Loulsians Worke/t CompensBtion benèlitg to ils èmploye6s, ând thåll not be enlilled lo seek contrlbullÖn for ány such paymenls lfom OPôrator.

16. opêrâto/, lts pärenl. subsldlary rnd afflliâted corporãtiôns, âs w6ll as ths omployo€s, offceÍs aod dlreclors of each (eollectively, "OpÊralol) is cognlzånt ofth€ Nabôrs Dlspüte R€solutlon Program and w¡shee tÕ beçome an ElsÇ,tlng Enlily, á6 dennôd ln thâl Prógram. Accordingly, Opêrqtor aíd Naborc lnduslries, lnc. CNaboß") heroby agree that Operator is sn Electing Enlity as to all Dlsputes bgtween Operalor and thÉ present and tolmer Employeês ând Appl¡cants of Nabors pursuant lo lhâ Nabor OfBpute Resolution Ptográm as it cunènlly exists and as may be amgnded from t¡m6 to limo. ln the ôvenl tho Program ie amended, Nâbor8 âgæea to prôvidè a copy of lhe amsndment(6) lo Operalor, OpêÞtor may w¡lhdrew this eleclion to part¡cìpÊle in the Pr09.âm at ãny timé by g¡v¡ng noùce of sueh wilhdrawal lo Nâbors, sûÇh revocatlon lo Þe ?tlodivo w¡lh ¡esp6çt to any clsims not yet ínstltul€d as of the datê ôf rovo6at¡on. Operatol undêrstands that ¡t 16 bound by the l€m6 of lhe Progrâm wilh respôêl ló âll D¡sputos wlth Nêbor6 omploy6ss, regardless ofrt/holh€r suctì Dispute is lolllat€d by lhe omployê€ or by Opôratôr, Op6ËlÕr end Naboß acknoulsdgê thst fhe Progrsm does not apply to dispules between Operator and Nabors ond lhal ìhe Program doos not aller lhe tems ol ány ¡ndomnifc€tiori agrBemðnt bêtwe€n them.

17 ln the event Opsråtof elêcls to drill s subslilute well il shall bo Operator's obl¡gatloh to 8dvlse Contractor ¡n writing of such changs, NofwÌthslanding Opérelor'6 lallurè to notify Conlrectôr ôl such dlångê, lhe tetms of lhís côntrad 6hall apply lo €uch substilule well âs ifsudr substitute w€ll w€re the wàll speêlfied In Paragraph 1 oflhe Contrad,

Exhibit

.ll NABORS DRTLLING USA, tP Rlg No.712 Dlerel Electrlc tand ftlg

DRAVIWORKS: Mld - Conünent u7l2 E , wlth ân lnput raung of 1,000 horsepower, Baylor 6032 Dynãmaüc bral(€'

cfown-ùmaüc and Fogter câúìeads. Dnrm ls lebus grooved for a 1 1/4" drilllng line'

PRIMARY POWER: Three caterplllar Þ399 englnes rated ât 1,215 horsepower eãdl, drlving three KATo 1030 lfl\l generators wlth å Ross Hlll SCR system.

MAST: Dreco 136' cantile /er, 136' clear helght x 21' bäse at floor. API stôtlc hook load of 571,000 lbs' V 10 lines süung.

SURçIRUCIURGl Dreco "slingshof', wlth a 22'f,oor helght and 18'clear height under the rotåry b€ams' SubÊtucture ls deslgned for a 600,000 lbs. caslng load slmufr?neous with a setbæk load of 350,000 lb6.

1"1üD PUMPS! TWo GaËne¡ Denver Pz-10 tsiplo< mud pumps rated at 1,300 horsepower each, drlven by one 1000 horsepower GE 752 motors eðdr.

MUDTANIG: Two tanlç 970 banel systêm wlth a 75 baÍel slugg¡ng compartment in the suction tânk' Mud sìFbm ls equlpped wlth stlÌring guns and clean outgates. Mud mlxlng ând 10 HP mud agitãtors'

SOLTDSCONTROLI 12 cone desllter.

2 cone desander, Two linear motlon shale shakers.

WATCR STORÂGE: One 500 barrcl tank,

FUEL SÍORAGE: One 12,000 gallon bnk.

HOOK/BTOCK: Ð 5350 Hook ånd Nauonal 545G Block, both rated at 350 tons,

stìÄvEL: cE LB ¡100. 400 toû,

ROTARY! Go27 U2".

ACCUMUIåTOR. Koomey, 180 gallon, eight stauon, wlth an elecbic powered triplex pump, two alr ope+ãted pumps, reguladng valves and e¡ght stadon remote control,

stowout one 11'x 5,000 psl, Annular, H2S Trlm, PREI'EilTERS: one 11" x 5,000 psl, Slngle ram, H2S Trlm.

One 11" x 5,000 psl, Double nm, H2S Trlm. one 3 118 x 5,000 psl, choke nnnlfold, H2S Trlm.

DRII.L P¡PË! As per con$act

DR¡LL COLI-ARS: As per ænbact

M¡SC, EQUIPMENTI Automadc drlller One alr hoist Wrellne unlt 0-7 degree ddll lndlcator 4 Pen drlll¡m recorder Lower Kelly valve upper Kelly vôlve Inslde BOP Full opening safety vålve 5 %" x ,10' Hex Kelly Vapor pþof llghting system Kelly spinner Splnnhg wrendr

a EXHIBIT TCT

o

CONTRACTORS SPECIAL PROVISIONS

l. Contra¿lôr 6hall fumlsh ¡nitlal tssled annulâr preventcr elênEnt. lf lh€ slemsnt l¡ damaged duô to d€slruct¡vs elomentB ¡nlroduced lo thð mud, stfipp¡ng, or excÊs8iv6 tosling, ìho operator aglêes io fumish a 6ew elam6nl.

2, Chemìcal Addllìves to thê mud for proventing oxidation ol the dflll stñng and lrydrogen sulfids sc6veng¡ng chemlcålâ lo tfsat the m0d of dr¡lllng luld as nacessary tô rêmov€ all traces of HrS and to conlrol oxygon coñoslon to bs fum¡shed by lh6 operâlot.

3, Opèrator sh6ll fumísh all låbor. €quiprnent and malerlâls tð clsãn rlg añer usÊ of oll Þase mud and/ol cûmpþlìon f,uid.

4, E¡lÍâ cost lo rig up lor drilllng with ofl base mud lncluding, but nol limìted to, lhè cost óf p¡t ooverg, 9ls8m cfeaners, driÞ pans, mud vacs and cl€anino mal€tials shall be at Ope¡ato¡'s expense.

õ. lr'tttial lnspect¡on ot sll Contrâctols dril¡ plpe, drill collars, kélly, k6lly ioints, valves, 6ub8 snd I-IWOP 6hâll bB at Contradols expense. All repalrs, rcplacements ãnd hâulirrg for repairÉ wlll bg ât Cont.aclol's exPon6ô. (th8 lospêôt¡on will be lo T.H, H¡ll, DS1, CåtêgÒry 3 or ltß êqulvslenl.)

6. Subsequent lnspec-llons (lôclud¡ng he lñspôcllon åt ths snd of lhc Job) ôf åll drill pipe, drlll oollars, k€lly, kelly ,ol0lE, valvo6, subs ând l.lWDP shall be st lhs Operâtols exp€nsg. All repairs, ¡Bplac€ments snd haullng for repaín wlll be at Ope¡ato/s oxpenso. [¡ho inÊpêcl¡on w¡ll bã to T,H. Hlll, DS1, Category 3 or its Equivalenl.)

7, Op€rslo¡ shåll furnish all 6cre€ns for 6hâle ¡h6kers.

8. Opéråtor $hall furn¡sh all potâblô wÂt€r for Opørator åñd Conlraclor personnel.

9. Opsratof, Operaiods rep$senúallves and Operåtois sub-conlrsclors shsll suppo{ Contraclo/s SÊloly Pol¡ôiâs and Procedur8s ln goneral and In psrticulår, wlll æmply wlth âll Conlrâctor'B porSônsl proteclivö squlpment requlñmenls, '10, Operalor w¡ll be r€sponslble for the provislon snd mâinlenanct of any s¡te sêptjc sysloms,

11, 0ontr6c,tor w¡lt provìde only ons size of mud pump llners. Any ådd¡t¡onål sizêe tequked þy Op€retôf wfl bs prov¡dgd by Op€rato. åt Operâto/3 cosl.

12. All thlrd party êquipment ¡equùed lo nippl€ up/nipple down BOP equìpment will b€ provlded and paid for by Opórâlor,

13, Thâ rates conta¡nod ln lhis Contract âre bEsed ôn lhe rlg lnventory attached herêto. Any modifcation or addltlon to the fig requested by Ope¡Êlor will bs €t Operâto/6 exp€nse-

14. Operator shall test BOP êqú¡pment åt inl€¡vål¡ as speclflad ln fed6ral, stató or locål rsgulâl¡ôns, API Recomm€nded Pr6cl¡ce or evêry twonty4ne (21) dãy6 whlÖhevár ¡ntefval ¡3 mora slríngênt. All testhtg wlll b€ pe¡lomed by ån iñdependsnt l€gling company pþvidêd 8nd Þald for by Operalor,

15. ln all cåses wh€rè Contrador's employsêg (includlng Contrâctofs d¡rect, borrowed, speciâl or slalutory employsês) a¡e covered by lhe Loulslanå WÒrke/s compsnsgtion Ac1, La. R. S' 23:1021 et seq', OPerslor ãnd ContraAor agreo lhåt all work and opomtions pgrlom€d by Conlraclor and its employss$ pufsuanl to lfifs ågrosmênt aie an intogral psrt ol ând are egsent¡al to the áb¡llv of Operalor lo ganorate Operalot'g.gqods, prôductô ând services. Furthemorê, Operator and Contraclor agr€e that Operalor is a åtâlutory omployrsr of Contrqclois employaæ lor purposeà of L6. R. S. 23:1061 (A) (3). Notwithslanding Opêratof€ 6tatus 〠a 6tåtutory omploie¡ or spèciâl àmployer (âó dolìned ¡n La. R. S. 23:1031 (C)) of Contrado/s êmploy€Ês, Contraitor stiatliemain primarily responsÌbie for thê pâym€nt o{ Louis¡ána Workeis Compenaation benells to ils èmploy€ês, ârìd shall nol be enllllgd to sðêk conlflbutlon for any such peyrñênts trom Operâtor.

18. Operâtor, ìts pårenì, subsidiary and afll¡âted corpor¿lions, ââ well aE lho employeg6, officee and dlreÇlqrs of eách (colectiúely, 'Ops¡ator) is cognizant ol tlre Nrbors D¡spute Rûlolutlon Program and wiahet lÕ bocom€ an EbctiÀg EntÌly, áá Oenneo ln'1hàt Piogram, Árcordinoly, Opårstorand Nsboo lndusltiss. lna fNabo¡e') hereby agreo ihat Opelalor is ån Elscl¡ng Entlty ao lo rll D¡Bpulss betw€ðn Oporalor ånd lho prt60nl and fofmâl E-mployeos and Apptiësnlg of NaboJs puriuant lo tho Ndboß DiBputo Rosolullon Progmm as il cuflånlly o,(lsl¡ and aó rnay be arirànded from time to timo. ln ih6 6vent lho Program is âlnênded, Nabors egrees lo provide a copy of the amendment(Ë) to Operalor. Operalor may wilhdrâw th¡s elecl¡on to psnìcipote ¡n the Plogrom Êl any timé by giv¡ng notÈe ol iúcf¡ w¡ilrdrawal to Nabols, such revocãl¡on to be 6ff96,l¡vo wilh resp6cl. lo 6ny clslms not yet ¡nsiit-uted;â ot the dâtê of mvoc¿tlon, Oper¡tgr undgßtands that ll i€ bound by tht lerms of lhs Prô0râm wílh iespoct to aI Disputes wirh Nabors omplôyoôq, tçgårdle6å olwhelher such Disputê i6 lnlllsled by lhe tmploy〠ol by õperator. Opsrâtor and Nâbore actnoøedgolhet lhe Progråm doos not €pply lo dispulos between Op€rôlof and Nabors and thal lh€ Program doos not âltea lhe lefins of any ¡ndomnilcât¡on agreement bctweên thëm.

17. Oparttois obligat¡on to advlse Contractor ln wrltl0!

ln lhe çvent Operâlo. etèõts to drill a subsl¡tuts well it shall bs olauch chenle, Notwìthstãnding Op6rator'6 fállurê to not¡ty Contreclôr ol such drengô, lhê te¡ms ôt lh¡ê Gontracl shallipply to 6uch subsstule w€ll as il such subslìtutê wêll wers lhe wôll rpêclfied ¡n Peragrâph 1 of lho Conlrad,

Exhib¡t C 0

EXHIBIT "l-G"

l{OlE: 'lhl, fm l¡¡ {¡rd uÊô d ltr¡ ol thg lom MlrÈsl ot ôa Eú o{ llE plfllðr ¡nd 1,Ê ÍÍmusöllhe fm oa !¡rlom 0t th.ml, eompubl Revlsed Apríl, 2Ct03 ¡NTERNATIONAL ASSOCIAIION OF DRILLING COI,TTRACTORS DRILLING BID PROPOSAL AND DAYWORK DRILLING CONTRACT. U.S.

TOi LP

pleasesubm¡t bìd on lhls drllljno mtractlqm fotpelqmlnolhe wqk gulllned bslw, upoß lhe leme ald lo, theæns¡deBtlon sål forlh, wlth ths undoßta¡ding thsl lf the bid ¡r a@pted by lhis lnslrumênl w¡tl @nElllute q Conkgcl betwæ¡ us Your bld should be msiled o¡ delivêred not lal6r than P M on 20

lo lhB lollot.lng ðddEss:

THIS CONTRACT CONTAINS PROVISIONS REIåT¡NG TO INDEMNITY, RELEASE OF LIABILITY, AND ALLOCATION OF RISK -

SEE PARAGRAPHS 4,9,6.3(c), 10, 12, AND'14 Thlt Contrâ¿tls mâdê and enler€d lnlo on thedale herèinaferætlodh by afd belween lhe part¡es hereln deslgn8led $'Oper¿bf€nd'Contraclôi'

OPERA'ORI PennV¡rolnlr Mc Énrrûy, LLc Add.oô6: llo vÍBt tô, sullr !000 _ f4t CONTRACTOR: NÂêôÞß net I ttrê ils¡ r p Add¡o¡s: l'ltl¡Y. O¡@! Rqd. 8ull0 !000 Houttor. T9r¡¡ ?7087 lN CONSI0ERAÎ þN 6nditio¡6 and ågræmeñts hsel¡ æntalned and th€ sp€cll'Ëlion! añd speclal provlrlgn! sol lolh ln Erhlblt 'A' s¡d Exhlblt of thÊ nuluel promls€s, 'B' âlâched her€to snd mado s part hereol (the 'Co¡Lacf), Operátor en0sges Conltsctor as ôn lndgpsndent conlretw lo drill lho hor€lngior d€slonated well o¡ w¡19 ¡n gearch oloil or gás on å Dala!¡k Be3¡9,

Fq purp@E heræf, the term'Dayworlr'or'Oqy{qlk ga¡lB'mse¡s Conlmclor shall tumlsh equlpmenl, lsbor, and pelom 6eMcEs rsheBln p.ovlded, lor arpeclned oum per day und€r lhø dkecllon, supery¡slon ånd æntrc! of Operat9r {inclls¡ve ot any €mployæ, agenl, ængultool or gubwlråclgr engaoed by Oæßtor lo dk€cl dlillino op€tatfong)- ¡l4to¡ sp¿nllñg od t Ozwotlt B€slst Contnctot shot, ba luil! psld .a lho .ppltcabla ntos ol qtyûont and s6ùø8 onfy lho oþilgaügnt and Itrbttfite' statad henli. Excopl lot âuch obttrâIons ond Í'É,hlttttos Ep.ciltcally assw¿d by Cüfr',ctot, Opaôlof shrlt bo Eololy fat ontlb¡e and ætuø* ilobtllly lor .lt conar{,uancos ol op.ñttons by bot¡t Ntitas whtta an ¿ Dayw,* 8,tsls, lncludlng ßtui¡a .nó tll o(her isk6 ot tlabll¡llos lncwßd lA or lnctdal ao such opanllons. 1. LOCATIO'{ W€ll Nåru Ead Numbex OF WELLI Ft -sotl lê-

Padی/

W6ll staro: Oklahoma ,lL To bs Þr Àmlt:

iÞ lsas€.

COI¡IMENCEilENT DATË¡ Coni€dor agræs to !æ reårdãble effo¡to10 @mrere lor lhe dñlling ol lh6 w€ll by{ào 's- .

untll the

fhe wôll(6) lball be drillsd lo â depth ol approlml€ly 3,1 Woll Dop!¡: TBA Fæ1.# þ$atloft{hhhs€Fi9¡€€Ê€r, but t¡e Conlractq shall nol be l€quirEd he.eundor lo dlll Fld rel¡(s} b€low E ruxlmun deplh of leol. unleôo Cooltaclq and Opetaþr mulually agræ lo drill to ¡ greater d€püì " Not to êxcegd cspoclty gt r¡! a! dqsf lbgd o¡ tlo rlg lownlory âtttoh€d heEln, 4, OAYWORKRATES:

Cfitrsclorshôllb€ paid ôt lhô lollowinq Íôl€9lor lhô rctk polomed hseunder" ,l.l liloblllrrtlon: O9Ê€lor gholl psy ConkgÇtori{¡ôù¡l¡.úonJe{t¡ sã mobÌ[atlon dey Þlo ol t 17'000'

Thb rum rn full.ltiqUMlho rìg i! rigg8d u-iiffiäiÌõñEliìEãGGG moy Ìo spud, li¡obll¡ætlon $hql¡ lncluds:

4.2 Þomoblll¿tlon: OpéÈlor 6hâll pay Conbactor t{€Ðb{t¡¡!ü{oe{td q a demoullz8don day rate dsr¡Fg¡ËrdryNt ¡ 17.000r perdsy, provld€d howver thst no denob¡llzallon læ ehell be p"yãblo ll lh€ Co[traçl ¡s teminstêd dse to lhe tolrl ¡o!ë ordoetruc{ion orrlãii'õããtiìjãìõiäãäÏãl¿ur !þ down end remove rlg from the flnalwsll loçation and,.if applicablÊ, move the rlo to the nearest sultable 'Èlua actual costs of trucks, cianss and permits and $4,500 for manl¡fts, light towers and strlng dõffh aorvicoÉ. -----.tåfrülîg.R¡t l0c.irtû{E{.mlhör¡glÞ|l|liss{.1ôonlr0msdr{¡iil4+þo¡{ffi¡r'!dl*rffies rgpeÉlo¡{àâl+rây esl€€lwt{ ¡1.4 Opo6tlng Dôy R.lei Fs Wrk perlofmod p€t lw€nty.fNr (2{) hour day w¡lh Flvg (5) man ddth6 opðratlf,g dey Þt€ shallb6:

D€pth lntoryr16 Froil TO Wlthour Ori¡l Plpo 0 R¡o Rèleasê ¡ 20.000- perdãy s pet day

-._ps+påV4os-{¡4)à€cr-de}4 $ pgrday t P€r dåY I Ps dey ¡ por day

Usln! oper.lor'B dr¡ll p¡ps 5 20'000" pêr dsy. -th€ oprmtlng o¡y R¡to lñclúdos . cânr¡g lop drivo. Th9 rat6 will b€o¡n when the drill¡ng unit iô r¡ggêd !p at lhe d¡llling l@tion. or poslt¡omd ovor lhe l@llm dulng marim wo*, and rcady lo ænrenæ gpetsllonr; and will

ceaso when lhe rig i! oady to b€ mov€d ollhô l@t¡on.

(u.S.Oâred'on æt-ftoe t Form prgv¡dEd Copyrighl O 2003 lntmallonal Assialion ol Drìllhg Contraç1oE 12141340-8{2s

EXHIBIT "l-D"

Raúú \Pfl.2003 ll undóf lh€ ôbovo ælum'W¡lh Ddll PlpE ôq Eles 9r€ spæ¡lled, lhe rats pel twenly"lour hour dôy *ioñ dlll plps 19 h uge ôhtìl bo tho tpplløble rato 6pælf€d ln thg @lumn 'll/ithout Drill P¡po' pluE æmpensallgn lor 6ny dr¡ll lipo aclually us€d âl lhe râl€s sp€cìlied belw. æmplt€d on lio basls of lhÊ maxlnun drill plPa in u6ô 8t aôy

tlreduing each twenty'lour hwrd¡y DR.LL prFE RA'E FER z4+rouR oAy OlBlloÍ!l or str.lghtHolo slro gfrdà unco¡Ùolhblo Dêvhlod Hol! Slre Gr.de $ NrA !ôr ll" N/A per n,

$ NrA per ñ NIA n.

¡ Nl¡d p€r fr N'A p€r ll.

Dl@üonål or uôæôfolled dêvlalêd hofe wll¡ bedsêm6d to exl6trhoodôvtâlÌon êxæeds-- d!9rces orwhen the çhange ol ¡ngle 0xæ€d8- Cagræ! p€r oor hund..d lcat.

Orlll plpô .hãìl be ænsldor€d ln use not onu when h sclual ßâ but als whll€ It lE bolng plcked up or lold dw¡ Whe¡ dr¡ll Þ¡pe ¡8 et¡ndlng h lho derrtcf, ll 8b¡ll rct be @nsidered ln uF. provld€d, hffivs, th6t If ContBclor lumlshes spæiðl sblngs of ddll pipo. drlll øllar3, and ¡andllng tmle a8 prov¡dod {or ln Exhlb[ "Æ, tho same shall

bs congldeed ln uss st all llmes whon o¡ lo@{lon or !¡l¡l releEsed by Op€Elar, ln no gyenl rhell frsql¡ong qf sn hgur be æns¡detôd l0 æmpul¡î€ the smunt ot llme drìll plp€ ¡e in 6e butsuch l¡me ghgllbesmpuled tgihe resrest hour, wllh th¡rty n¡rutes or mr6 b¿¡ng ø¡Àidèrêd a tuìlholr.nd lêss than lhlrlv nlnulos notto b€ øunted.

õ.6 R.p¡lr frm€r ln thc ev€nl ll lô næesrary lo shut down exduoi4s routlnð rls sÊdl.lng, "^rÍ::Jltll*liÞr6, """n"fl3'.fi1f_"åOlit)

@mpensstlil 6l lh€ ¡ppilebl9 ¡¡l9fo¡ 6uch shût down üne up to amaximum ol':É!El$_:_ hdrs lor E1y on€ lg reparrJoÞ. bul nol to exæd -!ÈgÞÈitL houß olsoch @npsnsallon lor any elsd¡r noôlh. lhoßatlôr. Cs¡lôclor âhall bÞ Mp€netod et â rgle ol S------lgle.ll0l- per twÊnty.l@r (24) hour day. Rollno tlo ø 3eryldno shslt lndude, bul noì be llmll€d to, cufi¡ng gnd gllttlng drill¡no l¡no, changlng pump or swlvol 6xpeôdôble3, t6llm BOP oqulpmnl, ¡ubrl€Ung lg, and

norln¡l rlû rrdlfr ddvo $î¡l¡tr nfnco. Whon lwo t1) nsd puñs oÉ rñulrud lo br úod rlmulþlterlv. tho llm! ¡æol ch¡Mlnr crmnd¡blo flño orttl rhôll I

oóFofllie Oæ l a.6 sta¡dby nN F¡to; ¡-¿___-___-_- p.¡h€ily.fN,(?4) dry Sbndby 0m ?h¡ll bÇ donrEd lo llrcludo !N wlFtr lho ¡g lr shul dM sltt$U0h ln cs¡fnEs I

to bs0ln or¡osumgoæcllons bul Conlrdclor lr w¡ltl¡g on ordeß otOperÊtor or or malodrß, $Nlæs or oth6rit€mr lo b€ tumlghed by Opôralo¿

4.7 Dllllng Flúld Ratog: Whm drlll¡no Íulds ol s type and chs.scterì01¡c lha( inqease$ Contrâclq's cosl of pelormanæ hgrcwd€r, l¡dudh8, but nol llfllted to, qil.bæed nud orpotasôirm ciloride, sre in ü6e, OpeElorshall pãy Conl¡eclorin áddition lo $Ê opoÉt¡no rale 8pæifod above:

(el t-10-- pcr ffi pàr loy fs cô¡büchl¡ rlg€ltô p€r6on¡â1. I (bl l_!ll-- p€. doy odditlo¡lr opor6ling r¡tçi end I (c) Cøl sl åll lsbor. mlË¡rl Ëñd ewi69 plur _Jbdt0$llggrliS[I_ hours oFrall.€ rale b claen rlg ano rolrted equlpm€nl I ot tn" o*tdnd n.a ao*o *40u. *.., r-tTn ay tor any æôunuous fE iod lhot nomst opemtlon, ,. ru"p"no"o o, *nnot t" i É¡r¡ed on dle to ændlllon8 ol Foræ Majeure as dofûed in PaEgr6ph 17 heEol ¡t ls. however, ùndeGtood thst rübject lo Subp¿ragEph 9.3 bôld, Op€rator €ñ rcìeôso lha d9lñ ÊødaÉ with Opèrâlo.'3 right to diêctôtoppâgê olthe rcrk,9f€ctlve when conditione wfll lsmlt the rig lo bo rcved fiom th. loc.lbn.

4.9 Ralmbunable Co¡l¡: Ope€to¡ lhEll reimb!ße tontr¿clor lor lh. @slr of mâl9riå|, oqoipre¡|, work gr r8rylæe whlçh are Ia b€ fumlrhed by Operalry os provided for h6rê¡n brt whlch for ønvsnienæ ars rdually fumßhed by Confrclor 9t Opgrstols Gqu€91, pllg p€@nt lor suc}r æðt ol handllng. Wârr, I agt.eñona lho Conbdclor lun¡shos ot aohconañclt lot codaln El OpoÉlar's aeqesa and wllh Canl'ñclot'6 tloñs or sovlces vñlclt Opñlo. ls roqukod hq.ln ---:!!99Àt!!L ,o !ÆvUl lot putgæas ol tha lndomn¡ly tnd ?ÞÍ@s€ pßøcfors o( ahts Conuaal, sëld ttems gr serylcæ ehall ba deÛilad lo bo Opffilo. ¡uñlrhú tloms g( tarylc.', Any tubcûlraclo6 so hlred âhall ba dwod ,o bo Opañtols coîtøctor, and Opsnlo. Eha¡l noa ba relhvød ol tty o¡ ¡16 ilabilnlF h conîocllon lhercwlth, Nof¡*/lh.ltnd¡ng lho ¡ontalng, Coilncao. shal, ôol bo oblgaó lo putclràso any lløms on bêhaí ol Oponlù. I

4,10 RgvlBlon ln Rrtsl lho r.ls¡ and/or p¡ymnt! h€Ein !6t forih duå lo Co¡lraclor ftom OpeÞtor shãll bo rov¡6od lq rellæt th6 rtrrngô ln æils ll lho sl3 ot åny

o! lhe llðms hère¡nEller lllled shall vary by morå th€n ðrö l0l o€Þnt ltom lh€ costs tlFEof on the dale ol thls Cof,tract or þy lho s¡re pø€nl slter he dåt€ ot I rny.ovlslon puFus¡t to thl! Subps60râph:

Labor æ5ts, lnclud¡ng all bôn€l¡ts, of Cont€c1or'6 perôøn€lì ConfgdoiE @sl gf insuEnæ pÞmlumg; Cgnkeclor's æ91 qf fuol, inc¡udlño â¡l l8x€s and fæq the ærl por gâllo¡rMof b€ing ¡-_.j¡!lA__; Opåntor lhôll povlde gll tuol. Contaclo/B ó.t oløl€rìng, wh€n gppllÉblo;

Contraçlor tg lße06è grdecÞ6æ lhe number qf Conlóclgr'g pepnne';

þl{Q ll th€ra lâ âny chango in legìslatlon or rÊgulatlons !n lh6 a/êa ¡n rc*¡ng or olh6r !¡loroæ€n. unusual event thgt alters Conl6lor'8 Ínanc¡al bu¡d9n-

6. IIME OF PAYI/IENI Paymônl lSduã by Operalor to Conl6ctor¿s follows:

6,1 Paynflt lor mblllzallon. d,ilì¡.lg snd other work porlormôd et ¡pp¡l€ble €lss, snd åll other ûpplloble chÉrges shâll be dûs, upon prê86n1ållon of lîvokê th€r€lor, lpff @rpl6tlgn o¡mobll¡¿ôl¡on, demobiliral¡on, rio Êleelo or at thè and ol lhe mn$ in witich sucù work was pôlormd of olher drargrs qrô lndrôd, wlìlchevor lhall frrt oqi All lnvolæs mc/ b9 mslled lo Operator rt {ho gddrals hrßlnôbovo 6hiln, unleôr Op6r¡lords6 h6ßby doslgnatê thrt suc¡ Invol6s shdllb€ mólled ñ ,-lJ*

6,2 Dl.puled hvglco. !¡d Llt Pryhônt OpGEtor ôhqll pay åll lnvolæs sthin ______lå14¿lìt9L dãys sns¡ rc6¡pt ox6pt thal lf Olgråtor dllpul€! rô ¡nvolæ o. any pad ther€ol Opgralor ghgll, Mthh lilleen days åfier aeælpt oÍ lhg invo¡æ, noti,y Conl&lor ot lhe itsm dleputed, speclMng the rêesgn therðlql and payrent ol lhe d¡spçled llÊm my be wil¡held untll sãltlemênt ol thÉ disput€, but tlrely psymonl shall b€ m8de ol a¡y undþpuled portlon. Any gums (including amout6 ulllmately pald wjlh respeol t0 ¿ dlsput€d Involæ) nol p8ld wilhl¡ l¡e above Epeclfied dsys shåll berr lnterest sl lhe rrte 0f . . I li2 _ perenl or lhs rux¡mum lsgsl rele. whichever is les6, por nùlh fron the due dat€ unlil pald, ¡f OpeEtor does not pãy und¡sputed ltemg within llE sbov€ staled llne. Conl¡âctor may sosperd operstions or temlnsle lhlr Conltôcl âs Bp€clñ€d undâr Sobp¿ragraph6.3,

6, TERM:

6.1 Ountlon ot Canlöct: Th¡r ConlÉcl !h6ll Eruln ¡n tull lore and elocl úntìl ddlling òp€ratìfr¡ arc @mplot€d on th6 wôll o*êtl6 spodlied ln PôrEg¡dph I above,{Ê10É{€m€l:-rsmmnc¡ng on the dato specìf åd in P¡raor¿ph 2 above,

8.2 EJdmaloãd-fo.Ðlopæto¡flt €¡lsnd{a lrm{fiùbco¡lndJc-.".....-..-"...--..'...-...-$¡{0t fi.loq p{¡od o¡-

6.9 Er.ly lemln.lloni ol a /c

b

(a) By Etller PrÉy: e¡thÈr p¿rty may l€mi¡Dte thls Co.(Þcl whê¡ tol¡l loss d dèslruciioñ of lhe rl0, or Ê mjor breoÌdom wlth

¡ndofn¡le Ep¡h llme nêæg3¡lale stopping oporåtlons hereundst

(u.& æretk CØkd - Pqo 2) Fom pþvided by roms on{.Dlok /-.

Copy.lght O 2003 lnlsrnal¡onal A¡ggclallo. ot Orllling ContÞdo6 (2r4) 340.e420, Fmso"no** (*l¡$Ð

R?irrë ApN,2&3 wilh r6pad {o tho deplh to bô ddlled, Op€tålor 3hôll hgve lh¡ rloht to dlt6l lhe sloppôÛê of lho lrrÌ Ay Oporôtoí f¡olwithltô¡dtôO thB provlrtons of Parrgñph A

erk ¡o be polorÊd by C6û¡c1q healndq 9t sny U@ pdor kt rcæhl^0 lhè ap&lñGd d€pth, lnd .v.n lhouÍh Cdlrsdd h9¡ m.do rc dedt h¿NndÊL ln luch Evgnl

Oþeßtd rhall n¡ftilre Conlt*tor * st fsth h Sub0sngrâph 9.4 ¡lræl (cl By con ffi: lto¡rìhd¿rldi¡|0 th¿ provtthm of Pår¡gtsph a wtl¡ ß.pðd to $e eplh lo b€ dr¡lled, in lhô .vfrt op€€H ihrll b@ma ¡^rohrnt d bo

gdJudixtsd . bankrupl, orft6, by my ol p€tlïon or ¡¡.w, a dÞbloCr pôlÌlion q olh6r pleadiÍg ækhg adjuilm¡l ot OPeElo/s dBbts. uôdü sny bðnl(tupæl ol dsblol,6

tell€l jow n@ or hlrolltsr pmslllng, or tl sny 3udl bo flêd ¡gal¡61opcrãtor, ø in e¡o a @lvfi k åppolnled ol OP€r¿lds OPomþfs properly' 0rôny pûrl lh6æf, d Opsålo/3 ?lakr bô plõcad ln tho ho¡dr ol a Orodl{odg Comnlttæ, q, tolldln! thrs h/!iÈr3 d¡y! prlfi wllnen rcìle to OP€rålor f OPsfatd ¡toó3 ¡ol pây CfftlÐc1or

wit¡in lhe tiñâ spgcifiod l^ Subp.Bgraph 5 2 aì uñdt¡p[rted lt6me d4 and ryjìo, Cshsclor mry. ¡l iF optio¡, (1¡ olect t0lmìMÌe fulher pslormans at 8ny þrt undôr

lhÍs Cqtrad sñd CølredotÉ rjoht lo wrþô¡sltn âhaìl bð $ $t fqlh ln Subp¿EOEph 6.4 heßd. q (2) tus!€rìd op€€l¡tjnÉ Mt¡l p¡rmt l¡ rud€ bt OtoQlq in whltt a6ta æntdned ln Subpsrsgnph (.6 rhail rpply u¡ll p3ymnt i9 mds by Op€r¿for 8¡d opqatron! âro l6!md ,, rddllot lo Coîl¡araol/9 dghlE cwnt lfté ståndB t¡m to cAp.Dd opo6{oÍs or a.ñtÃüt ,ay'¡omañco un<ht thlA PañVtph, Opanlot hø,êby oxpülry ¡gñ.s ao prcfac a, alalÇnat .ñd lndentty Conl¡tclor (M ond ûg¿tnst on, ct lnê, daûands adó câlsaa o( tcilü, tælrdtnt tlt cosL ot dalantø,ln l.vor ol Apdalot, Opomtor's cevert(/oE, 6ùlß.È lnd lÐlna offi6'

q

.îyalherp¿rll6'fl'tñgol'lollny.'lt'llnï.oûmlÍûflþorolugtrlloa,cl¡y'¡a|nadtir¡y|âsø.talñoú¿øræmùto.olhelíg.ffièelwtllêù,nâyb.Ûllqt.d ôy ¡ærr sßpmro¿ ot opanÛõnÊ or astû¡ñHon al polo.maicâ hffiundar.

6,.1 E.rtrlcmllnruon Compen¡8tlþni (¡) prtor lo Cmmrnccmnt: lñ liô aml OpoElor (ardinrtG tllr Cdlr¡cl priú lq æm¡€iælMt gl opo€Ùmi herN¡dêr, Opà8tqt ¡hsll p€Y Contoclq ¡s

t¡quidÂled drmags lnd rot ¡s a p.nElty esn{qesf{o{he€¡enlby{¡æ€þ{slbÞsãg€pM.6}{d ð¡díod€t:r 4ryo ü I lunp ¡um ol i------l!0,090-.

{bl Frlor to Sp{ddhgl Ísuch tEmln¡ljm feß sltêl øñmnøel of oplra¡oN bll pr¡sto lh€ spldding of thâ wôll, Op¿.alorshgllpayto ConlE¿lot lhe!!m 0l the foÍryi¡g (1) â[ éxp€ßo6 reõôwbly ¿ml næar¡ty tne.rgd ond to b. lrutred ry Conlâcts by Éâ30tr ol lhE Côntrácl a¡d ry mse¡ ol h. F4.fi6tÛG tefüf,Elþn ol ttÉ md(, tñtrd¡no thó sxp€¡sE ol d¡itfng q odNr qw ffin¡b€Ë ånd rupÞrulCo¡ d¡ww Bsllnêd fo lhê rþ; {2} len perænl lt0%) ol lrls âMnt ol ¡wh m¡rùunsbþ €rpens8i snd {3) ¿ sum slúlålrd at lh¡ sl¡ndby tiffi nte l{ 6ll t¡re lrm lhs ddlè lpon uh¡ó co¡lrôd$ mffi6 Êíry ôp'ml¡N her€u¡d'r ddíl þ luch dgtg

sub.oqudt lo thâ dala of (gñ¡m{lx aS illt ¿ídd Ofitraçlor roa6on¡blê tim lo diænlle ¡ts rig arÉ eqllpñrt{sid{tdrà(rud'ìt$ir46lll¡åC{li lq'€{erH+ru thôn m¡ret+ç.Jor.q,p€r¡c4a|.l¡ffi@-$rð Fffi Ll.iff-¡r¡€h¡a{ó-Sf.*m$éryf$bqr*oõ-¡hóffi ed ollteaeæ

lcl Sqb¡oq6nt ta rguddlñ!: lf lKi lomlmlto0 @B åflq lhq opuddì0g ol lhe rell. Opôralor $hell påy Cqùet* (1) lhe ,mnt þr 6¡ ¡p9lktus råle! ¡.ú 8fl othd chár0a rnd olmbuÎrffinb dw lo Ctri¡.dq ùül ¡n no own{ ôhãll sudì tum, exc&r6iYÞ of re¡nbulwntô due, be le6¡ lban wvld haß Men rar¡sd lof 3ev¿n Itl dåy! åt lh. spdi.ábþ El. a/vitrul OrillPipo" ¡nd lhs d¿llrl ¡llìMÌ !Q l0r dnll P{po q3ed in aødrM v,ih üE Sbae I ratqs; or (Zl at lhs étedtü ot C6¡6do. Bnd ln lþu ot lh€ loBgolng, Op€Èlor shåll Þäy Conlndq tof sll spen*g l?¡3onâbly Énd l@sgrily hdtrCd ând lo belnculodbyfeædol{h¡rcøt¡¡ç1andbyÉEsnÓt6&hFomãtUfôlúmlnatimplU3,€qcõd ¡¡-1s+,lsñ-.r-rrm-&¡¡gs¡¡rit¡{tsJða{+a#C-uru.-OFñto.{19ù-pÐf+0dril¡û¡{¡rJd.rl¡*tolâHtq6É{th-F€ñô-$.þ{¡-nd+¡ß{qF{ee!ú'l

7, CASING PRQGRAiI

opors(Òf sh¡il haw {h6 rjcht !o dos¡gnsls t¡G poinb sl which e¡lng will bü ßt and l¡ô m[nnor ol ]otung, cffiolìng and tæÙng. opffÊ(or mây mdlty lhg ær¡ng prcgram, tlmvsr. ànt 6uch rudlfiøtlon Whìch mtori0lty lma¡S Cmtßctô/s huórd3 or úsl¡ øn mly b6 mdd by @luâl æn¡ml ol OpG6tq snd Cmlr.clor a¡d ûpon ãgr6sm6nt d lo üì€ ¡driltþGl 4mpoMÛo¡ þ ba ptld ContBçÌtr.s . m!últ liorót i. DRILLING IIETIIÓOs ÀilD ÞRÄÇfICE8:

E.1 Co¡{tsclq shAil rolnt¡¡n Ffi Ønl¡ol eq!¡pmt ìo oood 6diUs at â[ Tile8 snd shsll u3s .ll r€!$mbþ æâos lo pr¡Yônt lnd ølrOl lireð Ênd b¡Wut¡ and

lo proteÇl the hoþ, 8.2 lorm hs@f, and at opoßto/6 6sl. rl lll tlm$ dutiñg lho dflllng of th¿ Mll, opefalq shsll havs lh€ rlght to ffiltol tlrc ñud progrum'

Subjôct to thà

fuld nurl br ol a typê qnd håvs chaEd6risl¡6 âñd b€ mgl0lâ)óed by Conlaclü ¡n aNrde¡æ wih th€ speciñ@tion6 chM ¡n €xhlb$ "tr.

End the d¡illing ô.3 Eoç¡ psrty hsrelO ggtsr to ðñp¡y wttl 9ll lgs. ruþs. ând regul¿lìdN ol a¡y led¿ß|. 8þþ q lml oov€lñmolel 3utÌuity vút¡sÌt 9Ë w ff @y b.qÉ appliæde lo tìrt Þ.rt/r opersÜons ser€d by ü årß¡û! sl ot lh€ podomn$ ot lhli Convact Wher ßqulGd ry k[ üe t0rñ6 oI Elóllblt "8" rn8[ appty fo |lliE Conlret. lô lhe eËtrl sny pov¡stoo ot th¡ô Co{trôcl i3 lntilstfit with or @nfâry lo 9ny opplhãUê lêd¡ml stale q bcsl hw, ßþ q .ogulelþn,

$kl proviston ôhail b€ dæftôd to be ¡ìod¡fâd to lhe €¡1srt Gqukd to Çoôply sith takj law, ruþ s rêOul¿tion, and rr so modiñod æid P¡qisls rnd liìr Co¡tfac! rhål¡6ntinué ín tull toré Ênd llfæL 8,4 Cdk¡clÞt ¡halt kæp 6ñd turnlsh to Op€Þtot an E4Þte rF¡d Of tho wr* porlomd ånd f(matim! dtill€d o. lho lÀDÕ'APl Oâ¡ly D!¡lllng Reporl Form

or olhêr fom amplablê lo Oporåtor. A logdr 6pY of eh ldm slÉll bè furôl¡hrd hy Carhctd to Op€råtq

0,¡ f rôq6t6d by Opa¿ttr, Conùador rhail tum¡lh Op€rdtq rû . 8py ol dellvo.t l¡¡:têls Mino ary ßlslal ol guptli€6 pûldrd ry 0p!0ls ðnd

@rved by Cotfâdfr, 9, INGRESS' EtRESg, AND LOCATIONT

opofôtor hgæby a9Él0nô lc c4nlractq alt ûe€sry dqhts of hgr€É6 ånd eore$ wilh r€gpêcl lo the râd on whlcb lhå ftll t9 to be lHtod fof lhg p€florman€ by ConlEclr ol s[ trrt contlmptatcd by thl! çonü¡c1. Should CmlrÊclor be dgf,ied ûæ ¡6. lo lh€ ¡oc¡lion fq ¡e¡q rct rt@¡ablt wilhh çonltælo/B srìy

Mlrd. a¡y üm tNt bt Cmlr¡çlq ss s Gslt ol ruct de0lsl lhdll b€ !¡kt lû si tho sl¡rdby tire clo. Ope€lor ao.s El ¡ll l¡ffi to ñahlrln thê .ogd a¡d lpqlion lr swi a cfidilJø b¡t wil¡ sltq træ ffis rnd ñoymñt lp End l@ llE dillin0 sìte i¡ sf, o¡din¡rly egu¡ppod hþhuy typ€ vo¡icle. ll Conlrádol 15 lèquilsd

to ù$ buildokß. kactoG, aour.whô€l driE vehlclêl Or any other $€qëli¡€d ldn.poftstlü Gquipmen( lor th€ mvffit ot fes$ry psrsôóæl mcùl0r¡y, d eqù¡pmnl ovor a@¡s .€dB or on th€ ddtl¡ng lmùon, opsråtor shsll tutnìsh drê 3.ffi ðl ¡ls gxpé¡þ ånd wlhoul @l lo Conlrqctor. tho â¿lsql ærl ol ripåiæ loanytrañ¡P9rt6lþnequ¡prn.otlufn¡shedÞyconlfaclglor¡lSpelsnn6ldåm¡godåsêÈgullollmÞ.op€rly@¡nb|ûêdseslo¿d'dlülføwillb€chl.ged gnd f6bted to oæ.gtø. oædlq shall e¡isuæ G@l6ctø lof ðil ômunl€ fea!9mbt qp€nded by cúkrÒlôr fd repôlrÊ andld ætñlø€m¡t ol rødô, brldgþ! or s¡d¡t¡r foc¡litirs (pubtþ rnd pñvrtô) reqqt€d a9 â dkæt resun of I ng mF ¡muånt to pô¡füronæ tEßunder. Op.Elø lh¡ll bB ßrpo¡6¡bls lq ãny @ls ssod¡trõ

úìth l€velieg lh€ lio b€re gl l€lion ættlhg 10. 60uNo LocalloN:

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lc, ,¡¡ üÉ æt ¡ ú|fd pr4y çørt/ß e æt tr ortôÊrot *rt sh Évtb h púttfþr q wãnhdeî ld hllßll ethq Cqt c'lot t WØ, lb. úrm c¡ærl p¡|1|, fr psrbrû¡,rg &rt, G ,r€rd fo ôo lßly l¡ttu, úrE ßrpøJri¡fry lpdor rrdl ôr coß!ÂC.¡Þd, s ô{ûtr| Cflù¡clbr gú OPqdú, lo h lt w 4 lî ga pttty for riìffi dn fint w pêtlor¡fd he pe¿oona.t tho ffi úd ttl ot iú oþdots agç,c{àg ptfl6lÈ!\ .ttldr*, ,o.h.frtry úd Mú@ ol ß?oElbfl¿y tñd lt.þllfiy, Es tot lo.rh ln la) ðnd (b) .bov., thtll ba .Fælllcelly .pqllad, 1.J2Coßia@t$OM96;Slqloclfo,rdr'lttoúallæl!ñg¡fçptovtshn o¡irt,C4rúwltogdúngúßNyfrq'l,rgngüúùllgaltoÉotlh.ptdrü!nl!* ot¡04r, n¡ó¡¡f ød hddrnlil dgttt.t d o/¡d4'dwoltÉ ltnq úcn pattysrr{rd íf úrË ù3 üpoÂsôra lq ud ltold lEn¡,r'4s ú.t lldanity llþ a'ha. fqty lnû cnd 4etttt lþ oñ epæb4 l'rdrwt ø cqr¿q¡e¡tþ, ódgËq ryrd d¡ pr&s agR dlar lpaa¡d, ttdttÉt d cútaqiralllil düFg6 sttd bc ús.trod lo lt{Ardo, *lirold &/*¡lþt\thtlúþwtng:lo$o!pmnq,iww;qt üdq¡môë.fioglñ$bt*røktdlÞloât;læsîNddayhPod¡¡cdor,¡t¡rroløúø¿!P(odR tdslþtd; let3 þl v daky tr drlilag v opcadng lgñrs, càç( of q b$ ol ñ d pñpatly, åqdpiffi¿ rulirÈ¡i qd svtrB,l¡dudng wtútoúltttt¡don tl'@ ptwk:ld by srl'âctg€ ør¡ôcøÈdctú of dcy,lq I bygútd !rtlæ. Opn¡ot Atallat rt úrts bo Grpølròto lot údhgld hrñfß* aîd lt dsñl|y øûñClrtrand 6¡¡1rp¡gt' cøtÐdo¡¡ trd lt¿ùcg¡træfrrt oI ãny øg aM ql egüûJr'..¡¡ cÀrúc, dÉ,rtrd$ r¡d ù8ça 9l eçíao ol çray ,lnd gú lÀdxlt ln coñâ6üø¡ vtßh sfih sryil, ,¡dræl w@nsoqs|ihrd¡trþ!€s¡rilbôdôy Op€.do/{@M8{ffi!ffi, cors€, furno.¡, fr¡msq pillnF údJaùrt M !L13 tndøñLy Obtlg.tloñ¡ Excopt ss olhoÚtô. qpæsq llûilsd h thls Conln f. ¡l ts ah. t¡íøl oî pzrll@ h.relo th¿l eÍl Flaßr, lndøñûttí oillgtalo¡t ,nd/o. lhbttuæ .ssungd by t{ch p¿dl.s uÌdarLñt ol llllê Cotút.c1, ,õcludlng, dlhoua llm¡ltllon, gqbryßgøpht 1,9 êød ð,3(ol, PàñgÈPhs 10 t¡.t 14 ënd S4û¡âËgnpâr 11,, ¡hrough 1112 hot@|, b. vllho,tt t!ñn.ûd *tthöttl þgaú lo lh! câlso ot 6â6é aho@l' ¡ncttdlqg, bul nel lhnftod ao, pþ.xlst¡ng coqd¡looq dtteêt ot tutn ol p/6ott6æ o. a4utpmanl, .kht li.bìIly, @g!¡rtary þt stslßory il'bll¡ly, peducla tlabillty, b@c¡t ô¡ tatüaîþUan øt wñ.rly (üpÆ ù oøld*+ra) ,ny thsy d loy't M1 ot @tþtc7 lstt\ tha n gflgúd ôt úy dtgil q crtmdfü or knplt6.t¡, bñch ø, dtry {*hünd út!Éúy, cqrùactøl tDúE d.rr ol wlúdtr ¡ ßh ttgltge&ê ta solq lotût q ffiwrsl út., øßstlø q gß4 ot uy øtty ù pulls, ø¡tldåtg øo p¿tt rc.¡hg ütr ôüdt orút 4¡t¡aq tndænff ütffipføolffittity,útyoa*twy oth!Ð,hÀCty.7rÉt¡rdmrt&¡êq, qd,{|.tF$tú.twlfilqoêdþl,lÁry*Írvdûd¡yaÀd Pâ!ß,r.'sþØûrÚtr pbyr¡Jofi ot guôp.ðrñ pho L9 ùd 63 8d ht ø?4às tO, 12 M.f il tfrel hre to lhe bøúl ot Erch ¡radlor, (hcl, aùvo¡tu,ú6, cùtúa6, lolnl offiffi, ahill pt.ù\ hotdtog and âlllilrted coñpâ41ç3 añd lh. ofßcaß, dtñto¡s. tloc*tloldsft, parlnt!¡ mantçFtx' ßPt.sønt¿llvot, wqloyðqt coâtullãoat, tganu) somûla rnd tniurcrc ol qch, E cop(.t o¡hev¡sa Frcrldêd hdatn, tuch tndañn¡llcatloî rad ôtt!ñpl¡ont gl l.ûllry 6hàil not bt denad ao c@lg any ilghtt L tna'[mntl!..ilon ln .¡y paßoa gt Øttly ¡ot ¿ ptriy ao lhtô Conlncl e¡lhr as ô lhttd tr,fty bØ.lttlary ot by rqsan ol.ny tgmñ.Dl o[ IadwilÙ b.awf, oôo ol lha pafl¡ct hrclo .nd .dothê. ÞÒßon ú eiltly ûol , Fttty ao lhlî Caqkic| 16. AUÞrÎ lf åny paymnt povj&d lbr hergorúd t5 mdÉ ø lhe bãeh ol csttâctoas @s13, opcalo. !l¡.ll hsvê thé r¡ght lo âúdil conlrscloi¡ booka 9nd lÞød8 ,sloüng lo such æ!lg. CoDlEdor agreos tÓ mtnlâin ôuch books ¡nd r6@rd! lor a p€riod oi two (2) yaåÈ fw l¡a dalo ¡uch @tç wß lnwrod sîd to mkq suû bæk8 and rmrdô r€ád¡ly available to Opêrslor ¿t å¡y rô€ffiablgllm d tims whhin lh€ p€riôd.

tg, t'¡owAtvER ÉxcEPTtNwRlÍñs It la tuw unde¡ôlood r¡d ogËd lhåt mo ol thô roqu¡m€^l! of lhls Conì.æl aháll be æ¡dered ri wa¡d bf elthsr p.rty unþs l¡€ sm h do¡e h

wl¡m, ,ôd $m only by tha pô@ß e¡ec¡tiñg l¡¡s c6lßcl q ölhd duly ¡uthodEd eoadl q f€p¡s¡onhliÉ ot s8 pldy. I7. FOÊCEMAJÉURE €xept es provbd tn thts PårôOrâph l? and ellhNr FFjvdlc4 to the risk ot lo9s, lel€aB6 €nd lndemlt obll$tþnr undÞr th¡s CoÍtráû|, €adl psny to th¡3 CoûÙ8ot ¡h6ll bo rxcuùed lroñ añply¡ng úlh lh€ loro of ül! Conl¡âcl ercpl for lhe pâyrcñl ot Mlés v'lÉô due, il 6nd lq Ð lo¡g as 6uch æmp¡ia@ lr hlnd6rud gr provetled bt t Fo@ MðiflÈ Ev6nt Ar !Éod ¡n lhls OMlraçt, 'Fqæ ¡¡âþurè Ewnf rcþd€s: æ19 ôt 6od. âdion of th6 Meob. Éro (dqd.rcd s und€d¡ñ'd).

l.ôußlbn, wdulh, rêlæiloÈ ù qvil slrÍ16, piEcr, dvl¡ w¡. d noéûl€ adjq. terui.l ælr, a¡ol¡, ttrik6. d¡Lraæ¡ wlû rcrkfrn, t6l5 olpublb qmnið, hd.nl d !tát. hÉ, rutr¡. logllatioôs dispo¡ittg d üdt8 ot.ny go€mmnEl aulhditì6s håv¡ôg þ.1¡dklþû ¡r lhe p.etilaor q ol añy olhl 0@p, oroanlãtjon or hlml affìaüon f*tolhË o¡ not tqmôlt rtr!f,tì¡.d ss . goHmsnt), ¡nablilty !ó pffiurg @lari!|, equlp@¡|, fÆl or næHry hbor ln ÛP open nåfksl aole €nd unqsd tabgr ar mìerlal. equlprc¡t I tu6t rhortags¡. !r sny olhât øúsêa (erctt ñ¡ånclrl) beilnd the control ol eithsr plrty N€¡lhdr Opoølor no¡ Contracio. ôhêll bs Équlrêd

¡gaingt ib wtlt ig ¡dJust any tåbq ry llrfl¡lsr d¡Bpuhs êx@il in aúfttrnæ t|lh sppllcsb{e hw. tn lhÉ sveñl that elt¡tr party ltotelo ls re¡deßd untble. tholÌy or ln p!rt, by sny ot {tt@ eB66 to ùl lß obtigetih unds lhic Cqtøct. it ¡r ¿C.sd lh3l sd psrq ¡h![ CNo notls ¡d de Þll3 of Êq6 Májsu.s ln wiü¡O lo ths o(h€. p8.ty ås €rry p.@p!y og pqgsi!þ dier lß Éur6M ln luch €æs, th€ obll9al69 ol lhe pÊr1y glvtro lhe ¡ûllcê lhãll be 6uspeñdcd durim lh€ ænlinloffi oa ãny ¡î8ul¡ty s 6uæd æp{ lhat Operalor sháll be obli{¡€lod 1o pey lo Conlrgclar thg Fgre Mêleur€ R¡l€ prcvldod fq i¡ subplrêorðph 4.¡ åbove 18. GOVËRNINGLAW:

lhl8 Cûtret lhill bô coî!ù\þd, gowñed, hbrÈEt.ó, iltu r¡d rnd llügrbd, .nd ü[ nlrtlon¡ Þdrun t s pttdÇ d&tlnoú In t6otdrna4 Y.lOl the lM

fus Þryrède-pry5) Fom mv¡ded byFæ On'A.Dl3k Cop}fighl O 2OO3 lnlenrbnsl A6!æielìon ol O,illìng CMlrãcloÉ !2r4)340-g4zs. Fmsoúoist@m, OOaF)

N

r¡. tr¿FoRlra'tl0NcoNFt0EilIlaL:

Upor si(.t $q&åt by Ope€tq. hlqdlìoq oblrinod by Ca¡tÞclor in llÊ æôdrct of dtlllho opeclio.s on thlr wll, ¡ôoludln4, bul not lld¡{.d b. @¡'

lorullons ponôtr¿l€d, the rqgulls of ørlng, t¡slìrg rnd sûNsylñg, ôhtìl b9 øn6¡d€Ied ænldêntlBl ¡¡d sh¡ll rcl bê d¡volged by Cfit¡actq or [. !rîploy@, tq

ary per$, fm. or dpomüon other th¿n opèr¡lol¡ d€s¡gÉled rop{6snlåfvÔ3. 20. suacoNtRAcTS:

Ëitñ.r perty ruy eñptoy gl¡er eßlncþß lq p€rlom sûy af ttE ops6[mà or snls! lo þ€ ptttâd q Þeûræd Ð ¡t rcrd¡ng 10 Erftlblt 'A'.

ll th¡i C6thd is ptâæd ¡n tho ha.d! ol â¡ aildnoy lor cdtoctÌon ol rny !uñ d6 hððurdot. q 8u¡l ¡! b¡ooûhl on æíts, ol tuß dÙ6 lEr.unde¡ (E ælþc{êd

¡hrough bô0kruplcy 0r 9óI.!tþr prwcdirÍò, thqr {hó pEvaillng püty ¡h¡ll bc enùtlcd to rwvrt rgEsnsblQ altonet/o læ9 0nd ætlg

22. ôLAltlS^ilÞLl€lt$l qllqir m lle¡ Ël Contñdot a!@ to psy sl vet¡d riälm3 ftr lõbo¡. mþr¡å|, sory{oss. and 3uppl¡¡¡ lo Þe turolrhod by ColBclor h¿@ndsr, gnd sOM to iwh 0ì¡d Pafþs lo b€ lråd upon Úc leeæ' ltc H¡l, s oltrer propeûy olüE oFenlq q t¡ô hld lpa¡ bôhh uld wtl lr lo6lêd' 21. A8s|GI{MENtr

Frty my BÊglgn thls Cøttod wilhoul llG priot w.ttton øFnl ol lhe othÊf, ând prúmpt rcÙæ ol ¡ñy iúdl inlrnt lo assign 3ñ¡ll N€ither ba givsn ìô lhê

oû\or pårt. l¡ lh6 svoût of ôrch asôlg¡nmt. ttre Ê¡s¡g¡¡¡¡ p6tty $all r6mr,n l¡6Uê lo lhq ath€r p¡rty ûs. glarsnlor of tho pglqrûôncê by Û¡a ¡æl9nÑ ol tho

bms of thl! Conkel f .ny astgnm.rt ¡¡ rod6 that maßrlllly åltèrr godr¡cb/9 linsnclål bordor, Cml¡åctor'Ê compênsålim Êiall ba aqulled to glv€ €ñei lo my iwcq or ddd$ ln &ntraclq/r opateÛ¡g ffiþ 24. NO''ICESÂND PIAÕÉOF PAYilEilI:

Nole¡, r!po.l!, ând oligr Bwnun¡cåliro roqu¡ted ot Þgrmltttd bt Uli Cstþs{ lo bâ giyln tr snl by one p¡ry to $ô oth€r 3hål bø doltvèrèd by håñd.

ma¡þd, d¡{il¿Iy ¡r¡Nmtíod ø !6toøÞt€d to tho eddro¡¡ hêrÞinab.6 !hdn, All sùm! paFb¡ó h.rounder to Cql¡aclff shêl¡ bo psyabl€ al it¡ ôddËô h!Ëìæbovq ôlwn

2ð. cor{ÍNUlN6 ogLIGAT|ONS;

Notwilhstañing lhó tern¡ælìfl of thi! Cml¡ad. lhs pãrlle! sh¡ll mil¡(. to b€ bq¡nd by thê Povisims ol l¡fs Coilncl thsl feã3ffibly ßqoit3 m ¡cl¡on tr ldbôai¡e rlla rucrt bmr¡ùon 16. Êl{nRg Ao¡lÊÊtlEt{tl lht6 Coot eç,t @nslíuter b€ tuil u¡doFlãndtng ot fE pårti6, arH s øÞ¡61ê and ox4{udw 6!¡trm¡t ol lttê lem 9l (hek 8grærunL .od ahalt exdullvêlt ænlßt ônd lovor¡ eil wí( p€lo.mod hdcu¡dr All ßpra¡gnl¡tion¡, olor!. ard urøed¡kiñgs ol [ìo psdios nsdo prior lo the oíectvd d.t¿ hôlót, Vrhôüt* oEl or in wrlllno, are ru10!d hereln. €ñd oo otà6r utrsctg, sg6mnl! o. wt gldeÊ, e¡acuted pdq 1o ItB exæll¡on ol lh¡s Cdfrrcl ¡htll ln 8ry üoy modtt, soEûd, rller or chång€ aîy o, ihB lems q ód¡tiono sot oul hóßl¡. 27. SPEeTALPROV|S|OñS:

27.1 Exhlut 'C" - C!¡!f!9tOI!jÞË9hlP-tOtEþ!! l. ruôohcd ht lo .nd nedo s prrl hoHr' -27.2- tn thr ¡v.nt ot .d dtsDut .iltlnr out ol o( ñhlûd !o t¡la Codtdc.t. tfie târtlg! ¡qmo ttt.t ludtdlct on w¡ll ll. orclu¡lvlly wtth tho rt te ¡nd ledgnl çOuü ü iì;""il;l H;ií 6;-ñù. i;;;ì: õñàör ¡-åËr ln¿ lom-onu ro ttie lurt¡àicuón òt t¡oitâte end lodorcl çourta l¡ Hôurton, HtrF county' loxr' rnd w¡iviã ¡ni'ó¡hctlonlhóüuctt cou¡i ¡ru ¿n l¡ñFÞ9dor lnconwnlr¡lvdnuo or lorum tor ¡uch dlapub¡.

27-¡ Fôr dddÈ ol dôlw dltht rlo mvot. c¡6ed bv clrcumtbnco brvond CmÛaclar't ccntÞI, lncludlnc, but rct llnllcd to, lnclêmont wrlhf, --- l'ck ot lv¡lli¡¡ittioi.oil¡itócìUo-n,tËn¡porti0moqulp'mtøpemttr,oórrutorlh¡llp.yColfnctorsdélryñt.ol¡17,000perdty.

Zl,¡a C¡nrio Drllllng Tech¡ology Ltd, 1"6ånrig',, ¡n rlilt.to of Contdfq¡ lh¡ll inwlcr Op€olorr ¡nd Opo¡¡tor .h.lt p9y C.¡dg 3280 0s d¡y (!pud to n¡g.tsl for Mtll olthc Cudg RIg W.tch rÞlom.

Th Crndð f,tù W¡&h 8r¡t m EdulDmont ¡ñlud.s lhr tollowloqt D¡illd'! wrkBtrllon, Compånymr¡ øhputs woftGlôdon, -lælÊU¡hlr.conPxter þrfat'floñ, dúrfn&t üritlno rv.lari, hook lordrtlt w.l0ht, ñtrrv lorque, El¡ty RPM, punp potsur€, pump d¡oko æùntm lz pumps lrcluqw)' pr v6lum. po6r. l0 prcbr hclutrtil),trlp t¡nÌ voluhe ptob.i la proba lncluded),.nd r¡tum now Ftddlo'

¿8, ACCEPIANCEOFCONIRACI:

r¡he lapgolng CoÐbact, tî.|útttng tfo pmvklo¡6 tot¿aiq ao ladanîtty, nlo.z. o( t¡rbÍtu and ollsc.{on al tßh ol Subrydtñlhr a.9 sd 0.3¡'c), I

I

põr.!âphtlo.ndt2,tndsohpangñphttl,lthrc'4j¿tttl2,ttacrnowtodlp4agro.drorñd¿otøpredbyotñtôtthts.îfl*r" lTÍ.20J2.

OPEFIATOR:

/"¿ slr fh¡e:

Íhê ,orcgoth, Contñci tûcludlng lhG ptavlêtØe ralsilng tO l¡t/',ûitty, úlaâta ot illþl¡W .õd ,lloctltoñ ot d6* ol SúPàttodplta a,g' A3þ)' F.ilgûph. lo âûd t2, ef,d Subpañgrtpttt la.l thrcugh ,1.12, ts rcknoul.dgtd, agñdao tnd acc.plol by elnvaclot lhl, ol --:tgtløþ3f-- 20Jl!-

--{--lay whlch ts the o'aaltvø dâta oI thl. ContBç¿ çpbtöc1 ao dg êvatltbìltty, snl tuyeçl b ¿il ol tls la¡ñE and Pþvttlont, v¡Ù, lìta uillqaltndll?/g ,htl ,l wlfi ml & bhrdtñg upú Opñtot úttt Openlot h8 noþd L. .cccpaonce, tâd wih Jho la,lhot undqç¡rndlng th€l ulrers æld Co¡arr6t ,6 fâus qæúad iy OPaFlot

wllhtõ ---¿ttgt!!L.ray. ol aho âhovo dttë Coùvaclot tlratl bè ld ûo,n.nns bound by l(. slgnâualharclo.

cOtJTR cmRr Byl

lltle:

lú.s.ùw*h@.Pry6) Fqm provlded by Fom on'n.orlr, /*"'--ì'ji; ¡ I CoF}{hhl O 2003 ¡ntônslirulAa3ldâü,or of Ddllino CônÍadqs (214)310-e{20.FrymsOôAOGk.M Y_ /

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3, INSURANCÊ (Sæ P¡ngdpì ttl t.l Adeqsto Work*' Cotrpe.¡¡l¡on lÐ!!E¡æ æmpty¡ne wlh S(¿t€ LsH ¡ppllcât e or Ënployeß Liqbiììly hlutrræ w1fi f¡mìts of ¡-i¡S.11ì-Oll![9!- |

ovol¡oo ?li ol liir Cmlr6cl.

Conloclolè snployæE Nd(lrig undor 3.¿ Cgfrmarci.l {or Compfehooslvó} Gôrcnl Llâlil¡ty lÍ!u.åm, l¡Eludirg çonlEclutl obli¡¡tionr ¡t fspêct9 lhls Cantúc{ 6rd propd mv€6gê fd åll otþr obügstþñs ðúumod ln th¡¡ C¡[mcl. Th{ l¡mrt rh¿ll bê ¡-_û!!l1¡dl¡¡t¡-_'- Mbl¡ed dngì€ llfill per GurèM lot åod¡V lnlùry.nd

Pfopeny O¡mo¿.

3,1 A¡¡tqNbrtr Psbt¡c Llsbllily ln3ursM wlth l{m¡t¡ of 5__ø9.,j1lnlllþA_ tor hc d6dlh q ojury ot êrc¡ psm rnd ¡ ono f I I ñllllotr J$ o¿cfi ræìdonl: rnd AutoruUls Publþ Usbility Propo¡ly Oàmgo lnwønÉ wllh l¡mlts ol9 om llì ñllllon fø eacÍ soci('enl 3.4 kt. l¡$.#laFe.¡{e¡¿ rn-*F{t5É-€str€6ts aßy-lFld¿ìùon þ fio Slålutory Wq*erc' Cæ"ons0.o-¡q$M¡{ãccEoM{Þdode0 l¡ab$¡{y unl#lhs Lsgrher¡mn'3 & Hátur Wdlqe Carpffial¡or A4¡{qd+¡a¡l¡rþ.l'

f,6 (¡hof¡n¡úÉn6l Erc.¡tlhbllltyhßr¡¡o¡lnthcmdnlott¡mlll¡ondollrsth¡Ûfrol!.i.!.1¡nd?.!l.Omntôawlßo[ñhrloOËÊln!{n¡* lr rn gmount ro[ la¡ llr.r 310 mllllqlr doll¡[ lnaslm lhr lltbtllllrt !¡tum.{ !v tb¡ Olldot ùûd.r lhl¡ Cðntl!¿L

.. ÊOUIPMENT, T¡IAfERIALS AHO SERVICË6 10 6E FURÑISHED BY OOflTRACIOR;

Thé ffi(¡ln!ry. nqulpmnl, {mtÉ, m[iâ{¡, sspplier. t¡itrmnts, ârry,EJ ¡nd låbo. herehanq l¡slsd. includin0 sny lÞßporlalion tsqulæd lor lucÍ ilèmr, shell be pravldôd 6t lhe wo¡l þcál¡q ¡l thè Êrpè¡gs ol Cmtredd unlear othgrwiô3 nôþd by thls Cilú¿ct.

,l,i orllllrg Rlg'súblÞ!tto¡v!llåblllty -

Coñpl€to drillim tlg, d6¡þütd bl Cøt æ1s ðs its Rt€ No. üe Diq ¡lcmô ql equlpîml bein€:

DEWrtr: Ltåkú únd¡{hdsl Perilô lnveñpttl¡ê¡ed hefr rnd m¡de. drlh.fulþ ---læ:_*.*, No. on Brg Pumpsj No I Måk¿. Pwr S¡ze. añd

llg 2 Pm.

M.k€, S¡¡e. snd Mud M¡xing Puñp: MôkG, Siæ. and Pffir .. . BöjlBN; Nmbor, Mâko. H.P. snd W.F -

Ostrick ø Ma¡t l'{eke, Sizg, ard Capôcity

Sub.toclurc: Slæ Erd Cspa€lty - Rolåry Oriw: Ty9c _ _ -.........* Di¡ll P¡pe: Sq6 mloht. rnd oñdos ar r.l6¡aF tôjr.lnlòt[ '100,000 lbr owroull lt; Slzq:

-.-. . ----

tU s-upû ùaãd.'EM a'- P4 1) Fom pq¡ded Copyright O 2003 l¡tehrlloõålA3ulålion ol Drill¡¡t C6trãdo6 {2i4) 310-942r

BlMul Pruvenlèô:

Shè $ods8 or lolt Pr, U!k6 & Hod€l NuntÞr

8.O.P. Clo6¡n9 Unil: 8.O P Aeuñulâtorl

4: OèrÌick l¡mbèß .r.t Nñ¡l 9u¡ngs oldrill p{p€ tnddrill co{{ãts 6Þêc¡ned a¡ov€. ,4.{ Cøve¡lionsl dift ìndkþlø 4.5 C¡rculeung mø iÌt. 4.8 N*66åry píps 6cks r¡d rl09it0 !pml9daì, 1.1 ltùml ltoreoå.f 8.õ¡ed¡¡ddstldh, 4.6 Shatr shãkor. 4.9 4.r0 a.tt r.lz 4.13 4.11 4.15 4.$ 1.lt 5. EqUIPMSRT, MÁIERIALS ANO SÉRVICÊS TO BE FURNISHEÛ SY OPERÀIORi

Thê mâÇhlnsry, eQuìÈreôt. loots, mlsi.¡ti, suptrlio$, l¡strùlwfs. ætui(ær nnd l€bor hgglnôtlg lislôd. a¡duding ânytânspolrt6 têqu,rd lor su{ll lþß. shå¡l þs

prov¡dêd st the wll lo{€lkh at thê 6xpenæ of Operâbrun¡ðs olh€N¡ss roted bylhls Conlacl

õ.1 Fu¡nl3hsndmaÌnt¡inrdæueterædwaysrd/ot€nrllolølion,rlght{f-way.indldlnÍr¡ghlÀ.ol.Myto.fr.laridwðl€rllnas,rivorm¡¡logl.hl0lM6y crogrhgs, gal6s s¡d etl,€ gugd8.

6.2 Stsk6 lMtifl, dêar snd trådo l€tbn, Bnd pm!+dd luroþuñd. ìÕc'uding Eutle¡ng wton næEPry' 5,t letlt¡¡ks wúh rtp€ snd f{$ngs- 8,4 Mùd 3ba0o l,anfiô w¡li pl!€ lrd fltìngr 6.5 seÞ€lêlgrwith pip€ snd li0ngs. 6.4 tabr¡nd ro{odåls to onneqtând dieonnscl dud lâni. t6!l t¿nk, ând mud 0å6æFfðtoi 6.7 Labot tôdr9ønnacl a¡d dôan {ñt bnks ånd mud oag æo¡¡alø 6,8 OrÍhg mud. c¡€mi€ll.lostckcul¡llo0 reG¡iá19 ând olheroddìliv* 5,9 Pipe snd rôætio¡! ld ailçlrcuìáting lines, 5.10 l¡bor ta lay, b!.y a¡d reov€r o¡l drcul¡ting linê3. 6.f I Orillin! bls fèad$. æåmrdlterg, stâbili¿ss and ¡pecjrl l@ls. 5.'12 Cqlkl flhirg t@l3êry1æs rnd tælr€nÞ|, 6.1! Wm lhê ære tiis ø hô8d., ø9 b¿relô Þnd wiß lìne æro qldûs lf mquhod. ã,14 ôonvenl¡on8i @r€ bllâ, cqê æt€heN gnd ærð barolr 5.15 Dlsmñd (æ bar€ldlh hegd 5.,l8 Cem€nt ð¡d æml¡nç erykr. 5,1? Eleclriel wiæll¡e logqhg süm. S,10 Þireclional. ülip€r, or oftqôpec¡ål lHvic€s 6.19 Gu¡ d Jet p€rloÞling æd'm!, ã.¿0 E¡plss¡v€s qnd shæ009 d¿viæ8, t.2{ Êornglioñ testin0. hydr¡ul¡c fßcl!rìng, ôcld¡z¡ng å^d qthêr rel6ted seryiæs. 5,22 Equlpw¡t lor d¡lll$tðn t€3ting. t,2! Múd¡oooing3eñts 6,ll Sid#sllco.hg6erv¡æ. 5,25 W6ldirgsfl¡celorweldingbollmroht!olÉsin0,gu-ldetbæ,l6trhoo,lþål€{l¡roód¡nðnneclionuÍlhlßì¡llingolE¡lho¡dsqûlpMillæqu¡Þd 6.26 Cs3iñ9. iubing, li¡eE, 6dqeô, lìoål @ll8r¡, 9uld6 !nd noEl ¡hæs ¡nd sswiåtd ¡qülp.mnf 5,at Cãsiñg sdetc¡€¡s and ænlrgÌ¡eF 5.2ô Welt heBd ønneçtiitn! ånd all ðqu¡pdsn( to Þê InstAlL6d i¡ or oû rel' Or On ltþ IEni!æ lor ute ¡n øn¡æUð Wilh lôsÙ¡g, æmp¡ot$ end opaatìd ol wll. t,29 SpqÀt o¡ ¿dded stomo€ lor nud ¡nd chgnic¡ls 6.30 CdiñOhedd. API s€199, to qlom tothãt 6hün lor úe bìMUl prov€nteß lp€cJfÉd itr subpeßgBph ¡l.l abovê. 6.31 gio@t prgvenler ìeôlin0 psckolnnd t6slin0 Boryì68. 6.32 ReplðæMt of 8OP robbß¡¡, €leßnl! gnd *.1r, if Equìr€d, altr ¡nilisllesl 6.JS Casing Thr.ad Prcl.<r6 aôd Cââing l,ùbÌk€nls. 6.34 H?S ûa¡dno sñd eqv¡!ffi1!s n!æBrsryo¡ ås requil¡d by law- 5,35 siG hptlc sy5teb6, 6.!6 Dlbhlnû ârôuñd dd ¡nd lællton. - - 5.37 5,18 6.39 6.{O 5,41 6.a2 6.43 5.U õ.:46 6.40 5,47 5..t8 6,,19 5.60

ùNß ùñt d ' 'úd A' . Pqo 2) lU S. Fom pßvitd by Forñs o"o OO* /' .

coÞ1rightQ ¿s3 ldtern¡lioffif Ase¡âüon ol ortll¡ng Cônl.æt¡fi¡ (2t4) s1Gs.{te 'Forñsonaoi"* -. "\ ,

{\ìSùJt

Re!íø AFå, N3 O, EAUIPME'.IT, ÂNO SÊñVICÉS TÕ BE FURNI8HËO gY OESIGNATÉO PARW:

'IAIERÍALS ltsru. lndldinq ã^y tranrPolãllø Th? msdjinery, equipme¡|, tqote. mstqri€ts, sup9ìiss, inslrurenls, $d¡c66, a¡d låbor l¡6led as the fo{lryin! humbere¿

rqsíÞd lor 6ucl¡ ìl€m unbss otiÉùisa õpæined. ôh¡fl bè provijod ãt thq wtl l@tis ênd al lhe erpence of ll€ par{y horslo ð6 de6Í¡n!1ed by án X rutk lo the

ôppröÞaiale collmn.

Tq Bo Pþvlded BY rnd At Thú Expin¡3 ol Itsm op€frtor contrårlo'

6.1 C6lì¡r and Ruf,wåys .. .

6.2 x 5.1 F6l {locetod ãl x 6.4 F@l ¿i¡Es {onqth !f!lq!!X , -,, t.0 Wsl¿r ¿13Érø, indùdirg aoquit8d p€rÞl!, .,.-.

8.å Water trll, inc¡udin! rsquitd p€rmls a.7 Wãter liæ9, indudrng r€qqirêd pernits-... x 6.8 Watôr tloraqoSnk6_- $pâcity {Pot ilg hvôntory}... . .., 6.t Pohbte mtá and bofr lod w¡tdr......,.....

lqbq ts operôle Flor wellor walor . x 0.t0 pump {Rig cßw only}.., .. .....,. , .. ,.. 6.lt Mâtnten¡næ ol&tôr mlt. il rgquìred.,. ..- . x 6,12 Wat{ Pump, ,.- .... -- _---x _ s,t¡ Fuèl fq wl6¡ pump....,.. x 6.11 M€ts ld è¡gises ôod þole,s, d ñtoft s¡d ftud pumps.....,...,. ,, ,.,,,. . -.

6,tð Tránsportslion ot Cq¡t ãclo/6 prop€r\,-

i¡ove ro... sie P¡¡e,loh 4l Move oul.,.. .. _ P¡r¡0ruth 4.2 6,'i¡ M€r€dals lo¡"boxiry i0".ig 6nd d€rlck. ,.

"sg€, N'A ... r¡/A 6,'!? Spód¿l strinosof dr¡llpip€ ãnd dnltællar6 6s fol¡M;

4ñv tmrilÞd x

6.ts lþ¡ly jalnls, subs, él€Efo.r, tongs, slips ånd 8OP rsús lø usewlh speajðl dn[iæ ....., .......,-.. x a.'t9 Díll plps pro{6¿tds for Kettyloint ano eacrr¡oìni ol dlÌl dp€ ruonlng i¡lide ol 6!da@ Caoing ås roquited, Íor uqe wilh ¡omôl glrinor ol drll dp€.. x 0.20 Drill pìpe proìæloro aor Këllyþñl ånd drilf plpo runn¡rig insdo ot Proleúioñ Cas¡nC .. .. . .. .,, ... .. ... x 6.21 ¿le ot p€mlÉtion refrdiîg dêviæ {Cinñf oþotMlc). ..... ..,,,, , .-... . ... . ... a.22 CxtÉ ¡åbq lq runôñg and æ¡û¡g Ësinq {Çasi¡0 ffi}.,-.,.......,. ., .... x 9.25 eðling l@ls,,,.... t e.24 PderqBinû longs ... ... x l"aydffñ and plchup ruch¡¡o.. .. .,,.. ..,... ..., ,...,, x €.26 Tublf,g l90ls,. ,. 8,21 Pffir lublng t¡crg . .., .. 6.28 Cr# Bæls, t'lrA llra 5,28 SEMCê B¡.ge .., .. t¿tA

6.t0 SeMæ Tug Boal iltA 3.31 6,t2 Mouß Hole 6.t! Reôorve P¡15..... ., ., x 5,34 Upp€r Kelly Cæk x 6.36 I oftr Ke|yVatue .. x 0.¡6 Dírll Pipe SoleÌyValve. ø,31 l¡sìd6 Bl@t Pre€nlo.., .., ,

t.l8 Drill¡ng hole lor or drivlng lor@Muclor plÞe 6.39 ChErges. øsl o, bond! for publìc roadg x 0.10 PorlBble f ct1e1.,.,,.....,.. 6.,1t Tr¿3¡l R*pt8çle, . ... , . x é,12 Litw¡-l¡o¡lo+Shåfc Stlðkor (Por rlE l¡voñÌo.yl, .. .. ... t 6,4! Sh0le Shaker Ssæns x 6.44 Mud Clea¡er.,.. x 6.45 Mud/Gas Sepõrator". x 6.{8 Oesendê1...,.,, ...... q.47 Desilter,...,.- ..-..,.. 0,48 :( 6.{9 CeðìJifuge. .,.. , .. , x 6.a0 Rolrt¡ng lloåd ....... x 6.6t Rottlih€ H*d Rlbb€rs - x 6,õ: Hyd¡svllc Adjvgtabþ Choke -.. 6.63 P;tVolúme ToÞli?er x 6.64 óommunlølion, trF€ lc€llllar phonc lor rlo uro o¡lvl ,,.,.....,... 6.55 Fdlln,Épôq'ty@ JLc cl0ó64 110.000 lb lll!'a¿lth outdoocõl wltl ! Shr lnduetdeB Ou¡ck.Teh Truse booh f,todel 1302-JLG . .

8,õ6 Cqr$igo l¡bibiltr fff proìedìng drill 9tñ09. 6.6? 6.56 8.51t t.60

¿vs æWk bþd -'E^rtu A' ' PsF 3l Form providd þy Fqru Or.A Drs\ coÞynqhl O 2003 ¡ntmaúrÉl Ass¡ðl¡otr of Orìling Cútrâclos (?r1l M0 9428 FêrmronADisk øti

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( . .t . .'l¡#rfi¡wor¡r¡oJ lg*slr {'r)

, a,oþt $¡oc 6üil¡O F ¡ro0rpoarv tiloiauJewt 00tt¿ g ¡qöp&b¡ \ ': 1 )frûtuo ruoJ {q ¡¡¡rol u¿ þà,.¿-,vtëttr¿ -å.iôj tarE S',t,

lgNdSt ou¿u¡Hro '¿

îffi'fdlr,pirQ

R..AI AsI, 200:t

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{S!r Sub!8trc6ptr 0.1}

Tlþ lbaþlrlng chu$, wtH mqtlrÊd bt bf, m ¡upoftt4d h $! o$ttæl ¡y llk*rnca rr f fulty €t sd: {f} rh. Ëqull otportrn¡ty clsm pnsnbd, lr 41 CFå æ-1.1. l¿l Tta Ac{otr Cþvþ pþslbad ln 4l CFR ô0't60,4 cgddl¡g Þ((6r! ond rctø6 of $e Vleln.m m'

^ttlml€ b wt!tr p(oúlùod h al CFR 80-741.'l {¡} Tho Altlñâürô Adhn Chus lË¡tdlcsf¡id (al Ths Crrüfirâtlm dcmplir¡Ë*lth ErMrcíml¡llmr pGsil¡€d ln {0 CFR 1t.¿0.

(tt.S ,.ñ, tuXle.'Extü E. *ea I Fm prûk €d by Fms On*obh Copyíeht c 20or hlr¡rlhnrl Aå!ðddh. o, Drll¡h9 Cdt sdm (21t' 340+,12¡ . ¡omoflAolÍr. m t.

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EXHIBIT "C"

CONTRACTORS SPECIAL PROVISIONS

Conkåctor shâll fum¡sh inilial lested annu¡ar preventér elemenl, lf lhe sl8mÊnl is demag€d due lo de¡trudive Þtêmsnls lrlroduced to lhe mud, gtdpp¡ng, or sxcêsslve tssling, the Opårãtsr â9ræs to lufn¡gh å nêw êþmént.

2. Chemical Add¡tìveg to ths mud for pr€yenting o)ddat¡on of lho drlll strhg and hydrog6n sulfid€ scev€nglng chem¡cåls to lreat the mud or drilling lluid ae nooessary to r€mov€ ell k¿c€s ol H¡S and lo control oxygen caroåìon to bå furn¡Ëhed by lhe Oper¿lor.

3, operåtor ehatt tumish åll lsbor, ôquipment and mater¡als lo olean f¡g âief use of oil base mud e¡d1or complol¡on fiuìd.

4, Ëxtr¿ qo6l to rig up lôr drlll¡ng with oil þase mud ¡ncludíng, but fiot llmitÉd lo, Ih€ cosl ot pìl çoveË, steam ôl6snôrs, dr¡p pans, mud vass and cleaning malerials shall be al Op€rator's expenso.

5, lfr¡tial inspecl¡on of all Contråclo/6 drill pipe, drill õo¡lårs, kslly, kelly jo¡t¡tê, velv€s, subs and |{WDP êhalt be at Contractóis sxpengo. All rspalr6, replacenedte rnd heulìng for repa¡rs will be åt Contraclol'ð expense. (The ¡nsÞêGllon w¡ll b6 lo T.H. Hill, DS1, Category 3 or its equÌvalent).

0. Subsequent lnspe€tions (hclud¡ng the in$pectìon 6t lhô end of tho Job) Õf all ddll plp€, d?lt collårË, kelly, kelly jolnts, velvas, subs snd HWDP shall be åt lhe Operalofs expêôsê. All rèpglrs, rôplsc6monte and hauling lor ¡epalrs wlll be ãt Op€rator's êxpense. (lh6 inspedlon will b€ to T.H. lllll, DS1, Cglsgory 3 0r its equlvalent).

7. Opsråtor shåll lum¡sh åll screÊns for Bh¿le shakeB.

t. Oporotor shqll fumi8h all potabls wslsr for Op€rátot and Conlr¿clor personnel.

9. Op€rator, op€ralolg rêpregent¡t¡v€s snd Opsraloas suÞcontactors shâll support Contrâc'tofs s8fBty Policles and Procêdurqs ln genaral and in parl¡culä., w¡ll comply wlh âll Gonlråclols pBrsonal prolsclive equipment requlremsnl6.

10. Op€ralor will be reBponsible lor the provis¡on and mâ¡otenance of any sile saptlc systems.

11. Qontrector will prov¡dê o¡ly one sizê of mud pump liners. Añy addlt¡onal s¡z€s ßqul.3d by Op€Ëtor w¡ll be provlded by Op€råtor åt Opeleto/€ cost.

12. All thkd party êquìpmðnt requ¡rsd lo nipple uplnippl8 down BOP êqsipment will bè prov¡dèd and pald lor by Operåtor,

13. Thè r6te6 containod in this Contract arè ttãsèd on the rig lnventory attached hereto. Any modlficåtion ofadd¡tlon lo the rig requested by Op€rrtor will b€ ât Opårstor'8 expen*.

14. Operator shsll (€st BOP equlpment at lntervals âs 6péc¡l¡êd in foderal, 6tale or loc¿l rÊgulåtlon6, API Reçlmmènded Prâctica ôr ev6ry twanty-ôns (21) doys whichavÉr inl€rysl ¡s more 6tr{ng6nt All testing will be performed by an ¡ndèpåndent tssllng compsny plovldêd and p8¡d fot Þy Operator.

15. ln sll oâtôg whoro Contrâctor's employees (¡nclqd¡ng Conlrâclor'ß dir€cl, boffowêd, speciál or sts('ltory êmp¡oy.6o8) ¡fo cov8rôd by lh8 Louislona Wort(e/o Compsnsat¡on Acl, la. R. S. 23:1021 e, 909., Op€rãlo¡ ånd Cofltrdçtor ågr¿ð llrat åll work and operalionô pelomed by Co¡trdclor sld its efiployees purEuant to lh¡s agrå€menl 8re an ¡nt€gral parl of ând ar6 êssênt¡al to the ablllty ó¡ Operstor to genotelo Operatqfs 9ood9, producls and services. Funhcmore, Operâtor and Contratlor sgleé lhêl Op€rstor ¡s a slsiutory employer ol Conlråcto/É employeee for purpo$es ot LË. R- S. 23:1061 (A) (3), Notwfhstand¡ôg Opðrstodc status as å Bfetutory êmployer or speciâl employ€r (ås def¡ned ¡n La, R. 8. 23:1031 (C)) of Contraclor's employæs, Oonttâctor shsll rernsin primarily re6ponslblé lor thê payment of Loulsiana Wo(e/s Compên6atlon bånsfta lo ils employees, and sball not be €ntitled to Eeek oontdbut¡on for any such payments ftom opôrator.

18. OÞ6t'ålot, it3 p8r6nl, subsidlary ûnd dlìliåtdd corporallom, 0! $ell I lh{ ëmptoyês!, olûærs snd dkêctorr ol aôch {6ollesüvålyl "Opetåtoft is cognhrnt óf tho Nottsrg Dl$pulo 8ênôlutlon Proofam and w¡Bhas la b€com6 an Elåstlng Eñtlty. ;s dohn6d h ihst P;ogråm, Ac¿¡rglngly, Operú&r aod Nåbors lndu6ldss, lnc. fNabors") hor6¡y agee lhol Oþrator ie ßn Elecling Enlily as to all D¡sputê$ bet$/è6n Oporator ànd the prosent and tômtl Employsås ånd Appllmnts ol Nsbors puEurnl to lhs Nsbm ùspute R€solutlon Pmgrom as il c{rrBnuy exlst¡ ônd åâ mây be âmånded kom t¡me lo l¡me, ln lhe event lhe Prog¡am ls ãmended, Nãbors sgrges to p¡ovida a copy ol lhg êmêôdm6n(s) lo Opèralor, Opsrâtôr may w¡lhdrâw lhis B16c1ion to partislpat€ ¡n thË Prôgrârn ât sny l¡me by giving no(ico ol such wlthdrawal lo Nabol6, such r€vocal¡on lo be etfâctive wlth rêsp6d to any clg¡ms nol yet insl¡luted ås ol lhe dals of ævocalion. Op9rator understands thal it is bound by the terms of lhe Program wlh rèspôct to all Di8pules w¡lh Nabors employees, regardleso of whelher suoh Oisput€ ls inÌliated by the employ€s or by Operalor. Operator and Nâbor6 áclmowlèdgê lhat ths Plogram doó8 not apÞly to dlsputes Þelffion Op€?ator ênd NåborÊ and thât ths Ptogrâm does not allar thê leñnE ol any indèññificâtion aqreeñeñl Þéh,,¿€Ên thêm.

17. ln thô event Operãto¡ ålêcþ to drill ã subsl¡tute wéll lt shåll bê Operålol,s obligslion to ådvlso Conlråctor ln wr¡t¡ng of such change. Notwlthstanding Operator'ð fållure to nóllfy Contreclor of such chango, the terms of thls coñlract shall epply to such subslitote w€ll as if ouch subslìtute well werè ihe wê¡¡ spec¡l¡ed ln Pårâgfáph 1 oflhs Conlráct.

Ex¡¡blt-C_0 l_Oklaho¡na_Mây04

NABORS DRILLING USA, LP

4lll) PACE 15OO - RIG F26 fllll)

Programmable AC Electric f500 HP Rig DRAWWORI(S: 1,500 horsepower AC drawworks featuÌ¡ng regeneËtive AC braklng. Drawworlts ls drlven by two (2)

800 horsepower AC motors. Autodrill functlonality utllizing ÀC motor.

POWÊR GEflERÂTIOT{: Three (3) - Caterpillar 35128 eng¡nes rated at 1,476 horsepower each, driving one (1) tGto 1365 lM generator, for a totâl of 4,428 horsepower, AC power generatlon, Varlable Frequency Drlve (VFD) and MCC unltlzêd in a single houæ,

l¡lASlr Pynrnld Fa* Movlng Land Rlg 152'three sectlon mast manufactured to AP¡4F spec¡Rcðtlon. Statlc hook load of 1,000,000 lbs. on 12 ¡lnes. Mast ls ralsed and lowered uullzlng hydrâulic cyllnders. Mast has lnbe{rated top drlve ralls (enablei bp drlve to travel ln mast during rig move)'

SUBSTRUCTURE: Pyramld hydraulically elevaM substructure wlth 30'Roor height and 26' clear helght under robry bisms, Sûb*rucurè ls rated for 1,000,000 lbs rotary load simult¿neous wlth a 600,000 lbs setback load.

OnILLER.S COilTROLI Cltmðte controlled d¡lllert cabin provides integrated Joystick control utlllzlng PLC technology. Touch screen controls provlde state-of-the-art monitoring, control of flg equlpment ¿nd drllllng pan¡meters.

HUD PUIiIPS! Two (2) f,600 horsepower mud pumps. Eåch powered by one (1) 1600 horsepower AC motor¡ pumps are equ¡pped wlth hydraullc liner retentlon and purnp rod slstems,

MIIDIANKS: Three (3) tank system total côpadry ðpproximately 1,500 BBL; four (4) 6" x S" centrifugal pumps powered by 100 horsepower eþctric motors. 100 BBL tr¡p bnk.

souos coilTRot: Three (3) Swaco Mongoose shale shakers One (l) swð€o mud cleaner witfi desander / desllter,

WATERSTORAGE: One (1) 500 BBL water tank,

FUELSTORAGE¡ One (1) 20,000 gallon dlesel tuel tank,

TRAVEUNG BTOCK 500 ton travel¡ng block, grooved for I 3/8' drlll line, TOP DR¡VE Canrig 1250 AC, 500 ton integrally mounted top dr¡ve system,

ROTARYT 37-112" rotary lable, lndependently drlven by AC motor'

ACCUHUI-ATORI slx (6) statlon accumulator unlt wlth one (1) electric dplex ônd two (2) air ôperated pumps. Unlt wlll be designed ¡n accordance w¡th API 160. Remote panel wlll be mounted at drlll floor'

BLOWOUT Annular: 13-5/8" x 5000 psi. PREVENTER,S: Double Ram: 13-5/8"x 10,000 psl.

Slngle Ram: 13-5/8" x 10,000 psl. Manltuld: 4-V16" x 3-U16" 10,000 psl.

DRILL PIPE. As per contfact,

DRILL COLLARS: As per contract,

AOD. EQUIPilENT: Dedicated man-rlde¡ wlnch Automated cãtwalk / plpe handllng system Varoo ST-80 lron Roughneck Two (2) âir operat€d hoists BOP Handl¡ng system Air operated sllps Rohting mousehole Camera system lntercom system Vacuum degasser

Revlslon 0 August tu

EXHIBIT "C"

cotllRAcToRs sPEclAL PROVISION9

Conlrâctor êhall fum¡sh ¡ôìt¡al tested anûul8r preventer €lement, lf lhå elêmenl ls demaged due to destruciivs ;t;manls iñtroduæd tó lh8 mud, strìpp¡ng, or sxcesslve tssling, the Opsrator agfees tO iutôl$h a new €lomenl

2, Chem¡osl Addit¡ves to tha mud for pr€venl¡ng qxidation of thè drlll slrìng and hydloqen sulfide êcâvènging ã¡u.¡*ls to beât the mud or drillin'g fluid as- neceseary to mmov€ Ell trac€s o{ HrS and lo clntrol orygen codosion lo bE furnished þy lhè Operâtor.

3, Operâlor shall furnish all labor, equipmert Bnd maleriål3 to cleân rig eftef usê o¡oil batg mud and/or cÆmpletion fuid.

4, Ëxlû cost lo rig up lor drllling wilh oil baså mud including, þut not lím¡tgd to, the cosl Ol plt covers, steam cleaners, dr¡p pans, mud vacs ånd cleaníng malerlðls thall b€ at opårator'â exp€nse'

5. lnitiâl inEp€6'tlon of âll ContrectoCs drill Þips, drill côllEß, kelly, kelly iointô, vâlvês, suþs and l-fWDP shall b6 ål gxpense- (Tha Contractó/ô ôxpensô. All rêpallË, rêplaæñènG snd haullng for repË¡rs will be ãt Contrac¡o!'s ¡nspêc,tion will bs to T.H. Hill. DSl, Cstegory 3 Õr ils equivalent).

6. subsequeot lnspections (lncludlng the in6p6ctiôn at Ìhe end of the Job) of åll ddll plpo, drlÍ mll8n. *elly, kelly ¡onìã, iâiuãt, ina HWop siatl be at rhe operatocs expense. All repars,. r6plåcôrn6nls ary l!!lr¡9 for 'repalrs "L¡e wl¡ bé at Operator's expense, (The inspect¡on r¡rlll b€ to T-H, Hlll, DS1, Calsggry 3 or ll3 öqulvslenq.

7, Operator shall fumish all screens for shsle shåkêß'

8. operôlor shall tum¡Êh all potable water fór Operstor and Contrsclo[ personnel.

9. Op€rator, OpôrEtor's feprË3éntâtiveâ €nd Opetâtôis sub-contraclofs 3hå¡l âupporl Contradofs S€fety Fol¡alBs qi¿ Pto;di,rus in gen'eraf end in particular, will comply wfh all contrsclo/8 p€rsonal proloclive equipment requiremênts.

't0. Op€rator will be respons¡blé for the prov¡sion añd mâinten6næ ol any sitå 6ePllc aystóms

11. Contrêctor will provide only one sÞe of mud pump l¡ners. Any additionsl slzes rEquired by Opêrator wíll be próv¡ded by Operator âl Opetatois co6t.

12. Âll third párty equ¡pmónl rêquirêd to tripple up/fiipple down BOP equ¡pment w¡ll be provided ánd pa'rd for by Opgrâlor.

13. The ratos conteined in this Contract ore based on lho r¡9 lnventory âttached herèto. Any modlfioatlon or addil¡qn to lhê rlg rsquestód by Operator will bô at op€rator's €xpens€.

,t1. Op€ralor shall t€st BOp €quipment at íntervals as ôp€cifie¡ ¡¡ foderal, Êlate or ¡oc€l r€gulal¡ons,..APl Räcommended Pradica or eúary twenty-one (21) days whrcheyar interval is more stringént. Al¡ test¡ng will bê pêrfomêd by ån indêpendent tesll¡g compsny provldêd ånd psid lor by Operatof.

15. ln all cases wherB tonlmctqr'Ê employeeE (¡nclud¡ng Conlrâctor'ô dke(;t, boíowÊd.8p€ciål or 8tátutory €¡¡ptoy6€â) ere coverâd by the Louislana-Wor*eis Com¡Bnsât¡qn Aç1, La. R. S. 23:1021 ot soq., Operalor ånd Çoirtridor'agree lhat ðll work and ôperåt¡o¡s perlormàd by Contfoôtor and itr employôes pur6uant to this agreemônt a7o an integrat parl of and are essintial to thê êbll¡ty of Operâtor to ge¡êråtè OPeraior'9.900ds' pioduas anO se&¡cês. Fuàhermoæ, Operator ¿nd Confac{or sgrêe that Opãntor ¡s a-slålulory employor of bontactor,s emptoyæs tor purposes of La. R. S. 23:1061 (A) (3). Notw¡thstând¡ng-Op€fâto¡'8 slãtus as s stôtutory €mptoiof'or speciäl åmployer (as delined ¡n L¡. R. S,23:1031 (C))of_Conkaalo/s €mplôyæs, donirÀcioi sËalt'renain irimarily rc¡pinslùte for ths psym€nl of Louigiena Worl(e/s Componsation b€neftÊ to its employeos, and €häll not bê éntitled to 6eek cBntr¡butlon for any 6uch psymsnls from Opêrstor'

10. Op€rôtof, ilr paßnl, 6ub5idlÞry snd DtftlrÊlsd coeorallonr. æ iloll Ér lhe employèêã, ofl¡col8 and dlrÈclor! ol iác¡ tcãilocftva¡y.,óporüto|-l i6 cognr¡ânl of lhå Ñabors D¡spulo Remlut¡on Plo¡r€m€nd wlsic¡ lo h"oorne 6n eisc{irg EnÍry, ós øirnø In ìnat piog¡¡rn. Aocordhgly. Op€ralor and Nsbors lnduslrler, lno. fNsþors') hor€by Joioo íttit ôipritor to añ Etecl¡ng Éntity ao ro alt Olgpùtea belwoân Operator.and lhc PrE_sent and fotmt¡ ÊñriroyaàE EiU Àp¡¡¡csnt¡ of Nsbõn puóuont to lhe Náboru Diepute Roroldllon Plagråm rs ¡l cunsnl¡y ex¡Ets end' ad may þe arilånded from üma lo timo. ln lhs evedl ths Prooram le ¡mon<lsd, Nabo¡¡ ûirFss lo provldo ê cõpy ol thç am6ndm6n¡{3) to opofator. ops¡atof rñay wilhdrsw ll.ti¡.õlection to ?ârt¡rìpslo ¡n the Plgsfs.l lsny tinìó by gtvtng nottce ol iúch øitrdrawal to Naboß, rúch rcvoc¡tion lo Þ€ rtlgctlve with fospsd to ony clelme not yÀt tnúiírrted". oi the date of revocation. Oporaior understonds thqt ll 16 bo{nd by lhs to¡mt ol thÞ Progrtm i,itr resæa to €ll D¡sputes w¡th Nabors omployees, regardlese of whsthor Euoh Dispuls lå lñlltitgd.lty lhå emptoyei or by Opera'tor. Operstor ând Nebui ecXnowtø¡e lhst lhè Pfogr6m doo¡ nôt-âp0ly lO dlspvtdg Oetileån Operalor änd Nâbors and that tho prolr¡ñ doe€ nol allèr thâ lentrr of ðnt lndam¡¡lïcotlôll sgrËsñô¡ìt b6twæn lhm.

17, ln the ev€nl Operator stecG lo drlll I 6ubsl¡lule stll n shsll be Operalods oblig8tion lo advfsÊ Contractor lf, wriilng ;f suoh lhange. Notwilltatand¡ng Opðr€tolâ lsllurs to nôtily êonlrsctor of such chsnge, lhe lðms- ol th¡$ Conrrãct shall applyió Br¡ch suÞslituto wãll ¿s if rlch rübGtilute wËll werè the wêll 6pecilìed ln Pårågr¿ph 1 ol lhe Cgnlract.

Exhibit-c-01*oklahoma-Ma1o4 EXH¡BlT"l-E"

APPLTCAnoN FoR HOURLY AN,r DATLY EMPLOVïïåËI 'ltll)

Must Read And Verily With Signature

I acknowledge lhâl a copy ol the Company's CIlspule Resolutlon Program was available for rny review al lhe l00all0n whors I submlttsd this appllcallon. I scknowlodge and undsrstand that I sm requlred lo adhore lo thê Dlspute Rseolutlon Progrâm arrd'its requkemsnb lor sùbmts$lon of all clalms to a proðess that may lnclude modistlon and/or arbltratlon and thal ll I rofuss lo slgn below that my appllcatlon wlll not be consldered lor omploymenl, I further underslend that my omploymsnl appllcat¡on submlsslon wfth the Company conetllutes my jryeïTo ot th: t:lfrïriÅßt provision ag a condlllon ol employmentconsldara{lon.

lf I am hlred, I hereby agree lo parliclpate ln lhe Company's Payroll Dlrect Deposit System for payment ol salariedlhourly omployees and comp Payroll Dlrocl Deposil Authorlzation Form lo implement lho Payroll Dlrect Deposlt System lor my .INITIALS

'Ihls appllcatlon wlll bê considered actlve for lhirly (30) days.

J"/'l Appllcant's

HR-l05 (01/07/r1)

EXHIBIT "l-F"

,t

1i ilrovoiuoon nlli¡þ¡g:¡ ¡'é ol4)ortuntty lo ror¡l ow:tt¡o Nal¡.o¡i ;

t',1 , '

{lllr APPLTcATION FOR HOURLY ANO DAILY EMPLOVTiå¿:

Applicant Must ßead And Vor wIh I dsclare lhat the statoments conlalnod in thls applicalion are corect and undersland thal withholding lnlormalion or making a lalse slalemenl in this application and lnformalion subrnitted thêrowith or at âny lime durlng lhe applicatlon and pre-employment procêss wlìl be the basls lor my åpplioatlon not lo be considered and/or dismlssal, I authorlze all omployers, educators and othorfirms or person named hsreln lo providë the Company w1h ¡ntormåtlon regarding rny education, employment and medlcal history and rslease all such individuals or enlit¡eB" lronl all lìablllty lor any damages thal may resull from furnishing informalíon regardlng me.

Aà\oJ - ttltrtlus I understand that lhis applicalion does not obligale the company lo offer mo empioyment or l0 hire me.. I lutlhor understand thal if I ani emplqyed by the Company, my employment will be on an "al will" basls and may be terminaledbytheCompany'atãnyliirewithorwithoutcaussornotice, lf lamomployod.l undorslandthatlwill w€ar the preðcribed peisorial proteclive equipment arprwill abide by all Fedoral, Slate and Company procedures and rogulalions while working for the Company, - Ad ' INITIALS Y-

I acknowleclgs thål å copy of the Cornpany's Dlspulo Rssolution Prograt¡ wãö åvallablo for my revlow at lhe locâllon whsJe I submlttdd this applìcation.. I acknowlodgs and undorgtand that I am roquired to adhsre lo lho Dlspulo Resolutlon Program ancj ìts roquirenìsnts lor eubmission of all claims lo a process lhat may inckrla 'l rnei1lallon and/or arbilratlon and lhat lf feluse to sign bolol lhat my applicatlon will not bo coneldsrsd for enìploymont. I lurthsr undetôtand ihât nry omployment apþlcatlon submlsslon wlth the Company çon$llluteo nly acçopia¡ce ol lhe tgrms of thls provision as a oonditlon of employment consldefatlon.

At\ \e -J -lNlrrAls lf I am hlred, I hereby agree to parliclpale in th6 Company's Payroll Direct Deposit System lor paymont ol salaried/hourly emptoy'eedand compþtq lho Payroll Dirocl Deposit Authorization Fûrm to ¡mplement the Payroll Direet Deposit System for my pay. - INITIALS -Éì.i\íl This application will be considcred active lot thirty (30) days.

ârl{. J.vt" -V,.r! tar* \J Appllcant's Signaìúie 'l Dale

HR-105 (0r/07/!1)

EXHlBlr "l-G"

NoTICE To i\PPLtcÂNTs REGÄRD.ING DISTJT ITT.] RI-JSOI,Uf'ION PROGRÂM

QI 903 erìrl lhe CÕmpâny. This progrâm rffodlvo ând ofllclenI rny dlsputos thoy mây hâ VO thror{th á lho otì liosl porslbl qrpolunlly.

AcoÞVofttr6Dtspr(0nogolu(ionProgramisboiogprov¡dedloryourr6vl0w. llBnyspplicântlsllsloscktlowl€dg0Drxlsgr8s i.ìñóþreiiãr.tiiàywffinornemngiäeredfnrorñ¡ìtoymor,t. tlieact<nowlodgomonlìsprcruklodbqlotdloryourslgnßlure.

1 I llave !€ån âtiowod Llts opËrtunity to f sv¡btlt tho Nabor's 0ispLllt Re¡olulíon Pto0rl¡lll. 2 Progrârn lûr{h€l lsrfn3 ol

QY ;:: Q

\¿) *\-) N,i|"eJo \)r, Lra G c.( z

ÁitåWlL{LW¿lMrLP-lituisl¿¡lj$Iú$ fìr.' coNF[Åcî(]s

prqrr am¿l pfopôl(åclnû I Àil10s y ompl€âdos sl modto rné5 onlfð sfoc{ qtló pud¡orân tsnB I I lrâvé$ do un pr(Juüso quo fonlonto unâ rouOluc¡ón do la

.lr¡ñto c(,n a¡l tro Bonlo â vlto flÕ lo nsl,'l rtrlfotclrttâilrtr I ililo dol ptogrârl râ dð RÐsoluelÔtl d s Conf l¡(los pâlÊ su.låviólón Si un öì;"ìiü; ;;i;lo.io.rÀ i¡atr"l, rro å"uio rocibo y nr, 06ló d0 õcuordo <on ol Prc{,r0mâ, no sârâ consldottdoplrl .nl profxlrolono omploo- tì0 lo lorirnil¿rlo tlcr oc.¡ur¡ rlo roi'iþÛ do os.lo notif lcsciÓn oon lespecto al HÜgrâÛlâ do r0soluc¡Ótì ortç (i0 bonlllcloú p-orn t¡lo u9tðd lo fltrtlo oll ('Jl¡fðlllllrjÍll ¡ L{,rll¡llu'.¡oiÓrl

3. So ms hã potmltldo tovissr sl Proi)lsmâ (ls RstoluciÓn do conllictos do Nabots

4

NOmgrG q9t AgPtadnt9 **-"*..".-rriñã3 ãl-ÃãÞ¡En m*--*--

Fèohá

HR- 106

EM PLOYEE ACKN OlV,lr,EpGEME¡lT coNcERNINGNÁBOBSDISPUTE.RES.9.L-pTIoNPROGRAM I have rec¿ived a copy of the Nabors Dispute Resolution hogram,

I acknowledge that the Employee Dispute Resolution Program is not n oontûct of amployment between tl¡e Conpany -rä *. for any specifïc time period ond does not altor the employmont-at.will relationship' The ornployment relationship bätwbn the Company and all cmployses is based on mututl consent and can be torminated at any time, either by myselfor the Conrpany, wiihout notice or tequirentent of causo.

I understand tlrat no{hing containe,il in the Ernployec Dispute Resolution Program is intended to violate or restrict any rights of employees grraranhed by st¡le or lederal laws.

By my signotwe below, I acknowledgo and understand that I am required to adhero to the Dþute l{esolt¡tion p-gã* alnd its ¡equirement for submiision of disputes to a process that may include mediation and/or arbitetion. I frx'tñer underst¿nO Urat my crnployrnent of continusd emp¡oymont with thc Compony constitutss ny ûçcoptoncc of the terms of this prcvision as a condition of my employment or continucd employment.

..1-2,4-z^4Án,,-, úamo o f Bmployee (l?rint)

.kØz ffit *"fEmpt"y*

/- 7-rs Dato

FORMUI ÀRIO ACUSANDO BECIBO POR PÄRTE DEL EMPLEADO DEL TEðTO DE-L PRoGRAMA pE AESOLUCTÔN pE DISPUTÀS pE NABORË Por la presente declaro que ho rccibido una copia del texto del Þogroma de Resoluoión de Disputas de Nabors.

Yo sntiendo que ol Ptograma de Resolución de Disputas de Nabots f¡o fepresenta r¡r¡ contråto de emploo enke la Compaf,:fa y mi persono por un periodo do tiempo ospeoffico y no modifioa la ¡elación de empleo a voluntad. La relación de empleo ent¡s la Compaffla y todos los omplcados estó bmoda en un consontimicnto mutuo y puede quedar cesante en cualquier momento, ya sca por mi parto o por perte do la Compo$la, sin oviso previo o prosentaciónde c*usa.

Yo comprendo que ninguna parte del contenido del Progranra de Rosolución de Dspulas liene la intención expresa de violar o limitn¡ los derechos de los cmpleados garantizodos por eI cstado o las loycs fsde¡ales.

Con mi fitma reconozco y ontìendo quo se requiere que yo ournplo oon el Prograrna de Resolución dc Disputas y ol requisito de someter cualquicr disputa a un proooso quo pudiera inolui¡ lo mediación y/o el arbitraje. Adicionalmonte, comprendo que mi ønpleo pfcser¡te o ñ¡truo con la ÇompaffIa repesenta mi ¡cconocimier¡to expreso de los términos de esta disposición conro condiciôn do rni empleo prasente o fi¡ûro.

Nombre del Empleado (Leba do Imprentarlvfolde) Fimra del Empleado

Fecha IRB'I'AIN ¡N EMPLOYEE ST.RVICE FILEì

IESTE FORMULARIO DEBF,RÂ SER COLOCADO EN EL ARCHIVO DDI, EMPLEADO]

EXHIBIT ''I.H''

IIMPL O,Y pE A CKN O wl, EI! G ItI\{lf L'IÍ c-- oNC ErìN IÑ{ì NA.BOR S DISP UTIü Iì E S O LUl't OIJ Pll O GllAl\4

I have received n copy of fhc Nabors f)isputc Rssolutiot¡ Progrntn,

I acknowledge th¿ìt fhe Ernp{oyee Dìsputc Rcsolutiou &'ogranr is nof a eortttilcl of cmirlcyrnenl bet'"vccn tlte Compn¡y on".l ,n" lbr nuy.p""in. timc pcriorl aud <joes not tller the cntployrnent-at-will rclationsl:ip, 'fhc cmpliyrnent relationship bcÌwesn ttre Company nrrd all cnrployccs is bascd on nrrttual consent arrd catt bs termitrated at any linre, eíthe¡ by myself or lhe conrpany, without noti¡":g of requircnretrl of câlìlic.

tunderstand thar. nothing cont¿rined ín thu li"ni¡:loyee D¡spu!c Rcsoìution Pt<tguitr is intcrldcd lo violale or teslticf any ri¡qhts olcmployccs gutranlcetl by slaLe or ledcrll laws'

Ry lìly signÂturc bclow, acknowlcdge an¡l undcrstand thÍll I itnì r'eqtrirecl to adhcrc to ihe Disptrlô Rcsolulir,rr

I

Itrogranrtr-nditsrequirctncnlf'or..subntiisionolriisputcs1ÒâlJroccssllr{lrúnyincluCÈrnedlntìr¡rl¿ttlci/ol'all:itr¿tiorl I

ful.ticr unrlerst¡nt! tlrnÌ nty ernployrlcnt ()r cr¡¡rlinueri errr¡rl<lyrrri:n{ wi¡h thc Cnlll¡rarry cQllsliI(t(ct 'ny âcô€llalìce r,l the tellls of thi* prcvision as a contlitio¡r olnty enrployl¡elll ör c¡¡nti¡l¡.1¿rl em1:lt:¡'ment,

Nnry¡e r¡1' (Print) S - eoA,J* ígnuturc oF'lìnr¡rlr;ycc

- *âa-\3 llate

O

por la presente declaro quc he rccibitlo urra copia ¿jel texto del Progrnmtr de Resr:lirciÓn tie f)isptrtas tìe Nahors

Yo e¡ticn(lo que el llogratn¡l de Resolución de Dìspüt¿rs dc N'¿bors no rep¡'esenfî un co¡1tr¿¡[o de entplc0 cntr-c ltt (.iontparjia y nìi pcrronripor un pcrioclo dc liernpo sspecifìco v no rrtodifica la rclnci<ilr de er.'r¡rleo a volunl¿tJ- [,i¡ rcirclón rle enrpieo entl'e lâ {)ornpar'lía y lodos los empleados está bas¡ida etl un sous*tlilìri*nlo nlullo y ¡rtitde q¡edâr lesante en cnuk¡uier ¡Ìlonìcrltö¡ ya sea por rni ¡railc Õ f)ot'plr'te de lt Cotnpnñía,.tiri avis{) ¡rtcvin o ¡rresentaciór dê cåusfl .

yo comprcrrdo qtre ninguna purte rlol contcnido dcl l't'o¡;rarna ¡lc iìesolucióll <1e Ðísputas tiüne la i¡rtcnciii,r tixprt:i:r de viotaio ljnritar los dcrechos de los crnpicados g'dÌoniizadôs pr:rel esfado o ltts leycs fcdcr:rlc's

(ìon r¡i fì¡r¡ra l.cconoT-oo y entiendo quc sc requiere <tue yo currrpla crrlr cl Progt'¡tr¡a <lc Restlìr¡ciirrr dc I)is¡rutrrs y <1 reqgisito tlc sorngùer cualc¡uicr dìiputu a !lr prooùso quc ¡:trdicra incluir la nl¿di¿lcióIì y/o cl irrhitr'lr.¡r Ajicionalrrsntc, cnrnprendo que nri empleo pt'c-ccnte o h:turo ocrn la Conlpaf'fía rcprcsi),Iliì lni rcoolroointicnfo exprosû de los túrnlino.s de csla disposición cotno contlìciritr tle rni ctnpleo presËntè o {uluro

No¡nbre del Ernpleado (Lc(r'a de Irnprcn ta/Moldc) l¡ilr¡¡r dcl Srnplcado

Fccha lRltl/\¡N IN I jMl'l.fJYlìl; sËlìv¡cu I'lLlrl

ILSl't? I;ORMIJLÂr{,lo t)rtl3lil{.À sritl collx:Alx) [¡i I1l" ÀRÇri]vo Dl.l. l.?,MPl-l;^lx)l

EXHIBIT "l-1"

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANd AS NEXT FRIEND $ FOR and $ mrnot's $ $ v $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGINIA OIL & GAS GP, LLC, $ ç MIKE FERGUSON, TRIFECTA S OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, f¡TC., $ ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. dIb/A $ TFIE OAKS GROUP $ 281ST ruDICIAL DISTRiCT

AFFIDAVTT OF TNtr, RY,AN

STATE OF TEXAS $ $ COUNTY OX'HARRIS $

Before me, the undersignecl notary, on this day personally appeared Katherine Ryan, the affiant, a petson whose identity is knovvn to me. After I aclministered an oath to affìant, the affTant testified:

1 'My name is KathelineRyan. t am ovel 18 years of age, of sound rnind, and capable of making this affidavit. The facts stated in this afficlavit are within nry personal knowledge and are true and correct.

2 I arn an in house attorney for Penn Virginia Corporation, Penn Virginia Corporation is the parent cornpany to Penn Vitginia Oil & Gas, L.P. and Penn Virginia Oif & Gas GP, LLC (collectively, *'Penn Virginia").

3 In my capacity as in house attomeyo I am familiar with Penn Virginia's corporate structurc and the relationship of its various strbsidiaries and affiliatecl companies. I am also farnilial with the Nabors Dispute Resolution Pïogram ('ÐRP").

4. As evidence of Penn Virginia's intent that it participate in the DRP, on September 23, 2008, Ponn Virginia Oit & Gas, L.P., on behalf of itself, its parcnt, subsidiary, ancl afliliated corpomtions agreed to be bound by the DRP as an "Electing Entity" pnlsuant to the "Contractors Special Provisions" containecl in the Intemational Association of Dtilling Contmctors ("IADC") Drilling Contract between it and Nabors Drilling USA LP. '. Atnre and cor:rect copy of the IADC Contlact is attached in its entirety to my afficlavit as

EXHIBIT "2"

Exhibit i-B. The.Contractors Special Provisions portion has been pulled out for'refelence and is attached as Exhibit 1-C.

5 As further evidence of Penn Virginia's intent that it participate in the DRP, on Septenrber 8, 2010, Penn Virgiuia MC Energ¡ LLC, on behalf of itself, its parent, sutrsidiary, and affrliatecl cotporations agteed to be bound by tire DRP as an "Electing Entity" purcuant to tlre "Co¡rtractors Special Provisions" contaitted in the International Association of Drilling Contractors ("IADC") Dlillirig Contract between it and Nabors Drilling USA LP. A true and correct copy of the IADC Contract is attachecl in its entircty to my afnidavit as Exhibit 1-D. The Colrtractols Special Provisions portion lias been pulled out for reference ancl is attached as Exiribit 1-8,

6 As an "Electing Entity," Penn Virginia is recluired to resolve disputes rvittr any past ol present ernployee(s) or applicant(s) of Nabors Inclustries, Lrc. ot its strbsidiaries in accorclance with the DRP,

7 At all times relevant to this matter, Penn Virginia was engaged in interstate conlmerce as it is in the business of producing oil and gas resorrces in both Texas anci other states of the United States."

FURTHER AFFIANT SAYETH NOT

Swom to ancl subscribed before me by Katherine Ryan on the i l day of Jtrne, 2015

VIROINIA F SILVËR

ffi HOTARY PUI¡HO, HY 07 ld Or ?ÉXÀt oOltf¡losl0N BxPlREs SEFT. 3,2016 in anci for My Commission expires:

State ofTexas

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANd AS NEXT FRIEND $ FoR $ , minors $ $ v $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CIIDD $ PRESSURE CONTROL, [NIC., $ ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ THE OAKS GROUP $ 28IST ruDICIAL DISTRICT

ORDER ON DEFENDANTS, PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGINIA OIL & GAS GP. LLC'S MOTION TO COMPEL ARBITRATION AND TO ABATE

On the day of 2015, the Court considered Defendants Penn

Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC's Motion to Compel Arbitration

and to Abate, pending such arbitration. After considering the motion, the Court GRANTS

Defendants Penn Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC's Motion to

Compel Arbitration and to Abate.

Therefore, Plaintiff, Alfredo "Freddie" De La Garza,Individually and as Next Friend of

, and Intervenor, John Paul "J.P." Adame,

Individually and as Next Friend of

, are ORDERED to arbitrate their claims against Penn Virginia Oil & Gas, L.P.

and Penn Virginia Oil & Gas GP, LLC in accordance with the Nabors Dispute Resolution

Program.

It is further ORDERED that this case shall be ABATED until the resolution of such

arbitration.

PRESIDING ruDGE

10/1/20154:56:31 PM Chris Daniel - District Clerk Harris County Envelope No. 7196090 By: GAYLE FULLER F iled: 1 Ol 1 l2o'l 5 4:56:31 PM

CAUSE NO.20t4-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY and AS NEXT FRIEND $ FoR $ , minors $ $ $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, LP, $ PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ THE OAKS GROUP $ 215TH JUDICIAL DISTRICT

PENN VIRGINIA OIL & GAS GPO LLC' AND PENN VIRGINIA OIL & GAS, L'P''S MOTION FOR RECONSIDERATION OF ORDER DENYING MOTION TO COMPEL ARBITRATION

Defendants Penn Virginia Oil & Gas GP, LLC, Penn Virginia Oil & Gas, L.P.

(collectively "Penn Virginia") file this Motion for Reconsideration of this Court's denial of Penn

Virginia's Motion to Compel Arbitration and to Abate.l In support of this Motion for

Reconsideration, Penn Virginia would respectfully show as follows:

1. On June 18, 2015, Penn Virginia timely filed its Motion to Compel Arbitration

and to Abate (hereinafter the "Motion"). An oral hearing was conducted on September 11,2015,

at which time, this Court issued an Order denying Penn Virginia's Motion.

2. As set forth in the Motion, Nabors Industries, Inc. ("Nabors") and its subsidiaries,

one of which is Plaintiff and Intervenor's former employer NCPS, have a valid arbitration

agreement which requires that disputes involving injuries to employees that are incurred during

the course and scope of employment be submitted to final and binding arbitration. The

t S¿¿ Exhibit A, Penn Virginia's Motion to Compel Arbihation and to Abate, and Exhibit B, Court's Order Denying Penn Virginia's Motion to Compel Arbitration and to Abate.

EXHIBIT "C"

arbitration agreement applies to all direct and indirect subsidiaries of Nabors, all current and

former employees of the aforementioned subsidiaries, and any "Electing Entity" that has agreed

to be bound by the terms of the agreement.2 Per the language found in the 2008 Penn Virginia

Oil & Gas LP IADC Contract and the 2010 Penn Virginia MC Energy, LLC IADC Contract (the

"Contracts"), Penn Virginia has agreed on more than one occasion to be bound by the terms of

the arbitration agreement and to become an "Electing Entity."3 Thus, the claims asserted by

Plaintiff and Intervenor against Penn Virginia are subject to arbitration, as set forth in the Nabors

Dispute Resolution Program.

3. For the reasons set forth in the Motion, Penn Virginia's Joint Reply to Plaintiff

and Intervenor's Response to the Motion, and Penn Virginia's separate Reply to Intervenor's

Response, Penn Virginia respectfully requests that the Court reconsider the pleadings, the

evidence set forth therein, and the arguments made by Penn Virginia.

4. To the extent that the basis for the Court's denial was certain language contained

in the Contracts, which provides that Penn Virginia is an Electing Entity as to all disputes with

"present and former employees and applicants of Nabors," Penn Virginia would show that it is

an Electing Entity as to all disputes involving present and former employees at the time the

dispute arises, and not necessarily at the time the contract was entered into.a That is, Penn

Virginia's status as an Electing Entity is not limited to present and former employees as of 2008

or 2010.5 Instead, Penn Virginia is an Electing Entity to the Nabors Dispute Resolution Program

2 Nabors Dispute Resolution Program ("DRP"), a true and conect copy of which is attached as Exhibit C. See 3 See 2008 Penn Virginia Oil & Gas, LP IADC Contract, a true and correct copy of which is attached as Exhibit D; see also Contractors Special Provisions, a true and correct copy of which is attached as Exhibit lD-1, at ![ 16 "Operator, its parent, subsidiary and affiliated corporations, as well as the employees, officers and di¡ectors ofeach (collectively, "Operator") is cognizant of the Nabors Dispute Resolution Program and wishes to become an Electing Entity, as defined in that Program." See also 2010 Penn Virginia MC Energ¡¡ LLC IADC Contract, a true and correct copy ofwhich is attached as Exhibit E; see also Contractors Special Provisions, a true and correct copy of which is attached as Exhibit E- 1, at fl I 6. a,S¿e Exhibit D-l and E-1, both at tf 16.

such that arbitration applies as to all persons who are present Nabors employees or former

Nabors employees at the time of the dispute.6 In support of its position, Penn Virginia provides

the affidavit of Mr. Ernie Nelson, Vice President of Contracts for Nabors, who executed the 2010

Contract on behalf of Nabors.

PRAYER

For the foregoing reasons, Penn Virginia would urge this Court to reconsider its order

denying Penn Virginia's Motion to Compel Arbitration and to Abate. Should this Court grant

Penn Virginia's Motion for Reconsideration, Penn Virginia would urge the Court to reverse its

decision and issue an order granting Penn Virginia's to Compel Arbitration and to Abate.T Penn

Virginia also requests all other and further relief, both special and general, at law and in equity,

to which it may be justly entitled.

5 Exhibit F, Affidavit of Mr. Emie Nelson.

^lee 6 Id. ? Exhibit G, Penn Virginia's Proposed Order granting its Motion to Compel Arbitration and to Abate.

Respectfu lly submitted,

/s/ Kellv C. Hartmann Thomas J. Smith State Bar No. 00788934 tsmith@gallowayj ohnson. com Kelly C. Hartmann State Bar No. 24055631 khartmann@gallowayj ohnson. com Alexis B. Hester State Bar No. 24072807 ahester@gallowayj ohnson. com Genowev, JoFrNSoN, TovprrNis Bunn&Svrrn 1301 McKinney, Suite 1400 Houston, Texas 77010 (713) s99-0700 (7 1 3) 599-07 7 7 - facsimile

Arronnnvs FoR DEFExDANTS, PENN Vrncn{raOrl & Gns GP, LLC lNoPBNx VrRcn¡r¡ Orr, & Grs,L.P

CERTIFICATE OF SERVICE

I hereby certiff that a true and correct copy of the foregoing document has been served electronically, by and through the Court approved electronic filing manager, to participating parties on this 1't day of October 2015, as follows:

John David Hart J. Javier Gutierrez Llw OprrcES OF JonN Davrn H,lnr Ana Laura Gutierrez V/ells Fargo Tower Tnn GurrnnRnz LAw Frnu, INc. 201 Main Street, Suite 1720 700 East Third Street Fort Worth, Texas76102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 36I-664-7245 Counselfor Plaintffi Counsel for Intervenor, John Psul Adame Benjamin A. Escobar, Jr. Brit T. Brown J. J. Knauff BETRNE, M¡ylunn & PansoN, L.L.P. The Miller Law Firm 1300 Post Oak Blvd., Suite 2500 Turtle Creek Centre Houston, Texas77056 381I Turtle Creek Blvd., Suite 1950 Phone 713-623-0887 Dallas, Texas 75219 Fax 713-960-1527 Phone 469-916-2552 Counsel for Defendant, Cudd Pressure Fax 469-916-2555 Control, Inc. Coanselfor Defendønt, Penn Virgínia MC Energy, LLC

/s/ Kelllt C. Hartmann Kelly C. Hartmann

6/18/2015 4:58:00 PM Chris Daniel - District Clerk Harr¡s County Envelope No. 5739243 BY: <<Name>> Filed: 6/18/2015 4:58:00 PM

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANd AS NEXT FRIEND $ FoR $ , minors $ $ $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGINIA OIL & GAS GP, LLC, s MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYWELL SERVICES, INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A ö THE OAKS GROUP $ 28IST ruDICIAL DISTRICT

DEFENDANTS, PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGINIA OIL & GAS GP. LLC'S MOTION TO COMPEL ARBITRATION AND TO ABATE

Defendants, Penn Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC

(collectively referred to hereinafter as "Penn Virginia" unless individual reference is necessary)

file this Motion to Compel Arbitration and to Abate pending such arbitration. In support thereof,

Penn Virginia would show as follows:

I.INTRODUCTION

1. Plaintiff, Alfredo "Freddie" De La Garza ("Plaintiff'or "De La Garza"),

Individually and as Next Friend of , and

Intervenor, John Paul "J.P." Adame ("Adame"), Individually and as Next Friend of

, (collectively "the parties") filed

personal injury claims against Penn Virginia on July 24, 2014 and Novembet 6, 2014,

respectively. Their claims arise out of an April 29,2014 incident, which occurred at a well site

EXHIBIT "A''

located near Shiner, Texas while De La Garza and Adame were working in the course and scope

of their employment with Nabors Completion & Production Co. ("NCPS").

2. Nabors Industries, Inc. ("Nabors") and its subsidiaries, one of which is NCPS,

have a valid arbitration agreement which requires that disputes involving injuries to employees

that are incurred during the course and scope of employment be submitted to final and binding

arbitration. De La Garza and Adame both acknowledged and accepted the terms of the

arbitration agreement.

3. The arbitration agreement applies to all direct and indirect subsidiaries of Nabors,

all current and former employees of the aforementioned subsidiaries, and any "Electing Entity"

that has agreed to be bound by the terms of the agreement.r Penn Virginia is an "Electing Entity"

and has agreed on more than one occasion to be bound by the terms of the agreement.z De La

Garza's and Adame's individual claims fall within the scope of the arbitration agreement as both

were employees of NCPS at the time of the incident and allege that their injuries occurred while

in the course and scope of their employment. De La Garza and Adame also filed claims as

representatives of their minor children. The minors' claims are also subject to the arbitration

agreement as they are derivative of De La Garza and Adame's claims. Consequently, De La

Garza and Adame's individual claims against Penn Virginia and the claims filed on behalf of

their minor children all fall within the scope of the arbitration agreement.

4. Therefore, Penn Virginia's Motion to Compel Arbitration should be granted, and

this case should be abated or dismissed and compelled to final and binding arbitration.

I See Nabors Dispute Resolution Program ("DRP'), a true and correct copy of which is attached as Exhibit 1-4. 2 See 2008 Penn Virginia Oil & Gas, LP IADC Contract, a true and correct copy of which is attached as Exhibit l- B; see also Contractors Special Provisions, a true and correct copy of which is attached as Exhibit 1-C, at fl 16 "Operator, its parent, subsidiary and affiliated corporations, as well as the employees, officers and directors ofeach (collectively, "Operator") is cognizant of the Nabors Dispute Resolution Program and wishes to become an Electing Entity, as defined in that Program." See also 2010 Penn Virginia MC Energlt, LLC IADC Contract, a true and correct copy of which is attached as Exhibit l-D; see also Contractors Special Provisions, a true and correct copy of which is attached as Exhibit l-E, at fl 16.

II. I]NDISPUTED FACTS

5. Nabors is the "Sponsor" of the Nabors Dispute Resolution Program ("DRP"), as

that term is defined by the DRP.3

6. The DRP is subject to the Federal Arbitration Act ("FAA").4

7. By its terms, the Nabors DRP is designed to provide a means for the resolution of

disputes between the "Company" and the Company's present and former employees that are

related to or that arise out of a current or former employment relationship with the Company.s

8. The DRP is intended to create an exclusive procedural mechanism for the final

resolution of all disputes falling within its terms.6 Consequently, the DRP requires that all

disputes between De La Garza, Adame and the Company are subject to binding arbitration.T

9. The DRP defines "Dispute" to include personal injuries that arc incurred at the

worþlace or in the course and scope of employment.s

10. The DRP defines "Company" as "Sponsor and every direct and indirect

subsidiary...ofSponsor,@.',9Aspreviouslymentioned,Naborsisthe

3 Afiidavit oJ' Keith Nicholson ("Nicholson Afn "), a true and conect copy of which is attached as Exhibit I, at I 4; see also Exhibit I -4, at fl 2(L).

fl fl 2(C) and 8. The Federal Arbitration Act, 9 U.S.C. $ 2, applies in state courts and preempts a See Exhibit 1-A at

state anti-arbitration laws to the contrary. Circuit City Stores, Inc. v. Adams, 121 S.Ct. 1302;' Southland Corp v. Keating,465U.S. 1, 16(1984); seealsoPalmHarborHomesv.McCoy,944S.W.2dT16,T2l (Tex.App.-Fort Worth 1997) (holding that FAA preempted Texas Arbitration Act's requirement that party's attomey sign agreement). Although the FAA preempts state arbitration laws, courts still must resort to general state law contract principles to determine whether an arbitration agreement will be enforced. 5 ,Se¿ Exhibit l-4, at fl l. 6 See Exhibit l-4, at 'lf l.

7 See Exhibit l-4.

8 "Dispute" means all legal and equitable claims, demand and controversies, of whatever nature or kind, whether in contract, tort, under statute or regulation, or some other law, between persons bound by the Program or by an agreement to resolve Disputes under the Program, or between a person bound by the Program and a person or entity otherwise entitled to its benefits, including, but not limited to, any matters with respect to...6. any personal injary allegedly incuned ín or about a Company Workplace or ín the course and scope of an Employee's employment. .See Exhibit 1-A at tf 2(E) (emphasis added). e ,!¿¿ Exhibit l-A at !f 2(D) (emphasis added).

"Sponsor" of the DRP. NCPS, De La Garza and Adame's employer at the time of the workplace

incident, is a subsidiary of Nabors.r0 The DRP extends to and includes employees ofNCPS.rr

11. Further, Penn Virginia is an "Electing Entity" and agreed to be bound by the

terms of the DRP in two IADC Contracts between it and Nabors.l2 As an "Electing Entity," Penn

Virginia is required to resolve disputes with any past or present employee(s) or applicants of

Nabors in accordance with the DRP.I3

12. On January 2, 2013, Adame executed a document entitled "Application For

Hourly And Daily Employment," as well as another document entitled "Notice to Applicants

Regarding Dispute Resolution Program."l4 Likewise, on July 16,2013, De La Garza executed

the "Application For Hourly And Daily Employment" and the "Notice to Applicants Regarding

Dispute Resolution Program."l5 De La Garza and Adame, by their signatures, acknowledged and

agreed that they would be "required to adhere to the Dispute Resolution Program and its

requirement for submission of all claims to...arbitration."16

13. On January 7,2013, Adame also executed a document entitled "Employee

Acknowledgement Concerning Nabors Dispute Resolution Program."17 The document

specifically states, "I have received a copy of the Nabors Dispute Resolution Progtam."l8 De La

Garza executed the same document on J:uly 22, 2013.1e De La Garza and Adame, by their

to See Nicholson Aff. at\6. tt See Nicholson Aff. atl 6; see also Affidavit ol Katherine Ryan, a true and correct copy ofwhich attached as Exhibit 2. t2 Nicholson Aff. at\l7 through 9; see also Exhibits 1-B and 1-D; see a/so Exhibits 1-C and l-E, at fl 16.

See t3 See Nicholson Aff. at \ l0; see als o Exhibits I -B - I -G. ta See Nicholson Aff. atl L2; see also Exhibit I -F. ts See Nicholson Aff. atl L6; see also Exhibit I -G. t6 See Nicholson Aff. atll 12 and 16; see also Exhibit 1-F and l-G. t7 Nicholson Aff. atl 13; see also Exhibit I -H.

fl 13; see also Exhibit l-H.

t8 Nicholson Aff. at te Nicholson Aff. atl 17; see also Exhibit I -I.

signatures, again acknowledged and agreed that they would be "required to adhere to the Dispute

Resolution Program and its requirement for submission of all claims to. . . arbitration."2O

14. On April 29,2003, Adame was hired by Nabors V/ell Services, Ltd. as a crew

worker.2l On January 7,2013, as a result of a business reorganization, he became a crew worker

for NCPS when Nabors Well Services, Ltd. liquidated into Nabors Well Services, Co., which

liquidated and dissolved into NCPS .22 As a crew worker, Adame's job duties and responsibilities

included the operation of hand and power tools to perform maintenance and repairs to oil or gas

wells and related equipment. Adame's job duties also involved activities associated with rigging-

up and rigging-down workover rigs, pulling levers or tuming handles to extend hydraulic or

screw-type jacks to support and level the rig, laying steel production rods, tubing, and casing,

and other tasks necessary to support operations.23 Adame's job duties and responsibilities did not

include the movement of goods in interstate commerce.2a While employed by NCPS, Adame was

never employed as a commercial truck driver or transportation worker.25

15. On July 22,2013, De La Garzawas hired by NCPS as a crew worker.26 As a crew

worker, De La Garza'sjob duties and responsibilities included the operation of hand and power

tools to perform maintenance and repairs to oil or gas wells and related equipment. De La

Garza's job duties also involved activities associated with rigging-up and rigging-down

workover rigs, pulling levers or turning handles to extend hydraulic or screw-type jacks to

support and level the rig, laying steel production rods, tubing, and casing, and other tasks

necessary to support operations.21 DeLa Garza'sjob duties and responsibilities did not include

20 Nicholson Aff,, at flfl 13 and 17; see also Exhibit I -E. 2t Nicholson Aff. atnÁ. 22 Nicholson Aff at fl 14. 23 Nicholson Aff. atl 14. 24 Id. 25 Id. 26 Nicholson Aff. at tf 18. 21 NicholsonAff. attf 18.

the movement of goods in interstate commerce.2s While employed by NCPS, De La Garza was

never employed as a commercial truck driver or transportation worker.2e

16. On July 24, 2014, De La Garua filed his Original Petition, and on September 8,

2014 and October I, 2014, De La Garza filed his First and Second Amended Petitions.30

Likewise, on November 6, 2014 and February 19, 2015, Adame filed his Original and First

Amended Petitions in Intervention.3l A copy of all pleadings are maintained in the Court's

records. De La Garza and Adame allege that on April 29,2014 and while working for NCPS,

they were injured when a piece of NCPS line pipe parted, causing both to be thrown back as a

result ofthe released pressurized gas.32

III. SUMMARY OF THE ARGUMENT

17. The Company (defined to include Nabors, its subsidiaries, and any "Electing

Entity") has a valid arbitration agreement, which both De La Gana and Adame acknowledged

and accepted. Because Penn Virginia is an "Electing Entity," the parties' claims against Penn

Virginia fall within the scope of the arbitration agreement. Consequently, the parties' claims

must be submitted to final and binding arbitration in accordance with the DRP. Therefore, Penn

Virginia's Motion to Compel Arbitration should be granted and this case should be abated.

IV. ARGUMENT & AUTHORITIES

18. Pursuant to the DRP, the parties' lawsuit must be submitted to binding arbitration.

It is undisputed that Texas courts recognize that arbitration agreements in an "at-will"

employment setting apply to personal injury claims. In fact, there is a strong presumption in

Texas favoring arbitration. See Circuit City Stores, Inc. v. Adams, l2l S. Ct. 1302 (2001); 28 Id.

2e Id.

30 s Original Petition, First Amended Petition, and Second Amended Petition.

Plaintiff 3rAdame's Original Petition in Intervention and First Amended Petition in Intervention. 32 SeePlaintifls Original Petition and First Amended Petition, as well as Adame's Original Petition in Intervention

and First Amended Petition in Intervention.

Cantella & Co. v. Goodwin,924 S.W.2d 943 (Tex. 1996); Jack B. Anglin v. Tipps,842 S.V/.2d

266, 268 (Tex. 1992). If a valid arbitration agreement exists, and the claims are within the

agreement's scope, atrial court has no discretion and must compel arbitration. Cantella,924

S.W.2d at 944; Shearson Lehman Bros., Inc. v. Kilgore, 871 S.W.2d 925, 928 (Tex. App.- Corpus Christi, 1994, orig. proceeding).

19. The clear language of the DRP states that the Federal Arbitration Act, 9 U.S.C. $

1, et. seq. ("FAA") controls.33 The Texas Supreme Court has held that in cases where the FAA

is stated in the agreement as the controlling law, the FAA prevails. EZ Pawn Corp. v. Mancias,

934 S.V/.2d 87,91 (Tex. 1996). In adjudicating a motion to compel arbitration under the FAA,

courts generally try to determine whether the parties agreed to arbitrate the dispute in question.

Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 626 (1985); Folse v.

Richard Wolf Medical Instruments Corp., 56 F.3d 603, 605 (5th Cir. 1995); R.M. Perez &

Assocs., Inc. v. IIlelch, 960F.2d,534, 538 (5th Cir. 1992).

20. Under the FAA, the court applies ordinary state contract law principles in order to

decide whether a valid arbitration agreement exists. See In re D. ll'ilson Constr. Co., 196 S.W.3d

774, 781 (Tex. 2006) (citing First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944

(1995)); 9 U.S.C.A. $ I et seq.; Ctv. Pnec. & REn¿. Cone $ 171.001 et seq. Once a valid

arbitration agreement is established, a presumption attaches favoring arbitration. Dallas

Cardiology Assoc., P.A. v. Mallick,978 S.W.2d 209,212 (Tex. App.-Dallas, 1998, pet. denied).

Then Court must then determine whether the arbitration agreement covers the non-movant's

claims. In re Jim Walter Homes, lnc.,207 S.W.3d 888 (Tex. App.-Houston [14th Dist.] 2006).

In doing so, a court must focus on the complaint's factual allegations rather than the legal causes

of action asserted. Id.

33 .S¿e Exhibit 1-A at fl !f 2(C) and 8.

21. Thus, two questions guide the determination of whether Penn Virginia's Motion

to Compel should be granted: 1) is there a valid agreement to arbitrate; and 2) does the dispute in

question fall within the scope of the agreement? Associated Glass, Ltd. v. Eye Ten Oaks Invs.,

Ltd., 147 S.W.3d 507,511 (Tex. App.-San Antonio 2004, no pet.).

A. Valid Aereement to Arbitrate

22. An "at-will" employee who receives notice of an employer's arbitration policy

and continues or commences employment accepts the terms of the agreement as a matter of law.

See In re Halliburton, 80 S.V/.3d 566 (Tex. 2002); In re Dallqs Peterbilt, Ltd., L.L.P., 196

S.W.3d 16l, 162 (Tex. 2006) . In Halliburton, the employer created a dispute resolution program

which obligated both employees and the employer to arbitrate all disputes between them. See

Halliburton, 80 S.V/.3d at 566. The Texas Supreme Court held that the employer was justified

in giving notice to all employees of the program and informing them that by continuing to work

after the adoption of the program, employees would be considered to have accepted the program.

See id at569-71.

23. Four years later, the San Antonio Court of Appeals extended Halliburton even

further. Relying on Halliburton, lhe Fourth Court of Appeals compelled arbitration where the

employee expressly refused to sign an arbitration agreement but continued to work after

receiving notice of the arbitration requirement. In re &RGT, Inc.,2006WL 622736 (Tex. App.- San Antonio 2006, orig. proceeding).

24. It should also be noted that the San Antonio Court of Appeals has specifically

considered the Nabors DRP and held that it is valid and enforceable on multiple occasions. S¿e

NDUSA USA, LP v. Pena,385 S.W.3d 103 (Tex. App.-San Antonio 2012, pet. denied);

NDUSA USA, LP v. Carpenter, 198 S.V/.3d 240,249 (Tex. App.-San Antonio 2006, orig.

proceeding). Furthermore, in October 2013 and, then again in December 2013, the Texas

Supreme Court denied the family of a deceased Nabors' employee's petition for review when the

family sought to reverse the Fourth Court of Appeals' determination that the DRP was valid and

enforceable. See Pena,385 S.W.3d 103

25. De La Garza and Adame executed documents on several occasions that clearly

express both parties' agreement to the terms of the DRP.3a The documents specifically state that

De La Gana and Adame acknowledged receiving, reviewing, understanding, and accepting the

DRP's requirement to submit disputes to arbitration.3s De La Garza and Adame's signatures on

the aforementioned documents is strong evidence of their actual acknowledgment and agreement

that they are required to adhere to the DRP. See In re Bunzl USA, 155 S.V/.3d 202 (Tex. App.- El Paso 2004, orig. proceeding).

26. De La Garza and Adame accepted the terms of the DRP as a maller of law.

Therefore, a valid and enforceable agreement to arbitrate was formed. In re Palm Harbor

Homes, Inc., 195 S.W.3d 672,676 (Tex. 2006).

B. The Disnute Falls Within the Scope of the Asreement

27. The parties' claims fall within the scope of the DRP. The DRP requires that

disputes between the Company (defined as Nabors, its subsidiaries, and any "Electing Entity")

and its current or former employees be submitted to arbitration. According to the parties'

Petitions, De La Garza and Adame were both employees of a Nabors' subsidiary (NCPS) and

both were allegedly injured while in the course and scope of their employment. Consequently,

this dispute, which is between NCPS employees and Penn Virginia (an "Electing Entity"), falls

within the scope of the agreement.

3a See Nicholson Aff, atfl\ 12,73,16, and l7; see also Exhibits 1-F - l-I.

3s NicholsonAff. at!ffl 12, 13, 16, and l7;see also Exhibits l-F - 1-I.

28. Whether a claim falls within the scope of an arbitration agreement depends on the

factual allegations of the complaint rather than the legal causes of action asserled. Prudential

Secs., Inc. v. Marshall, 909 S.W.2d 896, 899 (Tex. 1995) ; Ikon Office Solutions, Inc. v. Eifert, 2

S.W.3d 688,697 (Tex. App.-Houston !4th Dist.l 1999, orig. proceeding); Prudential-Bache

Secs., Inc. v. Garza,848 S.V/.2d 803, 807 (Tex. App.-Cotpus Christi 1993). Based on the

factual allegations contained in the parties' pleadings, the parties' claims fall squarely within the

scope of the DRP.

29. It is undisputed that De La Garza and Adame were employed by NCPS, which is

a Nabors subsidiary.36 It is undisputed that La Garza and Adame both alleged that they were

injured at the worþlace and/or in the course and scope of their employment.3T

30. De La Garza and Adame signed an acknowledgement that specifically states, "I

have received a copy of the Nabors Dispute Resolution Program...and understand that I am

required to adhere to the Dispute Resolution Program and its requirement for submission of

disputes to...arbitration."38 All of these terms are clearly defined in the DRP.

31. The DRP clearly and unequivocally states that it "applies to and binds the

Company, each Employee and Applicant."3e The DRP defines "Dispute" to include any personal

injury that is incurred at the worþlace or in the course and scope of employment.a0 According

to the DRP, "Company" means "Sponsor and every direct and indirect subsidiary...of Sponsor,

(and) any Electing Entity."+t

36 Nicholson Aff.atn T 6, ll through 15; see a/so Plaintiffs Original Petition and First Amended Petition, and Adame's Original Petition in Intervention and First Amended Petition in Intervention. 37 S¿e Plaintifls Original Petition and First Amended Petition and Adame's Original Petition in Intervention and

First Amended Petition in Intervention. 38 NicholsonAlf. atfltf 13 and 16; see also Exhibits l-H and 1-I (emphasis added). 3e,S¿e Exhibit 1-4, at rlf l. ao,S¿¿ Exhibit 1-A at !f 2(E). al See Exhibit 1-A at 2(D).

!f

32. Nabors is the "Sponsor" of the DRP.a2 NCPS is a subsidiary of Nabors.a3 Penn

Virginia is an "Electing Entify" and agreed that it is bound by the terms of the DRP.44 Therefore,

Penn Virginia falls within the scope of the "Company."

33. The parties' claims clearly fall within the scope of the arbitration agreement.

Consequently, Penn Virginia's Motion to Compel Arbitration should be granted and this case

should be abated or dismissed and compelled to final and binding arbitration.

V. CONCLUSION

34. Nabors has instituted a comprehensive dispute resolution program, which requires

arbitration of disputes between the Company (which is defined as Nabors Industries, Inc., its

subsidiaries, and any "Electing Entity") and current or former employees. De La Garza and

Adame unequivocally agreed to adhere to the DRP and its requirement to submit all claims to

arbitration. The DRP applies to personal injuries that occur at the worþlace or while the

employee is in the course and scope of his employment. Therefore, the parties' claims, as

asserted in this lawsuit, are subject to the terms of the DRP. Consequently, Penn Virginia's

Motion to Compel Arbitration should be granted and this case should be abated or dismissed and

compelled to final and binding arbitration.

PRAYER

For the foregoing reasons, PENN VIRGINIA OIL & GAS, L.P. and PENN VIRGINIA

OIL & GAS GP, LLC request that the Court grant this Motion, abate or dismiss this action, and

order that the claims asserted by Alfredo De La Garza,Individually and as Next Friend of I

, and Intervenor, John Paul Adame, Individually and as

Next Friend of , be

42 Nicholson Aff. atl4; see also Exhibit 1-4, at fl 2(L).

43 NicholsonAff. atl 6.

4 See Nicholson Aff. at\l7 through L0; see also Exhibits l-C and 7-8, at Contractors Special Provisions,llí.

compelled to final and binding arbitration. PENN VIRGINIA OIL & GAS, L.P, and PENN

VIRGINIA OIL & GAS GP, LLC further request all other relief to which they are entitled.

Respectfully submitted,

/s/ Thomas J. Smith Thomas J. Smith State Bar No. 00788934 tsmith@gallowayj ohnson. com Kelly C. Hartmann State Bar No. 24055631 khartmann@gall owayj ohn son. c om Alexis B. Hester State Bar No. 24072807 ahester @gall owayj ohns on. com G¡nowev, JoFrNSoN, TotuprrNs Bunn & Svnn 1301 McKinney, Suite 1400 Houston, Texas 77010 (713) s99-0700 (7 I 3) 599-07 77 - facsimile

Attorneys for Defendants, Penn VÍrgÍnia OÍI8t Gas, L.P. and Penn VirgÍnÍa OiI & Gas GP, LLC

CERTIFICATE OF SERVICE

I hereby certiff that a true and correct copy of the foregoing document has been served electronically, by and through the Court approved electronic filing manager, to participating parties on this 18th day of June 2015, as follows:

John David Hart J. Javier Gutierrez Llw Orrrcns OF Jorn D.nvrn Hlnr Ana Laura Gutierrez Wells Fargo Tower Tun GurrnRnnzLtw Fmvr, Inc. 201 Main Street, Suite 1720 700 East Third Street Fort V/orth, T exas 7 6102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 361-664-7245 Counsel for Plaintiff, Individually and as Counsel for fntervenor, Next Friend of .fohn Paul Adøme, Indìvìdually and øs Next Minor Chíldren Friend of

Benjamin A. Escobar, Jr. Brit T. Brown BEIRNE' M¡yll,lRn & Plnson, L.L.P. 1300 Post Oak Blvd., Suite 2500 Houston, Texas 77056 Phone 713-623-0887 Fax 713-960-1527 Coansel for Defendant, Cudd Pressure Control, Inc.

/s/ Thomas.I. Smith Thomas J. Smith

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANC1 AS NEXT FRIEND $ FOR $ mlnoïs $ $ ç HARRIS COLINTY, TEXAS $ PENN VIRGINIA OlL & GAS, LP, 0 PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA 0 OILFiËLD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYWELL SERVICES,INC. and OAI(S Ò

PERSONNEL SERVICES, lNC. cllb/a $ ST THE OAI(S GROUP a 28 1 JUDICIAL DISTRICT

VE,RIFICATION

STATE OF TEXAS $ $ COUNTY OF HARRIS $

BEFORE ME, the undersignecl authority on this day personally appeared Thomas J.

Smith, who after being cluly sworn upon his oath stated as follows:

1. "My narne is Thomas J. Smith. I am over twenty-one (21) years of age. I am of sound

mincl anct in all ways competent to make this verification,

2. I am one of the attomeys of record for Dcfendants, Penn Virginia Oil & Gas, L.P. and

Penn Virginia Oil & Gas GP, LLC. I have personal knowledge of the facts stated in this affidavit

and those facts are truc and correct.

3. I have revicwcd the foregoing Motion to Compel Arbitration and to Abate this case

pcnding such arbitration. In nly personal knowledge, the Motion truly and correctly recites the

factual allegations set forth in tire pleadings ancl the evidence in the trial court record,"

J

SUBSCRIBED ÀND,SWORN TO before me a notary public, which witness mY hand and seal of this office this/fday of June, 2015.

Notary Public in and for ofTexas THoNDA SÇilMrZ Nolory Publlc, Slote of Texqs MyCommlsslon Êxpkcs Dacrmber 13,2018

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANd AS NEXT FRIEND $ FOR $ , minors $ $ $ HARRIS COLINTY, TEXAS $ PENN VIRGINIA OTL &, GAS, LP, $ PENN VIRGINIA OTL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYV/ELL SERVICES, INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ ST THE OAKS GROUP $ 28 I JUDICIAL DISTRICT

AFFIDAVIT OF KEITH NICHOLSON

STATE OF'TEXAS $ $ ,* COLINTY OF HARzuS Y

Before me, the undersigned notaryo on this day personally appeared Keith Nicholson, the affrant, a person whose identity is known to me. After I administered an oath to affiant, the affiant testified:

I "My name is Keith Nicholson. I am over 18 years of age, of sound mind, and capable of making this affidavit. The facts stated in this affrdavit are within my personal knowledge and are true and correat.

2. I am Assistant General Counsel for Nabors Corporate Services, Inc. a J In my capacity as Assistant General Counsel, I am required to be familiar with Nabors Industries, Inc.'s corporate structure and the relationship of its various subsidiaries and affiliated companies. I am also required to be familiar with the Nabors Dispute Resolution Program ("DIUt"¡.

4 Nabors Industries, Inc. is the "Sponsor" of the Nabors DRP as that term is defined by the DRP. A true and correct copy of the DRP is attached to my affrdavit as Exhibit 1-4.

5 The DRP provides that it applies to all direct and indirect subsidiaries of Nabors Inclustries, Inc., as well as all "Electing Entities" that have agreed to be bound by same.

6. Nabors Completion & Production Services Co. ("NCPS") was a subsidiary of Nabors

EXHIBIT "I"

Industries, Inc. at the time of the Aprl|29,2014 incident which makes the basis of the lawsuit.

7 On September 23,2008, Penn Virginia Oil & Gas, LP agreed to be bound by the DRP as an "Electing Entity" in the "Contractors Special Provisions" containsd in the International Association of Drilling Contractors ("IADC") Drilling Contract between it and Nabors Drilling USA LP. A true and correct copy of the IADC Contract is attached in its entirety to my affidavit as Exhibit 1-8. The Contractors Special Provisions portion has been putled out for reference and is attached as Exhibit 1-C.

I The Contractors Special Provisions page states at paragraph l6 that "Operator, its parent, subsidiary, and affiliated corporations,..(collectively "Operator") is cognizant of the Nabors Dispute Resolution Program and wishes to become an Electing Entity, as defined in that Program. Accordingly, Operator and Nabors Industries, Inc. ("Nabors") hereby agree that Operator is an Electing Entity..."

9 In addition, on September 8,2010, Perur Virginia MC Energy, LLC agreed to be bound by the DRP as an "Electing Entity" in the "Contractors Special Provisions" contained in the International Association of Drilling Contractors ("IADC") Drilling Contract between it and Nabors Drilling USA LP. A true and correct copy of the IADC Contract is attached in its entirety to my affidavit as Exhibit I -D. The Contractors Special Provisions portion has been pulled out for reference and is attached as Exhibit l-E. It is my understanding that Penn Virginia MC Energy, LLC is a subsidiary or affiliated corporation of Penn Virginia Oil & Gas, LP andlor Penn Virginia Oil & Gas GP, LLC,

l0 As an "Electing Entity," Defendants, Penn Virginia Oil & Gas, LP and Penn Virginia Oil & Gas GP, LLC are required to resolve disputes with any past or present employee(s) or applicant(s) of Nabors Industries, Inc. or its subsidiaries in accordance with the DRP.

l1 Based upon my review of the personnel file of Mr. Adame, I can confirm that Mr. Adame was employed by NCPS, and that he executed various documents that acknowledged that he received, reviewed, and accepted the terms and conditions of the DRP.

12, Specifically, my review of the relevant documents confirms that on January 2,2013,Mr.

Adame executed a document entitled "Application For Hourly And Daily Employment," ahue and correct copy of which is attached as Exhibit 1-F. Mr. Adame acknowledged and agreed by his signature that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to...arbitration."

13 Further, on January 7,2013, Mr. Adame executed a document entitled "Employee Acknowledgement Concerning Nabors Dispute Resolution Progtam," a true and correct copy of which is attached as Exhibit l-H. The document specif,rcally states, "I have received a copy of the Nabors Dispute Resolution Program." Mr. Adame acknowledged and agreed by his signature that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to.,.arbitration."

t4. Mr. Adame was employed by NCPS as a crew worker. As a crew worker, Mr. Adame's job duties and responsibitities included the operation of hand and power tools to perform maintenance and repairs to oil or gas wells and related equipment. Mr. Adame's job duties also involved activities associated with rigging-up and rigging-down work over rigs, pulling levers or turning handles to extend hydraulic or screw-type jacks to support and level the rig, laying steel production rods, tubing, and casing, and other tasks necessary to support operations. While employed by NCPS, Mr. Adame was never a commercial truck driver or transportation worker.

l5 Based upon my review of the personnel frle of Mr, Alfredo De La Gatza,I can confirm that Mr. De La Garza was employed by NCPS, and that he executed various documents that acknowledged that he received, reviewed, and accepted the terms and conditions of the DRP.

16 Specifically, my review of the relevant documents confir'ms that on July 16, 2013, Mr. De La Garza executed a document entitled "Application For Hourly And Daily Employment," a true and correct copy of which is attached as Exhibit 1-G. By his signature, Mr. De La Garza acknowledged and agreed that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to. ..arbitration,"

17. Further, on July 22,2013, Mr. De La Garza executed a document entitled "Employee Aoknowledgement Concerning Nabors Dispute Resolution Program," a true and conect copy of which is attached as Exhibit 1-I. The document specifically states, "I have received a oopy of the Nabors Dispute Resolution Program." Mr. De La Garua acknowledged and agreed by his signature that he is "required to adhere to the Dispute Resolution Program and its requirement for submission of all claims to. . . arbitration."

18 Mr. De LaGarua was employed by NCPS as a crew worker. As a crew worker, Mr. De La Garza'sjob duties and responsibilities included the operation of hand and power tools to perform maintenance and repairs to oil or gas wells and related equipment. Mr. De La Garza's job duties also involved activities associated with rigging-up and rigging-down work over rigs, pulling levers or turning handles to extend hydraulic or screw-type jacks to support and level the rig, laying steel production rods, tubing, and casing, and other tasks necessary to support operations. Mr. De La Garza'sjob duties and responsibilities did not include the movement of goods in interstate commerce. While employed by NCPS, Mr. De LaGarza was never a commercial truck driver or transportation worker.

19. At all times relevant to this matter, NCPS was engaged in interstate commerce as it was in the business of providing services for the development of oil and gas resources that are placed into commerce in both Texas and other states of the United States.

20. On information and beliet Penn Virginia is also engaged in interstate commorce as it is in the business of producing oil and gas resources that are placed into commerce in both Texas and other states of the United States.

21 Attached as Exhibitl-A to my affidavit is a true and correct copy of Nabors Industries, Inc.'s DRP booklet, in English and Spanish, respectively. These records are kept by Nabors Industries, Inc. in the regular course and scope of business, and it was the regular course of business of Nabors Industries,Inc. for an employee or representative of Nabors Industries, Inc,, with knowledge of the act ot event that was recorded, to make these rçcords or to transmit the information to be included in these records. These records were made at or near the time or reasonably soon after the act or event that was recorded.

22. Attached as Exhibit 1-B to my affidavit is a true and correct copy of the 2008 IADC Drilling Contract between Nabors and Penn Virginia Oil & Gas, LP, and attached as Exhibit l-C is a true and correct copy of the portion of the IADC contract titled "Contractors Special Provisions." These records are kept by Nabors Industries, Inc. in the regular course and scope of business, and it was the regular course of business of Nabors Industries, Inc. for an employee or representative of Nabors Industries, Inc., with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records werc made at or near the time or reasonably soon after the act or event that was recorded.

23 Attached as Exhibit l-D to my affidavit is a true and correct copy of the 2010 IADC Drilling Contract between Nabors and Penn Virginia MC Energy, LLC, and attached as Exhibit 1-E is a true and correct copy of the portion of the IADC contract titled "Contractors Special Provisions." These records are kept by Nabors Industries, Inc. in the regular course and scope ofbusiness, and it was the regular course ofbusiness ofNabors Industries, Inc. for an employee or representative of Nabors Industries, Inc., with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records were made at or near the time or reasonably soon after the act or event that was recorded.

24. The records attached as Exhibits 1-F, 1-G, 1-H, and 1-I are true and correct copies of records that are kept by NCPS in the regular course and scope of business, and it was the regular course of business of NCPS for an employee or representative of NCPS, with knowledge of the act or event that was recorded, to make these records or to transmit the information to be included in these records. These records were made at or near the time the act or event that was recorded."

FUR

Sworn to and subscribed before me by on the dâ* ofJune,20l5

ú -l-

(.>-

Notary in and for the ofTexas MAnY D. HotstiletoN Notory Publlc, Slole ot fetos My Commission expires My CommlErlon Explre8 Moy 05, 20tt

NABORS DISPUTE RESOLUTION PROGRAM and RULES

Copies of this patnphlel are avqilahle in S¡tanislt, upon vç.q'u e S t, .fr"rs m a nj' Jtl6 b or'ç s u Í¡ s i d i a 4t' s Hu ntcut Re s out'ce s D eP arl m e nt.

C.opías de este folleîo e sl:Qtt disponible en español, con sal.o requer'ùlas al Depa.rlamettîo de Recursos t"t,, * -.,n a n r- ¡"'f¡A*,'t ñ t, ^..^ EX}fl BI T' ^t^

TIIE I. BORS DISPUTE RESOLUTION P} GRAM

1. Purpose and Construction

The Prograrn is designed to plovide &means for the quick, fair, accessible, and inexpensive resôluti.on of Disputes between Company and the Company's the present and formei Employees and Applicants for enrploynrent, related fo or arising out of a current fo¡mer or potenlial employment relationship with the Company. The Program is intended to oreatÉ a¡r exclusive procedural mechanisnr for the filal resolution of all Disputes falling within its tenns. It is not inteuded either to abridge or enlarge zubstantive rights available under applieäblë lãw The Program contractually modifi es the'oat-wilf ' ernployilreûf relatiorrship" "bellÀ'eelí the Com¡rany "and its -' Employees, but only to the extent expressly stated in the Program. The Program should be interpreted in accordance with these PutPoses.

2, I)cfÏnitions

A, '¿AAA" meâns the A¡nerican Arbitration Association'

B. "JAMS' means Judíoial Arbitration and Mediation Servises,

C. The 'oAcÎ" meâns the Federal Arbi'ration Act, 9 U.S.C.ô1, et seq., as a¡rended from time to time'

D. "Coflipâny" means Sponsor and every direct or indirect suhsidiary (whether a co¡poration, limited liability company, courpany partnership or other legai entity) of Sponsor, any Eiecting Entity, any entity or psrson alleged to have joint and several liability concerning aly Dispute, and all of their directors, officers, employees, and agents, every plan ofbenefits , whether or not tax-exempt, establishcd o¡ maintained by any such entity, the fiduciaries, agents and employees ofall suoh plans, and thç successors and assÍgns ofall such entities, plans and persons; provicled , howcver, rhat in the case of an Electing Entity, "Company" shall inolude the Electing Entity only to the extent provided in the Electing Entity's agreement to Lre borurd bY the Program.

E. "Dispute" means ali legal ald equitable elaims, demands, a¡d controversies, of whatever nature or kind, whether in contrac! tort, under staûite or regu' lation, or sôme other law, between persons bound by tlre Program or by an agleement to resolve Ðisputes ler the Program, or between a person I nd by the Program and a person or entity otberwise e¡titled to its benefits, including, but not litnited to, any matlers wilh respect tol

1. this Program;

2. the employmenl or potential reemployment of an Employee, including the terms, conditions, or terrnination of such employment with úe Company;

3. employee'benefits or incidents of employment with the Company;

-' ' 4; or concerning"'dre - '

any-"ul'her'matter rslated -torelationship between the Employee and tire Company including, by way of example and without limitatio4 allegations ofi discrimination based on raoe, sex, religion, national origin, age' veteraü status or disabifity; sexual or olher kinds of harassment; workers' ccirnpensafion retaliatiou ; defanration; infliction of emotional distress, antitrust claim conoeming wages or othorwise, or stâtus, claim or membership with regard to any employee benefit plan;

5. an Applicant's application for employment and the Company's actions and decisions regarding such application; and

6. any personøJ injury allegedly incurred iu or about a Company workplace or in the course and scope of an Employee's employmenl

"Dispute" includes all such matters regatdless of when the events on whioh they are based occurred, including nlatters based on events occurrirrg before the Ernployee became subject to this Program (so long as such disputes were not previously asserted in a judicial forurn) or after termination of the employment relationship.

F. "Electing Entity" means arry legal entity that has agreed ts bc bound by the Program as provided herein,

G. "Enployee" rneans ¡uly person who is or has been in the employment of the Company on or afer the effective date of this Prograni, rvhether o¡ not ernployed at the time a olaim is brought with respecl to a Dispufe, residing in the lJnited States, or oflerwise subject to laq,s of the Uniied States or any state, ricipality' or other polilical subdivision of the Uniteo States,

t'1. "Applicant" rneâns âny persôn u'ho is seeking or has sought employmont u'ith thp Compary affer the effec' tive date of fhis Program.

I. "Parly" tì1ealls, with respect to a panicular Dispute'

afiectcd petsons n¡d/ol enfities bouncl by this Prograrn,

J. '?rogratn" meatts this l{abols Dispure Rcsolution Program, as amelrded fioln time to tirne.

K. "Rules" means the Nabors Dispute Resolution Rules, . .¿s amende<l ftom timçlo tinre" rvhicb afe alpliqable"to mediation and arbitration'

L. "Sponsôr" meâns Nabors Industries, Inc., a f)elawar.e corporation.

3. Nrmc, Äpplication and Coveragc

A. The Program shall be refened to as the "Nabors Dispute Resoluticn Progtam." Alternatively, it may be refe¡red to as thc "I)isputc Resolution Program."

B. Until revoked by Sponsor pursuant to fiis Program, this Program applies to a¡d binds the Con:pany' each Enrployee and Applicant ald the heirs, bcneficiaries and assigns of any such person or entily; provided, however, that this Program shall not apply to any Ëmployee in a unit of Employees l'epresented by a labor organization, or to the Company r;i'ith respect to such enrployees, exccpt to the extent permilted in an applicable collective bargaining agreement or lawfully imposed by the Cr:mpany rvhen uo collecfive bargaining agreement is in effoct

C. Except as provided for herei¡r, tltis Progr. am applies to any Dispute.

D. Notwithstanding ânything to the côhtraq' iu this Ptogram, the Prograrn does not apply to clail¡s for rvorkers' compensåtion benefits or unenrploynent comPensati on bcnefits,

E. lr4ediation and arbitratiön alË only available for llisputes inr, olvi¡ g I egally pl otected rig.hts.

$., twithstanding arJy other provision i eot any court with juisdiction ovel the Parties may issue any injunctive o¡ders (including preliminary ir:juncti olrs) if the necessary legal and equitable requirements under applicable law are met pending the institution of proceodings under the Program. Furthermore, an aotion unde¡ The Lirnitation of Ship Owners Liability Aal.46 U,S.C. $$181-189, shall not be subject to fhis Program.

4. Resolution of Disputes

A1l Disputes not otlerwise selfled by the Parties shall be furally and conclusively resolved under this Program and the Ruies.

5. No Retaliation

No employee shall be subject tCI auy form of discipline or retaliation for initiating or participating in gooc{ faith in any process or proceeding utlder this Program.

6. Amendment

L. This Program may be amended by Sponsor at any time by givipg at least l0 days' notice to cuüç¡rt Employees, Howevet, no amendmsnt sh¿ll apply to a Disprf:e 1'br which a proceeding has been initiated pursuant to the Rules, unless olherwi.se agreed.

B. Sponsor may amend tbe Rules at any time by sen'ing notice of the amendments on AAA ånd JAMS. Howevet, no amendment of the Rules shall apply to a Dispute for which a proceeding has been initiated pursuant to the Rules unless otherwise agreed.

7. Termlnation

This Program may be terminated by Sponsor at any time by giving at least 10 days'notice of termination to current Employees. However, termination shall not be effective as to Disputes for which a proceeding has been initiated pursuant to the Rules prior to the date of te¡mination unless o{herwise agreed,

8. Appllcable Law

A. The Äct shall apply to this Program, the Rules, and any proceedings urder the Program or the Rules, ineluding any actions to compel, enfotce, \'âcate or confirm prrceedings, awârds, orders of an arbitator, ot seflements under the Program or the Rules, 8., Pro¡ t arbitrations held pursuant to this n shall be convened as near as possible to the worksite where the events in dispute occurred if Nabors continues to perform work at that location. Otherwise the arbitration will oscur at dre place vnost convenienl for the r:rajority of the wit¡esses,

C. Other than a.s expressly provided herein, or in the Rules, the subsl¿ntive legal rights, remedies, and defenses of all Patties are preserved. In the case of arbitration, the arbitrator shall have the aulhority to determine the applicable law and to order any and all reiie{ legal or equitable, which a Party could obtain from a court of competent jurisdiction on the basis of the claims made in the þroceeding.

D. Other than as exptessly provided herein, or in the Rules, the Program shall not be construed to grant additional substantive, legal, or conlractual rights, remedies o¡ defenses which would not be applied by a cou¡t of competent jurisdiction inthe absence of the Program.

E, Notwithstanding the provisions of the prececling subsection , in any proceeding irefore an arbihator, the in his or her discretion, may allow a arbilrator, prevailing Employee or Applicant a reasonable attorney's fee as parl of the award. The discrelion to allow an award of fe¿s under this subsection is in addition to any disoretion, right or power which the arbitrator may have under applicable law, If the a¡bitrator awa¡ds attorney fces without authorization for such an award by statute or conlract, such award will be limited to $2,500.00,

9. AdminisfrativeProceedings

A. This Program shall apply to aDispute pending before any local, st¿te or federal administrative body or couft unless prohibited by iaw.

B. Parficipation in any administrative or judicial proceeding by thc Company shall not af.fect fhe applicability ofthe Program to any such Dispute upon . terminalion of the administrative or. judicial proceedings, A finding, recommendation or decision by an ad:ninislrative body on the merits of a Dispute shall have the same iegal weight or effect unde¡ the Program as it would in a cou¡t of competent jurisdiction .

10. Exr ivc Remedy

Prooeedings under the Program shall be the exclusive, final and binding method by which Disputes a¡e resolved'

11. Electing Ðntlties

A. Co¡porations or other legal entities, not otherwise Pafies, rnay elect to be bound by this Program by written agreement wíth SPonsor.

B. Election may be rnade only as to some types of Disputes, or only ås to sômp persons, in the disoretion of Eleeting Entity.

Í2,

The Efiective Date of this Program shall be April 15, 2001.

13. Severability

The tsrms of this Program and the Rules a¡e severable. The invalidity or unenforceability of any provision there' in shall not affect the applicalion ofany other provision, Where possible, consistent with the purposes of the Program, any otherwise invalid provision of the Progrart or the R.ules may be relÌ¡rned and, as refotmed, enforeed.

14. A.ssent

Ëmployment or cotltinued employment after the Effeotive Date of tbis Program constitutes consent by both the Ernployee and t'he Company to be bound by this Program, both during the employment and after tennination of employment. Submission of,an application, regardless of form, for employment constitutes conssnt by both the Applioant and the Company to bc bound by this Prograrn.

NABORS DISPUTE RESOLUTION RULES

1,. Definitions

All definitions included in the Nabors Dispute Resolulíon Program apply to these Rules.

2. Application

A. If differerlt rules ate appiicable to a specific class of Disputes, and have been adopted by Sponsor and servsd on AAA or JAMS, these llules shall not apply to such class of DisPutes.

B, i :se Rules apply iu the form existing the time proceedings are initiated under them,

C. To the extent consistent '¡'ith these Rules, the Employmenl Dispute Resolution Rules of AAA or JAMS also apply to all proceedings governed by tùese Rules.

3. Initiation ofthe Process

A. A Party may initiate proceedings under tliese Rules at any time, subjeot to any defenses including those . applicable to the timeliness of the claim, inciuding limitations a¡rd laches,

- ts. 'A Farty may"inilialc proceedings'by servíng a wlit"tcn -

requçsl1o initiate proceedings on AAAor JAIvlS, and tenderir:g the appropliate administrative fee.

C. Copies of the request shall be served on all othe¡ Parties 1o the Dispute by AAAor JAMS, The request shall describe the nalure of the Dispute, the amôûrt involved, if any, the remedy soughg and the proceeding locale requested.

D. Proceedings may also bc initiated by an Employee or Applicant by serving a written request to iuitiate proceedings on the Compauy's Dispute Resolution Prograrn Adminislrato¡. In such a oase, the Company shall promptly forward any properly served request it has received to AAA or JAMS.

E. Parties against wirom a claim is asseñed shall file an answering statement u'Ìthin 21 days of receiving notice of intent to arbitrate or a specification of claims, wl¡ich shall include any counterclaims ând any request that the arbitrator (ifany) prçpare a statemeni of reasons fot the award,

4, Ädministrative Confcrence

A,A.A or JAMS shall convene an administ¡ative conference as soon as possible after receiþt of the answering statement or after expiration of the tirne for filing an answering statemênt if one. has not been filed. The conference may be held in person or by telephone. At the conference, AAA or JAMS will detennine whether the Parties arc in agfeement on a method to resolve tle l)ispute, If tire Pailies are in agreement, AAA or JAMS will implement theprocedure in accordance with theirrulss upon payment of any applicable fee, If the Pa¡tíes cannot agree, or if the

Pa¡ have previously attempted and failed ¡ ¡solve the Díspute by rnediation or another nonbinding mechanislr, fhe Dispute shall be a¡bitrated under these Rules.

5. Appointment of Arbitrator

Immediately after payrnent of the a¡bitration fee, AAA or JAMS shall simult¿neously send, each Party an identical list of names of persons chosen from a panel of qualifred a¡bitrators which AAA.or JAMS shall select and maintain. Each Party to the Þispute shail. have fourteen (14) d¿ys fiom the tmnsmittal date to stike any irames objected to, ' number the remaining names in order of prefercnceo and retur¡r the list to AAAor JAMS. If a Party doêS not relurn the list within the iime specified, all persons therein shall ' -- be døem*ed-acrrcpable;-Fl'om'åmoûg the-persons who'' .;-'- -'

have been approved on botb lists, and in accordarrce with the order of mutual preference, AAAot JAMS shali invite the accepiance ofthe arbitrator or arbitrators to serve. In those cases where more than $2,000,000 is in eonkoversy, either Party shall have the right to require that the arbitÞtion proceed before a tlueo member panel rather than a single arbitator The Party who elects for a panel in these ci¡cumstances shall noti$ the other Parties during the administrative conference described in Secti.on 4 of rhe Program. Any Pa¡ty shall have the right to strike one list of arbitrators in its entirety, When a Party exercises this righ! AAA or JAMS shall issue a new list of arbitrators consistent with the above procedures.

6. Qualifications of the Ärbifrator

No person shall serve as a¡r arbitrator in any matter i-u which that person has any financial or persortal interest. I'rior 1o accepting appointment, the prospective arbil¡ator shall dis¿lose any circumstanse likely to prcvent a prompt hearing or creâte a presumption of bias, Upon receipt of such irrforrnation from the a¡bitrator or any other source, ÀAA or JAMS will either repiace that person or communicate the information to the Parties for conmenl, Thereafter, AAAor JAMS may disqualify that person, and its decision shali be conclusive.

7, Vacancies

If a vacarrcy occurs for any reason or if an appointcd arbit¡ator is unablc to serve promptly, the appoinknent prooedure in Section 5 shall apply to the selection of a substitute arbitrator,

L Dai Time and Place of Hearings

A. The arbitrator shall set the date, time and place of an¡'

proceeding pursuant to lhe requirements of Seclion 88 of the Program.

B, Notice of any hearing shall be given at least ten (10)

days in advance, unlcss the a¡bitrator detetmines or the Parties agree that a shorler time is nec€ssa¡'y.

C. The a-rbitrator shall rnake every effort, without undu* ly incuning expense, to accornmodate the Employee or Ä.pplicant in the selection of a proceeding'location.

9, Confcvcne¿s

At the request of AAA or JAMS, or of a Party or on the initiativc of the arbitrator, the arbitator or AAA or JAMS may notice and bold conferenoes for the discussion a¡rd determination of any matter rvhich will expedite the proceeding, including:

A. venue, B. clarification of issues,

C. determination of prelín:inaty issues, including summary deûermination of dispositive legal issues,

D. discovery,

E. thc time and location of proceedings or conferences,

F. interim legal or equitable relief authorized by applicable law

G. pre- or pôst-ltearing memomnd4

H, stipulaticns; andlor

I. aly other matter of substance or procedure,

10. Mode of Hearings and Conferences

In the discretion qf the arbiirator or by agreement of the Parties, conferences and hearings fl1ay be conducted by telephone or by written submission, as well as in person.

11, Pre.; aring Discovery

À. On any sohedule determi¡ed by the arbifrator, each Farg shali submit i¡ advance the names and addresses of the wilnesses it intends to produce and any doc' uments it intends to Present.

B, The a¡bitrator shall have discretion to determine the foun, amount and &equency of discovery by the Parties.

C. Discovery may take any form pernútted by the ' Fedcral Rules of Civil Procedure! as amended fro¡r time to time, subject to any restricfions imposed by the arbitrator,

12. Replesentafion

Any Parry may be represented by coulsel or by any other authorizod representative.

13, Attend¡nce aú Hearings

The arbitator shall maintain the privacy of the proceedings to the extent permitted by law. Any person having a direct interest in the matter is entitled to attend the proceedings.

The arbitrator shall otherwisc have the pou/er to exclude any witness, olher than a Party or other essential person, during the festimony of any other witress. The arbitrator shall determine whether arry other person may attend the proceeding. Upon the request of any Party, tho arbitrator shall exclude any witness during the testimony of any otbcr wibress.

14. Postponement

A. The arbitrator, for good cause showrt by a Party, or on agreement of the Parties, may postporre any proceeding or conference.

B, The pendency of court proceedings relatsd to the same matter is not good cause fo¡ postponement'

15. Oaths

Before proceeding with the firsl hearing, each arbitrator may take an oath of office and, if r:equil'ed by law, shall do so, The albitrator may require witnesses to testi$r under oafh administered by any duly qualified person and, if lequired by law or requested by any Party, shall do so.

16. Rec I of Proceedings

There shall be no stenographic, audio, or video record of ihe proceedings unJess either requested by one ôf the Parties or specifìed b)' the arbilraior The Parly requesting tlre record sirall bear the entite cost of produeing the satt:e' Copies of the record shall be furnished to all othel Parties upon request altcl upon paylìlent of thc cost of reproduction ,

17. P¡'occdurc

The ptoceedings shall be conducted by the arbihator in whalevor order and rnariller will nlost expcditiously permit full presentaliou of the evidence anci argumenls of lte PaÍies

18. A¡:bitration in thû Absence of a Party

The arbitrator ï¡my proceed irr the absence of Parlies or representativcs who, after due notice, fail to be presenú or fail to obtain a postponeme¡rt. An award shall not l¡e made solel5. s¡ the default o1Ì a Farty' Tlre arbil¡ator shall roquire aly Part¡ who is present to submit such evidence as the arbifralor mâ)r require fc¡r the making of an award.

19. Evidence

A. 'i'he arbitrator shall be the sole judge of thc relevancy, muteriality, and admissibilily of evidence offeïsd. Conformity to legal rules of evidence shall rrot tre necessaÐ'.

B, The arbi.trat<tr may subpoena wit'nesses or docuntents a1 the request of a Parry or on the arbitrator's own initiative,

C. 'Jlhe arbilrator may consider the evidence of wilnesses.

by affidavit or decla¡¿tion, but shall give ìt only such weight as the arbifator deems appropriate after consideraticln of any objeution nrade to its aclmission.

20. Post-Hearing Submissions

¡\ll ciocurnerrtary evidence to be considered by the a'bitralor shall be filed ¿$ the hearing rurless tl're arl¡iuator finds good cause fo pcmrii a post-hearitrg submission- All Paúies shall be afïorcled an opporlunify to exarnine and comment on ally evidence' 'llhe arbilr¿tor s'hall penrdt ¡rostJrearing the fìling of posl-ltcaring briefs at the request of a Party an<1 sball delemrine the procedure ruld timing of such filings.

21. Clc g and Reopening of ProceedÍngs

A. When dre arbitrator is satisfied that the reco¡d is complete, including the submission of any post-heariug brief's or documents penr:itted by the arbifrator, the arbitrator shall decla¡e the proceeding closed'

B. 'l'lre proceeding may be reopened on the arbitrator's initiative or upon application of a Parlry at any tirne before the award is made.

22. Wsiver of Procedures

Any Pa*y rtho fails to objest in rvriting, after knowledge that any provision or requirements ofthese procedures and . Rule-s lave,nol beorr. cornplied lvilh, shåll .be rieemed to have waived the right to otrject.

23. Service of Notices and PaPers

Any papers, notices, oi plocess neaessery or proper for the initiation or continuation of any proceeding under these Rules (including the award of the arbitrator, aûy court action in connection therewith, or the entry of judgmenl on an award made under these procedures) may be served on a Party by mail addressed to the Party ot his or her representative at the last knqwn address or by personal servicc. AAA, JAMS, the Pariieq, and the arbitrator may also use facsimile transmission, telex' telegram, or other written fbrms of electonis communication to give any notices required by these Rules.

24. Cr¡mmunícations with the AAA, JAMS, and the Company

A. Any Party may notice, servt or cor¡municatç with AAAby contactingl

Regional Adminislrator Amerioan Arbitation Associa.tion 1001 Fa¡nin St., Suite 1005 Houston, TexasTTAA2 Q13) 739-1342 Fax: (713) ?39-1'702

B. Any Pa¡ty may notice, serve or communicate with .l¡,MS by contacting:

JAMS 345 Park Avenue. 8th Irloor NewYork,NY 10154 (2r2) 7sr-2700 Fax: Q12)'15ï-4099

C. ,v notice, service or communicatii with the Company will be to:

Legal Department Nabors lndustries, lnc. 5l-5 West Greens Roâd, Suite 1200 Houston, Texas 77 067 -4525 (281) 874-0035 Fax: (281) 775-8431

25. Communic¿tian rvith the Á'rbitrator

there shall be no communication between the Parties atd the arbitrator other than at any oral hearings or conferences . Aly other oral or r¡nitten commudcations fro¡n t]re ... ..-" parties fo-the-.arbitator shall.be dirccted to the-AA,A...or JAMS (and copied to the Parlies) for transmission to the arbitrator, u¡rless the Parties and the atbitrator agree otherwise .

26. Timo of .Award

The awa¡d shail bc prûmptly made by the arbitrator, rurless otherwise agreed by the Partics or specified by applicable lawo no Iater thaa thirty (30) days from the date of the closing of tlte proceeding or, if applicable, the closing ofa rcopened proceeding.

2?. Forúr of Award

J.he award shall be in wriling and shall be signed by the ¿rbitrator. The a¡bitrator sliall write a statement of reasons for the award if requested to do so in the request to initiate proceedings or in the zuuwering statsment. The award shall be exe¿uted in any manner requíred by appli' cable l¿w.

28. Modification of Ärvard

On order of a court of competent jurisdiotion, or otl agree' ment of the Parties, the arbifuator shallmodify any award. The arbitratrr may modify an award on the motion of a Party if the arbikator linds that the award, as rendered, is ambiguous or defective in fonn, or if the awa¡d requires an.illegal or irrpossible act..These are the only ci¡cumstances under which an arbitrator shail have jurisdiction to wilhdr¡iw or nrodify an award.

29. Set nent

Iftbe Pa¡1ies softle their Dispute during the course of the arbitratiorç the a¡bitratcr may set out the terms of ths settlernent in a con¡ent award.

30, Scope of .{rbitrator's Authority

The arbitrator's authority shall be limited to the resolution of legal Disputes between the Farties. As such, the a¡bitrator shail be bound by and shall apply applicable law, including that related to the allocation of the bu¡deu of proof; as well as subskntive law, The a¡bihator shall not have fhe authority either to abridge or enlarge substa¡tive rights avaitable under applicable law. The arbitrator may ' "also graut emergency-or tetnporary relief that is or would be authorized by applicable law. The a¡bitrator shall be bound by ând shall conlpiy with the provisions of the Program and Rules.

31, Judicial Procccdings and Exclusion of Liabilily

A. Neilher AA,A., JAMS, nor any arbitratot is anecessary Party in aly judicial proceedings rclating to proceedings undø these Rules,

B. Neither AAA, JAMS, nor any a¡bitrator shall be liable fo any Party for any aoÏ or omission in conncction with any proceedings withirr the scope of these Rules.

C, Any court with jurisdiction over the Parties may oompel a Parry, to proceed under these Rules at any plaoe and may enforce any award made.

D. Parties to these Rules shall be deetned to have consented that judgment upon the award of thç arbitrator may be entcred and enforced in any federal or state court having jurisdiction of the Partjes.

E. Initiation of, palicipation in, or removal of a legal proceeding shall not constitute waiver of the right to proceed under these Rules.

F. Any court with judsdiction over the Parf.ies nray issue any injunctive, orders. (including preliminary injunctions ) if the necessary legal and equitable requirements under applicable law are met. pending thc institution of proceeclings under thcse Rules.

32. Fee td Expcnses

A. 'llc expenses olrvitnesses shail be borne by the Parly producing such rvilnesses, except as otherwise provided by larv or i¡r the au'a¡d of fire arbifi'ator.

B. Alt attomeys' fees shall be borne by the Party iilcuriug them except as otlienvise provided by latv. by the Pt'ogt:am, or in the award of 1be albitratar.

C, I)iscovery cosls (e.g., court reportor f.ees for origirral 1r'anscrþts) slull be borne by thc Party initiating the discovery. Thc cost of copies of deposition transcr:ipts or other discoverl' shall be borne by the Party oldering the eopy.

D. The fees and expenses of experts. consul{a¡rls and c¡thers retaineci or consulted b1' a Party shall he borne by the Pafy utilizíng those servioes-

E. The Ernployee or Applicant shall pay a $I 50 fec if he or she initiates arbj.tration or tnedjation. Olherrvise, Enrployee/Appìicanl Partjes shall not be responsible for payment of lbes attd expenses of prooecdings under these Rules, including required travel of a¡r albitralor or a mediator' expenses of an arbilrafor, rrediator. AA,4 or .IAMS, and the cost of any ploof produccd at the discretion of an arbitrator.

Ìr. lf'lhe denand fo:: mediation or aråit¡ation is irritiated by the Contpany, such fees will be paid by the Company.

G. )ixce¡rt as odrerwise prordcled by larv or ir: the au'ar:d of'thc at'biTtator, all olhel expenses, f'ees and costs of proceedings under thcse Rules shall be borne equally b,v tho Parties who are not Ernployees/Applicants'

33. Inter¡rretalion and Application of Thcsc lìuk:s

llhe arbit¡:ator shall ilterpret ar:d apply thesc Rules insofar as they relatc to thc albilrotor's pûwers and duties. All olher rules shall be in itterpreled and appliec{ by the AAA or JAMS.

34. ApplicableLarv

A. Procecditrgs under thesc R.ttles and ally iudicíal review of ar¡'atds shail be govetned b,v the Act.

B. ; cept where otherwise expressly provl I in these Kules, the substantÍve law applied shall be state or fcderal substantive law which would be applied by a United States Ðistrict Court sitting at the place of the proceeding.

35. Modiation

At any time bcfo¡e the prooeedlng is closed, the Parties may agree úo mediate their dispute by notiSing AAA or JAIi,IS. AAA or JAMS shall dcter¡ine wh¿t procedures apply to any such medíation.

36. Spanish

Nabors lndustries, lnc.

Aprit2001

January 17,2017 '

TO: All Emptoyees of Nabors Industries, I¡rc. and Subsidiaries

RE: Nabor¡ Dispute Resolutiou Program

Dear Errployee:

Effective ten (10) days afrer he d¿te of this notico, Filrsuâßt to Section 6 of the Nabors Disputo Bpsolution Fro$âff, Nsbors Indushies; Inc. ('Nabon') ¿nd its subsidie¡ies a¡e amending the N¿bors Dispute Resolulion Prograrn and Rules fcr the detrninatiot of all.dispuæs botweetr employeee ard Nabors or one of its subsidiaries.

Thc ämendmont¡ ø ths fiogrÁ *¿ n ti* **".oo¡or.¿ oo ,t" back of this page Nabors is amending one (l) section of fhe N¿bors Dispute Rcsolufioo Program aûd one (i) section of the N¿bors Diepute Resolution Rulss. You should already bave a copy of the cur¡est Program and Rulcs, or tbey may be found on the Nabors InÍanet under policy number 200.80.i at b!1!¡ ://shareno¡it.naboff .con/Cl 0/Huþå&%204€çoutþog/(l ofau lt.asqr(

As before, thc Nabors Dispute Resolution Program. as amcuded, gives you.the most effective .and efiîcient mÊans of.rcsolving any dispuües you may have through a process which encorrragæ ¡esolution at the oa¡liest opportunity, Ernployeas do not waive any substantive iegal rights under the Progum- Ra&er, tåe Progtaü, æ süe¡ded, provides that any substaùtive legal issues you may hrve will bc rcsolveû on ari indivirlual b¡sis in mediafion or beforo a neukal arbiþato¿ whose dooision witl ba fi¡al aud binding on you snd ths Compauy. Under ûe Program, as anrended, however, you rvaive any proccdural righæ you ray have to briug a court action, on an indiviau¿l or on, fl ,qlacs, orillcclivc or ropresenfative basis; and you waive yow right t,o a jury frial coaoerning any {ispute you may bave with the Compaüy or any Eleoting Entity (as defined i:o the Program), inotudbg any personal injury claims o¡ claims of disorimination based on tacel mtional oligrn, gender, roligioq age or disability under a¡y federal or state oivil riglts shtute.

Every individual who worls for N¿bors Industies. lac. or a subsidiary is subject to the Prograq as ameuded" excôpt that tÍe amsnded provisions will affect orly disputos initiated aftor the effective date of the adendmêntãr and not my matùers peodisà before tbo effective date. Your continuod employnont after the date you receive this notice will constituto your acceptance of tbe amendme,nts to tho Program, both during and afler your e,mploynent with the Company.

We look fon¡y¿rd to continuing to rvork together. If you have any questions about tbe amendme,rts tô tho Progråm and Rules or âûy other tenn of yoúr employmoet, please do not hesitaæ to contacttre Human Resources Departrnent of your employer.

Sinceroly,

NABORS INDUSIT{IES, INC.

*A øp! s¡iltìs no.lice ft avcllaûle ln Spanlsla upon rcgbesg lrom auJ Nators sutslllaqtls IIuuøn ß¿sources Depaflmenl-

+ (lnø coplt óe eflø notìcìa asñ dlqtonÍhlc en espøñol cott solo requerÛrla d Dqnrlonanlo de Ra¿wsos llilnanos ðe cualquÍ¿r sab¡ldìarla de Nø6or*

Amcndment to THE NABORS ÐISPUTE RtrSOLUTION PROGB-AM:

4, Re¡olutlon of Disputes

A. All Disputes not otherwise senled by tho Pa¡ties shall be finally and conclusively resolved usdër this Program and the Rules. The Partics forego any right eilber may bave to a jwy hial os clsims relating in auy way ûo any Dispute.

8. Each Dispute shall be arbit¡ated on an individual basis, The Parties forego and waive any right to join 9r consolidate olaim¡ in arbiû¿tion v¡ith othert or to make olai-as iu ¡¡bi8atio¡ as a ' representåtÍve or as a mcmber oña cl¡ss or in a privaûe atûomey genoral or similar capacity, unless zuc,b'procedures are agrccd to by all Parties. Neither the Company Ãor aûy Employee or Applicant may ptusue any Dþute on a class actron, colleclivs aotion or consolidated basis or in ¿ rcpresontative capacity on behalf of of[er poñons or cntities who are claimed to be similarly - ðiluated, oÍ pãrûðiiiâtc äb d slass men*iéi in sùch a. prÖceèding. Tbe ¡rliibalor í[ a¡iy procixldÍ¡g ' i¡nder this lrogram shall have no autlority to conduct the matter as ¿ coasolidated, class, collective or representetive action.

C. If the procedural limitation in Paragraph B of this .Section is held une¡forcoable by a cottrt in a procecding in which a pa$y seok.q úo pursue a consolidated, olass or oollective action or otherwise act in a represertative capacity, then fhis Progra:n shall apply to such proceeding only to tle following extonL The oouf witl decide whether the Dþute should procçd on a consolid¿ted, cla¡s, collectivc or othor røpresentative basis a¡4 if so, will dcfiuc the rcope of the gkss. None of llo forogoing determiaationr sball be submi$ed tq the a¡bitrator, and in no ovent shall tbc a¡bitator have the power to deterrrine cl¿ss, collective or representalive action ce¡tification. Thc decisions will be subject ûo appeal purxuant to the applicable nrles of procedure. If the "butt'. court certifies a olass, collsctive or other representative action, then all other deteffrinotions in or relatËd to the'Dispufe shall be uads by the arbitator. Ile arbihator shall detennine questions of liabili¿y to or of the class ss a wbole and ramedies available to or fiòm the olass as a whole. Ibe a¡bitr¿tor sb¿ll also decide the relie{ if u}, t0 wbich a party or olass membcr may be entitled iadividually. If tåe court, bowever, ultinafely denies a pafy's roquest to ¡nocæd oa a consolidated, olass, colloolive or rcprcsentative basis, than that party's iadividual clain(s) shall still be subject to this Program and referable to æbitration pursuâût to ih terins.

:

30. Scope of Arbltr¿tor's Authority

A. The artihator's authority shall be limited to the resolutlon of legal Disputes between the Parties.

As sucb. the a¡bitratsr shall be bound by and shalt apply applicable laq including th¿t ¡platpd fo the allocation of the bu¡den of proof, as well as substantive law. The arbitrator shall not have the authority either to abrídge or enlarge substâûtive rights available under applicable law. The arbiüator nmy also glaût ernergênry of ternporary relief that is or would be authorized by applicable law. fho arbitrator shall be bound by and shal.l comply wilh thc pmvisions of the Progrem and R¡les.

B. ' The arbitator shall uot have thc powor to hear aay cl¿ims in a¡bihatiol as a clas¡ or collective aotion, or in a privaæ attoiney general or simila¡ capaciþ, or on any otåe,r represontative capacity basis, or, absent lbe consent of all parties, on a consolidated basie. The a¡bitaüo¡ shall be authorized {,0 decide only tbe dirputed claims bçfwecn tåe indívidual partios.

PRoGRAMA DE RESoLUCTóN nB CONFLICTOS DE NABORS

Copies of this pamphlet qre available in Spanish, upon request,from any Nabors subsidiary's Humqn Resources Department.

Copias de este folleto estan disponible en español eon solo reauerirlas al Deoartamento de Recursos lluuono' cuøluu .uús Nahon ¿u fr ¡1yr I ¿u

PROGRAMA DE RESOLUCIÓN DE CONFLICTOS DE NABORS

1. 1. Propósito y Diseño

El Programa está diseñado con el fin de proporcionar un medio parc la resolución rápida, justa, accesible y económica de conflictos entre la Compañía y los Empleados actuales y anteriores de la Compañía y los Aspirantes para puestos de empleo, con respecto a o como consecuencia de una relación de empleo actual, anterior o potencial con la Compañfa. El Prograrna está diseñado para facilitar un proceso para la resolución definitiva de todas los Conflictos desøiptos en los términos del misno. No está diseñada para limitar o aumentar los derechos fundamentales disponibles bajo las leyes aplicables. El Programa modifica en forma conlractual la relación de empleo efectuado entre la Compafila y sus Empleados, pero sólo en la medida en que esté expresamente establecido en el Programa. El Programa deberá ser interpretado de acuetdo con esta intenciÓn.

2. Definiciones

A. "AAA" significará la Asociación Americana de Arbitraje (the American Arbritration Association)'

B. "JAMSU significará los Servicios de Mediación y Arbitraje Judiciales (Judicial Arbitration and Mediation Services)

C. La "Ley" significará la Ley Federal de Arbitraje (the Federal Arbitration Act)

D. La "Compañla" significará el patrocinador del Programa y las filialcs directas o indirectas (ya sean una corporación, una compañla de responsabilidad limitada, una sociedad u otra entidad legal) del patrocinador, la Entidad que Selecciona el Programa, la entidad o persona que se alega tiene responsabilidad asociada o separada con respecto a cualquier Conflicto, y todos sus directores, funcionarios, empleados y agentes, plan de beneficios, ya sea exento o no-exento de impuestos, establecido o mantenido por dicha entidad, los fiduciarios, agentes y empleados de dichos planes, y Ios sucesorcs y beneficiarios de dichas entidades, planes y personas; siempre y cuando, en el caso de la Entidad que selecciona el Programa, "La Compañía" deberá incluir la Entidad que Selecciona el Programa solamente en la medida establecida en el contrato de dicha Entidad er la que estará obligada por el Programa.

E. "Conflicto" significará todas las demandas legales y justas, los reclamos y controversias, de cualquier fndole o tipo, ya fueren contractuales, o de responsabilidad extracontractual, de acuerdo con el derecho escrito o las regulaciones o alguna otra ley, entre las paltes obligadas pol el Programa o por un contrato para resolver los Conflictos de acuerdo al Programa, o entre una persona obligada por el Programa y una persona o entidad con derecho a recibir sus beneficios, incluyendo pero sin limitarse a lo siguiente:

1, este Programa;

2 la contratación o la posible recontratación de un Empleado, incluyendo los términos, condiciones o el cese de dicho empleo con la Compañía;

3 los beneficios o incidentes de ernpleo con la CompañÍa;

4. todo asunto relacionado con la relación entre el Empleado y la Compañla incluyendo, pol ejemplo pero sin lirnitarse a: la discriminación basada en la raza, el sexo, la religión, el origen nacional, la edad, la condición de veterano de guerra o cualquier incapacidad; el acuso sexual u cualquier otro tipo de acoso; las represalias por concepto de compensación laboral; la difamación, la imposición de un agravio emocional, 1a reclamación de antimonopolio relacionado con sueldos o el estado de, una reclamación por o una membresía relacionado con los planes de benefìcios para ernpleados;

5 la solicitud de un Aspirante para un puesto de empleo y las acciones y decisiones de la Conrpañia con respecto a dicha solicitud; y

6. cualquier lesión personal supuestatnente incurrida en o alrededor del sitio de trabajo de una Compañía o durante el término y alcance de las actividades laborales de un Empleado,

El "Conflicto" incluye todo lo anteriormente mencionado , independientemente del momento en que hayan ocumido los eventos en los cuales estétr basados, incluyendo los asuntos basados en eventos que hayan sucedido antes de que el Empleado estuviera sujeto a este Programa (siempre y cuando dichos conflictos no fueren establecidos con anterioridad en un tribunal juridico) o después de la terminación de ¡u reraciôn ¿.

etnpleo

F. La "Entidad que Selecciona el Programa" signiftcará toda entidad legal que hubicra acordado una obligación por medio el Programa de acuerdo a las disposiciones de este documento.

G. El "Empleado" significará toda persona que estuviera o hubiera sido empleada por la Compañía a la fecha o después de la fècha de vigencia de este Pt'ograma, incluso si estuviera o no estuviera empleado por la Compañía en el momento en que una demanda fuera presentada en relación con un Conflicto, y que residiera en los Estados Unidos de América, o que estuviera sujeto a las leyes de los Estados Unidos o de cualquier estado, municipalidad u otra subdivisión política de los Estados Unidos.

H. El "Aspirante" significará toda persona que estuviera buscando o que haya buscado empleo con la Compañ¡a después de la fecha de vigencia de este Progt'ama.

L Las "Partes" significarán, las personas perjudicadas en relación con un Conflicto particular, y/o las entidades que obligadas y vinculadas por este Programa.

J. El "Programa" significará este Programa de Resolución de Conflictos de Nabors, y como f'uere modificado de tiempo en tietnpo.

K. Las "Reglas" significarán las Reglas para la ResoluciÓn de Conflictos de Nabors, según fueran modificadas de tiempo en tiempo, que sean aplicables a Ia mediación y el arbitraje.

L. El "Patrocinador" significaráNabors Industries, Inc., una corporación del estado de Delaware,

3. Nombre, Aplicación y Cobertura

A, El Programa será denominado el "Programa de Resolución de Conflictos de Nabors". De forma alternativa , podrá ser referido como el "Programa de Resolución de Conflictos".

B, Hasta que sea revocado por la entidad Patrocinadora de acuerdo con lo dispuesto en este Programa, dicho Programa se aplica y obliga la Compañia, cada Empleado y cada Aspirante y sus herederos, Ios beneficiarios y los cesionarios de dicha persona o entidad; siempre que este Programa no se aplique a un Empleado que sea parte de un grupo de Empleados representados por una organización laboral o a la Compañ{a relacionada con dichos empleados, excepto

en la medida permitida en un convenio de negociación colectiva (entre patronos y sindicatos obreros) o legalmente impuesto por la Compañía cuando ningún convenio de ncgociación colectiva estuviera vigente.

C. Este Programa se aplica a todo Conflicto, salvo se estipule lo contrario en este doculnento.

D. Sin perjuicio de lo estipulado en este Programa, el mismo no se aplica a las reclamaciones por concepto de indemnizacién o compensación de beneficios para obreros o de beneficios por concepto de desempleo.

E, La rnediación y el arbitraje están solamente disponibles para los Conflictos que involucren derechos que estuvieren protegidos legalmente.

F. Sin perjuicio de otras disposiciones establecidas en este documento, todo tribunal conjurisdicción sobre las Parles puede emitir órdenes judiciales (incluyendo requerimientos judiciales preliminares) si los requerimientos legales y equitativos de acuerdo a las leyes aplicables se cumplieran dt¡rante la instifución de las demandas bajo el Programa. Adicionalmente, una demanda bajo la Ley denominada The Limitation of Ship Owners Liability Act,46 U.S.S $$181-189, no esfará sujeta a este Programa.

4. Resolución de Conflictos

Los conflictos que no fueren t'esueltos por las Partes serán definitivarnente resueltos de acuerdo con este Programa y sus Reglas.

5. Artlculo referente a Represalias

No se podrá imponer ninguna forma de disciplina, ni se deberá tornar represalias con los ernpleados por haber ini' ciado o pafticipado de buena fe en un proceso o uûa demanda de acuerdo con este Programa.

6. Enmienda

A. Este Programa puede ser modificado por el Patrocinador en cualquier momento mediante una notificación previa a los empleados actuales de por lo menos l0 días. Sin embargo, no se deberá aplicar ninguna enmienda a un Conflicto por el cual u¡ra detnanda haya sido iniciada de *t*'u"tlvo cotrven8fl cðn'.ario acuefdo las se lo "ån B. El Patrocinador puede modificar las Reglas en cualquiet momento por medio de la notificación de las enmiendas en AAAy JAMS. Sin embargo, ninguna enrnienda de

las Reglas deberá aplicar a un Conflicto por el cual una dernanda haya sido iniciada de acuerdo con las Reglas, salvo se acuerde lo contrario.

7. Terminación del Programa

Este Programa podrá ser terminado por el Patlocinador en cualquier momento mediante la notificación a los Enpleados actuales en un plazo no mayor de l0 dlas previo a la terminación antedicha. Sin embargo, la terminación no entrará en vigencia para los Conflictos para los cuales una demanda haya sido iniciada de acuerdo con las Reglas antes de la fecha de terminación, salvo se acuerde lo confrario.

8. Ley Aplicable

A. La Ley se aplicará a este Programa, las Reglas y cualquier demanda realizada de acueldo al Programa o lds Reglas, incluyendo las demairdas para obligar, hacer cumplir, anular o confirmar demandas, adjudicaciones, órdenes de un árbitro, o resoluciones de acuerdo al Programa o las Reglas.

B. Todos los arbitrajes efectuados de acuerdo con este Programa deberán ser convocados tan cerca como fuera posible del sitio de ûabajo dondc sucedieron los eventos en disputa, en caso que Nabors continúe realizando labores en esa ubicación. De lo contrario, el arbitraje tomará lugar en el sitio más conveniente para la mayor parte de los testigos.

C. Salvo se establezca de manera expresa en las Reglas contenidas en este documettto, se consel'valì los derechos legales fundamentales, los recursos y los mecanismos de defensa de todas la Pa¡tes. En caso de arbitraje , el árbitro tendrá la auto¡idad para determinar las leyes apiicables y de ordenar las compensaciones legales o equitativas, que una Parte pudiera obtener de un tribunal de jurisdicciÓn competente en base a las reclamaciones presentadas en la demanda,

D. Salvo se estipule de forma expresa en este documento, o en las Reglas del mismo, no se deberá intetpretar el Programa con el propósito dê otorgar derechos, recursos o mecanismos de defensa fundamentales, legales o contractuales adicionales, los cuales no podrían ser aplicados por un tribunal de una jurisdic-

ción conpetente en ausencia del Programa.

E. Sin perjuicio de las disposiciones establecidas en la subcláusula anterior, en toda demanda presentada ante un á¡bitro, el árbitro, a su total discreción, podrá per' mitir que un Empleado o Aspirante prcvalcciente reciba los honoralios para el pago de abogados como parte del fallo dictado. La discreción para permitir la concesión de una asignación de honorarios de acuerdo a esta subcláusula se¡á adicional a toda discreción, derecho o autoridad que el árbitro pudiera tener de acuerdo a las leyes aplicables. Si el árbitro concede los honorarios de abogado sin la autorización para dicha asignación pot derecho escrito o contrato, dicha asignación estará limitada a $2,5û0.00.

9. Procesos Administrativos

A. Este Programa se deberá riplicar a un Conflicto que estuvi€ra pendiente ante toda entidad administrativa o tribunal local, estatal o federal, a n:enos que estuviera prohibido por la ley.

B. La participación en todo proceso administrativo o judicial por la Compañ{a no deberá afectar la aplica' bilidad del Programa a dicho Conflicto una vez que fuere terminado el proceso administrativo o judicial. Un fallo, una recornendación o una decisión efectuada pol una entidad admi¡ristrativa en basç a los mél'itos de un Conflicto deberá tener el mismo peso o efecto legal de acuerdo al Programa como si hubieran sido dictados por un tribunal de unajurisdicción cotnpetente.

10. Recurso Exctusivo

Los procesos efectuados de acuerdo al Programa deberán ser el métoclo exclusivo, irrapelable y vinculante por medio de los cuales se resolverán los Conflictos.

11. Las Entidades que Seleccionen el Programa

A, Las Corporaciones u otras entidades legales, que no fuesen Partes del mismo, tienen la opción de decidir si quisieren estar vinculadas y obligadas por este Programa mediante un contrato escrito con el Patrocinador.

B. Dicha opción para participar en este Progtama puede ser efectuada en relación con algunos tipos de Conflictos, o en relación con algunas personas, a discreción de la Entidad que Seleccione el Programa.

12. La Fecha de Vigencia

La Fecha de Vigencia de este Progratlta será el I5 de abril de 2001.

13. Atribución de Separación

Los tér'minos de este Prograltla y las Reglas son separables. La falta de validez o de la obligación para que se cumplieran algunas de las disposiciones en este documento no afectará la aplicación de las otras disposiciones. Donde fuere posible, y en forma consistente con los propósitos del Programa, toda disposición que fuera invalidada en el Programa o en las Reglas se podrá modificar y después de modificada, se podrá obligar su cumplirniento,

14. Asentimiento

El empleo o la continuación del empieo después de la Fecha en Vlgencia de este Programa constituyen el consentimiento por parte del Empleado y la Compafila para estar obligados por las disposiciones de este Programa, durante la duración del empleo y después del cese del mismo. La presentación de una solicitud de empleo, independientemente del formulario utilizado, constituye el consentimiento por pafte del Aspirante y la Compañla para estar obligados por ¡as disposiciones de este Programa.

REGLAS PARALA RESOLUCIÓN DE CONF'LICTOS DE NABORS

1. Definiciones

Todas las definiciones incluidas en el Prograna de Resolución de Conflìctos de Nabors se aplicarán a estas Reglas.

2. Aplicación

A. Sì hubieran reglas diferentes que fueran aplicables a una deferminada clase específica de Confliclo, y éstas hubieran sido adoptadas por el Patrocinador y notificadas a AAA y JAMS, estas Reglas no se aplicaún a dicha clase de Conflictos.

B. Estas Reglas se aplican de la forma en que existieran en el momento çn que se iniciaran los procesos establecidos de acuet'do con las mismas,

En la medida que fuera consistente con estas f ,

las Reglas de Resolución de Conflictos Laborales de AAAo JAMS también se aplicarán a todos los procesos reglamentados por estas Reglas.

3. El Inicio del Proceso

A. Una Par"te puede iniciar la demanda de acuerdo con lo establecido por €stas Reglas en cualquier momento, sujeto a los mecanismos de defensa e incluyendo aquellos que apliquen en el tiempo oportuno de la reclamación, incluyendo las limitaciones y demoras indebidas.

B. Una Pale puede iniciar la demanda mediantc la entrega de una solicitud escrita para iniciar la demanda en AAAo JAMS y después del pago de cargo admínistrativo correspondiente.

C. Las copias de la solicitud dsberán ser entregadas a todas las otras Partes del Conflicto por AAAo JAMS. La solicitud deberá describir la índole del Conflicto, el monto involucrado, si lo hubiese, el recurso que se solicita y el sitio solicitado para el ploceso.

D. Las demandas también pueden ser iniciadas por un Empleado o Aspirante mediante Ia entrega de una solicitud escrita pa¡a iniciar los procesos al Administrador del Programa de Resolución de Conflictos de la Compañla. En dicho caso, la Compañía deberá entregar en la brevedad posible a AAA o JAMS toda solicitud que hubiera recibido y que hubiera sido entregada en forma apropiada.

E. Las Partes contra quienes se haya presentado una demanda deberán presentar una declal'ación en respuesta a dicha demanda dentro del plazo de 2l dlas de la fecha a partir de la que se recibió la notificación de la intención de a¡bitrar o la descripción de las reclamaciones, la cual deberá incluir las contrademandas y las solicitudes para que el árbitro (si lo hubiera) prepare una declaración fundamentando las razones por las cuales se concede la indemnizacíón.

4, JuntaAdministrativa

AAA o JAMS deberán convocar una junta adnrinistrativa tan pronto como sea posible después de haber recibido la declaración de respuesta o después del vencimiento del plazo para la presentación de la declaración de respuesta, si

dicha declaración no hubiera sido presentada. La junta puede ser sostenida en persona o por teléfono. En la junta,

En la medida que fuera consistente con estas * ,

AAAo JAMS determinarán si las Partes han acordado un método para rcsolver el Conflicto. Si las Panes estuvierau de acuerdo, AAA o JAMS implemental'án el proceso de acuerdo con sus reglas una vez que se haya efectuado el pago del cargo correspondiente. Si las Partes no pueden llegar a un acuerdo, o si las Partes hubieran intentado llegar a un acuerdo y no pudieron resolver el Conflicto por medio de Ja mediación u otro mecanismo que no fuera vinculante u obligatorio, el Conflicto debe¡á ser arbitrado de acuerdo con estas Reglas.

5. El Nombramiento de un Árbitro

Inmediatamente después del pago del cargo por concepto de arbitraje, AAA o JAMS deberán envia¡ sirnultáneamente a cada Parte involucrada una lista idéntica de los nombres de las personas que fueron escogidas de un panel de árbitros calificados que AAA o JAMS deberá seleccionar y mantener. Cada una de las Partes del Conflicto tendrá catorce (14) días a partir de Ia fecha del comunicado para tachar los nombres que no prefiere, numerar en orden de preferencia los nombres restantes y devolver la lista a AAA o JAMS. Si una de las Partes no regresara la lista dentro del plazo especificado, todas las personas en la misma serán consideradas como aceptables. Entre las personas que hayan sido aprobadas en ambas listas, y de acuerdo con el orden de preferencia mutua, AAAo JAMS deberán invitar a que uno de ellos o más de uno ejerzaln de árbitro/s. En los casos en los cuales más de $2,000,000 esté en controversia, cualquiera de las partes tendrá el derecho de solicitar que el arbitraje proceda delante de un panel de tres miembros en vez de un solo árbitro. La Parte que escoja un panel en estas circunstancias deberá notifiÇar a las otras Partes durante lajunta adrninistrativa descrita en la Cìáusula 4 del Programa. Cualquiera de las PaÉes tendrá el derecho de tachar una lista de árbitros en su totalidad. Cuando una de las Partes ejercita este derecho, AAAo JAMS deberá emitir una nueva lista de árbitros de manera çonsistente con los procesos anteriormente mencionados.

6. Requisitos para la designación dc un Árbitro

Ninguna persona deberá ejercer como árbitro en ningún caso en el cual dicha persona tuviera un interés financiero o personal. Antes de aceptar el nombramiento, el posible candidato deberá revelar cualqu¡er circunstancia que posiblemente pudiera impedir una audiencia oportuna o crear la ptesunción de parcialidad. lJna vez recibida dicha información por parte del árbitro o de cualquier otra fuente, AAA o JAMS tendrá que sustituir esa persona o comu-

nicar la información a las Partes involucradas para que

puedan formular sus comentarios. A partir de entonces, AAA o JAMS podrán descalifìcar dicha persona y su decisión será concluyente.

7. Vacantes

Si hubiera una vacante por cualquier razôn o si un árbitro designado no pudiera ejercer en forma oportuna, se deberá aplicar el proceso para determinar nombramientos descripto en la Cláusula 5 para la seleccién de un árbitro substituto.

8. Fecha, Hora y Sitio para las Âudiencias

A. El árbitro deberá frjar la fecha, hora y sitio de cualquier proceso efectuado de acuerdo con las disposiciones de la Cláusula 8B del Programa.

B. Se proporcionará la notifrcación de la audiencia con un plazo no mayor de diez (10) dlas de anticipación, salvo que el árbitro determinara o que las Partes convengan que un periodo más corto fuera necesario.

C. El árbitro deberá realizar su labor, sin incurrir en gastos indebidos, para acomodar el Empleado o el Aspirante en la selección de un sitio para el proceso,

9. Juntas

A pedido de AAA o JAMS, o de una de las Pafies o por iniciativa del árbitro, el árbitro de AAA o JAMS podrá collvocar a juntas previa notificación para la discusión y la determinación de cualquier asunto que agilice el proceso, incluyendo:

A. la.iurisdicción,

B, la aclaración de asuntos de especial interés

C. la determinación de asuntos preliminares, incluyendo el sumario de las consideraciones y disposiciones legales

D. la junta previa a la audiencia

E. el tiempo y sitio para los procesos o juntas de arbitraje

F. los rçcursos equitativos o legales interinos autol'izados por las leyes aplicables G. los memorandums anteriores o posteriores a la audiencia

H. las disposiciones, y/o

l. cualquier otro asunto o proceso fundamental

10. La modalidad para realizarAudiencias y Juntas

A discreción del árbitro o por común acuerdo entre las Partes, se podrán realizarjuntas y audiencias por teléfono o por escrito, asi como en persona.

11. La Junta previa a la Audiencia

A. En un horario que será determinado por el árbitro, cada una de las partes deberá entregar por adelantado los nombres y direcciones de los testigos que se pro-pone presentar y también los documentos que tiene planeado presentar.

B. El árbitro tendrá la discreción para determinar el formato , Ia cantidad y la frecuencia de las juntas con las Partes involucradas,

C. Las juntas antedichas podrán tomar el formato permitido por las Reglas Federales para Procesos Civiles, ser modificadas de tiernpo en tiempo, y estar sujetas a las restricciones impuestas por el árbitro.

12. Representación

Cualquiera de las Pa¡tes podrá ser representada por un abogado o por cualquier otro representante autorizado.

13. La Asistencia a las Audiencias

El árbitro deberá guardar la privacidad de los procesos hasta donde fuera permitido por la ley. Todas aquellas personas que tienen un interés personal en el caso a ser tratado tendrán el derecho de asistir a los procesos de arbitraje.

El árbitro deberá tener la autoridad de excluir a cualquier testigo que lro fuera una de las Partes u otra persona esencial , durante del testimonio de otros testigos. El árbitro deberá determinar si alguna otra persona podrá asistir al proceso. A pedido de cualquiera de las Paltes, el árbitro deberá excluir cualquier testigo durante el testimonio de otros testigos.

14. Aplazamiento de los procesos o juntas de arbitraje

A. El árbitro, debido a una causa justificada demostrada por una de las Paftes, o de común acuerdo con las Parles, podrá postergar cualquier pl'oceso o junta de arbitraje.

B. La realización de procesos judiciales pendientes y relacionados con el mismo asunto no constituye una causa justificada para su aplazamiento.

15. Declaración Jurada

Antes de proseguìr con Ia ptimera audiencia, cada árbitro podrá tomar el juramento para el ejercicio de su cargo y así lo hará si fi¡era requerido por la ley. El árbitro puede requerir que los testigos tcstifiquen bajo juramento conducido por una persona debidamente calificada y así lo hará si fuera requerido por la ley o requerido por alguna de las Partes.

ló. Rcgistro de los Procesos de Arbitraje

No habrá ningún registro estenográfico, de audio o video de los procesos de arbitraje salvo que f,reran solicitados por alguna de las Partes o determinado por el árbitro. La Parte que solicite el ïegistro deberá pagar el costo total de su producción. Se suministrarán copias del registro a pedido de las otras Partes y una vez que se haya pagado el costo de la reproducción.

17. Proceso

El Proceso deberá ser dirigido por el árbitro en el orden y de la manera que permita la más rápida presentación de la evidencia y de los argumentos de las Partes.

18. EI Arbitraje en Ausencia de una de las Partes

El árbitro podrá proseguir en ausencia de una de las Partes o representantes que, después de la debida notificación, no se presentaran o no obtuvieran un aplazamiento, No se alcanzarâ un fallo solamente en base a la falta de asistencia de una de las Partes. El árbitro deberá requelir que cualquiera de las Partes presentes presente toda la evidencia que el árbitro requiriera con el f,in de alcanzar un fallo o conceder una asignación.

19. Evidencia

A. El árbitro será el único que juzgará la relevancia, la importancia, y la adrnisibilidad de la evidencia que fuera presentada. La conformidad con las reglas legales referentes a evidencia no será necesaria.

B. El árbitrc puede citar con una orden de comparecencia a testigos o docurnentos a pedido de una de las Partes o por la inicìativa propia del árbitro.

C. El árbitro puede considorar la evidencia de los testigos mediante una declaración jurada o una declaraciÓn, pero le deberá dar el peso que el árbitro considere apropiado después de haber considerado cualquiel objeción hecha para su admisión al proceso de arbitraje.

20. Presentación de la Evidencia después de la Audiencia

I-a evidencia documentada a ser considerada por el árbitro deberá ser presentada çn la audiencia salvo que el árbitro encuentre una justificación para que se perrnita una presentación posterior a dicha audiencia. Se les deberá proporcionar a todas las Partes la opoÉunidad para examinar y comentar sobre cualquier evidencia que fuera presentada posteriormente a la audiencia. El árbitro deberá permitir la presentación de expedientes a pcdido de una de las Partes y deberá deierminar el proceso y el momento oportuno de dicha presentación.

21. El Cierre y Ia Reapertura de los Procesos de Arbitraje

A. Cuando el árbitro esté satisfecho que el registro está completo, incluyendo los expedientes que hayan sido presentados con su permiso después de la audiencia, el árbitro deberá declarar el cierre del proceso.

B. Se podrá reabrir el proceso por iniciativa del árbitro o mediante Ia solicitud de una de las Partes en cualquier momento anterior al fallo del árbitro.

22. Renuncia al Derecho de Objetar en el Proceso de Arbitraje

Después de haber tenido conoci¡niento de gue no se hubiera cumplido con las disposiciones o requerimientos relacionados con estos procesos y reglas de arbitraje, cualquiera de las Partes que no se oponga por escrito será considerada como que hubiera renunciado al derecho de objetar.

23. Notifïcacioncs

Cualquier comunicado, notificaciones o procesos necesarios o apropiados para la iniciación o la continuación de cualquier proceso de arbitraje elèctuado de acuerdo con estas Reglas (incluyendo el fallo del árbitro, cualquier demanda judicial en relación con el mismo, o la adjudicación de una indemnización efectuada de acuerdo con estos procesos) puede ser enviado por correo dirigido a la Parte o su representante a la dirccción más reciente de la cual se tuviera conocimiento o entregado mediante un servicio de mensajeria. AAAo JAMS, las Partes, y el árbitro también podrán usar la transmisión por facsímile, telex, telegrama, u cualquier otra forma esc¡ita de comunicación elect¡ónica con el fin de cntregar cualquier notificación requerida por esta Reglas.

24, La Comunicación con AAA, JAMS y la Compañla

A. Cualquiera de las Partes podrá notificar o comunicarse con AAA, comunicálrdose con:

Regional Administrador (Administrador Regional) American Arbitration Association (Asociación Americana de Arbitraj e) 1001 Fannin St. Suite 1005 Houston, Texas 77002 (7t3)73e-ß422 Fax: (713) 739-1702

B. Cualquiera de las Partes podrá notificar o comunicarse con JAMS, comt¡nicândose con:

JAMS 345 Park Avenue, 8th Floor NewYork,NY 10154 (212)751-2700 Fax: (212) 751-4099

C. Cualquiet notificación o comunicado con la Compaäla deberá ser dirigido a;

Legal Department (Departamento Legat) Nabors Industries, lnc. 515 West Greens Road, Suite 1200 Houston, T exas 7 7 067 -4525 (281) 874-0035 Fax: (281) 775-8431

25. Comunicación con et Árbitro

No habrá ninguna comunicación con las Partes y el árbitro aparle de la comunicación en las audiencias o juntas de arbitraje. Cualquier otra forma de comunicación ya sea oral o escrita de las partes al ár'bitro deberán ser dirigidas a AAA o JAMS (y su copia enviada a las Partes) para ser transmitidas al á¡bitro, salvo que las Partes y el árbitro acuerden lo contrario.

26. Plazo para efectuar el Fallo de Àrbitraje

El fallo se efectuará rápidamente por el árbitro, salvo que se hubiera acordado lo contrario por las Partes o que estu-

viera estipulado por Ias leycs aplicables, ctì un plazo no mayor de treinta (30) días a partir de la lecha del ciene de los procesos o, si fuera aplicable, del cierre de un proceso de arbitraje que haya sido reabieno.

27. El Formato del Fallo de Arbitraje

El fallo del arbitraje deberá ser por escrito y deberá ser firmado por el árbitro. El árbitro deberá redactar una declaración de las razones para el fallo, si fuera requerido en la solicitud para iniciar los procesos o en la declaración de respuesta que se hubieran presentado, El fallo del árbi - tro deberá ser ejecutado de la manera requerida por las leyes aplicables.

28. Modificaciones del Fallo det Árbitro

Como consecuencia de un mandato de un tribunal de jurisdicción competente, o por común acuerdo enhe Ias Pârtes, €l árbitro deberá modificar cualquier fallo que se hubiera dictado. El árbitro podrá modificar un fallo mediante la moción de alguna de las Partes si el árbitro considera que el fallo fuera ambiguo o presentara algún defecto, o si el fallo requiriera un acto ilegal o imposible de realizar. Estas son las únicas circunstancias por medio de las cuales un árbitro tendrá jurisdicción para retirar o modificar un dictarnen o fallo.

29. Resolución

Si las Partes resuelven su Disputa durante el transcurso del arbitraje, el álbitro podrá describir los términos de la resolución en un fallo de consentimiento.

30. Alcance de ta Autoridad del Árbitro

La autoridad del árbitro deberá estar limitada a la resolución de Conflictos legales entre las Partes. Como tal, el árbitro deberá estar obligado por y deberá aplicar las leyes aplicables, incluyendo las que estén relacionadas con la determinacióu del peso de la prueba, así como las leyes fundamentales. El árbitro tendrá la autoridad para limitar o extender los derechos fundamenfales protegidos por las leyes aplicables. El ár'bitro podrá tarnbién conceder un recurso de emergencia o provisional que esté o que podría estar autorizado por las leyes aplicables. El árbitro deberá estar obligado a cumplir con las disposiciones del Programa y las Reglas.

31. Los Procesos Judiciales y la Exclusión de Responsabilidad

A. Ni AAA, JAMS o ningún árbitro deberán constituit

ninguna de las Partes de ningún proceso judicial en relación con los procesos de arbitraje efectuados de acuerdo con estas Reglas.

B. Ni AAA, JAMS o ningún árbitro será responsable ante ninguna de las Partes por ningún acto de omisión en relación con cualquier proceso que se encuentre dentro del alcance de estas Reglas.

C. Cualquier tribunal con jurisdicción sobre las Partes podrá obligar a alguna de las Partes a proceder de acuerdo con estas Reglas en cualquier lugar y podrá hacer cumplir cualquier fallo que se haya dictado.

D. Se considerará que las Partcs bajo estas Reglas consienten en que el fallo del árbitro podrá ser admitido y que dicho fallo se podrá hacer cumplir en cualquier tribunal federal o estatal que tuviera jurisdicción sobre las Partes.

E. La iniciación de,la participación en, o la eliminación de un proceso legal no constituirá una renuncia al derecho a proceder de acuerdo con estas Reglas,

F, Cualquier tribunal con jurisdicción sobre las Paftes podrá presentar órdenes judiciales (incluyendo órdenes preliminares) si se cumplieran los requisitos legales necesarios y equitativos de acuerdo con las leyes aplicables, en espera de la institución de los protesos de arbitraje efectuados de acuerdo con estas Reglas.

32. Honorarios y Gastos

A. Los gastos de los testigos dcberán ser pagados por la Parte que presenta dichos testigos, salvo se indique lo contrario en las leyes aplicables o en el fallo del árbitro. B. Todos los honorarios de los abogados dcberán ser pagados por la Parte que los contrató, salvo se indique lo contrario en las leyes aplicables, en el Programa o en el fallo del árbitro.

C. Los costos de las juntas a realizarse (por ejemplo: los honorarios del relator para la transcripciÓn original) deberán ser pagados por la Parte que inicia la junta. El costo de las copias de la transcripción de la declaración jurada y cualquier otro costo deberá ser pagado por la Pafte que so'licite la copia.

D. Los honorarios y los gastos de los peritos, asesores y demás que fueren presentados o consuitados por una de las Partes, deberán ser pagados por la Parte que utilice dichos servicios.

E. El Empleado o Aspirante deberá pagar un cargo de $150 si él o ella inicia el arbitraje o mediación. Aparte de dicho cargo, el Empleado / Aspirante no será responsable de pagar los honorarios y gastos del proceso efectuado de acuerdo a estas Reglas, incluyendo los viáticos rcqueridos de un árbitro o mediador, AAA o JAMS, y el costo de cualquier evidencia que fuere presentada a la discreción del árbitro.

F. Si la demanda para mediación o arbitraje es iniciada por la Compañía, dichos honorarios serán pagados por la Compaflla.

G. Salvo se indique lo contrario en las leyes vigentes o en el fallo del árbitro, todos los otros gastos, honorarios y costos del proceso efcctuado de acuerdo a estas Reglas serán pagados de manera equitativa por las Partes que no son Empleados/Aspirantes

33. Interpretación y Aplicación de Estas Reglas

El árbitro deberá interpretar y aplicar estas Reglas en lo que respecta a los poderes y deberes del árbitro, Todas las otras reglas deberárl ser interpretadas y aplicadas por AAA o JAMS.

34. Ley Aplicable

A. Los Procesos efectuados de acuerdo a estas Reglas y la revisión judicial de los fallos deberán ser regidos por la Ley.

B. Salvo se indique lo contrario de forma expresa en estas Reglas, las leyes fundamentales aplicadas

deberán ser leyes estatales o leyes federales ñ¡ndamentales que serían aplicadas por un Tribunal de Distlito de los Estados Unidos que tomara el lugar del proceso de arbitraje.

35. Mediación

En cualquier monento después de que el proceso de arbitraje haya concluido, las Partes podrán acordar la mediación de su disputa por medio de la notificación de AAAo JAMS. AAAo JAMS deberán determinar que pro' cesos se aplican a dicha mediación.

36. Español

Este Programa de Resolt¡ción de Conflictos se encuentl'a disponible en inglés y en español

Nabors lndustries, lnc.

April 2001 4lll)

17 de enero de2007

A: Todos los Empleados de Nabors Industries, Inc. y Subsidiarias

REtr': Programa de Resolución de Disputa de Nabors

Estimado Empleado:

A partir de diez (10) días después de la fecha de este aviso, de conformidad con la Sección 6 del Programa de Resolución de Disputa de Nabors de Nabors Industries, Inc. ("Nabors") y sus subsidiarias están enmendando el Programa y Reglamentos de Resolución de Disputa de Nabors parala determinación de todas las disputas entre los empleados y Nabors o una de sus subsidiarias.

Las enmiendas al Programa y Reglamentos están anexas en la parte posterior de esta página. Nabors estás enmendando una (1) sección del Programa de Resolución de Disputa de Nabors y una (1) sección de los Reglamentos de Resolución de Disputa de Nabors. Usted debe ya tener una copia del programa y los reglamentos actuales o pueden encontrarse en la Intranet de Nabors, de acuerdo a la política número 200.80.1, en http:/lsharepoint.nabors.com/C 10/Humano/o20Resources/default.aspx.

Como antes, el Programa de Resolución de Disputa de Nabors, incluyendo sus enmiendas, le da los medios más efectivos y eficientes para resolver cualquier disputa que pueda tener, a través del proceso que estimula la resolución a la oportunidad más inmediata. Los empleados no renuncian a algún derecho legal sustantivo de acuerdo al Programa. En su lugar, el programa, incluyendo sus enmiendas, estþula que cualquier asunto legal sustantivo que pueda tener, sea resuelto sobre una base individual por mediación o ante un árbitro neutral, cuya decisión será final y que lo obliga a usted y a la Compañía. De acuerdo al programa. incluyendo sus enmiendas, sin embargo, usted renuncia a todo derecho de procedimiento que pueda tener para iniciar una acción judicial en base individual, colectiva, de clase o representativa; y usted renuncia al derecho de unjuicio antejurado en relación con alguna disputa que pueda tener con la Compañía o alguna Entidad Electora (como es definida en el Programa), que incluye alguna reclamación de lesión o reclamación de discriminación en base araza, origen nacional, género, religión, edad o discapacidad ,de acuerdo con cualquier estatuto de derechos civiles federales o estatales.

Cada individuo que trabaja para Nabors Industries, Inc. o una subsidiaria está sujeto al Programa, incluyendo sus enmiendas, excepto que las disposiciones enmendadas afecten solamente a las disputas iniciadas después de la fecha efectiva de la enmiendas y sin asuntos pendientes antes de la fecha efectiva. Su empleo continuado después de la fecha en que reciba este aviso constituirá su aceptación de las enmiendas al Programa,tanlo durante y después de su empleo con la Compañía.

Esperamos continuar trabajando juntos. Si tiene alguna pregunta acerca de estas enmiendas al Programa y a los Reglamentos o a cualquier otro término de su empleo, por favor, no dude en comunicarse con el Departamento de Recursos Humanos de su empleador.

Atentamente,

NABORS INDUSTRMS,INC.

*(Jnø copìa de este øviso estd dísponible en español, si la solìcítø øl Departamento de Recursos Humanos de cuølquier subsidìaúa de Nabors.

4lllr Enmienda al PROGRAMA DE RESOLUCION DE DISPUTA DE NABORS:

4. Resolución de disputas

A. Todas las disputas que no sean de otro modo establecidas por las Partes serán finales y resueltas de manera concluyente, de acuerdo a este Programay a los Reglamentos. Las partes renuncian a todo derecho que puedan tener a un juicio ante jurado sobre reclamaciones relacionadas de alguna maîera a cualquier disputa.

B. Cada disputa será arbitrada sobre una base individual. Las Pattes preceden y renuncian a cualquier derecho para unirse o consolidar reclamaciones en arbitraje cono otros o para hacer reclamaciones al arbitraje como un representante o como un miembro de una clase o en capacidad de abogado particular o similar, a menos que tales procedimientos sean convenidos por todas las partes. Ni la Compañía ni algún Empleado o Solicitante puede continuar alguna Disputa sobre una base de acción de clase, de acción colectiva o consolidada o en capacidad de representación de otras personas o entidades que hayan reclamado estar situados similarmente o participado como un miembro de clase en tal demanda. El árbitro en alguna demanda de acuerdo a este Programa no tendrá autoridad para conducir el asunto como una acción consolidada, de clase colectiva o de representación.

C. Si la limitación del procedimiento en el Párrafo B de esta Sección no puede hacerse cumplir por un tribunal en una demanda en la cual una parte busca ejercer una acción consolidada, de clase o colectiva, o actuar de otra manera en una capacidad de representación, entonces este programa aplicará a tal demanda sólo al siguiente alcance. El tribunal decidirá si la Disputa debe proceder sobre una base consolidada, de clase, colectiva u otra de representación y, si es así, definirá el alcance de la clase. Ninguna de las determinaciones anteriores será remitida al árbitro y en ningún caso el árbitro tendrá el poder para determinar la certificación de acción de clase, colectiva o de representación. Las decisiones del tribunal estarán sujetas a apelación en conformidad a las reglas de procedimiento aplicables. Si el tribunal certif,tca una acción de clase, colectiva u otra reprssentación, entonces todas las otras determinaciones, dentro o relacionadas con la Disputa, serán hechas por el árbitro. El árbitro determinará las preguntas de responsabilidadpara, o de la clase, como un todo y los remedios disponibles para o de la clase, como un todo. En árbitro también decidirá el desagravio, si lo hay, al cual una parte o miembro de clase puede tener derecho individualmente. Si el tribunal, no obstante, niega en última instancia una solicitud de una parte para proceder sobre una base consolidada, de clase, colectiva o de representación, entonces esa reclamación individual de la parte estará todavía sujeta a este Programa y referible al arbitraje en conformidad a sus términos.

Enmienda a los ,AMENTOS DE RESOLUCIóN DE TTA DR NARORS

30. Alcance de ta Autoridad del Árbitro

A. La autoridad del árbitro será limitada a la resolución de Disputas legales entre las Partes. Como tal, el árbitro estará obligado y aplicará la ley pertinente, que incluye aquello relacionado con la ubicación de la carga de la prueba, así como la ley sustantiva. El árbitro no tendrá la autoridad, ya sea de abreviar o aumentar, los derechos sustantivos disponibles de acuerdo con la ley aplicable. El árbitro también puede otorgar desagravio de emergencia o temporal qr¡e sea o sería autorizado por la ley aplicable. El árbitro estará obligado y cumplirá con las disposiciones del Programa y los Reglamentos.

B. El ¡írbitro no tendrá el poder de escuchar reclamaciones en el arbitraje como una acción de clase o colectiva, o en capacidad de abogado particular o similar o sobre otra base de capacidad de representación, o ausente el conscntimiento de todas las partes, sobre una base consolidada. El árbitro estará autorizado a decidir solamente las reclamaciones disputadas entre las partes individuales.

{ll) APPLICATION FOR HOURLY AND DAILY EMPLOVTIÉtIT

nt,Must Read And Vet Wíth nature I declare that lh6 statements contalnod in lhis application are correct and undersland thât wllhholdlng inlormatlon or making a f alse slatement ln thls applicatiori'and lnformation submitted ihêrowilh or ai any time durlng the appl6atioi and pre-employment proiess wlll þe the baele lor my applicalion nol to be oonsidered and/or dis'mlssst, I auth'orlze all employers, educators and olher firm$ or person named hereln lo provldê the Company wnh lnformå¡on regardlng my educalion, êmpfoyment and medlcal hlsloty and release all such individuals or enlìtiqs. fronl all Íaþlllty loi any damages that may .result lrom furnishing intôrrYlãtfÖn regarding me.

Aà\o.) .lNrrlALS

I urrderstand that thls appt¡cation doês not obligale thê company t0 ofler me employment qr lg hire me,. I furlher 'employed uÀderstand that il I ani by the Company, my employment will þe on an "at wlll" basis and may bq terminated by the Company'at bny time wlth or wlthout cause or notice, lf I am employed.l undsrsiand lhåt I will wear the oreiorlbed nersorìal protectlve equlpm€nt-ar\d¡rulll abide by all Federal, State and Company procedures INITIALS and rogulätions while working for the Company' -. Ad Y - -,'

I acknowledge thåì å oopy of the Company's Dispute Fesolulion ProgÍsm wås avallable lor my rê-vlew ãt thê tocâ¡ón whoie I submittdrí this application, I acknowledgê ând understand that I am required to adhore to the ó1j,.-óufà Recqiut¡on Program anci lts requirements for submisslon ol all claims to a process lhat may include rnããiafion and/or arbfiràtion and that it'l refuse to sign below that rny applicalion will not be consldered for emplovmen(. I further undêrsland that my erïlployrnont applltallon aubmlssion wilh the Company conslllutes my t ,* ,:tfrt Þrovision as a condlllon of emplovment consideration'

"tÄå|\i ",lthis

lf I am hlred, I hereby agree 10 parllclpate in the Company's Payroll Direcl Doposll Syslem îÔf paymonl of ruiaäé¿¡f.'ouify employäes-and conrpþrr{ lhc Payroll Dirool D_eposlt Authoriza'lion Forrn lo implement lhe Payroll Direct Dopoali sysiem tor my pay. ,Jìd\1 ,.. - ' lNlTlALs

This applicaÏion will be considered active for thirty (30) days,

âd{4Á"r/[i-["! [*ro. Ira*\3 U Slgndltäe Appllcanl's V Dale

HF-l05 (01/07/1f)

NQ',nC F,. Tp prJ-gNJ.s SEc^ Ilptbrq ^p СSPUTH RESOLUTIÕN PROGRIM

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spl)licÂn1s or onrployosi ûnd lhe compâny. Thls pro$â m glvðs sppllcânls ûnd 0mpl.ryêo3 lhs Íp5¿ end öfidon{ mosns €l lerolvlng âny drsputas thoy may hãvo throwh s ptocoss lhât ânlnuråge3 o rs$olulien st lho Òar¡¡0$l possibl€ opportunllY.

A coÍry of {he Dlepr¡to Rosolu{¡on Progrâm is baiog providod fô¡ your Í€vl3w. ll any âppl¡eân(laìl$ to åckrrcw}sdoo orìd sgl.öo tothö'Prooi"8m,thoywlll rÉ{t,ôü)nsidersdfo¡omploymont.'ìneåcknowlodgomonllspfovkJûdbslowlo.yôurslgnelure.

f , hâvs b€e n âllow€rj ltrs o!ìpülunily lû rsvlåw l¡o Nâbol3 Olsputs Rð3olul¡on P.Dgrarn.

2. Pfogrâm lù¡lhot telms ol

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-\3 þ*keÅo T¡e La, G û(

,\ltlS().Jt,Ur'l ,1Sl¡ll{-4N'l'llS l)Ij l{Sjl}Lr{Õ ltESl¡Ji{;I.'!l,\l.l'lt(Xilt¡\tvtr\ l)U;talts(}l{|lJll(iN Df?. coNFrJc'r()s lo proPôfc¡on â y örnploãdos slmodb lnás lanor 0 hâvé6 dô un plocuso quo fonìonlâ unâ roúoiuclófl

Junla ccJn õt prosônl€ âviso ss ls âstá propôrdonândo un8 do¡ Progtânrã dð RåcolucJót1 do contlidos psra su levlßlôn. sl un â¡p¡rûnl€ a un ¡rrtet(o de !fabÀJô no âcusâ rac¡bo y nö sslá d0 åcuordo (Ðn ol PlÒfJfânìË. no sêtá sorìsldorado pâta €l omploo- so lo pinprclono osto fonilulârlodg scilso do rogbo d0 qsto nolllicacion æfl fðspéc(o âl Progtamâ do r0soluciórl do oonlllctot parâ qu0 ugtsd lo firms en u¡nforrnidacl a crxlt¡nalaLiÔ¡|.

3. so ms ha porn{tldo tovisot ol ProgrÐm,r dg Rssolüción de conlliclos de Nebo!8

4 Cot) rni firr(a a ruiltinuación, acuso rscibo ds ls hformâclén ântofìolmontg m0oclónâdâ y q)frìprgndo quo i0 tilo r€rluioro {:umplít con 8l ProÍrâmâ ds Rosoluc¡ón do Conlllctos y 3u requisllo rl0 sün€lor lülos {os f solerrp8 a ün nrocuro ou¡ ;luodo lnclulf riledlación v/o ûrbltrDlo, f6mhlôn comprondo quô lo prosÈnloolón d0 ml sollcìltll Pnrî ilmptao æn lai Compsnflr or¡nstl(lly€ nriBcof)tâddn do los lórntloos d0 ostodh¡nslclón m¡n) ttnâ crrlrdiclón parû 0êr üìrsidof ado pelâ el ânlploo.

Frma cfsr AgPrfanrs

firbäa

IrR- 106

¡'M PLOYND ACKNOW I,ED G UÌ\'I]IN"I'

coN c Ejll-l tN G N Aß()RS DISI U:rlt Il F] S O LU'JT Û N PIISG I{Àn{

I have tcccÍr'ed a copy olllrc Nabors [)isptrte i{esoiutiolt Prograln,

I ackrx¡rllerlge th*l rh¿ Err:ptoycc Dispute Rcsr:lutic:r lrogranr is r':of a conlr¡tç! of ent¡rloyrrreni b¡twcon 'lirr: ll¿ Coçrparry nnC ,,1* l'or. nuy ipocific titnc pcriod altl tlocs oÕ{ ,tlicr the ct:i¡loytrent-at will lcìiltionship' cmployment relaìiorrship bctwoe.n the Cotnpally nrrd all en:pioyecs is hasctl on tì1r:tuel c*n.qerl a¡t:j Èâlì bs tèrmirìîlcúi jrcnìe'lt c¡f catlsc'

:tl any litnc, either by ln¡rss¡¡.t,t. Ocrlpany, wilhout notioe (rr reqìj

I unde:starrri lhrt notl)ing csåtâìr¡cd itr thc lìnr¡;loyec Dísprrle iì.csolutiotl Pr<:franl is i:ltcirdc'l ìç víolatt: ol lcsir¡(1 ariy ligdtls of cntplcycos guarantce(i by stnie or f'cdrrri¡! iarl'1.

iiy nry sigrrnrurc bciotv, I acknr:wledge ¡r¡,1 {n¿s¡¡iîrtd th¡t I ani rsqtrirùd to adjrct'c to lhe Ûispuic Rcsolirtír,r: liogrànr und its re<luilc,ncnt lbt sii:nrission ofrlispuLrs tô â !ì!-crccss llì1t ¡l1ay i¡¡i,!utle ¿lie¿1ícli¡:;l ¿ltlri./i>r;¡ririiritliù¡r I

{he tenlls olthis provisiun as a contìilictlt olnty enlpioylllLr¡ìi ijr crjrlfilrltc<l tm¡:lt-'¡'mi"n1'

ì',1 a ¡¡l eLl (Plint) $ígnriiure y*c

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p*r la presente declaro que he recil¡irlo una copin del tcxto del Progritrln de ilesoil¡ciÓrl de Dìs¡utas de:.\abcrl's,

yo errlicncio quc cl Progr.ar;¡¡ d¿ Resr¡lución de Dìsputas dc Nubôls uo reFrese.nta rn corìtr¡lk) de cnrplcLr cntit llt Cìonr¡rarìía pcriodo de liernpo espccífico y no ruoCilita lrr lclnción eJe et:r¡:ieo ô \'ci,¡ntíl(l. i.:r y;ì-,i oersonripor tn relaclón 6e cnrpico errt¡e la Conrpliria y todus l<:s crrrplcaclos csiá hâsíi{lä utl ull ¿t>ttscl¡iirìl;ento nìultlo y pt¡c(iÙ {ìtiedar cosartc cl1 ciraìc¡uiei'tì1or]1ctrro, y¿ì sea pof tRi ¡rr:'lo r¡ Por l)tr(c de Ìa OOtnprrilia, sil: avisO ¡rtcvil:

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prcsen{ación d e c¿rr¡sn.

yo conrp'e:rdr; r¡rre rt)nguria ¡rar1c Cel ccnlcltirJo cicl Ptograinn <{c }ì.c:;nl,tci<ill dc L)isputzls tigns Itl irtttrìû¡iitt c>r¡:rt::t de viol¿io linrí!ar. los cictochos de los crlpioados gär'ilrrlizados por-el es{ldo o lirr lcy+s íi<{cr¡lc.s

(ìorr nti tccÒnozcg y entiùndo que sc rcquiere {Ltc yc ;uiripla c.rn cl I)Iôgì'1llra <Ji: lìes(tluciûti t1t i):s¡rrrtlrs .i c;

1-rnna rcqrrisito sr.¡metsr cualquicr rìiipura a ult proccs(J quc ptrrtiera inclr¡ir la rlte<liación y/o cl irrltírtii¡c dc or)r-¡prerdo quu rrri empleo prc.sonle o tltriru cr.rn la Clontpañía rc¡:rcscnl'a ¡ni -¡eeo¡it,ci¡rljtri'Ll cxpreso de los tél¡ri¡ro.s de cst:r disposicidn conlo conclicir'rtl dc rnicrtr¡rlco Pre$Õ¡lt¿ o li,lùro. ^riiciona¡¡cntc,

Nornbt'e del Ernpleaclo (Lelra de hnprenta/Molde) Irinna del firnpìcado

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lllE l'Â.1N lN llMl'1.û1'!!lt sl¿¡ìvlc:u iTÍLl t.!

¡ti.\l'ti rolì14rJLAlllt) l)Ìillf-!l(^ sf¿tl c01.()c.4¡¡ç iir* I:1, Âxclilv(i Dttl,llt.l¡'Llì.^l¡çl

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I$ Iha fl po¡tjoß d vrlû!om R.víed ApdI 20'.3 INIÊRNANONAL ÂSSOCIATIOTI OF DRILLIT¡G COilTRACÎORS DR¡LLING 8ID PROPOSAL AND DAYWORK DR]LLING CONTRAGT - U.S.

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Phr¡c &brr{t bb s hh ¡dlh{ frd bm }ot Èdlmloe tlÉ so* 4üiû!d belw. upo¡ lha lãru ,'ìd lF lho ø¡itcoüon æt ftflh. wlh llE $dèñláatnq {ìål ¡r lhg þld ie åccsd.d by

thl.ln¡nmty,ilæ^suuruocm¡rr*trc.nucvou.tu¡¡owb.måf¡dôfd€llged¡ol|stFlh9n-P.l¡6-'20-. to thô lollüiûg åddw: .

THIS CONTRAGT TONTAINS PROVISIONS RELATING TO INOEIIINIT'I, RELEA9E OF Ll,ABlLlTY, At'lD ATLOCATION OF RISK -

SËE PARAGRAFH$ 4,0,6'3(c!' 10,12, ANO 14 lhb Cônt-rct ls ffidà rld ûtsr€d tnb o tle drtc horêrn¡fþr æt hdi bt â¡d belñfi be pstþs haroln dq!¡0Eted sr 'Opâot1' 8rd 'îÆnlrudq.'

OPÊRAÎORl údñ uñlñ|. dll è.- tÞ Addd!:

Hô6teî,Ì.!rr 7t02: . _ .-

COI¡l¡lACtOR! NÁÈôRSDRILIIIIOUSÂLP .. AddËr: 5!3W. Odnr Ro$, Suh¡ 1000 Hoüraor,T!ru1706?

lN COHSIDÊRÀltOit of tF nuturlpronh€, øtdidm anl rgffib lmh wúrl¡rd erd tlE !!!dßø{onr erd Fp¡cl.l prôr¡tkh¡ aôt lorlh ln ÊJôbr't'A'lnd áûiÙ¡t .8. aïac¡od hâßlo and md! ¿ p.rt hmot (tç 'Cmfacf), OprrBtø eígao8 Cdtrôstor ¡¡ en lnd€pffdfil æðtredd lo ddl li€ ,ûolmñer ú€¡ttn.tod wll ü wdlE lo ôagÉà ol oilorgâÀ on a Oaymd( 8æ8.

f6 purpo& mræt, lhr lem .O¡tw.t(' or'Darrcú B¡úr'æ¡nl Cqiâcbl üìEll fumþh equÞmn¡. bbc. ånd Pérfr.[ ÉNffi æ hüah prdhad, l$ f r9êtáed em p.r dry lndq l¡9 dißdon, ¡up.nirloô and @ntrd ol Opqâtcr (¡ndü¡ìva ql r¡y .trdolæ, ¡gfft. wtlôil q skshaôld dgsged by OÉråtor t¡t d¡Ël drìÍ¡fE oper.t¡or!). ilrr¡$ oþñtúng oÕ d D.twù at ts, Coilttc¡ú that! bô lulty pt i ,l lh. .rÚlsb|É ñls ot plJmFt .rd ßw5 only lh. oâilÙ,dôÊ tøú

Itbtl,il* Ea]asd hq.lo, Êxc.p? !o1 6uch obtgc¡(aft ,ßd tleblrrl¡et a¡*ifiøtl! sstwed by îortutclot, Op..ålû. t rdl ô¿ soLJy 6pqtrúlô/s rnd &t4mt

q

llahlttl lor àlt cont.qMcñ ôl ormtlo¡s ôy òóft pdly'Ú whila û t tayffid( g.sk, locludlng r.úlb.id tll olh.t dâha Ot llrb¡llil.ilncØtd h lmldfra lo 6uêh oþtniot. 1. LoCÀllOt{ OP WÊl¡r We( Nâm ðód ìtumb€n Pârfa$l CqhVi gb¡s Texag N¡m: Wsll - lâ¡d 1,1 Addl0oisl W.ll Loc¡tlon¡ orAF.!i øta a Propar luNcy g þaNt.

lc{ [lß drilíg oa úþ rcll btlùs ç CoItfaôt Contlâctot torm¡nãtes, the efocl¡on, Sub-paragrâph

t,l lr/ell Oôpür Thr w6ll(.) rhe¡¡ ¡ê tlrfl!{ le ¡ d€pltr ol âpprujmtely 10,q00' Fæt,ç{ql¡€ fetñ€doÈsvÈ¡oås#fcdælø, Ui th6 Colll¡æþr ¡n.[ rct ba requtld huffndc¡ lo drjq ls¡d Ëil(r) bßlw s (stmn depth o¡ l¡ó[ 0nhs3 Cmf¡cþi¡¡dOp.Flømw¡lly¡grdtoddttlgagfüúrdðti. -ìlottos¡c{dcrfåcltynl¡le ¡adÉ¿rlHoolhcrlglnvdiort¡tl*ñ.dlrnln, 1, ÞAYWORXRAfEgT Contractô¡ ùbrll bo osld !l ltþ lo{lqlng ,slæ ld thô mr¡ æffomad hotundc.. ,1,1 t¿loblll¡rttqDr Op€Étor ahâ|, ôfrbiti¡sl,Òslæ4¡ s r ñüli.Étlor dût ñb q{¡ 1s.000.

thls en b! duê ànd hllllêt ¡i r€ted up or 08ll¡snd 6t ÙÊ relì âilq €dy lo ¡pud. Mqbil¡¿ôlm ¡llðl lllr¡u¡Ji.

4.2 ô.@Ulhrl¡ônr Op3ttlü rhël¡ F y CorlEcltr.{æùÍiúSoo.lcq{a'¡ 6 r dwb¡lk¡ìþn day nþ d{d¡*L¡srsß¡t ¡ 19,000' per¿¡y, hffiv.r lòlt rc deñoùl[¿tf6 lêo ¡håll bê pgysbþ ll thò Chlrâct ls tg¡mlmlâd dw lo lìE lolol lN q dtrltudkn otlhâ dg, Dêtþbillzaüs shall ¡.dude: the rlg to lh€ noar€st *Plus âclual costs cÍan0Ð t pcrmits and $4,600 for man-llfl6, Itght towert and stdng down larulnas Ue.d¡t1Ráì€gdü.áå{¡fi+ejeå ?ôFa{leHå.|¡"q Cs¡¡olcG${á4¡ _- -4J eaF+Hl¡¡ese{}l€u{3ìÞ a4 Opetadr|g Dry Rrt ¡ fs FÀ pcrfuocd por lvGnt/-lout (?4) tur doy *ilh Ftvo (51 mn cw lhe lpeßüoo dÊy Ete ¡hdl ba:

Drpfh l¡twal¡ Frtr lo Wlthort Drlll Plpt Wû Dfll Pl9t RIO Rêlêâs! ¡ 2,1,000 pe. óay s__-_11û!9-ætd,y I dty dâv t ddl t Fdry Uô¡ñ0 operâtors drir ptÞo f r¿l¿9gg_. për d!y.

Tho €tô will begtn wtÉn thê drllli¡g unlt i! íûgod op at thå ddflre lóc¡ùs, ü tBil¡arcd ovlr ùe loÈlio¡ dut¡Dg mlìæ N¡!, å^d Hdy lo ønruG opaßôqn!; e.ld stl æssn ll$n tf8 d0 ¡N r4dy lo bà tþyed od $ô lqüqn-

tuÊ.dWkWá'Pry1) Fm povidod byFom! O4.A.D¡rk Coñ,n0nÉ2003 lnlmoìirn8¡ ANclsüm ol oílll¡g Conlffi¡ (2J4) 3,{04429 . FomsooÂDick.€m

EXHIBIT ''I-8"

o o ll unds h. ohgvê 6lùM ,wlúr Driil Pþe' m ðþs ¿ß ôpécjf êd. úrô Ël; ter trMüt.lour ter dry tlm dfill ,ipg ¡r ln {s ahðll b€ ù. applÈablð ota opedlcd ln fia

ÉiumÍ 'W¡thoú Þl( plpô,, p¡s æûpôn.útjon tof sny dr{ll ptto durlly uÐd ¡t lhê nlø rpôdfàd b9¡, ænpuled 6 Úß bààb ol lh€ m¡lnum drlll dp€ ln u$ rl ô¡y ¡ims dlrl¡g êâch lËnv'loü¡ hel dôy'

o'ln prFE pERt¡-r{ouR oAy "^fE olFg{ln¡lor gtnlghlHôþ Sle ctú¡ unqorbollrÞ¡e oo{rrd Holç g¡10 Gndt c__tl[_p*r *"- s " N4 r.,n ¡ N/A pcn. ¡ NIA . ærn s NIA æ.í ¡ ,. NIA p¡¡tr.

olræt¡ütt Or !næ^ko{|ed dqi¡tod hob Wiü bÊ dæn.d t¡ êXhl vdtrn dÈyjstoñ ù@d. d.l¡dl 4 Y¡hln l¡O chsnge d ¡ôgþ sEed¡

dâgræ! par ore hund€{ tæì, Orilt plpe êh¡lt be sndéiåd in @ not pnty 9fþn j¡ rctwl us Þul slrô ú116 ll l¡ --

b€lñt plckcd up o.låld dm. WhEn d.lll pìpo 19 rlrndin0 i¡r úa dfllck, il ¡håll nol

b6 €n¡tds.d h !¡d, ptfrided, hffiw, th¿l ll Ciltrætôr lulithtr òpedðl slri¡ls ot ddll plpe, ddll ællrF. ¿[d hlr$lfô! lÐl¡ 13 ,úvit€d lor l^ E ilbil '4", thg sme 3htl -

bs ñlidered lõ !¡c d sl¡ üm¡ {tìff fi bc¡ti6 q lnlit Eleu¡d by Op.btd, h þ av.¡{ Éhsll fflt¡s¡ olsî haf b€ ænt'dlßd ¡¡ Ç0ñÈUng ìtß ¡mnt ðf 0ru drill

!¡ps ¡¡ 0!€ but !!dt t¡m 6h!ll þe Cmputôd to lhe ns6l hror. wlth lt1¡Íy minut¡s ( ffiô b€lig cNide¡td . lull h00f añd ¡iN lrr¡tr thftl mif,dre nol to bô @dod.

ts

+6 R.p¡tr Tlûo: h lhe.Snt h lr rcry to $r¡t dûrn co¡ltsdo¡r rio tu reprit3, erdudhg fwlæ lh eryldño, cmttEcl4f shâu ba ¡lhwrd ffipen¡rtio¡.ttheãpÞt¡clblor¡têføut¡Mld6¡nltm?upbrrorlß¡mof ll¡hl18| houÊloranyo¡€ri¡rat€lt¡ob,bljtrottoexæod@!ÈLtiltrligltþls I olsu.àffipôBrislot!.ry€l€td¡rrc^th lhdê¿RÊr.Chlrådo.sh¡ilueøp¡¡saledrtsrÁleol$------åtgl8l-p€rtwlly-ftur(2'l)touldôy.Rddtßtig I

iwldrg.hall lrldùdô, bvt Nt bt llñllcd lo, cuR¡¡g snd íþpiñ9 dritling lI¡â,.¡rðnflîg pom, s sìecl rxp!ñd¡Us. l¡¡ltn! BOÞ ¡guipûËnl. llff¡ætln€ fig' aod þmt dr mhrryr¡nc¡. . yvhsr trellt nud ÞûdrÞt rrt-ßûllrd to b. 6od ¡lmdbmourþ, thô tlñlJrmil ch¡n¡lm ddiltúlrh 4m ilr{r .ll|[ not b. I

a.O 3t¡ndby T¡m. R¡tr ¡___¿_-__l ps-hú;ty{d(2{) d¡y. Ståndnr uñ ¡lull Þa dûfi0ld lo lídud! ltu wh$ tho l¡ ¡r dul dM úD{{¡ì ln mdlË | -t lo bêlin d ælufr opadlíons !(lf Cóù.Ú ir @ititg 0¡ ordetr of OpGr¡tor or o$ mt¡trls, !ÊNk¡! 6 oltrs it ru þ bo tum¡EtÉd by Opt..q.

,l,t DtllÙng Flqld R.tu! Whe¡ drñllng llqid! ot r typc rnd d16üc|rtutlc lhd íntaÉsô ooîfôqol,¡ @51 ol þdomne h€rcund€r. lnclüd;n!, but nol lhút¡d tô, oÈ.basd @d ot pot¿id(ñ d¡loiltê, se in rs, Otêrator 3Àtll pay Cñlllrtø ln ¡ddh¡on b thô ot€aâÙñg rde rpedd.d ¡bovo:

(s) t---lo- pa hrn prt dry fo, ConÍæIt's fo-Ete p6ñml. I lfo 1b) t por dôy sóditþrþl oF?rrlínf rs{el rnd I {c} Cost ol âll labot, ruhírl ¡nd $M8i þlu! hürr oF€råÙnt t¡l€ lo clen dg ûd Ghl6d ôqui¡môL I lütll ollhr oprnllng D¡yfflon,y.r*, d8 torc! ü¡Joud R.t6' r Fa) lo" d¡ttd.nt 6tin@ú p.íod ti.tndrut of¿nüffi rr w¡pq¿¡ qønmt ¡c ---lM!0bElø&lruI- I

dñí.d d dug þ ændillffÈ oa Fo@ ¡rtaþó .s &f¡ed ìn Pa@gr.sh l? h.ræt lt as, hmwr, lndeFtûod th¡( 4t¡€ct to EubÍs€gr¡Þh !.3 ÙÇlor, opgålq øn relrs¡d tE rlO In a@rl¡nÉ wilh Oprß(ol6 rlght lo d¡úcì ¡lopp¡lr ot thôwrt, ¡fs{iw 6cô @¡dilhdr will Þ¡t¡lüE ri¡ ùc ù¡ ñry€d lm $.lo@llm.

4,9 Rclmbsntbla cótbr opmtd $s¡l re¡ñblru ôont¿cþ, tq ft€ slG ol mtqù|. tqu¡pmt, qdk d ws¡ st¡ìd' ¡E lo br fmithod ¡y ope6t0l 8¡ proyldodtulh6Glnbuuhìûlôf@nwnþnceæatullytunllhedÐCùf¡dorrtOpoûtodgroqmd,plw*--l¡0Jlgl-pdæntffl¡uc1¡soslothridktg.Wltr, I .t Opgñtü't nquql ând W, ¿aûtador'c agrÉmon1 (hø Conhtl'r leilsùqs .r Súù.aña..ôk aot aruln fiñß ot aøalêôs ||'¡.¡ên OPø(or ta Rgutr.d hñln to p.ovt.to, lor pw?aer ol tta hdqrlty àîó ô!úçr NavLlon ol t¡1,tt Cøfrrcl sld ltrt¡ or srt cs rlral, úa dMad lo þ. oFñq {wr¡ltrd /lqr¡ ¿r 6.Nt&5. Any êubcgnlncton 6i Nftd shall ba úwød lo la Ora'f¡çb coot¡€clor, úd opú.tat gh.tl to, be ßllç1.ó o( 4ry ôl ltÍ ¡¡obtlld.t ln frat&öú tùürvlilr, Noarvllhsadnd/þd th¿ lorago[îg Contrt bt sh¿tl nol bc ôbttûcd to pwhts. tny ta.m, at bah.il ol Opñrü, I

4.lo RrvlllonlnRdf¡:'n¡Þril€se[dotpâyreñl6hminsetlorlhdütoConir.clqlMOpcråløihtlù?Hiledbcíetlhoch¡n0ain6¡r¡lltÉ@Gola0y ol!hélmherairutlorlillÊdrhat¡Erybymor6ûân ætol pøæntfaffithaæstslhôrsf6thsdåtóollhigconhetofbythesmper¡nlqnslhedâleol I sr? rûvl¡loo gueu.rt !q lhlr gubp¡FgÞphi (.) L¡bor @!l!, læludin! .ll Þónelf li. ôf cqr¿aols pc¡dndt ib) CølIqcloi'r cod ol ¡nw6n6 prsduft: (c) ContEclgr'3ø.tofluel,lndudingolll¡re¡{ndtesllh.æ!tÞor¡61þn¡MCFbehSl t¡rA lOptràtù¡h¡llplöYld..llfu.l. tdt CohlEdø's @sl oløledno. qhen rpÞli€blo;

{gùf0 U lnil b sny ttr.ñge kr or ngulðtìñ¡ ln the ¡@ in ot othar unloroH0, unu¡!ât éÉnt lùrl slld¡ Cøttrbd{ tlnsndrl bwds, õ. fltrE ÕF PAYI¡iEU'

Pryænl is due lry OpÊrolqr tq CarlEclq s! lollfi' ü.1 Pr}lKt lff ffi:l¡¡aim, ddlÈr4 .nd 0ü6r hrk p.lorñÉd el opplisblg ,âl€s. ord Bll ôltEr rppl¡{rblr ú[QÊr ¡h9f bc dre, upoû Fg9ãbdon þl lnvolæ lh€Eld, upotr @mphdoo of ñdfrl¡on, dômtilt¡ãhi, rig [elûo¡e ar ål tL oìd ot th¿ ú$th h whKñ ¡uci {q* wes pölûrìêd o. olhd c¡¿n¿! aß l¡sQd, tìi.ìry6 fholt ft¡l qur. A¡ ldvolocF náy be Nlted lo Op€rôtd st tha eddegr hcG|mbow rhM, unLæ OpoEþt dæ9 hqÇby de!¡Onólêlhãt auch inwlq dÌslì ba mil€{ g¡ lÒlbw¡:

5.2 Dl¡pltrd lñorcË.nd LrS PaÍm$t Op€r¡to..ñ¡llÞ.y.ll ¡rc¡@! R;ürh lr¡rtv ltoì d¡tt ¡nt re@ipt evÞl lhtt if Opqe lor ditpùt . 5n {nþi@

or êny p.ri thqrool Opcñbr rh.ll. w'¡t¡Ìñ Íieen döyr gnc. r$þt od thr tnvo¡oa, 16 ß¡rm thdeld. !ñd pâyræ.n of thâ noltt Codhúr ol ûe däput€d, tp6cl.,yno lhg

dbputrd ltm ßy b¡ w{t!¡atd unül ætüemqìt ol lhå dkputÊ. b{t t¡trtr|y pÐrffiô( 3h{ b{ oÞdc ol rny !ñdl:tuled po¡iio¡ A¡y eñ! (¡îclud¡og .msntt ultlmlgly p¡id Rilhr6lpsdtórd¡lpútdlorcþs¡noipâ¡dúhhtmåbo€sprdfedds'ãrbs¡l¡ø.lnl&ôstrtlherålóol 1ln psæ¡t or thê firúwn h€hl rel., wfibh@r b lg!r, per æ¡$ ,rèm thô d@ dôte unltl påid ll Opeñt( dG et páf oilí3M€d llms wfthl¡ lhè abK Etal€d dG, Co¡lr.dû wy $llpeûd oÍaraüm q bñim(e th¡t Cofìt6cl 4 Ëpêc¡fed !^der SeÞprog¡¡pb 6. 3

6. ÎERMI õ.1 Oúddoñ ol CoñËcti lhb Coñ16c1 sh.ll r6mrìn lf, tuÍ ldc a¡d sffocl uül dr¡tinq op.rôtio¡¡ rê @mplêlÊd @ hc þll s-€l¡€ s9€clrl.d lf, P¿69@pñ I¿lÞv0.artorilo{fioa--@ênd¡g onlho d¡lt !þoc[þd ¡n Pâtrgñph2 aborg ¡,1 Ë¡ds¡lñr¡om+€tstlêæy+¡dqodabc.¡sæA!'hçskæl¡F -----------{Í{*}4{.++fÉ{¡C{|-.."...-.,..-

by r¡\,i.râ ndræ lôOert ador 6l l€alt ---------dút€f¡¡0.{a{npL{s{r-$ssL1ùÕ+àalr¡OÈd{€d or+ {ol u¡Þd. , ---_--

Ê.t Ê¡rlyTcmft¡llon¡ lrl gy Ellhor Prrty: ùpø givlnq ol wdltê¡ ìqnæ, o¡lhsr p.fty my l¡ñ¡ælê lh¡. Cølr¡d ffi lohl los ot doÀhrÇllon ol lhê r¡9, o¡ ¡ djd b@kdM Hh l0defñìlB Eprlr llmên¡Brh¡le ¡þÞt)¡ng opôeüfr! hgdndcr,

lu.S Uv&cûñd-Pry2)

Cøyrlthl C 2003 l¡lq¡Êli@¡l A5¡d¡tb^ ol Orillinû C6t6ótors ¿ixl"3xf#s :lj,îiËftt-'J[ lo

lb) By oo ôp€.rtoi NótÊtth¡ùrndl¡¡ lira ploy¡¡lðÉ ot ?¡nðEph 3 tlth 6Êct ic fþ d6þah to br drilþd, opffðþtr llâll deplh, snd sve lh0Ù9h cslmctor ha* lhâ rhñt lo dlËd tñf rtoppoec 0¿ lfte hâÊ mådt no dôl¡u( htwnd¡l ln sch 4ênl'

fiù/¡'(t^Pd ffi

woft lo bô pellomd Þy cmtrrta. ¡gl€wÉ.r .l Àñy l¡m pdof lo Ésch¡¡g thê ¡pocll'Éd

Opgâ(Éi .h¡ll nimùurs Co¡l¡rdd rt æl b.lh ¡¡l Subp¿rôt€ph I { h8.eol (c)8ycont6cto.;Notwilh¡hd}{lhoploÌl.lwolP..á!óphsúh'e6pæltoÛFdÉF&lobtó'ilÔd.lntit.ütQpoctùrlulbgdlnldvdt,qbi adlñtBled ú ban|(Ngr q lile. by My ol Þgtiltor or ðn!w, a drbþr,6 p€Ûllon q ollpr dâãdino r4Ling ôdjstñq¡l ol opemtor'É debt'. ufldtl rny tahklgpEï d dob{Ólr

¡ô lb¡t ¡gatñt opf,êtgr, d h €s r Mlv6r bG rpptlñl€d ol op€Þld q oÞeratols propôrty, ol ány Ðtt üareðl' d Èñól tåN3 ¡w o, hêr.¡ttrr ptsv.Í¡m. or ¡t âny autù

opdåts,s åfrìrs b€ plaed ¡n lhe no^da of e crcdltó¿t Conn¡tlæ, or. ,olld|hq lhú buCÉtr diyr prir wriltt¡ ñ!i¡Ê to Opã¡tor If Opåàlor dë! lot Þây Canlñdd ul{lspJltd lt€rs due and fr1n0, Çodod9a trgy, ¡t lt! ôpils, {1) €lê'l to bmln¡te tuft1 p€rlorffiÞ of uy Krt lnds withln ûæ tfmè ipêcìfêd h SlbpsÉgnth 5.2 åll In svbpargoEÊh û.4 tt.læí. s (4 s6pèrld ÕtetaÙslg t*{¡ oâyffil ¡s mã(þ by o¡rÉtr ¡¡ vùk ¡ tN. Cñtr¡d Ênd coôlGcþig.hil ùo empeû!¡üø lh0fi be N æl lo¡lh avqt ùE ltandry trffi Ρte mlâinert lô su@ðÉgßph 4,6 $âü âppu wtll Êaimt ¡E mde ry otdslor lod opemlone åß Ésmed. t¡ tddi,ol tÚ coîlaffil' dîltL

to surpqd ôpeâalonô or tffittnaao ptúotû.ncé ¿Dd3r frút Pl@göp t|, oPRlü h{a6y qlrctgt fgfæt to ø9lccf, lctqd and tfttffinlly coûrrä,gtot lrcm aîd ôgrtoil¡ aûy cl.¡ms, døtn6. .nd ç.ysæ pt..lloìt r,ratudïng ótl corú¡ of dk,sra tntev ol oqñto', oîfllqb @vffi,@, ergd ed/¡/¡'t ffitÀr t any o¡hv pttilæ altrítg ltd ôl anf &llllog cofrmtlnaols a' obtlg¿tlafrô Mlrtaod tn Úl lsto' l'nod tgl,tr4' at o'hÚ wl'lch iltf b"lh# "ffiït'

by suçh ,utpattìøn ol op.ñltòñ u a.ñ¡fr(lü ol PadomqÃc. hqaEda.

6.a Ëttly Ìmln¡flo[ cmFÉdþn: (61 Pr¡or to comncntffi.nti tn tlË .E¡t Oporl'or tsñ{nârs hlÀ cñltffi Pllor lo ffm¡c¿mént ol oPelgtlor3 hrüqdsr' oparsbr rhÊtl Páy C$lGdt ¡N

lhuidalø dimae6dnd rctá¡ ! PânEltY tunrp sm ðl l-J!t ¡qq-. I

(b¡ Értor to Str¡ddlng: ll scô l¿qdor[on EUF al\Þr øw|lm¡( of opcntrfia bU ghr b lh3 ôtudd,¡g 0l th9 well, OpeËlø ¡tEl P¡y to Conlfadr ìha ea ol ¡hêfdlortrE: (t¡ €ltc¡pénær ÞõsmrL{ynnd nlGsadlyloryrrad d# þ bt i¡cur.d ry Cmù8dd rylôM ol lhe Cüfac{¿0d ry Éâfi o?ÚË tromâlulelg0lmlim ot lhe ffift, todudino lhe flpoM ot dr$I¡g ü ols ffi mmMG ¿ßd ¡ùlsision dkactly oÉrfg*d lo tàs tie; (2¡ ls pe rcsd (10%, ol lhè tmut d s{¡ci relfÍbuftãblB lptn w'ld Co0lrådq æñffi otly opcølio4t hôÊndq dff to sh dtlr 13) I sum dtcule{d ¡l t}E ¿bMby {iE råh tq llt ürc fph the d¡to s¡pßnrôs; snd ¡Ut's€q4nttolhódðGolrrniß{úr3wi¡lalodconhðddt€â8m¡bl.l|îÉiôdl6mntþitEngandrquipW¡l@ lh*æ t¿.|¡ ø l9l * P¡l¡c€ 9f tit¡c' O,sþ.-tào¡¡ p¡r'4slrdtrr.]å-€{d¿lh-+¡¡ô{ùo'c-iåèfâF l¡rr*¡o-ßâlô'Jst{"t"sd*ffiLbq'Þefrrhãl4d¡

{¡t sublcqsnt to apûddln9; It rùah lrmh¡lþn @rs .ll.r lhe sFJddidq o! lno Kll oprsbr ôh'll p'v Cont'¿ciot (1} t}é amou¡t lor 3¡l ¡Pplbtblô ôter lnd el ottFt f¡årlg ¡¡d oimbue|Îfit8 óus !¡ CoñlEcloc btli in ú ffi¡l lhsll ¡udr gm. ê¡doliw of r€lebuffits duê, bg l4! lh3n would luæ bæ¡ ¿¡mâd lot-.lfltÊ.1ÞL_- ttåy} ð1UÞ lppilsu€ Ele avìthout ôrill Flpô" ond lhe acluãl âñunl dú9 lor dr¡l plpc ùtod lñ a@ldaM wlû tha abcre | r.tes: q {2} et ih€ óþction al Coðtr|clff rnd ¡n l¡ry of thg lqeedng, ÉÞdEld lh¡¡l pry ôoñtrøtor lor lll orQon6É ßltmbly .[d Hsriv ìmu¡€d â¡ú lo

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?. cAslNG pRttoR lr Opd¡tor shsff háw üæ rhht to d€tgnâþ ttu Þrtrtó ¡t whlch dtng *ill bê pt ed llþ qamer ot slirtg, cñt¡$ig ánd tÉl/ng OpcñÎo¡ my ûodlly lno ør¡ôg p.o0dñ. ttrv.r, sny ¡uch modi[øUü wftldr mler¡sty lnde߀ô Cmtú¡odi hå4lds of æsb ø¡ 6ty Þå ñrd€ t4f mulEl cdsnl ol Opsat( and ConlÉctor and úpæ Egrffim æ l' ó! .ddllloÉlæmpeoelloñ lo b. pafil C6lEd6 at ! Érullllìeræl 8, oRlLLlfG tilEltloo9 AtlÞ PR^CnCã8r !,,! Contador úhâll mhhln F[ enlrd cquipml ln ooôd ørÈlüq et sí &mr srd 6ñsll u.e .ll l€asmbþ ruanr h Fesl ¡nd mnlrd fGr ¡nd bl$Dut lnd

1o prolêc{ ùo hole, ônd ¡l Opc6lo¡'r Gl, âr ál¡ ùru¡ dudr{ tbö dllhl oa lh! srll, OperâW $dl hlw lhe tqhl þ mltol ü. mod t€@l prc!äm, S.I Eublecl tô thð tðms rnd th6 dd'thg Íu¡d ¡ tna rrd havc cb¡r¡d¡ristlcg rnd ho mâtnirlEd Þy Conlñdor ,n t6fdanÉ wiü the ßpdlwri shdn ln Erhl¡it "A'

Ml b€ ol gj €rch p.r1, hsroto â9Éa6 þ $ñtiy wllh áll hsÉ, ruh€, ald roguldt'on! 0l ¡rry lâdeÈ|. sla¡o d lÉl tovdnmmtal ,vtbsity wlthh as nffi Û my ¡ê@me åppt¡€blr to ûr¡t partyb opø¡lm wcd by q åùino ùI ot lhe p€íomgË of t¡h Coûlna¡ Wtþ¡ Gqul.d þy lfl.

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'ha¡ rÞpt tq tht! Côñlôci tn thâ M{ any ÞqiÍø of thtr Contrad h l#rlrbnl wilh or anlÉry 19 o^y lrpll4bh frd3ral' dde Ùr hqd ¡e, tulô d .c¡u¡'liltî, sotd pftvtston 3heil b¿ d¡cn€ú to ba nodlfed þ the oftil .squiFd lo æmÞry wilh lold ltr r!¡c o¡ rßgulât¡q. ênd .s p mdifred laid D@kfm lnd üb CtrlEtt lhalløl¡næh fu{ føæ ¡¡d l[ðd.

6¿ Cmlr.dd !há[ kæp 6ñd tur¡¡6h 10 Op.r¡tor ¡¡ ôm@te Éæld ol 8E w¡ p..¡o.@d Bìd ttrul'wô drillêd ôn lhe no0{Fl D¡ity OrtíÍlo R'port Fm or ol¡s lm ecdplrblc lo Op€ntor. A bolbtô @p? of ¡sid lqm rhsi bè Íum¡*Pd b, cô[l6c!0r to Ops'lor

!-6 tt iêque¡tod by OFôÉto( C$tår1û irslt tu6¡eh opf¡lol *t$ a @py o{ dglisty licÌib ðYe¡ng enf mlñql g {[dþâ Èov¡d€d by O0+¡ltu ând æiYed b, crnlrôcq, s, tNGiÈ8S, EGRESS, À1,10 LoC^nON:

Op€6ld breÞt lsglg¡! to Cafllnrbr !l| 6øs9rty rlghE ol lnllcs and sgdr wlt¡ rsgæl t! ¡he lrËl oo wtrch thé F[ lr lo be focdêd ld lho Þertoaroe by êonrr.ctor ot ril @k øtsþtÊ(.o by thl¡ cútfâd shouB c4liacþ¡ b€ d€qied tre âæ to l¡è læ{¡d ,or lny ra$ ml rs¡mbly sJl¡ln co¡t¿cþat cmùot. ¡ny t¡m lost by Co|Ìr¡dg. €g € 6ult ol guch de¡ial 6hafl ùê pskt lor ¿t lha 31¡îlby üm lgL, Op€r¡tor êûræ! ¡l ¡ll tfr! to ñs¡ntain lhã ro¡d Úd l6liF tñ ¡vñ a sdlh th¡t wÍt !ilût fæ se.!! lnd ffimt to ånd lrûn the dtìriñg !¡lð ln tn ddinatlty equlpped hi!¡hEy tP! vehhlô ll Conlacld is EquÉó

to uso bvlldoætq ¡!çloq bu¡whæl drlv6 vêh¡da9. or ¡ry Þlhd lpoclrli2âd fànspoût¡on !q!ipm^l lor lhè ¡ffi¡{ ol nwry paEùnú ¡Éch¡rery, tr equipnEnl ovst ¡&69 rord¡ ot on ll$ ¡iritlm0 tMtiod, Op€dtr rhsll tum¡.h t¡s sm al lû ëæn!¡ ¡¡d wrllþut ærl üt Co¡!e1d. lhr åçtusl 6t of l€p¡ki 10 any tßnlpôrt¡tion equ¡pmot ,uo¡lh€d uy cålÉfrr d is ,3lHæ¡ dtwgêd 3r r re¡llt ql hp.opêtt mÞi0lalmd àæeß ËdÁ d lædiq wlll ÞË dt ry€d lo Opç¡ålq Opêr¡tqt lhrll rslnbqßo Crtr¡clor fs oÌl !mourì|5 æs!@bly ôrD!ñdcd by Cô.rtnc{q fq rôplirs tnd/or riìñldæffit at 6åd9. þdd{s dnd ¡elated

or slftilâr lbclluer (publícand pdvt(o) rrqut..d !t à dk€ct oi s dg ruw Þtlüuanl lo pelom¡@ h'rê!oós- Oporab rhlllb€ r€scNlble for ærl3 ¡sqi'led 'a¡!lt 'oy úlh llvallnç tm dg ùaÇ¡ute 0f l€tlo¡ 6atl¡rlg.

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n q*p útpolttæßtÞørrdæ!ßE{tÉq4o *¡iâl,'¡,/rt¿ðdo b'*ú!n^7xà þutt ato[Qp9õ.6q8þe4@9qn, é J¡rqfril. ltú ¡a to 41úìîúù t e añ F øw r)crtûdo ¿õ ffiÃotdÞ atqmdo to e^.t t4 tâInuat¡ ùalrryuô. ,t lvltpd 'rotu.d ¿o ¡luêd lu. lo gowÛIðtu ttlt þ løatll fitnaz ¿o .tnoz ?tt, ot ptaûq ttotßr.t ptta W4 |ittgla tât*ÁF ,Nè pM ÃN to ûÍrê /ô $ffi pts '¡p¡rrup 'Mt]tc ,e Ër-{t6¡ p6 u&l mxya¡ 4J/,uwt4 Fw ptE/pp 7$¿tt t¡t<¡s pua 'þl Í{rn fl ¡w to )NqÐJ .tË1., ¡ftllt Joür.do lvua p uoÐ'tt!&tâpq s,¿.,,'¡do í'tL 'ael !úè npun tÊrt!øEd gtleil fuøqw MupaÙ a$t q ø)otmt ot rtapvaøa

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&rþrrÞø, ,¡Ð¡ooJ tla lo sto?leñ hqto ot p/úu tnô4w 1¡14, totwdo e@ttrÐdo upw ,!pñp ûl) rtll poldns Âytdo¿d o, tÞortettlrrflö eryd tblllÞw 9.qþt ,t 10 'lrflat @llaûl atlt to ôuÈttt¡Í ¿o 6l!!¿erut pua l*mÐl

a ìtût| ,wt$p{æ ÞrjJntgrr ¡rH q¡l¡ d, Fp{æ¡ðq ¡uo$Ð9do 0u!Ip s ßÍml gq q o}no Q ollllù Þlunffi }qqu Jopq¡eÒ '{î1'r {Ðll $ìequnlw ,¡d|t! 'o| fËuqt pg y|{ ,!qpnpq) @|þlntqo æ .3eilpie mp!ñsqo¡ ful ¡o þÞg¡bc aiþoE

oo Ni H[ sd 'Bu¡@¡d 'ru€tr|¡ 'lqoq ur 'rulilÞ Ëffi udvryN oo orâtffiorw¡lodrmfidnt ü d dttk,añäø vót.nwty 8ffi1 'þngalopñlaty.oler#tttddffi$Ølrtt'bPnçi{¿,t',riôö*it¡8¡tñtrdf0lndùNlÚytAfillcptttlbtÅottlMñyþ',ffin'ftttht'dt'y pKErl{ PcÊgráp¡l uü wë Àqr,2W3

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ty t'¡dÐtt' lþltfty lpsace' vøq u*¡ üê lâ'ffi lry no dgä sl Súp.ã¡rlptt 1,1,9 M,1rn Coffiot drd Ôtrd¡lw ,dÊôy a!Ê úa bq Ettplotlú dlhs srôeúûrb¡.rqnrtdþbtffiñtørcfrrí*ltæfi'|¿túad, I.4¡tlotv/rml4Úcølt ¡t{rtüøaintadtt*tuqd"s¡plaÁhl!¿t'üttÛúgrlüd tn waîç. .¿qú[nn.nli oa l¡6eñnüæ atßtl øulomû:ß; tl! h. ,øffidÈl lô MlÔñ L lhr û.xtñM ñNat ry t¡ñ'ls Fvmltla¡t uildêt âùch hw'

ut',w û,rvtfldwdl:g'ôñiütutb.w.lord,ôcoslol¡r{Éilrgs¡tþrotil/údt{d,€ t{dls lotú4otffird{/stydrù'È*tdc€rdptoP"t t4,to Ú8 a!ffi o{ u1y ø4 lPñ Mnedl&.t úó et',rù, tnd opølo¡ ¡r¡a¡ Éreå ,., PlolÑ, da(1¿ .nd lddomntÛ Contâe/.ot ü'a ö rll¡pl6 cÛtttdm .nal ¿g.f,ta.¡y lâbttfty lof tr.b êota.

lut poíulod or coiLøln ltont ttofti,littrt¡tdrq .rytâ hg tô altc ûömry coottd.ô tftn!û, *coþÍ aha 9þv!skn6 ol Pâãgn{ht l0 ¡nd t¿ ,l ls

lnlq.lood tnd ilt.a.! by ind ùalffi con"tclv üd O¡¿fttôt lh't lrt ßFÑtlblry tgt pothtllo' ot conlàñln'llq thtll lt ât ldlloß:

(4 cû,tdote¡ stE¡t ßone ,lt n¡potdli{À. l!., hcÍrd¡g cortq' Md drc6' et, tnrr dú ptotæl' tf{/'vø ûl htdt'wÉy o't'lq Itom tñd C cå'nq 'lptEl Úffi&¿nd 8w ol úxsy l¡ø(tüd¿ûsxrtf pgfl¡/do" Ú ñílf/r¡gtontwìH' ÙtÈE'rs¡òo/' Íto ttr'àctc,ùÂtedúttáÊftfr t# ol 'ûû ptffi, "rth''bd l.ñ øêil. ,lE, *úo'ly Co'tutlt"s pogs*¡lm tttú, ttb,lilrÈ, nr'¡ot úa,prpr dopq sûJÊnß, ôdÞst ô&P nd 6rtrç, .¡od @eJûbló poñdott 'n ,nd aoñtol .ûd dlÉdy rssocjtfod ¡ttlâ CtrlÆcr/ot\ .qdpñØt ttcilt[* âôd

(Ò) Of.rror thú sñ¡g Fpcr¡ñrry þr. fiør¡ørû úrLíd tõd lttdt t*f Wactü rnd r¿\ lqptfss¡ cdÚdt6 &d Êt¡to, úl tffif ol, ttt¡n4tp¡dr4 ttr',cøia.lw tt 6ny th, itw üd r!.ù¡'l dl c¡rne dqnradt, an6 âurF al .cllon ol çYaiy tl^d .¡d qrtúclø t¡rtitg drN,ty or kdl/tw hdt tll glh* poilvloì ot ionltmlnsttú vhlclt ñty wn .tuthtg lô? gdlrd ór' op.nüfit hñwdar, þtttttltgt hú æf ,trtù.d lo, lh.l wlilch nzy tútl'M rtt] òloþ41 c.ttdjlÐ, ?*{pg\ vûy ûlç wtifiñ,dltw ol or, 0Éf, Ëô. øodtt Â3bñq É ${{ß lôt ø ø @or¡lott ol * ùfrrúfi/,d*hclut*tç' bJ¡ñlf''¡#Ñdlgt ù ?r.Átoe of ù6. r .rrdrk Ðtt' trÐfrd ù1fltg t tß, cw¡trnlr,fld 6rd¡8g r cagtlÚs' ,ùl C&rílÐúof, Itd tbt æYtty Dfwtlt sttd fnltdc Opdalol $rl !ð¡õa conuwlqa¡d tatstf.úß, cúturffiúd.úrat lralúúl arylfu olnf ßrWWQâf&gútg (cl tt fN wl ô tt,ld codrrt u æt d rrf,&don r{fr¡r,t È¡n! ,ü pordd¡ ü câtøûffiü kt tlff, alË Car¡þaù, ü Orëãol' ¡9r ,ltm &ét '|tly òa dÞ !m ü d fÐ Ft'(ú h pt¡fühn' wwl+ /r årad tú ¡'ç ,rlqfy Âþilq lha rcÐnrþ}fy',ry ûwlÞ¡ rrrJ, ôo sqH¡d64 s !.iær Cd¡ù¡tto. dd Crprdø, lo pñf ,ù wlrffi ha wd. w Nlqûê.t hsd gtþnú.ì lù! Ðo ¡¡d ¡rl ot ü,. d¡âtF¡'rri tr+ùithg rE&ûrt d.a@l, tu{.ttrúy âN [e'fÞalqt Ol Nto¡úl{lf .nd t,¡,Mtt!, tr 6cl lotth ln (r, tnd lö,, aôovs¡ rà¡,¡ ià spæillc¿tly Dpp$ot'

t1,12Cút1a@iál D€it gÉr gr4lrúl?oüdrl{üdlen cli¡gthrrúvtlroí5 o¡îfle,nû*irtgarylhó rã( ol te, f,ãe e'd lndtft,//49'lgrrtr &rdoòûü|goôr lrlÍtr¡rL{, s.rrprí)'sâri r, ¡r ôln.6 ò. ßpù¡ólr þr r¡td hold htlî18 úd ùrdrûn//fÛæ Otü pztl løørd t&tst l* w ageßi. ftdrsct or @r.qrrürdt, drßllr. ùd ôt ,üdas ô9ü lü rpaoþ4 hdnc{ ø cfltlqFdal dmrçr sôdl âc obr*(l lo lhcrt dt' rilâo.t l¡nwot\ thclc'tþvríDt lgs ol Ptoît q Nüûì côr.l ¡ñd lxpolw Ëúit g lr9ñ U!åte, lol¡il{,llús; læ ol I d&v h Prcú'cdôri læa û rgntga b lte 'I igiráor4 ,Gþ oltrd.trt ,¡ ¡fùSt.q( ol w t8. oI Bs afp¡apf0,. tql¡4Êætt ,nd..t {t ¡rld 5svt66, ¡&Úrütg ryùþd ,'dúdø ôôte ãglldrdò/ dtffirrg q dpc¡¿dig

cù¡ræaoF rq¡s@'lir¡ ffi ot Mry dq x W l'trú¡Úüo Opaw s}{,ttrf úæ ¡éæpõ¡ålglrùrdrrordlffil¡s trdlldsntly cd,fðdor mdAb sf¡lha¡, coróîcloÉ àrdìr¡ôfrîÞC oE ot Myús lnn ûrt ctá!îtq.tqnüxû úü qw d úiØ ol wy rù14 end cl$Ñ h comæfÍot dú r¡¡dr3!.rår' ttdÑcl 'g¡irÉ,,.# ø corr6g@d.¡ dr¡ft!ß srlþrrdôy Op..¡tof'6 @üp¡, Þw*l¡ll elú4¡oar ftøq¡, tlrrc, ptt m qítffioæ, 1a,13 tnd.ñntty Obilgtllóû: E côÞt àa olhrr*ltc uþnstly rrnhad tn ¡htÉ Codrð.( ,f ,5 1ñe ,¡lÊ¡, 9¡ Pt¡llú ltcûao ahsl tll ñrÉ¡lq ttdffirry oùlr0l¡lonr

andtor ltahltftlM essüned òy 6rcòprtí6 !¿& t lans ol lttts Co¡ñ.t, thtudlny, víhoul tlñtlàtiû, ScbpantßPhs 1,9 and 6,3(a), Pâãgnptu l0 nd l7' otd Suôp¡dgãp¡9 11.1 làþugh 14.12 hêñí ba ttthosl ,lf,¡t and wtlioú ngtr.t to tht crr. o¡ .tßß ah(el, loclud¡ng, bul ûol llmftad ao' NHxl.a,¡.g Gondtatons, d.L.l ot ruta ol F¡çfrls$ ü .qo¡pffi¿ te,cl ,&,iüfy, lrll/tk¡tsry or.ttlg/,êrl lhhlry. qñdtcß ll¡bill¡í, ùN.h oî repnsúlM I Ã@ly

(exlry ot lñpl¡aóì, þNch d ú¡ny Wüfr àtufotl,curú.ÊüI g olffi{) r¡y tttryglfarl ù.urt ùl6affil,'r,olalhertdlgr@ol.ttr úggBvêrtßçl, lm.d'\aK o, *túlñù! och nl{,,,gaèè b æfa, Johí d ggfrd4 raüô, pr€srE 9t 9ñl d ú, mrff q FatlÐ, k,ctAngfÉ þúty r..lúlg lta öa,td¡lÓlôlt rl¡all'

,frkro¡r o{ sûòprag¡lp h6 a,o 10, 12 8d 14 tlâU he lO dF ôflalË ôl t¡t , È rt!ú, lh.,Jt cçra!tußH, çç18s..\ )Ôlñl oÑø, lhol ûd At a¿ Pn$l',b, poMt ltoldlag .td h. oâlca¡¡, d/hsotoË, tfætlrôdar* pt tfr¡s, ørmgß, æpßJm(tttuôs. ffiPIoIw' eoÐvll,nþ' ,!61t, sûd ¿ítlttad wp¿ol6 sMial .¡d /ñsaa., ot æctr, Eñcpl a¡ oÞRl3 . pþvltgd h$atn, ,æ1, l^llmrltcrllon ând asrffi,l,ús oI l|,bltlq $ùaI îol h. de@od ti ctah atty t gltl'

o, hdfrf,ily Ùtlßq aa tnímnlûcrfan tn any peßo¡ or ttftay nøl t qar1], lô íÌ. caùlñc| ønhq I . lhtrd Ptrty b$ilclary ar iy .Âtøi al.ny agre@ñl

on. ol lhô p..l!.t hrnlo .nú .ñth.r pam@ o( 4W aat t Pttt! lo thlt C@ln6ú 15. AUDIÍ I ã¡y psymml põvidÉd lor hçrænd6 l¡ mda m llrc bqi¡ ql Ciltr4dof3 6ls, Opê€tg 6h€tl hdvt th¡ righl lô auðlt ConlÉclol'r bd¡$ 3nd Hdd! rol€lin!

(o 0K¡ 61.. Co¡Fãctd .græ! (o üi¡la¡n !!û ùækt ârld ffide fo. r Dùtod ot te (2) 1316 fm tË d.b ludl 6i! we lffißEd rnd to D.tÊ ôGh bod¡ ¡rd ærds raådift rv¡tÉbl€ t Opstâtor ôt âny r6¿MåÞþ {m d l¡me wilùln lhö pcdod. tS. HOWAIVER EXCEPTI¡IWRITINE ü t! futV uôtódtoad Þil ,gßed ùat ñonè ol lhå æq\iromb ol th¡! CøH âhüf br dt¡dild æ wryed bry.ilhs p¡rÍv unþ¡! lh. r¡m l! don. ir

trit¡0. ¡ûd hrn mly by tlìÐ pereN ax@äB th¡¡ Cq¡tråd, d olh€r duly authd¡¿ed 4onl ü ðÞß!e¡bü6 ol tht pt¡ty. I7. FORCÊMAJEURE E æpl rs povided in thlr Ps6gÉph I 7 lnd qíthoul pré)r¡diÉ to tha ùrh of lø¡, ol€æ lr¡d ¡iltoúnlty obfg¡üo¡s qlds lhls Conlñd, êã{rr p{rly & lt.¡t Ca¡lr¿d ihð0 bo excurtd cmplyi¡¡ wilh tha bm! ot frÈ Cont@! ù4pt fo. $o plymnl ol mni8 ùltc¡ du.. ¡f ond t{ s þ¡O a! wå ænPl¡ôn@ í! hlndeôd Û tM pr€yônl€d ùy à tom trlajðlra Éyonl. Ar usód in lhis Cónlñd, "Fæ Mslilr. Ev30f hcllder lqB ol God. etjm !l the el€æri{!, 6.¡ (ded.red t uldedâlêd)'

lâd€hl d lnlufieci¡gn, rôvolutifi. råb6Í¡ônr or clvll sftilô, Érgsy. dvtl w¡r d ho¡liló ¡Clø, lsEisl ad6, rtol¡, 8bftet, litgßÞs wô wkß. ecÙ oÌ !ubl¡. !ôqlt$.

grtup, qoônlt¡lþn s ¡nføml $trt6 tM, .da!, r.Cutqli6. úl¡posilh¡! or ødd¡ ol any gowr¡menùåì authort$€¡ hsvl¡g lùñqt€lion h the p'rúis* il ol lny oÙs 6!!æ¡åtifi (Wheth$ q no{ trru[y r9@gnlzrd s o Qoyommîl]. lFhlfty to p@r. @tdt¡|, .qu¡pmñl lßt of n$.sry l¡bq ln th6 opÐ @Åd, .culo ónd u4wu¡l tabôr ø rutedât, êquipmenl þr le€t ¡ho.trûÊt, q my oüÉr øus (g)opt fÈmid) kyûrd üro ø¡t ol ot è¡lhet pärty, NeitH Op€ntd û Cql.ádq be æqute¿ "ltalt âeäìnlt ite tiil to ¡djust srv taÞor ø simlL. disputes erupì iû rødsnæ rilh 0pÞlkåbla lfl. ln the eYenl üEt e¡lhd pârt hsßlo it ,.nd","d uaH", lly d h Þ¡Í' by ",t rny ol LB* 6uss lo €ny oul its obt¡g6ùo und6r {hlÉ ChL.rl, it k ¡grsd ft¡r.d Þå.{y !lÉ11 ghæ æll€ ¡tú d€blla of Fo@ M¡þure ln triütlo lO thr glhd psrty !s

øwpÍy ¡s p65iuô ânÊr ìb sçûtotø kr su.r! øs, lhr obliFlbN ot lho p¡rq Oiri¡C lhe ællF rha¡ þc sqp.ndcd dun'q the wlinlgrc of my ínÉUl¡ty !o susad

ox€pt lñet Oprrgtqr shall bo Þbllottðd þ Þsy ID Q6tqcto{ ttÞ Fq€ iþleur€ Rots Þrrylded lor l SubprsErtth '(.8 !b4 ,ll. cÖvER¡llNG L^Wi fhb Cdrtr.çt ¡h¡l b¡ cffitlnd, loffitd, lnf¡{prùd, 6lôrÉaa rd li¡grtad, Hd ü¡. ñldoË tütЀn ${ Fdk¡ d¡bmlnod In s$tdilqo !¡äl lñe

lU S et@¡ cottu. åt¡ õ, Fom provid€d by Fqft On{'Olsk CoÞyrtght€ 200: rntoßitma¡¡sspdeton ø órill¡n9 cmtrækys (214) 340'g¡129' FtrßOnADkk.m o o 19. lt{loiHÄl¡OtlcoNFloEllllÂlr Upon rrldôn æquær ry opcr.lq, i[lomrlon ôbhl¡åd bt Coiletø h ùr ffidrc{ ol dr¡lliô! opcBllmg q lhÈ wll ¡Mqdhg. bûi nol llmiled lo, dep$,

famrlþ¡! p.ßt€tpd, lhô HUn¡ ol 6nôç, lsl¡.|g üd wrÏirE, sh¡ll be ü¡ldtrÊd mñdenl¡rl rnd rh6ll not be dhrul06d ry Conltelot d il¡ mproyeo¡, tô ¡ny p€fen. ñro, d ærÞô.tllon olhtf thrn opdltoi¡ dell!tu|Ëd faç(ü€nàlib. 20. SUSCONÍRACISI Elttro¡ pa'g firy cmpldy õüìd dtreCfi b Ëíoh 8ny of lhê op€raüffi ff *dleô o be goqdod or petturñd Ð lt åæodlnt to Er¡Ul "A".

¡.r. ÂÎToÞ¡rÊrs FEÈ,S

ll lhl3 CdlÞct ls plå€d h lig hand¡ ol 6n ,ttotrry lor coll€dlm of ¿¡l suß dffi hqolodH, q gull I! brollht on ere, ü em dæ hetdndd æ cdM€d though b9l¡ruplcy q árbitôUs p.wsdhq!,lh€n tha prevdlilg err{y Eh3ti bê áttlgd lo €cil6 ¡68.onÉUé stb.æys i6 ¡nd stl 22. CLAII.ì9Al'úOLlEllSt Conhacw r0r* lo p¡y âll q¡d da¡ru tq lsbor, ruþr¡91, ¡ñirs. rrd ô!pdþ8 10 bê fumi6¡ad by Conúæloi hæundsr, 8nd lgEs {o llftv n0 ll€f, bt rsdl thlrd prfias !3 bG ñ¡èd lpoî h! l&. ûþ rell, d otÈr prÞpiny olfis opefilF r thâ lâîó upør rlrþn saú KI ls locrled ¡3. AÉstsNftiE'tf:

Ne¡thet Þâly m8y â3rg¡ thls Oonf6cl with0ut hê prlor wi[s æo!ônl ol lhe oúu, ãrìd pronpt Hlhæ ol er* ruch lnlrnl lo ss0, 3hsll be gl€n to lh?

othsr p9r1y. ln lhs *eDt ol s¡á Nsignñanl. llE gsìg¡irg p¡rty shall cma ¡lsbls lo 0F olhe. p¡rt â! s g6únlo{ 9f lhr palqmã@ bt he ssigÈr ol tþ 10tfr. ol hlã Cðlõct. ll àny ðsignm€ril lÊ úad! lh¡t natdj¡lly ell@ Contåclo/s ln¡Ml bhr€[. Cøb3do/r þmpaslirn $.ll be ådjGlsd l0 llvÊ âñtc¡ lo tûy¡nqe8F ôr dH€a¡ú hcqntÉclo/s opcfâlino æ{r, 24. l{OnCE3Á]róPLACEOFFÂYhlEillr Notlr¡, ßpfits. ¡nd ollìlr ðnmunlc¡rions r€qulred tr p.ml(ed þt lhh Cortt€cl 10 Þë givfl d st by sê p¿dï 1o ûÞ ol,rô. 5à8¡l ba dôliwrd b, ht¡d, @i¡.d, dlgilalt klr¡mltted or lelr#Flêd to ths åddñ h€rêh¡bovâ thffi. All rlmr poyabls harevnd€r þ CónlÉdor 0¡!l¡ te påy¡bþ .l lb rddH h€ml¡¡iovo 0lw lnlèñ cüEñl{ rprc¡lild h@lc 2¡. COffT¡NUrÙßOSU6¡ONS:

Notsihd¡¡dlm lrE bmirutþr ot thls CnlÕct ûo Þartiö! åb¡ll fftrnua tÒ b¿ bs¡d ty lhe Fovirhô¡ ol {i¡3 CorlÉ.t üul .çámbty Ég¡dro ffi€ sion q lorù4ãrlfm åtlôr ¡udt lûrlrìdin. ¿', EM¡REAOREEilÊT¡T;

fhì8 Cüllact ønrl[lü6 lhe tul cnddtâ¡dlng ot lrÞ pa.tú, ¡nd a Mptcte EDd erdurr¡w Stdomt of lhê t¿m ol lhdr a!@trKrt ¡nd $âí e¡clurlvcly mlrol snd gffin rìl rcd pdlomct hùendd- Al Ep,€$ñl¡tbn!, of€r!, ¡Ìrd undeirli,ros sf lhc prili! madn ilor¡ ltE slhçlw úst¿ h€üt, wtÊttv onl gr iô witing, trc ñAel hpGlr, lnd m ottær çqlrætE, ¡qf6rent6 d wt oldæ, ereqlr( pr¡or þ ho sxq¡i6 ol th¡! Ca0tÉd, ôhall l¡ åny Hy madlt, añond, ãllof0rölungs any ol lhs iôrß q €nd¡üûm rêl od br.ein- 27. sPECfÀLPRoVtSlOt{Br

11 .r ENblt"Ô"-ggûl¡âñllEjlntghleE{Elq!! l¡ rthhod h.nto.nft rudo. p¡¡t¡ôef. 17.¿ t¡ th€ dedt ot tny dlrNto rrtl|m wt ot ù nhlar, to thlr Contãc¿ tlta *llr mðc thrt lorl¡dlcllan wlll Ù| arclu.lv.ly wlth alr rFto úd bdrðl qourll lo Ho6lon, RrÍli Courly, ÎâxË; Op.rtor.offi ¡nú cmlant¡ lö llsìul.Clcúifr gllh¡ ¡t b ¡nd t dnl sdl¡ ln Hôu¡ton, H¡ry{r Cqnty, f!nt, .nd mþár any obþctlotr lh¡t.úch coual¡ aõ .r lirpropar d lrffiv$lml vahw orfoeñ lor ¡uch dl¡pul¡t.

27,J Fot Érrldô ot ¡t l¡y durlî! rl! mov6, cåuæd by clßun.brcð þaydrd cqttrld't conùol, lmludlng, ù!t not llmh.d to, lrcl.ñmt wsrlhlt, lNl of rv¡lhtúllty ol Dad¡; læ.tloñ, lnr¡p.ñrlon.qulpn6nt or Þ.m¡¡E, Opêñtor rhrll ply Co¡lr..l¡r a dol¡y r¡to ol 119,000 Þef d¡y, .'.4 Ep6h Wlll 99Mc!¡, lnç. ('Êpoch'l¡ ¡n rffllhlo !f Corlôctor, óháll lo!ôl& OplÊtor, lnd Opor¡tôr rh¡ll p.y Epæb t?00 p.. d.f lapud 10 Élçasl lot snlslof tho Epæñ Rlg Wrtch ¡ylbn, ThO EmGh Rlr Wltoh EFtm gûlltn¡nl lnclsfi¡ tho io¡lowlnot ÐdllolJt Èrl.l¡tþ{. Com!.nyñrn aoñF{Lr w.lrÙUoñ, f@lpqhft øhpotar múalll,oñ. {rilh/ùll lnc¡ln¡ rr¡þñ, hoot hrd,ùlt wdclt roüd 10ru, rol¡ry RpLl t6Iì DÌ{run tunÞ ltþlr cs¡lrlm (2 prnlp. lnc{udodl. plt volumr pÞbq¡ (a pmbu ltrcludll wllh oill.n toi 6 ¡ddl6r¡l ÞabìG), tilp tqrk vôlrñô pnb!. {l nmù¡ lñc¡udrd wlh opllfl lot I .ddlüo¡rl p.oöcl, and Ftm nw prdúlr.

r!, AccEpü,¡¡6EoFcoNlRACÌ Tha lotÒgg¡ng Coîaø.4 laatqúag lho ptov¡r,lo^s rCtllng b løúmiily, t61ø.. ot ll.bilry trt tlloc.liþn ol rlst ol Sobp.ãgûphs 19 .id 8't(êì.

P.ñgnpht l0 rad'tz, tîúsubptrtgdph. t1,'llhñuPh r4.l2,ls rc*nØt.óg.d,tgntd tô tnó.ôdqpl.dåy Opdotúrt I 3 a"y ð' SgP .Z'JS

OPERÀÎOR: \ BÍi llüâ:

th. loßgotog Co¡mc¡, iñludlîg ah. pfrelsløha ñlt{n, to ,ñ.mr¡ry, rc/Ëat' ôl ilaßillty .!t t .¡¡octlor ol rlal st Ssùp&-¿ldrrrt a,9, 6.3lÊl' Pøtnpnt t0 and rl tndgubp¿ñg@Fh. t1.1thþpgtt 1a,'t2,lê ec*ûov,çdgad, ogr6d la tnd o.c.pttd by ÇNhac'lqlhlt ol S9plØbû ' 2i:&-

-&-day *lttch la lho eí.ctÞo d€Ír o/tlrb CmlÊct, rrölr.l lo tlg ¿wlt.tw tdttttrblt aao tll ot,lt tm rndrrov¡Érú!, *ttt íra ude6lrnúlôrlltl llvltl Níia blñdl¡g upon OF.ûtú uiill Oparâtü htt ûo¡rd Lt rcc.pttnc., tnd úah aha luãhtr andstl¿tdlñt lhta wlcrr stld Cø@.1 ,s aâc ùecû.Ú bf Orffir w,fhln ¿þ_âLIIL dryt a, lha .Dovc .ldø Coa|.caof ,h.ll b. lñ ûo ¡Mnù b9uîd bl ilt tlgãâtufr {t r{l.0,

CONTNACIOR:

llücl

lú.8, o.wä Cøkar¡ - Pry 6) Fm p@it6d by Foms On,Â.0lsk CopyrlOht O 2Q03 l¡tÞtrEtionrl À$odsllm ol ÞrlilflQ Cøhdh {21 {) 3,40.91æ. FomOrAOirk.Bm

a o 8fil8t4ptt,?ûi

EXH]BIT "A"

fo üayrcrtr Contrsct dalêd ----3!d¡[¡!f3!- 20 --01-

Oporald t.ñr Ul*l¿ló âll I êr¡ IÞ Cs1.¡dq f\¡eòoß llgô tÞ

WÉll l{ñd rrid l¡unbtr TÁ

spEcrFrcalro¡r8 aNo SPEcr^L PROV|glOlts

l, çasll{G PRoGRÀ*l lS.cPrr.gñsh 7t

llolt C.¡lng W.hh( 6ñd. Arprollm¡l¡ ¡rydt orCeml S¡to sl¡e SlruD.dh 1o¡ Cond!clor ¡¡. in tb9ß It hE

SuLca ¡n. lñ. lbôtì ß hr¡

Protdtlon rl'1. io. lb.¿t{- ft, lrE

¡o. lr, lbq/& f1. hB

Produ¿tlq ln, ln. lb{rlt Ir tB Lln¡t _ ln. ¡¡, b6rn" fi. Ìn ln. ln, lbdn tt h6

2, MUD cO¡ftROLPRÒORAltllgæ 6ubPrdgnph ¡.2)

tupli |rt.d.l 6)

lv¡lght \rhaorltt W!t( L6r (lbùrgrll (sÉl (æl Frm 1o lyp! ü!d

Olhér nìdd rp@i6lìw;

3. TNSURÂî{CE l9.r P¡rrlnÞi l¡} f .1 Adéquate Wskêr6'CffiÊêñstlo¡ Inôw¡ne ffiprtlñg uifì Sbt tM 6pplløbh d Enploy6ß' LlEt¡tty lMur¡^Ð wiût lìdlb of t---entl1l"4t!!!9L--_ |

üÌfing 90der lhlr Cfflr¿ct.

Ðv€l¡¡g ¡llôf contragto/a mployrc!

!,2 Cmffirctd (or Cmpch6Ntw) co¡sEl L¡lbility l6u€ncq indlding qt&clul çUlgr{¡oN â6 6ped! lbli Cületl rñd p&psr øÐ$ lol sll othd obtigEúms û.smcd ín hb Cqùac1. Iho t¡n*l ltuu ùo $----0!þjllt!0lllþE-- èrÈkþd lng¡€ llnll pq ffi ld Bod¡V Iniorv8ñd I

Propérly Ð!mqe.

3.1 AvlotrûtÍþPub{lou!ülwl6rmÉwiürüñi8ol¡-lutJll^0¡¡l!þ&--hrth¡d€llhorhluryolêgcipsrw!rÉt æl1lÛillloñ JoræqÞ

æijdt; 0nd Aulo@t¡l€ Publ¡c Ll¡b¡låy pþporty D.mCr hMá¡ð lil¡ ¡ml'ú ol t------9û!,¡1l4!l!þt- ltr aæh åËjdmr 1.4 le-{he-.€6l{p{äfia¡rË-s.-trår'satari Êmlrtqlâr öl'8{ ðry ¡n {d(i$ø b üÉ tþU¡¡ysstq.ùÞf6g.l$ümCc+l|slr+lstr.ÊCdtr.Ð.tþi¡Ét¡i¿lrrd{ta{h&aA¡trt(t¡a4¡ûffktLdms4m{dh¡r$}¡a*3*,..# þ+.r.à-dslâq lrú4}. þ.Ð*ag{9d tL# 3.6 Oüerl¡¡u€nç!: G:¡cú¡ tt¡hltllvlñtudn$Inlhr ¡mwnlot ll hlllla dotrû ßô.llÐJlottr.l, ¡,tril l.$

4. eOUlPnENl¡ t ATERIALS ANo sEßVtcEs rO BÊ Ft RllllHEO lY CONIRTÀe'IOR!

The reÀiNry, equìDmanl tôOti, MlÉråls, lupplie!, lrutrumnb, lwlcÊr a[d l¡bor hñlMltlr li3t€d, ¡ndudi¡C ¡tW lrtsporlillm,ðquißd f6 ¡qdl lÌËm¡, sh3ll !€ prw¡d.d sl tha þn l@gø ¡t thc ap.ße of Co¡letd unþ!Ë oìheftle ro{¡dby hb Cdlttoct 4,t Þñlllng Rlg'Suùl.cttorfllllblllty Complèlô úÌlllo0 ri{¡. d¡.lqn¡bd bt Cqlradd e r its Rb }io. x¿i- - ltìa nafx [eG ôl.qüiFenl b€¡nql DMks: M?k€ a¡d t'þdql Pêr tlo ldw¡lory âMchåd lmlo ¡nd 6¡da ¡ d'l blttoL . .

Êng,ffii M¡tê,li,lodêI, ónd H,P No ô¡ Rì0 -

-

PunF; flo, I Mako. Sl¿o. ¿nd Porcl No.2 Make. SLt, rrd Pæ.

Mûd Mrlro Füñt: l¡rks. tl¿.. tnd Pffi #

ooihn: N!trÈ{., ltðka, H.F. lnd W P D€rlckor M6ì; Mske,s¡¡e, ¡ôd Crpæily - - sub6truçlurê: S¡e rnd cåprdv_ -

Robry Orivg: TÞa Þr{l Prpei Slzo ln elqht ¡nil or¡dú .8 mcq¡td lo lt-Elnûln lq0,9o0 lbo oveûoll fì I Sìzs: in i --1ln:-- qr dRlnart.lI.

Dril, Col¡¿6: NuilÞr rr¡d 6h¡ ttI

- -

tU hWú Wd Co9yrieàt O 2Co1 lñtãnrtlNl g - A'. P.F l)

E\hü Asloddio¡ ol Dl¡l¡.Ìg Coñlêctorl Fm rrcvided by Fûro on'^'Disf (214) 3ao.t4?É' Fom¡OúD¡tl,Coft @

I o 8lo$uÌ PÞw¡le¡e:

. Sl!9 Seiler or rdt Ft. Ir!¡k¡ I llodrl l,¡umbs

g.O.P. Clos¡ng Utrit1 I O.P, A@m!lâ(or

4,2 oôtricklimbêF. 4.3 Nmâl .l¡1^gÊ of ddl plpô 9nd ddlf coll¿ñ ¡0dñêd €b@. t,4 Conv6lÞôâl drií ind¡calgr. ¡.5 Clcul6tjn0 mud pfg 4,8 Næsrráry !,pô rô*3 âõd riglln! up ñÊldíal- 4,7 l¡ffiulô{cß9o¡0.{þd¡oéc}þn¡€{¡å 4.6 shale Shak¿r, 1,9 4.'t0 a:tt a.l? 4,1t 4,14 ¿.tõ 4.t6 4,1?

5. €qUIPiIEN', MAfERIÂL$ ÀND gÊRVICES IO 8E FURNIS¡IED OPERAIOTI 'Y rãnspôùtlón D{uiÉd lor !ud1 ¡bril¡, $ltll l¡ê macìhery, ogü¡pmeot l$k, ffitêdât9. 3uppliæ, lßûùms!, àediffi and labd hefeìnaner lislsd, ¡n Ilding any bs

pp,iJBd rt ttre wll lo61'þn et th¡ arçgffi ol Opd6br unlos olhe rÈ{s mled by hte Cont ct

5,1 Fu{nirhrMroinhi[a&qu¡t€@dway.ndtqanBìtotøtir,rigtlt{f"my,i*l!dìn!d0hl6{l-myloriælandMtÈliM.riwrsorslngs,h¡ghl9?y cmsg.Rg, grles ¿ßd dìÙegusrda.

f,2 Stake lGtun. cjo€a snl OÉdc l@lÍon. snl ptovidé lumeM, ¡ncluding 9od6dn0 #*n n@sery t.9 Tsgt bnk. wir.h plpô âôd [tün99, Si Mud loõ0e l¿nlc! wtlr plpo rnd fltho.. 6,5 Sepårãtorwith plprând lîí¡ngs. 5.6 [ob.r å.d frletilslo @n¡ed ¡tìddi¡&nreèthuC t¡nl. legt t¡nk. ànddd0ât æÞ¡.¿t r' 6.7 L¡bor lo dircono.cland clê¡n þ¡tlÊntr rnd rud oes æparlq. 5.a olilling mud. c¡emiøl¡, lortcjrwlilbn matdlrl. gnd oÙìêråddill@. 5,0 Pipé ånd qnecUon! îx oll cie¡â{ng llN. 6.t0 Labor h lsy. bürÌ 9nd lwdoilËÌrcllalino lìrp3 6,11 DrilliñO b¡ls, r€¿ñdt. eñrrdtteE, lhbii¿.ñ €rd ipaqrl ttls 5.1? Cmtnd nsôÌnt tæl Hlc.3.nd loolÉmal 5.13 WÞ línô cde þll! d h€rdr, côß Þ¡ral8 and wiE lim arà gldto6 It r€quircd.

5.14 Convoñtroqãlcore b¡l$, wo ølÉh3rs and de b€reI¡, 6.16 oiãmnd@ß Mrnl*llh hôsd. 5.16 Carcnl.nd cimntlngsenitcr, 6.1? EleghËl wlrslinê loogh8 wk3¡, ¡.1! OiGdì6s1. eliper, or olhq specl¡l affi 6,19 Guñ oajel pêrjora(rlg *ûÈe! 5,¿0 Erplsive! rnd shool¡1gdovl@r. 5.21 Fmslim t6lrlg, l¡'dravlic tråc,turlnq, scidÞin0 snd o{fEr rol¡tad æNlæ! 5.22 €qulpænt ld drill tem i€ting. 6.2¡ t {d lffilng r€NiEg 5,24 S¡rftâll d¡no ôêNþ. t.iõ Wpìd¡^E ætie tor rclding botlon lÖ¡n[ ol ËÊìn9. guds 6¡*, îoqt rhor. losl Þlhr ¡¡d In æ0K1im wilh ìnsbllitg ot Ef he& equiÞúent ll feqeled. 3.16 Caring. luÞiB. lì¡s. $regn, llæl æ¿hß, gulde á^d floÊt iho* and arw¡¡tod oqulpfidL ó.2t Csrng *fslcho.r and æ¡bôli¡ñ. !.20 Weilhlâdø¡èclonsardallequpdnllob€lnslâl¡eclinot*welloronlhsFêmg€8tsùseineúñsclioûwilhlêttin9.aú¡þlìonsfdoperslilnolw!ìl Ë19 Sp€cÌðl or 3ddèd ltoÍsCe lor mud and chêñÞ13. 5.50 CðrinQh€sd, API ñe.ie3, Ìo øform þ thal Étú*n lû the blñd p6!il1éG sâsil¿d in Subgãñ9Éph 4 1 abovo.

5,31 Blwoul pfèr€¡td l4tin0 9âckdf rnd tellinq 4iliæs ¡.12 Replâcofrntal sOF rubhß, ¿HHu and æ01ô,Ir€quhed. attsr inilbltesì 9.33 Casin9'fhød Pro{eclo߀nd C$lng LublløñB ô.14 HrS lJ6in¡o0 érd .quiÉffil ât lEety 9r ¿r equred by þw. 5,35 Sf6 s!ptrc ¡yi{rmt, 5.16 ñlhh,^^ rrrÃi dñ.¡i 5.t7 ûlrd dd nô9 hd¡nd rF¡c¡ t,¡0 5.t9 6.40 5.4{ 6,42 5,a3 É,14 6.4G 6-46 5.ó7 5.¡8 5.a0 6_50

(U S. wN\ coùst - 'E 6u A'- P4. 4 Fdû Þrry¡¡Jed by Foms On.A.Olsk CwfiohlO200! lntmâlionðlArqirtiond D¡ill¡.Ê C6rdd¡ (2r41 3a0,t4æ . Fomoñ^Oitk Fn o o ô. EO'UlPltEtü. láArERnLê Átlo sERvlcEs ToÐÉ FunllsHEo ðY DÉ$oìraTEo P¡'ñ1Y;

Th. mach¡nory, €qû¡ptrnt. toolg. NtcdRls,3uptties, lnrh!renl!. srylctr. 9M latry lilled qÊ $. lotlow¡ng ruñòer€tl ilenÉ, ìrcludi¡g åny banrpoft¿don

Nll loølhl anó ¿( t}E !xpe0* of lha pdrty hæ(o qs dBitnsred by ån x mû in tho requk{d lú Ewh lem¡ u¡¡â¡ ollF.*138 lpÊdiÊd, $ìell b¿ pmvidod ål ths

ðPFoPñgl€ @lùm -to g. Ptovldod gY end N Ttto ErPómo Ol lom Oporfor Conl'elor 6.1 Collåf a,ìd BUMYÉ...... X 6,2 0itÉhei ånd s!üt3....-.. -..., ..... ,... 6.1 Fuel (lffited x

x

6.{ Fuel Liñp6 (lonsih ----¡L(q3!.[t---J 6.5 Wale¡ rl @r@, lnciwing teqdrud Påmilð . . .. 6,6 Wãl€rwll. i^ciud¡Á! FquìÊd pemlls 6.t Wfle, lite6, ¡ndrdl¡g l9qùèd Pm¡L 6.ð W.1er sìor¿g€ tôoks--- €psc¡tv lËct.lg l¡wctó.yl " . . ... 6.S Pctr¡16{rþrrnú bôtllrdwder.---..--.....,..'..,...... x qltl.

Ëìl d {ålg cw . ,.. ,. ,.

""- ., 6.10 Lâbo¡ to rp€rgte raler pumP (Rlg ..

'

6.11 MaintsËnG of wêÎer w!¡. il requiñd.., x 6.12 Wålér ¡rúdp.,..,,-....,,..... x 6.J3 5,11 Fuelbrwbr pùmp,...,. Mûtstorè¡ûines and üoil*¡ ot rFlors ¡nd ñrd pumpd... ..-.-. . , ..". x -,1L.-_ €,16 T6¡!ponston ol çgnlEclof! prcperlYl f\iove ìñ. ,... sr P¡nÊnph a.!

sB P¡mÞoh ¡1,2 N'A 6.16 ¡¡slériålrlqagrnt¡n"rlgsnddâtlck - .. 6.lt ølla6 $Ftcr{ ñdral ¡t¡klg¡ oli&ül plp€ ånd dtil¡ 86 lollMB:

x_ ^¡v 6.ti drìll p|po,.. ...-......-,.-..,.., G.1 3 D.ìll pip. proeídr lø Kdly þlrìt ild oôch lol¡t sldri,l plpô run¡¡ng ¡¡sldootS0rtaG C.¡io9 oi requkcd, tot u& wrh @mal ollmg¡ gl drill pipe... ,.,.,...,......

6,20 Drilt p,ps !rc141N9 far K€llyþlrteid drill dP€ tùn0lng lñideóf ptot€rli.tcríng,..,.,,..,-..,..,..",. .,-.. .,.,..

0.2t R¡le ol p9¡d6tþn reødi¡! devl6 {Époch .lxlront¿}. . ."'.',

x

G,22 Exfã l¿bor fd runni¡g and æMllnt 6¡[9 {Ca¡lng qfl¡}-,...--... ..-..'.. ... .,.

6.21 Ca¡ìrg tæìs..,".. .., ... ,... 6,21 Ptrr tr5lng lfiqi,., .. . . 6.16 LâydMsrldpickupmechìn€...., . ...,...... t_ 6.2S lubl¡g 6.21 8.28 ¡¿,4

6.29 Sqrc bûr!Ê.. tfÀ Ml f{rA 6.¡0 ð.3t g.¡1 kuk Hole ... ,.-...

Rôssflê Fils t_ t,31 6J1 Uppe. X¡lly Cæ|c........., x"_ 8.35 Lffir Kelly Valvq.-...,... 6.36 Drill Pipo Såf6tyV¿lve lasldo glowd Fr¿ventêt.. ..,.,. ,- ...,.. .. .... x 8,3? ,

6,Jr D¡i{líng hole tor ordlivi¡O lN conduddf p.Fe. ...... ,

0,39 cham6, æst ol boñd! lq publlc rosd!...,.. .,., ....,.,- ..,

õ,10 Porhblc Icilet-.. ñ.at Trosh Ræphle. ,.. , ..

ß,a2 f]â*t ôlþ+Shslê Shâkn (Pér lg l¡wntdyl . ..

x

8_{3 6.14 6.ai 8,¿6 De9ôd3r.,

x

6i7 Oe$ller,.. .,., ..,-.... ß.¡0 X

0,{Ê CenlrlLtq ,....,...- x 0.60 Roteùng l,ltad ô.51 Rotabñ0 Heäd RubbeE 3.S2 HydållióAdjusl¿br€ chokê., ,,..,,,, , , ...,..., 6.5: Pil Vaf úm lotall¡sr.. . . ß.6{ Conmhieûû,rypô@-.. 6.66 Forklñ. Ép¡cjt 6.õ8 CþG¡on Inhibit6 for frotÐtñg drillsltho- x 6.'' a.õ8 6.¡9 8.60

--

tu.S. g.frú CdM -'ÚtuÁ"ÆP 9l Form pôvidgd by Fom On'A-Oì8k CofDriirhr Ô 200¡ l¡tsrdlon.l As5oclali6 ol Ddliog cmÍ¡cloE (214) 1{0-929 . lom6onAÐìrk @ o o Rstñ Aþril, M3 7. oI¡lERPROVlSlOt'¡St

au s oANû Ôoñâd.'E'hM A'. àæ 4) Fm øovíded by Fm! On.A.Dlek Copyloht C 2003 lnt€mtbnrl A3mâlloñ of Ddlling Conlft¡oñ (211) 340-9423' FomroñADlsk.m o o ,ifi/,,dApñ,tna "ai ErfltBlT

{sèsùÞe$r.pñ 4.¡}

n" fol*f n9 a*r-, **, ÉqütÞd þy ¡try. m lospor¡led ln lh! Conüsåù, nlsr€na3ö B tulV rt out {rl n0 Eqúåt o¡porùnlty clrM púqlÞ.d l0 41 cf8lo-t.¡t, (2, na^ilmrlsAdþn Cl¡ur pËßtÞ.d h 4l OFR 0l¡4!0.¡a noâtdlno st.nñt ündvaürî. ol{tq Vblnrm m. (C¡ 'nÞAfiìîûúôAßton olN¡r tr hlndb€p¡dmd(rfr pfl¡c'lboC h at CtR ¡&741,4. lal 'nþ Ccrüûtatón ol Cánplh¡€ rþl Envlümnhl lffi Fil€acrl¡ed ln {0 CFß I ù¿0,

lu.a htruú ooürd.'€¡tô[ !". âø ,,, Fm ÊevlÒd bt Fm OnlFDlú Copyrlghto 2ü'3 lñbmãüo¡d A¡lodrtof, ol Bdlüng Co.rtfrþtr (,t¿l) 3a0.9l2e ' FomlonAlllt,m

a EXHIBIT'C:'

o

CONTRACTORE SPECIAL PROVISIONS

,t, Contråôtor 6hatl fumlsh iöitìal tested annulâr pßvorìlêr' elerrEnt. lf lh€ olement ls damsg€d dus to deslruct¡ve elomonts ìnlroducâd lô lh8 mud, gtrlpping, or excesslve lestlng, ths Opsrator agrees 10 fumith a new el6mênl.

2. Chsmìæl Addltives to the mud for prevenllng oxldation ol ths drlll slring and hydrogen sullids scávâíg¡ng chsmicålô lo troat the mud of drllllng luid as necessery tô remôvâ âll traôes ot H28 and to Çonl¡ol orygon @rfos¡on to b6 fumished by lhe Operâlor.

3. Opèråtor shall luftish all lâbor, 6qúipment ãnd malerials 10 c]een rlg ãier usê of oll bÈse mud and/or cômplsl¡on llu¡d.

4. Ê)dra eesl to dg up for drllling with oll base mud hclud¡ng, but not lim¡te{f to, lh6 cost of p¡t covorg, glsam clêaners, driÞ pans, mud vsc6 snd cleÊn¡ng mâtorials shall be at Operalode expensa.

5. ¡nft¡al Inspeclion of all Conlractôr's drill plpe, drill collaß, kelly, k€lly joìnts, valvos, ôubs and IIWDP ôhâll be al Contfsc,tofs êxp6nsè. All repairs, replacements and haulìng for rgpails will bs a1 Conlraclo/e 6xp€n6o. (Iï6 lnspârt¡on will bè to T.H. Hill, DS1, CÊlègory 3 or lts €quiv€lent.)

5. Subsequent inspecllono (lnclud¡ng the inspêcllon åt lh6 ond of the ¡ob) ol sll drill pipe, drlll collao, kélly, kelly Jôlnts, valvss, subs and l.lWOP shall be at th6 Operâtor's exp€nÊs. All repå¡rs, rsplac€ments and haullng for repain wlll be at öperelof s èxpense. (fhe inspeclion wlll bB to T,H. Hlll, DSl, Cálêgoty 3 or its equivâlenl.)

7. OpôrstôrEhall furnìsh all 6c(e€ns for shâ19 $hsfters.

8. opôrslör ohalf turnigh áll potab¡e wat€r lor Operalor snd Coolractor personn6l.

L Opôrctof, Ope¡alor'e reprcsentalives ånd Ope¡atois sub'conlraclors shall suppoil Contrector's Sâfóty Polides ând Procôdur€s In genoral ând ¡n particular, will comply wlth all ConlrâctoCs pgr$onal protective squlpmënt requhÊments,

10. Operslor will be r€sponôlblê for the provision Dnd maiúenance ol âoy sìt€ seplic systems.

¡ t. Contfåô.|ôr w¡ll prov¡de only on€ size ol mud pump l¡ners. Any eddlìional sizes required by Opôa€tor w¡l¡ be prov¡ded by Operatôrãt Operâtor's c!ôt.

12. All thlrd party equipmônl requìred 10 ¡lipple up/n¡pple down BOP equlpmè¡t will be plovided ând paid for by Opsrûtof,

19, Thå ratôs conlalnod in lhls Contracl âre b6sed on thB [¡g lnvenlory åtlached herelo. Any rnodifc6{on ot addltlofl lo the rig requested by OpeÉtor will be al Operalo/s exp€n8s.

14. Qpenlor shall tesl 8óP êquipmsnt al inlorvå¡s as sp€cilìod in fedsrâ|, stâts or locål rsgulâliôn3, API R€commÖndêd Prâc'tìc€ or every twenty-one (21) dâys whichever intorval ì3 rnore slríngsrit. All lgstlng wlll bê perlonned by ôn ¡nd€psndenl lest¡ng company prcvldêd and pald fót by Opêralor.

15. ln all cases whå¡e Conlraclof6 employeoÊ (includlng Contractor'â direct, borrowêd, 8pôc¡¡l or stâlutory employees) âr€ covêrcd by the Louisiana Worker's comp€nêdtion Ad, La. R, S. 23:1021 el ssq., OPerator and Coñtl?clor âgrèo that âll work ând op€¡ations perfoño€d by Contrédor and its employê€s purÉuanl lo (his agrêÊmênt are an inlegral pad of and srè €ssential to the âb¡l¡V of Operalor lo generale Operato/s goods, produols aod eervlcçe. Furlhemore, Operalor and Côntraclor ðg¡eè thât Oporator 16 å ststutory gmploy6r of Contraclor's employåes lor purpoÊes of Ls. R. S. 23:10ô1 (A) (3). Notw¡thstanding Opéralor's slalus a8 a stãtutory emplöye. or spèci6l employèr (ås delinod in La. R. S. 23:1031 (C)) of Canlrador's omployees, Conlråclor shall r€malh paimarlly rBspoñslble lo¡ the p8yment of Loulsiana Worker's Compensgtion bsoelìt6 lo ils eñployess, snd ôhall nol be ênìltlsd lo seek contribullon lof âny such paynrênlß fiôm Opsrator.

t6. Opêrâtor, lts parênt, sübsidiary and affilialed corporations, âs woll as the êmployass, olücârs and direclors of each (colleÊlivêly, "OpÉratoi) is cognlzånt oftl€ Nabors Dispote Rssolutlon Program and wl8heê tô tteÇom€ ãn El€cllng Entlty, as deflnod ln thât Prógram. Accordingly, Opsralor âdd Nabor6 lndustries, lnc. CNabors") hêrsby agrêo lhat Operator is sn Electing Enl¡ty as to all Dìspules between Operator and thå paesenl and former Employees aÀd Applicants of Nabors pursuant to th6 Nabors Dlspute Resolution Progråm ss it cunently elists and as may be amðfrdsd fom timÉ to timo. ln ths êvenl tho Prográñ i3 âmendad, Nabore agæeo to provide â copy oflhe amsndment(s) to Operalor, Opêrâtor ñay w¡lhdrâw lhis êlectlon to paflÌcìpate ¡n hs Program al any timê by giving noticé of such wilhd.awal to Nabors, suqh revocallon to be gtlsdivo wilh respðcl lô any daims not yet ínstllúed es of the dâlô of revocatión. Ope¡atol undêrstands that it 16 bound by the lsrm6 of lhe Progrâm with tespôôt tó åll Disprrtos w¡th Nabors emptoyeos, regardless ofwhothqr such Dlspule l6 lnltlåtod by the ômployèê or by Opêrâtor. Opeälôr end Naboß ãcknowlðdgé thåt the Program does not appty lo dispuleó between Opêrálor ând Nabors and that lhs Program doos not alter lhe têms ol âny ¡ndomôiftcat¡orl agrBem€nt bBtwêsn them.

17 ln the event Opsrâtor elêcts to drill s substitate well it shall bs Operatods öbligalion to Edvlse Contraötor ¡n writing of such changs. Noau/¡th8lênding Opêrator's tallure to nollfy Conuâclor of such cfisng€, lhe lerms ol ìhís côntracl 6hall apply lo €uch subslilule welt às if sudl subslilute wêll w€rê lhe well sp9ôtfied ln Pâragrâph I ol the Conkad,

nxhibít_C_o

I t NABORS DRTLLING USA, LP Rig l{o. 712 Dlsr€l Electrlc tand Rlg

DRAWWORIGT¡ Mld - Conünent u7l2 F , w¡tfi añ Input raung of 1,000 horsepower, Eaylor 6032 Dyîâmauc brake'

crown-omaüc and Foster catìeads. Dnrm ls lebus grooved for a 1 114" drillhg line.

PRIMARY POWÊR: Three Cåterplllar Þ399 engines rated at 1,215 horsepower ead1, drlving $ree KATO 1030 l(ì, generators wlth a RoÊs H¡ll SCR system,

MASTr Dreco 136' cântílever, 136'clear helght x 21'base at floor. API stôuc hmk loðd of 571,000 lbÊ. w/ 10 lines suung.

suaçTRucfrrRE: Dreco'Sllngshof', wlth a 22'floor helght and 18'clear helght under the rotary beams, g¡bstucture is deslgned for a 600,000 lbs. caslng load slmul'raneous with ð setbæ* load of 350,000 lbs.

MUÞ PUMPS: Two Gardner Denver Pz-10 tsiplex mud pumps rated at 1,300 horsepower eãch, drlven bV one 1000 horsepower GE 752 motors eådl.

MUDTAI{T(S: Two tank, 970 banel system wlth a 75 banel slugging compartment in the suct¡on tank' Mud sysæm is equipped wlth sdrring guns and cleðn out gates. Mud mlxlng ånd 10 HP mud âgltators'

SOLIDS COHTROI.: 12 cone desllter.

2 cone desander, Two linear motlon shale shakers.

WAIER SÍORAGE: One 500 bðrrel tank,

FUEL STORAGE: One 12,000 gallon bnk.

HOOK/BLOCK: Bl 5350 Hook and Natonal 545G Bloclç both rated at 350 tons.

SWIVEL: cE LB ¡100. 400 ton.

ROTARY: GD27 112".

ÀCCUÞ|Ul¡ïOR! Koomey, 180 gallon, eight stauon, wlth ¿n elecsic powered trlplex pump, two alr operated pumps, regulaüng valves and e¡ght stadon remote control.

BTOWOUT one 11'x 5,000 psl, Aflnular, H2S Trlm, PREVENTÉRS¡ One 11" x 5,000 pg, Slngle ram, H25 Trim.

one 11" x 5,000 psl, Double ram, H2S Trlm. One 3 1/8 x 5¿000 psi, cM(e mðnlfold, HzS Trlm,

DRILL PIPÊ! As per consact

DRILL OOLI¡RS! As per cofibact

M¡SC, EQUIPHENT: Automaüc drlller One air holst Wirellne unlt 0-7 deqree drllf lndlcator 4 Pen drlll¡rE recorder Lôwer Kelly valve Upper Kelly valve Inslde BOP Full opening sðfety valve 5 %" x 40' Hex Kelly Vapor prcof llghting system Kelly sp¡nner Splnnlng wrendr

a E¡XtBÍ rc"

o

GoNTRACTORS SPECTAL PROVTSIO{Ë

Contrâclôr Ehall fumlEh initlal lesled ennulãr pr€vènlar élêmnt. ¡f lh6 element 19 damaged duo to d€.struct¡vs slêm€nts introduc€d lo lh6 ñud, 3tdpp¡ng, or excessivs to61ing, l¡rg Operâtor agrBes to fumi6h ã nêw elèmênl.

2, Chemical Addilives lo the ¡nud for prevenüng oxidåtion of thå drill 6tdng ånd hydrogên sulfids åcåvenging chemlcâlô lo troil th6 mud of drllllng luld as necêssãry tó rBmov€ all bâôes of HzS and lo Çontrol oxygon conosion to bE fumished by lho Operålor.

3. Opèralor 6hÊll furnísh ell làbô¡, equipmenl and mslerials to cleãn rlg añer uss ol oll base mud and/oÌ coÍlplål¡on f,uid.

4, Exlra cost lo rig up for drilling with oll baso mud lncluding, but not lim¡ted to, lhê co$t of pit cov€rg, gteam clganers, dríÞ pans, mud vács and clêaning mâtêriåls shell bð åt Operator'â êxpeß6.

5. otsll Conlrâcto¡s dril¡ plpe, drill collars, kelly, kslly joints, valv€s, óubs Énd I-{WDP shâll b6 at lnlt¡sl lnspecl¡on Contradofs expense. All repairs, roplâÞemenls and hâuliôg lor repairs wlll Þe at çontEclois €xpon66. (Ih6 lôspôólíÒn will be ló T.H, Hilf , ÐS1, Cátégory 3 or lls êquivalenl,)

6. Subs€quBnl inspectlons (lncltding the lnspcellon åt lhô ônd ol the rob) ôf all drill pipê, dtilt collar5, kôlly, k€lly ,olnl6, valvðG, 6ubs and IIWOP shall be at lhB Operâto/s expenso. All repaks, replacements and haullng for repaín will be al oper¿lo/s oxponsã. [Iho ¡n6peclion will bâ to T.H, Hlll, ÞSl, Cat€Ðory 3 or ¡ts equìvaloñ|.]

7, Op€ralôr sháll frJrnlsh all 6clê€ns tol shâle sh6ksas.

8. Opôfâloa $hall lurn¡sh all potaÞle wat€f for Opsralor and Conlraclor personnel.

o Opgrator, Operelods repÊsentalives €nd Opêråtois sub-contrâclors shsll suppofl Contraclo/t Safôly Pol¡ôtes and Procedur8s ln general and ln particulâr, w'lll comply wlth all Conlrâctor'B pgr8onsl protecliv€ oqulpmenl reguhÊmÊnlÈ,

lo. Oporator will be rêspons¡blê for {he proviolon and mainlenance of any site sépl¡c systoms.

11, Conlrac{or w¡ll provide o¡ly ons s¡ze of rnud pump liners. Any Eddilional sizës required by Op€ráfor will bo providad by Operator at Operâto,'s cosl.

12. All thhd pâ.ty equipment réquirÊd to n¡Þple up/nlppte down 8OP equipment will b€ provldsd ând paid for by Opêrâtor,

13. Thè râl6e contalnod ln lhls Conlrect âre båsed ôn lhB rlg lnvðntôry åtlåchèd her€to. Any .rodil¡cation or addltiofl to tho r¡9 requesled by OperÊtof will bê åt Opsrâto/Ê expenss.

14. Operðtor shall test BOP equ¡pment åt inlôrvåls as speclfed ln fed6ral, stÊtô ôr locål tegulslions, API Recomm€nded Prsctice qr svery twgnty4ne (21) dây6 t{h¡chever intervâl ¡s mora stringênt. All loãtlng wlll bo pBrformed by ån ¡odepgndent t€silng company ptov¡déd and pald for by Operalor,

J5. ln all cases $rh6rè Contrador's employoes (hcludlng ConlractolÊ d¡rect, borrowed, sp€4iâl or slslulory employêes) ars covered by lhe Loulsiana Worke/s Comp€n€êlion Acl, La. R, S, 23:1021 €t ssq., Opêrslor ãnd Conl.aclor ågrêÊ lhåt åll work eíd oporûüonG perlorm€d by Contrsc{o. and its employoss putsuant to lhfg agr€rmênt arâ sn intogral part of ând ara o¡sential 10 lhè åb¡llty of Op€râlor to gsnsrale Operato/s goodg, prôduçls {nd serv¡cas. Furlhemorê, Operator and Contãctor €groe lhat Operalor i8 a stâlulÕry employar of Contradofs êmployaes for purposeô of Lo. R. S. 23:1061 (A) {3), Notw¡lhstanding Opsrotols stat$e as â ôtalulory omplóye. ôr spèciâl employer (âE dollnod ¡n Lâ. R. S. 23:1031 (C)) of Contrado/s employoes, Conùsclor shâll râmÊln pr¡marlly r6spôôslblg fof the paym€nt o{ LÞu¡siana Worke¡'6 Compensúlion bånêfilG to ils èmploy€es, ând shall nol be enlltlod lo saok co¡tributlon lor any such peymenls Éom Opôrálor.

.16. Opsrâtor, ìts parent, subsidlary ând sfillâtéd corporål¡ons, âs well as lhê êmplôyeg6. olfcee and dksc{ors of each (collectively, 'Opsr€toö is cognlzánl of thê Nobors Dispute Rosolullûî Progßm aod wishô6 lo bgÇomo an Elocíng Enlity, as defin6d ln thàt Program. Aæo/d¡n0ly, Opsrstorsnd NaboG lndusltiss, lnq. fNabots) herðby agrs€ that Operator ¡B ån Elscl¡ng Entlty €s tó àll D¡sputos bûlwgðn Ôpgrålor and tho preggnl ¡nd formol Employess and Apf¡licånlg of Naþors pur6uËnl to lhB Nebo¡s oícprrto Rrrsolullon Frogmm es ¡1 curlónlly gxlsl6 ând as may be amended from time to timo. lt th6 êvent tho Program b âmended, NaborÉ âgrees to provids a copy of the ãmêndmêna(6) lo Operåtor, Opôrator may w¡thdråw thiÊ êlecl¡on to psflìc¡pâle in the Plogrom ål any time by g¡vhg nótiôe of su€fi wlthdråwal lo Nabors,6uch rêvocstloll to bê slfscl¡vô wilh rc8pêc1 to sny clglms nol yet hslituléd as of lhe dâtê of revocåtion, Operstor undaßlênds lh¿t ll l€ bound by th{ l6mt of tho Pro0rem with iespoct to atl o¡sputeÉ wlh Nãbors omFlóysosl t?gârdles3 of wl¡€ther such Dispute i5 lrìlllated by lhe omployâo or þy oporatof, QpBratof aíd Nãbors ac*nowlsdgo lhül lhe progrãm doos not âpply lo dispulss betveen oportlor âod Nabors and that lhe Prpgram doos not alter lhe lems of âny ¡ndomn¡fc€tion agreement bôtwaên them.

17, ln lhe evenl Opsrâtô. elècto to drlll s eubstitüts $/ell ll shall bo Opåralods obligatlon to advlse Contraclor ln wrltlng ol such ôhange, Notwlthstandlng Oporalor'3 fâllure to nol¡ly Contrectôr of such drangè, lhe lerms ot lh¡s contrad Bhall âpply lo such subsütutê w€ll as il such sub$t¡ttnê wêll wers ttìe wêll 6peclfied ¡n Psragraph 1 ol lhe tonlrad,

-^ ¡

EXHIBIT IIITGII

i'IOTE: Thlr fqûr ¡¡¡ of ¡hs lom or ol ol ùts tglier ¡nd l¡w. Thß lrm u8ê ol t¡û fûrm ¡a{loß 0¡ Revlsed Aþtl, 2003 INTERNATIONAL ASSOCIATION OF DRILLING COI.¡TRÂCTORS DRILLING BID PROPOSAL AND DAYWORK DRILLING TONTRACT. U.S.

TOI

plêAse Submìt bid On th¡3 drll|lno ænt.Actfdn lor perfqming lhe wqk outìlned bolw, upo[ lhe lems aîd lor the snsidetallon sôt forlh, wllh lhð lnd€Etandl¡g lhat l¡ a@ptod by lf th€ bld {his ¡¡slturuñl will æ¡glllute a Conkâcl befwæo !9 Your bid should b€ mqiled or d€liverod ôot lalot than P.M on ,2O _ ,

--

THIS CONTRACT CONTAINS PROVISIONS REI-ATING TO INDËMN|rY, RELEASE OF LIABILITY, AND ALLOCATION OF RISK -

SEE PARAGR PHS 4.8, 6.3(cl' 10, 12' AND 14 Thh Contfæt¡s mâdo snd€nte€d lnto on the dete hereinafter æl lolh by and belween lh€ pãdles her€ln dÊsignsled as'Opar¿tol.snd'Contraolor'

OPERAÎOR: LLc Pernvlr¡¡¡lr llc ÊorlÛy, -

Addrô68; 110we!trt Sultrlooo -

f,{r. ôtl¡hôñr t¿tt¡ CONTRACTOR: NABORS DRITIIIO I.JSÁ. LP Addro$: Sllw.GH!ßqd,8últot000- _ J Hôúrtôñ T.r¡r ?7OO?

ll¡ CONSIOERATION ol lha nqluâl promlse6, @nd¡tions ênd agr*meñts hereln æntalnad å¡d th€ sp€cll¡crt¡o¡! and spælal provlslon3 set forth ln Ëshlbll "^' end Exhlbll 'B' åttâch€d horeto a¡d oeds å part heEol ({hô 'Conlr¿ct'), Operoto¡ en0¿ges Con(€ctor ¡s ¡n lndepgndent anlrælq lo drill lhe horslnsft€r deslgnôted woll o¡ rc¡15 in

ge€rçh oloìl orgs!on a Oslúork 8åt¡9.

Fq purp&s heræf, lh3 term'Dsywork'or'DêWork 8agls" msans ContÊctor shâll tumlsh equlpmanl, l9bor, and pêdom ôeMc€g 99h6ßh provldsd, lor slpecllled 8uñ Þðr day undor thå dlrection, EvpeNlslon ¡nd $ntrot gf Op€ratqr (inclus¡vo ot any employæ, agent Сeull¿nl or gubqlfsqlgr engaged by Oæßtor to direCi dlill¡nû op€rat¡on9), lt¡Ìor aperel¡ng on . Døywotl< 6tsh, Conttaclor 6høtl bs lutly pøló al ahø .ppltcabla nlos gl paymønl Eld æ6ùaN onty lh¿ obilgallont and t!¿bttlllß' atated henln, Excapa lor 6úch obttgâltoni and ttabl¡Itoi spectllcally âssuñèd by Cülncto4 Oquzlot .h.ll bo aololy r.rlontlhi' and tstunoø ilab!ilty lor atl conssquoncgs ol opaaltons by both pañtoa thtta on a Oayfrù Ûtsts, tncludtng ntullg anl ,11 other dskô ot l¡lU¡lllës lncwred t¡ ot lnctlslf ao such oponaloos, I. LOCATIOTIOFWELL:

Well N¡ru snd Numbetr 1o be advísed çt -soÉ ¿ê-

Psri€à/ County: sþro: Oklahoma llare;

3o- N-

Ll Addlllonal tToll Lellö¡r Þ¡ Ail¡:

m

le€sa. 2. COÍTIMENCEMENTDAIE:

ConlÊ6'tor lho w€lì b#àô cây€f .e0 q -

StandbY. u¡tll tho ¡E

3.

sppro{m(€ly J.1 W6ll D€pth: lhewolt(s) shsllbe drilled Io a dêpth ol 'f BA Êæt, o¡{e{à€ loßatloHvhl€hs¡+0{sÊrr, Coñt6clq shsll nol be requked hereund6r lo drill ûid rel¡fs} b€low a mxlmum deplh of bul lhe fe€1, ùnl€ot conl.aclø and Op€rgtor mullatly ãgræ to ddll to a greâtêr deplh " l{ot to excegd cap{clly gl r¡g 8r daærlbsd on l¡r rlg lnvoñtory ¡tttchod ho6ln' 4. DAYWORKRAlÉSr Cdtraclor6hall b€ påld at lhe lollowing ral€s lorlht wdk polomod hs6under. 1.1 Moblllrdlg¡: Ope6tor ehsll psy Contr€ctgrã{oh¡faù4{s{t¡ sarcbll¡atlonday€têor¡ 17,000" dey. tÞ dw sf,d tn lhar¡g ¡s rioged iññläõñ¡ãijñ6-wãiEi6ffidy to spùd. li,lobllíuallo¡ shall ¡nclu¿q

4.2 Domoblllatlon: Op€Etor 6hail pay Conlractorri€mbll¡tf$¡ge{t¡ * a d¿rublli¡adon day Gle dsl¡g'{paFdwf r7,000* perday, prcvkted horever thetno demobill¡etlqn læ ehåll bq lflhê Contract islemhSl6d dus tolhÊ tolsl lo58 o.doÐkucùon of tbe rig Dôtubiliæl¡on shalllncludeì to tho cfanas pêrm¡ts and for manl¡fts, light towers and str¡ng

*-.4¡lrwln¡.Rrllr0uhg+a¡irm.thÞ{t¡'l&lô+ðs{{o,rûR{drill¡fs'#!€bsnfira¡lo¡¡ffiHe{ repoHlo+ehaFpay eoel€€¡*€+s{É$ Fs+/e¡ryJecF{34tåecFdqÊ ,4.4 Op€rrung Dsy Râtê: Ftr w¡k perlormsd per tw€ntyJd, {21) hour day ør¡ FlVg (5) me¡ sil lhe ópõrollîû dey Élé shâll bo:

Þspth ln{eryå¡6 Fron To Wlhoul Drill Plpô !ì¡lth Drlll Plpe 0 Rlg Release r-!!Q$l__eeroar $ 20,000r. pet dày porday $ p€rday p{ d8y por day

Using opsrolor'¡ drlll p¡po ¡ 20,000* pêr d€y, 'fbe ôpemt¡¡g oây R¡te lnctudes r cånr¡g top dr¡ve.

The ratê wìff b€g¡o when the drilling un¡l ¡ô rioggd up a{ lhe dr¡'ling l@tio¡, or pos¡t¡oned ove. thg l*llm dudnq narjn€ wûk, ¡nd rcðdy lo ænrenm opeBllms; 90d will

ceasg when lhe rlg is Þddylo bô mov€d of lhô lMt¡oo.

(U s,oaN¡Ncüræl-fr1o Copyrigh{ O 2003 lntmatlonal 1)

Assìelion of Drilll¡g Contråcto6 Form prov¡dåd (214¡ 340-942S Hiläårnîå@ EXHIBIT ''I-D''

Ror*fld ^pd,2003 ll undo, lh€ sbovo rctuffi 1 t¡th Odll Plæ" ño Þte9 at€ gptr¡ned, ths rste pq¡ tv€nty-lour hour ø0y wiao dlll plpe 19 tn use 6htll b€ tho spplløble rato ôpñlliad ln tho

@lumn 'túV¡thout Dr¡ll P¡pe' pluô ænpensallon lor 6ny drlll p¡pe açlually usêd al lhe råles spoolñed bêlw. æmpltod on lho baels of lhs úaxlmum drill pfpo in uôâ 8t ¿ny durlng eEch twenty'tou¡ hourday'

'ne DR.LL prp. RA'E FER 2a.lrouR oAy Olualon!lot Sù!lghtHolo stro 8râds Sho 6r.do ¡- - -NIA -.. -pert. $-N4--p€rn. ¡ N/A m. n ¡ N/A pÊr n.

¡ NIA ærn ¡ NIA ærn.

Dl@itonator unæntrolled dovlaled hole w¡¡l bed€êrud to 6xt6t wh&dovlalion r¡eôdô- drgtce3 otwhen lhe c¡ange ol tngle €xæed8

dogræ! po.onc hundrcd fst.

Odll plpe rhElt be ænsid€r6d ln use not oñly when ¡n ac,lu€l 69 but ds w¡lle lt 18 bõlng plcked úp orlsld dæn. When drill p¡pe ¡s rlandfng h üÉ derrlc*, ll shall rct bs æng¡dgr9d ln uþ, provldsd, hffivs. thg! lf Conlrsclor lumlshêr spedôl stdngg ol ddl¡ plps, ddll c!¡18r5, and h¡ndllng tæ13 ag lrovldôd lol ln Ê¡hlbfl "A', tho 69me ¡hâll -

bs çg¡gldoæd l¡ ug€ at ell tlmes whon on lo€llon or !^ll¡ rgleased by OpêElar. ln rc oveîl õhall lrsçtians gf.n ltour be ænc¡dôrod iû æmput¡nÐ lhé smuot ot llme drill plpe ¡s ¡n ûe su& l¡me ghgllbe æmputed tolhe regr€st hgur, wllh lh¡.ty minutes or mr6 bo¡¡g @n3¡dsred Ê fullhour snd lê89than th¡rty mlnotôs notlo bùt

¡.6 Rop.rr Tlmo! ln lh! 6v€nl rl ls n@srary lo shùl (þwn æmp€ns¡tlm dt th6 rppll€b¡o r¡lg lor suc¡ sñut down [me up of such ømÞen0at¡onfotanyæl{d¡.nonlh- Thorcañor. Cstrsclor€hallb€ mp€n$tsd sl to a max¡wm êxdud,ns roullno l! soNlclhg, "^ni:"Jitåf,.!:Þk5, ol':dgE]igLa hdts lor snyong lg repsirloq a râte ol3----f!-fglolbul not to "-*å3r.HlE-lllïEt exæd JbgH!Èlgå- houß psr twonty.lwr (2{} hour day. Rouü¡e be @lnted.

rls ,t

I

serulclng sh8ll lndude, bul oot b€ llmfi€d lo, cuttlng snd sllpplßg ddlllf,g line. 6han0hg lump or sw¡vsl oxpeodablee, tsilm gOP equlpmnl, lubrløtlng ñ0, a¡d lø dflyô ü¡hr¡onlnco.

nomrl .ll tnd No t¡l ñùd ôd Hulftd lo l¡Vhon nuño¡ hi dÊd ilñuçtlñæu.le.lh¡ llma rdr( chrElno aþnd¡bþ ilmo 8tl¡ rhâll *s.a==aéae___lø ¡

I

i

,.8 Abndby Tlm Rrt¡; l___l_______-__- pG¡rEõþ.fùr(2.) tlre rftdlb! doltfid lo doy. SEFdby lßJvdo tlrc whsn lho d9 b ih[l dM slÛtough i¡ rüdn6& |

to bô€ln or rosumê opêElìon9 bul Co¡lrsc(or lr wqlll¡g on orden olOp€r¡tor oion malgdlle, *NlæB orolher ll€ms lo be tuñlshed btOp€ralol

4,? Drllllrg Flúld Râlgðr When drlllìng flulds ol s lype snd chår¡ct€rlrtlc thst ¡nqeãEeq Co¡lraclq's oæl of p€rtornsnæ he.etnd€r, lndudhg. but ûot llmfled to, oil'base{ mld or pola3sllm drlorido, rre i¡ u6e, Opeñlorshâll pay Conlraclor¡n addilion lo the 0p€6lin0 rale 6tæifêd 6bove:

{s) mn pil dày lü Cor¡bûcbf! ¡19.¡llg pârsonneì. (ìr) ps, oddlllonll apor¡ling rÍoi 8nd (cl hoqG oFEllng r¿te to clean dg ând rol¿ted oqulpm€nt

4.8 Fmû l¡!.laqö R.aa: hoúaday lor any æôllnugls pgriod (hst ¡omsl openllons a€ guspended or€nnot b€ @rled Òn dus to ændlllo¡s ol Foræ Majeure Ês dôlinêd ln PaEo.âph 17 heßol lt is. however, lndeGtood lhat ¡lbjecl to Subpe¡8gEph 0.3 b€{ow, OPor¡lol sô roléâse lhe dg ln aqdanæ wilh Opèralor's rlghlto dircctstoppâCè 9f lh€ rcrft, offôcllv€ when condlüonew¡ll lmltths.lg {o bo rcved ùom th. bc¡tlon,

t.9 Rolmbu[¡ble Coat!: Ope6lor lhôll reimbuFo Contrôclor lo. thÊ @sI! ot malorìal, Gquipmnl, wrk gr soryl@s whlch åre (o be tuülihed by Oper¡tq sB

Þrov¡ded lor h€r€¡ñ bul whlcå for 6nv.nienæ 0r9 rduellyfumlshed by Co¡t6ctor åt Op€rÊlo/o requqgl, plus ----Jü!!gojl!L pe@nl lor such æst of handllng. ¡tlârtr, I Ðl Opanlotß req@ta aûd wllh 6oaañclor's sgt.ønenl,lho Conttacao,lwnlshes ot sohconþdc(slo. codâln l/ me ü sw/ces wirclt OpøEtor k roqulrod h*lô lo prcv/d,., lot pwpæas of lho tndemn¡,y ând.otdse povlrtons ol lhß Conurcl, s¿ld llemô ot ierylcæ shall bo daÛilød lo ho Opñlor lumlahú ¡loms or tcrylcct, A¡y .uùconßctoîs ço hhgd shâll be deMêrt 10 Áe Opsrâtols cona@çtgr, and Opoßþr shall ¡ol hs ßl¡6vød gl any oa llõ llabllllla h çorîoçlton ljlercvtlh. Nol¡*/thtttndtng lho lorsgolng, Coîanclo¡ sh¿tt etl he obtlgÂ.t lo putch¿66 any tløñs on bohail ol 0.'8nlü. I

4.'10 Rovhlon ln ¡l!t{: Tho .6ls¡ 6nd/or pryGnt! hêrcln lgl lorlh du. lo ConÍacloÍ ftom OæElqr óhall bo rôvired lo renæl lhe dnñge l¡ æ9{9 lf lhs wtg ol sny

ol lhe llems hore¡nollsr llsled shall v€ry by mor€ lhsn p€@nl fom the øsls lheEol on lh€ dats of lhls Co¡tracl or by t¡E sare ps€nl sller he date of I sny rovlslon pußuant tot¡is Subp¿Ggraph: -¡g9l9l_ labor æsti, lnclud¡n! all b€nefit3, of Cont€clols peßonn€l: ConlraclolS @rl ol insu.¡n6 prènlum8; Contraclor's o6t of luol, l¡ctudl¡g all taxeõ aîd fæs; lhe øst psr gallo¡lMCf b€¡no l__l!¿A-; OpåEtor rh¿ll prcv¡de ¡ll luel.

@l€rlng. whe¡ eppll€blÉ; Conkaclor to ìnqeaôe ordocrcôæ the ¡ùmb€¡ 0f Õont@clor'g perunnel;

{¡Ð(0 lflh€ß 16 any chsngg ¡n leoìslsl¡oû or .e0ulallons thê ar6å in wh¡qh Conlroctor rcrklng or olhar vofofoseon. unusual evenl lhat all€o Contwtol¡8 fnanciel burden. 'n 5. IIMEOF PAYHENI Paym€nl lsdua by Operatorto Con¡€clor ås lollows:

6,1 Psymfft lq mbllhallon, dr'll¡ng and olher rork peformôd at åppll€bfe ratss, ¿¡.t all olher ¿ppll€bls r¡slges shall be due, upon prê¡€nttllon of lnvo¡É lhôrelot upon æmplEtlon otmoblli:âlion, d€fiob¡l¡zalion, fg Gl€ase oral tie €nd ollhe mnft in which such work was pôrfolftd or othor d13Bca âfâ lnølad, wñlchevor shall f6t @ur. All lnvolæs ñ¡y bg m6lled l,o Operalof 9t ths sddress h.Elnsbov6 6hil¡, unleôs O!€rðlordæs heFby daslonåle th.l such lovolø! thsll b€ malled 6c r^'l^.-

6,2 Dlrpttod lnvolræ rDC l.þ P.ym.nt: Opodlor ôhall pay¿tl Involæ6 dìhi¡ ______lÀ]4¡lgL days aner re€ipt sx@pt lh¡t lf Oporðlor d{!p!tè! r. ¡nvolæ o. any p¡n berêot, Operator 6hall, wllhln flteeñ dsys tie( Gæipl ot lho ¡nvoiæ, ¡ol¡ly Conlrætor of lhe itan dlspùled, spêclfylno lhe rergon therolor. snd p6yrent ol lhè dispuled ¡lsn may be wllhheld unl¡l ssttlem€¡t ol the disput€, but tirely payment shsll b€ msde ot rny und¡spuled poírm. Ary sums (irclud¡ng smountr u¡llmat€ly Atld wlth reÐecl lo I disputed ¡nvolæ) 0ol psld wilh¡n lrì6 abovo 6pecifl€d dsys sh0llbe¡r lnlerÊst sl lhê rale ol 'l {¡2 p€Ënt t lhs mx¡mum lsgal rale,

whichever is less, pef lMlh lmm lh€ due dsls unlil p¿id, ¡l Opeßto¡doês not psy und¡gputed llems w¡th¡n lh€ qbov€ slalèd l¡ms. Contraclor nay suspend opsrat¡oîl o¡ lâmlnat€ lhlr Co¡tJ6c{ as sp€clfisd under Subparagroph8.3,

6, TERII| 6.1 Ou[tlon ot cgn¡ruc(; This Conldct 6hsll Erulñ lh full foræ and êlecl unlil d,ill¡ng operailils ars ænplotcd on ths woll oR€{16 3poclñed ln Pgregrsph 1abové.€Ê{€æ.tmof_ræmm9nçlngoî!h9dalê9pæ¡fod¡nPåfa9r¿ph2abovô 8.2 Ert.¡rþr{t{4.Ð:Opr¡krruf,qþ0d{þJ.læt{ßC0¡l6dld":s¡lal,ø-liri¡'p @

6.3 Er.ly cl lê) By Eltl¡or P!ñy: rc[É. slhsr party may t€m¡[ale lhle Coo{Bct whon tolrl lo¡s q d6truclion of lhs fig, ot s mjor ¡EEkdm wilh ¡ndofnlle €palr time neæssitsle llopping oporsllons herounder.

(U.5. ùretk cøte.

Pâgo 2) Fom pþvìd# by Fo!ß Ona.Otor ,/\ Copy.lght O 2003 lñtgrnallonal Aosoclatlon of Drll¡ing Cúlrâctorg (2r4) 340.e42s . Fomõo*o"*.*'

[*OO \

Rq;t é Apd,2n03 op¡rllofr $t¡ proyt¡lons ôf Pamg€ph 3 wiìh r6ped th6 dspth 10 b¿ drill¿d, op€rå{or th¡ll hav? lhe rl0ll b dlßcl the lloppoçe ol lho lbl sy Notwithltândtnû to

lnd ivll $ou!n cdilsctd hs8 mad¿ m æledi he mndor luch gvent'

wk to bc pedared by Cðt¡¡clq hoÊund6 ol goy uæ prtor b raæÌld! thê apælf€d d€plh, 'n OÞôEIG ohåll roiûb{rrs Conlræhr s æt ldth }o SlbpÐngrsph B '{ ¡!r@l Coñre: t¡6 provttþd of psf¡gBph a tú0r Flp¡d 10 thÞ daplh lo be drilled, in lhô ovðt op€cH ¡h¿ll b€Úo inælv'ñt, s bi lc) By Notwìthstâfld¡ig

edjodkåtBd a bgnkrupt, or fls, by Hy of p€ìidon or snrw, 9 dEblods polì{hñ q oah€r derdinC æklrE âdjuôfmnl ot OPsBlo/õ doblr. unds arry brnkup{dtôr d6blor't

t8€ nw o. hlrsllte. p@sillng, or llå¡y súc$ bs tilsd sgainGlop€råH, ø ln ere e @lvs bê ¡ppolnlec oloP€f¿ld ø oPsmþre ptDpe.ty. orâñy Þad fifiæf' q rc]þl opse{o/s ofd'r¡ bô plÊed 14 the ha¡d3 ol s crodltqis commltæ, d, folldelng lhrs busires3 dôys prìq w¡n€n rclle to operålor f oporâls d6g nol pay cdtÍoc1of

within lhs t¡ùê 9p3¿itrd t. subpsBgreph 5 2 aìt uñd¡¡pjtod ¡t6ms dø and fling, cmhôclor n!y. ¡t ¡l! qpBo¡, (1) olæt to lffiiÉì6 ludh€r P€¡'otmrnæ 0i €ny wk lnd€t

ihl3 Cfftrád ¿nd Cøratr/s rtoht to ørs,ônstioo th.ltòo s 6tfqth ln Subp6Eonptì 6.4 heffif. d (2) guspeild op€ê1¡éû6 mtil p¡rffiì la mdê by Ôp€råtc.ln wùlctr

ownt lh€ st¡ndry Ìm rstG ænl¡lned ln SubÞstågrsph 4,6 shsf ,pply until psyffint 19 mds bl op€rôlor €nd opqslhtÊ âre l6umd ,¡ rddllro, io Con&teloa'3 'tghlè to süþand opoö{ons q lfñtnìte gsrlm.îçø undal lhlt Pâ6g6r¡t, Opwlot ho.oby o\ptstty tgfrGs lo Prclc,' dalç,nd añd lndmntly çontnclgr lM è¡l rgFnstrnyclormtdrø!ndsrndc.ltaaot&¡Ibn,lrcludlnçdltcosLotdalanta,lnløvotolOpqrtor,Opoñlor's6ûvonla/oE,co'lera*cióloln offiffi'q .îy other pôdl6 trßlng oul ol any dil¡ilag eomñnûútt ol o[tt',.íoÛa cqllstnod lo a.y têto1 ferúoltl ¿gr@mùlo..thor âg'ffiÖnl" wy'tlch mly be .lfæLd by õæ1, c6pM¡ror ot optnllonÊ or aa(mlnallon ot ga'lùmûca iffilndsL 6.4 Éañy TóÌr¡lottlú Compen¡¡íoni fr) Prtor lo Cmncncom¡t: ln lh6 offit OpdElor (€t rlüt6 lñlt Õdt¡c1 Príd lo &mneiælMl ql opo€Ùmr hc@ñde¡' Oprûtot sfts{l pây ContÓctd ôs

l¡quldåled dâm406 snd f,otñã po¡ãlly ¿ryr s á lump ùun ol ¡-----l4L!!û-. I

splddhg¡ lt 3!cì tsml¡t{im eE en@ffiml ol oporàüoN bul p'¡q ltþ rÈ'ddhg ol thê *rll' op¿'atol rhgllpay to conlÉclol thê lum lbl Prlgr lo ¿tlof 10

o¡ the follding: (ll all éxÞf ñ06 rea8wbly ¿nd nffiárììy lndø€d ond to bô lrured by confac|tr by Éâ3on of l¡9 Côntráct 9rd ry É¡son o' lht tsrfiatlG teÍilnaüqn

ot llþ mrt, tNludiño úÞ 6xp€ns€ of drit¡¡ng tr odm. qw mn¡¿Ë ¡ñd rupeplfor diKtty issd¡nêd lo lhe dg; (2) lon p4ræif (10%) of tlc âM¡t of .ffih ßlrùußåblo

6rp¿¡s8i g0d (3) r rum ølfllåt€d al thr 3t¡ndby tìffi Þt3 lq tll l¡m Ím lhs dâlo lpon wh¡dl conlÉdor ffiffi6 ¿tly ÔÞoÉLoÑ herêundrr dom lo ruçh d¡tB

subsoqtmt lo thè date of tgn¡ßliim as !.úll âñod Omlråclor rê¡¡onÀb¡ê lim lq diwoÍe i{ô l9 aild equlpGnt?þvi@qs*+&¡+€or¡kæ{þfo{'3{9m{êrc thon m+v9*+Ê-lor.€,pqi.d{rH¡rkOForte. ¡h.¡l pÛ cdhÊetq¡ h -dd¡tþê{e tha aMr.gÞ Fffi lÂri#-R¡l#ra}sy6wrfl9ùæÞþot4cþ *d ol thô{ô# h¡h ¡. llâilh1d

(c, Sqb¡ocKnt to.p{ddlngì It rß¡ þml@ûon @B allor llF spüddi^0 of lhe rell. Oporôlor $h¡ll pay ôqhôc{tr (l) lhs rruñt lor 6l gpdleblo råle! eod 8[ ottrd rjur0æ ¡nd F¡mbu|ffint¡ de to ctril¡.c1o[ hrl ¡n rc ownl rhall sùtf !uñ. exélusivê of reimbi¡ffinls dß, b€ l€59 lhån KUH haß b6en Eárn€d fot d¡yr st lhÉ âpd¡câbÞ Etó T¡viúet OriÍ P¡pé" 6od lhe 6ctúsl .rut dE lor dnl¡ plp€ osed ln ðødaM v/ih ll¡s abm I q (2) a( lho éte.l|r ol cmtads and h lþù ol tho loßgolng, opmtor 5h8ll pdy contddq fû ôll spensg l4sôblf rôtes; snd re$atily hÚrêd 8nd to

bêlncUfedbyf€agmollhI!cøroctåndbymsnotãuchpr6mth]t6i6mínqt¡mplUE'@d{¡tì9€scffl b-r{{-t*B-{r-trm-tb¡¡Hlç{ËrþFle¡f.rrøúC,Ímr4¡æto,{h¡{-lråf€sl,*1dr1.1{ddl¡l*lo-lÀa{à@}1lE-¡o*¡¡¡isß4.{r-l€-¡ry'{Í¡d!slt t¡bd{rør¡ó¡â{r+¡{dFûsl¡ofr s{HhôrÉd ltslds{a ¡¡ lla¡uldttrl drü¡tÉ trd not É olhrlo. r lgjto¡uoi ôo$l lqJrv.n l?l d¡t ¡l tht Strldhv ïlm

7. CASINS PROGRAI¡|

Op€retor shsil h¡w the.tghl !o dBe¡gn¡ls th. po¡nts al which æ¡h9 wlll b! €t and l¡! mrnnû ol letli.lg, cw¡tng and tæling Operalor ry mdlly lhê

6s¡ng pro{¡rân, hffi6t, aÂy ¡uch rudlfiÉtlon whlch mt€riâlly lm¿.Ë Cmlßc.tofs hørds o. úslr øn oly bo rodo by rutuÊl 6n!ml o, OÞ€rstor snd

Cúlrðclor a¡d uæ¡ rgEomgnt il tollþ sttdllþül ønponeum to bo plld CantEcìff 6s a aosÚlt lir.æ¡. !. ÞRILLING ¡IETHOOS AilD ÊRACfICEE:

E.1 CaîlEclq ihôil rutrt¡in rcil snlrol eguiptrffit ¡n CoÖd ænd¡tim â1rl liûôs ðnd shsll uss lll r€ssnable æaos lo preYgnl r0d dtro¡ lir¿! ând UmulS ¡nd

lo Pfolecl l¡e holô, lo thà lðrw hsræf, a¡d at OpoElol,s 6st. at all tlm.s during lh6 driülno ol lhe Ell, Opeølt lhsll hâvo ùo dghl þ mlfd llþ ñud ptogfsm, d,2 SublÊct

snd th6 ddlllng b€ ot a ùpe snd h¡v€ çhaßç,1ôfisÛ6 ând ðg mal¡tslred by coûlÞclø ¡n a@rdanæ wilh lho sp*jÍ€tions shM itr Exhlüt "A', flld úu.t t.3 EEct psrty hrreìo sgfæs to conpry wttt all ls*, rul€s. and rogùlalldÉ o, 8¡y ledoal. st¿ts q læl oovêlnmnlsi 8ltho.ity vób¡l 9€ w tr @y b€cm sppl¡6ue lo lhst p¡rt/6 opereÍo0g aver€O ty d arisin! wt ol lh€ p€dmn6 ol lhl! CooÍe{t When ßqulÊd b þw, t¡e lerms or Eltllbli "9" Eholl ¿ppty to lh¡! Conk&ì- lñ lx ewtrt any prcvtston ot th¡¡ C$tJâct i3 lnrô¡ãlstñt wtth or øûtrâ.y lo åny ¡pplhâUe têdeßl slale q b€l H. rulê q rogu¡rü9n,

sld pfov¡8þn ôhsll b€ dæûod lo be modlfad þ lho €xtonl lcqulcd to qnt'y wth tsid l¡w, ruþ s t6gul¿t00' s'd ¿s ¡o mdlllod ab Pt4i¡lq 6nd lh¡g cstr¡ct shrl¡ænllnue in tulllorË snd gfæL 0,{ Cøfåc¡or shdt kæp âñd tur¡l8h to OpeBtor ån @6tè r@rd ol th¡ þik porlomEd ånd ldmaÛ65 drl,lod oo lho IADC'API Då¡ly Dt¡lllño RePod Form

or oihêr lom aüplablé lo OporÊlor. A ls!Ít. 6py ol8¡d ldm shåll bè turnllhcd by CoÑ¡ctd to OpÉr¿t t, g.6 f roqwted by Opsatff, Conù¡do. shsll tumbh Opcrotü ttln r ðpt ot delìvcr), lÊkels ssing Âny mledâl ol suptlio¡ peldrd b, Opcotø snd

lMrv€d by cølùâ(1ü, 9, tilGRESS, ECRESS, AñD LOCATIONT opefåtof h3reby a!910nô to conlraalq ail î*ssry ¡lghls ql l¡gross ¿nd ègrês wtth ,63pect lo the v¿cl on vr¡lcb lhg wll 16 to be lgi€d fof lhe pgrlormånø

by Contßqiø ot st þ¡k coolnoatatêd by this Cof,t¡acl. Should Cøtrclor b€ ds0¡ed lræ æs lÞ lh€ locålio¡ td ¡rìy rq¡q rcl r$o¡sbly *lìhlo qonuælol! qtrol. añy t¡m lGt b Cmlr¡clq a3 € ßslt ot such deolEl shãll bo p¡d ld rt tho stqndby tire 8lê' opèElor ao.g El ðll li@ to ruhl'lln lhe toed 8¡d loqì¡on lr 9wà a cøditþn tì¡l will sl'fl træ s@ss rnd mvmñl t0 s¡d Ím llF dillin! sitB i¡ ¿ñ ordins¡ily ?qu¡Ppêd hþhrry lyÞ€ vch¡c¡€ ll Contñdot ìr reqlired

to ùs buildoars, tàcloE, lour.vhô€l driE vêhtctot, 0r any othe. rpôc¡åtÞed ldnsporlsUø oqu¡pmenl fo¡ th¡ mvffit ol lwBsry pssæl, noa¡lnery' d eqr¡pmnl over aGls iùd8 or on lh6 diÍlng lmt¡oo, operÂtôt rhsll lqrnìsh hê sñè ðt ¡t! oxÞóîæ ånd wilhou{ @l lo ConÛqclo., Tho ac{!ûl æôl ol t€pEiD lo any tanlporlston equ¡pmqDt lutn¡3hed by conlfôctot of ¡15 pefsnndl d¡m¡ged as a relult ol ìmp.opedy ñsiôlêlnèd Eæla lÔ4d3 ü t@llon uilt bõ chs¡ggd

ro OærBlor Op€.âlq Shall c{môuæ Cgqlddt for ¡ll ôrcunls reg3qæbft qFidd b, Cdkáclor ld leÞâk¡ 8nd/d €lñlq€m'l ot l@d8' btldgo! a¡d r€laled or 6im¡lsr f6cililiè¡ (Fiblb ånd Ptiv.lo) rêqufed a! r dlrsl tesdl of a rg mvô pÛlóuanÌ þ Pêlq@ne l€reundøL op'Elq rh¡ll b€ ßgpo¡ô¡bþ fq dny @ls ¡sodstcd

úìth l€vel¡n€ lhe ig bF¡üæ (ú l@lls¡ ættlhg 10. 60uNo LocAllailì Op€Íllor shat pægrè ¡ end tæt1¡M âdóqurlo ln slze ¡¡d øpabl€ ol proporly supponino lhè drilling rig, ¿nd 6hrll æ r6pongiblo iÔ. I @r¡îg áM €@ol¡ng

ÊrOgrûn adêqüole to prevfil soll gnd BUbs¡l w¿sh oúl lt i6 Gco{nl2od lhsl 0Þorå16 ha3 3uperior kmwl6doÉ of lho locstþn snd ¡c633 roúes b lho þ€1lo¡, gnd oust

Cop/{ìghl lu s &Nr öffi -

ô 2001 hle@tionslAsú6ieÙÐ otD¡lliñg C@tÉctoÉ P.06 3,, Fffi {214} trov¡ded 3{0-s29 :!trffiålifi'¿@ sdviao CônfÞoter o, orìy ¡ublulêF 6nd¡llo¡s. o¡ oå¡trucliong (lncludl^g, bül øt llm¡ted tq, ñns, øvamô, rink hoþ., 6lfraN. pìpull*t. #*dlffi #É conmunt*lion l¡res) whtfi CÆt¡åslq ñ¡ght s@ntd wh¡le en routs þ the loÉtiñ or duri¡g óp€r8Ùons h€ß'Jndgi tt ahê avut aúsuúsee tôndj,loß øß0, cnt tlng øt êh¡lttng al th. toüllan à!¡Isc., or tl tqbèd çendúoúi p.ôvø ûûalslacaory a0 PnParIY aulpon ltu dø dudil mtda. offi.Ioît h.nunÚat' ân¿ tnas or .hñogg to tha ttg gt lk asocr.ted equtpûØ¡ rcutg thêæl9m, Opcfalgr châU, qtlhottl Ð$rd to a,het Pravblil. oI ¡hlt Conlæt lncttñlnt

Subptñgãpn t4i hewr, nlnbÈaè Cantst/êw lot ttt tsch toæ ot d.naga Inclcdtng nnovêt ol doþdi tnd pøyñonl o! Forca lt{.u¡. R.a. dudãg nerft ond/ú d.ñobltlz.tloî ll rqptlètbla, II. EAUIFME'.¡TCAPACITY OpeEltons rhãll rcl be sltsffplsd und$ any qldÌlÌøs úLñ æed lhð câpac,¡ty ol ltìs equlgfrll| ¡p€dfi€d lo b€ u6ed hêÉundèr F{A€r¡{t¡}afrd¡a d€o{ts

Íêivd¡æ lo lhs Fqvhlons ol P¡ogrsPh 14 hocûnftr, CstEsld ¡hgll hrs lhê rilht to rckô

thc Ínsl dscßk ¡ ss tô wlFD En op€nt8 q suompld opcßti{h wuk, aræ€d the cåPrdu ol ¡peclÉd gqu¡pmot.

t¿. TERMINAnON OF LOCAïOt{ uAellAYì coltroclo( ùra coiltudod opontloñE et tbe ffitt tocatton, Opãnlo, shalt l}.eßl$. ba ltrb¡a lot úmagê lo pÛpuly' PoÊanrl l\Juty ot ddlh Whon gI ohy Føßoa whtch orc¿rê,6 t ËsL q/ có ndlilOni ol ahs lo@tton .nd Coni¡tcTq .hatl bo ¡eilav& al such lhhltltti Nôv¡dad, hoßvti ll Conlnêlgt thtll sublaquúltt rwtøt upon ll,e tÒâltor lor ant twon, Includ¡ng tØovtl ol lh. ttd, aly lqm ol th. Contrnaa nltfîg tg súh ßúíry acllt//ry t'tlr, ô€gñe spplk.blè ludng seh larlod, t1, IN6URANCE

Dsrhg the lits of thþ Cfilrâat, Cqkaûtq ôhâf ¿l tonl@tof$ dÞeo.ó mlnta¡n, wllh on ¡nsumm mpony or mp¡nlæ rulhq¡¡od (o dô bugh€¡Ë ln Uìô

stâtê sÌrers fh8 wod< ls ìo bê pglormed or thr@eh a *lt¡nsuÞM pro06ø, in¡urå¡æ @ver€q€g ol tha khd and l¡ thô amNnt sf lorlh h Erhlblt "Æ, lnsuing thð

thufit¡o¡ spæilìælty asuûÞd by Csl.tcþr h PaÉgDph t4 al thla Contr¿ct Conlr¡rls slEll prgß ftm lh6 comp¡ny ff æmFnle8 ültr4 sld lnsüónø a e¡liløtô or @nifpds 0rát 3ald ¡nstanæ ß lû tuÍ lm ând 6Íæ{ årid t €f the !¡m !hál{ rct be €Ëþd q mbdsly ch¡!{€d tithû¡l to^ {10) d¡tr p.io¡ Hidm ßdþ þ OFoGIñ. Fq Û¡bilitss rsleEd h€raundqf by Co¡rtrddor, ¡t. in&6rc shðlt be enlon¿d lo pm¡de lhåt lhè u¡deMitñmi€ lhof rìeht Ol ÊUb¡þ!¡ü6 .!ßhd Ope6td OpôËlw w[, e6 G[. @!s Ìl¡ tnrußr to Mlf lubÐgddon sg¡ìnlt Cqhcw fd liåbrl¡ly f *!ums rnd shgll rulnb¡n, st Operotols 6xpooÞ, tr .lEtl soll lnruF

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ånd sfhct ¡nd ìh6t ü!ô lrre shr[ ml be ø¡c¿led or m¡trrhlly drangÊd wifþsl len (10) days prkr çrjten mthe to CqùsË{or opqslû ind Contracld ¡htll ousc lhclr r6Þcc1¡vê undâftrilffi b nsm lhô sthsa addt-Krully inguied but o¡ly lo tlÞ s¡leûd ol llìo Indomnil¡æfm obli0âUoN ¿sluncd herEin ra. RE PONS|BIUYY FOR LOSS OR 5A[{AOS, lHDElr¡llTY, REI¡ASE OF LIAÅ|UW ÀllD ALLOCAÍION OF RISKi l1,l cdíÌæ,9/êâsl*oÉf¡|ÞrÈtuclrtews¡yr'r,troþwilctdrslo¡Ûn0þf0ofdßl¡Ælof (,cúttcþft$areof4{l,trs¡a,rÉ!ryd.$ot when ô. how ôuch damage Ð( dñfiuctlon ówura, tnd cþnlâdot Eh.ll tètuse Openlol ol ânf ltahlllq lor rny 6uch lot9, aF+a ,o¡t or dtñfgc tdol tha

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{n r, ed fûr ily þ$ FdrPúp lo rur,lÊe ol a¡ô *rlÀ, ta.f lñtp¿.¡lo¡ ol llaa¿¡laft Fwlthod hy OFaalo.: Canl¡tclot âgto¿t lO vttnlly tnËpotl all ñtl.,'.ls luml.ltod by Opøao, halote 6lng 4ña añd lo nof|,Wq o, úy ap4tqt ffis fÀ*d¿ CoffiGlor çIEl roa bø Pêble lú ily þûr s &¿¡rÊ ,ú4Ur'!l ,tø lrþ s qf t¡lïtat Îrtttth.4 V OÑgr' d Opuelo. th.lt pt*ê Coatfâcliq lrcm , tûd ahttt ptôlæl" d.lûó.n.! lndñnt y Qotvrclot lM dnl ¿g'lEt any t@h il.àlltly, td.d Cg¿tefws ,núênafîcllq ol Ops.br Aonûøtat sttrl .rdwá Oþq?flü ol úy tþ¡,I./f|, lú, antt ,tÐlt 9roa4 dafqd tttó Wv îrw dd '¡,datnnÈy 6ûû ot.úon Ordqy *rûd qrd ch.ñdq, vflJþtta gtùlt d wl¡houaLlp.d fo úto øÆ ø e ß6,hqw1w !ñ rþglgffi ¡grrr¡t rf crCdg .ft,rúr &, dld ol úy ,'tg o¡ pdt6, rrtrf,rt rr õømlm lûtwìú Ir taw o! CØnedo¡t s¡plo¡€ ø Cdltrlsrt rsò@thrclús oltry ais (¡ocltâlw ol âü nqú ù cffilrú¡rf úln9ad ôy ñaclq) ú ,h* øpfdy*t g Øtþaclot t lrrrftc* d ¡ccgsrf ol þúy lrduy, d!úr ø *n¡oe ao Nopsly. &.røaqþÈ htdqlrtly 8úD¡ hÈ Patfr.tph r|t# tr. tflrtþü ñÉMt to !trd *dioíl rn/ ,ll¡a t9 contlbvllo, lßm ury trp@M o¡ffi,@d ôy Wv pñ,Nr lo PrtÚt?þlt t3 # n b rudqå{y ó.ltõtflrd A6a úts Mtøitty tîtt¡s ot rnffi æg|drEd lrwtdr. o, o, lhe }|dñnltlæ t¡olÐEdly ¡NMrrd Mtu Sunprlqdqh 11,8 (*Nrh eoúaclw ü¡l Oñdo. huany

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I7. FOÀCEIáAJEURE Eræpt ei prcvts* tn ihir P¿rsonph 1? ¡nd wÍher p€judkr to t¡e risl of loßs, leler8ô snd lndomnÍy oblio{t¡onr unde. this Contrâcl. esdl p6tly lo thí3 Conlteat

rhålt bô dcü.ôd lroñ @pty¡nq rllh lhô lóm of tih Conlracl, ercpt tor lhe pEftnl 9l Mles wtþô dqe. lf tnd lw s long ar cuch æmplia@ 18 hlndored or

pr€venled by t Foræ MðjeÈ €w¡t A3 !6ód in lhìs Ofrtrâçt,'Fdæ Mareure Ewnt" mud€Í ælt ol God.6cl¡oî ol fh€ al€ûsñ18, øro {dac¡ôfcd t wdcd¡ßd). l¡3umtbñ, Êvotuth, rêb€lt¡(n ù qvl oùitâ, piÞcl/, rlúl wsr d hostilo aclìq, lerdirl æla, fiol!. 9l¡tt6, dilereEg wllh Krhæn, rnlE Ol Publþ ôæmkr, lgdtðl d rt¡lc t¡É, rulr¡, lógutrlioôô diôpo¡jtMr d qddg ol sny gowñm¡Þl súhqiùs¡ hSviôg þr,¡dlqlþn lr lhe p.eñl¡8! d ol3ny qthg gdp, olCanlÉûon or hforul gwiglion (wñolhs or not tqm[y ,æflni¡ed ss s goremmsnt), inablilty lo plæu.o trlcrhl, equlpm€nl, lÆl or ¡æsry hbol lo the opeo nlfkot, aúte €nd ulu{ql lobor ar mlêd6t. equlprcnl ø fu6t ¡hort¡ltt or ¡ny oû$ eus.ô (grept financlrt) bepnd the @ntrol ol eilfier prrty Noithor OpoEtor nor ConlrâctÒr 6hall bo €gulred gr tn prrl, bf ¡gatrgl ìB Wtlt l9 ¡dþsl åîy labd w siolsr dispubs êx@pt in .øfd¡næ vllh sppllc¡ble h*. ln lho gvent lhst Elller pôrty hor€to b ¡endend lntble, wholly oñy ol $os €s€6 to €rry d¡ ¡ls di!ôUofi undq thlc Csl@ct. it ¡r ,Orsd th¿t sE¡ pôrly ¡haü Clvs ñolþ. ¡d de blls of Fq€ M¿Jsws ln siÛn0 to lrlo other psrty !s

Fmp$y 03 possibl€ âlto. lB æ!re@ ln !ûch 6æ3, lho oùlþtlffg of tie psrty €lvirg the flolt€¿ !h!! be EuËpentr duri¡g th€ ønl¡¡u¡ñ ol ðñy instil¡lY s 6u¡ed æptlh¡tOperålor rhållbe odloålsd to pay lo Cølrocto.ûs Fore MaFu.e Røl€ pFvidod lqiî SubpâÞorâph d.8 ôbole

18. GOVERNINGLAW:

Ìrb C$thd lhsll bt conû¡¡d, gffi€d, lnbrp.Etrd, dlûc¡d ånd lhlgrd, rnd üf, ÞhüN báËon üÉ pt¡ü6 dsi.mlñed ln læordt@ sdth OF lM

!u.s æwúkdú'Pry6) Fom pevided by Fom On,q.Dl¡k Copyritht O 2003 lntchrlhnslAôsæjâliø of Dril¡n0 CútracloF 12r1) 340.042s . rmeooADitk.@n / ¡$Sht \ 19. coNÍtoEilllaL:

ti¿FoRMAtlo¡'¡ ¡ôoludlrú, bqt rol lln{l4d to, drdlì, uiüon mqw¡t by Opeõto¡, tnlqqlion obtr¡ñôd by Cqntr.clor in l¡s øndud of drlllin0 oD€elhos on thls Nll, Upo¡ 6h6ll b€ ænldÊnü¡l snd B¡¡ll rct b€ d¡vülged by Cmtlæ1q o' & lo torulloN p€n6trÐlod, thê r9¡ultð ot @ring, t6¡üng and suNsylng, côn6¡derod 'mployss, any psrø, fm, or qponlhn other thBn Ôpel¿lo/¡ d€¡¡qÉtèd rop{€senlSlivôl

20. SUSCONIRACTSi E¡h.rpôfgmycmp¡oyolh6læ01ßc&ßtopglbmrnyolih.o9edtiffrorsM€!lobóp¡ött,ádÛpeldmedry¡lmdlngtoË¡hlbí,Æ'

2I. AITORI¡Ê,YðFEE6 ll thlô CstEd ¡r ptac€d ¡n lho handc ol an eltdnôy lo¡ cdtod¡on ol rny lum dË h!6qddot.

q 8v¡l ¡! b.ouÛ¡l on €m, ol t!tu dÙe lÞr.undq de Þ'lççled

lhrough bankruptçr er aóltrstþn pr$rdiñgå, thsn lhð pEvailÌng party ¡h¡llbr ênl¡ll3d to rÞvtr.o¡sonåble altorn4¡ fds tnd ætt¡. 22. CLAtfs!¡ ANO LlÊl,l$:

ãl vst¡d cldms fot lãbor, @terlå|, ûe¡doe!. ,r{ 3uppllF lo þê turnlshcd by colEc|or tÉGUnder, snd slM to ålla"r rc lþ¡ bl contrælor atmor lo Þsy 6wh lhird psrl¡€s lo ba fxed spo.! $e þåæ, lte Nll, d oltEr ptopsty ol üE Ope€lot q ütè k¡d upon whbh Þld wll ls lomtêd

21. ASSTGNXEñt:

1{.1{het psrty my aÈgtgn thtc Confrd silhoul lhe priot witton øætl Òt thê olhor, ähd prompl not¡* ot ¡¡y sudl ¡nldnt lo .ssign thåll b! glvt lÔ thê !s . guartnlo. of lhô pgrlofústraô by lìc âarlon* of th6 olh€r Þâ¡ù ln thÖ svart ot êrch r!âtgnmont. tño âóó¡gning pôÍy öhoÍ rðmâln l¡ãblo lo lhð oth€r tsfty tEmi of thts ConkecL lf Eny sstgnmnt ¡¡ mãds lhat mâtðfrlly ¡lter! Co¡lrrotolr l¡n€nciál bordon, Conlr¿ctór's ðmpêîsãtiq 6haf bc åqulled to glw elæt

lo ãhy ¡wls o. ddd$ In conts¿c]ol,! oPar.ünq 6çt 24. NOIICESAND PLACEOFPAYilËNI:

Not¡æ3, repo.t!, ând olh€r qÌrunhâtkN Dqu¡red or Þermlttcd ry hì3 CsÛa¿t Io bâ g¡vsn { ssr{ by lne P'ry lo üìe oltEl ¡hål bo doüruÞd bv h¿nd'

ñå¡t€d. d¡0ttsly L¡NmiÍod d tôto@pþd (o tho .ddr!¡ã hêrêinâbo$ !hü0. All BUmr payÊbt h.toundor lo Ctrl¡acfs shof¡ b€ PÊyâbl€ at ile tddËÉ haralÉbov' 6hm unlo5s olheßl8ê 3pèdn€d ìoreln

2t. coilr{Nutt{ooBLlGATloNs:

t¡oMlhstaidinù thr reí¡¡ætlM of lhi5 cøúocf, lhe pårl¡es sh¡ll mtl¡uo to b€ bqnd by thê pÉvieì$s ôl lñls eônlncl ttl3t raiaffibly 6quìre !¡m 8ct-pn tr

16, FmRgAOn€EilE$f!

lh¡¡ be tull undoßtrndtn0 ot úE pånf6, rod s wpl€le snd €x.¡ullw olrtrre¡t of lhe lffi o{ thelf ¡glemêilt and ahrll oxdurlvê|, conkeç-t @nrlfluiee pliol to the llTætvd date h€lsl, whoth€. onl ffilrd lovôr¡ all wí( pólorn€d hdéunds All replôlantålion!, ofar!, snd urdorlâklngs ol üe Psrlið8 nsdo and or in B11UnC, are rct€cd l*1610, añd ¡o ol¡gr qtrsci3, a06moþ o. wk ordeñ, g¡€culed paq to lhê ¿x4llìon ol thiB Cúlrâcl rholl ln sfry woy ¡þdìfy,

smrd, ¡ller or chrnqo åÌy d lhe tamÊ q ætrd¡üon9 ¡6t ou{ hôrÉln, 27. sF€cTALPROV{SþI.¡8:

2?.! Exhlblt ¡C" - ggledlefti$IgqlÂLE¡OÍEl9!! l. .uåohed ht¡{o tnd n¡do e p¡¡lh.Hr.

' '? lt ll"",,ï:ll ff:lîl 3|,f# îlill9 åi"",låltlil$i,,li'.g$lËiå'i[1î""iiåî;îtiålÏ:tgi.''"'"'å?iilJi""3i:iiì'J"']åS,T"ïi,?f,fcif,'#if"[:iH ürìi,ie mi'dúiiciioiri¡iäú* ôàu.tí àru'án äpoper'or *rcõnwni¡ntv¡inue or torom lor ôuõh dl.pu&r'

27.¡ Fw p€íodr ol dohy durtng rtt mvcr, c¡û.d by clmm!trnc[ bryond Cml¡ldo/t canlPl, lnclud¡ng, but rct ilñlt.d 19, lnclemort mlthf, l'ck gf -'à,iilftölirribrølüi,'dciuo-n,rí¡n¡poïåt¡mìiqn¡¡ífrñiqprrnltr-,óþroiorrtrritpryContr¡cto'rsd.lcyñt.ott'17'000ptd!v. t, t3""ll3,å?íåg¡li9;S,lå;1, ¡t¡rhþ or contr¡1or¡ th¡ll ìnwlc¡ oPoñtori rnd op.r.tor pev c'nrls 3280 p* d¡v (tpud to Gro¡!61 Êi':lg3,1llinn "n 'rr¡lr

}åililg. ,lFnÍÎ:'",#lii"liH '-ri'åFtl:i";iHlifål i'l",iÅiÌ,.?*',1'f.,ffilri",iå*"iflf,oï ptob¡¡ ,ï#J$å*i"'iin#iJlflåå!Ìü'¡8#p'i volumrpm6$ praba lü lpbnt volumo l¡cltú¡ú}, t (l probe lncludedl'.d r.tum fow p5ldlo'

28. ACCEPIAi|CÊ OFCONTRACT:

me lopgolng Cqnt ct, IÍclu¡thg th. pøvlslons tø¡dalag to tndamîlty, Nla.s. ot ttrbíl? .nd ¿lloc.ügÍ ol rßtr subqâdønq¡tr 1'9 sd 0'3(c), -ol I parcgaphtlotnd12,.adseb!.agøphtt1,tthaugh11.12,ttÂEknow¡adgsdtagrc.tttoEîdëccøptedhyo$ntotthlÊØ-*t" fTÍ'ZOJê ' '

OPãRATORI /"¿ srt 1l0s:

fho lorcgorhg Cgñtñc1 Inctud¡ng aho pfo|/êrona qlêilfrg to tntþûntty, rtlqt o1 iltþlltay .n.l atlo.alloñ ol ,l6k ol S¿ùptt¡tEÞt! a'9, 6,t(c), F.d',npht

loondt2,rÍdsuþpañgrtlltôla,tlhroughla,lz,lsacknovladËd,.gúdletødecc.ptèdbyCgnlrrelorthla f - deyot---Åttíøþg--mJtr whlch k the odactúe dtae oI lhts coîaøç|, ,ublscl to tlg ovetltblw, aní tubJæi ñ .il ô, ns /tatffi and prcvktont, wtll, lho undqaLal¡,g ¡t¡.t fi will æf ôe

hlnótûg opon ot6ao, uatt OpeätoÍ Itæ noLd L. .ccaptancè, and wilh lh. lutlhat undqalandlng làsl ùlfe¡s ed cortr¿çl ,¡ lrtus dtÚ,td ô/ opoElor

vllhta ol ahe.bovo dêtê ConÙtclor thatl bç lû ôo m.nno¡ bouid by l¡t slgnalua tharcto'

-St!g!!Ld.yt COttTRÀCTORT

Eyl

lltla:

(u.s Dáfrúhffi.PryG) FmprovldedbyFm""^'",* l'ì l^þmlìmÍ Assodaüo0 ol Drillin9 Conlradø8 (2t4)3{0-e{2e.FrymsorìAoGk.m Copyr¡ght O 2003 Y_ /

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gFECtFtCÂllOt¡S AND SPECIAL Þ'ROVISIONs

l. CAEIi{G PROGRAT¿ì (Eæ Prr¡oEpb ?)

Hoþ c¡¡lng wCgha Ohdo Arptoxlnrle Wrlt on Crmnt SL¡ 8lr€ Sctthg D{rdt tlm.

Cooductor ln. tn. lbsrn hrg

i¡, ñ. hrÊ Surtrc! h lbrrll Prctecl¡ol ln. Ìð. rbttr. fi h19

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î. INSURANCE (Sú P¡ËgFplr ltl ¡,1 Adeqelê Wof k*' Con$en¡s{¡on lns!ßnæ æmply¡¡g with StStå Lsw ëpplhrble or Êmployers Lisbil¡t l.ruÊnæ wtfi l¡rits of 3 ôÈ¿ll óv.riog qllolCon(nclofr anployæs HrtlrÐ ur&r l!¡! Cmlrrcl, 3.¿ Coûmarqiat {or Comprohongtvo} Ger€nl Llsb¡lity lrguráË, hcludi^g @nlðctutl obl¡t.l¡ont 9s ßrÉ€cb lhb Cst.¡çt and props 6v€Þ!e fd åll ollÉ. ôllgålþns .suñod ln ü¡s Co¡tred. tha l¡m[ lh¿ll bê S----!¡S.]UI"0¡¡II9J¡-*."'- øUned 3¡ngìr llñlt psr elro@ ls 3od¡V lnlury 'nd Propeít ogmoa 3.3 tu(ombrtr Fobtic Llebllity InsursM úilh lirils tqw ol9-øe.jlL0!ll¡l¡,- lor üô donlh q,njury o¡ oâ.¡ rnd t ono ltl mlllloî -tfi.å(*r aEJdont: snd mllllor Au(oruule Publþ Llsbility Pop¡rty Dtmg. lnwEf,ñ r,{th lknlte ot s , fø e+ch sccltenl. om (1ì 3.4 kÌ.thù{ffit4pe.¡tþ¡r.@lo.1h€-Sþlulo4-Wq*oB$mps$¡lþe-{Mn6.{6Cc*eM{û-mlFg lia$ì{y vndsihô @lhn A6¡¡âd+¡ff¡l¡rDС¡¡bill+¡ B{sdstbd]4{ry{ewp€r6.îdl 3,5 Cdìor¡nruran6ì lrs¡tthbtllty¡nñ.¡nûlñtlotmo{rilot3,.mllllondoltrñlh.r¿sol¡.1.t-t¡Íd1.¡}.Oqoôtorwlllourchu.lilël^wn[æ

{. ÊûUIPMÊNI, MAfERIALS AXD SERVICEE fO 9Ë FUFiIIOIiËO gYOOITRACTOR'

inrltumnts, 6!ry,e3 orÉ l6bor herolnáflel l¡stsd. íncluding ony bånsporlaUon t3qu¡ód lor ¡ucft -J€Hñyffi¡tqtl, The @chiniry, cqulpßnt, t&t¡. rutatiârg, sspp¡i.!, iteñs, ehall be p&vldêd st thg wdl krcâtiq ¡l thè 6rps3o ol cfilrælq unls othaÌwsê nôbd by lh¡g Cmhct.

4.1 Ortlll¡g Rlg '3ublæl to ¡Y.llalrlUty Coñploto d.ìlling r¡g, doórgmþd by Ce¡ùedù Er its Rþ No. üle N¡q ¡êm6 ot equlÛtul beim:

DEWíg: Måka rrd Alod€l Engìnor: Mrko, Model, .nd ll.P - -E¿!:--.

No.on 8ìg Puepsj No I Måk€, 6¡re. snd PM.

t{o.2 M.ke, SÈe. md Pmr Mud M¡xlog PusÞ: t .k6, s¡4.8nd Pm.--_.--*.- Boiloñi Nwber, tlake. H,P. end W.P. .

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Sl¡e farl'B or loll Pr, illkå a ilod€l tlqnb€.

g.O.P- Clo!¡¡t Un¡l: B,O P Aæuñulåtor;

12 OÈrhh l¡mboÉ. .t.3 Nmål¡tings ol drillp¡pa r¡d díll cdlãß 6pælfed ¿bow. 4.4 Cøvs[lionel drìlt ¡rdiÞ|tr ¿.i Cir@lðU¡g ñud p¡t9. 4.0 Næ¡¡sry pips 6.ks and rÌggiô0 !p mt€del. ¡l.t !,lorml 6tora€€{ùr{¡{d{ad{rßñ¡si$ 4.É shâlô sh¿ksf. 4.9 4.{0 1.11 1,17 4,1t 1.11 ¡1.14

1.13 a.1t

5. EqulPMel{f, lll TES|ALS ANO SÉRVICES TO gE FURilISHEb åY OPERÀTORi

Thc m¡chlnery, eQuìprre^t. tools, elsi¿|3, sùp¡r1¡ôs, ¡nsuùmtr, æßi{ær ônd 16ò0r hd€lraftd ¡igtód. ¡¡ç¡qd¡ô0 sny trânsportaÙm rcqulted lor ruch ¡hm. shål¡ bq

prov¡dèdåt the Hll locátkn 8t lhe oxpo¡É of opêrãlorunl8s olh€qi3e notêd bylhls Cçnt€ct

6.1 Fwtsh6ndmEÌd¡inodrqurtga@dw.y?¡d/otdnrilolmtloß,dghl{f-wsy,indudlnsr¡ghl6.of.wãytorfutlêfidwrlsllnoB,dvËtfrr¡ìD0r'hlohw¡y desrhgs. galðs sidetlro 8ugdr.

6,2 St¿k.l@lÍon, dear 8nd glado b€tion. on¡l pÉvld€ lumo$d. ircluding sule¡ng whon nGÞsry. 5.i fsålt¿îkr wlh ftPe Þ¡dftÍng!. ¡.¡a Mud sb.gs tantêw¡lh dpG Bñd fitllñge 6.1 Sepârálgrvfh pìp€ snd ftlthgs- 5.Ë Leh.andetodslrloæônedánddlræ¡noclmudlåîlr,torll¿nk,andmud0â8æplnioi õ.t Laborlod¡gæn¡eçl 9nd deán tÉt tankr and mud ga€ 6paral$ 3.8 Orilt(ñg mud, clEmiælr, ìollclrculatloô ffitefiå|g ånd oûe.¡ddìtivs. 6.9 ?¡p6 lnd únætlong lø olld.cuhting linEs, S,iû lsbor to lcy, bu.y s¡d rægvor.ll circul6ün0 ¡¡net. 6,t l 9rilìhg blts reEmF, DðreÎetlec. sia¡fl¡¿qs srd lpêc¡rl læl¡. 5,12 Cslac,l ffshlag tslSêd165 tnd lælfoñt¡l, õ,'ll Wm llnê æ.o tÍb q hôsd¡, ør barelÉ ãñdriÉ lìne Þlþ Elctffi lf ßquiEd. õ.1¡l ôonvenf¡on¡l @rê bll8. qs ølcheñ and €Þ b¿rôl¡. 5.{6 Dlrm.d @€ ba.f€l wllh hêgd 6.'18 C€mnt ônd æmtjn! ærvic€. 5.17 Elcclñelwíßllôe logghg w¡ø. 5.18 Direc{ional, ølipei. orothq6pd¡61 r9rvkês 6.19 Gun øþt p€doEthg æfl'@!. 5.t0 Explogìvss snd shwuno d€v¡@r. E.2l Fornpllon tes¡¡ng, hydfåùlic fßduri¡g, scldl¡irg å^d qthêr r€lated senlës. 6.¡2 Ëqulltmt for ddll st€û tgstng. t.2! Mud loggiñg sNM ö,26 Wôldlnq so¡æ lor weldirg botlffi Johb ol €¡¡09. gu-Éo ¡hæ. l6t ¡hoo, lþál collrr ônd i¡ ænnscllon rilh lßlðtlino olEll hud equ¡pffit ll requ¡Éd. 6.¡G Csrlng. túbiñç, li¡eG, ågæn, noat æ,¡6rs, ¡uld6 snd ñorl ¡hæÊ s¡d Bsso¿iåt8d oqui¡.En{ 6.2t C¡slm ss¿lclìers snd æntsh¡eÉ 5,26 Wçil heed @nñeqtion! ¡[d llt cq(¡pr¡9n( b þ€ lñSlalìad lñ or oo wll of or lhe plwdt6lor u!ð In ønnøt]m wllh l6sÙng, ømplotlm qnd ôpdâtlØ of rcll 5.29 6ps¡sl or ãdded storôoo lof nud ând ch€m¡cåls õ.30 Caiîohead, APIæriß, to 6lom ¡ofhêt 5hilo lo¡lrìe blMot pEv€nteß sp¡clrÉd h subpatsgEph 4-l abovo i.3l Blo@t prgvenler leôtif,g pâtlolE¡d l68li¡g sodj@r, 5,¡2 Replræ¡ffit olBoP r!bbsr.. €lem¡ts lnd *alÊ, ilæquìrçd, qltBr l¡îiallerl t,Jt Ca¡lng fh,.¿d Prct.dm and Câting Lubdc€¡lr. 6.34 ll?S !åln¡n9 and êqu¡pffilas nwssry o.ar requißd byl¡*.

6.i6 Dlbhlñô âroud 4q ¡hd lældon, 6.¡7 Yhl.d þrrtv BOP t6tl¡¡ .¡djce. 5,16 5,39 6.10 5.{t 5.11 5.{3 5.11 õ.¡lt 5.¿€ 5,17 5.d8 6,49 5,60

tU S ù||ú bmd . 'úW A'. Pq. 2) Fom pþvkt ó by Forfls Oná'DlÊk copyfight Q 2003 liltq¡¡lioÉl Aseþt¡on ol odll¡.g Co¡t.ætqr (214) 540-8,12S ' FofilsoMoisl øm

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Fedø Apù, N3 T, EqUIPHEttl, MAIERIALS ÀNO SEñVICES IO 8E FURNISHEO SY OÊSIßI'¡ATËO PARTYI The nlrcli¡ery, equípmenl, laote, msi€rists. suÞpt¡ss, ¡fislru@ls, advìc66, and tåbor listed as fte ldlwìng ñumbered lteru. lndldihg t¡y t.ansÞort¡ils

rquiÞd lor 6!c¡ it€m unÞss olhûse ôpæitcd. shsl tE pfoviiêd at th9 wl l€lis ênd sl the exFen8¿ ol t¡è parfy hor€lo ss dctignrtêd þy s x @fk l¡ {h€ ôpproÞriale cduñû.

To Bo Prevldod BY snd Al Ìho ExPcnio Ol Itom Opsrrtor 6.1 Câllar and Ru¡wåyr ....,. x 6.2 Dllches ¡nd 9ump8 ... ... 6.3 6,4 Fwl (loëå{od Full li¡€e (lenqth,-9llalg9!U_.-_l

x

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,_ 6.6 Wst6r al Effe. ¡ndüding l€quírd p€mils,..- s.3 Wate¡ trll, i¡cl0d¡ñg reqúìtd permls ..-...,... ... ,.. 3.7 Waterlims, lncludt00reqqired perBils 6.4 Wals ålo.s06 fsnks _-_ cpacìty (Por rlg ¡nvônto.y), . . . 6.t Pslãb,6 Mld.nd bonhd w¡l¡¡....,., . .... x Lrbq tç op€rgle mlsr well or waler pump (8lg crew onlyl . , . ... . . -. ..-,.. x 0.10 6.1t Mêtñténa^e ol ffilar wll, ¡l requìrêd. x 6.12 6.r¡ Fùel lqwgìo¡ tump....... 6.14 MsF ld e^ti¡es ¡rìd bqlers, q ñ10ß s¡d oud pumps.. ... ... ..,-. , . ... . . .

e,tõ Trsnspotulion olConl.qctô/s ploper\':

sæ P¡rlc0plr 4r!

Move oul.,.. Se t{,Ä l¡rÁ 6.16 M€l€ñãls lar "boxing jô" .ig snd deÍlck. ..... 6,'!? St 6rsl sklngeof drillÞip€ ãrd lnllællal6 âs lôlfd9i

6.18 X6lV iolnts, rubs, él€wlorô, tono6, õlipr ând BOP rsm3 ll ße wlÙ lpeciql drillpipe,, ., x e,1B O¡jll plp€ prof,.ctd3 forkellylôìnl and €acåioiñt ofdr¡ll {rip€ ruûn¡ng inside ol 6urteÉ Ca6¡ng as róquircd, lor u¡e wilh nomd skiNs ol drll F p€ -

õ,20 Dr¡ll ÉÌpe prol6toß lo¡ Këllyþnt Ê.d drill p¡Þô tunn¡íg ing'd€ ol P'oleclro¡ Cãcog 0.21 Rale ot pêMl€0on reødiñ0 der¡æ (C.¡rig r|ôot@lc)-..... ..,...., .,,.. . ... ... â,22 ç(É l€bq lq tunnúQ ênd (ænlrng Ésìû9 (Ca3i¡0 @8),.... ...-..,. . ..

0.2s x e.24 Pdtr*5ltgfôngs. ..,.,,.. x 6.25 tgydñô and p,ckup ruchina....-, ,,'...,...,...,' , ..,' €.26 Tubl¡g t@|s,. , x PMr lubiñq bng x 3.2[ C¡s g&b. ti,A €.2¡ N/A NIA N/A 0.t0 Sêüæ llg Boål ,... ... .,.,, 8.1t 6,12 €.t! ReôervÊ P¡ls......, ,. ,.

5,54 Uppcr Kelly C6k G.3ó Lowt Kellyvãlv€-..-. G.16 D¡l P¡po Soletyvalve . . x 6,J7 lnridg Bl()wt Prevanlgr. , .

G.38 Drjllino holê tor ordddng lor 6nduôlor rlpe 6.s9 ChErges. øil ot bond! lor publìc toads.. 3.10 Poíåble foilel... .... -.,,.. €.,1t Tralh RæplåcTe õ,12 ll$r{¡el¡slshô16 Slekcr {Pot rlg l¡v¡nloryl -.... .. ., . ..

0.4r Shale Shaker søærs 6.44 Mqd Cleân€r.,.... .

6,4¡ Mudlcas Sepã¡¡lo.- 6,48 1( 6.47 s,48 It_ 6.{9 ,( 6.60 6.61 Rotsling Hæd Rutlbers -........ ,... 6,62 Hydrãullc Adiustab¡ê Cboke. . I' 6,63 P¡l Voluma Tolali?et - .'- x 0.54 Cgmnuniø[oñ, lyfE 6.55 aqftllll,

6.56 Cqr$lo0 ln¡rÞitor fry prote{lrñg drillgldnq 6.67 6.66 0.é9 6.60

w S @ñß Añlú ''E Nbr A' ' Form p¡ovrdd bt Fqru Ôr'A-Drs\ copyright O 2003 !.lmaùoßlAssj¡lion of Drtl¡n9 gútrå.los (?r1l g0-042t Fórñ!OnAoisk @t..

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TlË thaþïlîo úrs. üùtl GÇ¡t€d nt ltr æ iwPontôd h $. odrtNt by lrlhonôÜ ü tr lïlll €t {i: (fl î!rË{!rloppstrilycl¡mpcsnb*h{lOFßôo.1.4, {21 Ii! Actott cl6uþ pns{bËd ln 1l CFR ô0'26o'a Egddln0 n1lår8 ÛÚ þlttlnt of hc VlslËm il'

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tda - '€¡rrba å.' âtr tl Fm prwtd€d Fm! Ôn+"Dhk t.

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EXHIBIT "C"

CONTRACTORS SPECIAL PROVISIONS

l. CÒntr€clor shâll fumísh in¡tial l8ßÞd annulãr preventeÍ element. lf th6 êlement ls damaged du€ to dsstructivê êtåmenls Inlroducêd to thê mud, glr¡pping, or 6xc¿sslve l€st¡ng, lhe Oporator åglees to fulnish I new êlemsnl.

2. Chemicål Add¡tìves to th6 mud for prevenl¡ng oxidation of the drlll strlng end hydrÞg€n sulf¡d€ scaYeng¡ng chem¡cåls to lraat the mud or drilling lluid as neceseary [o remove all lraæs ol H¡S and lo conkol orygen cûrro$ìon to bâ furn¡6hed by th€ Opôrålor.

3, Opèrslor shall fumish all labor, squipmeít and måteriäls to clean f¡g aftêr us€ otail basê mud ånd/or complellon fluid.

1, Ëxtrs cosl ta rig !p lor drill¡ng with oil þåse mud ¡nclud¡ng, but oot lim¡tod to, the coel ol pll aoveG, åleam cleeners, drip pane, mud vacs and clean¡ng materltls shall be at Oporâtor'6 èxp€nse.

5, ln¡lisl insp€cl¡ón of âll Contrscloi€ drill pipe, dr¡ll 6ollars, kelly, kellyìoinlê, vålve3, sub3 €nd I-IWDP ehâlt þe at Contrac,tófB ôxpenEo. All rspålra, replaô€ñênts rnd hruling tor repáirs will be at göntrsclofs expensê. (Thè inspoG,lion w¡ll þe (o T.H. Hill, DS1, Cstegory 3 or ¡ts equivalent).

ô. Subsequent tnspe€tions (lncludlng thê insp6ctìon el lhê end of the .lob) of åll d.lll plpè, drÍll cgllãÉ, kelly, kelly jolnts, vâlvos, suÞc ond HWoP âhall be at lhe Operstor's expêûse. All rePslõ. replâc€me¡l8 snd haullng for repair€ wlll be at Opsrator's oxpensô. (Tle ¡nspect¡on vrill b€ to T.H. þllll, 061, Category 3 0r ns squlvalent).

7. opsrålor shall fumish ell screens for ¡hale ghakeË.

8. Opârolor sh8ll fumi5h all polablê wãtðr for ÔpeËtor aûd Contr¿c1or personnel,

L Op€rator, Operatois reprÞ9entåt¡v6s snd Opsråtor's suÞoontrâ61ôr6 Êhâll supporl Côntrqcíol3 s€faty Policiss ånd Pröædures ln general and ¡n part¡culâr, w¡ll cômply vrílh âll Conhddofs p8$oñal Protecllgs oqu¡pmenl requllemênt6.

10. Operalor w¡ll b6 respons¡ble tor tho prov¡slon and ma¡rilenonce 0f aßy sile s€ptlc syslems.

11. Contrôslor will provide only one size of mud pump liners- Any addltionål sizèg ßqulr6d by OpåËtor will be provlded by Op€tâþr al Opereto/s æst,

12, Alì third pårty êqü¡pñånt rÊqulrgd to nipple upln¡ppl8 dowo BOP êqu¡pneil will bå proY¡ded and pald lor by OpeElor.

13, Thê lâte6 contaiô€d in this Contract are bassd on lhe rig lnvenlory sttached hereto. Any modlficslion ol sdd¡tion lo lhe fig râquestêd by op€rator will b€ ål Op€relor'â expensê.

14. Operator shsll test BOP equlpmênt ât inlervå|3 âô sp6c¡f¡€d in fôdê¡a¡, stat€ or loc¿l rBgulatia¡e, API Recommended Pract¡cè or every twenty-ône (21) dayswhi¿håv6¡ Inl€ry¿l ¡s more string€nt. All testing will be pêrfômed by ân ¡ndep€ndeni lesling compsny pmvldêd ðnd ps¡d for þy Operator.

16. ln åll oatós whôÞ Conhåctor's employeès (includ¡ng Contrâclôlß dir€ct, bonow6d, specjal or gtatutory employrèa) sro cov6rad by the Lou¡slana worke/o ComF€nsat¡on Acl, la. R. S. 23:1021 el soq., Oporålo¡ 6nd Coniiliat$ 0gr€g thåt åll work and operâtìonô peloûned by CoiltlÉctor snd its erhployôes pursuant to thìs agrþ€ment ste an ¡ntegrål part of and are .ssônt¡al tô lhe abillty o¡ opètátd to genôrsto Operatoie g0od3, produôts and serv¡ces- Fu¡lhermoß, Operalor ônd Contrac{or ågreé lhål Op€ralor i3 a slslutory employer of Conlräctor'á employees for purposes ot La. R, S, 23:lml (A) (3), NotwÍthstaôd¡ng Opðlsto/c stãtus as E 8lêtutory ornploy€r o¡ sÞeôisl employer (as defined in L¿, R. S. 23:1031 (C)) of Contraclor's employæs' Conttâctor 6hall rernain primariiy responslble lor ths paymeot of Lou¡sianâ Wort€/s Comp€n6allon benBfls lo its employeÊs, and shall not b€ êntitled to seek contr¡but¡oí for âny Eüch payments from opêlator.

16. Opolâtof, itr pårerìi, s0bsidlary and sí¡l¡åtrid corporatlons, a! $,¡sll s3 lhä employegs, oflcßl8 8¡d dhèclor¡ of ßsctr (cõllsoi¡úely, "ÕperEtof , is óogn¡ilnl ôl tl¡o Nåttore Dlspule R€bðlullon Prölr¡ñ and WÀh!8 lo b€coms an Etsc't¡ru Ent¡ty, ás deliildd ¡n th¿t Program, AccordlnglT, Ope$tü or¡d Nsbors lndurtrig6, lnc. ('NaboIs') hsroby agree thal Oþrator is ¡ô Elecling Entity ao lo åtl Dìr$lês betì,ve6n Opor€tor 8nd lhê prcaßnt and tormar Employoas ånd Appllmnts ol Nabor¡ purâuml lo ths Nabm Þrspute R8elutloñ Pmgrsm D0 il outranlly exlðt¡ ônd dt may be smênded from l¡me to lime, ln th8 event lh€ Prog¡am ls amendod, Nãbors agrees lo provide a copy óf lhs amendmênt{s} lo Opefâtor. Opêrâtor may w¡lhdrew this Blåclion to participatB ìn lhe Prôgrsrn ât any time by giv¡ng not¡ce ol 6uch wlthdrawâl to Ndbofs, such revoælion to be eflective w¡th respÉd to any cl6ims nol yet ¡nst¡luted ås of the dålo of revocation. Oporator undeßtands thal it is bound by lhe terms of thè Program w¡lh fèsp€ct to âll Dieputes with Nabors employess, regardleso of wh€thet Euch Oìsputê is initiated by lhe employ6o or by Operalor. Operator and Nâþars ¿cknowledg€ thãl ths Plogrâm doêg not aPply lo dlsputes b€twssn Operator ând Nabor8 and thåt ths Ptqgrâm dæs nol alter thê leÍns of any lndêmnificàt¡on agrgemenl bêlwæn them.

'17 lñ thè êv€nt Op€r€tor slecls to drlll å ¡ubsl¡tutè w€ll lt shall bê Ope¡âtorb obl¡gation tó sdvlso Qoniråclor ln wr¡ting of suóh change. Notwllhstand¡ng Operålor'å fållure to nollfy Contrgctor ôf such change, the terms of thle conkact shall apply to such subslitote well as if guch substìtul€ well werè the wêll 6pecit¡ed in Påregraph I oflhs Corìtra?t.

Exh¡bit_C_O l_oklahoma_Mây04

NABORS DRILITNG USA, LP

PACE 15OO - RIG F26

Programmable AC Electric 1500 HP Rig DRÂWWORNS: 1,500 horsepower AC drawworks featu¡¡ng regeneratlve AC b¡aklng. Dlawworks ls drlven by two (2)

800 horsepowe¡ Ac motors. Autodrill functlonality u$l¡zing AC motor.

POWER GEilERATIO'{: Thre€ (3) - caterpillar 35128 engines rated at 1'476 horsepower each, driving one (1) lGto 1365 tM gene.ator¡ for a totâl of 4,428 horsepower. AC power generatlon, Variable Frequenry Drlve (VFD) and MCC unltlzêd in a s¡ngle house,

MAST: Pyrarnld Fa* Movlng Land Rlg 152'three sectlon mast manufactured to API'¡+F speclflc¡tlon. Statlc hook loâd of 1,000,000 lbs. on 12 llnes. Mast ls rälsed and loì,vered uullzlng hydraulic cyllnders, Mast has lnþgrated top drlve r¿lls (enables top drlve to travel ln mast durlng rig move).

SUBSTRUCTUREI Py.amld hydraulically elevated $bstructure wlth 30'floor helght and 26'clear he¡ght unde¡ robry beômt, Sub*ructure ls rated for 1,00Û,000 lbs rotary load simultaneous wlth a 600,000 lbs setback load.

DRTLLER,S COIITROL; Cllmate controlled drlller's cabin prov¡des lntegrated Joystict control utlllzlng PLC technôlogy. Touch screen controls provide ståte-of-the-art monltoring, control of rlg equipment and drllllng pal"meters'

IIIUD PUMPS¡ Two (2) 1,600 horsepower mud pumps. Each powered by one (1) 1600 horsepo/rer AC rîotor, pumps are egu¡pped w¡th hydraullc liner retentlon and pump rod sys,tems,

MUDIAHKS: Three (3) tank system total côpådty app¡'oximately 1,500 BBL; four (4) 6" x 8" centrlfugðl pumps powered by 100 horsepower electric motors, 100 8BL tr¡p tânk.

SOLIDS COI{TROLI Thrce (3) Swaco Mongoose shale shakers one (l) swa@ mud cleåner with desander / desllter.

WATER STORAGE: One (l) 500 BBL water tânk,

fUELSTORAGE: one (l) 20,0æ gallon dlesel fuel tank,

TRAVEUIIG BTOCK 500 ton trâvellng block, grooved for I 3/$' dr¡ll l¡ne, TOP DR¡VE Canrlg 1250 AC, 500 ton lntegrally mounted top drlve system,

ROTARYI 37-L12" rotâry tÀble, lndependently drlven by AC motor.

ACCUMT'LATOR! Slx (6) statlon accumulator unlt wlth one (1) electric Blplex and tlvo (2) a¡r operated pumps. Unlt wlll be designed ¡n accordance wlth APt 16D. Remote panel wìll be mounted at drill floor'

BLOWOUT Annulðr: 13-5/8" x 5000 psl. PRËVENTERST Double Ramr 13-5/8" x 10,000 psl.

Shgle Ram: 13-5/8"x 10,000 psl. Manltuld: <-!16" x 3-1/16" 10,000 psl.

DRILL PIPE: As per contract.

DRILL COLIáRS! As per conuåct.

AOD. EQU¡PMEilTi Dedlcated man-rlde¡ wlnch Automated catw¿lk / pipe handllng system Varco ST-80 lron Roughneck Two (2) air operated hô¡sls 8OP Handling system Air operåted slips Robating mousehole Camera slstem lntercom system Vacuum degasær

\ Reì/Jslon 0 August

W

EXHIBIT (C'

CONTRACTORS SPECIAL PROVISIONS

1. Coilråctor åha¡l lum¡sh iôit¡Bl lestêd ennuls. prevanter €lernent. It thê olemenl lÊ damaged duE to destruslive ålêm€nts lntroduæd to ìhe mud, strlppinç, or êxceås¡ve tssl¡ng, lhe Operatot agre€s to iurnish s new êlåm€nt

2, Chom¡oat Addll¡ves to thâ mud for preve.ìling axidat¡on ôf the drlll sklng €nd hydrog€n sulflde scavengíng ch8miæls to trsst the mud or driÍl¡ng fluid as necssBary to r€mové ãll tlsæs of HzS and lo conlrol oxygen coÍoslon to b€ furñiôhed Þy the operàlor.

3, Operåtor shall lurn¡sh all labor, equipment and materials lo cleân rig ellet usê oi o¡l bâsg mgd and/or complel¡on ñu¡d.

1, Exta cgat to rìg up ior dltling with o¡l baså mud ¡n6lud¡ng, but not l¡m¡têd to, the co8t of plt goverE, rteam cleaners, drip pans, mud vac snd clean¡ng malgrlå19 shall bB at Op€ratol's sxpense.

5, ln¡tiel ¡nspoô{¡on o, ált conträdofs drill pipe, drill collars, kelly, kelly jointê, valv6s, subê and l-lwDP shall b6 at Conlaãctò¡'Ê 6xpen9ô. All rgp¿¡rÉ, replaceñèr(6 and håullng for rêpa¡ß w¡ll be at Contiactol'8 oxpen6ê- (Ths inspe6tion w¡ll bå to T.H. H¡ll, OSt, Calegory 3 or lls equivâlenl).

Þ. subsoqueñt lnspeclions (lncludlng the in6pection ât lie end of the JoÞ) of ãll d¡lll plpe, dril aoll8I8. kelly, kelly lolilÊ, vâlv6s, subê ¿nd 'reps¡rg HWDF shãll bs at lhè Operãtôl's 6xpénôâ. All rePairt. rûplâün€ñts snd houl¡ng lor wlll bê ãl Operotor'$ expÊnse. {The iñspecilon wlll b€ to T.H. lllll, 0S1, Cstegory 3 ot lls oqulvaìent)

7, Operator shall lum¡sh sll scr€ens for Ehsle shakèß.

L Op6rótor €hall tumiôh all polablo water for Operator and Coñtrsclor persönnel.

L 0p€rolar, Op€r8lor'g fepr€sentÁtives €nd Operâtods âuÞcontrac{ôf3 Êhell âupport Contractods SafÊty Pol¡oles and Proædures in gen€ral ûnd ¡n parliculâr, w¡ll comply with afl CÖntrsclo/s p€rsonal prolecllve equ¡Pment .equ¡rem6nlé,

10. Opêrâlor w¡ll be fesponsiblè lor lhe prov¡slon añd måintenånæ of any sita 8€ptic sy8l€ms.

11. conträctor w¡ll prov¡de only ons s¡zs of mud pump l¡ners. Any addiÌ¡onel si¡es r€quirêd by Opêmtor wilf bê provided by op€fa{or at operato/s cosl.

12. All thkd party equipm6ôl requked to nipplè upiûlppl€ down BoP €quipment w¡ll bâ prôvídêd and pai{, fôr by Operâlor.

13. The ratos contsined in th¡s Coßtract are bssed on the r¡g invsnìory altsched hereto. Any modllioation or addlt¡on 'lo lhê rlg iôquestéd by Opêrâtor w¡ll bå at op€rstods sxpeñse.

14. Op€.ator Êhåll tsst BOP equlpment al inlervalg aE sp€cilled in federal, ôtâte or loc€l rþgulitlons, API Recomfnended Predics ôr êvely twênly-one (21) days whichêvår ¡nlefltl is more stringánl. All leBl¡ng ì,rill b6 performed by an ¡ndrpe¡denl lesllíg comp0ny provld€d ånd ps¡d lor by Operator.

15. ln all cgses wheË Conlmclor'ô employees (¡ncluding Contrâctof6 dir€ct, borÕw6d, sp€ciâl ot åtálutory €mploy6€s) am covsrêd by lhe Louislóna Workg/s Comp€nsâtfoo Acl, La, R. S. 23:1021 o¿ soq., Operato¡ ånd Gonlrãc1ôr agree lhat ð11 wolk and operations pedoínêd by Contrâôtor snd íta êmployôâê purÊuânt to this agreemÊnl sre an inlegral parl ol ând afe essêntial to thê abllity of Operå(or to gen€rstè Operåtofs goo&,

I

pioduclg and eerv¡cê$. Furthemore, Operalor and Contrac{or ågreo thal Operator is slålulory employor ol Contractor's employæs for purposes ol Lã. R. 6. 23:1061 (A) (3), Notw¡thstand¡ng Op€fålo/6 slatus ag ¡ Blstutory êmployer or spêc¡al smploysr (as defined ¡n La. R, S. 23:1031 (C)) of Corìtractor's employæs, Contractor shâll'rêmain prímarily æEponslbls for lhe paymenf of Lou¡s¡6ns Work€/s Corflp€nsstion benellts lo its êmployeos, and 6hall not b6 sntllled io seek conlribul¡on for any 6uclì payrnBnls trom Opêratol,

10, OpÕrôtor, ¡ls psranl, sub$ßlary a¡d stûllslod ctnorallonr, as w6ll Ér ths smployêèå. ofl¡@r8 6nd dlructorð ol Ê¡ch (c{lléËtlv€ly. "Oporslo'.} ¡r cú0ni¡ãnl of lhå Naborr D¡sÞuto flsßolrrüon Prggrsm 8nd wlsñ68 lo boþooe an Elèdtlng.Ënlly, i9 dqfinsd h ifrst Piog¡am. A0çordlngly, Opor0lor ¿nd Nåbors lndustllo¡, lno, fNabors") lËraby agreo that O'por¡toi lÊ arì El€qting Enl¡ly ôr tô Êll Ci¡$putås betwoân Opsralor end lhó p€sênt snd loriï¿r Emptoy6e0 gnd Appticgnlc of Nslroß pursusnl to lhs Nalrors Diopüle Ro8ottJtlon ProgÍåm !s ll ænsnlly exi¡lt and ao may be amôodðd fiom lirng la timo. ltì the evertt the Frogrüm lÊ amåndôd, Nabora ogreoa to provido ê copy ol tht ãmôndmoflt{a) to Opomtor. Opsr8tor ñay withdr€w this sloclion lo psrlicipålÊ ¡n the Progfsrn ål 8ny t¡me by glvlng nollÇe ol such wilhdrawal tÒ l{åboß, FUch r€vocåtion lo bs ðtlocllve wlth rtsPsc,l to any clâlm6 not yel InatitutÉd os of lhg date of revocstion. Oporútor urdontsnds thâl lt ls bound by lh€ lorms of th8 Progrom i,v¡lh respect lo €ll Dispules with Nabors GmployßBs, r€gardloss ol whsthsr suoh Oi$pulg ls lñlüÊlod lry lhð employee or by Operstor. Operalor and l\laborE 6êkûôì¡rltdgo th¡t.thê P.ogfam doos nôt âf¡ttly lo dlßWlee b€tw€€n Operator and Nabors and that thé Progråm dgct nôt âltår lhâ leñir ol any tndâmðlncäÛon iqrþontonl bå{wæn thèrn.

1t ln the ev€nl Operator åtsë.tr to dflll a súÞrtlluls wrll lt ehsll bs Operatol€ obllgãtion to sdvlsÊ Contraclor ln writlng of such change. Noiwlllsl,ôndlng Oporaþfr fâlluro tg notlfy Conlr€ëlor of sugh chånge, the l3rms ot this ConlrEst 6hall apply to slrch ¡ubsl¡tutô wôll a6 il BUc,h substiluls well weÊ the wêll specilîed tn Pårågrsph 1 ol lhg Õonlract.

Exhibir-c-01-oklahoma-Ma¡o4 EXHIBIT"I-E"

{lll) APPLICATION FOR HOURLY ANÚ DAILY EMPLOVIiIHT

icant fljlust Read And Veri W¡th re ldeclare that lho slatomonls oontalned ln lhls appllcatlon are correcl and undsrstand lhqt wllhholdlng lnformallon ol makhg a falsa statement ln this appllcatlon and lnformatlon submltted thsrewlth or at any tim-o during the appllcallon .and pre-employmonl proooss wlll bs the basis lor my appilcation not lo bo consldered añd/or dlgmlssal. I aulhorize all employers, educatore and othe¡ flrms or person namod hsreln to provlde lhe Company wllh lnlormatlon regardlng my educallon, employmont arrd medlial hialory and relaaeo dll such lndlvlduals 0r en$leg.Jrom all llabllily lot any damages lhat may reeult from luinlshfng lnformetlon rogardlng me, /;,(¿/4 - lNlTlALS

I undsrstand thât this appllcatlon dÕos not obllgÊte the company to offer me employment or to hlre me, I further undersland that ll I am ernployed by the Company, my employment will be on an "at will' basis and may be termlnatod by the Company at any llma wllh ot wlthout causo or notlce, ll I am employed I understand that lwlll woar the presorlbed pereonal equípm ablde by all Federal, Stato and Company proceduros and regulatlons whlle worklng the .INITIALS

I acknowledge lhâl a oopy ol lho Company'c Dlspute Resolutlon Program was availabls for my review ql the locatlon whoro I eubmlttsd thlË appllcatlon. I acknowlodgo and undsrdtand lhat t sm requlred ló adhsre lo th6 Dlspute Reeolul¡on Program and'its requkemsnÞ lor sriumlsslon of all olalms to a proäess that may include mediatlon and/or arblüatlon ünd lhat ll I rsfuso to slgn below that my appllcallon wllt not be conslilarsd for omploymenl. I furlher undo¡sland thal rny employment appllcation subfilsslon wfih the Company constltutÊs my accgpjg4ço ol the terms ol lhls provision ag a oondltlon ol employment coneldoratton. <í4.__. tNtTtALs

ll I qm hlred, I hereby agree lo parl¡cþats ln lhe Company's Payroll Dkect Doposit System for payment ol salaried/hourly employees and complgjojllry Payroll Dlrect Doposil Authoflzation Fofm to implomonl tho Peyroll Dlroot Deposlt System tor ny pay.,fl//-'I*-

tNtTtALS

'lhls appllcatlon wlllbe considered actlve for thtñy (30) days.

2',)

HR.105 (0r107/11)

EXHIBIT "l-F"

,. i .''

c\l {ll) APPLTCAT¡ON FOR HOURLY AND DAILY EMPLOVTI;#T

Applicant Must Read And Vetif w¡rh sl I doclare that the sfatements conlalnsd in lhis application a¡,e cor¡ecl and understand that withholding lnlormalion or making a lalse slalemenl in this application and lnlolmation submilled therowilh or aJ any líme dullng tho applicatloìr and pre-employrnent procêês wlll be the basle for my applicallon nol lo be considered and/or dismlssal, I authorize all omployers, educators and othsr firms or person named h6reln to provlde the Company w1h lnlormãtlon ragardlng my ilducation, employment and medlcal history and release all such individuals or *, fi!,|I,,T,Åi, any damases thal may resull rrom furnishins informalíon resardins me.

"lgärå"-

'employeddoes not obligale the I understand that this appl¡cation company lq oller mo employment ql]g hirg me.. I lunhor understand thaì if I ani by the Company, rny employment will be on an "al will" basls and may be terrninaledbytheCompany'atâny'tiñrewithorwithoutcauseotnolice. lf lamemployed.l underslandthat,lwill wear thç preäcrlbed pel'sorial protective equipment arldrwill abide by all Federal, Slate and Company procedures and rogulations while working for the Company - INITIALS - A.i Y -

I acknowledgo lhål â copy of the Cornpany's Dls¡:ulo Resolution Frograrr was avallablE lor my rovlaw at th€ locátton wnsie I suþmiltdd lhis application,' t acknowladgs and undorstand that I am roquired t0 adhsro lo lho Dlsputo Reeolutlon Program and'ils roquirenìents 'l lôl eubmiesiolt ol all olalms fo a process that may inch¡cle rneãlation and/or afi¡[rãtlon and thal lf toluse to sign bolol lhat my applicatìon wlll not bo oonsidsrsd for employmont. I furthsr undêt6tand thal my omplgyment appllcallon eubmlsslon wllh ths Company conslitutes my acdenía¡ce of tho torms ol thls provisiorl as a Condlllon of employmont conslderatlon, Aà\ \q -tNrrrALs J ll I am hlred, I hereby agrÊe to parliclpate in thê Cômpany's Payroll Direct Deposit System lor payrnonl of salaried/hourly employees and complRlq lho Payroll Direcl Deposit Authorization Form to implemsnl the PaYroll Direct Deposit System lor my pay, _Hd\Íl ,INITIALS

This applícation will be considered active for thirty (30) days, ! t'1

o4Í:M",k;h.äþr l"lt¿- \5 Date

Hñ.l0s (01/07/11)

EXHIBIT ''I.G''

NOTI.CE TO ÁPPLTC,{NTS REçARD-INC DìSpulltl ÅI:SÖLU1 IÕN PROGRAM ând oficlent êppl¡cants crr omplôYeos snd lhe Compâny. this tho oafliosl posslbl6 mó6n¡ ol rssolvlng sny dlsPlJtos thoy may hâvo q:porlunlty.

Acopyolrh6Dlrpt(0RogolL(ionProçf8m¡sl]elngpfov¡dodlÔryourrsvl6w,.lfånyEppflcântlsllslo-åc.kltowl€dg6Dfìdsgl.so i"ìñäîiogiim, tiroy w¡t not ¡" mnsiioiòd ràr otå¡iroymer,t. ì li6 âcknowlodgonioni ìs provlded þelo ¡ lor your slgnRlura. I lÌtâv€ !€âr| âliowof.l thsopËrtunitytÊfsviov{lie Nshols oisFUto Rssolt¡líon Progratrt.

Fro9râm 2.

lurlhðl laftns of

ay r"Q

_\J .-1 Xik¿å" L¿- G C,.(

oJ .t ti r'{ rlylå@,ulM¡lJ¡.Iilttis f)ïl coNFI-IC',¡'()S : t:l

llt prqrrsûÞ¡ l0 pfopor(¡ona s Àil10 s omploâdos Êl mod¡{) rnér i L'to quêpudioraf I [6n8r R kavós do un prouuso ilu lcllrlonto uf¡â fo[oluclón

Si un .trrntncc,noltroßorìloâvl*o8olonnlántrrtrc¡rdr¡rerrrtc¡uilf¡dolPfo0rârrtsdoRÐgôluclÓ|1dsConflicto$psrÊsu.rov¡ßlÓn ;ilì;i,ü;Ë'.*,*;;i;ä iil;i"-ìü åìäà io"¡¡o y no n'ln do ãcuorco cDn ol Prq,râms, no sorå consl'lortdo pâr$ €l ãli"iüljlisü ö;ìiiñ;ãtö""oïo ioiirrtiiuäã,:oìer6ddo roeil,crd0 os1û notilloaclón coä respecto al Prc,graÍ¡s do rosoluc¡ón d0 bnlllcloú p'orr,'cluo uslod lQ f|tttlo oll sJrÍilril'Jflfl $ L\{ìtin(li¡cion

3. Se m0 h¿ potmltldo rov¡ctr sl Pro{}l8rnll ({o Roâolución do conll¡ctÕs rJs Nollor3'

4 Ccil rnl lirfilÍ Ir

{xa$hlst Bdg 6nplog,

NÕmÞre o9l A9Plfalì(9 llrma gslAaPlm¡r€

Fèêhá

t.rR- 106

EMPLOYEE ÄCKNOTVLpDGEMENT coNcERNINGNÁ39ß,SDISPUTE,RESO.L.pTIONEROCRAM I haw received ¿ copy of the Nabors Dispute Resolution Program'

I acknowledge lhat the Employee Dispute Resolution Program is not n conb¡ct of employment between the Cornpany *ä mc for *y þ."in. time period ond does not alts¡ the employmcnt-at-will reldionship, The ornflãymentrelationship bãtwoen the Company and all cmptoyeeg is based on mututt oonsent snd oan bc tsrminated at any time, either by myself or the conrpany, wilhout notico or rcquirentent of cause.

I understand that nothing contained in the Enrployee Dispute Rosolution llogram is intonded to violate or restrict any rights ofemployees grraranbed þ stalc or federal laws.

By my signohle below, I acknowledgo and wrderst¿nd that I am required fo adhere to the Dispute lìosoh¡tion p-grã* alndits re quircment for submiision of disputes to a procoss that may include mediation ¡nd/or atbitt¿tion, I flúÍer undershnd Urut my crnployrnent or continusd êmploymcnt with tha Company constitutcs nìy ocoeptance of the terms of this provision as a condi{ion of my employment or oontinucd €rnp¡oyment'

,áì,4*2,Æ^., ffirne õf Bm-pioyce (Print) Employc*

/--7-/3 Dats

FORMULARTO ACUSANDO RECIBO POR PARTE DEL EMPLEADO

Por la presento declaro que ho rooibido r.rna copia del texto del kograma de Resoluoión de Disputas de Nabors.

Yo eotiendo que el Programa de Resolución de Disputas de Nabots no representa rxr contråto de entploo enke la Compaf,ir y mi persona por un periodo dc tiempo ospec{fioo y no modihca Io relación de empleo a voluntad. La relación de cmpleo enüe la Compafrla y todos los ompleados está basod¡ e¡¡ un consentimicnto mutuo y pwde qucdar cesørte en cualquier momento, ya Beâ por mi parte o por pûrte do la Compafflû, sin ûviso prev¡o o prosentaoiónde causa.

Yo comprendo que ninguna parte dol contenido del Prograrua de Rcsoluoión de Dispulas tiene la intención expresa de violar o limitn¡ los derechos de los cmpleados garantizados por cl cstado o las loycs foderales.

Con mi fitma reoonozco y ontiendo que se requiore que yo curnplo oon el Prograrna de Resolución dc Disputas y el requisito de someter cualquíc,r disputa a un proooso quo pudieta inclui¡ lo mediación y/o el arbikaje. Adioionalmonte, comprendo que mi ønpleo prcsearte o futruo con la Compafüa rep,rcsenta mi ¡eaonooimiento expreso de los términos de esta disposición conro condioión de rni empleo pfesente o fi¡turo,

Nombre del Empleado (Leba do ImpreotaÀ{olde) Firnra del Empleodo

Fecha IFGTA¡N ¡N Eù,ÍPLOYEE SERVTCE FILEì

TESTE FORMULARIO DBBF,RÁ, SER COLOCADO tsN EL ARCHWOÐET, EMPLEADOI

EXHIBIT "l-H"

I)MPI.O YEE ACKNO WLEI) G DMlrlNT CONCEIINING NABORS DISP UTIT IIES OLU]'ION PRQGI{ÅI\4 I havo recejved o copy of tho Nabors I)isputc Resolutiolr Prugraln,

I acknowledge thst ¡hc Ernp{oy*c Dispu(e Rcsolution l\'ogranr is nof a cÕntr$cl of cmplayntenl betwcen the 'fhc Compa¡y on-,1 ,n" for auy rpuoiRr iimc pcriotl arlr] does not flller the cnrployrnent-flt-will rclationsltip, employment relationshi¡r bclwcen the Comptny rurd all øntployccs is b*sed on ntutual crlnsenl a¡rd oan hc termiuatetl at âny lilne! eílhcr by rnyselfor the Conrpany, wilhout noiioe or tequircnretrl ôfcâulic.

Iu¡rderstand lhal nollting conl¿rined ín the ìi.nr¡;l<ryec Di¡iputc Rcsolution Pt<rgr*nr is intendsd to Y¡olatc or ¡esiLicf any right: ofcmployccs gutranlced by slaLe or lcder¡l laws'

l3y ¡ty signnlurc bclow, I ackncwlcdge ¡n¡l undcrstand th¡t I irnr r'equirecf to adhcrc lo the Dispt¡lc R¿solt¡lil¡rl ïrogrãnr ancl it.s requir.crncnt f'or.$ubnìission olrlisputes tô a lJrocess 1ììal tüay inölurie rnedíntiorl an(i1or atbilratit¡¡t I

(tl furthCr Understnnd thnt nry ernplOytncnt r'¡¡ continuecl enr¡rloyrrr*nl wi¡h the (-'nlllparry cQllsl¡[u(cr rry i{cctÍrlâlìct the leruts olilris provision as n co¡tlilit¡tr olnty entploylÍcol of oontillrttd eml:ltyment,

Nnr*e o (Print) - ûÅ&')* tJ*cþ*=== .\ignatule of'1int¡if oycc

- *.râ-\3 Ilate

}.ORMTJLABIqéCU$4N D O III*CTB O P OIl P ÄRqE DITL EMPTIP.,AD C)

ï)

por Ìa presente declaro quc he recibido urra copin dal texto del Progrnmn de R¿solución tlc f)isptrtas d¿1.\ahors

Yo errtíendo quc el P|ograrn¡ de RcsolLlcién de l)ìsptrtas dc N'¿boLs nô repleseûfa un corìlrâto de enrplc0 cnft-c l:r (.lonlpa¡jia y riri persont por un pcrioclo dc liernpo *s¡recífico y no rlodifica la retncióll tjç er."rPleo a voluntarj. l,rr r.sl:¡clón dJ enrpieo entle la Cornpai!ía y lodos los crìlpleados ùstå bn$ada un çç¡¡sutlinrierìto nluluo y ptlód¿ "n (-lornpnñía, siri avistl ptcvirt o qì.tedât rerante en cullc¡uier tÌ1otllotlto, ya sea pof tni p:ri1c o f)or l)lrte rle ltt prescntaciól dê cüu9{ì.

Yo comprerrdc q\ta ùinguna purl{, ddl conte¡1ido dr:l 1'to¡¡r'atrtn rlc iìcsolLtciólt ds Þíspu{âs ricne la i¡rlt:lrcirttt ux¡rtcsr ¡g yi¡rlai o linlitar los dcrcchos de los crnpietdos gär'uníizados por'el estado o ltt.'i lcryos |etler:ilcs

Clou *i lil.rla fcconozoü y enticndo quc sc reqr:iele (tLte yû curtlpla ctì¡ì cI Ptogr'{,ll¡¿t <lc Resoìt:cìllrr rlc l)is¡rirlirs ¡ <i req¡¡sifo dc sorngtf.r cuâl{lu¡er dìsputa a un prooùso r.¡uc ptrdìcra inclrrir la nìtdirció¡l y/o el lrtritlalu .Âiicìonalrncntc, cornprcndo quc nri ampleo pfcsante o futuro con la Conpaflía rcpressntû lni re{"rolrocirÌticn{o cx¡rreso de los tÉl.nrinos de csla dis¡rosición uomo condìci<itr dc rnictnpleo pre$çntÈ o f'uflro.

Nornbre del Ernpleado (Letra dc lnprcnfa/Molde) l;i¡'¡r¿ dcl Êrnploado

Fecha 0rlïl'AlN IN I j\41'l,OTiì¿i S¡;lìvlcu lf lLlì

lEs't'l:) rüRMlJl,/\&1() l)I;l3trrÀ sritl c.ol.()cÁIn El'; Ë1. Àxclilv0 Þl;I' lÌMPl-lìÂlx)l

EXHIBIT "l-1"

CAUSE NO. 2014,42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANd AS NEXT FRIEND s FOR $ minors $ $ v. s HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECÏA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., ô ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/a $ THE OAKS GROUP $ 281ST ruDICIAL DISTRICT

AFFIDAVTT OF KATI-IERiNE RYAN

STATE OF TEXA.S $ $ COUNTY OX'HARRIS $

Before me, the undersignecl notary, on this day personally appearecl Katherine Ryan,lhe affiant, a porson whose identity is knovr'n to me. After I adrninisterecl an oath to affiant, the affiant testified:

i "My name is Katheline Ryan. I am over 18 yeats of age; of sound rnincl, and capable of making this affidavit. The facts statecl in this affidavit are within nry pelsonal knowledge and are true and coilect.

2. I am an in house attorney for Penn Virginia Corporatìon, Penn Vilginia Cotporation is the palent colnpany to Penn Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC (collectively, "Penn Virginia").

J In my capacity as in house attonrey, Iam familial with Penn Virginia's corporate structurc and the relationship of its vatious subsidiaries and affiliatecl companies. I am also farniliar with the Nabors Dispute Resolution Program ("DRP").

4. As evidence of Pem Virginia's intent that it participate in the DRP, on September 23, 2008, Perur Virginìa Oil & Gas, L.P., on behalf of itselt its patent, subsidiary, an<[ affiliated corpomtions agreed to be bound by the DRP as an "Electing Entity" pnrsuant to the "Contractors Special Provisions" containecl in the Inteurational Association of Drilling Contractors ("IADC") Drilling Contract between it anclNabors Drilling USA LP. ' A,true and cor:rect copy of the IADC Contract is attached in its entirety to my aff,rclavit as

EXHIBIT "2"

Exhibit.l-8. Tlre Contractors Special Plovisions portion has been pulled out for'refelence and is attached as Exhibit 1-C.

5 As furtlier evidence of Penn Virginia's intent that it participate in tlre DRP, on September 8, 2010, Penn Virginia MC Energ¡ LLC, on behalf of itself, its parcnt, subsidiary, and affiliated corpomtions agreed to be bound by the DRP as an "Electing Entity" pursuant to the "Contractors Special Provisions" contaitted in the International Association of Dritling Contractors ("IADC') Drillirig Contract between it ancl Nabors Drilling USA LP. A true and correct copy of the IADC Contract is attached in its entirety !o my afficlavit as Exhibit I -D. Tlie Contractors Special Provisiotts portion has been pulled out for referetrce ancl is attached as Exhibit 1-E.

6. As an "Electing Entity," Penu Virginia is recluired to resolve disputes rvitir any past or present ernployee(s) or applicant(s) of Nabors Indnstries, Ins. or its subsidiaries in accotclance \4,itli the DR-P,

7 At all times relçvant to this matter, Penn Virginia was engaged in interstate conlmel'ce as it is irr the business of producing oil and gas lesources in both Texas and other states of the United States.o'

FURTHER AFFIANT SAYETH NOT

Katheline

Swom to ancl subscribed before me by Katherine Ryan on the ll <iay of Jture, 2015

VIRGINIA E $ILVËH

ffi ¡IOTAf,Y PUBIIO, O?AId OF TñXAT MY çOlìlríl0BlOH EXPIRE g $EFT,3,2018 in anci for My Commission expircs:

l'r ,,'- sr,o' , State ofTexas

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY ANd AS NEXT FRIEND $ FoR $ , minors $ $ v $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGTNIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ THE OAKS GROUP $ 28IST JUDICIAL DISTRICT

ORDER ON DEFENDANTS, PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGINIA OIL & GAS GP. LLC'S MOTION TO COMPEL ARBITRATION AND TO ABATE

On the day of 2015, the Court considered Defendants Penn

Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC's Motion to Compel Arbitration

and to Abate, pending such arbitration. After considering the motion, the Court GRANTS

Defendants Penn Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP, LLC's Motion to

Compel Arbitration and to Abate.

Therefore, Plaintiffl Alfredo "Freddie" De La Garza,Individually and as Next Friend of

and Intervenor, John Paul "J.P." Adame,

Individually and as Next Friend of

, are ORDERED to arbitrate their claims against Penn Virginia Oil & Gas, L.P.

and Penn Virginia Oil & Gas GP, LLC in accordance with the Nabors Dispute Resolution

Program.

It is further ORDERED that this case shall be ABATED until the resolution of such

arbitration.

PRESIDING ruDGE

f-l tPt¿o /)ßß cAusE No.2014-42519 ü

ALFREDO DE LA GARZA, s IN TI{E DISTRICT COURT OF INDMDUALLY and AS ¡IEXT FRIEND $ F'OR $ mlnors $

s

v $ HÅRRIS $ PEh¡NVIRGINIA OIL & GAS, L.P., PENN $ VIRGINTA OIL & GAS GP LLC, $ MIKE FERGUSON, TRrI'ECTA OILFTELI) $ SERVICES,LLC, CUDD PRESSURE $ C0NTROL,INC., ROYWELL $ DISTRICT SERVICES, INC.' and OAKS PERSONF{EL $ SERVICES,INC. d/b/a TIIE OAKS GROUP $

ORDER DET\TYING DEF.ENDA}ITS, PENN oIL & GAS,L.P. AND PEI\N VIRGIMA OIL & GAS GP LLC'S MOTION ARBITRATION A}ID TO

on t# J day ofS 2015, came to be considered Defendants, Penn

Virginia OiI & Gas, L.P. and Oil & Gas GP LLC's Motion to Compel Arbitration

and to Abate. After and hearing the arguments of counsel, this Court is of

the opinion that the beDENIED,

F'HU, Ð Vt-

Chrís Daniel SIGNED this day of 2015 District Clerk

EÞ SEP I ÉE EÉo d Q'ó H. HåË TUDGE, 2 1 5T¡{ DISTRICT COURT E.a 9 oËg B Ee ãEã fiE ÉÈ Order Denying Defendants, Penn Virginia Oil & Gas, L,P. a¡ld Penn Virginia Oil & Gas GP LLC's Page I of I Motion to Compel Arbitration and to Abate

EXHIBIT ''B''

NABORS DISPUTE RESOLUTION PROGRAM ând RULES

Copies af this pamphlet are atailable ìn Spanísh, upon r e que s t, .fi'o nt a ny N ab or s s u b s idiary' s Huntan Re s ource s DePartm'e nl.

Capías de este folleto eslãn disponible en españal con solo requerirlas al Deparlamento de Recursos tr,,ú4^v^. ã- ^.,^l-"'iâ- ^",L"i'l:^-ì^ ,l^ ^l^l^^-"

EXHIBIT "C"

THE i BORS DISPUTE RESOLUTION P] GRAM

1. Purpose and Construction

The Program is designed to plovide a mçans for the qnick, fair, accessible, and inexpensive resolutipn of Disputes between the Company and the Company's present and fonner Employees and Applicants for employment, reiated to or arising out of a çurrent, former or potential employment relationship with the Company. The Program is intended to create an exslusive procedural mechanism for the final resolution of all Disputes failing within its terms. It is not intended sither to abridge or enlarge substantive rights available ünder applicable law. The Progran: contactually modifies the "at-will" ernploymefi felationship between- *re eompany -and its Employeeso but only to the extent expressly stated in the Program. The Progum should be interpreted irr accordance with these purposes.

2, Definitions

A, "AAA'' ftleans the American Arbiuation Association. B. '{JAlvfS" rneans Judicial Arbitration and Mediation Services.

C, The 'oAct" means the Federal Arbitration Act, 9 U.S.C.$1, ct seq., as amended from time to fime.

D. "Company" means Sponsor and every direct or indirecl subsidiary (whether a corporation, limited liability company, company partnership or other legal entity) of Sponsor, any Electing Entity, any entity or person alleged to have joint and several liability concerning any Dispute, and all of their directors, officers, employees, and agents, every plan ofbenefits , whether or not tax-exempt, established or main' tained by any such entity, the fiduciaries, agents and employees ofall such p1ans, and the successors and assígns ofall such entities, plans and persons; provided , lrowever, that in the case of an Electing Entity, "Company" shall include the Electing Entity only to the extent provided in the Electing Entity's agreement to be bound by the Program.

E. "Dispute" means all legal and equitable claims, denunds, and coñroversies, of q'hatever nature ot kind, whether in contract, tort, under statute or regulation , ôr some other law, between persons bound by the Program or by an agreement to resolve Disputes jer the Prograrn, or between a person i :rd by the Program and a person or entity otherwise entitled 1o its benefits, includi¡:g, but not limited to, any matters with respect tor

1. this Program;

2. the employrnent or potential reernployment of an Employee, including {he terms, conditions, or termination of such employment with the Company;

3. employee benefïts or incidents of employment with the Company;

4: any oûrer matter related -to or conceïling-the relationship between the Employee and the Company including, by way of example and without limitation, allegations of; discrimination based on race, sex, religion, national origin, age, vçteran status or disability; sexual or other kinds of harassmenf; workers' compensalion retaliatiorr ; defamation; infliction of emotiorral distress, antiilust claim conceming wages or otherwise, or status, claim or membership with regard to any employee benefit plan;

5, an Applicant's application for employment and the Company's aetions and decisions regarding sucli application; and

6. any personal injury allegedly incuned in or about a Conrpany workplace or in the courss and scope of an Employee's employment,

"Dispute" includcs all such matters regardless of when the events on which they are based occuned, including nrallers based on events occurring before the Employee becarne subject to this Program (so long as such disputes were not previously asserted in a judicial forum) or after termination of the employment relationship.

F-. "Electing Entity" means any legal entity that has agreed to be bound by the Program as provided herein.

G. "Employee" means any person who is or has been in the employment of the Company on or after the effective date of this Frograrn, whethcr or not etnployed at the time a claim is brought with respect to a Dispute, residing in the United States, or othçnryise subject to

: :

1a\4/s ofthe United States or any state, ricipality, or other political subdivision of the Uniteo States'

H. "Appiicant" nreans any person who is seeking or has sought employment wilh the Company after the effective date of this Progam.

i. "Party" nleans, with respect to a particular Dispute, afieoted persons and/or entities bound by this Program,

J. '?rogramo' means this Nabors Dispute Resolution Program, as amended from time to time.

ooRules"

K. means the Nabors Dispute Resolution Rules, . ,as.amended from fime to linre, which- are applicable tp rnediation and arbitration,

L. 'osponsor" means Nabors Induslries, lno., a Delaware corporation.

3. Nameo Application and Coverage

A. The Progmm slrall be refened to as fhe "Nabors Dispuie Resolution Prograrn." Alternatively, it may be refened to as the "Dispute Resolution Prbgram,"

B. Unlil revoked by Sponsor pr¡rsuanl to this Program, this Program applies to and binds the Company, each Employee and Applicanl and the heirs, beneficiaries and assigns of arry such person or entity; provided, however, that this Program shall not apply to aly Ernployee in a unit of Employees represented by a labor organization, or to fhe Cornpany with respect to such employees, except to the extent permitted in an applicable collective bargaining agreement or lawfully imposed by the Company when no collective bargaining agreement is in effeci.

C. Except as provided for herein, this Program applies to any Dispute.

D. Notwithstanding anything to the toûtraxy in this Progrârn, the Program does not apply to claims for workers' conrpensation benefits or unemployment compensation benefits.

E. Mediation and arbitration are only available for Disputes involving legally þr'otected rights.

F twithsta¡ding any other provision 'eof, any court with jurisdiction over the Parties may issue any injunctive orders (including prelinrinary iqiunctions) if the necessary legal and equitable requirements rxrder applicable iaw are met pending the institution of proceedings under the Program. Furlhermore, an aotion under The Limitation of Ship Owners Liability Act,46 U.S^C. $$181-189, shall not be subject to this Program.

4. Resolution of Disputcs

All Disputes not otherwise settled by the Pafies shall be finally and conclusively resolved under this Program and the Rules,

5. No Retaliation

No employee shall be subject to any form of discipline or retaliation for initiating or participating in good faith in any procsss or proceeding under this Program.

6, Amendment

A. This Program may be amended by Sponsor at any time by giving at least 10 days' notice to cuffent Employees. I{owever, no amendment shall apply to a Dispute fbr which a proceeding has been initiated pursuant to the Rules, unless otherwise agreed.

B. Sporrsor may arnend the Rules at any tirne by serving notice of the amendments on AAA alrd JAMS. However, no amendment of the Rules shall apply to a Dispute for which a proceeding has been initiated pursuant to the Rules unless otherwise agreed.

7. Termination

This Program may be terminated by Sporrsor at any tirne by giving at least 10 days'notice of termination to current Ëmployees, However, tennination shall no1 be effective as to Disputes for which a proceeding has been initiæed pursuant to the Rules prior to the date ôf termination unless o{herwise agreed.

8. Àpplicable Law

A. The Act shall apply to this Program, the Rules, and any proceedings under the Program or the Rules, including any actions to oompelo enf.orce, vacate or confirrn proceedings, awards, orders of an arbitrator, or settlements under the Progtam or the Rules.

B. , ì arbitrations held pursuant to this Pro¡ n shall be convened as near as possible to the worksite where the events in dispute occurred if Nabors contínues to perform work at that location. Otherwise the albitration will occur at the place most convenient for the majority of the wituresses.

C. Other than as expressly provided herein, or in the Rules, the substantive legal rights, remedies, and defenses of all Parties are preserved, In the case of arbitration, the arbitrator shall have the authority to determine the applícable law and to order any and all reliet legal or equitable, which a Party could obtain from a court ofcompetentjuiisdiction on the basis of the claims made in the proceeding.

D. Other than as expressly provided herein, or in the Rules, the Program shall not be construed to grant additional substantive, legal, or contactual rights, remedies or defenses which would not be applied by a court of competent jurisdiction in the absence of the Program.

E. Notwithstanding the provisions of the preceding subsection , in any proceeding before an arbitrator, the arbitrator, in his or her discretion, may allow a prevailing Empioyee or Applicant a reasonable attomey's fee as part of the award. The discreti<x to allow an award of fees under this subsection is in addition to ary discretion, dght or power which the arbitrator may have under applicable law. If tlie arbitrator awa¡ds attorney fees without authorization for such an awæd by statute or contract, such award will be limited ro $2,500.00.

9. Admìnistratìve Proceedings

A. This Program shall apply to a Dispute pending before any local, state or federal administmtive body or court unless prohibited by law.

B, Partioipalion in any aclministrative or judicial proceeding by the Company shall not affect the applicability of the Program to any such Dispute upon termination of the administlative or judicial proceedings. A finding, recommendation or decision by an administrative body on the merits of a Dispute sirall have the same legal weight or effect under the Program as it would in a court of competent jurisdiction , 10. Exq ive Rcmedy Proceedings under the Program shall be the exclusive, final and binding method by which Disputes are resolved'

11. Electing Entities

A. Corporations or other legal entitiesn not otherwise Parties, may elect to be bound by this Program by wriften agreenent with Sponsor.

B. Election may be made only as to some types of Disputes, or only as to some persons, in the discretion of Electing Entity.

12, Effegtivg D.{e

The Effective Date of this Program shall be April 15, 240r.

13. Severability

The terms of this Program and the Rules are severable. The invalidity or unenforceability of any provision there' in shall not affect the application of any other provision. 'Where possible, consistent with the purposes of the Progran¡ any otherwise invalid provision of the Program or the Rules may be reformed and, as refomed, eflforced.

14. ,A,ssenf

Ëmployment or continued employment after the Eff'eotive Date of this Program constitutes consent by both llre Ernployee and the Company to be bound by this Program, both duling the employment and after tennination of employment. Submission of an application, regaldless of forn, for employrnent oonstitutes consent by both the Applicant and the Company to be bound by this Program'

NABORS DISPUTE RESOLUTION RULES

l. Definitions

All definitions inoluded in the Nabors Dispute Resolulion Program apply to lhese Rules.

Z. Application

A. If dif,ferent rules are applicable to a specific class of Disputes, and have been adopted by Sponsor and served on AAA or JAMS, these Rules shall not apply to such class of Ðisputes.

B. : rse Rules apply in the form existingt the time proceedings are initiated under them.

C. To the extent consistent with these Rules, the Employmenf Dispute Resolution Rules of AAA or JAMS also apply to ail proceedings govemed by these Rules.

3. Initíation of fhe Process

A. A Party may initiate proceedings under these Rules at any time, subject to any defenses including those applicable to the timeliness of the claim, including limitations aud laches,

- *ts ; A Party may initiate proceedings'by serving a -written requgst to initiate proceedings on AAAor JAMS, and tendering the appropriate administrative fee.

C, Copies of the request shall be served on all other Parties to the Dispute by AAAor JAMS. The request shall describe the nafure of the Dispute, the amount involved, if any, the remedy sought, and the proceeding locale requested.

D. Proceedings may also be iniriated by an Employee or Applicant by serving a wittcn request to initiate proceedings on the Companyns Dispute Resolution Program Administrator, In such a case, the Company shall promptly forward any properiy served request it has received 1o AAA or JAMS.

E, Parlies against whom a claim is assertêd shall file an answering statement within 2l days of receiving notice of intent to arbitrate or a specification of claims, s'hich shall include any counterclaims and any rcquest that the arbitrator (if any) prepare a statement of reasons for the award.

4. Administrative Conference

AAA or JAMS shall convene an administrative confelence as soon as possible after receipt of the answering statement or after expiration of the time for filing an answering statement if one has not been filed. The conference may be held in person or by telepho:re. At the conference, AAA or JAMS will detelmine whether the Parties are in agreenent on a mefhod to resolve the f)ispute. If the Parlies are in agreement, AAA or JAMS will implerneut the procedure in accordance with their rules upon payment of any applicable fee, If the Parties cannot agree, or if the

Par, have previously attempted and failed i :solve the Dispute by mediation or anothet nonbinding mechanism, the Dispute shall be a¡bitrated under these Rules.

5. Appointment of Arbitrator

Immediately after ¡rayrnerrt of the a¡bit¡ation fee, AAA or JAMS shall simultaneously send each Party an identical list of names of persons chosen û'om a panel of qualified arbitrators which AAAor JAMS shall select and maintain. Êacl: Party to the Dispute shall have fourteen (14) days ñ'om thc transmittal date to strike any names objeoted to, nunber the remaitríng names iu order of preference, and return the list to AAAor JAMS. If a Party'does not retutn the list within the tirne specified, all persons therein shall be deemed acceptable; .-lil'om'anlotrg the ¡:emons who have been approved on both lists, and in accordance with the order of mutual preference, AAAor JAMS shall invite the acceptance ofthe a¡bitrator or arbitrators to serve. In those cases where more than $2,0û0,000 is ilt controversy, either Party shall have the right to require that the arbitration proceed before a three member panel rather ûran a sirrgle arbitralor. The Party who elects for a panel in these circumstances shall notiff the other Parties during the administrative conference desuibed in Section 4 of the Program. Any Party sliall have the right to strike one list of arbitrators in its entirety, When a Party exercises this right, AAA or JAMS shall issue a new list of a¡'bitrators consistent with the above procedures.

6. Qualifications of the Arbitrator

No person shall serve as an arbitrator in any matter in which that person has any linancial or personal interest. Prìor to accepting appointment, the prospective arbitrator shall disclose any circumstanoe likely to prevent a prompt hearing or creale a presumption of bias. Upon receipt of such infomration fronr the arbitrator or any othel'source, AAA or JAMS will either replace thât person or communicate the information to the Parties for comnrent. Thereafter, AAÂor JAMS may disqualify that person, and its decision shall be conclusive.

7, Vacancies

If a vacancy occurs for any reason or if an appointed arbitrator is ulable to serve promptly, the appoùrtment procedure in Section 5 shall apply to the selection of a subslitute atbitratol,

8. Dai Iime and Place of Hearings

A. The arbitrator shall set the date, tirne and place of any proceeding pursuant to the requirements of Section 88 of the Program.

B. Notice of aay hearing shall be given at least ten (10)

days in advance, unless the arbitrator determines or the Parties agree that a shorter time is necessâry,

C. The arbitrator shall make every effort, without unduly incurring expensg to acc¿mmodate the Employee or Applicant in the selection of a proceeding location.

9. Conferences

At the request of AAA or JAMS, or of a Party or on lte initiative of the a¡bitratot, the arbitrator or AAA or JAMS may notice and hold conferences for the discussion and determination of any rnatter which will expedite the proceeding, including:

A. venue,

B. clarification of issues,

C, determination of preliminary issues, including summary determination of dispositive legal issues,

D. discovery,

E. thc time and location of proceedings or confetences,

F. interim legal or equitable relief authorized by applicable law,

G. pre- or post-hearittg memoranda,

H. stipulations; and/or

I. any other matter of substance or procedure'

10. Mode of Hearings and Confersnces

In the discretion of the a¡bitrator or by agreement of the Parties, conferences and hearings may be conducfed by telephone or by written submission, as well as in person.

11. Pre: aring Discovery

A. On any schedule determined by the albitrator, each Party shall submit in advance the names and addresses of the witnesses it intends to produce and any documents it intends to present,

B. The arbitrator shall have discretion to determine the fom, amount and frequency of discovery by the Parties.

C. Discovery may take any form perrnitted by the Federal Rules of Civil Procedure, as amended from time to time, subject to any restrictions imposed by the arbitrator.

12. Representation

Any Party may be represented by counsel or by any other authorized representative,

13. Attendance at Hearings

The arbitrator shall rnaintain the privacy of the proceedings to the extent permitted by law Any person having a direct interest in the n:atter is entitled to attend the proceedings.

The arbitrator shall otherwise have tlre power to exclude any witness, other than a Party or other essential petson, during the testimony of any othel witness. The arbitrator shall determine whether any other person may attend the proceeding. Upon the request of any Party, the arbitrator shall exclude any wihess during the testimony of any other wibress.

14. Postponement

A. The arbitrator, for good cause shown by a Party, or on agreement of the Parties, may postpone any proceeding or conference.

B. The pendency of court proceedings related to the same matter is not good cause for posþonement.

15. Oaths

Before proceeding with tlie first hearing, each arbitrator may take an oath of office and, if required by law, shall do so. The arti.trator nray require witnesses to testifu under oath administered by any duly qualified person and, if required by law or requested by arry Païty, shall do so.

16. Ret I of Proceedings

There shall be no stenographic, audio, or video record of the proceedings unless either requested by one of the Parties or specifîed by the arbitrator The Party requesting the record shall bear the entire cost of producing the same. Copies ofthe record shall be fu¡nished to all other Parties upon request and upon paymerf of the cost of reproduction .

17. Procedure

The proceedings shall be conducted by the arbitrator in whateve¡ order and manner will rnost expeditiously permit full presentation of the evidence and arguments of " ihe Pa(ies,

18. Arbitration in the Àbsence of a Party

The arbitrator may proceed in the absence of Parties or reptesentatives who, after due notice, fail to be present or fail to obtain a postponement. Al award shall not be made solely on the default of a Party. The arbihalor shall require any Party who is plesent to submit such evidence as the arbitrator may require for the making of an award'

19. Evidcncc

A. The mbitrator shall be the sole judge of the relevancy, materiality, and admissibility of evidence offered. Conformity to legal rules of evidence shall not be necessary.

B, The a¡bitrator may subpoena wibresses or documents at the request of a Party or on the arbitrator's own initiative.

C. The arbilrator may corxider the evidence of witnesses.

by affidavit or declaration, but shali give it only such weight as the arbitrator deems appropriate after consideration of any objection made to its admission'

20. Post-Hearing Subnrissions

All documentary evidence to be considered by the albitrator shall be filed atthe hearing uuless the arbitrator finds.good cause to pen:rit a post-hearing submission. All Parties shall be afforded an oppoúunify to examine and comment on any post-hearing evidence. The arbitrator.shall pennit the filing of post-hearing brieß at ùe request of a Party and shall detemine the procedue and tirning of such filings.

21. Clc g and Rcopening of Proccedings

,,1. When the a¡bitrator is satisfied that the record is complete, including the submission of any post-hezuing briefs or documents pennitted by the arbitrator, the arbitrator shall declare the proceeding closed,

B. The proceeding may be reopened on the arbitrator's initiafive or upon application of a Party at any tirne before the award is made.

22. Waiver of Procedurcs

Aary Party who fails to object in wliting, after knowledge thaf any provision or requiremenfs of these procedures and .. - Rules have not-.been -complied with, shall.be cleemed. to have waived the riglrt to object.

23. Service of Noticss and PaPers

Any papers, notices, or process necessary or pt:oper for the initiation or continuation of any proceeding urrder these Rules (including the award of the arbitrator, any court action in comrection therewith, or the entry of judgment on an award made under these procedures) may be served on a Party by mail addressed to the Party or his or her representative at the last known address or by personal service. AAA, JAMS, the Parties, and the æbittator may also use facsimile transnission, telex, telegram, or other written forurs of elecüonic cornmunication to give any noticcs required bY these Rules.

24. Communications with the À{r{' JAMS' and the Company

A. Any Party may notice, serve or communicate with AAAby contaoting:

Regional Administrator American Arbihation Association 1001 Fannin St., Suite 1005 Houston" Texas77002 {713) 739-t302 Fax (713) 739'1742 B, Any Parfy may notice, serve or communicate with JAMS by contacting:

JAMS 345 Park Avenue, 8th Floor NewYork,NY 10154 (2t2)7s1-2704 Fax: (212) 751-4099

C y notice, seruice or communicati( with the Company will be to:

Legal Deparbnent Nabors Industries, Inc. 515 West Greens Roâd, Suite 1200 Houston, Texas 7 7 067 -4525 (281) 874-0035 Fax: (281) 775-8431

25. Communication with the Arbitrator

There shall l¡e no communication between the Parties and the arbitrator olher than.at any oral hearings or conferences . Any other oral or written communications from the parties to rhe,.arbiüator shall.be directed to the.AAA or- JAMS (and copied to the Parties) for transmission to the arbitrator, unless the Parties and the arbitrator agree otherwise .

26. TÍme of ,{ward

The award shall bc promptly made by the arbftrator, rmless otherwise agreed by the Parties or specified by applicable law, no later than thitly (30) days from the date of the closing of the proceeding or, if applicable, the closing ofa reopened proceeding.

27. Eorm of Award

the award shall be in writing and shall be signed by the arbitrator. The arbitrafor shail write a statement of reasons for the award if requested to do so in the request to initiate proceedings or in the answering statement. The award shall be executed in aly manner required by applicable law.

28. Modification of Award

On order of a court of competent jurisdiction, or on agreernent ofthe Parties, the arbitrafor shall modify any award. The albitrator rnay modify an award on fhe motion of a Party if the albihator finds that tire award, as rendered, is ambiguous or defective in form, or if the award requires an illegal or irnpossible act. These are the only circtu:r- stances under which an arbitrator shall have jurisdiction to witlrdraw or modify an award.

29. Set' nent

If the Parties se11le their Dispute during the course of the arbitration, the arbitrator may set out the terms of tlie settiement in a consent avt ard.

30. Scope of ,4.rbitrator's Authorify

The arbitrator's authorily shall be limited to the resolution of legal Disputes between the Panies, As such, the arbitrator shail be bound by and shall apply applicable law, including that related to the allocation of the bwden of proof, as well as substantive law. The albihator shall not have the authority either to abridge or enlarge substantive rights availabie under applicable law. The arbitrator may 'also'grant elnergency-or temporaf,)¡ relief that is or would be autirorized by applicable law. The arbitrator shall be bound by and shall comply with ihe provisions of the Program and Rules.

31. Judicial Proceedings snd Exclusion of Liabilify

A. Neilher AAA, JAMS, nor any arbitrator is a necessary Party in anyjudiciai proceedings relating to proceedings under these Rules,

B. Neither AAA, JAMS, nor any a¡bitrator shall be liable to any Party for any act or omission in connection with any proceedings within the scope of these Rules.

C. Arry court with jurisdiction over the Parties may cornpel a Parfy to proceed under these Rules at any place and may enforce any award made.

D. Parties to these Rules shall be deerned to have consented that judgment upon the award of the arbitrator may be entered and enforoed in any federal or state court having jurisdiction of the Parties.

E, Initiation of, participation in, or removal of a legal proceeding shall tot constitute waiver of the right to proceed u¡rder these Rules.

F. Any court with jurisdiction over the ParJies may issue any injunctive otders (including preliminary injunctions ) if the necessary legal and equitable rcquirernents unde¡ applicable law are met, pending the institution of proceedings under these Rules,

32. Fee' rd Expenses

A. The expenses of witnesses shail be bon:e by the Party producing sush wifiesses' exoept as otheru'ise provided by law or in the award of the atbitrator.

B, All attorneys' fecs shall be bome by the Parly incuuing thern except as otherwise provided by law, by the Prcgramo or in the award of the arbitrator'

C. Discovery costs (e.g,, court leporter fees for original kanscripts) shall be borne by the Party initiating the discovery. The cost of copies of depositiorr transcrþts or ofher discovery shall be borne by the Party ordering the copy.

D. 'lhe fees and expenses of experts, consultants and oth'

ers retained or consulted by a Parly shall be borne by the Party utilizing those services.

E. The Employee or Applicant shall pay a $t50 fee if he or she initiates arbitration or mediation. Otherwise, Ernployee/Applicant Parties shall not be responsible for payment of fees and expenses of proceedings under these Rules, including required havel of an albitrator or a mediator, expenses of an arbittator, rnediator, AAA or JAMS, and the cost of any proof produoed at the discretion ofan arbitrator.

F. lf the demand for mediation or arbitation is initiated by the Company, such fees will be paid by the Company.

G. Except as otherwise provided by law or in the award ofthe arbitrator, all other expenses, fees and costs of proceedings under these Rules shall be borne equally by the Parlies who are not EmployeeslApplicants.

33. Interpretation and Application of These Rules

f'he albitrator shall interpret and apply these Rules insofar as tliey relate to the arbitrator's powers and duties. All other rules shall be in inferpreted and applied by the AAA or JAMS.

34. Äpplicable Law

A. Proceedings under these Rules and any judicial review of awards shall be governed by the Act.

B. ¡ cept where otherwise expressly prov I in these Kules, the substantive law applied shall be state or federal substantive law which would be applied by a United States District Court sitting at the place of the proceeding.

35. Medi¡tion

At any time before the proceeding is closed, the Parties may agtee to mediate their dispute by noti$ing A¡tA or JAMS. AAA or JAMS shall determine'ilhåt procedures apply to any such mediation.

36. Spanislt

---*copy" of-t$is- Program.is-sv*ilat le-in'$panish

Nabors lndustries, lnc.

April 2001 4ll)

January 17,2007

TO: All Employees ofNabors Indusfies,Inc, and Subsidiaries RE: Nabors Dispute Resolution Program DearEmployee:

Fe"!n* rea (10) days after thc date of this'notice, pursuant to Section 6 of the Nabors Díspuûo Rcsolutíot Progrær:, Nabors Industuies, Inc. (Nabors') and its subsidiaries are amending tne Nabors Dispute Resolution'Program and Rules for the determinatiou of all dispütes betiveen employees and Nabors or ano of its subiidiario¡.

The amendments tg the Program and Rules are enclosed on fåe back of ttris page. Nabors is one (1) section of fhe Nabors Dispute Resolution Program and one il)-seotion of the -amending fabors Ðispute Resolution Rules. You should already have a copy of the Program and thgV maY be found on fhe Nabors Inhanet undei policy "u"runt ZOõ.gO.t at number $uleg,-or hüo.¡//sharonoint.naboJs. csn/. ÇL0/Human%?0Resourcesldefault-. ASpi,

As before, the Nabors Dispute Rosolutioo Program, as amended, gives you tåe most effective and effrcient meân$ of'resolving auy disputes you may have through a proc€ss which encourages resolution at the earliest opportunity. Employees do not waive auy subìtantive legal rights uuãor the Program- Rathø, lire Pmgram, æ ømended, prnvidcs that any subsÞntive lãgal iìsues you may have will be re¡olved on an individual basis in mediation är befors u u*old arbiniør, whose decision will be final and bintling on you ancl the Company. Under the ftográm, us auneudcdr_howevcr' yot¡ waive any proceduralrigbu you nny have to bring a court actiJn, on an individu¿l or on.q,o,lats, c<illcc.tivc or ropresentativs basis; and you waive yãur right to a jury hial loncerningåny Ciqpute you may have wifh the Company or any Electing Eutity þ dofined in tbe Prograrn), including any personal ¡qju¡y claims or claims of discrimination based on race, national origltl, gender, roligion, age or disability under any federal or state civil ri$hts shtute.

Every individual who worls for Nabors Industies, Inc. or a subsidiary is subject to the Program, as_-arn¡nded, except that the amended provisions will affect only disputes initiated atei the effective d¿te of the aniondments, and not any matteri pending befo¡e the effective date. your continued emplo¡æent after the date you receive this notice will constituæ your accept¿nce of tbe amendments to the Progmm, both during and after your employmeat with ihe Company.

We look forward to còutinuing to work together. If you have any questions about the amendments to the Program and Rules or any other term of yorir empioymen¡ please do not -

hesitate to contact the Human Resources Department of your employer.

Sincerely,

NABORS INDUSTRIBS, INC.

9t copy of thìs notice ís avsihble in SpønÍslt, upon ¡eqilest, lrom any Nøbors sùbstdíaryls lIumøn Resources Depørtment

* Ana coph de eslø ùoticiø eslá dísponíble en español con solo roquerirla al DEterlnnøúo de Recv¡sos lfananos rle caølqaíer subsidíørla de Nabors.

Amendment to THE NABORS DISPUTE RESOLUTION PROGRAM¡

4, Resolution of Disputes

â.. All Disputes not olherwise settled by the Pa¡ties shall be finally and conclusively resolved undcr this Program and tbe Rules. Tbe Parties forogo any right either may bave to a jury trial on claims relating in any way to any Dispute.

B. Each Dispute shall be arbitratod on an individual basis, The Parlies forego and waive any right to join çr consolid¿te claims in arbihation with others or to mâke claims in a¡bihatiou as a representative or as a member of a class or in a privaûe attomey genoral or sirnilar capacity, unless zuch procedures ar-e agreed to by all Padies. Neither tho Company tror aûJ Employee or Appücant may pìlxsue any Dispute on a c1as8 action, collective action oi cousolidated basis or in a representative capacity on bebalf of other pe$ons or entities who are olaimed to be similarly si{uatéd, br piutieiþatç æ e dafs rnsihböf"iä suôh a proceeding. Thõ-arbihätor iä anf pn:0eédiD$'_"----" - under fhis Program shall have no autlority to conduct tho mafier as a consolidated, olãss, collective or representative action.

C. If the procedural limit¿tion in Paragraph B of this Section is held unenforceable by a court ia a proceerli¡g in which a party seeks to pursue a consolidated, class or colleotive aotion or otherwise act in a ropresentative capacity, then this Program shall apply to such prqceedilg ouly to the following extont. The court will decide whether the Dispute should prooeed on a consolidated, class, colloctive or otåer reprosentat¡ve basis and" if so, wílI defi¡e the scope of the class. Nonc of the foregoing determinations shalt be submiued to tåe arbitator, and in no ovent shall the arbitator have the power to detenniue class, collective or representative action certifïc¿tion The . court's decisions will be subject to appeal pursuant to the applicable rules ofpmcedure. Ifthe cou¡t certifTes a class, aollootive or other representrative actíon, then all otåer determinations in or related to the Dispute shall be made by the arbihator, The arbitrator shall deter¡nine questions of liability to or of the clæs as a whole and rcmedies available t¡o or from the class as a whole. The arb¡tr¿tor shall also decide the relie{ if any, ùo which a parly or class ¡rreriber may be entitled individually. If tåe court, however, ultinrateiy denies a party's request to proceed on a co¡rsolidated, class, collective or represenf¿tive basis, then tåat partyos individual claim(s) shall still be subject to this Program and referable to arbitratiou pursuanf to its terms.

Amendment to NÁBORS DISPUTE RESOLUTION RULES:

30. Scope of Arbifrator's Aufhorlty

A. Tte a¡bihator's authority shall bo limited to the rssolution of legal Disputes betweeü the Parties.

As sucb, the arbitator shall be bound by and slall appiy applicable iaw, including that related to the allocation of the burden ofproof, as well as substantive law. Thc arbitrator shall not have the authority either to abridge or enlarge substantive rights available uuder applicable law. The arbihator may also $ant emergency or tempomry relief that is or would be authorized by applioable law. The arbitrator shall be bormd by and shall compiy witb the provisious of the Program and Rules.

B. The arbitator shall uot have tbe power to hear auy claims in arbihation as a class or collective actiou, or in aprivate attomey general or similar capacity, or on any other representative capacþ basis, or, absent tåe consetrt of all parties, on a consolidaúed basis. The a¡bitraüor shall be autåorized to decide only tbe disputed claims betwepu the individual parties.

irt

R.v¡8d ABIiI a$ag IHIERNATIOT{ÂL ÀSSOCIAÍ Oil OF DRILLINC CONIRÁCTOR3 ORILLIfIIG BID PROPOSAL ANO DAYWORK DRILLIN6 SONTRACT - U.S.

TOI

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THIS CONTRACÎ CONTAINS PROVISIONS RELATING TO NOEÍIiNITY, RELEÂSE OF LIABILIü AND ALLOCATION OF RISK-

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OPËRAÎÔR: Àddil!: 9{0€¡r.ñ!:n!trd,gu¡lôô00_ .-

Hôwbr,l¡u¡ It021 - _ col¡tRAcloRt NAEtn_s D.RtLUflg USÄ LP .. ,. . _ AddH.: 5l! w our¡ Rold, suft¡ 1000 llourao¡, &u 17067 lN COHSIDERÀÌ|ON of tF mì¡turl prombs, ørd'dm an¡ ,gffits tsliì wÈlnrd end lho lp.d0cát¡om rrË Ep€¿l¡l ¡roe¡åk[ô sl lodh ln Ê¡ñlbft'A'!¡d áôibìt '8'sü¡chod hrlfr and mrfÊ û t l hmf (0re 'CqtþaôÕ, Opsrsltr eig¡96 CúlracH Ë 9n l¡dop€ôdsl Fnlrgctfi lo ddllilE ¡ótslmñer d6dtn¡lsd Kìl q wdlr l¡ ôaE tà gl oìlo. gáô or ã O¿)Mrk BæLr.

fü purpaþr l|€ral, lhê hrm 'Û¡tm¡k' or "Dalryr* Bsi¡'æ¡nt Cûh¿ctôt dEll tuml¡h equlprE¡1. hbfi. ånd p.fom ryflb{ tt hüa¡ p.ûthed, l0{ ê lgrdfu em par dry u.rdèr th! d¡ç.!bn, ¡vplnirloo rnd @ffio¡ o{ Opgator (ndù3lvô qt rry .fidolóe, r0fft. MUIóñI q sbcïf¡ôlor ø¡¡!€d bt OtfltÒr lo rriscìl drìúrB operålhr¡). Wâ4 oFøUñg Ø t o.rwû Atrl'" Cqlnçlû tía,l ha luly parú .l lhÇ tqÚlctblc naß aî F ûÃl qd sw. oily lhc ôôl¡ddód5 ¡¡d ¡ltbütí* E.'lød hq.lo, Êxc.pl lot swh oiløafani rnd li]hlttilët ap*ll¡E{tl9 tstw.4 byt Cô,tLtclot, Op.ãlôr rrn¿ âô rorlty spø6rôlo end &r(ns llablßly lor âll eont.q@çñororÞlfo¡s by¡ðtr pút8 vklaØ t D.yfrt t 8,üla,loçlúdlag r.Eut.¡.nl a¡l olh.t.[âta 6t tlablllilas lncuiltd Ii q lÉldatlo tuêh opffillota t. LocAltoNoPwElrr WÊ{ Nem ¡ÑNumuc. To bo advfsod by OÞor¡tor ffi, ¿"n"ooi-- un,". ,"r". Ïfl1- l#ffi'lll r" ¡" u¿"¡*"4 ¡l op. 1,1 Addl8o¡qlW.l| Loc¡tlonð orA$li NOnO, Lmfo¡o delcrlM lbqÈ ði¿ lor rell oDd CqlÉcl ldó¡tlfülion øV ¡nd Cqk¡dd sumr rc l¡rblllty ïì¡llwr lûi I propar iuN.y t 106ùü ôtakè ú Opêrrlor'6 þae, 2. COtilME}{cEtrl€Hf DAIEI Coôf&lgr lb{ fro drilir0 oa ùE rellE{ùo r90

tobot provls¡on6

DEPÏH: 3.lf¡ôllOâpúriThGwill(¡)sh.lbedllrdþrrl€plholalp¡qißtely __l!é3[_r*1, c{ùlå€ feãCþ&{}Jiåo#+{eld, brrt lhc Co¡tñdor lhsll ¡ot bo rèqukéd hqil dêr {o drilì !¡ld Ëll(!) bcld e uhhs! Cmtr*þr ¡nd Op.o(q mfrdly ¿9.r to drill 19 a ¡r$hr d@tb, - Not to rr!ild crFc¡ly ol rlg ¡a d6¿rlM qn th€ rlg lnvdtory.tl#h.d hlfrlo. 1, Þ^YWOiX RÂ1Ê3!

Contrâcto. tàrll !ó p€ld !t ltË loll¡dng ,¡t6 ld iñ! þ.1 prúomgd hotundêr, ¡1.1 ¡robllll¡qo: oÊmtü É¡alt psy cm{rådor kul¡4d{hJoð{r-t s r mdlhat¡o¡ dry nþ ol¡ 10.000.

&m bs d!6 ln tul rio ¡! €û.d ,ñ¡ñäiããäffi Edy ro rpur. Meb¡t¡¿ôt¡ú ¡há[ ]tlud!:

¡.2 ôffiull2.t¡ôr: Opefatq ¡hrl, try Contßctq ¡Jafrà¡l¡Ðl¡oo{q}otl _ _ r ! dmb¡tl¡¡tbn dây ÞÞ c{dßí{a:Ht*Hl i 19,000' perdry, !6vijsd hffivâ. ttot * a"',ootn añããäillffiffiðñEor lN q dc¡ùud¡oob l€rmlmtrd dw {o tiE tolst 0tlh..is. Deiþbiilzaím ¡hâÍ ¡rdulo: R¡q,down qnd.removo riqjlfom tho linel well locst¡on ind. it appllcåbJo, movê tho tig to th€ noar€st sultâble stack out location- 'Plus actuãl co6ts of truck8, craneg and permits and $¡1,500 for mãn-llft r llght lowel6 and slrlng down serulcasúpffiþ €ààl¡".y Cs*¡{br+$,ÉKll priâßt1es{â+àq¡.iEf {4 Opérâdng Ory R¡tlr Fø rcrk Frrtüord par lwFnt}alour (?4) her dry wilh Flvê (51 mn cw th¿ gpeßüig dty rglè ¡hå¡l b!:

--- Drplh lils.l¡ From To Wlholl Ddll PlPt wlttt orlllplpt 0 Rlo Rêlêâsð r-!!¡!!!-øóar 21.000 pet dsy t day P.r d¡t !.1 dây pq dry

UôiñO Oæràtq'È ddlt plpð ¡ +3!q9L- p€r dry. I

TlÉ 6h will beglo wtÉn lhg ddll¡n! lnll Ìs rlggod op st (ho driilno læslÌs, q polillolcd oval ho lo€lìo¡ dur¡Dg mrìæ mlt., and gdy lo @nffie opqtlion!; årld wtl æ¡i6 wion tt€ dg ¡¡ rsdy to bð fþvêd ofl lb6 lwtìon-

lU S. uyt th&d,Pry 1) Fm pôvidod byFom! OñA.Dirk Copyrighl O 2003 lnlsnalþf,al Aw.lsüØ ol Oñll¡np Coîttu¡ (2J4) 3{041æ . Foms(hÂDi!& om

EXH¡BIT ''D"

O o f uf,ds th. obove 6¡um 'lvlül Orjl¡ P,Þ{¡ m ðÞs ¿F Ëp¿c¡ied. $e 6þ per þáty.lôur bt r däy wiØ dlill 0ipo ¡3 rn u* ahtll bo ìhâ rppli€bl¡ 6{e 8l)dfird lî l¡ê atumr 'WÍthout ÞrÍl Plpô" plo¡ ænÞcn.áìon lorory drlll ptr{ dlrlv ust åttr É(ø lFdlôd brjw¿, amputed ñ ÚE bù¡ts of the rurlmon ddll dp€ ln us tl ô¡y lims dulng êâch iËnv.lûur ¡Nr day.

ORITI PIfE RAÍE PER Z¡{OTIR DAY OlEcdon!l ot g0¡lsht Holo SlÉ Crldg Sl¡O Gnd.

r NIA ps ft N/A pcr

¡ N'A p.ri, N/A . ær T N,A pef lt. , . ,l{lA p¡r

Okecltdrt or vnæ^lrollcd dw¡têd ho¡c wi[ bn dtrmd 6 e¡lll '.dEn dr,|etón r¡øds dqysü 4 wtEn thç chBoge d sôgl€ sÉ€di de8,æt pèrore hcndßltæ1.

Orill plp€ 6hrll ba Сsl€rèdin s nol o¡V !¡fÊn iÍ õc'tül uss bul sl!ô sil6 Il l¡ bôlr¡p plckod !p o.l¡ld dM. \rlh¡n drlll pilo ¡9 s[lrd¡ng ¡.ú'e denlck, il lhåll l\,l

b€ 6n¡idtred h u¡é, Frwited, hffiw, lhrt ll Cmlrætôrturú¡þ¡ Àpêd¿l ilrirEs ol drillp¡pe, dñllællrs. ¿nd hr¡dlln9 lúlr rs pFvhed l0r Edt¡bll "A', lh€ sms shtl 14

b¿ dr¡derod lñ !!c si tll ürc9 strff 6 þgù6 tr unlil Eles.d by Op.htd, h rc d.nÌ -' shrll ft*tiú¡ of ån h@t Þ øt''d3ßd h cmÈlhg ttB aM!ìl - ôl ljru drlf nlpe ls in 0!o bul such liÞ shlll bc Cmpüicd lo lh€ ñaÉsl h@r, wllh Ì¡¡dy mlnut¡r ff ffiè þ€,rE cflidêcd â lsll hN.áñd le¡! l¡rtr lhw njndos noi to br qnlod.

{6 ñrp{lr il h tæsry to ¡lìú dm Co¡lmdqat rìg ltx repâi.s, erdldin! rwiæ lil sûldr{, Cüttacl4. ittsl ba do$d T'6€: ln ¡he .wnt ffipene¡tlon ãt tho 6pdirblo rrb ld *lr rhùl døen llmô w 10 å mx¡em of lloht f3! horE lù any 0nÉ d! ir?€k ¡ob. tut rcl tô o¡æod !ëlo!Èlqlüjizll houÞ ol BUdr wpôür1Ð lor lry elc¡d€r m6lh. Thr¿âîsr, ChuÊêtor rÞll æ (ffipún3¡led ¡l a 16þ of S__-___å&l0L- Êqr twrly{er (2¡) houl déy, RoltÉ riÍ 3w¡dtrg .håll iôdudô, bvt ñt bt llmltcd lo, cun¡ng üd !lþp¡r9 d/ìtlinq Mô, Cunglog ¡ùñp ff sieo{ cxp.¡d¡ù{s. b¡lirg BöP lquiÈæ0|. lub,;eÙry ,ig, ¡0d

¡.ú St ntüt tlm. ¡tls Sl¡ndby t¡ûìû ¡t¡,| bô dcfi¡cd lo lrldud! lkm wh& lh! l¡ ¡¡ írul diltr rl0$9ìr inMdlÉà lo bêg¡n fr Fwft tfr Cet.tr ¡t ø¡liôg qn qden olopGråt o¡ o0 rubtãls, rèNiê! tr olÀs ¡t d þ bs tumìrh€d by Õp.r.fr.

opoõüons ¡.? D¡ll¡ng Flqld R¡trlr Vthetr dr{llng llu¡d! ol o VÞð ond c¡oilclâ.i¡llc lh¿t iuaÉsr6 OonlrÊdor'â @rl ol Þtrlomñø tÞreu¡dcr, l¡clúding, blt no{ lldt¡t{ b, oilba$d rud ot pofadun Cfrortdê, srq in re, Ope.atot ,hâll Þay Cmt[Dùr Jn ¡dd¡ton þ thê oÊndry rtle Ðedlird aloelr (å) t_lL- pa m€n p.r dty lor Corvæ¡û'! do.!¡te pmsret. I (b) i lto ø d¡y sdd¡0að!¡ oFa.rting ratei rnd I (c) coet 0r åfl l¡bü, rigf hù'c op€.åÙno to cJ*¡ ñ! snd chréd åquip@n, 4.8 FoGéf|teudRrtor!, åi,:ffifr""trrr¡¡-slnl'l9xtl¡lL '8re "''-F''""r-"iìiiu¡ry¡*r(u¡]¡o-d¡]tqrntøüo@úpedodfi.t¡drulqpè..tffircw¡mdo¿øenmtbc I

I

áÍi.d Ð d!9 to hldifms ol Fo@ Maþ.. .s dêli^ed ln Paõ¡r¡ph l? hGrsl ll is, hmEr, und€Ftåsd Lh¡{ 4bFc,t lo SubF{øgrsÞh !.3 DÇIfr, Opqôtù sn relrarÉ tl¡! tlg ¡n a@dtnÉ silh Opo¡lof6 rtoht lo di6ct lto¡page ot lhe wrl, ¡fælìw úr.n ændhs will pe df I üþ r¡O ùc br nr€d ffi thå loøllm, 4,9 Rglmhob.blt Côlb: Opqtts raìall rêlmbud¿ Coñtæþ. fû 0rs ærlr ol mtàl¡|, rquipmt, wgt dwer úridì rE t! bD lmlrhid b!. Operâlcr âò provk{od br hrÈllt bu whlû ld @nvênÞñcÉ @ .ctwlly tunlrhed plw by br ll0ì Þtædt lü su.l¡ corl ot h¡ndkp lt¡/tæ, óùt¿Ètor f O!€ntolr roqw{, I .l Opgntdl r.qusl lnd wtlh CaÍl6dót'c agtÈmôr(, atro Corhler ¡Mlthst or suù.antt¿fi aor drp a¡irrr or sùllè.s vhlchop+ôaat t6 ß9ul.od hñlo to p.ovlrt', lor ptwotès 0l ßa tñúøñLy .dó ñta$. þ¿àvltton! ol /hls Cont¡¿¿ p¡d ltfi, at ..Nk* .hdil ba dffiad ao b. Opñq lwnt.h.d llãn6 oî savlæ6, Any êlb.9LôctÒft 6o ltlftd eha0 b. lwod to ie Opa6tûls coîbtclot and Apûrtpr sh.tl nol Þa rctrta.d ol ?ry ol lls uobilíla. lo ñnneöN theöwllt , No¡vtlhsarndlng lhë lorggatng, Conk¿¿bÌ shall nol bc oMlgcd to pæh.# ,Dy Løs o4 beh.lt Ol Ope¡rþ¿ I

4.10 R.vlrlorlnRat6:fÌìÞr.lÉsândorpayænl6hæìnsstlorthdwþCql¡rcldlMOpcràiørtEllùEHiledtoEtlælltrochshlo¡nÞC!ilttaG$olãnt ot lhe lm herâimfior lilled 5¡ãllwry by mqo $ar --_-:Ê!!llL_ pdæol lrffi lhç æ913 lhssf ø l¡¡ dtte ol l¡¡s ConFel or by lhê sm p€ffi| û$d thc däþ ol I

rnyFviqlon puEu¡ñtla llrlr tubp¡ñgñphi

l¡boræ!ls,lrcludine .ll b€neñl¡. of Co¡ttrd. prúdîô¡: öôolrqcLi's co¡l ol¡¡wÉnÉ priñlum; ContEclpr'sært0tfuel,fnç.ludingollb$r¡ndts;lhsøittôr¿allon,t4cFt{hSt N/A lOptrrlwrhslf pror¡de.llfuql.

øsl ôl Í8

{9}{0 ll thm B ãny úange kr or qth.Í lrloÉHn, lnuruar êÉn( lh¡t âlle.¡ Cmlrs€1oa{ lhandll bsds.

¡. 'rrr¡E oF FÀYt¡ÊÌ¡f

Payftnt is due by OperottrlgCoolEç16¡3 bllw¡: 6,1 P8lrHl ftr fi&¡li¡atm, dr'll¡¡g âr¡d olhßr @rk p.lomc., al oppl¡Etts ral.¡, e¡d ¡ll .úû rûd¡:.bla ó.r!as 5h¡[ ba dE, ups Fee6bûon gl hvoloe lh€Eld, upotr 6mpl+lhr ot muldih, dôtutilúdìñ, i9 relnô¡€ or ål itr. ¡lld ol thê mûrth h whlô rKh wfi wes psfdrEd or olhd ch¿4ór dß hør!d, *t Êlrds éholl fir6ì wur. AI lnvÕ166 may be Nllod lo Opor.lø.t t¡q eddEg! hcÉlÉbôw !hM, unla¡8 Opontor dæ9 hÊrabt dg¡!ôálèüråt ¡uch hwl@ ¡h¡ll b9 ßí1618¡ lolltwsl

5.2 Dlrpllld ltrVokÉ.¡d Llþ P¡fmst: Oper¿to..h¿ll p.y ¿ll arc¡Þ! wilhÖ d¡yi ¡ft{ Gc€i9t eep! thtt il Opqolor dispuloa il lnwì€ or êny p.rl t¡q¡eof. OPefåbr 8hell, {Ìlhln illcel d6ys ðfrcr mlpt o'l ù1é hyo¡€, .o{tfy CoôtFdor ol thè hfl dhp0ted, 3pocfyrg lho rssld lhdeld. rñd pâyrrent olllÞ -g{lul¡u¡_ dlspulsd ltm ffiy tlo wlt{ttrald unül æltl€mÐl of lhå displlß, þt llntcly p¡}rrBnl rh¡l b€ trEdü of åñy lndlstutêd pô{io¡ Añy sm¡ (¡ndudhg ¡mlnü ullln.lsv p¿id $Jlhr6.pédtôâd¡spdrdl¡rclcc)notpð¡d{ithhlm¿bo€spldt¡eddsysðhå¡lO€rtntqestailtErålsc, 11n psænt or the ñriimm k€el rôt., wfi¡chwr ß lesó, pc. mnlh lrqm thô dæ dâle unlll påìd ll Opsn{ú dG ñt páy údl3Èld llffis 9¡lthlñ lhè ahw 6l¡t€d dru, Conl.adû my ¡u.æ¡d oporsåN q lêñim(è fhiS ConlEcl a Êp6clûed under SÞbprE rdt'h 6.3

6. TERM:

0.1 D{ñdon ot Conlñct lhls Cont6ct lh¡ll rémsln h tul lr4 rnd êffel unl¡l drill¡ro opârâ!õns ¡Ë empletêd d (hê mlls-*o¡h.p€cilìed h Ps6geph I 0lþ6.{rtg+lsf,Ê-::'@ñendng o¡thè dil.'É€cftôd in Pâlt0FphZ ¡bryg e.l 6¡ce¡¡1Mt¡.mråp4rd@f3xlqôd]ùols@€fi1û çslræl'{ -------{¡{6rq{eÈå48{¡cd.+- .--

by @ioil¡dnploli6{r"låosL{h.e{dr¡Él¡€d orl¡'!

-

Ë.3 E.rly 1<mli¡doÞr (sl Ey Elt¡ar tlrtyi Upø gíllnq ot w.hên nqlæ, oithsr Fny ffiy lmimtê thir Cørrôd wtþ rot¡l þs et doÀtretlø o, tE r¡g. o¡ r rojd b@kdM dh --

lÉqllóilè Epri¡ ljmê¡B6i[¡ta 6bÞtiñg op6€liÐ! h6Nndôi,

(u.8 tuWícotud-Pry2'

,i,"il1ffitrli,i$sî-'.$ @ Cop}1lohl O ?0O3 lnwn¡ì¡w¡l Asrdatbn ol fà¡liûg CØtGstdâ

& I¡towouej . 6Zß1111ÞrZ, rþFrr¡çc ôu||¡!¡o 1o uqte,æv Flofirúqut cmz o ìqdpifdoc relo'\¡u0 !ffiJ,ft p.pield uol It td . ÞùÉô9 vde S rl

¡tnI þ.Ê 'uocmt åq o $lno, ffi pllr uô{ât eq| þ âôpqrwï ,o!¡adm Ént Joìsrodo Ìã¡} pu$6@rr 6J ll 1Þ r¡s l-sQm PUs lto¡ l$Æ¡d oì c¡Ènbap8 uttord EuluilÐ p!Ë 5!FF 6 ¡o¡ elqlluodsE¡ 9q ,lsw pus 6.r lulHlp etu 6t{¡¡ddns f|t€dsd lo qqrds poB aß u! Ðlenbepe @ll&q p!ñl s dd.d ll?qe {le,do ¡r{ot-lvgor oNnos '0r '¡qt¡9e r&il¡Íll0 ¡sn€5åq Á! ¡e 6ul.^et qrs p€lÞlc€sF rtro f0a &¡ slqtru¡kâ¡ ôq üs{r )q€rodô Fpu¡lrãq nswo¡Jod ol ¡uengnd ilru Õfl s ¡o }lnie¡ t'sjtp Ð ta p¿Jlnbar (e)E^t/d pÜR ôitqñd) [ãDlll9l Jelulâ ¡o

¡o lwæelup¡ lo/p!€ srÞde, ßt bÞrl¡¡ec r{q papúa(to ¡n¿ffied qÙnou9 ìts þ¡ lopt46t €lnqüF¡ tl¡ll¡ rtìÊ¡ôdo ÑlE¡tdo ,6pea ol Þâl¡ìâl p¡Já ËÛoqq pgdJap 9q tì|A etsJq & s9s $0* pdletùrsu ¡prdordq É ìû!e, r il pa6tusp tp6rod rl! þ ¡oÞalbJ ¡A pô¡l¡ruo, torudlnb¡ uollflod¡0"4 fu! sl BrlEdêJ lo t@ l!^ì¡e qr 'qæA!o9 o¡ ltø lnd$û P!? 6.u.dþ ql U ilñ ol¡ q¡lurl¡ lÌáìF slsBdo 'uo$@l ôullìpp q{ uo ,o 8Þdõ¡ ôPót lâ^o luãldlðbô ¡9 .Álælrpru l¡uwsrd þ ¡usM €q¡ ,o, luüdmba uo!ìwodsurn po4lep€di rì¡p ¡{us lo '6op!€^ o^lrp læUô{nol 'solsul gezopfnl sn ol ^¡ffiu d¡¡ ¡cáiô|q OâddFb ¡&su'prc uB ul âIB 8llrgp âql uó{ ol ¡woÐ Þul ltEs¡ æ4 æll¡ 1116 lwl !qlp& 9 wñ. ul Þltnbe¡ q sþgluoC ll tl]!r¡å^ puÈ

uo-.ìþt pæ prot ct{t !!¡l!!ea O¡ ¡ilt lts la ¡s¡Be Jo¡srôdo 'rFt run &tu€19 €r¡t te ro¡ p!Éd 4 lleqs tBluop qtn! þ ùnÐ ð ôE Jc{¡r¡poo ,q lsol u!¡ ,{ú! lo4m r.jq9e4¡roC rtq!{ ¡F@¡w, tN Wa/ iu! ,0, wñ*l ?r¡¡ $q ær} 9ðt!9t €q Þþ?4wC ãnoUS þer¡@? elql ¡14 FIRûDI@ t/s f€ ,o rolrøtuoC ol ¡q

ailF¡l* o$ ¡0, pe)@l ¡q ot q ns o{{ qãñ uo ¡81 Сll o} l.otu r¡la rÈô8 9!B slrûU Jo qqô! dlc6sñs l{¡ Jqaoìw5 ol ¡uõt6st ¡qila{ þJøedO

:NOUvao1o¡rv'ss3uÐ3'ssltoNt'6 'EÞeIl!ùC ¡k PÐÆ pUð ,O¡e¡dO ¡q Þ?r!¡ôrd wtÉdG I úlflru lùÉ ôul¡a^@ c.tc! Ire4lsÞ )o ¡dæ !

fÉlt.ûbô¡ I 9.e q|A ,oteþdo q€turu ilñ{r þ}?84þa 1ol&¡do & rq!¡€do o¡ Jolrsllo3 ¡q prìitun¡ eq üsqÈ uro¡ pttB ¡o fdó eg¡Éot V eld¡dÒ ol qqÉìdÐrt @¡ €t0o ro @J ìþd9a oi¡l¡lrð fl!?o tdÞcou €qt uo Þêlìlp loolltrq piÁ pâlsr¡r'd tM tìì to pffi 9)sH9 Ù¡ JolÞr.do ol qrprr! puB dæl llgqt epltl@c l/9 tsll¡ pue ær, ìltl bl súllm lPqs t*.qþ9 wE qd plrr g¡ltpil æ st poe'stletn6ei ¡o qð) 'Ñl gsr q¡[,(¡duæ ot Þdlnbô¡ ¡wlle oqì ol Pa|,lpou eq ol rÊoegp aq ll8tl8 uolsl^od Plsç ¡lr$ pue ,w!ttnôc, qry ,rct Fcot ro .Fp 'tÉtopq cqætúda Â!s oì ,tstùe ,o qla tuqll.wl q w4uot str¡l lo þÞleid ¡us llæ .r.ll ut þ¿luo3 fl'.ll ôì ,qddr

s

.Mi & po¡¡b¡l uelM .ì*tuo3 tí\q .lo wluq¡red 6r¡l tq tm d!!fì¡ç þ & pg,€@ ¡@flc4do q&Ed lsltl ol elqælldds ¡ü@oq åãr¡ .8. u.¡lQ(] ,o t@¡ dn ¡{tu a M ¡r rþl!il ,!MqÞB tqwqwÀ06 tht e ol¿ls lgepg¡ /t¡rE ,o Áuoiìqoôd pùe '991tu '*9t il? t¡t}s ,ldr@ q 5Êq6s q¡ei6q f¡i8d l€¡3 t'0 .iY,, IAqr¡ ul uml|3 rlqe{Fods €ttì $$ mu€+¡@3 ut ¡qp{¡UOC rq ÞfllEl¡lFU aq pu¡ Eq¡slJlÞl¡Bq! 0 ¿q pu. 9df¡ ! jo sq Fru Ên,J ûÙlll[p eq] puú ¡uiríoJd pou ar4 lo4w o¡ ¡qBJ âq¡ il$l lÉrt! aE¡ödo îm au p ôullp a¡lì t t¡np 3il! [9 ì? 'tS ¡,JolgFdo lr p!9 '¡@sl 5uÞ¡ eul o¡ pehns z t 'êpq eq Þ.lord oì

Fut ¡¡16¡!rl pùE ¡ùU p4u@ pu€ ¡wÀed ot ¡uÞru qqwree, ilE t¡n ileqt 9uo iq¡,!t ¡ls la &¡$u@ poo6 ullwdlnb¡ Flluælls ùlql{Ê0 lltlle roÞu4loo t'¡ :89CUJYUd ollv SOOÈ1ãl'l SñrTlluo '8 'l€¡3llll¡ra I st åÞ4443 prtd.q o¡ vql6uÐduæ lño'tlppt il¡ ot s ll.W¡ãa ødt Þu¿ roþeluo3

0!9 å¡SsdO ¡0 ¡U$Ëa t6þU ,q A9!U Þ4 ¡tUO vÞ {16 rO lglEBq l/OÞe4WC 9¡tçffiq ¡fslrqru rgqø ßíÞUrpd! trn¡ ¡ut 1eÁ&dl Ùø0ord ô{!læ dul ¡¡Ìpor ¡4 Jots¡€do ô(nþl p!9 ¡vsurw. 'õ{!¡}tr ¡o râÞru au} tE tã tQ btô tl43á ¡r 9¡upd qì ¡llu8Fp ol ttltp al¡} m?¡r Ísqs lolË4do 'l¡lw llvuûold 9NtËv3 '¿

fwl ¡{fttË}q1l,ilm$ttqqù¡ltt, qoPqqat¡oN ¡oqot ,t6Dffirú|mfqsg{riolrft^sôJ-q}rbelH{-ot-1r0tflteltrfi0Êrtroåñttd.ntq*{t€¡edeÉült ro-!€!ô'Þ*PÞttsffirtÞFiäneÉrot{l ffi,dfi*q6¡mdüo{&¡|uàl9¡lruãdq?ls¡oþæ,/.lq&¡Þ¿¡¡uocr¡qlpessÙ^qp€!mu9q gt pup pg!^!t ApBðs pue ,{lqMrw ÉsuÉùe tlE Jo/ ]oìæIuo3 ¡d lp¡lr þtEdo '¡üpBÐþ] 0t1l Jo ñn v! 9ul {lrt lFlr ,o uostEe 6q! lE (¿) þ :sálÉr iloqg ôr¿ i0D ñep¡@u ulgorn ed¡d tpp ro, onp ¡un@s tënÞr ¡q¡ puBÍedu llpo l¡oqllrr,|" ¡le olqElldd. an ¡o 6,(w peaiå uÉq

uâl pt¡9h uû.¡t rsl oq 'l^9 ãtffin{úti¡,o ùllnprt 'uË çfl! ì¡rt¡ Ftc d q ¡nq roÞs¡uoJ o1 9¡p que¡|8îqq!Ð pЀ rôûlg{t rÞqo Il8 il}r 8s ánrqúdr Ís Jo¡ Nnows t{l (!) Jope4uoC Ápd lt9q9 ,qsFdo ilH 9q¡ p ¡llppidÉ r{l $¡rE 3rf@ uqlBUldral qÞm ¡t :ôulppxdr ol ¡uo¡br¡qns f.} -Jltõ¡lf-*lo¡

oWlufudmb9'ueEü!¡90uru9Fo¡4!l|eH!69sâ¡Fpcjt!o3pJo¡¡6||itlÊW|¡Ñ!UE}Joc¡€psqlo|ìusbá8qns sl¡p qs ol wp ¡epuþBl ¡fqloado ¡u3 tæu@ æl5g¡u03 F$¡ ødn glB! eq¡ uo, uq Ì. sl *P, a4t ,kFrqß d¡¡ lB pelqnelæ wn8 s (Ê, pùs iiecucdrÞ rß|8¡Jnfrrlâ, qtls ¡o lunrur au ¡o {%0r} }nrd wt i¿) :q, eqì o¡ pilEt3ie ¡*s4p uo!Êþrdõi püe trquil Æ s¡o æ 6uijDl to st€dþ a$ 6ulpnÞq 'ìr* aql ¡o uot¡ruÍJ¡rfl ôtnlBuo¡d el{ to wn Á4 pu? ¡tor¡kc ârll ¡o w9, ¡{ sþ€4@c l{ planru! 9q Q ÞE pgrrmol ¡lÞt.ø¡u pus ¡FÉ68cd ¡suådrâ lF {t) :60!troltôl iql ¡o uß¡tl¡8þ{Jtuo}otfedlqlgþ¡aâdo'lrfle¡01ôtvprodreqto¡Jqrdnqiú0if¡dorolu]¡Rru@r¿¡¡r$flmlo¡¡tll[Þlr'.ßfìôulpFtdso¡]oyd lq) .-¡ñçf*i ta ún6 d¡¡nl e ,rêlÉÊ:,apoíe¿$ot{s¡dêrtärdqælqelq#qÞ6pe*St6åùm.$lBurd ¡ sE ¡a 9!¡ eôBwep FtEpl.ql ôr trÞolwc ¡ed flrqr ¡qû5do )opleil ¡lq¡a]adô lo ¡u¡o¡.uqw ol roild Þ€4ba rl\.1¡ ælw¡urí JqaFdÕ usÞ *¡t {i ì¡ueÞ.!¡uto3 o¡ )o!¿ (e} ruq{lsdtdMg lo[rùlwl 4/.r ]'9 'npw&q.ruëwouîú lo uoltulw.r¿o wa¡ts.úg to uo!úadtne u2ns Áq pc¡n1¿t ag Í.g tlrlrlf fut,@)ßc Ðq)o )o )ß@6) ,ûoúttt 'atæt lw q þey|ld],w t!øIÚíqo to aro¿utløßoo Bql¡ltþ ¡pa lç tùo 6vrue ælptd 4uþ tue ¿Eulrþ Ãue tstl.Se ¡lrq¡FF mF s ,9JM¡F¡æ q, hteóO 'hrwdc lo m¡¡¡ ut l¡er¡p ro g¡ot ttê 6ûtÞ¡Þút to {s^rt ,u. ,Pu|øP tuolrn2 Æ î¡w

puê wo¿l lorte]4uo) ll:f,uuagq pua p@lap 1¡rtol./ ù) ¡Él6d 4stolde tqtntl þrwdo 'trdgãa?¿ flqt tapun âTtr|uo¡Jtd ÒrÔu[@, )n t!øltÐèd' þßdthþ ot uol¡ppr 4 peüßs qB moÍår¡do poB lets¡ôdo /q aÞru q tw¡rd Nun ¡tddo llgllf 9't ul påurttw çta rurl &PWls sqì ¡h¡Þ i40p t¿eÐoltoC ot '{d86üÉ{qôS rÞlqs u! ,otpedo iq ¡pdu 9t t94úed Éú ¡!o{e,odo p(Þdsr i¿) þ læ¡cr¡ Þ0 ldElt¡edqns vt qlol læ se 9q lÉllt lqleeÈduæ q Nql llt¡auluot pu6 pslw9 ¡ltll l|Js ¡mJû @ruro}ädrn{J.Uolltlqel þ€ir {f}'@tdo rU ¡B'Áru roþwtuoC'ôule puB e¡p dlql pelrdrlpun ¡13 Z'9 qdvõssdgts ut ptullrd¡ gul qS ultl¡l sp.rn o¡

,Fe¡¡oc ¡¿d lou Ëæ, JolsEdo ll þlpEdo ol Ð]ou u4¡!¡a sld e¡rp ¡!ilF¡e 8u ùllñllo, l! '*l¡luwa) 3Ællporc e ,o gous'{ aqì u! Þæ8F eq .¡lEl¡E s,¡olepdo

studoro p.ìqoddr 9qlg^ìe r Ë€ q þ rroti¡do lalett Þð¡! €q uon¡ &B ¡lJo'6{¡lll.^&d r¡Ù.ÐrÐl¡ Jomu ¡ùq ¡cìlu F'¡srü$wd.{w rô'&rdod sJotÞt¡do æ g,rdq¡P a 'giuE l0 u!ìlìd þ ,(ø 14 ¿lu F }drulu€q e pãlFlFfp¿ lo ¡loutslpr ðu!{És 6!!p8qd Jallo þ uoÍ¡lrd ,qqap ¡,¡ol?¡?do 6,rcH9p S ¡bldrrìvEq ¡uF J!Þìrn

.q þ l$^þrut ¡úóÉq l6|t æìÐdo ¡H¡ O'r^q q 'Þalv9 rq oì t$deF q{ o} ìædrg¡ $s e qdaô€¡td ,o rulrhqJd oql ô'rtPBlqlsoil lloltÈlÙoc f€ fcl 'per8{ t g qdarqrdgf,s v! qlra+ lü ¡€ ,ËÈfluoc h¡nqÛlal lllt{t þ}Eedo

to!¡BtøC q6noq¡ w^à pl8 'r¡ld¡F pilp.dr år¡¡ Erlqte! o¡ Jol(l rul /tvB ]3 ,¡'¡¡lìoþV ,ôlte¡¡sJ iq püs,ltd oq ol )t]0ñ ,¡u?F qcft ùl lopuæ¡q Ìnstgt * 9pM sEr¡

oo oQ rlrddolB q¡t Frrlp o¡ Ntl, 3ut ürq tFqr ,4eÈdo 'Þqlup ff¡ el qÉop t¡ ol prdg q${ c qdeôersd ¡o Nolll^ojd aql õqPuq¡q|sloN :¡oP¡sdo '(E (qt ffi 'oldvp¡+*c advi¡6 CqtE{iq þf ¡ry llbôutaF sndttqa, oo d gbru!álN (hdudhg, ùü ffot lffit¿d þ, tdÉq àwlrs. lnl ho¡ct, at¡Çrü, fip6lñe' pffi Èis 3rÉ wunþatû llM) wilch cslGctor mlghl ffiuntd whlþ s rculg lq üts lúlJm 0 dw¡ng op¿Ëtþ¡! h.tsûdd. ,t lào ryt4n soò¡ut b.l þndlltona c.oal a R.ñApã,2Øt

cdtêttdg oî thttdng ol îha toca¡¡ü ,!,k., o( ll sqh.ó con¿tilút pN6 sß.tlò//taortt to PtÒþ.tly súppotl lhô tlg dwlnl dtth oPñ,îÑ hqçuder, ¡ld tort ot dtñut lo tt a ,tg ot ,t üaoctLcd .gtltl&tl ß!tl, lhgly'/amt oqtrlgt t!¡ttt wilhoql ngs'd lo olhs PrwldÓn' o1 lhl' conlîc{'

/øclttd'tg

Síðp¿ngdFl 11,1 hml, rclñbuÞ. Cþntöl/¡or lat all tu¡t lüs or dem.go lnclvdlnt nñovat ol ú.àds àtd ptyøÙ'Íol Forca M.lautt R.L dtilrg np¡r .ndlû d.mobilltÛlloi ll sppllctu¿ 1r, EqulP¡,i€r¡1 cÀPAClly oÉeraümB rh6Í nd t8 t(èmpl€d un.fir ôny (mdilms whlch onsod the øpæily ot lhê eqllpftnl JpedÍtd tq bê u!.d hqeundg s¡¡åg.esrtssta.¡sflåa ælæm o{: :r€ót' Wüüt FeJudic! þ thô trovi¡¡Fr o' PÚ¿¡EDh I llsôurd(. Coôfocþr ¡h¡¡l 1 htr $F dltrt to útkc dìô lioðl dælrlø eÈ b vrh€n ¡n oÞr6t¡n d.lütlpisrt op.aati¡ wkt êr$d th! c¡p¡rlv ol rpadlted equlpffil r2. ftRtttlNArloll OF IOCÀlìON LIABILnY:

Whil Canat dw çmelÍdrd op$ttoru at llta *dt taeltonl Opuâ1or thsll th.¡ül!$ þ4 tltblè lü daûga la Frcpatitt QøØ.| lalwy ot dç¿6t lrzo

oI any pñii *ùfôD oc6ur, &s ! r4 !il ôl EoùdtilonÉ ql ll,e teqttoi ud Contacþt ,ñrlt ha ¡{/hv.d o¡ twh lt.bltllr¡ PßYtdod, t¡ C6ãttilç1ot Eh.!t ^owaw, tubtag&n{y t.úl6i upor lh. loa¿ttoa Iq.Fy ,wt, ¡nclud/ffl Movrl ol tha tN, tnylgm ol lh. Caîtec,l ßteÚne ,o t@i nqry oAtuW ti.U beom eppttc.bl. dudùg 3æh p.dod, r3. tñgURA¡tCË ouñm tÞ cú|.ãcl, cfftr!.1Dr óhell át cÐMol3 e¡pms mÊl¡laln, wilh en lniurgn@ anP.fiy or soñpa¡hr ¡vütt¿od b do bt{1ffi in lho llle ol lÀt¡ !¡.1ê øFrô llE b tc bô p€lormd q thr@gh É tdf intù'6¡@ plogEn hluBÞ ævcø9c6 Ôl üt khd r/Ë h ltÞ lmuût let lmh i4 Extittt "A'' imdn! tho ffi frb¡n¡êt 6pecitl6tly åsrutrÞd q Conradot h PrEgÉph 14 Ol ltlii Cmkscl- Chlnclot ¡halt púE tron lhl ffipany I ælpañie6 wrtlin0 4ld lnlutg@ r ..rlilìqtt q æ.tiflcâiec iÀôt ¡ald ln3ùr6@ ¡9 h lull tôü sM ¡,tcct and üal lhe aB@ ¡¡gll nol bê Hoqêled ol Nlorl¿lly (JÞr{€d wttrorrt {s (tol då}4 ¡tlü rräfi ñll€ l0

Op€r.loi For [ablläer ¡sded hæund.r ry Cont!Étq, ltr ¡nsumM shrlt b€ ffitmôd lo p,ovldo lhåtth€ udeMild waiE th¡¡r riohl olsbroo¡lhn ôg¡ilsl Oporslg

OpoEþr w;il, s wlt. æus ¡{r ln6uü to w¡tre lubÈfrllpo â0â¡nat Conlrsclü tû l¡ailily N ¡33ws ¡[d llìåll mlnl¿in, aÌ OpçFlo/q expan$. d ôh¡¡l ell hgs, inswânæ co4ÞgÉ Ë 3et torth ln E¡htb¡l'A' ot üÞ sm t¡nd ând in th6 en6 âmun( as lr roqulr€d ol ContJrclq. ¡n3qiog th¿ ile b¡f Íe 6!êcjôcglv â$úæd by Operrs iß PåF rêph 14 ol $|¡¡ co¡md. opêf¿t4r üdl Ê6r. lññ $e ffipgny ü ømprnlé witng sl¡f lnurãæ r erlitQlê q æ¡lift€lèå thât !âir lNuaû ,¡ h full lire r¡d ë{les{ .rd thst {hr Emt õlsll nol ba äncltçd or mledally aà¡nged wtthoul fw llo) ðsy! priq wift¿n tutit tô Cmûæ{ol. OpÊlátor åÓd Cútaclor thåll øuæ tlFlr mÞfttks u[dàMitsfs lo Mñ lho ofþr rddllb¡sllf anrvrpd blt o^ly lo lhs o¡têôd ol the lndmif6ðüon ouEariont asrud hareiô

I4. RESFON8IEIIITY FOR LOSS OR DAI'AOE, I{OE'S¡ITY, RE'.E¡SE OF LIÀAll"lÌY AfiO ATLOCAIIOIi OF RISKi

ta.l Coñracta/EStt''û894,ñJAc4}¡ú'{lúahtf¡treIrô*ry.lcldfre¡lúútîagnlovñ1Jat6dCqnlrscl9/trqtee!'l/r'lqrgd,.!Ér9¡t¡6ôo, ûd Cottu¿caoì thtlt ß¡ata Oqqalqr ú ñy il.bltlu lot .ny Ewh tøst, qc.Fl to* ôt útfiga lidt lh.

wttaî o¡ hov auch laÚgê or dúatuclto. @curq FñvttlØs ol Poñgßph t0 or t1.a.

'úb,.ngaph curñt'0lúèGr4q*rl ta.2 Cüìrrclor\ bÈHiraEq.nÐBqt:Wv snú ¡s@e ¡&ùllfyrtolüru lb¡ûrs! fo ødåsÛl¡cûø øl ìnclvdlrE,but nol

llû¡tad 1o, ttdtt ptpe, dtitl iotlaß, tñd atot Jolalí, on¿ Opcnaor slnl nlf,bu¡* co¡:r',tuto. ttr tho vsr& of .Íy 54â lñ oa dtwgaí (te vtlü la h. dalgû\,ñ ùyrrtrq.msfôelFerC}ntâclarandÛþetottacuñtÞpslrþtlsot,----1g)- pqêqlolcwaqwtl{,ltcøtrlco5loa¡lcâôgdqneldrrtusd I

Io ahcwlt sttê, tL8 CortrctÞr'¡ Eqttpffi . Ér!ùomÈ.Èl ¿ñ q o'É!Ë lroÀnUÉ¡odng dr Fovklo* o, s¡6Þ¡.r9aÊt¡ ,1,1 .boq Otrtalvr $al ¡s.æ årrrfÌ)'

tl a$ thîa tú údÛga þ q óqûlcloa ú Cñ¿t1r/a l4ullnøt ætJßry tan ûb p.6ù6 olÍrs, COr t dÞ ørq$Æ .krrfi{t lfu qriá tú dtltíng ¡lk8 ltuú rlb¡face toñnadono ù dþ ßê olæ¡r{ì'! darÛI€rtr or¡ûd¡. rffiìõ ¡4lr¡r ùflhg f,t&', 11,1 OþoìáO/, E4rlq'vtlt Or{r{o. rtEf M ¡¡¡tHt i rP üË br dnl!! ar f dg¡ût E Áti ol øsrrtb t lA Þv@ími øt*' ü tolÍî ffi'

qlptnqt ht tdúig, btt @t lûnfir'l ao, ctdng, tubtag, N)t hsd êqulpñØt, aad pl.tlÐñ ll âpprlêàble Ng¡a|dle$ o¡ *l¡il g, hü leh d.ffi'. or tþ.ÙuaUøì

@cuE, .¡ó opotatü thail lrl&at çonlnclor o, tay llâbltfty ¡or W tlctr ,oee or dto¡ge, 11,5 îta tlold h rh. qd¡l dra noå ¡rrolid ô6 lod q d.rraFd. QF|,'io. !ñ¿d tÇ lot lI/ ,spoo¡ä. d rÉâ &dr.!Þ b d f$t ol ùé HG ttdtútg tlÞ qthg t¡.rrr, Opaãfa, çrr.t.!têrs C@ürû sdrù ..4p1çF, cøôrcloa Ðd r¡ócor¡ùæforb ot It nto, *ü n tPV lot ûm9CD le ø b$ /û. noáq ¡¡tdlrt¡dpl#l .tâttr.t üd tñd.ñnlty Cffidø .rld â¡ adrlrr6, cfficlñ ed nb@41ñcþß ot fiy lü *ñ &d ¿g.lnst àny tñtt Ail ctãlñ1 iltúÊv, tnó .xptnra rolalhg ta aßh ûtrnaaaro w lotr al ,h. lritL, 11.6 UúdçtgoØd Owgoi øølw rrref æ¡*e Cqfrsclú Md lß .afploi, m.æfgã qDd ruöcontuûõ þl ùtf lK ol ,ny þtäV foQ xtd .t , poalcl dóørd úd Coffiû sd âr ütpp¿e.r, co¿h(rO.s üd ¡üôCort-acløt ol dy k ¡nn ù.J âfá*Ft ttty úrd d¡ çLlß, MW úd âtp.n¡. ru¡r{dttÍ ftlh lr¡.t¿rnlly gp¡r¡t¡m9 wd!.frÈ Õortect q ñql0lWryl4dëbrrcltq, at,qtwqløü!ffiúttyFqu$ngilttú,oú,98, wsúqnþ6)!¡¡ül!ilËül{f*r' ¡f ü the ?hre al thê ad ot ñrsdú cadng atcñ WFy, úe.drg¡rott r6q ø ¡rrp¡tnü(, sfdcùósr6 ñadro( bfl? æd¡rêd le ptuðktl pôt¡Ërrorl t¡oË dra s{frcs ot¿¡t

s,l4 ãrd lq fry trg 9r drmge lo el h,frtttoî, ¡fd!t, o¡ aertt ôe)cdr lê ãsbco at tha Qil\ t¿-7 tnôþe(ôù ot ,talë1fle Fuñlthú b! ogfrlor: cúlrtclor agÊs ta ya¡€ry ltltpæt ¡¡, rulstðlt lúûltlrèd bl oþ.ìalôt bûloe utÙr' ffi úd ,o oallly ôpdttøt ol .ay .?paúl daft.t dr.¡*r. Co¡tætgr 6ôt, ,rgt ôe ,irå€ td e¡y ,qÉ tr d..Fge ñr¡lôhg tuñ dú 6l ol n'lu*f6 hñßlrlú bf Op6r8, arlú OpaËlorsâdl, ¡"ráosô Can1Ùaclq tw, dnó.h¿tl pmaæí dcl.nd .n l thd.ñalIy Conlffio¡ Løñ ôidtg¿lnsl,.ny.eb |lahlÌlly, l¿t Coffioá lidàrr¡¿fc¡do, oC Opf¡ro¿ Co.rf8cfw dEg ¡dß Wq d uV ,Ét,/clly loL .nú thûl ,roaÊt de¡Íd std ¿¡dtñ¡dy OPætu f¡o.t qd qÐi¡Jft¡lct nqdérm¡da,andøGoaædonot.ey^ih¡ldtdcfttltr,vlìdþú¡trÍ¡ndwiùffírlgardblhe6@øüÆrhctúqtha,¡rtlrgwr'oV,9tg ø prrûbg ¡d$rg cøpacdor h'wltt ht lM o( Codþtriol¡ úrPlolñ ø co.rdúr'g ¡irtc¡ílråcþrr ol ñy d.. (ùnhßlw ol úy.gtrt u .ülrt¡d sr¡üLd !y '¡¡ W v aôdt q¡p¡o]ær, d Cddaclo.t frylt?È ø Mú ¿t }4dlrt ttwl, erùüt o¡ ùttcgp to Qrop.,ly, cønæ'ao¡1' Ltdçnîhy tttds íf! Fstf,tplt fr., to sn¡od rlgrd tþ úd *ltt$¿ ety,tgtr', þ ætrtlbttdú lam.ny l,ffi ñ'd6þìüt þy Ag,r'.'ôt ÞuM to hrldñplt tl I E ,¡lud(J¡py dl/.qibtú ù1d ût ñúaAry ltilrt ot iNffio dq!y'tid ,i*ød!r ø ol là! ¡?órnîãói voleøry Fùt.d urdq S¡/tp.6!rtpb tl¡ lhtúcr¡ Cúl¡ú.cþ/ ud OPñùr ¡t!ôr,

e!æ $,d, ôê fa/ppotftd erutr ¡y mÞâþ ftôey t¡rMr<q ødlr hñþl ü[ frs¡d ¡rrr d ,f!Cl ot srsro!trfro, aqn É fá. h úßtgr* or vg¿ß¡búy st*Ûvr¡4

tn fr¡t ot vl¡ou qcocd i¡! mlñø ßmft' þdrtftñ Øòe. apÚãL hr, ¡t rs ,før.d ttl srtd rrrlrud Ægu*üml¡ q Ètdr.rrìiâs .t4t atlodtldtdu bQ sñ¿nd..a lo coûlotú lõ lio a.ríûw ffi6ùry llñlts pqñnled unde. t@ìt l.w.

tLÍ qpe¡fo.bfi.þ.rEícrd0¡alâq¿ffiOpo¡ñrràCrntr¡J.Cùrbfrrôle/tlúlrytu,erdtlÉltptetffiüdffitycffiWrtffiúd rgfilårlcrrlru,dmnó,ôrdæ6o/¡cdqno,qqyht,dând?,qt¿tlrtrrtthoullt tløddj'lthottlÞg¿.dlotheasur.otçrvtaslht@lqlhrø.9llgúî6Ol¿¡y gatty o. p.rllâ., t.tslnl li èonrede' âmptür d t.vü ot Oq.õfti. ñployw q Op.f,to." ffiæ ú 4¡y 8.. (kBtß¡fr ol ef r!ry¡f iqs¡rI¡¡rl û .ubcúÛd1ü 6tg.grd àyOpñtott üÚ*qrd.qq * Op.¡dÉo¡'s tdvl¿q oürs llùlh[* ønh¡fffi h SlbprttnÚtl,rqt.ffirtaÒrboüþlu/a M, ü

. {utD.wtwtd-p4..) ÍdñprsrÍtodbyÍmo0{.Dlrr /.^tfqN\ Copydehrê tOo3 i¡rerutionorAffir0on ot ùilhn0 ÖontñdoÊ ForfrronAD¡*.ffi t \\Uv-'

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driltÛi ëonf;t tlü ß pfrgêrly.

gMit þ qpmþrr f¡d.¡Fry 0 ù.¡ tlú Prugttf,à qN paâgñú ß n fi& ao þtücwdalMfi€d úErúa rMrüy M6 ôó t .irnt ôiltd o!

a0 !¿d sürota Ùtl tlgttl & cdfrlùd}tt pmtú wdq þt{ffi. rþq¡*d lffiødôrø ol dto llq Åy tuÑt lrt¿bßltütô vôtüârty Nfrdlørr.zw3 n*ltihËt hy

ltÐ tnltn la ao dgn d suóp¡ra¡opr¡ g,e þl'{j4 cuú.c1or ,frt opcr¡fw t dFåy ,!Ê ¡.if ôö r¡4porlld ddêt ùy tuld|ölo fåufty t|F¡mæ, utdot Úlrlçh 3.ô60ünv ,g€àrtl lþ htúerfrúç, tr ft¡t dûet r.rÁfñr@¡d ¡¿ pt l 6 úorC Ka,l d,úM t¡nla patûha ø* epmAh þ*' Il ß tÛd gr( âkt "u tn uranco rcqul1û.o¡a or tiíenildÉ atßll .tJtgm.llcttly hô ¿Dñdôd 16 Mlôn lo tht Nxlñm nüeltry ltñlls AqñNott uñd$ atëh tâw.

11,10 ¿.ÈUW f,lV'ûRWb¡l: OFa.¡lA.dr.{ öC Àhå,r lo t tþ ce ot Etfrtg s¡gql ot dyvùt rff..F wt'll s tor ôdqo, ffifl|ol4y lÈùflt l¿d c€r dr.tpft

¡w¡qúdtq, ,od ñt ilû, r¡d Opsñor ¡¡a¿ rsre¡ ,., Pnlñ, û(âd .nd laÈtmntll Conña.løt úd þ tl,¡plß ry,ÛttfE t'ú l4rfov4ú(iûtt ot Ûty íq Íßñ .nd tp.tñ51 ¿¡y tlâhttry lol tuch aoal, tít poløfod or Cont û!îrtton. ¡Vofrattptan¡|nt .nyah hg aô ûú conmry c.naa¡ñú tta.alß, ücoþl aho 9þvl6loti ol F.agôfin l0 tn¿ lZ lt ls

ùnt{ld]ood Dñú ,pt.ad by red iatwà Conadc:tü aðl Olanlot lhst úr nalñslhltlty lot polhilol ot cgîi4ñttlallØ ahrll ¿! ás tolroKi l4l Crrrñdo¡ slr¡n æü|re ,, rÉpon¡ftãry lor, ,¡.i¡rdftg gffùeJ dd Ëtrvtf d, .rd d,glt ptoø, Ôelan<! 6î6 h1ðqilt#y O¡etz!tr ftom lÍd fftF, ¡¡ ¡r.¡nç, dffiæ âíd €ß of tcdâ d qsy Nîl Ntdôrrãlf *fr&rg fE í ¡qñ¡rdor, I isnÈd*¡droq s'l¡clr tlglEft¡.ôwa úo tfrå6. ú úP M g vâttrñ t# ol lnb, tubi/,a'É. mntot r{t, plÞ lom î.ktü,, soleiß, ôfh4 !{r. $d pd¡ùttü, .trêd rôùð,úàþ po¡tdoí ¡(ñ ñæflt Pt8' trûolly J,t Cqfäcfo,/t posg$lm ,nd caúrol.Dd dlñûy Essocrrf6d wlfì conlnctot\ ¿qúpnØl âdd l.cilM* lþ, O¡-dlorslÞd ¡s dtdllÉÍpo{rú dlrL.d îod lôdffilv cÃr*âclü r¡rd rft lfr¡plfrrq @¡ttl6 ed r^cortuec¡æ öl any lh¿ tw üd ry.ü¡f eI c¡ring, danm.t, and qBB e, etla¡ o, çYaty tlnd ød thûclq tt 6lng l/æcty or lndl&tl fiñ dl oatw potttlon o. c'îttÍlnstlØ vh¡olt ñtl ñø ltuttig üe @dftl dt st ñtldç hsødat, hcn dlgl, !¡t ftt frn}dd tþ,lhtt wl*th Nf Nda þw ã1t¡ HomU( cñldln',,*¡pgr ûty úçrmnffiiwol odr !84 F{*øodu6.ô¡l¡ot¡, *yrrJ ß tueq daptddoîolú.*útfleûfr1ftt lu*t*btâtþí#ldþ, ù ?ñ¡b¡d4 o{ à.5r r.,/frrbt të/trd ùNig ,rids, æ¡úúrtru{rd d^dtllg ø crvfi$r, lo{ Clttf¡t don .td &rr ævüy ñterH! std i¡¡ldg OptslÞ¡ ¡úad fdst Catu*lq snd flt s!9fi6) ÀdttþrlF úd at4,cotürçlß ol mllfu olúlttt $V lqtþ lÍ,tgotlg (c)htlrfrwl¿ttNpúlycgøntfilcløddsdor*lrlcrl/i[ttølàþaÍñonucottëtftúønl¿trôHr.tüttConÈicôaúOPffi,t9.l¡,|tqrla/dt It pa¡ûmhry, wd<,l¡ ¡Cd fú Þ! ,rFfy ÀÞô¡b lha ñarytþ$ly p¿¡lt' rhl, úô cop¡d.d4 s ¡.need Cd¡t¡t&¡ id @'dø, fo ùô l¡¿ !ñ ú It dÐ 'Èyt/'ot @l ,ü *lúfi dß wttt w pttlffi hd pulonad a1Ð w ryrd al ol lt. dù4Fùbr3 ft prúrg rpf!*, d,ftBú, Ítd{tsúy ¡nd ÁtIr¿loal Ol t¡qporuJô#ly 6t aat lodh lo {t) aûd (b) aboro, t¡âI 66 tpæûøI! apptlal, and iltbillty, eúst1@tH IÞ'nr.g6; Soqri¿lto Íd brü¡M ðJtúúltrÐ t¿ prüvrr&,t d¡ ttb M ta,12 tÐalúrd fh6 tw ol163à t*a¿soâtrd¡/ífffilt rfgrrlr ¡ndoöüOtCùE orttrp¡d.{ €úrrpfiysfìçld.laf@ ùa rtapûsôl¡ ôrrtd ad .Frnif ¡tr m 6p!aå{ tf,dtet or @rLqtñÅ., drdrys, sd dB þsdar qlü drf rpëcår, frdæt s cfféqúÉrl órË9.¡ st*l ô€ deræd aô ¡r¡c&dì ellåol¡' finlñaã, t a ta'{,wrttti lw of Naltt q ñqw; corls ¡ñd q{p.,tw ßf¡rlt'Úl ,tm b¡!ârst ,rfotødeú; loç ol ø d&t lî paúÈdôí; tæõ ol ü ú,tü¡n ro úc ,*rcrror4 þF otød.trl lû dtflry q ëFød¡e tigùE: cql otqrßs olGr otpopgt,.qi$mr( rrd.rtrtr údpr.¡q trírerg $l$oü it,l¡l¡cdt ôô¡0 ptgltdldôy cqûæa@ r¡r¡M¡cæ ol wf ûq N by llfr NE OFtæ üd ûldsrr¡lY Cd,(æaff rrd ¿¡:¡ppl*¡, cooôî*toß ãrd a¿tffion of Myís1M mt tfdød ¡l cr.rrË, d€ared¡ ed aw ú rúü d ryay túú ord.tEffirr,r @¡¡etrb¡ ¡+lú ¡¡¡dr¡P¡cbl' búrcl d conseq@drl d¡rËgE s¡¡Ìntdôy Ora|¡e,e c€sæ/t, @üú¡ùì 6Júû¡oaq, /¡øo.¡' /sre, Þ¡á16 atd þþtt w.

11,13 lrd.dnny Obilgtúo|: Exccpt ta oítarwtac úetq.ly lrm!a4 tn alrr6 Co¡ùrcl ta ,¡ l¡e lnlÈ¡ 9l p.rl!É haûao lhra dl ñ¡{¡¡¡, ,ñdttflrfy oùrlrndotrs esañ.d hy 6ßtt pstllæ unet bms ol ¡hlt Co¡¡ã.l l¡.ludlûg, vl¡rtout Imt1.üæ, gubprñgnþhs 1,9 and 6,3(cl, Paøga¡¡¡l 10 úd lz, ¿d6 Dndlo¡ llahltfllàt S!õprdgöpt9 1a,t fttough 11.12 ,tw¿ bo tllhoul ilnlt ard wrhottl ..JEú lo fr¡r øuJ. o¡ dßß aeaol, lî.¡úlnr, bt¡l ûol llmilod ao, Fttxl¿llng cordlalaùst dale.l ot nilñ ôl ptcfrlsú ü qll/þffia $tlcl ltabilrl, .agulÉgry or t arslory lhHüly, ,þducl3 Ûaþl¡l l, b,wh 01 rctlffil iloi q w@ly

{rtþM g. (ñFli¿{t, bntç¡ d ûfy þlGd'ar ftirtuù Ø!útcldnt q otele) d¡y ttñry of lo4 &urt ú caßd, ,.¡1a dß nt{/lgwo øl .t Y úlgs ú a¡McL l.tflrd'hß orút¡ctiørhh nqlqacø b src,lotdl tr coffi( tcün, pÀ¡srv! gr ú ,'¡ty ø Fa¡At hc*øtag', øty !¡.rúl9lta Öfi{ttóa¿àr tÞhü4 'l.6) 'll,

Þülstrn¡ ol sûòp¡ag.sþt6 a,g sd ea ñ Pd'ryr4lÉ 10, 12 dtd la tH k æ ø A* búall d tæh gartlú, l¡rllr 9çvúfltqß, cet{scr. ,roril oMd, ar¡afl pøøa ltoldlõg zû¿ íílltttèd æmlrûþ¡ tñl tl¡, o,tlcôÆ, dr$toß, rþc*tôldars, pattmts, ñrnrge, rcpæsdlalrvos. ffiployæ, cøEulf'n'' s0úaa, aeMrß {rd r¿søô., ot Þc,,, Ercapl ¡r ot,,aülra puvlúel itgelo, Êæh ln¿lmttla.lloa aú ,âffiølùs ç( t¡.bilEy shrll nol hâ d@ad ta ctuL úy dttús ao tnturttlcãdon ln èny pøßon o¡ .ùlnf not a ptûf lO thìa Caùadat. øllâq I . lhLd p.t7y bffialôIäry er by uaoa al try rttt&Nia ol l¡dqnv bÇl:t@n

orc or lt¡r prrt âr ârðao àõd â@îhat p&@ ot q6a, ool t pttty lo lhlt Cônlôcl- 15. alrDtT tl stry psymfll prcv¡dsd lor here¡ds l¡ moda d ltþ bts¡ô ol CotlactÒt's ølB, Opffitd 6håll h¡vr thè rght to åtølt Conltscto¡'J bfikg rnd mord! rol¡ll¡g lo rKJl ølr. Co¡b.åctd ¡græ¡ to Miola¡n !!dr bækt rFd rgll for ¡ Dùtod ot ûÐ {2} tc¿E lTw lñõ d¡b ¡udr óÉ we lffi@d tnd b m¡kc ôñh ùûÕlß

¡nd lwds .addify ry.iÉbls to Opor¡tor tt rny Es#¡bþ tim d lims w¡thìn thö pô¡lod.

I6. HOWAIVEREXCEPÎINWRITINO I t! fulty ù¡doÉtad grd igÊod ùrt ¡on¡ of thã Bqüromk ol thÍ! Cøt d shül bs øtldÊûó 6 wav¡l bt aiúq P.íy unþa! lha ram l! don. i4

wiü¡g, and thËn mly ¡ry lhe poreN €¡@ti$ tbit C$iGd, tr ol}cr duly euth&¡¿ed açênt q ÞpærlnbfiE ol thr ptly-

17. FORCE MAJETJRE

Erorpt ¡e povilêd ¡n thß F¡EgÞph 1? lnd blhoul prê¡rdiÉ to Us rii& dl lø!, 6þe ¡d iúmnhy obfg.üoo8 !r1dd lN! Conlr¡.r. éð{ñ prÁy þ lh¡3 Csl¡d shôU be exruatd lm cmÞlyl¡g r,il¡ (ha bß! ot iÀis ContEcl qøpl lor be prymnl gl ædes r|trc¡ dua, ¡f 9¡d lor s þ40 al r9s æfpliâne i¡ hlr¡,eðd û ptêvsnlêd by r Fotæ tbjoùre Évsñt. & u3€d in lh¡r ¿oôtBd, "Fæ Mój¡urs Ev30l" hdudlr: rtls ol God. æúm !f the el6æd3, Ms {ded.red ù undælâtad),

lôlutrdjpn, r6vdutifi, rsbolllons or dvil s0il¿, cirl *ðr d lþaükt ¡ê1ú, tsti$ 3Cr, dot!, stüet, dlño€Ës wìhwkß. .¿ù gl publ¡c ¿0t¡G, tâó€hl t stetô |ffi, '{rscy.

rdar. rcgùtiltoñ! óbpo3¡t¡oô9 or ddH¡ ol any eowrnmånù.1 .uthodügi hovlng ¡uriådction h the Frlois6 or ol ¿ny ots ù,ilp, qoÞnl¿lion q infüml r.qqiqlir (stÞlhs q no{ trNlly r@gr,zrd ¡ú o 0ormmrt). læbllity þ p@fe Éldl¿|, .qulpmf,t, lúl or nMisry lsbq ¡n the opF rudcl, ¡cl¡t€ iñd unwusl tâbôr t Gtdtô1, âquipm€ñl þr tu€{ sho.1r0È9, d s}y otñs¡ @uw lorept fiÞn id} bsyqd &ó ænkÞl ol ê¡lher ptrly. NêltB Opelsld ñ Cølrádq êhôll !e ßqukéd againEt its will lo ¡djult sry ¡aDor d sìmlrr dis¡rter âe$ in scødåne wiù 0ppl¡6bl¿ h\x. h the åyent ùàl eiûs påriy heßlo i5 rorid€¡ed uÉbl€, $irolly dh Þal, ùy ¡ny ol ltEs euæs lo €íy oql itg obltgrtþn u¡de I thi6 Cúhcl, il k 6ersd lh¡t 16 p¿Áy lrÉf olw mtl€ .rd d€h¡lô ol Fo@ Mãþure ln riür10 tô lhc olhd p6tty !5 prøUlly år pcsibtê âRêr ¡b Gcuton€ h slcùt øs. lh. ouþlltrF ot lh. p¡rq girirE lhÞ mll6 thal þe sqpend€d dsriñg the qlin6É ol ty inrul¡V tq øusod oxæpl tf¡l Op6r€lor ih¡ll be oùllg¡tód b p¡y b C6uqch{ ltÞ Fq@ liþJeure Rato plq¡dêd lot in subp8mgráfh 4.8 ¡Mvo, Jt. CôVERNII'G L^W;

fhb Cøt¡¡ot ¡h.¡ b. offiiüa¿, ¡óffiìrd. lnrrrÈ|gad, rt'ocêd md l¡¡gFtrd, ud lh€ nldqÉ hìÐor ttr prytr¡ d¿Ormnø ln sfidaco !.rlth ItB

lus ùr@r coffi- ãr¡ õ/ Fóm Fovid€d b! FqG On4.Þlsk Copyrþht O 2003 ln|afrlìüâl AasË¡ôù9n of DrillÌ¡g cmtrækrs (21{} 340.0,{29 ' FqNOnADi¡k.m a o tt. tNfoRt{ÁTrot¡ co}¡FrDEl¡ftAl:

Upon wriild¡ tegoær bt Op.!.tff, iifomarior obblnâd 4 Cmháttd h rhå Hdkl ol drillìng ôlcmüss s ihi. wll, hdvdh8, hJl nol llmiled lo, depti, fmltion! pißlråled, ttþ tåuns o| slrtr, tasl¡¡f sd ffiolir{, shâll bs srldtrÈd mñdenì¡rl ¡nd lhsll nôt b6 dtw¡0od by Cnntt*1or d ¡l¡ mplorço¡, tû ant¡ p€mn, llro, q orldållon olhaf thro ôpdâtôt'! derl0eléd rc0tü€îbliEs.

20. suBcoNlßAcls:

Elthor pEft mry rm¡ldt õtr @trôCt& b pêlm siy o¡ tlê opelafñ¡ ff BNlsô O b€ t@üded ot pottam.d bt it wd¡n! to E dllbh 'A'.

2I. ATTôRHËTSFEÈS ¡l lhi! CqtÞct ls pla6d lr lhe hðnd8 ól ¿ß attotnry lor ú¡l€dim of åny ruß dffi hcrs!¡dq. q wll I! bfg(ghl on 8are, ø &ru dß herdndol æ cdbcl€d

though b€rlrup|ry d rròikstø p,wsdhg!, iBn ihr prevrl¡q Êrfv shef be átH to ÈCùv6 rttrüåUâ sltotæfs ¡# ônd 6tt ¡r. cLAtr¡$ar{o LtENsl ÖontraÞlfl â0/æs lo psy âll wfd dlim lq ,ðÞor, ryþr¡ql, ôfürF, sr4 tupplþs lo bé tum¡Bhoó by Confðþi hâûundst and rgEs to llso ¡o tFr ry ¡sdì hlri praü.r to Þe ûè¿ lpon ü. lGM. ûE tr{¡, d ofË. Þropaíy 0l1iô openltr * t¡â ¡end updì ullBh sàd HI ls loc¡l€rl ¡3. ASSr6NhEr'lr:

Ne¡hça tÉrty nsy ârlqn $ls çonf.d wlthost $e plor trittm ænlrnt ot the othu, ånd pomÞt ftthæ of rny such intrnl to B¡lgn ¡hell be glwn to lh?

ohår psrty- ln ü0 deot of s¡ Nsþnmlrl. ttE gslgññg psrv sh¡¡l ßruh ¡lsbls lo lhê ,thq p¡rty es r 96[ntor ol lhé palomåw bf ûts rs''gH ol llÞ tetfri ol fils Cü(dç't. lt åny a¡signñlt t¡ m.de th¡t ma(dålty !ll@ Conuåclo/s lh.MI hhton. cqbsctoló ømpaslion 3l.ll be ådjGßd l0 9ìvt âíÊ¿t lo åûy lndeEa or du€âsð ln cútÉÉlols operalino 615, 2ó. NONCES AND PI-ACE OF PAYI|IEilT:

ñotûs, ßpqls, ¡nd othlr ðmnunhåtþr8 Gquked q pim¡rted Þy lhlr Conlrad lo Þe givfl d ffit by úê pårty ta tlþ ofìår cà8¡l bå dâliw¡ld by h!nd, üil€d, dlg¡lâlfy fr[emllted or lêLroFlsd lo tio sddN h¿Eln¡bos shffi, All !!mr Þáyablê hóreutrder 1o CónlÉdor ôi6l te pryabl€ 8t lb rdd$¡ hoEhrôds ûìm unfôô! drBMs tpac¡lìld heÉit 1¡. CorfflNutHßoaucÀtloNs:

Notwihd¡¡d¡¡0 lhq t€mlrulor ot t¡¡s Cfftñcl ülo p6rtiG! rh¡ll øtiiúc lo bo bdjnd by ttre p.ovi!þ0s ol lìlt Conlmcl ûut .srwbly êq¡dro ffis don q loÈ?årom it{r Mr} !ôfl|¡rdbn. ¡t, Eúl¡EÉAOR€EfrìEillr c6k.cl @n¡lhÌs lhê tû¡ sndsdôñdlng ol ltÉ pordú, ¡nd ¡ Mpte{ô eDd €rctue¡w 3tãtômt of lhê t¿m ollhd. åleffiû 9rø !hâ[ oxclu¡lvrl/ Tii6 mlral oMn lll rcû pülomêd hddndd. A¡l EÞrÊsrl.tlonr, ofêr!, ¿id uñdqt¡X¡mi ol lnr prrlin mâda lrþr þ llE ofh{ûw úrþ lpËt, e/tBflr oral snd aa ¡n wiU¡g, tæ ßrgd ieGlr, rod m olhpr €qir*lr, ¡0raÉrert6 d ffil odort, wt$d prk¡r 5 úo orwù6 ol th¡s ç{¡lÉd, rhrll ln €ny hy modlt, añðnd, ¿lltrôrctungE €îyollh6lêrß oÞnd¡tlônr sêt od hlroln, 27. SPECIALFRO\4SIONS:

lt.r E hlblt rt'- 9!ù11&Êl!Ejl!rshlE@Eh¡! I¡ rtt chod h.rch ¡nó mlde ! prrt hrrcf ¡7.2 lo tho d{nt ol rny dlrHto .rlilM dt ol d ohl6rt to rtlr CoilrrcL llr w{ð r!ör lhd lqírdkllotr Í¡lt lla üclu.tv.ly wlth alr ll¡lo úd fldañl qourL ln Ho6ton, Hrrrli coúnty, loxF: opfftör romr .ûd cfftant¡ lò llß)lftrdldlÐ ol lh.iulr ud trdnl cwÉr ln Hóu.lon, H¡ttl! cgúnty, foEt, tnd mþ.a ily obþcüonlh¡t !uch court¡ qð ar lnrproFf,, orlñffivmlml vmßorfooñ lqr.uch dlrpulaa, 2t.t Fot Dgrlcdâ gt d¡hy dudng lg ñov6. càusd ìry clrcun¡bnCö boydrd cffmtø'r cûtrÞ|, iæludlne, Þut nót tlmll¡d to, lncl.nmt wsdhlt, Iæl ol rvrlfrtÉllty ot rcrd., læ.t¡o-h,lnn¡Fûilon.qul¡iî.nt o¡Þañhô, Oti(€lorrhtll É.y cô¡tr¡clrrt dtloy ðlô ol ¡19¡00 perdry, 27.{ Epfth Woll 9oñ'lr!¡, lnG. ("epoch'l¡ ¡¡ rfflllrto ol Coñloctor,6b.ll lîvolæ OpGnlor, lnd Oponlô. rh¡ll pry Ëpoch ¡100 par d.Y llpud to etCrs) lot Gntrlolth. Epdù Rlg Wrtch¡yJbm, ï[ emõh Rl{ W¡tôh 8Flffi EoulEñat¡l lndurks úo tolldlnûr Dalll¡l,¡ ftit(¡t¡tlos, Conmnym¡¡ coDpl¡hf wdrÛüoñ, fslpohft @mÞotaf mrllrldoñ. dõDûvùlt tn¿klno r[bñ. hoot lordlùtt w.lqh¿ .otlð lolw. rot¡ry RPI¿I dwrD öniura, MD llro¡ç c$lf,t {2 gunlÞ. l¡dudtd). Plú volumr pöÈ{¡ þ FÞùh lnclu-úril wllli ofllon lor 6 .dd¡üõ¡ì þabi¡), tiip i¡nl vbluñô piob!'¡ ll ¡ncl{d.d w¡th oplþr lot I ¡ddlüoñrl !.obcl' and ßtum llff p¡dúlr. ''ñùo

,!, ACCEpI^I{CEOFCONInACT;

lh.îôt golng ton¿.lcL )actadlag llto ptoeltio¡a fal.ilng þ tndñnlq, ¡.1ø3. al tttblt9 ¡ñd rrþ.ãl¡o¡ ol rlôl al søhpoñgûpht Lg .nd A.t(c), P.ñgÊph, lO ra.t t2,.n rgubpzøgdplr. 11.'l thtuug¡t 14.12,lt.cr¡ut dg.d,.gt .d ta âãd.ccqplêd ôyOtff.fotdr," ? I a"y ø SeP . 2t1)$

OPERÀTOR: c Sfl llüô:

th. loß¡otng Conþtc¡, lrcltldlng th. p¡ovls!ôñt ñltltng tø htd.mn¡,yt ntutç .l ilúil¡ty ¿ûó altocâalon ol .ta| ct S0ùp¡ãgl9rtr a,g, 6.lltl, Pmtnp,'t tl anú 17, tød Subpúñg@ph. 11.1 dtþsgtt 1a.12, l. .ôknortledgrd, tgræd lo ¡nd gcctplrd òy Cø fætw nta ol geølqhù - 20.:E-

-n!*ttay *á,I,èh la tha eí.ct vo ht o¡ lhls Cortacl. stúl.tl 10 ,íg rwl!.büqt tnrl túùlæa ao .lt ol ltt tffi r¡d provlrrøs, vilh aàa uò.Éltnllîg lltl Il wy'¡ll Nt ha

blãdlng vpot OF¿ñtú ûIil OþêfrÍaf htt no'Êú ,f¡ récaptrnc¿ trtt v/'h aù. Ittlh.r ondstlâtdlñÍ thtl unîesr strd Cø@r¿ as att6 .xtd.ú bl Op.úor vtlhln seÒn nt dryr ol lha.boy6.trt6 Corlnclor shtll be Jn na M^nù ùounú by tlt tlgnâluþ ¡ñqâo,

col¡TRAcfoR:

Tfrr.:

fut o¡rcr cfttå.1 - Pry 6J Fm p@it6d ùy Fomr On.^"Dl3k Cogy.bhtê 2{03 l¡t€ftuthnsl Àssod¡llm ol Diìlrrl Cmtr¿d6 (2la) 340.$42S. FomonAoisk.Þm

a o Fà{..d¡prf, ?00J

EXHIBIT'A''

To Dâymtk Co¡lr¡tl dald 20 --!l-

Op€Eld !¡ñå ú¡*¡.¡Á -:l!cþO!!¡-?!--

âll à ¿r.

IÞ C6l6dd N.h^Rñllll^âllqÁ lP

Well l{m !tr tlumbff TÃ ha àddúd hv ôBñl^r

BpECtF¡c¡f tot{s Alro SPEcraL pRovlSlottg

í. qASlNo P¡oGRAtt lS.. Pa[lnch t]

Hotr C.¡lng W.lgha GEd. Aptrol'm¡tr l{|lt ó¡ Gcmt Slrs 3f¿o s.ülng D.p{h 1ña Condtclor in. ln tNJÍ. htr h¡l Sul¡co ¡î. lbarlt _-L Protsllon iô. lb.¿tl n. hts '1. in. ln. lbqrtr t. htr Prodüc{ff ¡o, lÍ. lb{rI IL lb Lln.r -ir ln. in, bÈrn. -lL n. h6 l¡. ln, lbr/n fl lt€

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3, II¡SUR-AICE (3¿ê P.r¡gBpù ll)

¡.1 Aúqùqte Wqtec'Coûpenstlon l¡.ursnÞ Mpltlng riÚl Slatâ LM óppløbL t ÉnployéÉ' Lilulty tMùß.ø wilh l¡rì¡b ot ¡----8$j11.!!!!!!90--_ mv€r¡ng Âll of Contr¡cloc¡ mploye0! Nrking u0der lhl¡ Côûlñct.

¡,1 Cmmrdrl (q CmpnhsNlw) cô¡rnl L¡ãÌ,¡llV lß!E@, indudin¡ wfeh4t qbtþtlioN & r6pe.a. thlr CsFgol áñd prepor ø@dè lor qll otha obrigEt¡ms sHdËd ¡ô ñb Cqùet. Thà tindl llEU þs $-leflLl1l¡0lllb¡-- @trûlrEd 9¡ngls llnit p{ ffi lq Bod¡V ln¡urv 8nd

Properly OrmtO.

s.3 AvlorÈtiþ Fub{rc u!ùrv lúlBffi $¡ül liîrits of ¡--t{tll1!illl$¡t-* hr lhc ddlh ot hlury ol êocn parw ånd i--g¡!lllltdl!&0 -l0r æ€h

*idnl: 6ñd A¡do@bþ Publlc Ll¡biy¡fy Pþpsrty DÉm!ô lnMa¡4 wiü ¡mlb ol ,--------9¡¡llld!!þ!................_ ts râ('r ¡djdñL 1.1 lq.{hs..€sl-op.l$9ñ1.{c+o..rvdc..--€s¡É€lHhdr.€gi8.{d{¡t*{s-rhè $¡t¡t¡ty{fltq.UÞtfig.ñtrrd!åås!ü{r,JslFCåonp.Ðôt¡cñ{¡lq4lrrðtna{¡i¿{rytrdl¡d¡4slfll.{üêsd{|{{[lñS]rl¡"æ toør.à4ea¡c lrvdfle.æ+{&Fðnd¡ lú tFf m 9q€id.11 3.6 Olherlnru€nçoi afc$fôJ?.r.!,1r0d¡,sÌ |n tn rmdñr rotlr¡! fh.4l]l9 mllllqlêdl¡n ln¡udtrq lh.ll¡h{llth.J.r!ñrd bf l¡r Onfliót un tu,lili CoõttæL .

4. EQUTPLENI, UAIERTÁIS ¡NO SERV'CEA fO SE FURHISHEÛ lY Coll$lÂeloRr The nücñircry, ÈqulÞmrnt la6a!, ffilêrlah, ruptlhs, lütwnlg, rwle.nd l¡bor hslÉñôr lì3ted, ¡îdüdin0 .ny lru¡Porl¡tlM..qulBd lù 6udl

llrmc, sh¡ll bo prwirod sl thó rc¡ kHlþn ¡t lh6 aPôDÉ ol Conl.ætd unlô3! oìheß{æ rclEd }y hi3 Ödtrct ,l,t Dillfng Rl¡ ¡S{ùl.Dt{orwll¡billly compleþ drfljnc i{¡, do.lt¡õÞd bt cmt dtr e! ¡ß Rþ }lo. la2. û9 n.Jq Ís ol.qúiFtunt b€l¡gi ôrurG: Mak€ r¡d Madal Pêr rJtr lnvf lllwl][lc¡od hmto rtrd ñ.{tr ¡ dtt htmL - ' Eôg¡mr: ¡¡akê, l¡od¿I, ánd H,F, *-

No ôn Rìg ,, PunË: flo, I Mðks. SJzô, ã¡d Porei ¡,1o, 2 MaNe. sltè, ¡îd Pmr Modld¡lô0Plnt:l¡tls.sl:..rndFw - 8c'ih[: Numbir, ¡raka, ll,P. ¡nd l¡, P oetrlclorMst Måkô,Sizs, 8nd Ctp.dty-

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g.û,P. CloJnO tJnii: I O.P. A@mulator

1,2 o.ri.¡( limkß. 4.3 ¡¡omâl elrlr€ê of d¡il plpô aod drlll t4¡¡ôñ ðledñêd €b@s. 4.{ 4.S CÍculôtj¡! nud pf!. +a Næsisery ¡lpê râdt ¡ñd d![¡nl uÊ hÊldal. 4.f l¡súl ô¡s¡¡ts¡oG{þd¡¡d{lþmbde 4.8 Shaþ Sh.ke.. 4,9 4.10 a-'lt a,,z 4.1 I 4.a4 ¡.f6 4,t0 4,1?

5. €qUlPtdgt{Í, M IERIALS AllÞ $ËRVICES TO AÉ FURiIISHEO BY OPERATOEj

l¡e n8clhBry. Gguipmen! lels. mlerlols. âuppl¡æ, lmtruME, ¿qNiS ând labø hereinatter ¡lslod, ¡n ¡rrding ãny lrá¡spôlállo¡ ÞquiÞd lor stldl 3lÞll be 'bffi, pMldsd sl lt¡e w¡l lel-þn 3t fh rxp9M ol ópd€b unlos olh€rs{æ tuled b, ülls Conkd 5.1 Fu(nirhsMtulnkifladoqs¡l¿mrt*¡y.nd¿ryæûgltoføti&,ri0hlsl.Ry,iñludiî!rlghtGçl-mylorfÌælandmltlíM.iwrtro8sìngs,i¡l¡hway Ê85¡ñgg, çrlo3 Bld dtdô grcú.

5,2 st¡k€ lGlk¡n, c¡t¡ sõ oóde l@ttn. sûd providå turuend, rncild¡¡g surf€cing ql*n ^@!ary 5.1 Te3t Gnkc wi{h plpê âM litlinlg. 3, Mud a(oõoe lônlce wlh plp. rod fûìgÂ. 5,6 Sep3.ãlorwilñ plpa ônd lî10n05. 5.6 Labðr ãrd N(elåfB 1o ønnd .nd d¡¡enæôt mlC Lnli, l$t l¡nk. and rud g¡! 4pór¿þi 5.7 L¡tnrlÒ dþconnectånd clean Lltlânti rnd ffúd oas sepaåld, 5.8 orilliñt nrd. chêm'ffili, lo.tcLú14þ¡ maldlsl. â¡d otÉrãddilB. t,0 P¡p€ ånd øngc1bn. fx oll ci@låüi! llN, 6.10 Labor tt HwqoilEJrcuþlno l¡tpi lðy. b{ry ord 6,11 ûrillìñg b¡10, reåm.r!. eælrdtt6ß, lbbik.Ã o¡d lpacillbls 5.12 Cst¡acl îsôing tæl ærykeô i¡d lqolæi(.l 5.1, WlÞ liné cqe lrlls ø h€adr, cw bsFol¡ ¡¡d wiÉ l¡o€ æ¡ô êldr€6 f roqlkcd, 5-14 Convêñlionnl æro b¡ts, 6ü9 gtcù3ts ånd ße b€re|¡. û,r5 ÞiâÞ¡d@¡e bst¡¡lwllh hê6d. 5.16 ¿3ftnt lnd c6æn(¡Oîêdlca. 6. 7 EþçtrËl wlreìi¡e lo0g¡¡g ffiko.,

1

S,l! Diediúsl. Élipd. or oths rpeclâl !Wç 6,'19 G!ñ oa jel pedorâ{irB *ûÈe! i.20 E¡pl6ives ¡[d shoolhgd6!¡È¡. S,2l Fm¡lim terùng, f4ldrsulic tåcturlh!, åcìdÞing snd ott!€r rolåM Fry¡F¡ 5.2¡ EqulpræÀl ld drill teo t6frng, 6.21 ¡¡(ld lørlnc !eß¡@s. n,24 Sidtr.ll @lng 6eto¡44 5.26 Welding eillæ tor *Hing bollom lólnrr ot æ¡ing.9vde 6hf, îoat ¡lw. fo¡t ø|h..¡d t¡ øoßírx $lh inrbllirF ot wll heða equipóeit ll feqelGd. 5.a6 Casing. lu¡riq. li¡eü, gêon, llml æ¡166, guldÈ.¡d lìost shoæ eod sssl¿tod oqulmdL 5.27 Csmg stålchor¡ ðnd ænLali¡ñ. 5.28 Wellh€ådønèclþnraôdôlleqüiFNnllrbhslâi¡€dino.mwel¡oronthsFr€mgs!tüurelnqún€donwilhlêsling.æmFþlìonañoærsürnorwall 5:9 Sfclal or ¡ddèd ltorãge lor hld oÂd !h!mç¡19 5.J0 Cêsrnghêad. API scrie!, lo ølo{fr lô ìhrl ÉlE{ñ ld l¡e blñut pc!Ðle6 sp€'ñed in SubpðãgÉph 4 1 ¡bov€. 5.3t 8løùl p¡evo¡la tslng pácko{f an6 te.tnq qfli@s ¡.!2 Aeptac€ftñtot a0P rubbeß, oþruû dnd eol6, ilrEquied, áltôr anìlbl{e¡l t.33 C¡singfhød Prol€rtoß å¡d Cå3hû Llbr¡dnB 6.!4 H?S IrsÌ¡ìn0 srd.quiÉrKlâtlwMry or ¡s requlred by låil. 5,35 Slla slpt¡c ¡)s(an¡, 5.t6 ñlk¡lÁÀ róilñd dõlnd k.ltôó 5.lt 8,16 5.¡3 5,lo 5,41 6.42 5.43 3.14 6.46 5.{S s.1t 5.48 5.a0 3.50

aU S 4ñd Cod{¡ - 'E ôU ¡' . Þgs 4 Füû þ¡wìded b| Foms On.A.Bsr Copylght O 2Ò03 lntmâl¡onÞl Aesislion of Oritlino Cülractdr (214) 310-942e . FomoúOirk æñ o o ¡. EOUIP¡¡ENI, IIIA]ER¡ALS A¡{Ò SEÊVICES TÔ 8€ FUR¡IISHEO DESIðNATED PÂRÎYI 'Y $! lollowlng ¡urùered ileñÉ, ¡rcludiñg ãry t'¡nlportâdon TIE mec+lin€ry, óqu¡pmnl. tools. mledatr. 3uÞttie5, lntfrumnlt, ærulcæ. eø lâbd lillêd sr , requirêC tg Ewh i€mt un¡sr otËwks spGdñêd. sh.ll b? provllâd â1 ths rell lo@l¡¡m ánd âl ItE spsô$ ot lha Petlt heæb rs d6iqnôled U å^ X mrt in l¡€ sPproÞdnl€ ølùm To B. Plovldod Bt ond ,U lbo Ëx¡.do Ol lloñ ororlor Co[trtctor 6.t Qôl¡rrônd RuMy3.,,,... x 6,2 OitchBs ånd sùtr9:. ..-,. - 4.1 6.4 Fuél U¡N6 (l€nof' ____jllihj4u-) x 9.6 Wãl€r Ðl waÉ.l4ciud;nt rsqulrd påfiils . . x 9,5 Wal€rNll. irKlud¡rn Hûìcd æhils x 6.7 Wáler lide6, i¡rdÍdl¡g rgqrired pfm¡ls t G.t Wôlersto¡ag. bnl€- spsc¡ly lPêt dg ¡nwfitoryl ,,.. - ..... 6.t PéuÞ,û wrhr $d iðlt¡ed rd{r,.,-.. ...,......,........., 6,r0 läbor 10 op€rale walerwll d sålg pump {Rlg c@ sly). .,.,,.,,......,,... .. .. x 6,,t1 Móiñt€En6 o'qalerwell. itrequißd..,. .... 612 Waler P!ilp,...-.....-....,. 0.14 Fú¿l for Mbr pùmp,....,, 6.11 Mãtslor€ngines and bq¡lef!.qt rÉlo€ ên{tftud punps-., -..,- -. .,....." ,

8.lõ T€nipo(Átlon ol Conlfætgf! gopedyj lrt]ve ¡d.-..... . .. sæ Prmnoh l.l SB P¡mnÞh ,1.2

6.16 rio ¡nddornck ,..,.. NIA N'A 6.lt

x

6.lt Ke¡lyjginfs. sùb!, elevaloß, 10196, rlip! and 8OP ÉnE lgr!*hfü 9þ61ôl dill x 6.13 0dÍ p(o&1ø! re Kally þlr{ s( c¿clr Jo¡¡t lnslde ol s!.laæ Csrlo0 a¡ reqolrcd, !ldngô qî drilì Fpê.,- '. ., ",...

6,20 û¡ill plpq 9rc1æld1 lol K€llyþl¡t ¡rd dr¡'l gp6 runîlno iñidÊ ól Prc'lÊ.lior crr¡ng_..,, .,..,. ...,... ..,.,. , 6,21 F¿leo{pe¡dotonrecddingd€vlæ{EpôchrlÉkonl¿l.,...,...-.,.,......,....,.,.. x Ê,22 ËxÍs labor fd ruñniîo ând €Mll¡g @¡rÍ (C8¡l¡g ffffr) ..,.,-....,.-..-.. .... .., ß.23 Cê!¡ng t@|s..,. 6,21 t ç.26 6.2s fúblñ0 x 6.21 6.ZS ¡¡ra t{/A 6.2Ò Sq@ åo¡le.. $tA N,À

6.¡0 Sêryr* 1üt Bdl MA 6.31 E.¡? Mous Hole g^¡3 Rêsqde Pilt...,..,... 63{ UDpe. Xolly Cæk........... . . .. .

6.¡5 Lffir Kelly Val€..-..., .. x t.36 Drill Pìpe SalôtyVolvê-. x 8,3? lnrrdo gtqþd Êrev¡ñtêr,, ... . ,,,......,., x 5.Jt Dril¡in0 hole loa ü drivino fq condúdor úpe,...-..,. . x 0.3¡ ôhàr06. æst ol bondâ lctr publlc roadl,.-.-. ,,,, .... ,,. )( 5.{0 Porbþlêltlel.,. ., 6.41 Trash Ræphlo. ....,., .. ,.. 6,a2 l+*t¿hlþrs[ofê shâk8 (Per r1g lnwntol]] . . .

8_¿3 Shâl! Sh¡kq Scren3,. ,

6.14 Mud Çle8ne.. ..... t.G Mu{rca5 s€p€rator..... x â.¿6 e.47 x 0-¡0 X 0.40 Cçnfrlu¡€ ,...,. .... X 8.ãd Rolåling Hred 6.91 RolstjñO He¡d Rubb€m ---,.,.. 6.52 hydn0ricAdjullabÞchokþ.,,...,..,.,.,......, 6.5r PitVcluû Toblilsr 3,õ.1 Conmmi€lioh, lyoô@...., x 6.66 Forkm.€paclly- .. 6.ó8 Cr¡Nio¡ l^hibjlø lor ratet.E drillskìno- 6,t1 ã.58 0.G9 8.60

lu,S O.fre Ce.ñ -'útutr' Bø 9l Foro prcvídgd b'y FoN On.A-Dl8k CoF/yrirhr ô 2003 lñlgrdlonol A5s¡ôliæ o{od[ng cs(rlclo6 {21{) t4&929 . Fam6O[ÁOhk tr

O o Røúd AgX, M3 7. OTHERPROVISIONS:

lu.ö O¿Wú C!ñâü -'Ethlú A'. PrF 4) FmøqYided by Fm¡ On.A.Dlsk Copyilghl Q 2003lnt€mtÉn¿lA3s6otlon ôf Or¡lllng CsrÊclañ {214) 340.9423, FoñsOñA0l¡k.@m

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*a t*,* **, * fqt¡rÉd br lûs. æ lìcofpmlê{r 0r Cohtrttiùy rel€ûþ3 ð tf li¡lv rrt olÁ:

ln

(,ll rÌeEqullotpôlturltycl.Hrrl.{rl¡.dlfi41cfR00.t.a, (21 n Ailml¡I. Ac$or Clrw prelbrd ln 41 CFR B{t¿õo.a nordlm 6lanú ánd Ë'çrn. 0t ürq l/lrln¡m æ. (tl 'lì. Alfnndve ¡¡{on Clil¡r til hlndlu!?€d vrórt É pllrc'l!ôC h lt CFR 80-7a1.4. la' ths Ccr{ícaüon olo0mpl¡ån6*hh Enrlrümsnhl lM pr€acrlb.d l¡40 CFR lú.20,

lü.ô ô¡tættoo,û!d.'Êrlfdr9'-að. r, Coptl¡hl ê 200li lî¡m¡ionC Aqôdrtlotr el Orfi0ng Conürdo6 Fm glvld.d by Fmoi{.ûlú (f 14) 1a0.9a20' Fom.On^Dldicoor @

a EXHIBII'C3

o

CONTRACTORS SPECIAL PROVISIONS

1. Conlrsctôr 6hall fumish inilÌal tesled ennulár pßvor,tlèr elerËnt. lf lhê olêment is damsg€d due io dç61ß¡ct¡ve elemsntÊ ¡ntroduc€d lo thB rnud, gftipp¡¡g, or êxcessiv€ lesting, lhe OpeËlor âgre€s lo fumish a nerv elemðnl.

2. Chemicsl Addltives to the mud for prevenling ox¡dalion of ths drlll slring and hydrogen sullids âcåvôûg¡ng cfiêmlcålô lo trodt lho mud of drllllng lluid as necessary to remove ell taaôes of H2S and lo conlrol o)rygsn @ûosion to bs lumished by lhe Oper¿lor.

3. Operator sh6ll lurnish a{l làbor, oquipment ãnd mslerials to c]eãfl rig ¿ffer use of oll båÊê mud and/or cômplâl¡on fluld.

4, Extrå cost to rlg up to¡ drlll¡ng with oll base mud lncluding, Þut nol limited to, (hâ togt of pit covsrg, slaam clêaners, driÞ p9ns, mud vacs and cleân¡ng matoriaìs shall b6 ât Operâlods expens6.

ã. lnftiql lnspeclion of âll eon{râctols drill plpe, drill collars, kelly, kelly ioints, valvÈs, ßubg and IIWDP Éltäll be al Contractor's e)çense. All repair¡, roplacemeñt3 ãnd hauling for ropaiß w¡ll be ãt Contraclo/s expen6o. (fh6 lnsp€ôlion will bè lo T.H. Hill, DS1, Cålegory 3 or lts €qutvslenl.)

6, Subsequent inspec't¡ons (¡ôcluding the ¡nsp€ctlon at lhô ond of the job) of all drill plpe, drlll collao, kelly, kelly Jolnts, vålvðs, 6ubs and IIWOP shall be al tho Opêrâtot's expen6e. All repairs, rgplâcements ând hâullng for repairs wlll be rt Operelofs ðxpenss. lïìe lnðpeclion w¡ll bÊ to T.H, Hill, DSl, Câlègory 3 or ils equ¡valent,)

7. Opðrslorshall furnish all sc¡ê€ns for shâle shskers.

L Opårelôa shall lurnish sll potable wat€r lor Opêrator snd Co{llractor personnâ|.

L Ôporåtôr, Ope¡alor'e repmsentalives ând Ope.a{o/s sub-conhaetors shall úuppol Cont¡aclo¡'s Salety Polides âôd ProædurBs ln general end ln particular, will comply wlth all Conlraclor'8 pgrsonêl prolective equipmenl requlrcments,

10. Operslor will bo r€spon6ible lor fhs provìsion snd malntenance ol âny sì16 seplic syster¡s.

11, Cont€clor w¡ll provlde only ón€ s¡ze of mud pump l¡nBrs, Any addilional s¡zes required by Opôrstor will bB p¡ovìded by Operalor åt Operâtor's cost.

12. All thlrd party equipmont required 10 nipple up/nlpple down 8OP equlpment will bô pjovided ând pald fÖr by Oparator.

13, Thâ lâtBs contaln€d in lhls contrâct âre bssed oñ the rig lnv€ntory attached hereto. Any modifcation or additlon to the rlg requêgiêd by Op€rstor w¡ll be â( Oporalo/s expens6.

14. Operator shall lðsl BóP âqu¡pmðnt al inlsrvâls as specìfìed ¡n lederel, stâts or locål rsgulâlions, API R€commended Practice or every tw6nly-one (21) dâys whichevea int€rvâl is more slríngÊnt. Al¡ tostlng wlll bd pârtormôd by ån ¡ndependenl lesiing company prov¡dêd and påld for by Oporator.

15. ln all cases whåre Conlracloas employeêG (includlng Contractor'â d¡rect, borrowêd, speciâl or stålulory employoes) ârs covered by the LouisiÊna Wôrker'B comp€nsdlion Acl, La. R, S. 23:1021 et Esq., Öperator and Coñtraclor ãgreâ lhåt âfl work aûd operal¡ons perfor¡n€d by Contrãdor ând ¡ls emplôy6ês pur6uant to fhls agreemenl are sn inleg€l pårl of and Êrê essentlel to the ab¡liv of Operalor to gen€rale Operðtods goods, prôduct8 and service8, Furlhemore, Operator ånd Côntã61or ðgreè lhâl Opgralor 16 å stslulory €mploysr of Contractols €mployoçs lor purposes of La. R. S. 23:1061 (A) (3). NolwilhstandÌng Opsrator's slatus as a ststutory smployè¡ o¡ 6pêô¡âl employsr (âs delìnod in La. R. S. 23:1031 (C)) ol Canlradols €mÞloyÞès, contrastor shell remelh pr¡marlly respôñslbls lor the payment ol Loulsiana Worko/s Gompensation benêlìt6 to its employoos, arìd shall nol be entitlsd to seek contributlon fóf åny such paymenls lrom Oparator.

'16. opeÍâtor, its parent, subsldlary ãnd ãflliâted corporalions, as well as the emplôyese, offcors and dhêotors of each (ællectively, "OpBratof) is côgnlzånt of t¡þ Nabors D¡spute R€solutlon Program 8nd w¡shs6 tô become an Eloclirìg Entily, a6 deflnod in thâl Program. Actordingly, Op€ralor edd Naþors lnduslries, Inc. (Nsbors.) h€reby agr€e thål Operetor ¡s ân Elect¡ng Enlity as to all Olspules bolween Operator and thå plesent and former Employees ând Applicants of Näbors pursuant to the Nabors Olspute Resólution Progrgm as it curently exists and âs may be amÞnded from time to tlmê, ln th€ 6venl thÊ Progrâm ¡o alnend6d, Nabora egreea to provide â copy oflhe amendmen(s¡ to Operator, Opsrâtor may w¡lhdraw this sleclion ¡o panìcipâle in ths Progrårn tt any time Þy g¡v¡ng notice of such wilhdrâwaf lo Nabors, sucb revocãt¡on to be efedive wilh respoÇl to any claims nôt yêt ¡nslllutéd as of lhe dale of revocatión. Operator unds¡stånds that ¡t 16 bound by the tsmô of lhe Progråm with respôôt tó âll D¡sprrtâs wllh Naboro employoes, fegardle$s ofwholh€r such Oisputê lô lnlt¡åtod by lhe âmployê€ or by OpÊrstôf, Oporalor and Naboß acknoulodgê lhat the Progrem does not apply to digpuleá between Opêrátor and Nabors ond that lhe Program dogs not ãlter lhê teme of ãny ¡ndêmnllcâtioô agreemont b€fween lhem.

17. ln the evenl Opêrâtor êlêcts to dritl â subrtitute well il 6hall be Operato/s obligation to advlse Cont.a6lor ¡n wdtlñg ôf 3uch chângê, NotwÌthslanding Operator's tallure to nolily Conlñclor ôl such cheng€, the terms of lhís Contrecl shall apply lo €uch subsliluta woll Ès if sud¡ subsl¡trrlè $rell w€r€ the wêll spêômd in Påmgraph I ol the Conlrad.

E¡hibit_C_0

¡o NABORS DRILLING USA, LP Rig No.712 Dle*l Electrlcland Rlg

DRAWWORKS¡ Mld - conunent u7l2 FJ|., wlth an lnput ratlng of 1,000 horsepower, Baylor 6032 Dynamaüc bfake, crown-ùmaüc and Fogter câÚìeads. Drum ls lebus grooved for a I 1/4" drillhg line.

PRITTIARY POWER: Three Cåterplllat Þ399 englnes rated at 11215 horsepower eacrl, drlving three KATO 1030 l(W generators wlth ð Ross Hlll SCR system,

MASTI Dreco 136' cantílever, 136'clear helght x 21'bas€ ât floof. API stàtic hook load of 571,000 lbÉ. v 10 lines süung.

SUÀçTRUCÍUNG: Drcco'Sllngshof', wlth a 22'f,oor helght and 18'clear height under the rotary beams, Subsbucture ls deslgned foi a 600,000 lbs. caslng load slmulÞneous wlth a setb¿ck load of 350,000 lbs'

MUD PUMPS! Tlvo Gardn€r Deñver PZ-10 triplex mud pumps rated ãt 1,300 horcepower each, drlven by one 1000 horsepower GE 752 motors eadl.

MUDTANI6: TWo tanlÇ 970 banel system wlth a 75 banel slugging compartment in the sucüon taok. Mud sysGm ls equipped wlth strring guns and clean out gåtes. Mud mlxlng ànd 10 HP rnud agltators'

SOL¡DS CONTROLI 12 cone desllter.

2 cone desander, Two linear motlon sh¿le shakers.

WÀTGR SÍORÂGE: One 500 barrel tank,

FUELSTORAGE: One 12,000 gallon bnk.

HOOK/BTOGK: BJ 5350 Hook ånd Naüonal 545G Block, both rated at 350 tons'

SWnlELT cE L8 400. 400 ton,

ROTARY¡ GD27 U2'.

ACCUMtII-ATOR! Koomey, 180 gallon, eight staüon, wlth ðn elecsic powered trlplex pump, two alr operated pumps, regulaüng valves ând e¡ght staüon remote conhol,

BLOWOUI One 11'x 5,000 psl, Annular, H2S Trlm, PRE\IENTERS¡ one 11" x 5,000 psl, Shgle ram, H2S Trim, One 11" x 5,000 pd, Double ram, H2S Trlm' one 3 1/8 x 5,000 psl, chol(e manlfold, H2S Trim,

DRILL PTPË! As per conbact

DRILL COLI.âRS: As per conbact

M¡SC, EQUIP}IENT! AutomãUc drlller One alr holst Wírellne unlt 0-7 degee dñll lndlcator 4 Pen drllling recorder tower Kelly valve Upper Kelly vâlve Inslde BOP h.rll opening safety valve 5 %" x 40' Hex Kelly vapor proofllghting system Kelly spinner Splnnlng wrendì

a EXHIgIT'C:

o

CONTRACTOR9 SPECIAL PROV¡SIONS

1. Con1mctor shall fumlsh if,itiãl teEted ennulår pßv€ntor êlemnt. ll lh€ elen¡ent is dsmsg€d du€ lo dç6truct¡vå elem€ntË introducêd lô lhs nud, Stripp¡¡g, or excesslv€ testing, lhê Opsrutor agfæs lo fumish s new elodonl.

2. Chõm¡cål Addlt¡ves to lhc mud for prevenllng oxldatlon of lhe drlll slring and hydrogen sulfidå 6c¡rvêng¡ng €fiemielð lo tÞal lhe mud or drllllng lluld as neæEsøry lô removs all traôes ot H2S and to control oxygen coÍos¡on to b6 fumished by th€ Operâlor.

3. Operålor sh8ll lumish âll lsbor, equipnenl ãnd materials to cleån rig sfrer !s€ of oil bÊÊê mud âÍd/or cûmplêl¡sn lîuld.

4. Extrs æst lo dg up tor drìll¡ng wilh oll base mud lnclud¡ng, but rot limited to, th6 co$l of pit ævaß, gtsam clâanerg, drip pans, mud vaß snd cleân¡ng mator¡alê 6hall bs at Oper€lods exp€ns3.

5. lnitiål ln8pection of all Conlrâctôas drill plpe, ddll coll¿c, kelly, kolly¡ohls, valvs, Èubt Ênd HWÐP ôhall þ€ ql Conttedofs Éxpsnse. Al rep6ias, replaæmenb Bnd haul¡ng lor Fpairô will bð â1 Contraclor's 6xp€n6e. (Ihs ¡nspscl¡on will bê lo T.H, Hil¡, Dsr, cølègory 3 or ltê équiv€lent.)

6, Subsequent lnrpê61lon0 (iôcluding lhe in€Þecllon at lhô snd ol lhe ,0b) of sll drill p¡pê, ddll collaß, kdly, kelly ¡o¡nk, valvB6, subs €nd IIWDP shâll be at lhâ óporalois expome. All repa¡r8, replâc¿ments and haullng lor repaiß wtll be åt Operatofs 6xpensè. (Îho ín6peclion wlll bê to l.l-1, Hlil, OS1, Cátegory 3 or its equlvâlenl.)

7, Op€rÊlorshall furnish âll sãèens tor shâlB shsk6rs.

L Oprråtðr sh6lf fumßh åll potable wal€r lor Operetorånd Cmlraclor peßonnê|.

9, OpsratÒr, Opslator'g r€pÉsenlaliveE Ênd Opeðto/s sub-conlrclors shall suppon Cont€cto/s Sâf6ty Pol¡cieg and Proædurss ln gensrål ånd ¡n particular, will comply w¡th all Contråctor's poroonã¡ proleclivs €quiprcnl requlEñen16.

10. Operstor w¡ll bg r€sponsiblâ for lhê provislon and maintenancê of âny sll€ 6eptic systems.

11, Contráôlôr w¡ll prov¡de onþ ono size of müd pump l¡neß. Any addllìonãl s¡¿ôs rsqu¡rèd by Operalôr will be providèd by Operator ãt Ope6lor's cosl.

12. All lh¡rd party €quipmênl rèquìred lo nipple up/nipple down BOP equlpmênt will bå prcvíded âñd pald lor by op€tator.

13, Thâ lâtes antdn€d in thls ContEct àre b€sed on thÊ r¡g i¡v€ntory atlached herôlo. Añy rnodifætíon or additim to thê rig requosted by OpÉr6tor will b6 st Oporälo/6 sxp€n8e.

14, OpeEtor shall lest BOP èqu¡pmenl sl ìnlBNals as spæilÌèd ln fedsral, ltâlê or loel rågul¡¡liôns, API Rsæmmended Piecl¡æ or every tw8nly{ne (21) dâys whichev€r ¡nlsNâl ¡s mre str¡ngont. All t€sling wlll b€ pertomed by 6n ¡ndepsndenl têsting æmpany prcvidêd sîd pâld fôf by OpÊrator,

15. ln all æses whsre Conlectofs eop!öyeeÊ (tncludlng Contractor'Ê direct, borrowed, spec¡ôl or slålulory employe€3) år€ covered by the Lou¡slane Worker's ComÞsnÊôtion Act, La. R, S. 23:1021 el ssq., Opemlor åod Conlmçlor ågræ thâl all work and opsÉtims perfomd by ContødoÍ and its enploy€€s putÉuail to (hls agreement ar€ an inlegral psrt of end årê €ssentlal lo the âb¡l¡ty of Opåråtor lô g€ñeEle Operatgr's goede, prÒductê ånd servlce6. Fu(hemore, OpeEtor snd Côntractor dgrce thât OpqËtor ië a slâlotory €mployÊr of Çonlr8cter'B €mployæs lor purposes ol La. R. S.23:1061 (A) (3). Notwithsland¡ng OpêÉlor's slalus €9 a stãtutory smplóyer or $pecial employsr (âs d€nn6d in La. R. S. 23:1C31 (C)) ot Conlrâdols €mployÞès, Conlractot shall Í€maln pdñar¡fy r€sponslbls lor the påymont of Loulsisna Worke/s Compensalion bonelìti to its employsos, a|ld ghall not b€ entlllsd lo seek contrlbullon tor any such paymânlt from Operaloa.

16. Opêrâtor, its parsnt, $r¡b8ldìary ånd sflìlioted corporåt¡ons, âs wsll as lhê €mplóyo€s, officôrs and diractors ol éaoh (wllec¡ivsly, 'OÞÈratol) is cognlzânt ofthó Nabors Dlspute R€solut¡on Progrôm and w¡rhes tô b€coma an Elðctlng Enllly, å8 dènnðd ln fhål Pró98m. Acf,ordingly, Op€rålor end Nsboß lnduslries, l¡c. CNEboß') h€reby agr€o that Operåtor ls ån Electing Enllty a6 lo all Dlsputes botween Operalor and thê present end former Émptoyees ônd ApÞlicanls of Nåbors puGuanl to the NaboF Dl8pute ResÒlullon Program as it curently exisls and Es may b€ âmended from t¡m€ (o tims. ln the evenl ths Progtêm ¡s slnend€d, Nâbors êgree3 lo provide a copy oflhe amendmenl(s) to Op€lator. OpêÞtor may w¡lhdraw this elec'tlon lo psrl¡cipâte ¡n fte Program âl ãny timé by o¡v¡ng notìcs of such withd.awal to N€borã, such reÞætlon lo be gfbdive wilh respocl te any c.laims not yet ¡nstflúed es of the datê óf revæation. Operator undèßtsnds that ¡l 16 bsund by the l6m6 of lhe PfogBm with resÞêcl to âll Oísprrtês wllh Nebors employeeô, regârdlss ofwhath€r such Dlspute i6 lnltlatEd by thê ômployæ or by Opsfatof, OpeEtor snd NEboß acknowledgp thst lhe Program doos nol apply to dlspulès betwæn Opêrátof âñd Nãbo6 end that lhe Program dos6 not aller lhe lems ôf âny ¡ndemnlliøt¡ôn agreem€nt b8tweerì lhem.

17. ln thê evênt OpåÉlor elects to drill á suþFtitute u,ell lt shall b€ OForâtois obligat¡on to ãdvlse ContEclor in wfiting ol such change. Notwìth$landing Operalor'G tallure to notify Conlråclôr ol such cñáng€, lhe lerms ot lhls ContÞd shall âpply to 6uch substitule w¿ll âs il such subsl¡tule wêil w€re the wêll Êpeclfied in PBEgÉph I ollhs ContÞd,

Exhibit c ol r**-t3)

EXHIBIT "1D-1"

NOIE1 ïtir fqs ¡¡ us d Urh ol Àm 'ltE po.tlüü or Cohpuls Revlsed Aøi¿ 2(103 INIERNATIONAL ASSOCIATION OF DRILLING COÍ'ITRACTORS DRILLING BID PROPOSAL AND DAYWORK DRILLING CONTRACT - U,S.

TOi LÞ

Pleâsesúbm¡l bld on lhls dr¡llino æntüclfqn lor pe¡fomlno t¡e wryÌ outll0ed belfl, upo¡ the lems and for lheænsidemtlon sol forlh, wllh tho undsÉtandlñg thal ll{he bid is a@ptod by this lnstrunr¡t witl ængtllute I Co¡trac1 betwsn us YouÍ bld should be mailsd o¡ dsliverod ¡ot lalo¡ than P.M ô¡ , 20 ,

lo {hð aollowlñg addÉgsl -

THIS CONTRACT CONTAINS PROVISIONS REIåTING TO INDEMNITY, -

RELEASE OF LIABILITY, AND ALLOCATION OF RISK -

SEE PARAGRAPHS 4,9,6.3(c!, l0¡ t2, AND'14 Thh Contret¡s mâdô snd enter€d lnlo on the dete herojnaftgrst lodh by and between th8 padles hereln dssl0¡åled as'Operôtoiand'Co0tr80lor,'

OPERATORT Pennv¡rdñl! ttc Êmr0y.LLC - Add.o66i llowe'trl Sultä1000 " .

fdil, Oklshomô t,ltl9 _ CONIRACTOR: þÀÈôÞt nex I ttrê lts r Þ Addrols: tttw.Cffitnqd,gull0j9"W-- __ - _....

Iexs¡ 77007

lN CONSIoERATION a! lhÊ nulual promlBês, ændìtions ê¡d åoræmeñls herel¡ æhl¿lnèd and the spêclfEt¡on! .nd 6pælal provlglan3 3ol lo¡tb ln E$lblt 'N 8nd E¡hlblt 'B' otlacfud hgr€to snd mado r part herêol (lhe 'Co¡lrdcf), Opei¿tor enoogês Cqlßctor as an l¡d€pendent con(ræ|tr {o drlll ft€ ho.€¡naft€. doslgnal€d woll or rells l¡ soarch ofoìl orgås on a D8W!.k Beslg.

Fq pu.poæs heræl lhe term 'Dswork'ot 'Dsywgrk Bgsls' msens Co¡lmclor shâll tumlsh equipmenl, lsbq, sßd pelom gery¡cEs rs hoBln govldsd, lor 6 lpêcllled lum psr day lnder thg direcl¡on, superyl6lon 8nd €nlrol gf Op€.atgr {inclus¡vo of any employæ, 8gent, ænsullsnl or subqlråctqr engaged by Oæmtor to direc,t drillinû op€râllongl. ,Vl9¡ opênllñg on . DøWot* 8tslsl Contnctot ahatt ba lutly paló ta aho âppl¡cabta nlú oa pãynønl ¿nú úsúmæ on¡y lho úllg.llont 6nd llsbltltleÊ statad heftln, Excêpl tot 8[êh obtlga{ons anó ilahillt¡os t6sumè.1 by Coûaâctor, Oponlor ôhall bo aololy f.rÞontlhlo tnd ætun* 'p.êítcaily ll¿blw lot til conôsqueîcøs ol opanltons by bottt ¡¿rltoE whilo on a Dayvêù gagls, lncludlng ntuns and all oahet ì1616 at tlsblllllos lncurcd tn ot lnatd.dl 1o sùch opoñllús. I. LOCATION OF WELL:

Woll Nam and Numberl çt -got+ ¿ê-

P€{¡€lì/ Cou¡tyi sraro: Oklahoma W€¡l l¡lrl To be advleed 3è-

lesse. 2. CO¡{MENCEfiiÉNfÞAlËr Conl€qtq¡ agrges lo uF GBB@¿ble eflofu to æmrere fqr lhe drill¡no ol lho well bHàe

untll ths locst¡ón lr

3.lwsllDopthlThowoIl(6}shallbedrillsdloâdspholspproflmtelyTBAFæI.*b*E-

þffitt9q.{þl€às€++Ê¡90p€r, Þu( t¡e Contractd ¡iâll nol be r€quired hereunder to ddll sld wll(s) b€low 3 mxlmum depl¡ of [eel, unleõ¡ Cgnlraettr and Op€retor muf uÐlly ag.æ to drlll to ð Eeâtêr d€plh " Not þ êxcood capôclty ot rlg ar dosf lbgd on tÀo lg lovontory ôtt¡ohod henln, 4. DÂYWORKRAIES:

Cmlråclo¡Êhal¡ þe påld atlhe lollow¡ng râlês lorlhô rcrf polom€d hdeünder. 1. I lrlobll¡rdloni Opèrâtor ghsll pey Contr.Çtgrm¡bi{*úmlç¡f{ s â mblllatlon day Þts or s dey. lull rt l¡M tho,ig is riggod u-õäFäGñããTäñãiËiiììF -----M991-

ready to sp!d. li,tobttt¿stron strat¡lñõtu¿e

4.2 Damobltl4tlon: Op€Etor Ehall pay Coîlrðctor.¡€æb$þ!@¡ee{f5 q ä dôrcblll¿süon day rate dshg.{g¡FdwHf ¡ { 7r000t per day, provkted horever th8t no denoblllzåtlon læ sholl b€ paysblo ll th€ Conlract ¡s lemlnôlèd dlo lo lhe lolal losr or d€slrucùon ort¡q¡s Duffit,'ær¡on. e, !þ down ând fomove f¡g f¡orn the flnal woll loçåt¡on end, lf appllcablÊ. movo the ¡g to the nearest su¡table 'Plua actual costs of trucks, cranss and permits and $4,500 for manlifts, light towers and strlng dFh rs¡v¡cos. ---"í¡l¡o$îg*ât ÈDrrl¡ûi{*tkm{ì¡r¡üi&lflmnþorlmå6drtilG+b6¡flH{,¡!!¡${,ffiffigs reFoBl€+€års".y Cel€€le€.s4¡ Fs.¡sph¡¡,lesl34)àocr-Cs* 4.4 ôporuUng DÀy R¡te: For rc¡k perldmod per lwentyldr (24) hour dsy w¡lh Flvs (51 man gfl the op€r6ünû dgy ml€ shãll b6:

D€pth lntoml6 Flom To W¡ûout Drill Plpo Wth 0rlll Plpr 0 Rlo Release t_þp!!l_nerdar 20,000r' pet dày per day par day

Pq dâY por day

Using Operolq'¡ dr¡ll pipo S 20,000* p€r dÉy. "1he OFñünq D¡y R¡to lhclldoe ¡ cân.¡g top dr¡vo. The rats wl{ bêg¡n whsn lhe drilling unlt is rigggd up at lhe dr¡,ling l@lion, or poslt¡onod over the l@l¡m durlng mârin€ wk. ¡nd rcady lo æmrenæ operallong; and will ceaso whrn lhe r¡g 18 roadylo bo mgv6d of !h6lMt¡on.

(U.5, Copydghl O 2003 lntmãllonal DàtrÀ Conk¿d - ñsa I I AsslaUon ol D¡llllng ContracloÉ Form proY¡d6d (214) 340-842S :ffiffiäåffi",@ EXHIBIT ''E"

Rørltod Apd, 2003

ll lnd€r lh€ sbovg ælúffi 1¡r[¡ Drlll P¡p€- no Þle! are spq.il]ed, tho râte ¡et twgnty.loqr hoúr d¡y vri.o d¡lll plp€ 19 h ugo shóll bo lho spplløble ralê spsllisd ln lh€

@|!mn.rJ¡lithout Oriìl P¡pe, plu6 ømponsatìon lor ¿ny drlll prpe AClually lr€d sl the tål6s sp€clÍed b€lw. @mp!l8d on l¡6 basls of lh6 môxlmum ddll plpa ¡n u60 at any

dur¡ng €qch tw6nty'lou' hou¡ dôy 'me DR.LL prFE R 'tE FER 24+rouR oAy OlHllon!l or Str.lght Hoto sl¡s Gndo Uncont olllblg o.vlalgd Holo 6lze Gr¡do

¡ NIA NlA perfl,

s -, IVA pe,n. N'A per n.

¡ N/A per n N'A p€r lt.

Dlrctional or unæotrolled d€vlaled hofe wlll be dosmed to exl3t whsn dovlelioñ ôxæ€ds d¿g¡cgs ol when the chsnge ol trglg oxæed8 dogræ! t€r onc hundrcd fêal.

Ddll plpq lhait be æn3¡dôrôd ln use ¡ol only when ln aclugl sE bul slso wh,lo ll lË behg plcked ùp or l0ld dwn. When drill p¡pê i8 ståndlng ln lh€ dotrlc¡, ll shall rcl be @nsldqed In uæ, provld€d, hMvf, lhât ¡f Cffil€clor lumlshes rpedel etings ol ddlì plpe, drlll col¡åß, aûd handltn0 tæls as prov¡d€d fot ln E¡hlb[ "Æ, lho 58re ôhsll

- õhall frgçlign9 af sn h@r be @ns¡dor6d in æmpulin0 ths ¿munt ôl tlmo drlll -

bo çgngld!red ln uqe et sll llmes whon on lo@l¡on or unll¡ relersed by OpeElor, ln ¡o evenl pipe ¡e ¡n use bl.{ such l¡m€ shsll be ærpuled ts the æerBst hour, wllh lhirty m¡nstes or rcr6 b6ing Ðnsid€rsd 8 full hour end lsss than lhlrty mìnutes notto b€ @!nted.

¿r.6 Rop¡rr rlmol ln liE ev€nl Il ls næessary lo shll dwn sorulclng,.-t"Í3'.lrHlF.tlnlit)

"^rjjlj;llâf,,!:Þú6,hets lorany one dg rep8irlob. but not to çxed @mp€ns.tlm rt th6 rpprlqblÞ rål€lor suc¡ sh0tdowû 0n€ up lo a max¡mum ot'ji¡ltEilL: ot such omÞenÊâtìon lot âny qlmdsr monlh. ThôGaftôr, C6trsslor 6hatl be mp€nÉtod s¡ ð rale ot ¡------lljq19l-

exdudirE,ouljne ils

-!¡lEgutlllt- houts per tw6nty.fdr (24) hoür day. Rouüno rl0

b

eeN¡c¡¡g lhall lndudo, bul nol be fimltsd to, cullru end ellpplng drilling lìn€, chan0l0g pump or sw¡vot oxpeodabl€s. tsllog BOP equlpmnt, lsbl€tlño rig, 8nd nor[r¡l .lo tnd te dr¡vrJilflntonlnêo- Whon tso fll md õsño¡ ¡n ffiulnd ìo br dôd qlñutLmturlv- lh.llm. !mñt chrfilno ûrmnd¡bþ wñö Hrtl !h0ll EE**acsE:mraüitutrirnrö¡v¡ñi I

i

4.6 Et¡¡dby llnt ñrtr: f____l________-l_ pairmñly.f@rtz4j dsy Sundby ilm llB¡l b! dqßEd lo lndudo tlm wtwñ lho do b shul dM slÛweh in rudn8e I

to b€gln or rô6ume opeBl¡ong bul çanlraclor ls wqltl¡g on ordeßotOpsåtor o.on maledÞls, sN¡æB or otherllemr lo bâtuml8hed by Op€ralor

4.? Drllllng Fluld Råt¡s: Wheo dr¡llir{ flutds ol s type and cha¡€otedsllc lhãt inæases Co¡iEclu'ð o@l of perlonanæ he¡eùnd€r, lndudhg. but not llmlled lo,

oil'besêd húd orpotãrsium drloride, are¡n u6e, OpeËtor shâll påt Co¡lrsclor in addil¡on lo lhê ôp€Ét¡n0 Fte Apæilisd abovg:

(ol û----¡0- p$mn pí daÍ fs Cortuof! rlg-¡lts pârsonnol I (ù) ¡_ll[- Þor l3y rddähnd aporalhg rfu o¡d I (c) C6l ol¡U l¡Þol, rubml¡nd Effl6! þlur lwmlv'lour l2¡ll houG op€rallno r6le to cleån rlg and .ol¡ted equlÞm€nt I 100% ql lh¡ opcr¡tìns õìfm--- I a.8 Fmô l¡tqru[ Rrbr ¡-J------::__:-- pr hrs[VJoú (24] hour d¡y lor any @nllnuous poriod lh¡l ¡omol ope€tlons aß suspended or ennot b€ |

qrled on duo to øndlllons ol Foræ Majeure Ês dolinêd ln PaÞlroph 17 hGreot lt is. howsvor, undeEtood lh¡l ¡lbject lo SubparagÞph 0.3 b€lo{, OP€rstor

€. teleâge lhe dg ln a@sdanæ wilh Opêrâtd's r¡ghno dir.ctstoppåoê of lhe wk, olf6cllve when cond¡tions w¡lt pmll th. rlg lo b€ mved lrm lh.,oc¿llon.

4.t Rolmburabtc Cottai Ope6tor lhall reihbuF€ Contfaclof lor l¡e @sls of mstüial, oquipmnl, wgrk gr eoryi@s tilch arê to b€ lsmìghed by Ope¡gtq 9s

prov¡ded for horoin bulwhlch fo¡ ønvanÍe¡æ g¡o gctuellylumlshed byContÉdorat Op€r€tof8 {éq!€st, plug ----.1!Ë9@jll!L æ@nl lor åuch øôt of handllng. wl¡.o, I 6l Opeñlot's requo9a ând wllh Conañclor's tg.o.moñi, lho Codlraclot lurnlshgs 9t Éøbcontaclt íot cetlâln llêmê ot swlcos rt rrcrt OpoEtorls togu¡rodh*ln to pftvld., lor putpæ.s ol lha Índonnry aûd.oros€ prcvlrrons ol ah¡s Conl¡acl, sald 6efr6 ot sarylcF shall bo dsoilod lo bo Opñlor luñltiú llañ6 o, .ed¡cet, Any tubconvaato.ô so h¡red shtlt bê dwêú 10 þo OpøÉto¿s aoøtßçtgr, .nd Opanlar shall nol bø Êl¡øvod gl any of ltô Uabll¡læ lo cgnnaçllon thèrev¡lh, Nolg/lhttandlng ah6 longalng, Conlñclo. ahall øol bo obllgÃd lo purch¿iø aûy tGûâ on bohaí oI Opønlot I

4.10 Rovlrlon h R6tsi Thê ßlo¡ and/or p¡ymnt! h6É¡n lel fo.th dug to Confaclor trom Opê¡.tqr 6hall b3 ¡ovi6ed to rellæt tho dts¡ge ln æslg lf tho wts ol sny

of lh6 liems hore¡nEfter llll€d sh8tl vary by nore than p€Enl fom lhe @sls lh€reof on lh€ dalÊ ol {hls Contract or by tho lsm !€r6nt ¿lter t¡e date of I 3ny rovls,on puÉlsnt to thb Subpë60¡åph: -¡!tglgl-

(å¡ Labo. @st6, lnclud¡¡o all b€nenb, of Conhaclor'6 per6onßli (b) Contôdor'8 @¡l of insuEnæ prènlumB;

Co¡keclor'g @st of fuol, hcludlng all tgx€s and fæs; the æ3t por gâllo¡lMcf b€¡no ¡_l!¿&-; OpsEaor lholl prcv¡d9 8ll lusl. Contaâclo/s ært whe¡ to lngeâ86 Conlnc-loig peËonnel;

(gX0 ll th€Ê 16 in ot afea ¡n C0nlr3ç10r rcr*l¡g gr olhsr vnforoseon, unugusl evenl lhåt Ell€É Conttrtor'è fnarc¡61 'n

6. ¡II/IE OF PAYÍ|IENI Pðymônt lsdue by Operalor to Conlmctorag lollows:

õ,1 Psymfll tor mblllËllon, drill¡ng and olher work pgfform€d at spd¡æble Flss, and all olher åpplloblo c¡areæ shall b€ dug, upg¡ pre6ant¡l¡ol of l¡vo¡æ lh3.€for, upon @rpl€l¡on o¡mobllÞâtion, demobllkaliF, rig Elee¡ô or El lhe ef,d ol lhe mnth ¡n whlcb 6uch worlf w¡s poíorffid or olhsrdlargca âtc lnqflêd, whlchev€r !h6ll f.rt @u.. All lnvolæs trEy bo ñrlled lo Operattr gl (hå address hsÞinsbovô !hwn, unl€ls Oporålor dæ¡ hereby dêslgnâle thEl suc¡ lnvolø! rh6ll b€ môlled ô3 r'tl^* 6.¡ ol.pul9d lnvolcð !¡d Làtg Prymonti Op€€tôt 6hs,lpsyallltrvo¡æswlthin ____J¡j4¡lqLdays sner re€¡pl orept thål lf Oporrlor dl!P!l.! tn ¡nvolæ or aiy parl lhêr€ol Op¡rata¡ ghell, wlftln fttæn days ofer rêælpl of tho lîvo¡æ, notiry Co¡lrsclor ot lhe ilsn dlsputed, spæl¡ylog the reåson therofor. and psyænt al lhè d¡spuled itôm roy be withheld urtll ættlemenì ol lhe dispi¡te, but lirely p¡ym.nl shsll bo måde ol tny und¡sputed portid, Any 3um9 i¡ncludin0 smounts u¡llmatoly psld with respecl l0 a dlspul€d lnrclæ) nol pald wllhln lhe EbovÊ spedned dsye shall be¡¡ ¡ntere!! at the rste ol I 1t2 perenl or lho mximum lsgôl rale, I

whichever ¡s [es6, p6r mølh f.om the dus dals unl¡l pa¡d- ll OpeElor does nol pãy undbpubd ilems wllhln llF sbove slaled llmo. Conlractor mây esp€¡d operations or tomln¡to thl¡ Conlt¡d â6 ôpeclfiod lnder Subpsragroph 6.3. 6, TERTI:

6.f Dur¡tlo¡ ol Contöêti Thlç Co¡tEct sh¡ll ßruln in tull lore ard efecl unl¡l dd¡l¡ng ope6ti6s ars ømpbt€d o¡ ths w6ll s4€{lc speciñed ln P9rEgreph

t âbor€.€FleF{es+f-+mñondng 0n th? dåto spsif ed ¡n Pêrôgr¿ph 2 above

8.2 ErlütalorÐr-Itm+OpËeld{Ét'€rl$d.UþLmd-l¡¡bçølhd]0çær'Nnq01fi&a€tqiodqæ

- ô.3 Êrrly feml¡.tlonl otC îc (.1 gy Eltåor Prrtt! ellh6r pdrty may (€min¿le thls Coñtrac{ when tolrl loss q dsslruotlon ol lhs 10, or s miot breskdM wilh ind€li¡lle Ep€|. lìmê neæs¡1416 Blopp¡ng oporgllons heruunder

(U.5, Wretk Mtd. Pqs2) Fom prcvidsd by Forms on¡A.Dltk

@ Copyrlghl O 2003 l¡ternsllonal Asroclatlon ol D¡llling Conlråc{ors (2t4) 340-0429 , Fm6onADlsk.ðn

Rùì.rë m03 f ^td,ol ho wilh ræped lo tho dðplh lo bô d¡iltêd, Opêrâtor thall hqv? lh6 rlght to dksîl lhe ¡loppr€e lbl ay Opiratof: Notdithlt¡ndhq thÞ provtrtons of Parå0cph &rk þ be p.rlgred by Cstr¡cls hoÞundcr 0t ëny ¡@ pdor b reæhlñt the aÞe¡tu d€plh, lnd .v.n thou{h Cslt6cld ha¡ mâdô Þ&lddl kN¡dát In .uch êvent.

OÞôñtG 6holl roiûÐ.e Conlræ¡or I ætlûlh kl SúborBgrsph €.1 hör@í.

{c} Conr¡{# Nolsìh*ñd¡rE l¡á prqvhþm of Pår¡oðph 3 wJl¡ Ërpèd to ihe dopl¡ lo be d¡illed, Ín lhc .v6l opercB shsll b@ts inrol$nt' q bô By by ffiy o{ p€n'totr or ¡n.w, s d¡blods p€lìlþn ø o{h€r pleodilo ælhg âduÍwnt ot oP€mþ/s dobla. !¡dd ¡rry adjud¡€t€d s bÊnkept, o. ûþ, bôntuuþtclôl dåblor'6 pfDpefly, ot àny Þañ th{æf' q etþt t9w ¡owor hdrôrtlor pmslllng, ot lt êny 3uó Þs filÊd a0aln¡l opor6w, d ln €ee s @lvs b6 åppol¡led oloP€fslüq oPsEbrs Opsêlo/g alåirô bc ptrçod l¡ the hsnds ol å Cr0dltgis Commlltæ, q, lollq¡lng thræ b!!im33 dãy! plt wlltlðn rcllæ lo OPeralor I Op¡ralq d6t nôl pny Cøtfôclor p€'fqmânæ 0l ¡ô) wft und€t within tho t¡@ !ËdfÉd ln SubÞsBotaph 5.2 alt u¡d¡r¡rted lt6oB d6 6nd ilhg, Cmhælor m!y. ¡t it! option. (t¡ ol€ct to lmìMls f!ñher

thf3 c6trad 3nd cdtr¡æis tlght lo c4rpúnsl¡m ôhâlt öo s st fqlh ln subpãr¡cEph 8.4 hseof.

q {2} rvspefid op€rsl¡onÊ slil p¡tMl la rEÚ6 by Ôpôtåt{ in whlctt ownt lhg rt¡ndry lm .dlo æntalnêd ln SubÞgregrrph 4.6 ¡bail rpply untll p3yffint ¡s mdo ry opßratq 8¡d opsaþns â.0 l6umd lt addldot lo Conll.clg/s tlghlt ta süpúó o¡4ntton| oa laølneþ ga¡fotu aco undg thls Paûgr.pht op.ñ,ot hotêby üpßrJy agfrcs ao Frc/¡ca, daland and lndñ,íly Conhc¡o. (M .4ú

tgslnil sty c¡.tn6t dañrfd6 ¿trd c.usos ot ,c,¡ø , tætud|f,A alt cosl. ol út' nta, ln tsvøt ol OPqslo., OPoñlot's cùvÒn¡üoÞ, dûlN.ù t¿dJolt, offiffi'

q

.ny o¡hø. padts tÌlfttaa oú ol any d.ilttnt coññltûett or ollgÐllant cçtlatn d tÍ añy í6so. larûoú døræmùt o. othü agt.Madl' çhlCh ,nÀy be 8í4i.d by 5@h tuspMAloû ol opantlônÆ ,r aa,ûln llon ol PotfDmanco ^ñunóøL 6.4 õañt lmlnrtlon Comgen¡¡lloni {q) Prlor to Cmnoncrm[t: l¡ lh6 owt OpoElor teÍrl¡rts th¡r Cdlrscl priw 1o dilñ€iæ¡Ml ol opo6Ùs¡ hcturder, Opôñtor thsll páy CorlÓcld ôs tlqUidôleddâm¡06gndnolôs'p!¡ãlry@EpÞ4å}{or¿!'riodd_--dTítgålvmprumaf'....ll0¡@-.

lbl p.lor to Spqddhg: tf suÇl ùômin¡liq @ß Etter Ðm@¡ffisl of op.ralioor bul pfiq to lh€ sMdhg of the wall, OPrråtof iholl pny b Conldc{or th6 !!m of the foldirg: (11 å[ ëxp9$6 feaswuy ¡nd n€$¡rity tndtrgd afid fo b.lrutred ry co¡trôcls by €a3qn ol t¡9 contrácl9¡d ry Fsþn ol lhc pr¡fi.tuG lêmingüo¡

ot ¡he rcrt, irck diôg lhð oxp6ß6 of driltíng tr oüìq qw mnb€n snd rlpèN¡Con diKtly issl¡nêd (o lhé r¡g; (Z) fon p€enl {lÓ%} ol ül€ ,M¡t E t[h E¡mb{Erblo

orp€nÉsi ô¡d {O) ð rum Fldlåled et lha slåndbt tkñ nte lq ã[ t¡m lm l]F dáte rpoo rh¡ó Conk¡dor mm8 åny ôÞeål¡ons hel€u¡dal (huíl lo lud¡ datg

subrequqi lo t¡ô dsto óf gdtm(ion as wtü aísd Offtractor fea6on¡bl6 fim lo dimnlle ¡ts tig snd eqllpGrl+6v¡#ffiÉìt{}¡i$ax{rs¿¡ô fq'€{ôñ{Íffi lhån æj€lFoê{9t{'ptas''ol{m.-@r $þ Fffi 3¡b.e{61.Þlerninâlþr,0lgðidrhÞ9mlra¡rst99mqþl¡á-d¡¡flsì{l4flat¡¡ ¡.ld.q{t!ôu{${l tE sd of.t}Ê{oæ bnß ¡r lldtrhtd

(cl Sub¡oqwnt to ¡puddlñp: tt !ßt isml@Uon @B ål(q lho spuddltrg ol lhc rell. Op€rôlor she¡l pay Cmbrctl (1) Íìo rrunt lar 8l¡ apdleble rrte! arÈ dl othtr ç¡sr0s rnd ß¡mbuffint¡ dw to cf,l¡.doi bül i¡ no oEn{ shãll sudì rof,, exciusive ol reimbuffinÌr dÚe, b€ þõ4 lhan KUH haw wn €ernd lor r9v¿n Itl dayr ¡t lhÉ âpdicâb¡ô ñtó \/vitel trill Pip6" ¡nd lho dcl0sl¡ruÌdw lo. dnt¡ plp€ qsed ln áødeM wiù lhs s!@ |

rates; or (2) a{ lho ale(iin of Cñtrarid and ln lleo ol tho foÞgol¡g, OpsElor shålì pðy ConlËdq tor sll spen*s l?¡gol$bly 8nd @sgdly l¡ilrcd and to

be¡ng!tredt,yfeâsonolthIrcqtlactsndbymænofsuehF6nâfu'ôl€mjnaliilphs,'.¡d€sc¡€l t læ.tfÉ-d{!m-tb{¡Bþr¡ii¡l{,-lô.-¡-p.rrçóC{¡mr49æto.{}€¡l-pq/-çsl¡+$q-i.t{dd¡¡osbfAc.b4ÞUþ+€{S¡riwe-flif{-bð{flf{¡ñ.rÈadtt þhor*sLsdrþal.tsr¡¡.l.rhe6sHhô{¡a$ S*}lorñ+. r¡ llnÍld.ill¡ld rt¡ñÂo* !ñd not$ oon¡llv. ! lmp¡um oo!¡l lô ¡lvtn {7} d¡t ll lhl gt¡ldhv f¡tr Þ¡t.

7. CÂS|ñG PROORAftt OÞorelor shril h¿w ths rhht ¡o dæ¡gnrlo th¿ po¡nls ¡l w¡ich q¡lng will br st and lñ¡ ñ¡¡no. of setling, cwoliDo and {æìíng. Opsatoa my modlly lb€

*ehg pogrâm, hMv.., ânt 6!ch md¡ñÉllm wlìlch rot€riâlly lma¡s Cúlßctôt's hu€rds or Ðôh øn ffly bo mdo by mtu8l ænlml o, Op€€tq snd cmlr.clor and upon rgrrofiênt Ð toüì€ sddllþml 4npsnuÙo¡ to bó ptld ConlDçlff !s I mlua b¡@1. I. ORILLING¡'ETHODSÀNO FRACIICE9:

6.1 Co¡{tsclq shðil mlDl¡¡n rc{ *nt¡d €qui!|wt in 0ood Editim al olt timos snd sholl uso ¡ll r¿89nqbl9 æôos lo preY6nt ð¡d øl.ot fr¿6 åôd Umub and

ìo prolsl l¡e holô.

8.2 Subl¿cl to lhà terru hsræf, and st OpFlols øi(, st .tl t{mis dud¡O lhe ddÛng ol the wll, Õperâlq ¡h¡ll haw tha .lght to ffillol ltE frud progtâm, snd ihs dilting luld fiurl bô ol a type ånd hðv€ çhargdorisl¡B 6nd bs mghlalred by CorlFçtø ¡n e@rd8¡æ wllh th€ ßpæ¡ñ€tion8 lhM in Exhlbd "A'

8.1 Esrù ps¡ty hereto ogræs to ænply wt01 all 19ß. rules. ând ,o{ul¿llùF ol aûy lêdenl. ¡{â1Ê d l*l 0ovêlnmnlål Sultqity v.n¡çh 9€ w 6 roy b3qm apptiÉd€ to that Þ.rf/6 oFetstio0s wetsd by ã dt ot lh€ podffin6 ot lhl! Coolract Whefl ßqllEd bf låw, lhe terñt þf Ëlh¡bil "8" Eh¡ll ar¡si¡!

appty tô tì6 Contret. lñ lhe ewnt r¡y prcvlàþÍ ol th¡6 lnü¡lslsl rilh o.6nttâry lO lny aPPlkâUo têdeGl, Shle q b(ål låw. rul€ q rsgulalÐn, CfilraCl ß Fd proviston rha¡t h€ dæfiad to bc ¡rgdifad tO thå €xtgnl rcqui.É tO æùlly wìth la¡d hW, rule s rggulalron, ånd ¿s $o modifiôd Ri, prwi¡ls 6nd thìs CtrÍ8c¡

8,4 Cørðcþr ¡hålt kelp ônd tur¡ish to Opemto. ar sø€tè r@d of llìg @rk psrlomÞd ånd fdm.tl6s ddfod o. lho IADC.API Oáily Or¡lllng RePo'l Form or olh¿r fom a@ptôbl6 lo Oparalor. A ló{¡blô epy ol e¡d ldm stull bê tutnlthcd by Conlrsctq t3 Op6rålq,

8.6 I rôq6lêd by Op*ata, Conùacio. lh¡ll tuntlh Opcrdtû wlltr I epy of deliviry l¡ctets ffiino 8ny ßtsìal or gùpþl¡¡rô pffilded ry Opcrrts end

@reed by Co¡ìrâdd. 9. INGRESS, E6RESS, AT1D IOCAT¡ON:

opefator hgßby qsÉion¡ to contraalg a[ næssry rights ot h9te98 ånd ê0ro$ Íl1h rêspe¿t (o the vacl on whloh lhg frll ls to b€ lml€d for ìh9 p€lofne¡ø by conl€clq ol sll trù cootlnplalêd by 1¡is canttacl shoúld cñlt¡clot tE den¡gd lræ .iøs lo lh€ loc¡lb¡ ld ¡ny ¡eàM rcl rso¡¡bly {llhh Çonuælo¡'g Mttot. ôny üm tG{ bt Cmlr¡c1q 6s ¡ Gsn ot ¿úcl denlsl shEll bo pr¡J lr 9( lh€ standby l¡re ßl€. Op€mlor âOl8 ät.il fffi tO trhLln lhe rÓêd Eñd þstion lñ sudt a condttjotr !1rl wil¡ ållry fræ a@ss 6nd oovilñl lo á¡d ftm th€ díllino s¡te in s¡ ord¡na¡ily equ¡ppod highEy tyPa vehldo It Contrddot ¡r reqsked

to ùs bülldo4rs. kactoD, lou..vhôol dr¡Ê våhlckt- or âny othe. 6p€cjslÞld aranspo,bt¡t equiDmeot ls lh€ mvffil ol lrgs$ry pssnel, nec.¡hery, d equ¡prent over å@¡s r@ds or on ìha driÍino lGügn, Operalor rhgìt futnì6h ûe sans ¡t ¡ls €xpcnæ a¡d wilho!( @l lo Coôt¡aclor, Tho åtlusl æsl ol rgpsiõ la âny tltnlporlatþn equ¡pfig¡t lurnished by Co¡lraclor or ib persnnel d¡m!0ðd cs e rcóult ol ìmÞropefy msiil?hed Ees lo¡ds q lqtion will bð.h¿l09d ro Op€.slor ôÞêótw stìail ßfmôuæ Conl6ctd for rll lmunlå ßasombv 6¡pended by CØl6clor fq rcÊair¡ 8nd/d ß¡ñldsmnt ol ,ød8, btldge! and lelãled of 5¡nitsr hcit¡lÈ. (púbtia ¡nd privatè) fequtred as á dl.ed resun o¡ 9 d9 @Þ poûuanl to p6lldrun€ lEß!ðdøÍ. opGElq ¡hell bÞ ßspo¡s¡blG fqrdy @b å$od¡tcd with leveling lhe rig bgreqf lÉlion ænllnE 10, 60uN0 LoeAllol'lr Opqrstor shaÍ pæpãrè 6 gnd þcâtiØ odoqlrlr lo slzê ånd øpablâ of propcrfy supærtiû8 lhÞ drìlling rig, €nd 6h!ll Þ! ræpontiblo lóa ô tr3¡ng 6nd æmot¡lg þroçr¡n adeq0õle 10 prev6t 3oll Þnd subsìl w6!h @t lt is ßcoon¡zod thal Oporstd ltss sùpêùr kmwi6doo o{ lho þcotþñ ¡nd rcæg¡ roulee þ lh€ loqtion, snd mß[

lq S úþP, Cffi . P.¿. 3,1 Fffi Fmj copt.iohl o 2ô0: hl€mtio¡el As¿qjqtþo ol Onlling Cskâclfr (21,r)

odv¡¡g conlÞotor ot €ñy !uþ!utå6 onddlons. or ob¡tructi{r¡3 (hcluding. ù!l æt liûlled to. (tns, 4vèlng, 6ink hoþt, 318€hr. prp.ri*, ffiff# #i commuôl€iìm lireË) wht* CstrâÇ1g ñ¡ght eowntd wh¡lo en toule lo the lmt¡oî or dur¡¡g op8taÙonô hoFurdgt It lrlr lvø¡ 8¡/ôeutfo¿e tônd/llÓß eso 3 cm.dñg ü ah¡lilñg ol th. locatlot Êu¡læc, or ll çlndilIont pûvø un6atslaàlory lo Pñpt ty auqFon lht ttg dwlag mtft¡, opeÌalon9 Àanuùtkt' oîd '{bed lots ot .ttn.g. to ttg ot ,tr 6ocr.(ed êqulpmØl Nu¡Ê lh6æl¡om, Opfiaþr ôhatt, ellhout ngatd la olhet PQvttlØ. a¡ thlt Contet' lûchñlng thg

Subptfrgapn u.1 hewt, ¡alnhurôè conkt,ëtoa tot alt arch !o6e o( d.ñrg¿ lnclcllry rcmov¡¡ ol daÞds tnd tr|yfrgnl ol Forcè lrl{turd R6ai ú!,tø9 ßcal( ândlú d.mobllhtloî ll appllc.bl6. .!r. ÊoutFME{.ll cAPAclw Operaìions shãll ml be elldnpl€d und€r any ø¡ditiñs wtìlctl æed lh¡ épàclty ol lhs equ¡prmnt ¡p€dtisd tq b3 u¡ed heÈundèr e{ls**¡fó*4å{S d6¡Û8

o*. ,,---- wtü@t la¡udid to lìs provtslons of Par¡g¡sph 14 hefeúnds( cdtß¿1tr shtll haË Bté iilht to rukÞ "dn "t th6 finôl de&ìon 6s b wlEn sn opêratq q a[smp(ed oFcËtkn þvld axæçd tbe *pêdlf ol ¡pocifted equitmnt. 12. fERMItt^ïOH OF LOCAIlON LlAslLnYi ot tho ffitt toc¿tton, Opantor thall aherâ¡l¡. bô tlrbla lot damage la Pñquly, Pø6oîrl l4ltxy ot dÃlh Wnon Contoctor ¡.aa conctilded opantloñl 9I aö! Feaon wùlçh o.cÚß a Égll ol .ondUon6 ol lhs la@.toî dnd conlñclo.

aÉ b3 .a$aYad ol sucl' ltah¡W; pÌovldþd, hoßv||, tl con.nctol th'tl 'à.,il subshquútly wtêt lron l¡te loãltor tonny tßon, t^clud¡ng tØoval ol lh. .tg, tny tvà o, th. Conbõca nlìÜng to sßtt ßú1ry acüvtly ttrr, ôffof,. spþlk.blè dwlng sßh p.îled, 13, INSURANCE

Oûrl¡g ths lit€ ol lh¡¡ Cgrl.â¿ Cqtracls âhtl ol Conl@lols e¡p63ô mln{û¡n, wl{h €¡ ¡nruEM mpony oÍ trponlB tulhq¡¡od to dô blgne¡Ê ln lhô ståto wlrcre tho work ìs to b€ pedod¡t€d or thr@gh Ê æll,¡ilsuÉre pro0mfr, iñsurdnæ æv6r¿0€s ol (h€ k¡¡d and l¡ tho amdnl æt lorlh in Exhlblt'Æ, hsqfng tl¡E l¡aulilios ¡psill@lty €s¡uûEd by Cüùac{or h PaÉgEph 14 of thís Co¡trsct Conl¡rclü slÉll prd6 tm tho cmpaoy q ampsnhÊ wdü¡g sld lnsußnæ a 6rlJføtô û diflcd* ùãt æld ¡nsranæ is ln tuf lm ând €ffæl ånd thal the 3åffi ¡háll mt be sÊÞd q mbriátY chsnoôd tjthdl tan í0) d¡yr p.i{. witlcn müo þ opo6t {. Fc liåbltit¡ôs rs!ffilod hqr€und{t by Conarâãor, lt! in&rsre shãll be éndarqed lõ pwlde tàðt lñê lndêMilæ w9¡* ttÉ¡l dohl Ol ¡ub{p!BÙ6 89616l Otehtd.

O!ôøfq u[, 96 Ëll, @us ltr hsEr lo MIE !ùbrÞ06ìJon åoainlt Cøu¡ctor fd l¡sbr¡ly ¡t üs!fr3 ¡nd rhsll mlntain, st Oper€t¡c/r oxponÉ, tr €hall r€ìl ln¡uD' inlunn€ @ysÉgê ås É6t lorlh ln E¡h¡ill.ñ of the Bm klnd ¿nd ¡ñ th6 sme årun1 ¡s ìr loqulr.d of cqfÊcls, l^tufing tha ltsblllbe0 spællislly sstu@d by opâ{ålq

i¡ psmgaàph 14 of th¡s Conkoçl Ope6lor lhal¡ pwurð lþm tha þmpany or cômpsnlec wrlllng 8øid ¡nt{râm I ëírl¡câtq or æñlnéals lhal ¡a¡d ¡n6utg[6 f¡ ln lull lôræ ándsflsl sfld ìhst ülo !!re ¡hðI ml b€ ø¡cél€d or m.tlridly dr¿¡ged wifþll lfi (lol dáys Fltr wfiten ôotkæ lq ôwÙðctor Opê{alú ¡nd Contrãcld rhtll óusê lielr fspæiiyo unelemilm b nsm thå oth€r addtkrylly lnsured bgl gnly lg lhe çxtsd ol !hê lndõm¡if Élim obloêtloß ssrurEd h€rsin ta. REEPOa{S|StUlY FOR LOSS OR OAìIAOE, ll{DEl{¡¡lfY, RÈLÉÄSE OF llAÊ¡UW Àl{D ALLOCAtIOII OF RlsK:

l1,t cwtreiols Sqf6a É(l{llawll cwoew st¡¡rr rl$o rñôltt|al ¡t thq /b¡ ûñt0É ro ot datlrulloð d c$t 4þrr Ãttkt ¡q4prffit récsrlc{ !l uhen ú hov ôuch damagø or dætuucllor oæw& and can1dôdot shatl ¡øl6se oqatølÈ ol an, tlsblllly toy 6Ú4,l to99 órcepl ot &ñ29ê frdat t¡.to gubp.ñ!âlh 'ot 'os prevlslons oî Paâgßph t0 ot 11,ã'

14.2 Cofilãcto¡t¿}+ioþEq{d!{a¿ttôpasl@slü!ñlfr¿Lð¡fiyrlôrdnætqdaß99laqd6tMcrtqo/Coññot+LtholÔqtlenqÉ,rrcktdttg;þglnel ûd tool lolnL, ,nó ppnlor shell ralñùuËo Conlnctol tff irr à valw ol qay tsch lôa ot dtñtgti fle frlu6 aú b. d.ffilûed Itñflod tø, d¿¡l ptpe, ddlt aôil.6, by øgMoôt hetwæú cotateatof ¿id Ôpñtot.s c!ññt nprk co.ß ot pac.na ol nùtènl ,N toPk.c.ñqnl ìoit ol 6tct ûqul¡ilúl d.ltvsod --:!!!_ lD lrro mrr!rí..

11,3 Cqtrrela Eqlfpnqt . trfi/.løttâb] Ls q Oatp€É.. ¡Voùdrtrúddtnt dþ prwßfút It Sl¡ôps¡âúEptl 1l,l abwq OFAû ûú NW lúW tkñ lo¡ tut cgß to ú dçt/.eiø gl Cq¡tuoft f{¡ttpûMl Éut¡!îg lrñ lâd prwæs olH¡S, rt Cl COr t olte c¡strfü lM âls th. ùIW nd& lM "trw¡vo ruóswÉco,brudgß qdre ßr otcm¡/Fr d.attrüvo ff¿Ddsre¡ddlvc it ltÉ ùUIngñttt,'

|a.a (WsÉqq)wttqteEþr¡rþ4a@,ilô,tÌyrtrJntt6/fuútatgþ¡ootßnhdüolôratl.þ/sø¡ú¡otttqicÞJss'ø.ro¿tloffi'

ll|'tl/pt¡w]4 hglqttng, bul rol ltûtú lo, cßtîg, tùbtnù wl¡ hqd equlprenl, aûd plâ{om tl apqltcohla, ægttdlott ol wheî of llow tuçh ûúaEê oî aiËtl¡ucllø o..w6, an.l Opwlot shtil ralueë Conlß.¡or 0l .ny iltblllly tor oi! 6uÊh lost at dlffige.

11.5 fhe Høk; þt tt Mî t q ,lo,á ¡rþUld ôe ,,Or| O t dffiagqd, Opqatq eìþl öc ro¡ery rupo¿stlrß l.* ¡scrl da,elE lo w þú d ahQ hglo, t ctudøg íþ wlîC ftÊi.fr, gpetgrdÉf .rrê.$ CØaaatØü.tíssûpp{sa¿onltstl@. douàñtu..ûolúyt!ùolúyb.H*tyl(tùmgtaoØ rq{otÛ"e ,tore, sdsr¡¡,prpltl Húd sd hdúnfty Corhclor trd lþ &ppilrl cortrclm ¡rd lrÉcon Aaly(oÊ ol W úer ,aw úd ngtlnl. any artd all ct.lùlí, llahilltÍ, and o$qst êrrf/¡g lo

ía.ê Uidçrgwd oê!É!Ê¡ Opøtr srr¡, de¡$ Cúl!âstú úd ta supflq!' aøÞûtloß ttd saùtØttcf*s ol üy l/* ol fty llô{ttr lbr, rnd s¡¡t FrÚÊc{ aMqd sd lade,frlù Corffiôt ûd @hc(6 üd ruàc@t ¡clgE of .ny ls ltú $d aE lh¡r dy ¡ad t{ d6ett ¡þtt¡lÛ, q¡t üpctæ ærtthg lm tús c¡pptkrt op€¡rôM ø# d¡r6 Cqffi( ú ftCùql ot tãluy !o, dít tæUM o!, ú to* ü h¡tprlûøl ô1¿ny pryty rlgtñ h wto oll, gø\ ú olh{ ñlt&l.øbffi. ù w' ll tl ttúgm ol ttfr ñ q oñLs¡rd ø¡!r¡9rust¡ htry. .tüûl¡rcnon,lo8,ú,ûNffis'r't¡åJd¡uôrôæa rodæf ,s ædæod(o ph,ãr6.lp$eþ4 ,boveito tuleøollho o'rú, ed br Ðy rûs tr dfipf! f0 ¡ry,børdo4 útÉ, øMolt ôðotdt lrr !{rttaa ot ate edì, u.f ,nsp¿c¡tcî ol úttqlals Fumk]hld hy OFUaton Contrac1¡or egr0* lo vrrnrly tnrposf slt dâlal.t. fufltt.hod by O|atlq, halota ualîg {ne aâd lo noþ Wq o, úy ¡{lpr.d d.!bct! twsrn Coffi¿fr. gtÐl to(bø tàble ld qy bs q&tsoû Errü¡E tw tpÆgtttùf¡!& funlôh<lV Wq,att Opüato. .h.!l ß¡Ne Coñrreêaor írcm , an' ¿htü ptttæa Catæd and lnóñn¡ly çonuêcloî lM aÃú ôgâtBl, any tæh t¡thillly.

t4.O CgnV&MS lndenatñcroØ o! Opefor ConÙ¿ctü sltat! ..,æa Op*du ol ily ilthflily lü, tnd tlÐlt Noþc\ dalq.t cn t kttßtnry Oporaot lrm ùd .gСot ú cuaß, dsñn&, erd ðqe orôclon 0¡ qqy hlnd Nd chðmclq, wldtot/r'. ltÍ¡ildtd w¡lhau,.9ggltd,o aho qwú csß6lhñ¡ ú &ß t@tw sl úy Pdtl ot !4il6t at tng ,i ceþcA[ lw.Èth kt ,.vor ol C6b"C4ol¡ Øployø t Cottltæior! subcøùactqs ol úy alq (kÆhatue ol âny Wql ú cør¡rrf¡ttl dgtgad ô, fuactú) ù tß¿. øprøyrl'. r Cd?r¡do¡! hv,toad d taco4¡l ol ôodly lr{uy, ñt v ùt'{4o þ Noryty, cd/trcúf' htffity 6tht ttìB Paûoph rttrd û. ûttþrn /rdËrd lo nnd vrtithotí any tþrta lo cqtlttflon lDm ûy lntnffi itffittd by W q.nwr lo Pútgt?ptl 13 t n þ JÙL¡/.y ffi tql tß Nnattry tnfts o/ /¡rW ¡€q¡¡¡rEd twflder ot ol the lndúnþ16 eolØútty Md Múø stùpsqaþrt 1a,â |rürlch Cof,ttc'ag¡ úd Oñú. hqúy .gM *llt be suppotted é'fhq bï .ualt Uo artdl{! tu@nú, trúlû whk;h lt¡. lüß àâð oo tl!¡hf of êohtqgÐúú ,gM lha l¡ddniuæ, q vúaúûy rCf-f¡t ðt4 tù þâd q úoto) qco{d thc ñaúM Ws pû¡Nd'd &tdq €{|plk bfe rôw, tt ,r â!r!ed ¿l¡f raid ,nffiffia nq!{rwtfs ü ,ildstn dis 5¡¡1, rL'lffËfd¡ry ôe aûètdtd 10 eonlØ lo lhø mrxlmum ñontlary llñllç þqtñtfa<l under 6ßh l¿w.

ti.9 d Cotùa.(q; Opq'.þrirp/, trrers C4affi of ûy tull¡ly lott aó shå,l øoløct .tdottd.d.t My OÞoirlar,, }ndà,Mlãcôl¡lgn êotþ.et hw qú ¿frro¡f ¡r, cr¿tffi, dérnðtrdú, úrdqßß ofdllir ol Øgy ktîdqd clffitqtúlittotû //fr¡hrnd td{toulrâgr¡d fo Úre caus? d ctñ6 lâffiror a/,e æg¡lgec, øl rûy patty or pstlt6& adtldg lñ ôonn*tlon hûcÈ,llt ld lAvo. ol Opeßtof, .ñFloyaaa or O\aû¡ofì cqffih,B o, stty û8 (lîclßifr ol U¡Y ðgtl, cûttàlpol q

sub@nùâEaú qgilepd þÍ Op*lÃtlú t *ttúptoycct, otc,peñtqt hvtlw, oûq ir,{ fà66 pãtÀr rdÍ fM lî suhpúsgnqh 1Lê ffi ffiq.l d bod{y hW Mt ü

(u.s. tuywk cdtd - Pry 4) FdmorwìdedbvÞomOn.A.Oill r/ \ Copyîghtê 2003 lñl€m¿ùoñol Aswi¡lþ¡ of Þillíno Conl.¡ctoE (zr¡) ¡¡o.o¡z¡. Èqroo*oo*.*^ qOO* úüe!þlopF¡sfy, O!$¡oftlndrftnuyw.lqthkP.ñgrâdt.tÊtths\,1öþ/' ,qedlãn(twãtoú.tldglÍlocaúfiú,,{th".*ryk*råT#Æîiy C!øû.#p.hHtb p.ä¡ñph tt t,ißltdde,yttdrÈ¡t*t&t//f/.tlnmacatytinlÛof¡drffioóg.*rdáBþdi¡ ûotoß/f¡jhtEld6eolutwfiy aorodødar SrËpañtñpn ç3 þilch Cdffi6 ûd Op*.íø ,rdrò,, ftæ ||(t be ,ueîìrlod ttw þy .neåro tbôlfù ,tffi., Øú. *t Nt tß ¡¡sffi ttr! ß ttÛl o, rrrårÞlrfo.r .fÉrr6l rÉ ,rdànDús, ú wlq*ny s*+suú¿ h ¡Ert û *lnle) üclx,l tu hâx!ñø lkit8 rsûråtd trd.l lprf€öL þH n ,¡ ê!'t d dttl Þad lotunhcc requlaañMaa or tôdØnl¡!æ th¿ll .úôñat)c.ìly b6 .mMdod la cúioû ao lhè ñtxlûun nþalary thntls P.mlãod halû tuch taw.

,1.10 U.hll¿fy lü tflÍd Wú: Oròa¡tø rà.,,1 ôo ,hà16 fd t¡g God of ,rûrr¿trl 6ü lþf o¡ ttty *ltd Ftt, ß Q!,l s lot Ma ú @ve ú ¡ttl drútÈ dld God ot gp€rlt

õtrd|fri ¡nC Glorr 6øû Nd Opqrtw s¡d/l rafr!ó, protrc( dc'!/¡d ,n¡t lodannlty Co¡l¡¡clof od ,1, Ji.,pptàr+ corr.do¡s .nd eócotrülcþE o1 tny al$ lrem tntt.ga},ta iny lhillv {ot such coae l1,ll Poltttllon o. Co¡Eñlø.llod: Nol:É1,thstândlng.ñylhl¡g la lhe æal.try coûtrlnoú hqêló, ôxe.Pa ltþ ptovlalñ ol PaøFf,rlpttt l0 .n<t 1r' ll It @dæl^od ¿bd úgre¡d hoîtw Co¡lr¿i/,a¡ üd Opqilot tttrllhâ tspondbnry So/ pollulloa o1conlañìn {on ahill be#,âllow;

by aûd l{ Corñctof 5rÞÍ em ú ßtr,shnfty îo¡ tt duù.tg coilto! sãr! nffil a¡, at d Ctü¡ N0læ1, úalsd w! Ir&nlry Wls ftw sd FF¡nl */ c¡hs dcilådt and ôrH ot trdú al nd clnætf, úr,¡,g fun lpilútgt ú coeû,f,tÛøtth, vtìch o¡lítmt ¡ûoE fto 6slDcó ol tfr lsrd q wlë rrffi 8þN8 o¡ üqy *lnú Atda,lsblrenþ, mW ott, pþ @r, p.tu, rorwltr, ô,4tta ttl0e 4d grt'lgt, ücèpl |jÑotùt,Jo Núq ¡tom .8.fl. Flls, wiotty lo Conlnclof, Potsøt'rw aîd coûtt l anl dhsclly ssrorl€lrd rJl¡ corlrð clat\ aqutqnql.od lrêilttlæ, lD, øöfy!¡nl,sffi allßpontrrylv, hc{qfr¡gcilúq,edmoÐrsl rfd¡r¡ll¡roançt defsd.¡d k d.ûnfy CoÍmclûînd ¡6s{ryp{¿¡+ cøñcfwrod sffits ø, úy ds rlw ad !úþ¡nrt ,t cbrr¡6 dwrdô. árd c€6s ol .cían ol ewü *lnû and chtùclt Ûtlilly dlræiy ot l\dl¡æîy lM alt olàa ppltttttanot coftt nlNUú vùlch My occut dutlìg th. cûdel d opdtdaa. hwfix,Ë, ttch{,î!. b¡n nol l,f}'lod t,ld Fl¡cr¡ my ñ¡rl ,tqr tG, ô¡om{4 'q .t t q.Ecqfryàú8ûco¡ffitladllûwdol!, gas,ra(qüú1qslÁrÈ&q, s !ïrlæ û!s ød.poúø olollúílfttgøttd¡,l¡cltßt gihúnlldtdao,.il &lltgt ddr¡ø, or, ôæ tr ctrø katly ùqtú dtiût¡g ld.þ" cqrur*D.d ct¡fy'tg. ù 6.r'l!É, ,o$ rlrr¡drdon ñd Wt Nwy ñlstd5 trd lr¡.Cd1 Op6tdfø 3na¡l /E¡.1æ earûadd arlÌ* at{pptqt, cq¡ñcrg.rrrdsqôsùrçloE oltyQb d*y Æ¿lty lgt$lot@ttgi (6) tã th6 ñt a thtd NV çmn 6 ü æl o/ ôrfô6r0, *ltch Éúiß la Fdub¡ q Nántñúî lû rfi/ßh aldü CMtúlot x OqatÍor,lor wllw çæi prû ß pdforûrrg nrt, ,6 àald fo ôó lggelry h*, frÞ ßepørlà¡û{y lE dor !ùd, ài conr¡d¡rc4 s ôátrr Cdt¡c{¡or sd OpØlú' to b. ñ w a ll att þtty fot Nm ttþ ßí( w esism4d he ølonad tt ffi ùd dl ot ùþ oatlgrdoís ßptcdÛ Þtþl*üon, dalfrB, kúmÉy ed ö''d.úØ ú N,oßlÈAltt çnd lltþtl¡¡h .s taa lotth lû l.| tnd (b) .bovo, ôhalt be apælllc.,ly ,pqlted, Kl| Cweq@$ht Owg6: St4|y'ád ao tN *ít1ouf .íæ!rq ah. ptovkhnt d trls Canføc1.Êgyúng dñ pym&l.lgûB ød oHbrøant ot lh. qtÐ,Jst 'ri$ o, b,s, t9ló¡te tú hldqnrlty ddti¡ úd úliøtüùßot f6 *crt pptÛt sâadr¡ C, þrË òo tÞD üd 'rna}, 4¡,,st lê ofr !4ocþt tûdket ú cqÉqtñrúþl úøigrq srd t¡r. rsrþs !øæ d|¡a spacþr. ttdH or consag$d, düFgd M .tü¡sd þ tßArde, vlbotn be

tn lÆ*owlîg: bs ol pmm s ,¡WrÞí dt6 od eçü.6 H rilog îffi ba.lûaôt lqtfi4lontí bt oî q d*y ln p.gdirÍþ¿; lo¡c ot ø ûf,¿fp þ dtr 'ldf,øo,\ tæ*'¡nld:lesolúdduy!¡d,tlllîgotoÊcttt,,tdgltt'. ¿ds,olvlos¿1M(lpnpotly,r4dpma¡t, d@Frovffiby ao.túâ.þß q tt,óco¡nÚ¡ú of dqy t|q x r¡rpølr!¡r tø ôid hdd lEnñ/É.* aNt IndaMilY Cgiñcûo.oîd 6 et4f{¿t'!, by ùtkrt ¡¡d/st. Opstü dr'//. d r¿, &ræ þê

aúidñ cdtf,s, ó.tñæ qtd üuq6 al rclgo d wqy *N ãtd c}]''Ë/,q ln cún cll@r wlh tgcn tffiþi, lnrtract

w@n¡dqøllb, Étrr¿gss¡rlñôdôy ðp..dole .wrtçMüe, 6crocs, f¿flúr¡, âmtq, pðrût6 sdloùúM il.l!lndwtay Ohllg.llon: Exêøpt ts oìhô¡wt6. uÞüsq ilûxr{ tîlhls Coo¡E l, ¡l ts ah. kl.ql øf h.relo thea dl Flats.,lndsîntty oHtgtalrñt '.rllæ ,ndlo¡ lhbltU6 .ssumgd by ¡uch p.dlq undorLñs ol thlô Co.flnú lÃcudlfg, vlllhoul llmllallon, gub'üngapho 1,9 ,nd 8,3(ct, P.dgñphs 10 ,nd ,2, Èîd Su¡¡âË0Þpâ5 11.t thtougù *12 hot@L br whhottt tlnL .nd wllhoul .agald lo lt 6 c{uss ot çô6é lho@l' lnclsdlÍÛ, Òul noa t¡m¡lad ¡9, Fþoxlitlng coldlllo¡q rklsct ot úln ol pnñtâû ot aqutpñènl, tlttcl l¡thllly, fog!¡.\ory or slsldoty ilsb¡l¡ty, pto¡tuag lt¿bllky, b@.h or ..FqaDl¿lla[ ot nßrf¡y (.xpN ot tnplþ.t), bßch ol dúy (*húw &uttgtl, cgr¡ñeløl ù alhd*$.) ,ry rtffiy ol ø.1 brñh ol @tbrúl¿tt, 1,8 ,w49ÛrÐ d 8y dqgú q cl@c@ lrú0Rrf,i¡r of *trùa.. æh n gttg'ke ta ûl|. fin! ø ffilm(, ædvú, p$rln u gÉtt ol üy pefty ü pttl¡x, ta&taag ùe WtV ¡s.lttø lâ! ôddl o¡t tc ñ¡fl¡q ¡nidiry ú Mñü ol tttMry. ú tty ott*twy otrrgrl åÀ{99. ItE ¡fd.nroldér, ül ûlllp'oç a/d.tumel)oo9 d {.¡*it slt rdôd !y $€ p¿t//Ë t¡gúþ øde¡ün p¡oyrsto6 ot Sutp¿ðg¡ptr a.9 1l At¡lll lûM lo lF ùlð!¡tf ot!@à F¡dlet, ahob çvven u&, co-tâôtæ, lolnl offiffi, ahol¡ ,nd A3 ød fu.gEplß aO 12 tN ptte| hotdtng ¿Ãd illilttted gañpânlog and lh. olflctÃ, dlrceló¡q ttÒtllholdet., patlnnt mântçFt\ ñF.o6ømdlfuo9 útqloyêa, conallltîlt, .gúlt, s.mnr, and lnagrcß olFch, Excopa.s oaheHtsø FtovkleÈ hqetn, suih tûdcm¡¡llctllon an.!..ttûplloot gl ll.blllty ahail nöl b. d*ñ1d ao cüao anf tßhlt lô ¿mdtmnallcaloo ln any ptãon o, anüay ¡ot a ptrly lo lh¡ô ConlncL etûx t5 â lhtrd pttu þqanchry ot þy rqson al .ny .gn û.ol ot tndø¡¡ay b.¡wd oîo ol lhc padlct hialo .¡d .nolhe( pa$on q eìlny ioa a N.ty ao lhlr ôonatâcL 15. AUÞll lf any p¡yrftnt pþúffi lor hè.eúrfq ls md6 ø lhe b¿åb ol Cml.¡clols øÈt , Op.mlor rh¡'l havê the right to âldil Contßclol0 booko ond lÞødB tcltüng l0 rü€'}| þ!lg. ConlEclor agrsos lo ñin¡tin ôuch books ãnd r€@rd! tor a p€riod of two (2) lSEn fron lha dgtg rucì wts wß inw(€d snd 10 mkE 0!c¡ bæk6 a¡d@d0 r€€d¡ly avðllable lo Opêra¡or ¡t ¿ny reauable tlm d tlmg wlthln lh6 porÍôd. 10. NowArvERÉxcEPT$¡wilr¡NG lì lÉ tuty u¡dqôtood r¡d g¡Ed lhst mo ol the roqu¡rsonb of thfs Conlftt rhåll bs dsldê.ed ¡s mlvd Ð e¡lher ptrly unl!âs lhe are 18 do.o h wrf ¡nO, ¿M úlm ont by Uro paMs ereqllng tig CülEct q oÛìq dùly sùtho¡i&d eoúnl d r6prelg¡tstiÉ ot so Þt.ly. 'l7. FOâCEI¡AJEURE Exqpt a9 provþqd ln thìs Prrdg.0ph 17 snd wlhN{ p€judle lo lhe r¡st( of l0¡¡, l9l€¡æ snd lndemnlly ou¡oát¡oñr under lhis Cofil¿cl. ead¡ pafty lo th¡t Conlllcl ih¡ll bô ô¡cu¡€d froñ æñplying w|th thol€ñ of thl! Conlrâc.t, ercpt for lhe pâyrunl al Mhs wlÉô dus, ll 8nd lw s long âs Êlch þFpl¡a@ 16 hlndêFd gr pßv.¡led bt â Føæ MajflÊ Ew¡l A9 ud ln lhìs Cdlråct, "Íq6 ¡¡tôþure Ewnf mhde3: ælr ot Gôd, Êcton ol flÉ olefi.ntg. 6E (dacl¡rcd t uür.dõrcd). l.ôumlþn, ÉDluth, rêb€ltktr ff dvil glnte, piÞcy, clvll ws. d hoêtih acljm, lef.dill æla, llJÌr. 31rik6, difaLH¡ wllh Krkren, ldr ol Publþ aæni9!, |gd!Þl s rtãtc hs, ruL¡. lêgubßng dì3porilbog q ddÍ! of eny gowmmnbl âulhqìÙsE hrving iodrd¡c{þ¡ ¡n lhe p.eûl!e! q 0t any othl gdp, oloênlåûon or hlml ¡ssoclation {ÞtÞlhdor nÞt lqmôtt ,ælnEid ðs a loremmont), ¡neblltty to Feuro ßlcfhl, oqulpmenl, f¡lor nÞcêsry ¡abor ln lh€ opo¡ nstkot, aúte and unu{ql trbof ar mlêrlol, equlÞrc¡t tr luot rhoúgeg. or sûy olhs. qúsaó (eepl ñn¿hrlõl) beyand the 6nùol ol eiìùer plrty Noilhor Op€mtor nor Contractor ôhall b9 €quked aga¡ngl ib wlll 19 Þdþsl s¡y l¿bq w llmil¡r dispuþB .x@pt in r@rdanæ wlth Epplblble hü ln lhÈ e!æt lhst ellher par! hcrélo l! rendercd unâõÌê, wholly ol ln pä.t, by ány of lhâs €Gê3 lo ø(ry qt ¡13 obtigêl¡h uñder lht¡ Co¡16d. it ¡! so6d thât rf¡ pârty ¡hlf CNo noü6 ¡rid deÞlls ol Fq€ MàJ6u.3 lû 9ri0n0 to lhs othêa pt(y ås P.ñpUy rs pôes¡blè aìor lß Éùreu ln luch €æ3, ths oòllgal@s ol lhe psrly glvtrg the ¡olþe lhåI be 6ú6pBndsd dudn€ lh€ ænllnu6É ol aûy if,8til¡ly s 6u!ed æpt lh¡t Opefalor shåll be obllgslod to p¡y lo Contcdor thg Êotæ Mêl€uré R¡l€ pÞvldsd lq ¡î Subp¿regraph 4.8 Dbove

18, GOVERTIINGLAW:

lùls C$frd lh¡ll tê con¡hFd, gdsned, lnbûprrlrd, ffþrE¡d ¡nd llügld, .¡d ôg nbio[ !d\ærn lho pttis d{Þmlned ln rædd¡ü {|ft t}þ lM

tU.S àFúhdd-Pry s) Fom 9þvioed by Fm On4.DIsk Coúlohl O 2003 l¡lôDålbn¡lAsæial¡M ol Orillin0 CølraÊlöÊ i2r1) 340.e42e. rmsonAÐirk.am / ¡rUÈS)

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1C. I¡¿FOR"ATON CONFIOENTAL:

Upon ui(q nqw¡t by OpeBtq. tntqm{bq obtr¡nôd by CqntrðClor in l¡s colducl of drlllhg op€øttør on thls wÌ, ìôdudlôo, blt rol llrflÞd to, d!91t, fomllonN ponltrstsd. the rcrulls ol æri0g, t€Bllno and suNsyjng, ôhàìl b€ ¿onaldsrsd @Dndsntfsl snd rhall nol be d¡voþed by CffiVsC{q Or n¡ !mdoy@' lo sny peMn, fm, or qpoElhn olher thBn Oparol¡/¡ dss¡s@lèd atp¡€snlótivô8.

20. su8coNtRÀcf8:

Eith.r psrty Ey emptqt o$er ænlocb.r lo pedom sry ot lhð opoßli$ü or sMs3 to b€ p¡diJd s têld¡Ed ry ìl reIding to Erhlbn ".

2I. AITORNEYSFEE6 ll thtè cstÞd ¡s ptsæd ¡n lh9 hs¡dr ol sn Sllqn6y lor ællsctlo¡ of ¡ny sum dG hEoqndor, d sull ¡s b¡oughl on Éru, ot ôum dug lE.Gufide¡ rr9 æiþt1êd

through ba¡kruplcl of aó[r¡tþn pæêdífilô, lhen ihð pnvallln0 påfty Ëhallb. enl¡llld lo rsvs¡ res¡qnsue slto.nEl8iæs ond ætls. 2¡. CLAltl¡tANOLlEttSl Conù¡dor sgreôr to Þy 6{ v¿¡d c.¡ôlms for låbol rot€íå|, servlæ, añ sulplì¡F 10 þe turnlshd by Cnt6r{ot tFGunder, and ¡lË to qllon m lþ¡ bl

s[h third p8r1þs lo b€ f¡xed upoo üp þåæ, ttE Fll, q olh€. property olüÊ Opeolq q l¡è knd upor whbh nid Kl¡ 13 løt¿d. 2I. A9SIGNMËNI:

Nrithet psrty mgy €Bsl0n thtç Contt€d silhoul lhe prior wrilte¡ øænl ol lhe othsf, ând 9ñmPl notæ ol ¡ny sudr ¡nhnt {o assign Jhåll bt givo l0 lbg othâ. pâtv. 14 th6 evádt ot ôrch ¿¡¡qññânt. s0 96óìgnfn! pârty 6hðll romdn l¡au6 lo {hé othrr psfty as s guafsnlo. of (hô tþflormanc€ by {ìô ¡ælentr 0f lho tEms of thts ConÍecl tf Eny sstenm.nt i¡ md€ thrt m¡tslllv âllerr CoDtrsdolr l¡nåf,c¡sl borde¡, Cml¡sc,tó/s æmpênsâtim B¡all br 8qu!þd lo gìw eñæt lo 6ny ¡M.8 o, d@os l¡ Cfft?clor'! opit¡Uñg 6ft 24. Ì{OTlceS ANo PI"AGE OË PAYI¡€NTI Ho!@!, rapo.b, tñd oth€r ffirunhál¡N ðqu¡red or gormìttÇd by üi3 C@lracl lo bê gifin d g€nl ry o¡e p¡rfy to hB otho¡ ¡håf bo dolþtßd by haôd.

ma¡þd, d¡Oit€ty l¡rNmfllod d tôl€@plod {o tho .ddrols hsre¡nâboW ¡hfrn. All ¡umú pay6b!ó h.roundsr lo Cqfacls rh€fl bo PayâÞþ ¡l ilr 9ddË0 haËlßbov¡ 6hd. u¡lôss olhêNkÊ 3p€cllì€d lìoÉln 2õ. CONT{¡IUINOOBLlcATlOilSr Notwilhstafitirû thå t6íriÞllü ol this Cøûad, lh€ parlirT shõll mtlnlo to b€ bq¡nd þy thê púv¡eþne o{ lnf8 Coilncl thål r€ãsmbly æqui6 m ecllon ø rdbaåi¡M rtrr rûfJr ttrn{ulidr 18. HfiRgAOßEËlt'lMi:

Thl6 Controç{ @nslfuter he lull u¡doßtándlñg ot fre p€rll6, ðnd s mpl€le a¡d €K¡udw ôt¡tcmnl of ll1ê tffi ol (helr 8gtæmenl ond ahrll ordus¡vely øntrot 6nd !oy6t¡ stì wrt{ pêlornèd tÈóunds All ßprê8onùÊtioñ!, odrr!, 8rìd undedÂklngg ol $¡ pql¡ss nsds plhr lo thé.íectivÊ d¡þ lElæl whôlhÉr onl or ¡ñ f,l1Íno, ðre ru.gnd t*cln, 9nd no oll6r qlr¡ct!. rgHffint! ar wl ødeÊ, e¡ecuted lxiq 10 lhe ¿xæll¡on ol this C61r¡cl !h9ll ln ¡rry woy ÌNdify, src¡d, aller or changd otry d lh8 tem6 q ænatilion! lot out hoæln. 2r. SPECTALpROV|S|ONS:

27.1 Exhlblt 'C¡ - g!¡l4gQl!:l¡lgthlfloúd9!! l. .tl,¡chêd hne(o tnd nrdo å p¡¡1hoHr.

- ¿7,2 lnlhãevrntot¡nydtrput.rtrhgoutotorntltdteUrl¡Cdtñct.tlopañls!.9ó01ù¡tJud¡dlctionwllllhotclullvtlywlthtù0.tâtoondfqt.nlcourtr ¡; alãurio;- |iårií coúntv. texr¡l oæiaGr ¡iËoinã !ìnisn¡G it¡ãluil¡¿iotlin of tho'rtâte end lode¡ol courlt ln Hôutton, Hirll County, Toxrl,.nd w!1v9. rny obléctlön lh¿l'iuch courti am an lrñpbpd or l¡conwnhnt voîuó or lôrum tol ôuch dlaPubc'

2?.¡ Fot mrfodù of dold dutlnq rlo mvot. c¡6od bv clrcunll-ncã btvond csÙldot't Gml@|, lnclultlns, but nol llnntd to' lnclêmonl werthf, l'ct of rv!,hôlltty ol ro¡d.;bc¡t¡oi, tän¡ærtåtlq qulpiMt d p{mttl, Opo6tor !hrll p¡y Contr.ctor å d€lry ñtc of ¡17,000 per dty.

27.4 cr¡rls Ddïnsereoh¡iåTírbÍû[3;üjl;], .r åaillrle of corlræto., rholl lnwlÞ¡ oF€ñtor' .nd opor¡(o. rh¡ll pev crnrlo sæÛ p.r d¡v (6pûd ta nro¡!61

Th. Cthrlr Rlù W¡(.h 8v¡Lm EoulDmonl lrctud.. lhl follo'¡dnqr Drllld'r wrk.artlon, Comrnym¡n æhpr¡ts workltÂdor, Tælpuah0r.comPutsr wrtrtrtloñ, díottl¡bll l¡¡cr¡tnO ¡y¡lqri¡, hook lotdlù¡t sçlgh! rct rt lorquo, rct¡ry RPM, pump p!!sur€, pump ttoko øunt6 (2 pumP¡ lftlud#), pn volumr ffobor ll, prcbi lnclsdld), t¡lp tnl volume ptob$ {'l probo lncluded}, ril r.tum nowp¡ddle

2t, Asc€PTAilçEOFCoNIRACI¡ l¡hg toagôlng Canlt cl, tnctudlng l¡la prcvlslonc talàalng aa lndøñn¡ty: fr¡¡ar. .( tl.bÍlitt, lnú atlac.üon af rlsl( ot Su¡podtnrht 1,9 gd 0.3(cL I

patg6phttOrndt2t.ndsobpangmphtll,lthmughl4,l2,tta¿lnow¡odged,agro.dlotnds.c.ptadhyOþ.6tÒtthlÊ.îfr*r* lTÍ.2OJq'I

OPEfìATOÊl /-¿ st: th¡cl

fh6 torcEôlbg Contñca tnctu.ilng lho ptovti,ß,na rclùilng to lnli!¡mÍW, úlaata 0l tttþiltty tnd tllocrlloù ot ¡lôk ol súbp.ttgdqha 1,9. 6,1(c)' P.ilCûpht loândt2.çndSubl¿Egôphsu.lthtorghlt,tzttsachniwlörtgrd,rg$úlorndocc.pledbyConlrtclotlhtt f , - d?yor--:;tÛDlgrlþj',--zt.:l!- wâlctr ar t ¡r olfoot yo d! ls ot thls Contlc¡, ¡ltbloc1r ao t¡g âvatltbtlry, .f,a! tub¡oôl b .lt ol ¡tE aumi and ppvlttoat, wtÙt lha !îdq9aildang lñr1 ,f w'f ml ôs

hhtdlûg upon Opñtot ñilt Apentor Itæ ûot d na accapaancê, amt wlth lho letlhor undqslandlnt lhel urleos 6ld Conar¿ cl tt lhus qættlød by Opwlol

vlthln or aôê ¡ôovo dêft Coùlrrôlot thatl b¿ lâ ôè m.inú þound by llt slgñâlunthatdo.

-tt!Su[!L.lrys cOilTRÀcTonl Byr

Tllìe:

tÚ.s Oãyúùde.Pæ61 CepyrthtQ 2003 lntemalì@lAseodtlþl of D.llling tonkÈdts ,:tr','."-$Í# :liîHg*-"* r:\ ç t,

ËXHIBIT "A"

1o D!þþ.k Cørøct dated -___grü!s!cJ.jL* 20 lg-

OpeEtor Psr Mftlnl¡ MC E¡.mr. LLC Co¡trfftol u'å.Ê ndlllñd llCÁ I P

Wçll t¿sw ûnd Nil6l¡ã 1^ h- .ârl.ôd hu

gpgcrFrcATlo¡¿s ANo sPECùAL Þhovl5¡ON8

L CASING PROGRAIJI (6æ F.tðgnpb 7)

Hotr Cl¡lng Wilght ðãdã ÂpÞrÕdmrle W¡h o¡ comnt SÞ€ 8l¿s 3{lih0 D€prù Tlfre

Cooductur r¡. t¡s,llt n _hrs 8u't!co ir. lbs./ll ñ. hrê

Pñt ct¡ô¡1 l[. rbttt. fi hra

h. tbín. tt. h6 P@duGllgn -h. - h. þs/i. n hß Lln.t -rÍ h. lhrn, R hB -ln ¡n. ¡n. rbrfr. n, hr6 -ln 2. ttluD COIITROL PROGRAÍ {9.ô Subplngnph 8.2} -ln Oeplh lîl!rul (fr)

we¡9ht Vhc6lty W!t!r L{ (lbrJgal.) {!trô!} (6)

Fþn ¡o Type ¡lud

olhs ñud !pe.¡l6lbô61

3. INSURÂNC€ (Sæ Prñ¡6fù 1ll 3.1 AdeqqleWork*'Carpen¡ôliolìnluEnëemply¡newithSaateLsffiêpollcâbleorEmplo,ye.6'Liôbililyl¡luÊnæwlthl¡trilsofl----¡t!.11¡.Olll!9l[---

óv.rlnt all d Conlrrclalt eñployæs rcúlng lnd€r lhlt Cffir8cl, 3.2 Coûm¡rqlát (9r Cofipßtunslvó) Gôô6ñì Llô¡ility t0gulåffi, hc¡udìng çorlactu¿l obh0.l¡onr a! rsÉêcì! lhk Cslmct snd protq ævwgp fø åll othlr ôll!åltons ðsorþd ln thi6 C¡f,hd. Thô limrt ibôll bó ¡----!E-f!.L0.¡lllQ¡__- øl¡¡trcd 6lnol€ llf,tl per @ßo@ lot Badit hlùry {¡d Proæíy tsroo€ 3,1 tutombi¡rPqbl¡cLloutityhsur¡mÞllhliIilsOfS. onâlllmllllon torheds¡l¡q¡njuryolsec¡pqm.ndt onoll¡mllllôn J*oödl EeldonllandAulgmulsP!il¡ofleþililyPorsrgOärm€slnußnævdlhlknltsofS om{11ñllllon .,, ,.føe¡chaccdenl 3,4 k|. .lhô Sþlutory Wqkon' gmpgrr¡l¡en lnË!raÂðr{4d*¡*$-sd¡e liôbi¡¡ty vndåÉlhó L@liô{ Ad{€d{rltìrD.{ þsh del¡lsiF¡¡q¡{e @ 9íæn ¡nd I =*---J€€tT*s¡dgil, 3,6 Ohor¡nr!rsræ:-gxe¡lJh¡4lryrnB,.flcrlntlì.m@tilot¡¡amlflordolhr¡llîúrúßot¡.l.t.t¡ndàl!.qmntorelltórlrç¡llrplËlntünnæ ti ¡ñ.ñâr¡Ár ñd h. ¡h.r t{ñ nlltl^n lãllr¡ l¡¡rdåñ th llrhll&h

{. ÊQUIFMÊ}¡Í, MA'ERIALS ÀNO SERVIçEE IO 6E FUÊI,IISIIËO BYOOIIRACTOR;

Ihe ruchi¡cry, oqulrmrt, tæts, mta¡arr, Bcpp¡i.r. Jnr(tumnts, Elplæ¡ åñd löbor her€h¿ner illlod. ¡ncluding sñy lÊn¡podaÙon r.quléd lor luch ìteñr, shall be peddôd at thswoll kË(s st lhè 6xpss€ ol Conlrectq lnlso oth€rwi66 ñôtod by thls Cmùâct.

{-l O.llllog Rlg 'Subldl to â{¡l¡¡blllty Complote drìtlirig rig, dêr¡0ót{d by Ca¡ùâdq ôs itr Rþ No" $e mid ¡lcm6 qt equlÊruñl þ€¡ng:

OÞwrl€: i¡ekÉ rnd lrodal --,-.]P!l-tld ¡ryeñoil ttt¡ched h.ñ ¡rd m¡dr ¡ 4il hwl. Enoinê!: Mrko,Modsl, ¡nd H.P .,* -Ël!:*-. -

No. on Rig --.-

Pumpsi No I M¿kE, 6¡¡€. gnd Prel ilo.2 M.ke , Si¿e. Bnd PMr Mud Mixlng FuñÞ: M¡kG, siæ. Énd PM¡ ..

A<tlBN: Nmb€r, Mak€. H.P. end W.P. O6trilk q Àta8t: ¡¡ak€, Size, snd Cap.cily

Subs{rudure: Slzo 8rd Cepedty .

Rolery Oriw: lypê Or¡ll Pipe: Si:e l¡. ft; Slza: ¡o. t.

-;¡1-- --

DrfI Co,l¡cr Númbd sñd Size -

- /"-\.

(u s.

Cop,fighl O 2003 uNû Co¡M . 'EM a'- P& 1) lnlernrtlonslAB&lâtþñ ol Dril¡¡¡g CdûâcloÉ Fom p@kied (2r4) 340-94æ .¡*úneC|1'I.\ ..'J' \ ¡yromon-¡oll<// 8lffivt PñyonlêEi

Sho E l$orloltPr. fllk6 & ¡lodel Nunbc.

g.O.P. Clo¡¡ng Uñil: B,O P Aæumulator:

¡: DðfihkliñbeË. 4,3 Imâl9u¡ngs of drill plp€ ,ñddrillcollåß tpæ¡ned 6¡ow- ¡1.4 Cdv€¡ijonsldriltì.rdkÞld 4.t C¡rcul¿ùngmudÊt5. ¡1.8 ñæ6¡åry pip€ mckiând rlggiûg up rutodâ|. 4.7 l¡qmldof¡g€Joâ0¡d¡krd$$¡{L ¡{.S ôhâl. Shskor. 1.9 4.aa 1.11 4.17 4,'13 a.l{ 4,1õ 4.tc 1.11

5. EqUlPMet¡t, ¡¡lAlËÉûÀLêAtlo SERvlcEs To BE FURNISHEþ gY OPERÀÌðRi Tho mâÇhlngry, eeuìpm^1. l@le. elsiúI3, s!ptrlids, l0suumts, æûiær o¡d lobdbgglnaig 1i9tå'd, ùrçl(¡ding sôy tr¡nspol¡lim rêqulld lor suci ltËru, sh¿l ba prov¡ded st the mlll$âtkh åt lhe oxpoflÞof operatoru¡la$ olh€D¡se noled ¡ythlâ Cortå¿t

5.1 Furnleh ond m8irlr¡n ãdôqusl€ rqclw.y ?nd/otËnållo rlghl{lwey,lndudln0 r¡0h16-of.My tE.f!8¡ând w6lü llnÊr, rlvorm¡¡¡ood, hlohwly cra93hl8. galôs ondqtl¡€ gugd¡. '@lìm, 6.2 Strko lffillon, dea¡¿nd grâdo l€tlo¡. ond provld6lùMßuìd. ìtrclud¡n¡ ôútlæ¡ng wtdn ne¡æry. 6.3 Têât laflk8 wth ÞrÞe snd ftûngs. ô.¡a Mrd slorogþ lankr w¡llì pila sld fltinge 6,5 Sepårâþraöh pip€ s¡d ñtl¡¡gs 6.6 Lrh.and trlorirl8 lo Çônnedând dbcoonocl nüd Þ¡k, le¡t l¿nk. and mud û6. æpanloi 5.? 5.t orfil¡g m!d, ciEmiülr, losl¿kcuhtlon mtèrið|, ând olher addil¡v*. 6.S Pip€ lnd ønæÍqn! ld olldrculálng line!, 5,t0 L¡borlo lsy. bu.y r¡d reow. eil drcuJÊünt l¡nèt. 6.t{ orill¡ûg b{s rerftõ. nrmr@lter3, ¡tattlÞss s.rd 8pe4¡rl tæh. 5.12 Cfflel nsh¡09leì 9rrylws rnd l@l r€ñtEl. 6.1t WE lhe@ro tiþ q hôsd¡, se b¡rê¡6 and wie ær. øLl6lf Þqu¡red.

'i¡e 6.14 Goñenl¡oñ¡l@rê bll8, cdo øtche6 and øF b¿rrlt. 6.{6 Dlsmnd @ barèl*tlh hê€d 6.16 Ç9Õenl ond æmün! ærvic..

S,l0 Dirætìoml. elip€î. oro&lrqcp€.i¡l r?rhôs 6.'19 cun dJer p€domllng sryhor. 5.20 ãpþ9¡vg3 snd shmuoo d€v¡@!, t.?l Fornêlì.n testing, hydråúllc f€cludng, aaldi!¡ng å^d olher rel¡ted servl68. 6,22 Equlpænl for drlll lfsm tesüng. ü.2t Mld logqinosêN¡ca8 5,L Sldiloìlcüilg æry14. 5,25 Wddirg seryþe lor weHing hottm joht! ol €sing, luld€ shæ, ñæt 6hoo, lþ€l calhr ród i¡ ðnrecl¡on with lßlãllìng ol Fll hqd eqûipmt ll requ¡ed. 6.26 Cai¡Dg. lubln!. li4e6. sqæn, nôal qrllErs, guldB sñd lìo¡t shæs $d aswíâ(ed Equirrænt 5,27 c€slm ssål.16rs and 6ntrålteÉ 5,2i Wclt hsÞd @nnætionr s¡d ¡lt i{lipnsnt trc Þe hsþlbd tñ or d well o. qo {tæ pDnlrË lor u!6 ln ønnælþn wilJì l€sÙ¡g, æmplstir and opdâtlo{ ol ml 5.28 Spæ¡sl or add€d slora!ô lor nud and cheñ¡cåls 6.30 Cæinohead,APlsr¡sg,lo6lomlothotShw[forthêHmutpGv€nþß8p€cmôd¡nsubpañgBph4.labovô. ö.31 Blo@t preveoler teoting pâclol¡nd tB¡t¡no s6ri6¡. 9,32 RÞplðæffi|o¡8OP rúbbar¡, €l€mn{3 9nd *e16, ¡f æqciqd. after iniliÊltost !,3S Casing Th,c¿d Prct.clæ gnd Côo¡n0 lubric€ots. 6.t4 H¡S k¿¡dng aod êqlipffit ðr nw8sry or âB raquifÉd by l¡*, 5,15 slG &ptlc ¡y6tem, 6.!6 6.¡7 fhlrd oåtu ÊOP ló.tlñd..ñlCe. s,¡8 6,39 5,do 6.11 5.{¿ 6.¡¡3 5.U ó.45 õ.¿€ 6,17 5.r8 6,49 5.60

tu s ÞaFø b*e .'úd A' . Pqo 2) Fw pþv¡drd by Fgrfr6 Oná'ôlôk CopyrighlQ 2003lñlÞr¡ålþMf Ass¡âllon ol Orì¡l¡og Cont æid¡ t2t4) S{G8429' Fomso^Aoisk øm

Q*^

R.víd A!il, m3 8, EAUIP}IEiIT, MA¡ERIALê ANO SEAVICÉS IO AE FURNISHEO SY OESIG'{A'€O PARTY;

Ttìe dlåchi¡ery, sq!¡pmenl, tqols. mltsri¿ls. suppliss, ¡nslrure¡ls, sryìcês, a¡d låbÒr listed as lhe lolfming humbered lteru, ¡ndud¡no âñy Íanspolrlltr fequicd lor ôuct, ilsm unb39 olÌÉNisê ôp6irßd. shs[ be ptovifqd ál thg w€]l lslkx and al lhe exÞe.te af tia patfy hofslo Es d.sþnllèd by ân x ßrk ln lhê

âpp.oÞ(iålê golunn.

Tq Bo Prevlded BY.nd At'lhr Expons' ol Itofr Opsrrtor Gootr¿otor 6.1 Côll¡r and Rdrwàys .... ,( 6.2 D¡lçh€e 8nd rumpr,....... x 6.1 F6l (bc¿tod ðt x 5.4 F@ltines [enqth 6,6 Wllôr al aúr@, indodiog loqúlâd p€mi13.... x 8.6 Walerrell,rncludrng,ôquúdp€rmls. ... .. ß1 Wãter 1ire9, indudrng requìrcd p€rfiits-..- ....-.,.., .. 6.8 Watôr ôtoßgêtðnks Épac¡ty (Por tlg lnvênlary). . .-., . 6.0 ---_ Pohblâ wtá and bottlod w¡t.r......, x 0.10 !9bq lq operale Ftsr wEll or walor pump lRig crew only) ., .,,...,...... .,.. .

6.lt Ma¡ntenânæ of Ét¡rFll, ìl rgqui.ed.. -.... . l 6.12 Wåt6 Plmp,.,.. 6,1¡ FuBl lqwat€r pump.... .,

5.14 M€ts lcr engines and Þole¡s. d mlo6 å0d frud puûp9.. ..,..,..,...,.. .... x 6,1õ Tránsponaüon 9t cotrodðar propefty.

sF Prr¡onplt 4,1 ¿.2 6,16 Mst€dals lor"boxiru id'.iç snd denlck. .. t{rA 6.11 Sp6ta{slrinosof d.illpip€ ând dñllællar6 âs lollmli

x

6,10 KBlly ¡olnts, 3ùbs, é16B10rô, to¡96, llipg 8nd 9OP råmt lø v9ê wlù rpeqql

x

a,l9 for KetlyJoìnl sñd eac}rjoint inride ol Srrlðæ Ca8ìnq es ráquied, sklno6 ol díill fip€, .-.

6,?0 Orill pipe prolælord lo. Xe{ltþnt and drill pip6 rùnñlrE inld€ o, Proleclio¡ 6.2t Rele ol FGMIÞtìon retdin0 dêviæ {C.nd0 e}ð!(rcn¡c}....., ...,,, , .,,,. . ... . -.. 8,22 €xt€ t¿bq lq Môrñg ¿nd (æntng ærì¡q (Casin0 @3)., ..,.....,... ...- . x 9.23 )( e .24 Pdtr&iing longg x 8.25 x s.2ô Tublrc leols x PMr lubino !o0O . .,. x 6.2t Crd g@ls, N'A F.2t NIA 0.¡0 Seryæ TW ßoâl ,..,. ... . ., ,., , ñtA i,¡/A

3.r.t R6t Hol€ -........,,.....,,...-........... .

6,32 Moùæ Hole 6.tr Reôêrve P¡ì$......,.... 6.!a Upp€r Kel¡y Cæk x 6.36 Lowt KellyV"tve-.,... X 6.30 Orií P¡!€ SslelyValve x 6,3? lnsid6 Bl()wtPre€ñ10 e.38 Ddllino hole lor or driving lor ænduclor Þ|pe . ..,.. . .,..,,,. 6.30 Chsrges. øil ol bonds lor publìc roads .- 0.10 Pod¿ble T.ilel... 6.,11 fralh R$pt6cfe. 5,12 l¡{þ}+¡o¡}*Shol€ Sh.kor (Por rlg l¡vonto.yl. x 8.¿t Shgle Shake. ssænr 6.44 Mqd Cl€aner,. .- .. x 6.45 Mùdlc¿s Sepðrator- -

6.,16 x 0,47 0,48 I 6.{t Ceótr¡luge. -... ....,., 8.50 Rolåtíñ0 l-loåd .....- x 6.6{ Rol¡ting Hsd Rql¡bers .

ô,62 Hydrevlb Adjusiâblo choke x 6,53 x 0.6r ôgmqu.løüoñ, lyæ lcellulrr ohont for rlq ulo on¡vl ,........,.-. X 6.56 Forklii, Épacily@ JLG Gt066A {10.000 llt llll glth ôutrlooe6} wüh å Sbr lndugtrles Q¡lcft.T¡ch Tru3a booh f,todol l]02-JLG x 6.66 Cqro!¡oo hnib(gr fq pro{e(lrôg drill Éldng. 6,67 6,66 6.69 0.60

(0 S &ñß Øñlrd - 'f.ùbú A' . PaF 3l Form p.ovided Þt túru Or.A-Dlsç copyrighl o 2m3 lntmaùoNlAswiãlifi qf Dûl¡ing Cúlrèclo6 (?11) M0-9128 . Forñ!Odoilk @'t.-

rh,ardáfr, fi9 t, oYt{ERIROVIåION8!

lu.A 4tfrÌ Csrhd . Ìgr¡rÕra Æ- P.r. f, rm¡wlrôdÐFomo-*0"-/ \r'

Copytlght C 2003 lr{añelodl Ataodrt¡oo Oilllîg CO¡rl¡aCOr (2r1) FirfnoñAffifp,rl.'.

f1l':t{20.

oa .." } ¿001t ^íkd^rl, Ex)flãll'8 {Sü Subp¡rur4h o.¡ì

Thô tublrho dru6, ïtÉo rw¡nd bt ltr m lEpoîrtôrt h l¡! ostt ct !y FhoÉ s! ll lï¡iy €t qi; ({} Iho Ëgud oppdùrfiy Clsm pGstbilf ¡n 4'l CFß ôû1.¡. {2} Th! Àc[s cbüþ prnslbðd ln 4t Cti 60.260,4 n¡ddl¡g Ft(anr r¡d rctøo! ol he Vlelntm d ^ltimtfut Añmalrla Âdh Clu!ô ¡or hrñdløpprd wlt€ proædùcd i¡,1! GFR ôû?4t.,0 l¡t Ths

(al 'lto Ctdt'lcâudr dco[plr¡6wl'l ErModltrol¡lldl pnst¡.d h {0 CFR 15.20.

(!.3 ù!e, Cûú -'Þ.1üa t' ?.9a t t Fm pÈvlrod by Fmr OF¡Éob*

m

copyigil c 20ll¡ htrnrlronrl A.¡oddloñ ð, ¡'tlhe coil.¡dm (21{, 340¡4¡ú. FmsOriAOhú \'

t

\_

EXHIBIT "C"

coNlRAtroR6 SPEClAL PROVISIO¡lS

1. Conlractor shall furn¡sh initial t€sted annulãr preventeÍ el8mênt. lf lha ê16¡nent is dãmag€d du€ to d8struclivs glemsnt.

ètêmsnts fntroduced to thé mud, €(r¡ppîng, or oxcess¡ve lssling, the Op6rålor sgle€s to fufniSh å no!ry

2, Chemicâl Addltives to (he mud for prevenl¡ng orìdât¡on of lhe dlll strlng end hydrogan sulf¡d€ scavengfng ohemioalÊ lo l¡âåt thê mud or drill¡ng lluid as nooessary to romove sll traces o¡ HzS End lo côntrol oxygen sorosion lô Þe lu¡n¡Ëhed by lh€ opêrâtor

3. Opénlor shallfumish all labor, squ¡pm€nt ãnd mater¡al8 to alean rig after use ôf oil baso mud aM/or éompletlon lu¡d.

4. Ëxtra co6l to r¡g up lor dr¡ll¡ñg with oil þase mud includ¡ng, but ¡ot llmitod lo, tho coöt o, pll coveE, åteam ôlesners, drip pan8, mud vacs ¿nd cleaning materials shall be at Operator's exPensô.

5. ¡ô¡tial lnsp€cl¡ôn of all Contractols drill pipe, drill Õollårs, kôlly, kellyjôints, velvås, subs 8nd IWDP shsll þ€ at ConlradófB oxpengo. All rspalrs, ¡€placemênls ând haul¡ng for repa¡rs wìll bê at Cont.âclods expense. (fhe lnsp€díon w¡ll þa to T.H. Hill, DS1, Category 3 or its equ¡valent).

0. Subsequent inspec{ione (lnclud¡ng thê ¡nspÉclìoñ at lhê end of the lob) óf all dr¡ll plpo, dd{ cóll¿.â, kelly, kelly ¡olnts, valves, su¡s snd HWDP shall be €t the operalofs expênsê. All r€Palr', ßplscamonts snd hsuling fof iopairs wlll be at OpeÊtor's ôxpsnse. (ThÊ insPecllon çill bo lo T.H. l'llll, 0S1, Catogory 3 or il8 equlvalent).

7. Opsrator shall fum¡sh all ¡creens for ¡h¿le shakeß.

8. Operator shsll fuml6h sll polable watsr for Op€rátor and Conlraclor peñ¡onnel.

t. Op6rator, Op6ratolg repr€gêntstives snd Operatofs suÞconlractors âhâll supporl Contrector'3 sãfèty Pollci€s snd Prõædurss ln geno¡al and ¡n parliculár, w¡ll comply wílh all Conhsdofs personsl p¡olectlve oqü¡pment r€qulæm6nt6.

10. Operalor w¡ll be responsible lor th€ provb¡on snd mâ¡ñtenance of åny sile sêptlc systems.

11. Controqtor will provide only one size of mud pump llners. Any addlt¡onsl sizes rcquimd by Oparator w¡ll be provlded by OÞ€rator ål Operato/s cost,

12, All third parly egu¡pmðnl requirod to n¡pple up/fl¡pplB down BoP êquiprnent w¡ll b€ prov¡dôd ând pald lor by Opereior.

13, Thè late6 c¡ntain€d in this Contract are t ãõ€d on the r¡9 lnventory atlached hereto. Any ûìod¡licat¡on or sdd¡tion lo lhê rig requeEted by Op€rätor will be âl op€rulor'6 expensê.

14. Operstor shsll tôst BOP equlpment ât inlervals as 6p66¡ll€d in fôdeta¡, ôtslo ot loc¿l Fgulatlons, API ßeçpmmênded Prâóticê ôr evéry twônty-óns {21) days rvhìchêvsr int€rusl ¡s more âtring6nt All testing will be performed by en ¡ndêp€ndênt têsung compsny ptovlded and ps¡d for by Operåtor.

15. ln 6ll oåsês whers Conlraclor'g employeès (i¡cluding Côntrâctór's dirðcl, borowêd, specisl or glÊtulary añploycot) ¡¡f0 covertd by lhe Lou¡sl8na Worfiecs Comp8nsal¡on Acl, La. R. S. 23:1021 e¡ sê9., Op€rato¡ and Coñltdctor ögm6 lhåt oll Úork and operâtìon8 perlorÌl1sd by Conlrsctor snd its êilployoes pursuant to th¡s agra€menl are an lntegral pãrt of and ár€ lssont¡al to the âbillly ol operâtor to genofetð Opsratols goods, producle ¡nd serviaes. FurlherÍ|oß, Operalor and Cgntador agrês lhet Op€rato¡ ¡s s slalutory 6mployôr of Conlractoiã omployees for p!Þo$es of Ls. R. S, 23:1061 {A} (3), Nolwithstand¡ng Opôf¿to¡". status as É ot€tutory ômployer or speciâl employ6r (ås defined ¡n L¿, R. S. 23:1031 {C)) of Contraç{or's employêe$, Contractor shell ¡ernain primarily respons¡blê for lhe paymeot ol Lou¡siana Worke/s ComP€n881¡on benefils 10 its employeas, and shall ñot be sntitled to seok oontr¡but¡on forany such paynenls from Opelotor.

te, OÞølâtof, ilå p8rsñi, sûbsidlåry ond'tfl¡lbldd corpoÈllon3, a3 $ell sr lhe eñploy69s, olûcoru snd dhêcio¡s ol asch (õôllóoltv6lyi 'OpèratÕl"l ls óogni?onl ôt lho N8bçr3 0¡0pulð Rô¡ölutlon Prögr'¿rñ rnd wiBhrs to bsc/cma an Elåctlng Entlty, as dóllil€d h thåt Paogram. Aoco|Úlngl!, Operótor r¡d Nrbors lnduslr{os. lnû ('Nabors-) horoby sgrÊe lh¡t Cù,€ralor i¡ sô Elécl¡ng Enlity ol lo rll DìspúéE bÊtsrÊôn Opsrator ând lhÊ pmÊånt and tôrñ6r Employeea ånd Appllcânls of N¡bor¡ puúuanl lo lho Nabm Dispule Resolutlon Progrstn aû it o0rËntly èxlBlr snd ås may be amanded from t¡m€ lo lime. ln the event lhe Progrsm ¡s smendod, Nãbors ågrees to Provids a copy ol lñe omendmont(s) to Operator, Opsrator mãy w¡thdrâw lh¡s õlêction to parlicipats ìn thê ProgrârTl at sny t¡me by giving nolice ol such wÍthdrawal to Naborê, such r€vocåliôn to be etfêclive w¡th rê8p€d to a¡y clsims nol yet init¡iutêd ãs of ths dats of revocation. Operator understands that il is bound by the terms of the Program wlth respect to all Disputes ú,¡lh Nâbors emp¡oyêes, r€gardlose of whether suoh Disputs is lnil¡ated by the €mployee or by Operalor. Operstor and Nábor6 actnowledge that (he Progrâm does nôt apply to dlsputes belween OpeÞtor and NaÞür6 ând lhat thð Plogrâm doeâ not alt€r lhê leÍììB of any indeñrt¡fcstion åqr9€ñent bólwæn thm.

17 ln tho èv€nt OperÊtor 6lêcls to drill å 6ubsl¡tute w€lt lt shall bê Operâtois obl¡gatlon to ådv¡ss Conlrâctor ln wr¡t¡ng of such change. Notw¡thstand¡ng Operäloað fållure lo notlfy Contractor of such chångo, the tsrms of thls Conkacl shall epply to such subetitute well as if êuch subslitute well weÞ the wêl¡ spec¡tìed h Pårågráph 1 ofthô Conlrác{.

Exl¡ibit_C_0 I _Oklahoma_May04

NABORS DRILLING USA, LP

PACE ISOO - RIG F26 Programmable AC Electr¡c 15O0llP Rig DRAWWORKST 11500 horsepower AC drawworks featur¡ng regenerative AC btak¡ng. Drawworlcs ls drlven by two (2)

800 horsepower AC motors. Autodrlll functlonality utll¡zlng AC motor'

P1OWER GEilERATION: Three (3) - Caterpillar 35128 engines råted at 1.476 hors€power each, driving one (l) lGto 1365 KW generâtor, for a total of 4,428 horsepower, AC power generatlon, Variable Frequency Drlve (VFD) and MCC unit¡zed in a single house,

¡{Asfl Pyrarnld F¿* Movlng Lãnd Rlg 152'three sectlon måst mðnufactured b API'¡IF specincatlon. Statlc hook load of 1,000,000 lbs. on 12 llnes' Mast ls ralsed and lowered uHllzlng hydrâulic cyllnders' Mast has lntegrated top drlve ralls (enables top drlvê to travel ¡n mast dudng rig move)'

SUBSTRUCTURE: Pyramld hydr¿ullc¿lly elevated substructure w¡th 30' Roor helght and 26' cleðr height under robry beäms, Sub*ructure is rated for 1,000,000 lbs rotary load slmultaneous wlth a 600,000 lbs setback load.

DRILLER,S COI{TROL: Cllmate controlled drlller's cåbin provides htegr¿ted ,oystick control utlllzlng PLC technology. Touch screen contrcls provlde state-of-the-art monitoríng, contl0l of rlg equipment and drllllng pâramet€rs.

l.lUD PUMPS¡ Two (2) 1,600 horsepower mud pumps. Each powered by one (1) 1600 horsepower AC notor' pumps are equipped w¡th hydråullc llner retenuon and pump rod systems,

MUDIAHI(S: Three (3) tânk system total capadty ôpproximately 1,500 BBL; four (4) 6" x 8" centrlfugal pumPs powered by 100 horsepower electric motors. 100 BBI trip tank.

SOUDS CoilTRoLl Threc (3) Swaco Mongoose shale shakers onê (l) swaco mud cleaner wlth desander / desllter,

WATER STORAGE: one (l) 500 BBL water tank,

FUEL STORAGE¡ One (1) 20,000 gâllon dlesel fuel tank,

TRAVEUNG 3LOCK 500 ton travellng block, grooved for 1 3/8" drlll l¡ne.

TOP DRIVE Canrig 1250 AC, 500 ton integrally mounted top dr¡ve system.

ROTARY! 37-L12" rctâry tÀble, lndep€ndenuy drlven by AC motor.

ACCUtrlUl¡TORr slx (6) statlon accumulator unlt wlth one (1) electric trlplex and two (2) air operated pumps. Unlt wlll be des¡gned ¡n accordance wlth API 160. Remote panel wlll be mounted ðt drlll floor'

BLOWOUT Annular: 13-5/8" x 5000 psl. PREVENTERS¡: Double Ram: 13-5/8" x 10,000 psl.

Slngle Ram: 13-5/8"x 10,000 psl. Manltuld: 4-U 16' x 3-1116" t0.000 psl.

DRILL PIPE: As per contract,

DRILL COLI¡RS! As per contrôct,

AOD. EQUIPMËilT! Oedlcated man-¡lder wlnch Automated catwalk / plpe handllng system Varco ST-80 lron Roughneck Two (2) âir operated holsls BOP Handling system Alr operated sllps Rotating mousehole Camera slstem lntercom system Våcuum degasser

Revlslon 0 August tu

EXHlBlr "c"

CONTRACTORS SPECIAL PROVISIONS

CÒn16cto/ âhâll lurnish ¡nìtial lested ânnulsr nrovsnt€l atsmsnl. lf th€ slemEnl lF demsged due lo deslruolivo ôlèmsnls inllodu€d to lh8 mud, 0klÞplnç, or;xFô8lv€ tssl¡ng, lhc OPorator sgfèoE tô furnlrh ¡ nsw 9l€ment'

2, Chom¡câl AddltlveB lo lhâ mud for prsvent¡ng okÌd9oon ol thc drlll 8lrlno ond hydrog€n sullld€ :T""n€]!q chsmlæ16 lo trost lhe mod ot drí¡lin'g llüid 8s n€ø0s¡fy lo rol¡av€ sll lraæa ol HzS and l0 control oxyoên corrocì0n lo bs lurnlshed Þy lhe opêrslor.

3. Operalor shðll furnlsh all lsbor, squlpment snd mtl€luls lo clâen dg qltef uso Ofoll båss m0d ándtol oompletlon llu¡d.

4, Éxlra coot to tio up lor drllling wilh oll bEôa mud includln0, but not llml{ðd to, th€ ç¡¡t 9l plt covorE' âte8m claanera, drip pane, mud vqæ ¡¡nd cleenlng mslerlslc shBll ba Et OPðrôlo¡'o gxpgnsa'

6. h¡t¡sl hsp€cltón of slt Oontraotor'B dr¡ll plpo, dr¡ll c¿lbF, killy, kålly Johl6, valves, subr ¡nd IiWOP ôh¡¡ll b€.åt Conkactór,e oxpanso. Alt ropsks, rspËæmen(6 ònd h'ullné lor rãpglþ wlll bs st Oonlpclo/ð oxpon3ê. {Thg hepâotion will bÊ to T.H, Hill, DSI, Cat6g0ry 3 or lts equlvsl€nt).

6, Subssquefit ln6pec'ttohg (lncludlng lha lñopocllon 9l lho qnd of lhs ¡oÞ) of sll drill l)1P0. úllll cltlrs[. kelly, ke]ly Jolnt¡, ürlvcs, t¡bo ånd ÈWDP s-h¡ll ba á lhê Operatofs sxp€nËâ. A1l r6pn¡rs, rùplô..onnnt¡ ilrìd houl¡no lor 'ropatô wg ti at Operoto¡s expsnse. (Ths inspeclton wlll b6 tû T.H. ¡llll, 0S1. Cålqqry I or il6 ¡{¡ulvåleßt)

OpErator rhall fumlóh sll Ecro8ns for shsle sh¡keß.

8. Opôrôtor 0h8ll lumlih rll polsblB w8ter lôr Op€rEtor snd ConttEclor pgtsonnel'

g. Opsrolgr, Op€r¡to/r tepmoenl¡tives Bnd Op€ralo/â âub-conlrac{otg shàll supporl Contraclofô Sslely Poll0l63 qi¿ pro¿ådi,ros ln genirat and in psrtlùlar, wlll comply with Âll Conlldclo/s porsonsl prol6cllvs equlFment requlrgmont6,

10, Opcrstor r,\,ill bê rsspons¡¡ls lor lhe prwlslon tñd mslnteisnæ olåny s¡ts sopllo syttoml

11. corìlreator wlll prov¡d€ on¡y ong slzE !f mud pumF llrêrs' Any sddllionBl sl!ê¡ Pqulrsd by op6rstot will bÊ próvlded by Opéråtor sl Op€/atôr's æst

12. All thlrd pãny êqu¡pmónt requlred to nipple upinlpple down BOP oquipmBnt wil¡ bâ Þlovldrd ånd Pald for by OÞÊrâtor.

13, The ¡a{o! oonlâlnãd In thls conlract sro basod on lhs rlg Invðnlory otlsched herolo, Any modlflcation or 6ddltian to the rlg rsquôr{ed by Õperator w¡ll bo nl Opðr€tor'8 oxpensê

11, op€ßlor 6hsll l€Bt BOP equlpment ¿t inlervslg ss 6poclÌ6d ln lodgral' 6late or locâl teguletlo¡ô, API ñàcommended PractlB ot êi€ry tui€nty{ns (21 ) dgys wh¡chcvsr inl€rv8| ¡å morô sklnoånt All tlsl¡ng will bô prrformod by an ¡ndrpendsnt teqllng æmp¡ny pÎôvldôd 6nd p¡ld fgr þy Opèrålor.

15, ln ¡ll o¡!€r who¡Ë cantfúçtor,d omploy€€¡ (lrcludìng contf¡cto/r dhûcl, borrowgd, ¡pc!¡â1,0r ltâlutory mofov""ii ¡m mv"la¿ ¡v t¡e l-outstina'WOnòf¡ Com-psn¡¡llon Áct. La. R. S.23rt02l sf soq, Opolslot ünd Coiìtnícrot'sOteol¡ui ¡lt'wo* sø opereUont perlormàd by Contractpr nr16 lt¡ smployóos Punuent to Ûìl¡ sgrosiltont s;o sn lnt0iret pan ol ani sm Ndnlirl lo lhs ót llltt ol Oæfrlor lo genêf¡tô OÞtr¡toir.goott!, pãodUclt anO rorulo¡,- Fuà¡6moË, Opârstor snd Conk¡dor sgrÉ6 thôl Opamtqr lú 0 ðtålúott omplgy¡r ol ôonlrnclo/s 6mployo¡! tûr purpo¡ês ol L¡. R. lS 23;1001 (A) L3),_N,olwlhslindiñ0^OeJn!{! !q!.1 1¡ t otátutory omÞloiol-ot sÞðdàl àmploysr (¡ú dolln.d ln L¡ R, 8 23:1031 lC)l of contrsotorl Ç.mpbIæ:' õi^h.À,jioiilìiit'roniln-i¡r*¡aiity råspbroiirts for th. pEymsnl ot Loulslns Worltsr'! OofiPðnuüon bsnllil¡ lo lle âr¡p¡oyeot, rnd thûll-nöl bå áñ|ruód lo ßâ€k oonlr¡buthn lor sny tucå poyrnolìtu fÛm opot¡toa,

10, Qxôlôlor' rlü P¡mhl- flilbðlÍÍÚrv nnd õll'liutol' üftuntlDns' $3 mll !n llnl (olgloy(oÉ' olllmt¡ lnrj dkætqt ol qKh lc00cctrúoty. ,Ol¡ilutor'l i! cog{rro¡t ôf ltn Nnlrotn l¡lolttrtt l{e}rrr¡[U'ì l,to{¡råfñ tül *'l$hiñ ló bffixrs fiil Etocthrg f.rrltly, ir rtci¡nud lil irnt Piooronr Opornltr ôrú N¡t örr lflúuftlc¡. Inc ('N¡bors'l tu.otry u¡ioc ärur Oiùiifoifr ðil t¡hclil' Ënhy ÐÈ t0 nlt piwriloe .lotwoon Oporslot¡nd lhô P/Gsrnl onÍ ^6ddlûgly.

l:-m¡toyê{! rnrl /\l}û[çoItr uf Nelror: p,liunnt lo llru Nqtrm Dr0f¡ulg fìo8ol'dlon PRglurn o¡ ll cvilonlly '9rft?r ûxi¡l¡ orxi r¿ muv t¡ omòndort kr*¡ lrrm to'llnlo llì lh! ûvonl tho Pro¡ront lt o^ìondtd' NülPl¡ 40réur lo ptovld0 ß ætty jl ttr,iomendnlonù¡l to Opofttor Otlurotor nr¡t mllrdnlw llìir îloclron lO pntlislrôln i[ lho l'lo0rom Ûl ûny tlmd bv olvlno nollco ol ¡uch wlthdraw¡l lo Nobor6, ¡iloll rûeoc¡tlon lo u€ g[06llvc wlth mBp€cl lÔ ony cloiltl nol yct tníttiuredos oi i¡o dals of Îtvocsllon' Ôpurutor und0lElûocb lhtl ll ls l)otlnd by.-tllo lonnr 0l.tlÞ Pro0rím i¡tn r¡¡mct to rll Ulôputor wilh Nàborå urri¡rloyrruu, rügutdluÉB ol wlsllrol tl,ch O¡iPut¡ l¡ ldllrUd,lry lhù rmploys; or by Ot¡or¡ior. Oporotor ûod t'lnlrori oclrnffilodoo lhôl lho l)ro¡rom doDt ñgl-cl)dt l0 dlsputos utimón Operjtor ind NaÞDfj ¡oú thâl th0 Pru.Jrùnr doçr noiôì16r llH lerrù¡ Þl dny irìdqornificol¡on ôflÈ0nÉnl bålwe€n thm,

1l ãdvl8B conkadof. ln ln tlìô evsnl Opef¡tot tlo(tÉ t(, dllll t¡ ü[t]llll¡¡1o úâ¡l ll Êlì¡ll bå operåtols oblìg€tlon to wr¡ilng of suoh òhângÉ. l.totsttt6lñelJno ü¡arrlûl¡ t¡lluro to nollly Conlroctqr ol ough chqngo, lh6 foms of-thls ôonkÉct ehall ¡pplyio 0!u¡r ¡lb¡tìluta Þ;tt ús lrurh auttsl'lurE we[ !rcro thÊ wól¡ 6peollìed ln På6gråph I ol lhs Contrrct.

EXHIBtT "IE-{" Ex}ribi¡-c-0l-okl¡honrâ-Mâvo4

CAUSE NO. 2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVTDUALLY ANd AS NEXT FRIEND $ FOR $ mtnors $ $ $ HARzuS COUNTY, TEXAS $ PENN VTRGINIA OIL & GAS, LP, $ PENN VIRGINIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INC., $ ROYWELL SERVICES,INC. and OAKS $ PERSONNEL SERVICES, INC. dIbIA $ ST THE OAKS GROUP $ 28 1 JUDICIAL DISTRICT

AFFIDAVIT OF ËRNEST V/, NELSON

STATE OFTEXAS $ $ COTINTY OF TIARRIS $

Before me, the undersigned notary, on this day personally appeared Ernest W. Nelson, the affiant, a person whose identity is known to me. After I adrninisterod an oath to affiant, the affiant testified:

i. ',My name is Ernest W. Nclson, I am over 18 years of age, ofsound nrind, and capable of *uking this affidavit. The facts stated in this affidavit ate within my personal knowledge and are true and correct'

2. I am the vice President-contracts for Nabors corporate services, Inc.

3. In my capacity as Vice President-Contracts, I am required to be familiar with Nabors Industries, Inc.'s corporate structure and its various subsidiaries and affiliated companies.

4, Nabors Industries, Inc, is a holding company that does not produce any goods or provide any services. Nabors Industries, Inc. also does not have any employees, nor did it have any employees in 2008 or 2010.

5. During the entirety of its existsnce, Nabors Compleiion and Production Services Co. was a subsidiary of Nabors Industries, Inc.

6. It was the intent of Nabors Drilling USA, LP (as a subsidiary of Nabors Industries, Inc., which is the Sponsor of the Employèe Dispute Resolution Program) that the Electing Entity

EXHIBIT "F''

Agreements attached hereto as Ëxhibits A and B extend to all current and hrturç Disputes be-tween Electing Entities and present and former employees of Nabors Drilling USA, LP. It was also the intent of Nabors Industries, Inc. that the Electing Entity Agreements attached hereto as Exhibits A and B extend to all cunent and future Disputes between Electing Entities and present and former employees of Nabors Industries, Inc,'s subsidiaries. The term "present and former employees" ref'erences the employment status of the Employee at the time of the Dispute and not at the time the Electing Entity Agreemenfwas entered. It was never the intent that the Electing Entity Agreements only co-ver employees currently empioyed on the date of the execution of the Electing Bntity Agreement."

FURTHERA YETHNOT,

pf - day of October, 2015.

Sworn to and subscribed before me by Ernest W. Nelson on the I

Notary and for Texas My Commission expires:

GA¡L K. tofÂiY ?lfrJc IIAIE 0¡ rEÍ48 omllgill¡ .,2-a1-2l'1 6

CAUSE NO.2014-42519

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY and AS NEXT FRIEND $ FoR $ , minors $ $ v $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, LP, $ PENN VIRGTNIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, INIC., $ ROYWELL SERVICES, INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ THE OAKS GROUP $ 2l5th JUDICIAL DISTRICT

ORDER GRANTING DEFENDANTS, PENN VIRGINIA OIL & GAS, L.P. ANI) PBNN VIRGINIA OIL & GAS GP LLC'S MOTION FOR RECONSIDERATION OF DENIAL OF MOTION TO , ARRITRATION AND TO ARATX],

The Court has considered Defendants, PENN VIRGINIA OIL & GAS, L.P. and PENN

VIRGINIA OIL & GAS GP LLC's (collectively, "Penn Virginia") Motion for Reconsideration of

the Order denying Penn Virginia's Motion to Compel Arbitration and Abate, the response, and

the arguments of counsel, if any, and finds that the Motion should be GRANTED.

Signed this _ day of 2015.

PRESIDING JTIDGE

EXHIB¡T ''G''

10151201ã 12222:25 PM Chris Dan¡el - District Clerk Harras County Envelope Nol 7226643 ByI SPENCER, JÊANETTA Filed: l0/51201 5 12;22:25 PM Pgs-1 CAUSE NO.2014-42519 RECSY ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDT]ALLY AS NEXT FRIEND $ FOR $ mtnors $ $ $ T{ARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, L.P., $ PENN VIRGINIA OIL & G,AS GP LLC, $ and MIKE FERGUSON $ 21sth JUDICIAL DISTRICT

ORDER DET\TYING DEFENDâ,NTS, PENN VIRGINIA OIL & GAS' L.P. AND PENN VTRGINIA OIL & GAS GP LLC'S MOTION FOR R.ECONSIDERA,TION OF ORDER DEI.IYING MOTION TO COMPEL ARBITRATION

On this the _ day of October, 2015, came to be heard and considered Defendants, Pelur

Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP LLC's Motion for Reconsideration of

Order Denying Motion to Cornpel Arbitration in the above-styled and nuurbered cause, and the

Court having considered said motion and response is of thc opiuion that the motion should be i¡ all

things DENIED.

It is therefore ORDERED, ADJI.IDGED and DECREED that Defendants, Penn Virginia Oil

& Gas, L.P. and Penn Virginia Oil & Gas GP LLC's Motion for Reconsideration of Order Denying

Motion to Cornpel Arbitration is DENIED.

o o It is further ordered that the statements in the Affidavit of Emest \il. Nelson regarding intent bo d I be stricken in their entirety. N N æ *r SIGNED AND ORDERED this the _ day of October,20'15.

i-i o Signed: ts 1011212015 z JUDGE PRESIDING o É

A Ordcr Denying Defendants, Pcnn Virginia Oil & Gas, I".P. and Penn Virginia Oil & Gas GP LLC's Page I of I o Motion for Reconsíde¡atior: ol Order Denying Motion to Courpel Arbitlation ù U

EXHIBIT ''D''

*f

I, Chris Daniel, District Clerk of Haris County, Texas certify that this is a true and correct copy ofthe original record filed and or recorded in my office, electronically or hard copy, as it appears on this date. Witness my official hand and seal of office this October 13, 2015

CertifiedDocumentNumber: 6740842?T_otal_Ppges: I

t^Lør¿ Chris Daniel, DISTzuCT CLERK HARRIS COI.'NTY, TEXAS

fn accordance with Texas Government Code 406.013 electronically transmitted authenticated documents are valid. If there is a question regarding the validity of thÍs document and or seal please e-mail support@hcdistrictclerk.com 1011312015 3:56:25 PM Chris Daniel - District Clerk Harris County Envelope No. 7357398 By: lrma Medina Filed: 10/13/2015 3:56:25 PM

CAUSE NO.20t4-425t9

ALFREDO DE LA GARZA, $ IN THE DISTRICT COURT OF INDIVIDUALLY and AS NEXT FRIEND $ FOR $ , minors $ $ V $ HARRIS COUNTY, TEXAS $ PENN VIRGINIA OIL & GAS, LP, $ PENN VIRGTNIA OIL & GAS GP, LLC, $ MIKE FERGUSON, TRIFECTA $ OILFIELD SERVICES, LLC, CUDD $ PRESSURE CONTROL, TNC., $ ROYWELL SERVICES, INC. and OAKS $ PERSONNEL SERVICES, INC. d/b/A $ THE OAKS GROUP $ 215th JUDICIAL DISTRICT

PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGINIA OIL & GAS GP LLC'S NOTICE OF APPBAL

Pursuant to Texas Rule of Appellate Procedure 25, Defendants, Penn Virginia Oil & Gas

GP, LLC and Penn Virginia Oil & Gas, L.P. (collectively "Penn Virginia"), file their Notice of

Appeal of this Court's appealable Order on Penn Virginia's Motion to Compel Arbitration and to

Abate, which was signed by the Honorable Elaine H. Palmer on September 11, 2015 (Exhibit

"1"), and the appealable Order on Penn Virginia's Motion for Reconsideration of the Order

Denying the Motion to Compel Arbitration, which was signed by the Honorable Elaine H.

Palmer on October t2, 2015 (Exhibit *2"). In supporl of this Notice of Appeal, Penn Virginia

respectfully would show the following:

1. This case is pending in the 215th Judicial District Court of Haris County, Texas under Cause Number 2014-42519;

2. The Order denying Penn Virginia's Motion to Compel Arbitration was signed on September l l, 2015. The Order denying Penn Virginia's Motion for Reconsideration of the Order Denying the Motion to Compel Arbitration was signed on October 12,2015;

3. Penn Virginia desires to appeal from the referenced Orders;

EXHIBIT ''E"

4 Penn Virginia appeals to the First or Fourteenth Court of Appeals, Houston, Texas;

5 Penn Virginia Oil & Gas GP, LLC and Penn Virginia Oil & Gas, L.P. are filing this notice;

6. This is an accelerated appeal pursuant to Texas Rule of Appellate Procedure 28.

Penn Virginia respectfully requests that this Court take notice of Penn Virginia's desire

and intention to appeal. Penn Virginia further requests that this notice be forwarded to the First

or Fourteenth Court of Appeals as required by the rules and/or local procedure so that Penn

Virginia may tender the appropriate fee to the appellate clerk and proceed with its appeal.

Respectfully submitted,

/s/ Thomas J. Smith State Bar No. 00788934 tsmith@gallowayj ohnson. com Kelly C. Hartmann State Bar No. 24055631 khartmann@gallowayj ohnson. com Alexis B. Hester State Bar No. 24072807 ahester @gallowayj ohns on. com GaLLowaY, JoHNsoN, TouprrNs Bunn& Surrn 1301 McKinney, Suite 1400 Houston, Texas 77010 (713) see-0700 (713) 599-0777 - facsimile

Arronxnvs FoR DEFENDANTS, PENN Vrncrnrr Ou, & Gas GPo LLC ¡nn PnNN VrRcrNrA Orr, & Gaso L.P

CERTIT'ICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing document has been served electronically, by and through the Court approved electronic filing manager, to participating parties on this 13th day of October 2015, as follows:

John David Hart J. Javier Gutierrez Law Ornrcns OF JonN Dtvrn Hlnr Ana Laura Gutierrez rWells Fargo Tower Tnn GurrrnnnzLlw Frnvro INc. 201 Main Street, Suite 1720 700 East Third Street Fort V/orth, T exas 7 6102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 361-664-7245 Counselfor Plaintiffi Counselfor fntewenor, John PsuI Adame Benjamin A. Escobar, Jr. Brit T. Brown J. J. Knauff BETRNE, MAYNARD & P.a.nsoN, L.L.P. The Miller Law Firm 1300 Post Oak Blvd., Suite 2500 Turtle Creek Centre Houston, Texas 77056 3811 Turtle Creek Blvd., Suite 1950 Phone 713-623-0887 Dallas, Texas 75219 Fax 713-960-1527 Phone 469-916-2552 Counsel for Defendønt, Cudd Pressure Fax 469-916-2555 Control, Inc. Counselfor Defendant, Penn Vírginia MC Energ¡ LLC

/s/ Kellv C. Hartmann Kelly C. Hartmann

p-l ' tP,ro'/ ,

CAUSE NO.2014-42519 îemy

ALI'REDO DE LA GARZA, $ IN TIÍE I}ISTRICT COURT OF' INDIVIDUALLY and AS IYEXT FRIEND $ $ mlnors $ $ v $ HARRIS COT.INTY, TEXAS $ PEI\N VIRGINIA OIL & GAS, L.P., PENN $ VIRGINIA OIL & GAS GP LLC, $ MrKE X'nRGUSON, TRTTECTA OILFTELI) $ SERVICES, LLC, CUDD PRESSURE $ CoNTROL,INC., ROYWELL $ 215th JT]DICIAL DISTRICT SERVICES, fNC., and OAKS PERSOMEL $ SERVICES, NC. d/b/a TIIE OAKS GROUP $

ORDER DEI{YING DEX'ENDANTS, PENN VIRGINIA OIL & GAS, L.P. AND PENN VIRGIMA OIL & GAS GP LLC'S MOTION TO COMPEL ARBITRATION AND 1O ABATE

on l lT day of Syt^l , 20L5, came to be considered Defendants, Penn

Virginia Oil & Gas, L.P. and Penn Virginia Oil & Gas GP.LLC's Motion to Compel Arbitration

and to Abate. After considering the motion and hearing the arguments of counsel, this Court is of

the opinion that the Motion should be DENIE}

Ser€usep "nd l-ìefendant Oak.o pæ$o¡ìñel Serv'eeq lre ,l/hln The Oa@ o . o Þo d Pr !

¡- ô\ F'Hg,HÐ -V{-

$ ol Chris Daniel Ðietrict Glerk SIGNED thiS day of 201,5

\ô ãå SEP I æ æP Ëç'õ, H. s¿ä F fLE È JUDGE. 215TI{ DISTRICT COURT ftsË HEE ' äg cl.: ìd HË & Gas, L.P. and Penn VirginÍa Oil & Gas GP LLC's I ofl Order Denying Defendants, Penn Virginia Oil Page 'E o Motion to Compel Arbitation and to Abat€

EXHIBIT "1''

0f (J {

f

*

I, Chris Daniel, District Clerk of Hanis County, Texas certi$ that this is a truc and correct copy ofthe original record {ïled and or recorded in my office, electronically or hard '

copy, as it appears on this date. Witness my official hand and seal of office this October 13.2015

Certified DocumentNumber: 66994917 Tqtal Pages: 1

&r,LØ^¿ Chris Daniel, DISTRICT CLERK HARRIS COUNTY,TEXAS

In accordance with Texas Government Code 406.013 electronically transmitted authenticated documents are valÍd. If there is a question regarding the validity of this document and or seal please e-mail support@hcdistrictclerk.com 1U5/241512:22:25 PM Chr¡s Dan¡el - District Clerk Harris County Envelope No:7226643 By: SPENCER, JEANETTA Filed: I 0/5/2015 12:22:25 PM Pgs-1 CAUSE NO. 2014-42519 RECSY ALFREDO DE L.A, GARZA, $ IN THE DISTRICT COURT OF INDT\¡IDUALLY AS NEXT F"RIEND $ FOR $ $ $ v $ }IARRIS COUNTY, TEXAS $ PENN VIRGINIÄ OIL & GAS, L.P., $ PENN VIRGINIA OTL & GÄS GP LLC, $ and MIKE FERGUSON $ 215th JUDICIAL DISTRICT

ORDER DENTYING DEFENDANTS, PENN VIRGINIA OIL & GAS, L.P. AND PENNVIRGINIA OIL & GAS GP LLC'S MOTION FOR RECONSIÐERATION OF ORDER DEhTYING MOTION TO COMPEL ARBITR.A.TION

On this the day of October, 2015, came to be heard and considered Defendants, Penn -_ Virginia Oil & Gas, L.P, and Penn Virginia Oil & Gas GP LLC's Motion for Reconsideration of

Order Denying Motion to Compel Arbitration in the above-styled and nunbered cause, ¿nd the

Court having eonsidered said motion and response is of the opinion that the motion should be in all

things DENIED.

It is therefore ORDERED, ADJUDGED and DECREED that Defendants, Penn Viryinia Oil

& Gas, L.P. and Penn Virginia Oil & Gas GP LLC's Motion for Reconsideration of Order Denying

Motion to Conrpel Arbitration is DENIED.

o Ii is fi.¡rther ordered that the statenlents in the Affidavit of Emest W. Nelson rcgiuding intent bo (! Ai I be stricken in their entirety.

c.¡ ôt st æ O r!. SIGNED AND ORDERED this the_day of October,20l5. r\o Signed:

€o 10/1212A15 E z JUDGEPRESIDING o É R â C)rdcr l)crrying Dcfendants, PcnnVirginia Oil & Gas, I-.P. and Penn Virginia Oil & Gas GP LLC's Page I of I o Motion lor Recorrsideration ol Order l)eirying Motion to Courpel Arbitlation o fl

EXHIBIT "2"

*f

f

*

I, Chris Daniel, District Clerk of Haris County, Texas certify that this is a true and correct copy ofthe original record filed and or recorded in my office, electronically or hard copy, as it appears on this date. Witness my official hand and seal of office this October 13.2015

CertifiedDocumentNunrber: 67408422TotplPages: I

t^Lør¿ Ch¡is Daniel, DISTRICT CLERK HARRIS COLNTY, TEXAS

In accordance with Texas Government Code 406.013 electronically transmitted authenticated documents are valid. If there is a question regarding the validity of this document and or seal please c-mail support@hcdistrictclerk.com

ACCEPTED 01-15-00867-CV FIRST COURT OF APPEALS HOUSTON, TEXAS 10/29/2015 11:29:28 AM CHRISTOPHER PRINE CLERK

NO. 01-15-00867-CV

FIRST COURT OF APPEALS HOUSTON, TEXAS

PENN VIRGINIA OIL & GAS GP, L.L.C. & PENN VIRGINIA OIL AND GAS L.P., Appellants.

V.

ALFREDO DE LA GARZA, INDIVIDUALLY AND AS NEXT OF FRIEND FOR XXXXXX XX XX XXXXX AND XXXXXXXX XX XX XXXXX, MINORS & JOHN PAUL ADAME, INDIVIDUALLY AND AS NEXT OF FRIEND OF XXXXXXXXX XXXXXX XXXXX, XXXX XXXX XXXXX, XXX, AND XXXX XXXXXXXX XXXXX, MINORS, Appellees.

On Appeal from the 215TH Judicial District Court, Harris County, Texas Cause No. 2014-42519

APPELLANTS’ REPLY TO APPELLEES’ RESPONSES TO MOTION FOR EXTENSION OF TIME TO FILE NOTICE OF APPEAL

To the Honorable Justices of the First Court of Appeals:

Appellants, Penn Virginia Oil & Gas GP, LLC and Penn Virginia Oil & Gas,

L.P. (collectively “Penn Virginia”) file this Reply to Appellees’ Responses to Penn

Virginia’s Motion for Extension of Time to File Notice of Appeal pursuant to

EXHIBIT "B"

Rules 26.3 and 10.5(b)(2). In support thereof, Penn Virginia would respectfully

show this Honorable Court as follows:

I. The facts set forth in Penn Virginia’s Motion for Extension reasonably explain its need for an extension. 1. In Appellees’ Responses to Penn Virginia’s Motion for Extension,

Appellees refer to two Notices of Appeal, one of which was filed in 2010 by Mr.

Thomas J. Smith, the other of which was filed in 2011 by the same three attorneys

listed on the present matter. The 2010 filing was dismissed for want of jurisdiction

because it was untimely filed while the 2011 Notice of Appeal was filed timely.

2. Counsel would show that these examples provide further evidence

that the failure to timely file in this instance was exactly as counsel described in the

Motion for Extension: a mistake. Mr. Kelly Hartmann and Ms. Alexis Hester have

not appeared as counsel on a Notice of Appeal since the 2011 filing and have not

had occasion to familiarize themselves with the Texas Rules of Appellate

Procedure or work with the Texas Rules of Appellate Procedure since that time.

Four years later, counsel cannot attest with any certainty that the 2011 Notice of

Appeal was filed with objective awareness of the twenty day deadline, or that the

Notice of Appeal was timely filed simply by chance.

3. While the 2011 filing noted that the appeal was an Accelerated

Appeal, counsel failed to refresh their memories and review Texas Rule of

Appellate Procedure 28.1(a) when the Order denying Penn Virginia’s Motion to

Compel Arbitration was issued on September 11, 2015. In error and due to a lack

of familiarity with the Texas Rules of Appellate Procedure, counsel believed Texas

Rule of Appellate Procedure 26.1 applied.

4. The “credible facts” explaining the need for the extension are,

painfully, quite simple: counsel committed an oversight and believed that the

deadline was thirty days and not twenty days. Counsel committed an unfortunate

human error while practicing in an area of law and dealing with a set of procedures

that are otherwise foreign to it. Counsel was focused on preparing its Motion for

Reconsideration during that period and was making all efforts to address the latent

ambiguities identified by the Court with regard to the contracts between Penn

Virginia and Nabors, as they related to the Nabors Dispute Resolution Agreement.

As a result and unknowingly, Counsel filed the Motion for Reconsideration on the

very deadline to file the Notice of Appeal.

5. With regard to Appellees’ argument at paragraph 11 that “[Penn

Virginia’s] counsel failed to file the notice of appeal even within the thirty days

they aver they believed was the deadline,” counsel would show that it did not

realize the error until after the actual, twenty day deadline had passed. As soon as

counsel discovered that the Texas Rules of Appellate Procedure allowed for a

fifteen day extension, counsel filed Penn Virginia’s Notice of Appeal and the

Motion for Extension followed soon thereafter. The Notice of Appeal, which was filed only one day after what counsel had originally believed was a thirty day

deadline, was filed as soon as practicable upon realizing that an extension was

possible. Penn Virginia would show that, fortunately, the fifteen days had not

expired by the time the Notice of Appeal was filed.1

6. Moreover, Texas Courts have held that such error and mistake is

sufficient basis for granting an extension of time. In particular, the Texas Supreme

Court has stated that “‘any plausible statement of circumstances indicating that

failure to file ... was not deliberate or intentional, but was the result of

inadvertence, mistake, or mischance” is a reasonable explanation, “even though

counsel or his secretary may appear to have been lacking in that degree of

diligence which careful practitioners normally exercise.’” Dimotsis v. Lloyds, 966

S.W.2d 657, 657 (Tex. App.—San Antonio, 1998) (quoting Garcia v. Kastner

Farms, Inc., 774 S.W.2d 668, 670 (Tex. 1989) (emphasis added)). “In other words,

this standard “encompasses the negligence of counsel as a reasonable explanation.”

Dimotsis, 966 S.W.2d at 657.

7. In Dimotsis v. Lloyds, a 1998 case out of the San Antonio Court of

Appeals, the attorney seeking the deadline filed a verified statement in which he

explained that he “erroneously calculated the perfection deadline by adding thirty

1 The deadline for Penn Virginia to file its Notice of Appeal fell on October 1, 2015, which was twenty days after the September 11, 2015 Order denying the Motion to Compel Arbitration was issued. Fifteen days from October 1, 2015 was October 16, 2015. Penn Virginia filed its Notice of Appeal on October 13, 2015 and filed its Motion to Extend on October 14, 2015.

days to the date the trial court overruled [Appellant’s] motion for new trial.” Id. at

657-58. The Court held that Appellant’s late filing “was not intentional or

deliberate, but was due to her attorney's misunderstanding of the law” and held that

“the explanation offered is a reasonable one.” Id. at 658.

8. The Houston First Court of Appeals has accepted similar explanations

as reasonable and has granted an extension when a party’s attorney miscalculated

the deadline to perfect an appeal, but that such error was the result of human error

and a mistake. Hernandez v. Lopez, 288 S.W.3d 180, 184 (Tex. App.—Houston

[1st Dist.] 2009, no pet.) (“Because George has also filed a factual explanation

indicating that he, in good faith, believed that he filed on time and had

inadvertently miscalculated the dates, we imply an extension of time, and we

conclude that George's notice of appeal was timely filed.”).

9. Texas Rule of Appellate Procedure 10.5(b) permits an extension of

time so the Texas Appellate Courts are not immediately divested of jurisdiction

when unintentional errors are made, and so that the substance of appellate issues

may be evaluated and reviewed by the intermediary courts. The Texas Supreme

Court has articulated the proper standard for a “reasonable explanation” and

counsel has sworn that its own mistake was the basis for its failure to timely file.

Counsel who prepared the Notice of Appeal and Motion for Reconsideration had not reviewed the Texas Rules of Appellate Procedure since 2011 and was

unfamiliar with the applicable timeline for filing.

II. Granting an Extension does not cause Prejudice to Appellees

10. Finally, Penn Virginia would show that permitting this extension and

allowing the fifteen day extension to file does not prejudice Appellees in any

manner whatsoever. The original deadline for Penn Virginia to file its Notice of

Appeal fell on October 1, 2015. If a fifteen day extension is granted, the deadline

extends to October 16, 2015. Penn Virginia filed its Notice of Appeal on October

13, 2015 and filed its Motion to Extend on October 14, 2015. Penn Virginia’s two

week delay in filing from October 1, 2015 to October 13, 2015 does not cause any

prejudice or hardship to Appellees.

III. Penn Virginia should not be punished for the error of counsel

11. Penn Virginia would urge this Court to exercise its discretionary

authority and extend jurisdiction over this matter. Penn Virginia filed its Notice of

Appeal within fifteen days after the October 1, 2015 deadline. Penn Virginia did

not deliberately, strategically, or intentionally delay in filing its Notice of Appeal

in an effort to subvert the Texas Rules of Appellate Procedure or engage in any

gamesmanship with the trial court or Appellees. Prior to learning of its error,

counsel for Penn Virginia believed that, with the thirty-day deadline, it would have

the opportunity to address the trial court’s specific concerns as to a particular and nuanced ambiguity in the contracts between Penn Virginia and Nabors. Penn

Virginia should not be penalized for the errors made by its counsel and would

request the opportunity to litigate the issues set forth in its Motion to Compel

Arbitration, particularly the application of the arbitration provisions set forth in the

Nabors Dispute Resolution Program.

PRAYER

Accordingly, Appellants, Penn Virginia Oil & Gas GP, LLC and Penn

Virginia Oil & Gas, L.P. pray that this Court grant this Motion to Extend the

Deadline to File a Notice of Appeal and permit Penn Virginia to present to this Court

its arguments and authorities in support of arbitration. Penn Virginia further prays for

such other and further relief, both special and general, at law and in equity, to which it

may be justly entitled.

Respectfully submitted,

/s/ Thomas J. Smith Thomas J. Smith State Bar No. 00788934 tsmith@gallowayjohnson.com Kelly C. Hartmann State Bar No. 24055631 khartmann@gallowayjohnson.com Alexis B. Hester State Bar No. 24072807 ahester@gallowayjohnson.com GALLOWAY, JOHNSON, TOMPKINS BURR & SMITH 1301 McKinney, Suite 1400 Houston, Texas 77010 (713) 599-0700 (713) 599-0777 – facsimile

ATTORNEYS FOR APPELLANTS, PENN VIRGINIA OIL & GAS GP, LLC AND PENN VIRGINIA OIL & GAS, L.P.

CERTIFICATE OF SERVICE

I hereby certify that, in accordance with Rule 9.5 of the Texas Rules of Appellate Procedure, I have served the foregoing document upon the following attorneys by electronic service, personal mail, by commercial delivery service or by fax on October 29th, 2015:

John David Hart J. Javier Gutierrez LAW OFFICES OF JOHN DAVID HART Ana Laura Gutierrez Wells Fargo Tower THE GUTIERREZ LAW FIRM, INC. 201 Main Street, Suite 1720 700 East Third Street Fort Worth, Texas 76102 Alice, Texas 78332 Phone 817-870-2102 Phone 361-664-7377 Fax 817-332-5858 Fax 361-664-7245 Counsel for Appellee, Alfredo Counsel for Appellee, John Paul De La Garza and his minor children Adame and his minor children, and Intervenor, Ernesto Gonzalez, Jr.

/s/ Kelly C. Hartmann Kelly C. Hartmann

r{o. 01-15-00867-CV

FIRST COURT OF'APPEALS HOUSTON, TEXAS

PENN VIRGINIA OIL & GAS GP, L.L.C. & PENN VIRGINIA OIL AND GAS L.P., Appellants.

V.

ALFREDO DE LA GARZA, INDIVIDUALLY AND AS I{EXT OF'F'RIEND FOR XXXXXX XX XX XXXXX AND XXXXXXXX XX XX XXXXX, MII{ORS & JOHI{ PAUL ADAME, INDIVIDUALLY AI{D AS NEXT OF'FRIEND OF' XXXXXXXXX XXXXXX XXXXX, XXXX XXXX XXXXX, XXX, AND XXXX XXXXXXXX XXXXX, MINORS, Appellees.

On Appeal from the 215rH Judicial District Court, Harris County, Texas Cause No. 2014-42519

Vnnrnrc¡,TloN oF KELLy C. H¡,nrprlxN

STATE OF TEXAS $ $ COUNTY OF HARRIS $

BEFORE ME, the undersigned authority on this day personally appeared Kelly C.

Hartmann, who after being duly sworn upon his oath stated as follows:

1. "My name is Kelly C. Hartmann. I am over twenty-one (21) years of age. I am of

sound mind and in all ways competent to make this affidavit and verification.

2. I am one of the attorneys of record for Defendants, Penn Virginia Oil & Gas, L.P.

and Penn Virginia Oil & Gas GP, LLC. I have personal knowledge of the facts stated in this

affidavit and those facts are true and correct.

3. I have reviewed Appellant's Motion for Extension of Time to File Notice of

Appeal and Appellant's Reply to Appellees' Response to the Motion for Extension of Time to

File Notice of Appeal, In my personal knowledge, the Motion truly and correctly recites the

factual allegations set forth in the pleading."

C.

mea public, which witness my hand and

Notary in and for the Texas

ROBYN S. MORGAN Nolory Public, Sloie of lexos My Commission Expites July 30, 2018