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The Law Office of Joseph R. King <br />March 18, 2008 <br />J.C. York <br />J&'I" Consulting, Inc. <br />1400 West 1.22°`' Avenue. Suite 120 <br />Westminster, CO 80234 <br />RE: Derr Pit/Broken Arrow <br />Dear J.C.: <br />6'343 hest 120th Avenue <br />Suite 220 <br />BroornfceU. CO 80020 <br />TEL- 303-327-6675. FAX: 303-327 -6677 <br />I have spoken to John .Butera with Anadarko Petroleum about a surface use agreement for the <br />Derr Pit. He has some questions about the dedicated drilling sites, and the economics of <br />relocating the existing well. These are both issues we have anticipated. <br />I expect to meet with Mr. Butera and start to negotiate a surface use agreement next week. In the <br />interim, he transmitted the draft agreement I have enclosed. I expect we should be close to an <br />agreement within thirty days. <br />Please call me if you have any questions. <br />Sincerely; <br />9 <br />? r <br />Jojh King <br />cc: Darwin Derr <br />9