[Federal Register Volume 60, Number 176 (Tuesday, September 12, 1995)]
[Notices]
[Pages 47376-47390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22581]



-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION
[File No. 951-0037]


Phillips Petroleum Company and Enron Corporation.; Consent 
Agreement With Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Consent agreement.

-----------------------------------------------------------------------

SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair acts and practices and unfair methods of competition, this 
consent agreement, accepted subject to final Commission approval, would 
require the Houston, Texas-based Enron Corporation not to sell 830 
miles of natural gas pipe and related assets within the Texas and 
Oklahoma Panhandle region to the Bartlesville, Oklahoma-based Phillips 
Petroleum Company.

DATES: Comments must be received on or before November 13, 1995.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Ronald B. Rowe, Bureau of Competition, Federal Trade Commission, S-
2602, 6th Street & Pennsylvania Ave., NW., Washington, DC 20580, (202) 
326-2610.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the following consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval.
    The Federal Trade Commission (``Commission''), having initiated an 
investigation of the proposed acquisition by Phillips Petroleum Company 
(``Phillips''), through its subsidiary GPM Gas Corporation (``GPM''), 
of the outstanding voting securities of Enron Anadarko Gathering 
Company and Transwestern Anadarko Gathering Company, two subsidiaries 
of Enron Corp. (``Enron''), that will own certain gas gathering assets 
currently owned by Transwestern Pipeline Company (``Transwestern'') and 
Northern Natural Gas Company (``Northern Natural''), two other 
subsidiaries of Enron, and it now appearing that Enron and Phillips, 
hereinafter sometimes referred to as ``Proposed Respondents,'' are 
willing to enter into an agreement containing an Order to cease and 
desist engaging in certain activities, and providing for other relief:
    It is hereby agreed by and between Proposed Respondents, by their 
duly authorized officers and attorneys, and counsel for the Commission 
that:
    1. Proposed Respondent Phillips is a corporation organized, 
existing, and doing business under and by virtue of the laws of the 
State of Delaware, with its office and principal place of business at 
Phillips Building, Bartlesville, Oklahoma 74004.
    2. Proposed Respondent Enron is a corporation organized, existing, 
and doing business under and by virtue of the laws of the State of 
Delaware, with its office and principal place of business at 1400 Smith 
Street, Houston, Texas 77002.
    3. Proposed Respondents admit all the jurisdictional facts set 
forth in the draft complaint.
    4. Proposed Respondents waive:
    a. any further procedural steps;
    b. the requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law;

[[Page 47377]]

    c. all rights to seek judicial review or otherwise to challenge or 
contest the validity of the Order entered pursuant to this agreement; 
and
    d. any claim under the Equal Access to Justice Act.
    5. This agreement shall not become part of the public record of the 
proceeding unless and until it is accepted by the Commission. If the 
agreement is accepted by the Commission it, together with the draft of 
complaint contemplated thereby, will be placed on the public record for 
a period of sixty (60) days and information in respect thereto publicly 
released. The Commission thereafter may either withdraw its acceptance 
of this agreement and so notify the Proposed Respondents, in which 
event it will take such action as it may consider appropriate, or issue 
and serve its complaint (in such form as the circumstances may require) 
and decision, in disposition of the proceeding.
    6. This agreement is for settlement purposes only and does not 
constitute an admission by Proposed Respondents that the law has been 
violated as alleged in the draft of complaint, or that the facts as 
alleged in the draft complaint, other than jurisdictional facts, are 
true.
    7. This agreement contemplates that, if it is accepted by the 
Commission, and if such acceptance is not subsequently withdrawn by the 
Commission pursuant to the provisions of Sec. 2.34 of the Commission's 
Rules, the Commission may, without further notice to the Proposed 
Respondents, (1) issue its complaint corresponding in form and 
substance with the draft of complaint and its decision containing the 
following Order to cease and desist in disposition of the proceeding 
and (2) make information public with respect thereto. When so entered, 
the Order to cease and desist shall have the same force and effect and 
may be altered, modified or set aside in the same manner and within the 
same time provided by statute for other orders. The Order shall become 
final upon service. Delivery by the U.S. Postal Service of the 
complaint and decision containing the agreed-to Order to Proposed 
Respondents' addresses as stated in this agreement shall constitute 
service. Proposed Respondents waive any right they may have to any 
other manner of service. The complaint may be used in construing the 
terms of the Order, and no agreement, understanding, representation, or 
interpretation not contained in the Order or the agreement may be used 
to vary or contradict the terms of the Order.
    8. Proposed Respondents have read the proposed complaint and Order 
contemplated hereby. Proposed Respondents understand that once the 
Order has been issued, they will be required to file one or more 
compliance reports showing that they have fully complied with the 
Order. Proposed Respondents further understand that they may be liable 
for civil penalties in the amount provided by law for each violation of 
the Order after it becomes final.

Order

I

    It is ordered that, as used in this Order, the following 
definitions shall apply:
    A. ``Phillips'' means Phillips Petroleum Company, its directors, 
officers, employees, agents, and representatives, predecessors, 
successors, and assigns, its subsidiaries, divisions, groups, and 
affiliates controlled by Phillips, and the respective directors, 
officers, employees, agents, representatives, successors, and assigns 
of each.
    B. ``Enron'' means Enron Corp., its directors, officers, employees, 
agents, and representatives, predecessors, successors, and assigns, its 
subsidiaries, divisions, groups, and affiliates controlled by Enron, 
and the respective directors, officers, employees, agents, 
representatives, successors, and assigns of each.
    C. ``Respondent'' or ``Respondents'' means Phillips and Enron, 
collectively and individually.
    D. ``Maxus'' means Maxus Energy Corporation, its predecessors, 
successors, and assigns, subsidiaries, divisions, and groups, and 
affiliates controlled by Maxus Energy Corporation.
    E. The ``Acquisition'' means the proposed acquisition by Phillips 
of the outstanding voting securities of Enron Anadarko Gathering 
Company and Transwestern Anadarko Gathering Company, which will own 
certain gas gathering assets currently owned by Transwestern Pipeline 
Company and Northern Natural Gas Company, two subsidiaries of Enron, 
pursuant to the stock purchase agreements executed on November 15, 
1994, by Phillips and Enron as subsequently modified and amended.
    F. ``Gas gathering'' means pipeline transportation, for oneself or 
other persons, of natural gas over any part or all of the distance 
between a well and a gas transmission pipeline or gas processing plant.
    G. ``Person'' means any natural person, partnership, corporation, 
company, association, trust, joint venture or other business or legal 
entity, including any governmental agency.
    H. ``Related Person'' means a person controlled by, controlling, or 
under the common control with, another person.
    I. ``Relevant Geographic Area'' means the Texas counties of 
Hansford, Ochiltree, and Lipscomb and all portions of Beaver County, 
Oklahoma, within ten miles of the Texas border.
    J. ``Schedule A assets'' means the whole and any part of the assets 
listed in Schedule A of this Order (including, but not limited to, the 
assets listed in annex 1 and annex 2).
    K. ``Commission'' means the Federal Trade Commission.

II

    It is further ordered that Enron shall not sell, transfer, or 
otherwise convey, directly or indirectly, the Schedule A assets, or any 
stock, share capital, equity, or other interest in any person 
controlling the Schedule A assets, to Phillips in connection with the 
Acquisition; and, within thirty (30) days after this Order becomes 
final, Enron shall provide notice of the requirements of this Order to 
the Federal Energy Regulatory Commission.

III

    It is further ordered that Phillips shall not acquire, directly or 
indirectly, any stock, share capital, equity, or other interest in any 
person controlling the Schedule A assets in connection with the 
Acquisition.

IV

    It is further ordered that, for a period of ten (10) years from the 
date this Order becomes final, Phillips shall not, without prior 
notification to the Commission, directly or indirectly:
    A. Acquire the Schedule A assets;
    B. Acquire any stock, share capital, equity, or other interest in 
any person engaged in gas gathering within the Relevant Geographic Area 
at any time within the two years preceding such acquisition, provided, 
however, that an acquisition of securities will be exempt from the 
requirements of this paragraph (IV.B) if after the acquisition Phillips 
will hold cumulatively no more than two (2) percent of the outstanding 
shares of any class of security of such person; and provided further, 
that this Paragraph (IV.B) shall not apply to the acquisition of any 
interest in a person that is not at the time of the acquisition engaged 
in gas gathering within the Relevant Geographic Area due to the sale 
within the preceding two years of all assets used for gas gathering 
within the Relevant Geographic Area to another 

[[Page 47378]]
party who intended to operate said assets for gas gathering within the 
Relevant Geographic Area; or
    C. Enter into any agreements or other arrangements with any person 
or with two or more related persons to obtain, within any 18 month 
period, direct or indirect ownership, management, or control of more 
than five miles of pipeline previously used for gas gathering and 
suitable for use for gas gathering within the Relevant Geographic Area.

V

    It is further ordered that, for a period of ten (10) years from the 
date this Order becomes final, Enron shall not, without prior 
notification to the Commission, directly or indirectly:
    A. Transfer Schedule A assets to Phillips or Maxus;
    B. Transfer any stock, share capital, equity, or other interest in 
any entity controlling the Schedule A assets to Phillips or Maxus; or
    C. Enter into any agreement or other arrangement to transfer direct 
or indirect ownership, management, or control of any of the Schedule A 
assets to Phillips or Maxus.

VI

    It is furthered ordered that the prior notifications required by 
Paragraphs IV and V of this Order shall be given on the Notification 
and Report Form set forth in the Appendix to Part 803 of Title 16 of 
the Code of Federal Regulations as amended (hereinafter referred to as 
``the Notification''), and shall be prepared and transmitted in 
accordance with the requirements of that part, except that no filing 
fee will be required for any such notification, notification shall be 
filed with the Secretary of the Commission, notification need not be 
made to the United States Department of Justice, and notification is 
required only of Respondents and not of any other party to the 
transaction. In lieu of furnishing (1) documents filed with the 
Securities and Exchange Commission, (2) annual reports, (3) annual 
audit reports, (4) regularly prepared balance sheets, or (5) Standard 
Industrial Code (SIC) information in response to certain items in the 
Appendix to Part 803 of Title 16 of the Code of Federal Regulations, 
Phillips shall provide a map showing the location of the pipeline whose 
acquisition is proposed and other pipelines used for gas gathering in 
the Relevant Geographic Area and a statement showing the quantity of 
gas that flowed through pipeline whose acquisition is proposed in the 
previous 12 month period. Respondents shall provide the Notification to 
the Commission at least thirty days prior to consummating any such 
transaction (hereinafter referred to as the ``first waiting period''), 
If, within the first waiting period, representatives of the Commission 
make a written request for additional information, Respondents shall 
not consummate the transaction until twenty days after substantially 
complying with such request for additional information. Early 
termination of the waiting periods in this paragraph may be requested 
and, where appropriate, granted by letter from the Bureau of 
Competition.
    Provided, however, that prior notification shall not be required by 
Paragraphs IV and V of this Order for a transaction for which 
notification is required to be made, and has been made, pursuant to 
Section 7A of the Clayton Act, 15 U.S.C. Sec. 18a.

VII

    It is further ordered that:
    A. Within sixty (60) days after the date this Order becomes final, 
each Respondent shall file a verified written report with the 
Commission setting forth in detail the manner and form in which it has 
complied and is complying with this Order; and
    B. One (i) year from the date this Order becomes final, annually 
for the next nine (9) years on the anniversary of the date this Order 
becomes final, and at such other times as the Commission may require, 
each Respondent shall file a verified written report with the 
Commission setting forth in detail the manner and form in which it has 
complied and is complying with this Order. Provided, however, that if 
Enron sells all of the Schedule A assets, it will no longer be required 
to file any further written reports with the Commission.

VIII

    It is further ordered that each Respondent shall notify the 
Commission at least thirty (30) days prior to any proposed change in 
such Respondent such as dissolution, assignment, sale resulting in the 
emergence of a successor corporation, or the creation or dissolution of 
subsidiaries or any other change that may affect compliance obligations 
arising out of the Order.

IX

    It is further ordered that, for the purpose of determining or 
securing compliance with this Order, and subject to any legally 
recognized privilege, upon written request and on reasonable notice to 
such Respondent, each Respondent shall permit any duly authorized 
representative of the Commission:
    A. Access, during office hours and in the presence of counsel, to 
inspect and copy all books, ledgers, accounts, correspondence, 
memoranda and other records and documents in the possession or under 
the control of such Respondent relating to any matters contained in 
this Order; and
    B. Without restraint or interference from it, to interview 
officers, directors, or employees of such Respondent, who may have 
counsel present, relating to any matters contained in this order.

    Signed this ________ day of ________________, 19______.
Schedule A

Transwestern System 3--Catesby/Ivanhoe

Beaver County, OK
Ellis County, OK

    Assets: All Transwestern-owned facilities located upstream of the 
discharge side of the Catesby Compressor unit. Includes approximately 
45.5 miles of pipe and the Catesby compressor #745, 422 horsepower. 
Material assets are listed in Annex 1 for Transwestern system 3.

Transwestern System 4--Frass Como

Lipscomb County, TX
Beaver County, OK
    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the side/hot-tap valve that connects the Frass Como 
Lateral to the 12 inch Lipscomb-Mocaine Lateral, including the Frass 
Como compressor station. Includes approximately 55.1 miles of pipe. 
Material assets are listed in Annex 1 for Transwestern system 4.

Transwestern System 5--Follett

Lipscomb County, TX

    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the side/hot-tap valve that connects the 4 inch Follett 
Lateral to the 12 inch Lipscomb-Mocaine Lateral. Includes approximately 
8.3 miles of pipe. Material assets are listed in Annex 1 for 
Transwestern system 5.

Transwestern System 7--Kiowa Creek

Lipscomb County, TX

    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the side/hot-tap valve that connects the 6 inch Kiowa 
Creek Lateral and the 8 inch Kiowa Creek Loop to the 12 inch Lipscomb-
Mocaine Lateral, including the Kiowa Creek #2 compressor station. 
Includes approximately 77 miles of pipe and three compressor units: 
Kiowa Creek #2 Compressor #865, 1,078 horsepower; Kiowa Creek #1 
Compressor #828, 1,078 

[[Page 47379]]
horsepower; and E. Lipscomb Compressor #858, 531 horsepower. Material 
assets are listed in Annex 1 for Transwestern system 7.

Transwestern System 8--Wolf Creek

Lipscomb County, TX
Ellis County, OK

    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the side/hot-tap valve that connects the 6 inch Wolf 
Creek Lateral to the 12 inch Lipscomb-Mocaine Lateral. Includes 
approximately 45.2 miles of pipe and the Wolf Creek compressors #755 
and #853, 1,470 combined horsepower. Material assets are listed in 
Annex 1 for Transwestern system 8.

Transwestern System 13--Waka/Perryton

Ochiltree County, TX

    Assets: All Transwestern-owned facilities located upstream of and 
including the pig receiver for the 8 inch Perryton lateral, located on 
the upstream side of and to the NE of the Waka compressor station. 
Includes approximately 77.8 miles of pipe and the Perryton Transwestern 
compressor #827, 779 horsepower. Material assets are listed in Annex 1 
for Transwestern system 13.

Transwestern System 14--Gray rock

Ochiltree County, TX
Lipscomb County, TX

    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the 6 inch pig launcher on the discharge side of the 
Gray Rock compressor station. Includes approximately 43.3 miles of pipe 
and the Gray Rock compressor #826, 810 horsepower. Material assets are 
listed in Annex 1 for Transwestern system 14.
Transwestern System 20--Brillhart

Hansford County, TX

    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the side/hot-tap valve that connects the 8 inch 
Brillhart Lateral to the 10 inch Cactus-Hugoton Lateral. Includes 
approximately 78.5 miles of pipe and two compressors: Brillhart #748, 
708 horsepower; and Brillhart #796, 785 horsepower. Material assets are 
listed in Annex 1 for Transwestern system 20.

Transwestern System 21--John Creek

Hansford County, TX
Ochiltree County, TX
Hutchinson County, TX
Roberts County, TX

    Assets: All Transwestern-owned facilities located upstream of, but 
not including, the side/hot-tap valve that connects the 6 inch John 
Creek Lateral to the 12 inch Cactus-Hugoton Lateral. Includes 
approximately 31 miles of pipe and the John Creek compressor #747, 537 
horsepower. Material assets are listed in Annex 1 for Transwestern 
system 21.

Northern Natural System 35--Spearman System--North

Hansford County, TX

    Assets: The following four sections: (1) Approximately 6.3 miles of 
6 inch and 2.0 miles of 4 inch Northern-owned gathering lines, upstream 
of where the 6 inch TG385 connects to the 8 inch TG24001 in the 
northwest quarter of Section 42, Block 1, Washington County RR Survey. 
(2) Approximately 6.5 miles of 4 inch Northern-owned gathering lines, 
upstream of the side valve on the 10 inch TG24001 in the northeast 
quarter of Section 30, Block 1, Cherokee Iron Furnace CO Survey. (3) 
The Buckner A1 wellhead facilities and approximately 3.4 miles of 4 
inch Northern-owned gathering lines from the Buckner A1 well in Section 
20 to the side valve on the 10 inch TG24001 in Section 27, Block 1, 
Cherokee Iron Furnace Co Survey. (4) Approximately 3.5 miles of 8 inch, 
3.8 miles of 6 inch, and 10 miles of 4 inch Northern-owned gathering 
lines, upstream of where the 6 inch TG247 and the 8 inch TG246 connects 
to the 12 inch TG24001 near the East Section Line of Section 7, Block 
2, SA&MG RR Survey. Material assets are listed in Annex 2 for Northern 
Natural system 35.

Northern Natural System 35--Spearman System--East

Hansford County, TX
Hutchinson County, TX
Roberts County, TX

    Assets: The following two sections: (1) The Brainard Lateral 
consisting of approximately 1.9 miles of 8 inch, 5.8 miles of 6 inch, 
and 19.2 miles of 4 inch Northern-owned gathering lines, upstream of a 
side valve where the 8 inch TG335 connects to the 26 inch TG24001 in 
Section 8, Block H&GN Survey. (2) The East Leg consisting of 
approximately 11.1 miles of 10 inch, 19.5 miles of 8 inch, 19.0 miles 
of 6 inch, and 49.6 miles of 4 inch gathering lines, upstream of where 
10 inch TG301 connects to the suction of Northern's Spearman Compressor 
Station. Material assets are listed in Annex 2 for Northern Natural 
system 35.

Northern Natural System 37--Fuller System

Hansford County, TX
Sherman County, TX
Hutchinson County, TX

    Assets: The following two sections: (1) The Hansford County No. 1 
System consisting of approximately one-half mile of 2 inch, 5 miles of 
8 inch, 3 miles of 6 inch, and 11 miles of 4 inch gathering lines, 
upstream of the suction of Northern's Hansford County No. 1 compressor 
station. (2) The Hutchinson County No. 2 system consisting of 
approximately 5 miles of 6 inch and 5 miles of 4 inch gathering lines, 
upstream of the suction of Northern's Hutchinson County No. 2 
compressor station. Material assets are listed in Annex 2 for Northern 
Natural system 37.

Northern Natural System 79--Perryton System

Ochiltree County, TX
Beaver County, OK

    Assets: The Northern-owned facilities upstream of the suction of 
Northern's Perryton Compressor Station. The facilities consist of 
approximately one quarter mile of 2 inch, 89 miles of 4 inch, 58 miles 
of 6 inch, 23 miles of 8 inch, 4 miles of 10 inch, and 10 miles of 16 
inch gathering lines. Material assets are listed in Annex 2 for 
Northern Natural system 79.

                                                                  Annex 1 to Schedule A                                                                 
                                                            [Transwestern Gathering Company]                                                            
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Comp. H/     Pipe      Pipe     Pipe 2    Pipe 2
   S        Line seg                   Description                 WH       Comp      Line      Meter       P      diameter   length   diameter   length
--------------------------------------------------------------------------------------------------------------------------------------------------------
3.....  CA-1............  4'' SHEPHERD #1/L E MAYER #1 LAT....  ........  X         ........         0         0        6.6   31680.        0.0     0.00
3.....  CA-1............  MTR STA SHL MAYER WL1...............  X         ........  ........     42800         0        4.5     100.        0.0     0.00

[[Page 47380]]
                                                                                                                                                        
3.....  CA-1............  MTR STA SHL SHEPRD WL1..............  X         ........  ........     42810         0        4.5     100.        0.0     0.00
3.....  CA-1-01.........  IRWIN #1-20 WL LN...................  X         ........  ........     41610         0        4.5     422.        0.0     0.00
3.....  CA-1-01.........  SHELL-TUBB #1-30 WL LN..............  X         ........  ........     41630         0        4.5     400.        0.0     0.00
3.....  CA-1-01.........  PEETOOM #1-29 WELL LINE.............  X         ........  ........     41660         0        4.5    5280.        0.0     0.00
3.....  CA-1-02.........  SHELL-OHEARN #1-32 WELL.............  X         ........  ........     41620         0        4.5    6864.        0.0     0.00
3.....  CA-1-02.........  SHELL-WHITE #1-31 WELL..............  X         ........  ........     41640         0        4.5     400.        0.0     0.00
3.....  CA-1-03.........  WHITE B #1-5 WELL LINE..............  X         ........  ........     42830         0        4.5   14256.        0.0     0.00
3.....  CA-1-03.........  PHIL-DRAKE #1-6 WEL LN..............  X         ........  ........     42840         0        4.5     106.        0.0     0.00
3.....  CA-1-04.........  PEARSON #1 4 LN & EQ................  X         ........  ........     41590         0        0.0       0.        0.0     0.00
3.....  CA-1-04.........  CONN KELLN 11-1.....................  X         ........  ........     41750         0        0.0       0.        0.0     0.00
3.....  CA-1-04.........  SWENN #1 4 LN & EQ..................  X         ........  ........     42870         0        4.5    5808.        0.0     0.00
3.....  CA-1-04.........  MESA PETROLEUM CO--#1 PIERSALL......  X         ........  ........     43090         0        0.0       0.        0.0     0.00
3.....  CA-1-05.........  CONN SHELL--#2-31 WHITE.............  X         ........  ........     41730         0        4.5    2600.        0.0     0.00
3.....  CA-1-05.........  CONN CNG-STATE UNIT #1..............  X         ........  ........     43210         0        0.0       0.        0.0     0.00
3.....  CA-2............  CONNMEDALLION PETR-WHITE A#1&2......  X         ........  ........     41021         0        0.0       0.        0.0     0.00
3.....  CA-2............  STATE #1-36.........................  X         ........  ........     41690         0        0.0       0.        0.0     0.00
3.....  CA-2............  WHITE A #1-1 WELL LN................  X         ........  ........     42820         0        4.5      53.        0.0     0.00
3.....  VH-1............  12'' IVANHOE & CATESBY LAT..........  ........  ........  X                0         0       12.7   34320.        0.0     0.00
3.....  VH-1............  CONNMEWBOURNE OIL #1-24 WYNN........  X         ........  ........     41911         0        0.0       0.        0.0     0.00
3.....  VH-1............  TW #745 IVANHOE/CATESBY COMP........  ........  X         ........         0       422        0.0       0.        0.0     0.00
3.....  VH-1-01.........  BERYL JET #1-14 WL LN...............  X         ........  ........     42690         0        4.5     158.        0.0     0.00
3.....  VH-1-04.........  CONN BURKHART #1-15 BEDELL INOIN FL.  X         ........  ........     41910         0        0.0       0.        0.0     0.00
3.....  VH-2-01.........  CONNMARLIN OIL #1 HALLIBURTON.......  X         ........  ........     41740         0        4.5    2050.        0.0     0.00
3.....  VH-2-01.........  FOX #1 WL LN........................  X         ........  ........     41970         0        0.0       0.        0.0     0.00
3.....  VH-2-01.........  BOCKELMAN #1-17 WL LN...............  X         ........  ........     42760         0        4.5     106.        0.0     0.00
3.....  VH-2-02.........  MTR STA UNION DYCHE WL..............  X         ........  ........     41020         0        4.5    4852.        0.0     0.00
3.....  VH-2-03.........  4'' O'HARE W/KAISER FRANCIS-          X         ........  ........     40301         0        0.0       0.        0.0     0.00
                           REDELSPERGR#1.                                                                                                               
3.....  VH-2-03.........  OHAIR #1-40 TIN WL LN...............  X         ........  ........     42770         0        4.5    5280.        0.0     0.00
3.....  VH-2/3..........  10'' CATESBY EXTENSION..............  ........  ........  X                0         0       10.7   44880.        0.0     0.00
3.....  VH-3............  MCCLURE #1-13 WELL LINE.............  X         ........  ........     41680         0        4.5     400.        0.0     0.00
3.....  VH-3-01.........  SUE HILL #1.........................  X         ........  ........     41700         0        4.5    1750.        0.0     0.00
4.....  FC-1............  CONN TEX OKG--#2 PINKARD ``B''......  X         ........  ........     38980         0        0.0       0.        0.0     0.00
4.....  FC-1............  FRASS-COMO FLD TW #746..............  ........  X         ........         0         0        0.0       0.        0.0     0.00
4.....  FC-1/2..........  8'' COMO J FRASS FLD LAT............  ........  ........  X                0         0        8.6   52800.        0.0     0.00
4.....  FC-2............  DAROVZET SALES MTR STA..............  X         ........  ........        20         0        0.0       0.        0.0     0.00
4.....  FC-2-02.........  MTR STA HUM-FRASS #B-1..............  X         ........  ........      3651         0        4.5    3980.        0.0     0.00
4.....  FC-2-02.........  MTR STA HBL-FRASS WL-1..............  X         ........  ........      3653         0        4.5    8220.        0.0     0.00
4.....  FC-2-03.........  CONN NAT GAS ANADARKO #1-26 DEPEW...  X         ........  ........     43340         0        4.5   10500.        0.0     0.00

[[Page 47381]]
                                                                                                                                                        
4.....  FC-3............  8'' COMO & FRASS FLD LAT............  ........  ........  X                0         0        8.6   25080.        0.0     0.00
4.....  FC-3-01.........  4'' HOWARD/MAHAFFEY/MIER/ANDERSON...  ........  ........  X                0         0        6.6   13200.        0.0     0.00
4.....  FC-3-01.........  MTR STA CSO VICKERS WL..............  X         ........  ........     42530         0        4.5     100.        0.0     0.00
4.....  FC-3-2..........  PHILLIPS EXCHANGE 3 SIDE VLVS.......  X         ........  ........       952         0        0.0       0.        0.0     0.00
4.....  FC-5-02.........  CONN FALCON-CLENNEY #1..............  X         ........  ........     40390         0        4.5      25.        0.0     0.00
4.....  FC-5-02.........  CONN FALCON-SCHUSTER #1.............  X         ........  ........     40400         0        4.5   20600.        0.0     0.00
4.....  FC-5-05.........  CONN FALCON-CLENNEY #2..............  X         ........  ........     40430         0        4.5     400.        0.0     0.00
4.....  FC-5-07.........  CONN NAT GAS ANDRKO #1-2 DICK BVR...  X         ........  ........     40460         0        4.5    8037.        2.3   136.00
4.....  FC-5-08.........  CONNMEWBOURNE #1 BARNES 14 BEAVER...  X         ........  ........     40520         0        4.5    2540.        0.0     0.00
5.....  FT-1............  LFR B&T-R #1 TO LIP-M...............  ........  ........  X                0         0        4.5   29040.        0.0     0.00
5.....  FT-1............  CONN SAM REGER #1...................  X         ........  ........     36100         0        4.5     100.        0.0     0.00
5.....  FT-1-01.........  CONN COTTON #1 KRAFT................  X         ........  ........     37800         0        4.5    3600.        0.0     0.00
5.....  FT-1-02.........  FARM TAP MERLIN LAUBHAM.............  X         ........  ........      3110         0        0.0       0.        0.0     0.00
5.....  FT-1-02.........  FARM TAP-RUSSELL SINER..............  X         ........  ........      3490         0        0.0       0.        0.0     0.00
5.....  FT-1-03.........  CONN JACK G JONES-#1 MASON..........  X         ........  ........     38030         0        0.0       0.        0.0     0.00
5.....  FT-1-03.........  CONN COTTON-#1 LAUBHAN..............  X         ........  ........     38480         0        4.5    9800.        0.0     0.00
5.....  FT-2-04.........  CONN LAUBHAN UNIT A #1..............  X         ........  ........     36220         0        4.5       50        0.0     0.00
7.....  EL-1............  4'' E. LIPSCOMB FLD LAT.............  ........  ........  X                0         0        4.5   22176.        4.0   480.00
7.....  EL-1............  LINE PARKER 1 4 IN..................  X         ........  ........     35710         0        4.5     272.        0.0     0.00
7.....  EL-1............  LINE SHULTZ C-I 4 IN................  X         ........  ........     35790         0        4.5     272.        0.0     0.00
7.....  EL-1............  EAST LIPS TW #858...................  ........  X         ........         0       500        0.0       0.        0.0      0.0
7.....  EL-1-01.........  LINE TYSON A-1 4 IN.................  X         ........  ........     35680         0        4.5    4646.        0.0      0.0
7.....  EL-1-01.........  LINE SHULTZ 2-5625 4 IN.............  X         ........  ........     35760         0        4.5    4176.        0.0     0.00
7.....  EL-1-02.........  CONN HUMBLE-1 W M SCHULTZ UNIT......  X         ........  ........     35932         0        4.5    5280.        0.0     0.00
7.....  EL-1-02.........  CONN 1 SCHULTZ......................  X         ........  ........     35940         0        4.5    2200.        0.0     0.00
7.....  KC-1............  6'' LIBSCOMB F/PIPER #2 LIPSCOMB LAT  ........  ........  X                0         0        6.6   13781.        0.0     0.00
7.....  KC-1............  LINE PIPER 2 6 IN...................  X         ........  ........     35730         0        4.5     272.        0.0     0.00
7.....  KC-1............  LINE SHULTZ B-2 6 IN................  X         ........  ........     35740         0        4.5     272.        0.0      0.0
7.....  KC-1............  KIOWA CREEK #1 TW #828..............  ........  X         ........         0      1100        0.0       0.        0.0     0.00
7.....  KC-1-02.........  4'' LIPSCOMB F/YAUCK/DUKE/SHULTZ B..  ........  ........  X                0         0        4.5   12619.        0.0     0.00
7.....  KC-1-02-01......  NATOMAS #1 YAUCK TW #855............  ........  X         ........         0        42        0.0       0.        0.0     0.00
7.....  KC-1-03.........  CONN SCRATH OIL-PIPER #689..........  X         ........  ........      9750         0        0.0       0.        0.0     0.00
7.....  KC-1-03.........  CONN SCARTH PETR-#601-1 PIPER.......  X         ........  ........     38360         0        4.5     300.        0.0     0.00
7.....  KC-1-03.........  CONN SCARTH-PIPER 600-1.............  X         ........  ........     38400         0        0.0       0.        0.0     0.00
7.....  KC-1-03.........  CONN SCARTH-PIPER 601-2.............  X         ........  ........     38410         0        0.0       0.        0.0     0.00
7.....  KC-1-03.........  CONNMAY PETRO PIPER RNCH #1 ZIPSCO..  X         ........  ........     55120         0        0.0       0.        0.0     0.00
7.....  KC-1-05.........  MTR RUN-NEWBORURNE-SCHULTZ #1.......  X         ........  ........     38160         0        2.3      30.        0.0     0.00

[[Page 47382]]
                                                                                                                                                        
7.....  KC-1-06.........  CONN NAT GAS-ANADARKO #1-544 OWENS..  X         ........  ........     38890         0        4.5    2600.        0.0     0.00
7.....  KC-1-06.........  CONN EXXON-#7 OLA O PIPER...........  X         ........  ........     38900         0        4.5    6000.        0.0     0.00
7.....  KC-1-07.........  CONNMAY PET-WM SCHULTZ #1...........  X         ........  ........     55130         0        0.0       0.        0.0     0.00
7.....  KC-1-08.........  CONNMEWBOURNE #1 DUCE ``781''.......  X         ........  ........     55230         0        4.5    2882.        2.3    83.00
7.....  KC-1-08.........  CONN MEWBOURNE #1 SCHULTZ ``761''...  X         ........  ........     55240         0        4.5     873.        2.3   152.00
7.....  KC-1/2/3........  6'' KIOWA CREEK LAT.................  ........  ........  X                0         0        6.6   66264.        0.0     0.00
7.....  KC-1/2/3 / KC-3-  EXT KIOWA CREEK T/LEAR PET 6'' LINE.  ........  ........  X                0         0        6.6   27262.        6.6   151.00
         5/6.                                                                                                                                           
7.....  KC-2............  CONN OLA #1.........................  X         ........  ........     36384         0        6.0    1750.        0.0     0.00
7.....  KC-2............  KIOWA CREEK STA#2-TW #865...........  ........  X         ........         0      1050        0.0       0.        0.0     0.00
7.....  KC-2-01.........  MTR STA APAH LAURE WL1..............  X         ........  ........     36340         0        4.5   13200.        0.0     0.00
7.....  KC-2-03.........  CON BRADFORD FD CSG HD..............  X         ........  ........     36320         0        4.5     106.        0.0     0.00
7.....  KC-2-03.........  PURDOM #1 4LN & EQ..................  X         ........  ........     37190         0        4.5     422.        0.0     0.00
7.....  KC-2-03.........  CONN FALCON-PURDOM UNIT #1..........  X         ........  ........     38340         0        0.0       0.        0.0     0.00
7.....  KC-2-04.........  CONN COTTON PETR-1-A-PIPER..........  X         ........  ........     36720         0        4.0    1000.        0.0     0.00
7.....  KC-2-206........  CONN COTTON PETR-1 BRADFORD ``B''...  ........  ........  x                0         0        4.5    3100.        0.0     0.00
7.....  KC-2-06.........  CON UNAPACHE-BRADFOD #1.............  X         ........  ........     36300         0        6.6   10560.        0.0     0.00
7.....  KC-2-06.........  CONN DIAMOND-#3 688 OLA 0 PIPER.....  X         ........  ........     37741         0        4.5     4500        0.0     0.00
7.....  KC-2-06.........  CON COTTON-BRADFORD #2..............  X         ........  ........     38320         0        0.0       0.        0.0     0.00
7.....  KC-2-07.........  PAN PET HLTON #1 WL LN..............  X         ........  ........     36830         0        4.5    3000.        0.0     0.00
7.....  KC-2-07.........  CONN COTTON PETR-1 FAIR.............  X         ........  ........     36880         0        4.5    4400.        0.0     0.00
7.....  KC-2-10.........  CON APACHE BRADFORD #3..............  X         ........  ........     33652         0        0.0       0.        0.0     0.00
7.....  KC-2-10.........  CONN COTTON-#4 OLA PIPER............  X         ........  ........     37720         0        0.0       0.        0.0     0.00
7.....  KC-2-10.........  CONNMEWBOURNE-BRADFORD #1...........  X         ........  ........     38690         0        0.0       0.        0.0     0.00
7.....  KC-2-12.........  CONN COTTON #2 PIPER A..............  X         ........  ........     37790         0        4.5      900        0.0     0.00
7.....  KC-2-13.........  CONN COTTON PETROLEUM-1 PIPER.......  X         ........  ........     36710         0        4.0     400.        0.0     0.00
7.....  KC-2-13.........  CONN COTTON PETR-1 PIPER ``B''......  X         ........  ........     36730         0        4.5    2900.        0.0     0.00
7.....  KC-2-14.........  CONNMEWBOURNE #2 BRADFORD...........  X         ........  ........     36650         0        4.5     640.        0.0     0.00
7.....  KC-3............  6'' KIOWA CREEK LATERAL.............  ........  ........  X                0         0        6.6    5500.        0.0     0.00
7.....  KC-3............  CONN ARCO-#2 FRED LOESCH............  X         ........  ........     38700         0        4.5     900.        0.0     0.00
7.....  KC-3-02.........  CONN MEDALLION #1...................  ........  ........  X                0         0        4.5    15840        0.0     0.00
7.....  KC-3-02.........  CONN SINCLAIR-LOESCH #1.............  X         ........  ........     36032         0        4.5    1684.        0.0     0.00
7.....  KC-3-02.........  CONN FULTON SELL #4.................  X         ........  ........     38886         0        0.0       0.        0.0     0.00
7.....  KC-3-07.........  CONN DIAMOND-OLA PIPER 1-691........  ........  ........  X                0         0        6.6    4300.        0.0     0.00
7.....  KC-3-07.........  CONN ARCO-#1 MARGARET L DIXON.......  X         ........  ........     38810         0        4.5     600.        0.0     0.00
7.....  KC-3-08.........  CONN ARCO-# HALBROOK DAILY WELL.....  X         ........  ........     38740         0        4.5   11000.        0.0     0.00
7.....  KC-3-09.........  CONN ARCO-#1PAINE BROS CO...........  X         ........  ........     38871         0        4.5    6400.        0.0     0.00

[[Page 47383]]
                                                                                                                                                        
7.....  KC-3-10.........  CONN ARCO-#1 FULTON-SELL............  X         ........  ........    388222         0        4.5    1500.        0.0     0.00
7.....  KC-3-10.........  CONN FULTON SELL #3.................  X         ........  ........     38885         0        0.0       0.        0.0     0.00
7.....  KC-3-11.........  CONN AMOCO-#2 LILLIE M PETERSON.....  X         ........  ........     33680         0        4.5    2000.        0.0     0.00
7.....  KC-3-15.........  CONN ARCD-SORENSON DIXON CENT POINT.  X         ........  X            55210         0        4.0     880.        0.0     0.00
7.....  KC-3A...........  6'' KIOWA CREEK LAT.................  ........  ........  X                0         0        2.3     280.        0.0     0.00
8.....  SG-1............  TAP TO INTERNORTH MEIER #1 LIPSC....  X         ........  ........     16200         0        0.0       0.        0.0     0.00
8.....  SG-1............  CONN JERNIGAN-BATTIN #1.............  X         ........  ........     38280         0        0.0       0.        0.0     0.00
8.....  SG-1-01.........  CONN FILON EXPL--#1 FRITZ...........  X         ........  ........     41340         0        4.5    5500.        0.0     0.00
8.....  SG-1/2..........  4'' W A MEIER #1& ANNA RUF #1 WELLS,  ........  ........  X                0         0        4.5   21120.        0.0     0.00
                           TX.                                                                                                                          
8.....  SG-2............  4'' LAT TO W A MEIER #1 & ANNA RUF    ........  ........  X                0         0        4.5   26400.        0.0     0.00
                           #1 WEL.                                                                                                                      
8.....  WC-1............  PRICE 2 WOLF CK 4 IN................  X         ........  35660            0         0        4.5     272.        0.0     0.00
8.....  WC-1............  WOLF CREEK TW #755 & 853............  ........  X         ........         0      1470        0.0       0.        0.0     0.00
8.....  WC-1-01.........  PRICE IB WOLF CK 4 IN...............  X         ........  ........     35650         0        4.5    2635.        0.0     0.00
8.....  WC-1-02.........  CONN EXXON--#4 WILLIS D PRICE ''B''.  X         ........  ........     38310         0        4.5    1800.        0.0     0.00
8.....  WC-1-02.........  CONN EXXON--#5 WILLIS D PRICE.......  X         ........  ........     38440         0        4.5     200.        0.0     0.00
8.....  WC-1/2/3........  6'' WOLF CREEK LAT..................  ........  ........  X                0         0        6.6   79147.        0.0     0.00
8.....  WC-2............  FARM TAP--MARY & ROBERT SQUIRES.....  X         ........  ........      3460         0        0.0       0.        0.0     0.00
8.....  WC-2............  R DOYLE 1-WOLF CK 415...............  X         ........  ........     35630         0        4.5     272.        0.0     0.00
8.....  WC-2............  PRICE I WOLF CK 4 IN................  X         ........  ........     35640         0        4.5     272.        0.0     0.00
8.....  WC-2............  J DOYLE I-WOLF CK 4 IN..............  X         ........  ........     35770         0        0.0       0.        0.0     0.00
8.....  WC-2............  CONNMEWBOURNE OIL CO--SQUIRE #3.....  X         ........  ........     55540         0        4.5    2550.        0.0     0.00
8.....  WC-2-01.........  CONN HUMBLE-1 TYSON.................  X         ........  ........     35970         0        4.5    6200.        0.0     0.00
8.....  WC-2-02.........  CONNMEWBOURNE #1 PRICE..............  X         ........  ........     38630         0        4.5    3500.        0.0     0.00
8.....  WC-2-03.........  CONN HUMBLE-W D PRICE #4............  X         ........  ........     35851         0        0.0       0.        0.0     0.00
8.....  WC-3............  BROWN I-WOLF CRK 4 IN...............  X         ........  ........     40200         0        4.5     272.        0.0     0.00
8.....  WC-3-01.........  CONN FILON-THORNTION TRUST #1.......  X         ........  ........     40260         0        4.5     165.        0.0     0.00
8.....  WC-3-02.........  CONNMAPCO-LOIS BROWN #2-27..........  X         ........  ........     41460         0        0.0       0.        0.0     0.00
8.....  WC-3-02.........  CONNMAPCO-BROWN 1-26................  X         ........  ........     41470         0        0.0       0.        0.0     0.00
8.....  WC-3-02.........  CONNMAPCO-PIERCE #1-28..............  X         ........  ........     41480         0        0.0       0.        0.0     0.00
8.....  WC-3-03.........  SHERRILL OU 1#1 WL LN...............  X         ........  ........     40250         0        4.5    6300.        0.0     0.00
8.....  WC-3-05.........  CONN BUNKER-WAYLAND #1-5............  X         ........  ........     40290         0        0.0       0.        0.0     0.00
8.....  WC-3-06.........  CONN 4'' JORDAN CENT DELIV PT #1....  ........  ........  X                0         0        0.0       0.        0.0     0.00
8.....  WC-3-06.........  CONNECT JORDAN O&G #1 CENTRAL DEL PT  X         ........  ........     41510         0        4.5   20803.        0.0     0.00
8.....  WC-3-07.........  SHATTUCK OU-1 #3 WL LN..............  X         ........  ........     41520         0        4.5    4281.        0.0     0.00
8.....  WC-4............  GIBBS #1-19 WELL LINE...............  X         ........  ........     40230         0        4.5    9240.        0.0     0.00

[[Page 47384]]
                                                                                                                                                        
13....  NP-1............  6'' F/HAN #1, WITT #1, KERSHAW #1...  ........  ........  X                0         0        6.6    29515        0.0     0.00
13....  NP-1-01.........  INST TAP HOT-NEUFELD #1.............  X         ........  ........     36430         0        0.0       0.        0.0     0.00
13....  NP-1-02.........  CONN GARY GEORGE #1.................  X         ........  ........     38965         0        0.0       0.        0.0     0.00
13....  NP-1-02.........  CONN ANADARKO MARIE #1-62 WLDCT.....  X         ........  ........     52190         0        0.0       0.        0.0     0.00
13....  NP-2............  MTR STA SH KERSHAW WL1..............  X         ........  ........     37000         0        4.5   18880.        0.0     0.00
13....  NP-2............  CONN MEWBOURNE SCHWULK #1...........  X         ........  ........     53260         0        0.0       0.        0.0     0.00
13....  NP-2-02.........  HAROLD D COURSON--#1-43 WAGGONER....  X         ........  ........     38130         0        4.5      20.        0.0     0.00
13....  NP-2-03.........  CONN FALCON-WAGGONER #1-43..........  X         ........  ........     38080         0        4.5    1300.        0.0     0.00
13....  NP-2-03.........  CONN FALCON-WAGGONER #1-43..........  X         ........  ........     38130         0        4.5    9600.        0.0     0.00
13....  NP-2-04.........  CONN COURSON #1-42 MCGARROUGH.......  X         ........  ........     38540         0        4.5    2200.        0.0     0.00
13....  NP-3............  CONN PHILCON--1 MAXWELL.............  X         ........  ........     36940         0        4.5   15312.        0.0     0.00
13....  PE-1............  PSHIGODO I-PP LAT 4 IN..............  X         ........  ........     34910         0        4.5     272.        0.0     0.00
13....  PE-1-02.........  CONN ANADARDO #1-661 DUDLEY.........  X         ........  ........     38620         0        4.5     600.        0.0     0.00
13....  PE-1-03.........  PHL-MC WLIB-8 PERY LAT..............  X         ........  ........     34900         0        4.5    2900.        0.0     0.00
13....  PE-1-03.........  CONN COURSON OIL AND GAS #4-571 1ST.  X         ........  ........     34911         0        0.0       0.        0.0     0.00
13....  PE-1-03.........  CONN #1-571 1ST NATL TRUST-ACCT REC.  X         ........  ........     38460         0        4.5    4400.        0.0     0.00
13....  PE-1-04.........  LN FR RIDGMOR TO PSH L..............  X         ........  ........     34930         0        4.5   15840.        0.0     0.00
13....  PE-1-05.........  CONN COURSON--#2-571 1ST NATL TRUST.  X         ........  ........     38551         0        4.5    1600.        0.0     0.00
13....  PE-1-06.........  CONN NAT GAS ANADARDO #1-64 CAMP....  X         ........  ........     38962         0        4.5    5400.        0.0     0.00
13....  PE-1-06.........  CONN SANTA FE ENRGY #2-49 WFL AR....  X         ........  ........     52110         0        4.5    6172.        4.5    69.00
13....  PE-1-06.........  CONN NAT GAS ANADARKO 1-46 RICHARDSN  X         ........  ........     52150         0        4.0    7300.        0.0     0.00
13....  PE-1/2/3........  6'' & 8'' N. PARRYTON ALT...........  ........  ........  X                0         0        8.6   72072.        0.0     0.00
13....  PE-2............  LAND-EXCHANGE NN DUDE WILSON........  X         ........  ........      9170       6.6          0     650.        0.0     0.00
13....  PE-2............  HUM-PER WL 1-8 PERY LAT.............  X         ........  ........     34610         0        4.5     272.        0.0     0.00
13....  PE-2............  HUM PER WL1-8 PERY LAT..............  X         ........  ........     34811         0        4.5     272.        0.0     0.00
13....  PE-2............  PERRYTON TW #827....................  ........  X         ........         0       785        0.0       0.        0.0     0.00
13....  PE-2-01.........  WC HERNDON C #1 WL LN...............  X         ........  ........     34750         0        4.5     264.        0.0     0.00
13....  PE-2-01.........  W C HERNDON 1 U L WL LN.............  X         ........  ........     37910         0        6.6     475.        0.0     0.00
13....  PE-2-01.........  CONN HERNDON #1.....................  X         ........  ........     37970         0        4.5    2650.        0.0     0.00
13....  PE-2-02.........  4'' F/DUDE WILSON GW5 #1 & WG4 #1...  ........  ........  X                0         0        4.5   13200.        0.0     0.00
13....  PE-2-02.........  JONES #2-750 WELL LINE..............  X         ........  ........     34740         0        4.5     317.        0.0     0.00
13....  PE-2-02.........  JONE #1-750 WL LN...................  X         ........  ........     34770         0        4.5     400.        0.0     0.00
13....  PE-2-03.........  MTR STA HUM-D W WE GU4..............  X         ........  ........     34830         0        4.5     100.        0.0     0.00
13....  PE-2-03.........  DUDE WILSON GU-4 #2 WL..............  X         ........  ........     37930         0        4.5     211.        0.0     0.00
13....  PE-2-04.........  BRUHLMAN #1-17 WL LN................  X         ........  ........     34870         0        4.5    4752.        0.0     0.00

[[Page 47385]]
                                                                                                                                                        
13....  PE-2-04.........  CONN HORIZON #2-17 BRUHLMAN.........  X         ........  ........     52080         0        4.5    3389.        2.3    98.00
13....  PE-2-05.........  PSHIGODA B #1 4LN & EQ..............  ........  ........  X                0         0        4.5   15790.        0.0     0.00
13....  PE-2-05.........  CONN EXXON CORP DUDE WILSON GU 7-3..  X         ........  ........     34711         0        0.0  .......        0.0     0.00
13....  PE-2-05.........  CONN EXXON CORP DUDE WILSON GU 5-4..  X         ........  ........     34731         0        0.0       0.        0.0     0.00
13....  PE-2-05.........  CONN HD WILSON GU7 #7...............  X         ........  ........     34950         0        4.5      53.        0.0     0.00
13....  PE-2-07.........  4'' LN ROGERS #3-DUDE WILSON GSG LAT  X         ........  X                0         0        6.6   10666.        0.0     0.00
13....  PE-2-07.........  CONN EXXON-#2 DUDE WILSON UNIT #2...  X         ........  ........     33080         0        4.5     800.        0.0     0.00
13....  PE-2-07.........  D WLSN GU WL 2-DW LAT...............  X         ........  ........     34800         0        4.5     272.        0.0     0.00
13....  PE-2-07.........  ROGERS I-PP LAT 4 IN................  X         ........  ........     34820         0        4.5    4277.        0.0     0.00
13....  PE-2-07.........  MTR STA HBL ROGERS WL 3.............  X         ........  ........     34860         0        4.5     400.        0.0     0.00
13....  PE-2-09.........  HBL D WILSON 5-Z WL LN..............  X         ........  ........     34791         0        4.5     400.        0.0     0.00
13....  PE-2-10.........  CONN EXXON-DUDE WILSON #6...........  X         ........  ........     38720         0        4.5    3000.        0.0     0.00
13....  PE-2-10.........  CONN EXXON--#2 DUDE WILSON UNIT #7..  X         ........  ........     38760         0        4.5     600.        0.0     0.00
13....  PE-2-10.........  CONN H&L OPER--#2 PSHIGODA..........  X         ........  ........     38850         0        4.5    1200.        0.0     0.00
13....  PE-2-11.........  CONN EXXON-DUDE WILSON GAS UNIT 5-3.  X         ........  ........     33460         0        4.5    1340.        0.0     0.00
13....  PE-2-12.........  CONN EXXON--#2 DUDE WILSON UNIT #1..  X         ........  ........     38800         0        4.5     900.        0.0     0.00
13....  PE-2-13.........  CONN EXXON--#3 DUDE WILSON UNIT #4..  X         ........  ........     38860         0        4.5    2135.        0.0     0.00
13....  PE-2-14.........  CONN EXXON--#5 HELEN ROGERS.........  X         ........  ........     33070         0        4.5    2400.        0.0     0.00
13....  PE-2-14.........  DODSON #1-834 WL LN.................  X         ........  ........     34890         0        0.0       0.        0.0     0.00
13....  PE-2-16.........  CONN SAMSON RESOURCES DODSON #3 OCH.  X         ........  ........     52121         0        4.5     738.        2.3   360.00
13....  PE-2-17.........  W C HERNDON B #1-L WL LN............  X         ........  ........     37900         0        4.5    5808.        0.0     0.00
13....  PE-2-17.........  CONN COURSON #2-662 HERNDON OCHL....  X         ........  ........     52160         0        0.0       0.        0.0     0.00
13....  PE-2-18.........  CONN COURSON #1-747 ELDEN WAKA PRT..  X         ........  ........     52181         0        4.5     600.        0.0     0.00
13....  SH-1............  CON PITMAN-SWINK WL #1..............  X         ........  ........     34700         0        4.5     100.        0.0     0.00
13....  SH-1-03.........  SCHNEIDER #1-93 WL LN...............  X         ........  ........     36410         0        4.5   24816.        0.0     0.00
13....  SH-\1/2\........  6'' SHARE-WEST PERRYTON LAT.........  ........  ........  X                0         0        6.6   66000.        0.0     0.00
13....  SH-2-02.........  MTR STA RDG GREGG WL 1..............  X         ........  ........     34530         0        4.5    2640.        0.0     0.00
13....  SH-2-02.........  TEVIS #1-20 WL LN...................  X         ........  ........     36420         0        4.5   15312.        0.0     0.00
13....  SH-2-02.........  CONNER #1-36 WL LN..................  X         ........  ........     36750         0        4.5     370.        0.0     0.00
13....  ER-2-03.........  SMITH #1-30 WELL LN.................  X         ........  ........     34540         0        4.5    6864.        0.0     0.00
14....  ER-\1/2\........  6'' ELLIS RANCH FLD LAT.............  ........  ........  X                0         0        6.6   52800.        0.0     0.00
14....  ER-3............  6'' ELLIS RANCH FLD LAT.............  ........  ........  X                0         0        6.6   31680.         0.     0.00
14....  ER-3-01.........  MTR STA H KAY NELL W#1..............  X         ........  ........     34640         0        4.5   10560.        0.0    0.00 

[[Page 47386]]
                                                                                                                                                        
14....  ER-3-01.........  CONN AMOCO--#2 KAYNELL-HAMKER TRUSTA  X         ........  ........     38710         0        0.0       0.        0.0     0.00
14....  ER-3-02.........  ARTHUR MORGAN #1 WL LN..............  X         ........  ........     34660         0        4.5   19008.        0.0     0.00
14....  ER-3-03.........  MORRIS C-1 4 LN & EQ................  X         ........  ........     34940         0        4.5     370.        0.0     0.00
14....  ER-3-04.........  CONNMEWBOURNE--#1 MORRIS............  X         ........  ........     38610         0        4.5    6400.        0.0     0.00
14....  ER-3M...........  4'' MITCHELL #1 & #A-1 LAT..........  ........  ........  X                0         0        4.5    4224.        0.0     0.00
14....  ER-3M1..........  4'' MITCHELL #1 & #A-1 LAT..........  ........  ........  X                0         0        4.5   10560.        0.0     0.00
14....  GR-1............  PERRY A #1-730 WL LN................  X         ........  ........     36490         0        6.6   45408.        0.0     0.00
14....  GR-1-01.........  CONN ANDARKO #1-58 SELL NORTHRUP....  X         ........  ........     55360         0        0.0       0.        0.0     0.00
14....  GR-1-01.........  WHEAT #1-678 WL LN..................  X         ........  ........     37130         0        4.5      53.        0.0     0.00
14....  GR-1-01.........  SHELL-WHEAT #1-732 WL LN............  X         ........  ........     37150         0        6.6    7920.        0.0     0.00
14....  GR-1-01.........  CONNMEWBOURNE--PERRY #2.............  X         ........  ........     38680         0        0.0       0.        0.0     0.00
14....  GR-1-02.........  CONN DICK BARTON #1.................  X         ........  ........     37260         0        6.6    7920.        0.0     0.00
14....  GR-1-03.........  CONN APACHE-MILES UNIT #1...........  X         ........  ........     34484         0        4.5    1600.        0.0     0.00
14....  GR-1-03.........  CONN APACHE HARRY L KING #1.........  X         ........  ........     36470         0        6.6   21120.        0.0     0.00
14....  GR-1-03.........  CONN MOUNTAIN FRONT VARIOUS WELLS...  X         ........  ........     36471         0        0.0       0.        0.0     0.00
14....  GR-1-04.........  CONN TED WEINER-MRS Z D GUY-1.......  X         ........  ........     37400         0        4.5    1700.        0.0     0.00
14....  GR-1-07.........  CONNMEWBOURNE--#1 PERRY.............  X         ........  ........     38600         0        4.5    2100.        0.0     0.00
14....  GR-1-09.........  CONN TARPON OIL-H PEERY #2..........  X         ........  ........     36480         0        6.6    7392.        0.0     0.00
14....  GR-2............  GRAY ROCK TW #826...................  ........  X         ........         0       785        0.0       0.        0.0     0.00
14....  KC-3-02.........  MTR STA FAL SEA-HAN #1..............  X         ........  ........     36060         0        4.5    7920.        4.5   100.00
14....  KC-3-03.........  LANDERS #1 WL LN....................  X         ........  ........     37162         0        4.5    6864.        0.0     0.00
14....  KC-3-12.........  CONN COURSON OIL #2-855 LANDERS.....  X         ........  ........     55101         0        4.5    2520.        0.0     0.00
20....  BH-1/2/3/4/5....  8'' HANSFORD LAT....................  ........  ........  X                0         0        8.6   63360.        0.0     0.00
20....  BH-2............  BRILLHART TW #748 & 796.............  ........  X         ........         0      1493        0.0       0.        0.0     0.00
20....  BH-2-01.........  LAT 4 GANDY & GLOVER TO BRILLHART...  ........  ........  X                0         0        4.0   10800.        0.0     0.00
20....  BH-2-01.........  GO-GAND WL LN-BRLHT LT..............  X         ........  ........     33930         0        4.5   21120.        4.5   100.00
20....  BH-2-03.........  FARM TAP--GEORGE C. COLLARD.........  X         ........  ........       352         0        0.0       0.        0.0     0.00
20....  BH-2-04.........  CONN GULF-LOWE-1....................  X         ........  ........     33440         0        4.0    6000.        0.0     0.00
20....  BH-2-04.........  CONN BILLINGSLEY #1.................  X         ........  ........     33840         0        0.0       0.        0.0     0.00
20....  BH-2-05.........  HORIZON-LOWE #1 WL LN...............  X         ........  ........     33960         0        4.5    5808.        0.0     0.00
20....  BH-2-05.........  BALLARD #1-123 WL LN................  X         ........  ........     33990         0        4.5    5808.        0.0     0.00
20....  BH-2-06.........  CONN BROCK EXPL CORP #1 ANDERSON....  X         ........  ........     33411         0        0.0       0.        0.0     0.00
20....  BH-2-06.........  MTR STA HOR OG COP WL 1.............  X         ........  ........     33970         0        4.5    7920.        0.0     0.00
20....  BH-2-07.........  CONN GULF-RHODA HART--1.............  X         ........  ........     33400         0        8.0    5280.        0.0     0.00
20....  BH-3............  CONN UNIT DRILL & EXPL NO 1 BECK....  X         ........  ........     33090         0        4.5     120.        0.0     0.00
20....  BH-3-01.........  FUR-MUR WL LN-BRLHT LT..............  ........  ........  X                0         0        4.5   15240.        0.0     0.00
20....  BH-3-01.........  CONN MARY #2........................  X         ........  ........     33982         0        2.0      60.        0.0     0.00
20....  BH-3-03.........  CONNMEWBOURNE-HIGGS #1..............  X         ........  ........     33160         0        0.0       0.        0.0     0.00
20....  BH-3/4..........  8'' BERNSTEIN LAT...................  ........  ........  X                0         0        8.0   52800.        0.0     0.00
20....  BH-4............  8'' BRILLHART LAT...................  ........  ........  X                0         0        8.6   36960.        0.0     0.00

[[Page 47387]]
                                                                                                                                                        
20....  BH-4-01.........  FARM TAP-PAT PATTERSON/ROBERT H.      X         ........  ........       401         0        0.0       0.        0.0     0.00
                           ARCHER.                                                                                                                      
20....  BH-4-01.........  GO-STL WL LN-BRLHT LAT..............  X         ........  ........     33870         0        4.5    15840        0.0     0.00
20....  BH-5-03.........  CONNMARLIN OIL #1 SUE...............  X         ........  ........     53250         0        0.0       0.        0.0     0.00
20....  BH-5-04.........  CONN HORIZON TX BRILHRT 1-6 HNGFRD..  X         ........  ........     53230         0        4.0    3000.        0.0     0.00
21....  JC-1............  CONN BARBOUR ENERGY CORP. #1 JARVIS.  X         ........  ........     33110         0        0.0       0.        0.0     0.00
21....  JC-1............  JOHN CREEK TW #747..................  ........  X         ........         0       708        0.0       0.        0.0     0.00
21....  JC-1/2..........  6'' JOHN CREEK LAT..................  ........  ........  X                0         0        6.6    4382.        0.0     0.00
21....  JC-2............  JOHN CREEK CROSSOVER................  X         ........  ........      9238         0        0.0       0.        0.0     0.00
21....  JC-2............  MTR STA SUN O-MIN K #1..............  X         ........  ........     33700         0        4.5    4752.        0.0     0.00
21....  JC-2............  MTR STA GLE MATT WLI A..............  X         ........  ........     33941         0        6.6   18480.        4.5   100.00
21....  JC-2-01.........  4'' LAT F/JACKSON #1 & K L WEST #1..  ........  ........  X                0         0        4.5   13200.        0.0     0.00
21....  JC-2-01.........  ARCHER #1-72 WELL LINE..............  X         ........  ........     33730         0        4.5     317.        0.0     0.00
21....  JC-2-02.........  PAN AM-BRAINARD #1 LN...............  X         ........  ........     33780         0        4.5    5280.        0.0     0.00
21....  JC-2-02.........  MATHEWS #1 4LN & EQ.................  X         ........  ........     38000         0        4.5    6336.        0.0     0.00
21....  JC-2-2..........  MATHEWS #1-80 WL LN.................  X         ........  ........     35052         0        4.5     264.        0.0     0.00
21....  JC-3............  CLEMENT #1-14 WL LN.................  X         ........  ........     33980         0        4.5   28512.        0.0     0.00
21....  JC-3............  CONN HORIZON #1 CONVERSE A OCHLTR...  X         ........  ........     53240         0        0.0       0.        0.0     0.00
21....  JC-3-01.........  PAN AM-BECK B #1 LN.................  X         ........  ........     35061         0        4.5     264.        0.0     0.00
21....  LP-1-01.........  FLOWERS #1-5 5 WL LN................  X         ........  ........     35041         0        4.5     158.        0.0     0.00
21....  LP-1-02.........  CONN #2 REED........................  X         ........  ........     33650         0        4.5    4900.        0.0     0.00
21....  LP-1-02.........  CONN ELEANOR REED WELL #1...........  X         ........  ........     35071         0        4.5     264.        0.0     0.00
21....  LP-1-04.........  CONN AMOCO PRO #2 WB MCINTIRE ``A''.  X         ........  ........     52240         0        4.5    1800.        0.0     0.00
--------------------------------------------------------------------------------------------------------------------------------------------------------



                                              Annex 2 to Schedule A                                             
----------------------------------------------------------------------------------------------------------------
                                      Acct                 Location                                             
  Res sys       Fn        State       sys       Loc      description        Area         Line No.       Map ref 
----------------------------------------------------------------------------------------------------------------
                                                           SPEARMAN                                             
35........  GP.......  TX.........       75     30101   LIPS AS WELL    A..........  TG 30101.......  T-2.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     30301   JOHNSON #1      A..........  TG 30301.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     30401   STATEX          A..........  TG 30401.......  T-2.      
                                                        NITSCHKE #1                                             
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     31001   BULTMAN #1      A..........  TG 31001.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     32101   LIPS B1 WELLO   A..........  TG 32101.......  T-2.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     33201   KNOX PIPKIN #1- A..........  TG 33201.......  T-2.      
                                                        28 WELL GATH/                                           
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     38601   KILEBREW WELL   A..........  TG 38601.......  T-2.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     43801   FLOWERS #1      A..........  TG 43801.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     48001   SPEARMAN 16IN   A..........  TG 48001.......  T-2.      
                                                        SUCTION GATH/                                           
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     53601   FLOWERS #1/     A..........  TG 53601.......  T-2.      
                                                        FLOWERS #1 TIE-                                         
                                                        IN.                                                     
35........  GP.......  TX.........       75     61401   LIPS RANCH      A..........  TG 61401.......  T-2.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     72301   ROBERTS COUNTY  A..........  TG 72301.......  T-2.      
                                                        #1 SUCTION                                              
                                                        LINE/TX.                                                
35........  GP.......  TX.........       75     73501   ROBERTS CO #1   A..........  TG 73501.......  T-2.      
                                                        LINE/TEXAS.                                             
35........  GP.......  TX.........       75     81191   HODGES #1-39    A..........  TG 81191.......  T-2.      
                                                        WEKK GATHERING/                                         
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     86901   LIPS RANCH      A..........  TG 86901.......  T-2.      
                                                        LATERAL.                                                
35........  GP.......  TX.........       75     87001   LIPS RANCH TIE- A..........  TG 87001.......  T-2.      
                                                        OVER LINE.                                              
35........  GP.......  TX.........       75     24001  NORTH OF         A..........  TG24001........  T-3.      
                                                        SPEARMAN GATH/                                          
                                                        TEXAS.                                                  
                                                                                                                
35........  GP.......  TX.........       75     24601   MCCARTY A1      A..........  TG 24601.......  T-3.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     24701   VERNON A1 WELL  A..........  TG 24701.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     31601   KIRK #1 WELL    A..........  TG 31601.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     32801   JACKSON A#1 UT/ A..........  TG 32801.......  T-3.      
                                                        LT WELL GATH                                            
                                                        LINE/TX.                                                

[[Page 47388]]
                                                                                                                
35........  GP.......  TX.........       75     32901   WILMETH WELL    A..........  TG 32901.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     33501   ODC #1-44 WELL  A..........  TG 33501.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     34701   REX #1 WELL     A..........  TG 34701.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     35001   YANDA ET AL     A..........  TG 35001.......  T-3.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     35101   KENNY WELL      A..........  TG 35101.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     38501   CLEMENTINE-LEE  A..........  TG 38501.......  T-3.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     38801   JACKSON #1LT/   A..........  TG 38801.......  T-3.      
                                                        BEULAH #1 TIE-                                          
                                                        IN GATH.                                                
35........  GP.......  TX.........       75     38901   BRAINARD #3     A..........  TG 38901.......  T-3.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     40601   MCINTIRE #1-LT  A..........  TG 40601.......  T-3.      
                                                        AND UT WELL                                             
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     41201   BEULAH #1 WELL  A..........  TG 41201.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     46101   MATHEWS #2      A..........  TG 46101.......  T-3.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     60801   COOKE #1C WELL  A..........  TG 60801.......  T-3.      
                                                        GATH/TEXAS.                                             
35........  GP.......  TX.........       75     64201   CROWE 7-58      A..........  TG 64201.......  T-3.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
35........  GP.......  TX.........       75     86801   BRACKEN ENERGY- A..........  TG 86801.......  T-3.      
                                                        ETLING #1-8.                                            
                                                                                                                
                                                            FULLER                                              
37........  GP.......  TX.........       55     53401   FISHER #1 WELL  A..........  TG 53401.......  T-3.      
                                                        GATH/TEXAS.                                             
37........  GP.......  TX.........       55     53701   R WAMBLE #1...  A..........  TG 53701.......  T-3.      
37........  GP.......  TX.........       55     53801   PEARL #1......  A..........  TG 53801.......  T-3.      
37........  GP.......  TX.........       55     53901   BOARD #1 WELL   A..........  TG 53901.......  T-3.      
                                                        GATH/TEXAS.                                             
37........  GP.......  TX.........       55     59201   GENE CLUCK #1   A..........  TG 59201.......  T-3       
                                                        WELL GATHERING                                          
                                                        LINE/T.                                                 
                                                                                                                
                                                           PERRYTON                                             
79........  GP.......  OK.........       44     16701   GEORGE MOUNTS   A..........  OG 16701.......  O-13.     
                                                        WELL GATH/                                              
                                                        OKLAHOMA.                                               
79........  GP.......  OK.........       44     17801   SIMS #1         A..........  OG 17801.......  O-13.     
                                                        LATERAL GATH/                                           
                                                        OKLAHOMA.                                               
79........  GP.......  OK.........       44     24001   WILSON #1 GATH/ A..........  OG 24001.......  O-13.     
                                                        OKLAHOMA.                                               
79........  GP.......  OK.........       44     27301   PALMER #1 WELL  A..........  OG 27301.......  O-13.     
                                                        GATH/OKLAHOMA.                                          
79........  GP.......  OK.........       44     31901   PITTMAN #1      A..........  OG 31901.......  O-13.     
                                                        WELL/GATH/                                              
                                                        OKLAHOMA.                                               
79........  GP.......  OK.........       44     47201   BECKWITH 1-22   A..........  OG 47201.......  O-13.     
                                                        WELL GATHERING/                                         
                                                        OKLA.                                                   
79........  GP.......  OK.........       44     50501   NAYLOR #1 WELL  A..........  OG 50501.......  O-13.     
                                                        GATH/OKLA.                                              
79........  GP.......  TX.........       71     21301   CUTTER #1 WELL  A..........  TG 21301.......  T-2.      
                                                        GATH/TEXAS.                                             
79........  GP.......  TX.........       71     21401   PHISGODA #1     A..........  TG 21401.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     21501   ORINGDERFF      A..........  TG 21501.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     21601   WRIGHT #1 WELL  A..........  TG 21601.......  T-2.      
                                                        GATH/TEXAS.                                             
79........  GP.......  TX.........       71     21701   SCHOENHALS #1   A..........  TG 21701.......  T-2.      
                                                        WELL.                                                   
79........  GP.......  TX.........       71     21801   GEORGE MOUNTS   A..........  TG 21801.......  T-2.      
                                                        #1 WELL GATH/                                           
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     27301   PALMER #1 WELL  A..........  TG 27301.......  T-2.      
                                                        GATH LINE/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     28401  GEORGE #1 WELL   A..........  TG 28401.......  T-2.      
                                                        GATH/TEXAS.                                             
79........  GP.......  TX.........       71     28801  LE MASTER #1     A..........  TG 28801.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     30801  ODELL LA MASTER  A..........  TG 30801.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     32301  GREENE #1 WELL.  A..........  TG 32301.......  T-2.      
79........  GP.......  TX.........       71     32601  SIMS #1-36L      A..........  TG 32601.......  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     34301  MOYES-GEORGE #1  A..........  TG34301........  T-2.      
                                                        WELL GATH/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     38701  PERRY #1 WELL    A..........  TG 38701.......  T-2.      
                                                        GATH/TEXAS.                                             
79........  GP.......  TX.........       71     39201  PERRY B1 WELL    A..........  TG 39201.......  T-2.      
                                                        GATH/TEXAS.                                             
79........  GP.......  TX.........       71     71701  SCHULTZ #1 WELL  A..........  TG 71701.......  T-2.      
                                                        GATHERING/                                              
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     80031  BATMAN #1-21     A..........  TG 80031.......  T-2.      
                                                        SIDE VALVE/                                             
                                                        TEXAS.                                                  
79........  GP.......  TX.........       71     80751  TANDY #1 WELL    A..........  TG 80751.......  T-2.      
                                                        GATHERING LINE/                                         
                                                        TX.                                                     
----------------------------------------------------------------------------------------------------------------
ITEM IN BOLD REFLECTS A PORTION OF THE TOTAL LINE NO. REFERENCED AS TG24001                                     
The facilities for line no. TG24001 include only the following facilities: Buckner A1 wellhead facilities and   
  approximately 3.4 miles of 4-inch pipeline from well connection in section 20 to side valve on the 10-inch    
  TG24001 in section 27; and approximately 6.5 miles of 4-inch pipeline from a side valve on TG64201 in section 
  25 to a side valve on the 10-inch TG24001 in section 30 (including well facilities for G1, G1A, G2, & G3).    


    This Interim Agreement (``Agreement'') is by and among Phillips 
Petroleum Company (``Phillips''), a corporation organized, existing and 
doing business under and by virtue of the laws of the state of 
Delaware, with its principal executive offices located at Phillips 
Building, Bartlesville, Oklahoma 74004; Enron Corp. (``Enron'') a 
corporation organized, existing, and doing business under and by virtue 
of the laws of the State of Delaware, with its principal executive 
offices located at 1400 Smith Street, Houston, Texas 77002; and the 
Federal Trade Commission (``Commission''), an independent agency of the 
United States Government, established under the Federal Trade 
Commission Act of 1914, 15 U.S.C. Sec. 41, et seq. (collectively, the 
``Parties'').

Premises

    Whereas, on November 15, 1994, Phillips entered into an Agreement 
to acquire certain voting securities from Enron, as further described 
in the ``Acquisition'' definition in the Agreement Containing Consent 
Order between Phillips, Enron, and the Commission; and
    Whereas, the Commission is now investigating the Acquisition to 
determine whether it would violate any of the statutes enforced by the 
Commission; and
    Whereas, if the Commission accepts the Agreement Containing Consent 
Order (``Consent Order''), the Commission must place it on the public 
record for a period of at least sixty (60) days and may subsequently 
withdraw such acceptance pursuant to the 

[[Page 47389]]
provisions of Section 2.34 of the Commission's Rules; and
    Whereas, under the Consent Order, Enron will not sell, transfer or 
otherwise convey, directly or indirectly, to Phillips certain assets 
listed in Schedule A of the Consent Order in connection with the 
Acquisition; and
    Whereas, the Commission is concerned that if an understanding is 
not reached to preserve the status quo ante, divestiture resulting from 
any proceeding challenging the legality of the Acquisition might not be 
possible, or might be a less than effective remedy; and
    Whereas, the purpose of this Agreement is to preserve the status 
quo ante pending Commission acceptance or rejection of the proposed 
Consent Order and to preserve a remedy for any anticompetitive effects 
of the Acquisition; and
    Whereas, Phillips and Enron's entering into this Agreement shall in 
no way be construed as an admission by Phillips and Enron that the 
Acquisition is illegal or anticompetitive; and
    Whereas, Phillips and Enron understand that no act or transaction 
contemplated by this Agreement shall be deemed immune or exempt from 
the provisions of the antitrust laws or the Federal Trade Commission 
Act by reason of anything contained in this Agreement.
    Now, therefore, with the understanding that the Commission has not 
yet determined whether the Acquisition will be challenged, and in 
consideration of the Commission's agreement that, unless the Commission 
determines to reject the Consent Order, it will not seek further relief 
from Phillips and Enron with respect to the Acquisition (except that 
the Commission may exercise any and all rights to enforce this 
Agreement and the Consent Order to which it is annexed and made a part 
thereof,) the Parties agree as follows:
    1. Phillips and Enron agree to execute and be bound by the Consent 
Order. Phillips, Enron, and the Commission further agree that each term 
defined in the Consent Order shall have the same meaning in this 
Agreement.
    2. Phillips and Enron agree that from the date this Agreement is 
accepted until the earlier of the dates listed in subparagraphs 2.a. 
and 2.b., they will not consummate the Acquisition:
    a. Three (3) business days after the Commission withdraws its 
acceptance of the Consent Order pursuant to the provisions of Section 
2.34 of the Commission's rules; or
    b. One day after the Consent Order becomes final.
    3. Should the Federal Trade Commission seek in any proceeding to 
compel Phillips to divest itself of the voting securities acquired in 
the Acquisition, or assets conveyed pursuant thereto, or to seek any 
other injunctive or equitable relief, Phillips and Enron shall not 
raise any objection based on the expiration of the applicable waiting 
period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 
or the fact that the Commission has permitted the Acquisition. Phillips 
and Enron also waive all rights to contest the validity of this 
Agreement.
    4. For the purpose of determining or securing compliance with this 
Agreement, subject to any legally recognized privilege, and upon 
written request with reasonable notice to Phillips or Enron, as the 
case may be, made to its principal office, Phillips or Enron, as the 
case may be, shall permit any duly authorized representative or 
representatives of the Commission:
    a. Access during the office hours of the company and in the 
presence of counsel to inspect and copy all books, ledgers, accounts, 
correspondence, memoranda, and other records and documents in the 
possession or under the control of the company relating to compliance 
with this Agreement;
    b. Without restraint or interference from it, to interview officers 
or employees of the company, who may have counsel present, regarding 
any such matters.
    5. In the event the Commission has not finally issued the Consent 
Order within one hundred twenty (120) days of its publication in the 
Federal Register, Phillips or Enron may each, at its own option, 
terminate this Agreement by delivering written notice of termination to 
the Commission, which termination shall be effective ten (10) days 
after the Commission's receipt of such notice, and this Agreement shall 
thereafter be of no further force and effect. If this Agreement is so 
terminated, the Commission may take such action as it deems 
appropriate, including, but not limited to, an action pursuant to 
Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. 
Sec. 53(b). Termination of this Agreement shall in no way operate to 
terminate the Consent Order that Phillips and Enron have entered into 
in this matter.
    6. This Agreement shall not be binding until approved by the 
Commission.
Analysis To Aid Public Comment on the Provisionally Accepted Consent 
Order

    The Federal Trade Commission (``Commission'') has accepted for 
public comment from Phillips Petroleum Co. (``Phillips'') and Enron 
Corp. (``Enron'') an agreement containing consent order. This agreement 
has been placed on the public record for sixty (60) days for reception 
of comments from interested persons.
    Comments received during this period will become part of the public 
record. After sixty (60) days, the Commission will again review the 
agreement and the comments received, and will decide whether it should 
withdraw from the agreement or make final the agreement's order.
    The Commission's investigation of this matter concerns Phillips' 
proposed acquisition, through its wholly-owned subsidiary, GPM Gas 
Services Corp., of certain pipeline gathering systems owned by Enron's 
subsidiaries, Northern Natural Gas Co. and Transwestern Pipeline Co. 
Phillips and Enron are engaged in gas gathering--the transportation of 
natural gas, for their own or for others' use, from a well head or 
producing area to a gas transmission pipeline or a gas processing 
plant. The Commission's investigation of this matter found potential 
anticompetitive problems in the Texas Panhandle counties of Hansford, 
Lipscomb, and Ochiltree and the immediately adjoining area in Beaver 
County, Oklahoma (hereafer referred to as the Panhandle counties).
    For certain gas and oil producers in the Panhandle counties, the 
respondents are the only, or two of very few, choices available for 
producers who require gas gathering services. The Commission was 
concerned that the proposed merger would eliminate competition between 
the respondents in providing gas gathering services. The Commission was 
also concerned that the proposed merger would lead to anticompetitive 
increases in gathering rates to these producers, and an overvall 
reduction in gas drilling and production.
    The agreement Containing Consent order would, if finally issued by 
the Commission, settle charges alleged in the Commission's Complaint 
that Phillips' acquisition of Enron's gas gathering systems 
substantially lessened competition in the gathering of natural gas in 
the Panhandle counties. The nature of such competition to be preserved 
is the actual and potential competition to provide gas gathering 
services to producers and other customers of the parties. The 
Commission's Complaint further alleges that Phillips' merger agreement 
with Enron violates Section 5 of the Federal Trade Commission Act and 
that the merger, if consummated, would violate Section 5 of the Federal 
Trade 

[[Page 47390]]
Commission Act and Section 7 of the Clayton Act.
    The order accepted for public comment contains provisions that 
would require that Enron not sell approximately 830 miles of pipe and 
related gas gathering assets within the Panhandle counties to Phillips. 
The gas gathering assets to be excluded from the transaction are listed 
in Schedule A of the proposed Consent Order. For a period of ten (10) 
years from the date that the order becomes final, the order would 
require prior Commission notification before (a) Phillips could acquire 
from any one person during any 18 month period more than five miles of 
gas gathering pipelines located within the Panhandle counties, or (b) 
Enron could sell the Schedule A assets to Phillips or Maxus Energy 
Corporation, another large gas gatherer in the Panhandle counties.
    A separate agreement between the Commission and Phillips and Enron 
preserves the status quo pending final action by the Commission to 
accept or reject the proposed consent order. Phillips and Enron agreed 
to take no steps to consummate the proposed acquisition until the 
Commission accepts or rejects the proposed order.
    The purpose of this analysis is to invite public comment concerning 
the consent order. This analysis is not intended to constitute an 
official interpretation of the agreement and order or to modify their 
terms in any way.
Donald S. Clark,
Scretary.
[FR Doc. 95-22581 Filed 9-11-95; 8:45 am]
BILLING CODE 6750-01-M