Page 27 - Petrospex_Elaine Prospect

or damage to the property or personal property located thereon or used in
connection therewith caused by strikes, labor troubles, riots, fires,
blowouts, failure to obtain equipment or material, tornadoes, floods, acts
of public enemy, insurrections, acts of God, freezing of well, breakdown
or failure of plant or machinery, failure to carry out the provisions hereof
due to the provisions of law or rules and regulations promulgated by any
Governmental Agency or any demand or requisition of the Government, or
from any other cause beyond the control of Operator in the exercise of
reasonable diligence.

12. A. The rights, duties, obligations and liabilities of the parties hereto
shall be several and not joint or collective, and nothing herein contained
shall ever be construed as creating a partnership of any kind, joint
venture, association or trust, or as imposing upon any one or more of the
parties hereto any partnership duty, obligation or liability. Each party shall
be individually responsible for only her/his own obligations as set out in
this Agreement, and shall be liable only for her/his proportionate share of
the costs and expenses as herein provided.

B. Whenever, in this Agreement, reference is made to the property or
operations for the joint benefit of Owner hereto, or whenever similar
language is used, the parties use such language merely as a convenient
method of referring to the lands and lease subject hereto, or the accounting
necessary between the parties, and no such phraseology shall ever be
construed as creating any joint liability upon the part of the
parties hereto from any obligation incurred under this Agreement as
setting apart or creating any fund or jointly owned property for the
satisfaction of any such obligation; of as creating a common fund for any
other purpose.

13. Unless sooner terminated by express provisions hereof, or by mutual
consent of the parties hereto in writing, this Agreement shall remain in
force and effect for the commercial lifetime of the property subject hereto,
and thereafter until all personal property used or acquired hereunder shall
have been salvaged and disposed of and a final settlement by the
parties hereto shall have been made; provided, however, that the
termination of this Agreement shall not relieve any party hereto from any
liability which has occurred prior to the date of termination.

14. INCOME TAX – ELECTION

Notwithstanding any provisions herein that the rights liabilities of the
parties hereunder are several and not joint or collective, or that this
Agreement and the operations hereunder shall not constitute a partnership,

Operating Agreement - Page 7 of 15