PURCHASE AND SALE AGREEMENT

ARTICLE 1 PURCHASE AND SALE

Section 1.1 Purchase and Sale

Section 1.2 Combined Assets

Section 1.3 Excluded Assets

Section 1.4 Certain Definitions

Section 1.5 Effective Time; Proration of Costs and Revenues.

Section 1.6 Back-In Interests

Section 1.7 Pre-Effective Time Interests and Assets

Section 1.8 Intentions of the Parties

ARTICLE 2 PURCHASE PRICE

Section 2.1 Purchase Price

Section 2.2 Adjustments to Purchase Price

Section 2.3 Effect of Purchase Price Adjustments

Section 2.4 Allocation of Purchase Price

ARTICLE 3 TITLE MATTERS

Section 3.1 Title

Section 3.2 Definition of Defensible Title

Section 3.3 Definition of Permitted Encumbrances

Section 3.4 Notice of Asserted Title Defects; Defect Adjustments

Section 3.5 Consents to Assignment and Preferential Rights to Purchase

Section 3.6 Casualty or Condemnation Loss

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF SELLER

Section 4.1 Disclaimers

Section 4.2 Seller.

Section 4.3 Liability for Brokers’ Fees

Section 4.4 Consents, Approvals or Waivers

Section 4.5 Litigation

Section 4.6 Taxes

Section 4.7 Environmental Laws

Section 4.8 Compliance with Laws

Section 4.9 Contracts

Section 4.10 Payments for Production

Section 4.11 Production Imbalances

Section 4.12 Permits, etc.

Section 4.13 Outstanding Capital Commitments

Section 4.14 Plugging and Abandonment

Section 4.15 Condition of Equipment, etc.

Section 4.16 Payments of Royalties and Expenses

Section 4.17 Suspense

Section 4.18 Absence of Certain Events

Section 4.19 Information

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF PURCHASER

Section 5.1 Existence and Qualification

Section 5.2 Power

Section 5.3 Authorization and Enforceability

Section 5.4 No Conflicts

Section 5.5 Liability for Brokers’ Fees

Section 5.6 Consents, Approvals or Waivers

Section 5.7 Litigation

Section 5.8 Financing

Section 5.9 Qualification

Section 5.10 No Top Leases

Section 5.11 Independent Investigation

Section 5.12 Seller Information

ARTICLE 6 COVENANTS OF THE PARTIES

Section 6.1 Access

Section 6.2 Indemnity Regarding Access

Section 6.3 Pre-Closing Notifications

Section 6.4 Confidentiality; Public Announcements

Section 6.5 Governmental Reviews

Section 6.6 Tax Matters

Section 6.7 Further Assurances

Section 6.8 Assumption of Obligations

Section 6.9 Like-Kind Exchange

Section 6.10 Operation of Assets

Section 6.11 Financial Information

Section 6.12 No Merger of Interests

Section 6.13 Waiver of Condition for Pittston Litigation

ARTICLE 7 CONDITIONS TO CLOSING

Section 7.1 Conditions of Seller to Closing

Section 7.2 Conditions of Purchaser to Closing

ARTICLE 8 CLOSING

Section 8.1 Time and Place of Closing

Section 8.2 Closing Deliveries of Seller

Section 8.3 Closing Deliveries of Purchaser

Section 8.4 Closing Payment and Post-Closing Purchase Price Adjustments

ARTICLE 9 TERMINATION AND AMENDMENT

Section 9.1 Termination

Section 9.2 Effect of Termination

ARTICLE 10 INDEMNIFICATIONS; LIMITATIONS

Section 10.1 Indemnification

Section 10.2 Indemnification Actions

Section 10.3 Limitation on Actions

ARTICLE 11 MISCELLANEOUS

Section 11.1 Receipts

Section 11.2 Property Costs and Gathering Charges

Section 11.3 Counterparts

Section 11.4 Notices

Section 11.5 [Intentionally Omitted]

Section 11.6 Expenses

Section 11.7 [Intentionally Omitted]

Section 11.8 Governing Law; Jurisdiction; Court Proceedings

Section 11.9 Records

Section 11.10 Captions

Section 11.11 Waivers

Section 11.12 Assignment

Section 11.13 Entire Agreement

Section 11.14 Amendment

Section 11.15 No Third Person Beneficiaries

Section 11.16 References

Section 11.17 Construction