The following principles represent ConocoPhillips' likely position in unit discussions concerning facility access for new oil production from new developments:

• CPAI recognizes that Facility Sharing terms must be reasonable to be a 'win/win' for all parties. Sharing should keep the "host" facility owner(s) whole, preserve the integrity of existing agreements, acknowledge the risk of initial investment and not expose host owners to material regulatory, financial or operational/physical risks.
• Provided that the satellite fluids are compatible with those produced from the host fields and there is spare oil capacity in the system, CPAI will support timely negotiations for facility access with explorers or developers active in areas near facilities in which CPAI owns interests. These terms can only be indicative if the explorer has not yet discovered commercial quantities of hydrocarbons.
• Satellite production owners will need to pay any CAPEX and abandonment costs associated with producing their reserves and compensate host facility owners for historical and current capital investments and abandonment costs for accessed facilities.
• Satellite production owners will need to pay their proportionate share of facility operating and maintenance costs based on actual costs and the relative volumes of fluids processed through the host facility
• Satellite production owners will need to compensate the host facility owners for all deferments/losses of host field daily oil production rates and reserves caused by satellite production referred to as "back out".
• Operations will be conducted to maximize the volume of oil processed through facilities and to optimize total oil production compatible with reservoir deliverability regardless of the reservoir pool (host vs. satellite) from which production originates - i.e. "best well produces."
• The host operator will operate any new facilities at the host location required for or associated with satellite production.
• Satellite fields are obligated to supply gas and water to satisfy satellite operational needs and host facility requirements associated with processing satellite production.
• Satellite owners will retain and be responsible for all liability associated with or arising from their dedicated facilities and operations.
• Differences in oil characteristics will be accounted for using an oil-quality adjustment.
• Satellite and host owners are each responsible for their own royalty and taxes. Satellite production owners will compensate host owners for any additional tax liability incurred by host as a result of providing facility access to Satellite production owners.
• Satellite production owners will have access to existing owner support services on an "available" basis and may be subject to a user fee.