IN THE UNITED STATES BANKUPTCY COURT

FOR THE DISTRICT OF DELAWAR

In re:
) ) ) ) ) )
Chapter 1 1

PACIFIC ENERGY RESOURCES LTD., et ai., 1

Debtors.

Case No. 09-10785(KJC) (Jointly Administered)

Deadline for Objections: September 29, 2009 at 4:00 p.m. (ET) Hearing Date: October 6, 2009 at 11:00 a.m. (ET)

DEBTORS' THIRD MOTION FOR ORDER UNDER SECTION 365(a) OF THE BANKRUPTCY CODE AUTHORIZING THE DEBTORS TO REJECT CERTAIN EXECUTORY CONTRACTS AND UNEXPIRED LEASES
The above-captioned debtors and debtors in possession (the "Debtors") hereby
move this Court for entry of an order authorizing the Dbtors to reject various contacts and
leases of

personal propert related to the Debtors' abandoned Alaska assets and former
this Motion, the Debtors respectfully state as

Wyoming operations (the "Motion"). In support of

follows:

Preliminary Statement
1. The Debtors have abandoned their producing Alaska assets pursuant to

orders of this Court. The Debtors also previously had minimal operations in Wyoming that were concluded prior to the commencement of these bankptcy cases. The Debtors now seek

1 The Debtors in these cases, along with the last four digits of each of the Debtors' federal tax identification number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska Holdings, LLC (tax J.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC and Gotland Oil, Inc. (5463). The (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); mailing address for all of the Debtors is ILL W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.

68773-002\DOCS _ LA:2077 1 9.7

approval of

the rejection of (a) contracts and leases of

personal propert related to the Debtors'

abandoned Alaska assets listed on Exhibit A hereto (the "Alaska Agreements") (the Alaska
Agreements were inadvertently omitted from the Debtors' prior abandonment motions); and (b)

an agreement related to the Debtors' former Wyoming operations identified on Exhibit B hereto
(the "Wyoming Agreement," and, collectively with the Alaska Agreements, the "Rejected

Agreements"). Because the Debtors have abandoned their producing Alaska assets and
concluded their Wyoming operations, the estates have no further need for the Rejected
Agreements.

Jurisdiction
2. This Court has jurisdiction over this Motion pursuant to 28 u.S.C. 157

and 1334. This is a core proceeding pursuant to 28 U.S.C. 1

57(b)(2). Venue is proper before

this Court pursuant to 28 u.S.C. 1408 and 1409.

3. The statutory predicates for the relief sought herein are section 365(a) of
title of the United States Code (the "Bankptcy Code") and Rules 6006 of

the Federal Rules of

Bankptcy Procedure (the "Bankptcy Rules").

Back2round
4. On March 9,2009 (the "Petition Date"), the Debtors commenced these
cases by filing voluntary petitions for relief

under chapter 11 ofthe Bankptcy Code.

their propert and have

5. The Debtors have continued in the possession of

continued to operate and manage their businesses as debtors and debtors in possession pursuant
to sections 1 107(a) and 1108 of

the Bankptcy Code. No trustee or examiner has been

68773-002\DOCS _LA:2077 1 9.7

appointed in the Debtors' chapter 11 cases. The Offce of

the United States Trustee appointed an

Official Committee of

Unsecured Creditors on March 19,2009.

6. The Debtors are a group of independent energy companies engaged in the

acquisition, development and exploitation of oil and gas properties in the western United States.

The Debtors' current oil and gas assets are located offshore near California. This month
(September 2009), this Court entered two orders (Docket Nos. 832 and 876) authorizing the

abandonment of the Debtors' producing oil and gas assets located in Alaska. The Debtors have
already made an extensive record justifying the abandonment.
7. Pacific Energy Resources Ltd., one of

the Debtors, ended its Wyoming

operations prepetition. Under the Wyoming Agreement, PERL contracted with SWEPI LP and

Wolverine Gas and Oil Corporation to explore approximately 100,000 acres of land in Wyoming

for oil and gas production possibilities and driled an exploratory well. If successful (under the
terms of

the Wyoming Agreement), PERL would have earned working interests in the oil and

gas assets. The exploratory well was dry, however, and no working interests were obtained by

PERL.

Relief Requested
8. By this Motion, the Debtors seek entr of an order pursuant to section 365

of the Bankptcy Code and Bankptcy Rule 6006 authorizing and approving the Debtors'
rejection of

the Rejected Agreements.2

2 The Debtors reserve all rights with respect to the characterization of each Rejected Agreement and any rejection
or other damages that may be asserted by the counterparties thereto.

68773-002\DOCS _ LA:2077 19.7

9. To the extent notice of

intention to reject has not been previously

provided, the filing and service of

this Motion shall serve as notice to each non-Debtor part to

the Debtors' intent

the Rejected Agreements (collectively, the "Non-Debtor Contract Parties") of

to reject the Rejected Agreements.

10. The Debtors have determined in their reasonable business judgment that

the Rejected Agreements are unnecessary to these estates. Therefore, rejection of

the Rejected

Agreements is in the best interests of creditors.

Basis for Relief

11. Section 365(a) of

the Bankptcy Code provides that a debtor in

possession, "subject to the court's approval, may... reject any executory contract or unexpired
lease of

the debtor." 11 U.S.C. 365(a). See also University Med. Ctr. v. Sullvan (In re

University Med. Ctr.), 973 F.2d 1065, 1075 (3d Cir. 1992). "This provision allows a trustee to
relieve the bankptcy estate of

burdensome agreements which have not been completely

performed." Stewart Title Guar. Co. v. Old Republic Natl Title Co., 83 F.3d 735, 741 (5th Cir.
1996) citing In re Muerexco Petroleum, Inc., 15 F.3d 60,62 (5th Cir. 1994).

12. The decision to assume or reject an executory contract or unexpired lease

is a matter within the "business judgment" of

the debtor. See NLRB v. Bildisco (In re Bildisco),

682 F .2d 72, 79 (3d Cir. 1982) ("The usual test for rejection of an executory contract is simply

whether rejection would benefit the estate, the 'business judgment' test."); In re Taylor, 913 F.2d
102, 107 (3d Cir. 1990); see also In re Federal Mogul Global, Inc~, 293 B.R. 124, 126 (D. DeL.

2003); In re HQ Global Holdings, 290 RR. 507, 511 (Bank. D. DeL. 2003). The business
judgment standard mandates that a court approve a debtor's business decision unless the decision
4

68773-002\DOCS LA:207719.7

is the product of

bad faith, whim or caprice. See In re Trans World Airlines, Inc., 261 B.R. 103,

121 (Bank. D. DeL. 2001). See also Summit Land Co. v. Allen (In re Summit Land Co.), 13 RR.

310,315 (Bank. D. Utah 1981) (absent extraordinary circumstances, court approval ofa
debtor's decision to assume or reject an executory contract "should be granted as a matter of
course").
13. Rej ection of an executory contract or unexpired leases is appropriate

where rejection would benefit the estate. See Sharon Steel Corp. v. National Fuel Gas

Distribution Corp. (In re Sharon Steel Corp.), 872 F.2d 36,40 (3d Cir. 1989). The standard for
rejection is satisfied when a debtor has made a business determination that rejection will benefit
the estate. See Commercial Fin. Ltd. v. Hawaii Dimensions, Inc. (In re Hawaii Dimensions,

Inc.), 47 RR. 425, 427 (D. Haw. 1985) ("under the business judgment test, a court should
approve a debtor's proposed rejection if

such rejection wil benefit the estate.").

14. If a debtor's business judgment has been reasonably exercised, a court

should approve the rejection of an unexpired lease or executory contract. See, e.g., In re Federal

Mogul Global, Inc., 293 B.R. 124, 126 (D. DeL. 2003).
15. Pursuant to section 365(a) ofthe Bankptcy Code, the Debtors seek to

reject the Rejected Agreements, in order to avoid the possibility of

incurring any additional

expenses and costs related to the Rejected Agreements. See NLRB v. Bildisco & Bildisco, 465

U.S. 513,530 (1984) (stating that rejection relates back to the petition date).
16. The Debtors have determined in the exercise of their business judgment to
reject the Rejected Agreements. The Rejected Agreements relate to operations in Alaska and

Wyoming that have either been abandoned or concluded by the Debtors. Therefore, there is no

68773-002\DOCS LA:207719.7

business purpose to maintaining the Rejected Contracts and the Debtors seek to avoid any further
liability accruing thereunder.
17. The Debtors may have claims and/or defenses against a Non-Debtor

Contract Part arising under, or independently of, the Rejected Agreements. The Debtors do not

waive such claims by the fiing ofthis Motion or the rejection ofthe Rejected Agreements. In
addition, nothing herein shall be constred as a concession or evidence that the Rejected
Agreements are executory contracts or unexpired leases, or that the Rejected Agreements have

not expired, been terminated or otherwise currently are not in full force and effect. Rather, the
Debtors expressly reserve all rights with respect thereto, including their right to seek a later
determination of

these issues, and their right to dispute the validity, status, characterization or
the Rejected Agreements set forth herein.

enforceability of

Notice
18. Notice of

this Motion has been given to the following parties or, in lieu
the United States Trustee (ii) counsel to the

thereof, to their counsel, ifknown: (i) the Offce of

Committee; (iii) the Non-Debtor Contract Parties; (iv) counsel for the prepetition and

postpetition lenders; and (v) those persons who have requested notice pursuant to Rule 2002 of
the Federal Rules of Bankptcy Procedure. The Debtors submit that, in light of the nature of

the

relief requested, no other or further notice need be given.

No Prior Request
19. No prior motion for the relief

requested herein has been made to this or

any other Court.

68773-002\DOCS _ LA:2077 1 9.7

WHEREFORE, the Debtors respectfully request that the Court enter an order
authorizing the Debtors to reject the Rejected Agreements, and granting such other relief as is

just and proper.

Dated: September ~ 2009

P ACHULSKI STANG ZIEHL & JONES LLP

. ~6 L.~
r o. 109084)

Ro rt M. Sa nders ( A Bar 0.226172)

James E. O'Neil (DE . 4042)

Scotta E. McFarland (DE Bar No. 4184, CA Bar No. 165391) 919 North Market Street, 1 ih Floor P.O. Box 8705 Wilmington, DE 19899-8705
Telephone: 302/652-4100

Facsimile: 310/652-4400
Email: ikharasch~pszjlaw.com

rsaunders~pszjlaw .com

joneil~pszjlaw.com
smcfarland~pszjlaw .com Counsel for Debtors and Debtors in Possession.

68773-002\DOCS _ LA:2077 19.7

IN THE UNITED STATES BANKUPTCY COURT

FOR THE DISTRICT OF DELAWAR

In re:
) )
)

Chapter 1 1

PACIFIC ENERGY RESOURCES LTD., et al., 1

Debtors.

) ) )

Case No. 09-10785(KJC) (Jointly Administered)

Deadline for Objections: September 29, 2009 at 4:00 p.m. (ET)

Hearing Date: October 6,2009 at 11:00 a.m. (ET)

NOTICE OF DEBTORS' THIRD MOTION FOR ORDER UNDER SECTION 365(a) OF THE BANKRUPTCY CODE AUTHORIZING THE DEBTORS TO REJECT CERTAIN EXECUTORY CONTRACTS AND UNEXPIRED LEASES
Delaware; (ii) counsel to the Debtors' prepetition and postpetition secured lenders; (iii) counsel to the Offcial Committee of Unsecured Creditors; (iv) all counter-parties to the leases and contracts that are the subject ofthe Motion; and (v) those persons who have requested notice pursuant
TO: (i) Office of the United States Trustee for the District of

to Bankptcy Rule 2002.

PLEASE TAKE NOTICE that the debtors and debtors in possession (collectively, the
"Debtors"), in the above-captioned cases, filed the attached Debtors' Third Motion/or Order
Under Section 365(a) of

the Bankruptcy Code Authorizing the Debtors to Reject Certain

Executory Contracts and Unexpired Lease (the "Motion"), with the United States Bankptcy
Court for the District of

Delaware, 824 Market Street, Wilmington, Delaware 19801 (the

"Bankptcy Court"). Pursuant to the Motion, the Debtors seek to reject various executory

1 The Debtors in these cases, along with the last four digits of each of the Debtors' federal tax identification
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska

Holdings, LLC (tax J.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The mailing address for all of the Debtors is ILL W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.

68773-002\DOCS _ LA:20771 9.7

contracts and unexpired leases of personal propert related to their abandoned Alaska assets and
former Wyoming operations.

PLEASE TAKE FURTHER NOTICE that any response or objection to the relief
sought in the Motion must be filed with the Bankptcy Court on or before September 29, 2009

at 4:00 p.m. prevailng Eastern Time.

PLEASE TAKE FURTHER NOTICE that at the same time, you must also serve a
copy of

the response or objection upon: (a) counsel to the Debtors: (1)Pachulski Stang Ziehl &

Jones LLP, 10100 Santa Monica Blvd., 11th Floor, Los Angeles, CA 90067-4100; Attn: Ira D.

Kharasch, Esq; Fax: 310-201-0760, e-mail: ikharash~pszjlaw.com and Robert M. Saunders,

Esq., Fax: 310-201-0760, e-mail: rsaunders~pszyjlaw.com and (2) Pachulski Stang Ziehl &

Jones LLP, 919 North Market Street, 1 ih Floor, Wilmington, DE 19899-8705, Attn: James

O'Neill, Esq.; Fax: 302-652-4400, e-mail: joneil~pszjlaw.com; (b) counsel to the Lenders: (1)
Goldman Sachs (i) Bingham McCutchen, 399 Park Avenue, New York, NY 10022, Attn:

Jeffrey Sabin, Esq.; Fax: 212-752-5378, e-mail: jeffrey.sabin~bingham.com and (ii) Bingham

McCutchen, One Federal Street, Boston, MA 01221-1726, Att: Amy Kyle, Fax: 617-345-

5001, e-mail: amy.kyle~bingham.com and (2) Silver Point Finance: Skadden, Ars, Slate,
Meagher & Flom, LLP, 333 West Wacker Drive, Chicago, IL 60606-1285, Attn: Seth

Jacobson, Esq.; Fax: 312-407-8511, e-mail: seth.jacobson~skadden.com and (c) the Offce of
the United States Trustee, J. Caleb Boggs Federal Building, 844 N. King Street, Suite 2207,

Lock Box 35, Wilmington, Delaware 19801, Attn: Joseph McMahon, Esq., Fax: (302) 573-

6497, email: joseph.mcmahon~usdoj.gov; and (d) counsel for the Offcial Committee of
Unsecured Creditors: (1) Steptoe & Johnson LLP, 2121 Avenue ofthe Stars, 28th Floor, Los

Angeles, CA 90067; Attn: Katherine C. Piper, Esq., Fax: (310) 734-3173, e-mail:

68773-002\DOCS _ LA:2077 1 9.7

kpiper~steptoe.com and (2) Pepper Hamilton LLP, Hercules Plaza, Ste 5100, 1313 N. Market

Street, Wilmington, DE 19801; Attn: James C. Carignan, Esq., Fax: (302) 421-8390, e-mail:
jcarignan~pepperlaw .com.

PLEASE TAK FURTHER NOTICE THAT IF YOU FAIL TO RESPOND IN

ACCORDANCE WITH THIS NOTICE, THE COURT MAY GRANT THE RELIEF

DEMANDED BY THE MOTION WITHOUT FURTHER NOTICE OR HEARG.

PLEASE TAKE FURTHER NOTICE THAT A HEARG TO CONSIDER THE

RELIEF SOUGHT IN THE MOTION WILL BE HELD ON OCTOBER 6,2009 AT 11:00

A.M. PREVAILING EASTERN TIME BEFORE THE HONORALE KEVIN J. CARY AT

THE UNITED STATES BANKRUPTCY COURT, 824 MART STREET, FIFTH FLOOR,

COURTROOM #5, WILMINGTON, DELAWAR 1980L.

Dated: September 1 2009 PACHULSKI STANG ZIEHL & JONES LLP

C#"3C,ti9
Ira . Kha sch (C B No. 109084)

Robert M. Saunders 1\ Bar No. 226172) James E. O'Neill (DE Bar No. 4042) Scotta E. McFarland (DE Bar No. 4184, CA Bar No. 165391) 919 North Market Street, 1 ih Floor P.O. Box 8705

Wilmington, DE 19899-8705
Telephone: 302/652-4100

Facsimile: 310/652-4400
Email: ikharasch~pszjlaw.com

rsaunders~pszjlaw.com j oneil~pszjlaw .com smcfarland~pszjlaw.com Counsel for Debtors and Debtors in Possession.

68773-002\DOCS _ LA:2077 19.7

EXHIBIT A

00001 -002\DOCS_DE: 137773. 1

Exhibit A- Alaska Agreements

COUNTERPARTY
Aurora Gas LLC 6051 North Course Drive

DEBTOR
PEAO

REJECTED EXECUTORY CONTRACT OR UNEXPIRED LEASE Joint Operating Agreement (Three Mile Creek)

Suite 200 Houston, TX 77043

Aurora Gas LLC 6051 North Course Drive

PEAO

Gas Trans. & Measurement Agreement (Oct 2005)

Suite 200 Houston, TX 77043

Blake Offshore, LLC P.O. Box 6080 Metairie, Louisiana 70009

PEAO

Offshore Daywork Drilling Contract (March 7, 2008)

Bureau of Land

PEAO

ManagemenUWest Foreland
222 W. 7th Ave, #13

West Foreland # 1-West Foreland Field Compensatory Royalty Agreement (See same agreement below listed under the State of Alaska Dept. of Natural Resources)

Anchoraqe, AK 99513
Bureau of Land

PEAO

ManagemenUWest Foreland 222 W. 7th Ave, #13 Anchoraqe, AK 99513

Cook Inlet Pipeline

West Foreland # 2-West Foreland Field Royalty Sharing Agreement (See same agreement below listed under the State of Alaska Dept. of Natural

Resources)
PEAO
Cook Inlet Pipeline Funding Agreement (See same agreement below listed under Union Oil Company of California)

Company 909 W. 9th Street,

Anchoraqe, Alaska 99501

Cook Inlet Region, Inc. PO Box 93330

PEAO

West Foreland General Agreement and related

agreements and pipeline easements

Anchorage, AK 995099330
Cook Inlet Spil Prevention
and Response, Inc. P. O. Box 7314 Nikiski, AK 99635

PERL

Response Action Contract

Digitel Data Joint 10811 S Westview Circle Dr.,#100, C

PEAO

Seismic Data Licensing Agreement

Houston, TX 77043-2739
Forest Oil Corporation

707 17th Street, Suite 3600 Denver, CO 80202

PERL and PEAO

Member Interest Purchase Agreement (May 2007)

COUNTERPARTY
Forest Oil Corporation

DEBTOR
PERL

REJECTED EXECUTORY CONTRACT OR UNEXPIRED LEASE Asset Sale Agreement (May 2007)

707 17th Street, Suite 3600 Denver, CO 80202

Forest Oil Corporation

707 17th Street, Suite 3600 Denver, CO 80202

Frontier Business Systems

Pacific Energy Alaska Holdings

PEAO

Share Acquisition and Registration Rights (July

2007)
Copier Lease

1432 Ingra St. Anchorage, AK 99501

Industrial Refuse Inc. 44196 Kalifornsky Beach Rd.

PEAO

Container Rentals

Soldotna, AK 99669
Lewis & Lewis

PEAO

Printer Maintenance Contract

405 E. Fireweed Lane Anchorage, AK 99503

MT A Communications, Inc.

PEAO

Phone Maintenance

1740 S. Chugach St. Palmer, AK 99645

Salamatof Native

PEAO

Association
PO Box 2682

West Foreland General Agreement and related agreements

Software Maintenance Contract

Kenai, AK 99611
Spectra Logic Corporation

PEAO

1700 North 55th St.

Boulder, CO 80301
State of Alaska Dept. of Natural Resources

PERL

Escrow Agreement for Abandonment Liabilties for

Redoubt Unit

550 W. 7th Avenue, Suite 800

Anchorae, AK 95501 State' of Alaska Dept. of Natural Resources
PEAO
Redoubt Unit Agreement dated April 29, 1997

550 W. 7th Avenue, Suite 800 Anchorage, AK 95501

State of Alaska Dept. of Natural Resources 550 W. 7th Avenue, Suite

PEAO

West Foreland # 1-West Foreland Field Compensatory Royalty Agreement (See same agreement above listed under Bureau of Land

800 Anchorage, AK 95501

State of Alaska Dept. of Natural Resources

Management/est Foreland)
PEAO
West Foreland # 2-West Foreland Field Royalty Sharing Agreement (See same agreement above listed under Bureau of Land Management/est

550 W. 7th Avenue, Suite 800 Anchorage, AK 95501

Foreland)

COUNTERPARTY
The O'Brien's Group, Inc. P. O. Box 8500

DEBTOR
PEAO

REJECTED EXECUTORY CONTRACT OR UNEXPIRED LEASE Oil Spill Responder/Coordinator Contract

Philadelphia, PA 191782591 Union Oil Company Of California 3800 Center Point Drive

PEAO

Cook Inlet Pipe Line Funding Agreement (See same agreement above listed under Cook Inlet Pipe Line

Company)
PERL
Stand-By Trust Agreement

Suite 100 Anchorage, AK 99503

United States E P A

Region 10

1200 6th Street Seattle, WA 98101

XTO Energy
P.O. Box 730587

PEAO

Radio Tower and Communications Services

Dallas, TX 75373-0587
First National Bank of

PERL

Alaska
101 West 36th Ave. Anchorage, AK 99503

Escrow Agreement for Abandonment Liabilities for Redoubt Unit

United State EPA Stand-By Trust Aqreement

EXHIBIT B

00001 -002\DOCS _DE: 13 7773.1

Exhibit 8- Wyoming Agreement

COUNTERPARTY
SWEPI LP P.O. Box 576 Houston, TX 77001 SWEPI LP 200 North Dairy Ashford Houston, TX 77079

DEBTOR
PERL

REJECTED EXECUTORY CONTRACT OR UNEXPIRED LEASE Participation Agreement (Pacific Creek Prospect, Green River Basin, WY), as

amended

Wolverine Gas and Oil Co. One Riverfront Plaza - 55 Campau NW Grand Rapids, MI 49503-

PERL

Participation Agreement (Pacific Creek Prospect, Green River Basin, WY), (August

20,2005) as amended.

2616

IN THE UNITED STATES BANKUPTCY COURT

In re: )
Upon consideration of

FOR THE DISTRICT OF DELAWAR

Chapter 1 1

) )

PACIFIC ENERGY RESOURCES LTD., et al., 1 )

Debtors. )
)

Case No. 09-10785(KJC) (Jointly Administered)

Related to Docket No.

ORDER GRANTING DEBTORS' THIRD MOTION FOR ORDER UNDER SECTION 365(a) OF THE BANKRUPTCY CODE AUTHORIZING THE DEBTORS TO REJECT CERTAIN EXECUTORY CONTRACTS AND UNEXPIRED LEASES
the motion (the "Motion")2 of

the captioned debtors and

debtors in possession (the "Debtors"), seeking entry of an order under section 365(a) ofthe

Bankptcy Code authorizing the Debtors to reject various contacts and leases of personal
propert related to the Debtors' abandoned Alaska assets and former Wyoming operations; and it
appearing that the relief requested is in the best interests of the Debtors' estates and creditors;

and it appearing that this Court has jurisdiction over this matter pursuant to 28 US.C. 157 and
1334; and it appearing that this proceeding is a core proceeding pursuant to 28 US.C. 1408

and 1409; and adequate notice ofthe Motion having been given; and it appearing that no other

1 The Debtors in these cases, along with the last four digits of each of the Debtors' federal tax identification
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska

Holdings, LLC (tax J.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The mailing address for all of the Debtors is ILL W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.

2 Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Motion.

68773-002\DOCS _ LA:2077 1 9. 7

notice need be given; and after due deliberation and suffcient cause appearing therefore, it is
hereby:

ORDERED that the Motion is granted; and it is further

ORDERED that each of

the Alaska Agreements listed on Exhibit A to the Motion

is hereby rejected; and it is further

ORDERED that the Wyoming Agreement listed on Exhibit B to the Motion is

hereby rejected; and it is further

ORDERED that the Debtors reserve all rights to contest any rejection or other
claims and/or the characterization of

the Rejected Agreements as executory contracts or

unexpired leases, or otherwise; and it is further

ORDERED that the Debtors reserve all rights to contest any fied claims arising
from the rejection of

the Rejected Agreements or otherwise; and it is further

ORDERED that the Debtors do not waive any claims that they may have against

any of

the counterparties to the Rejected Agreements, whether or not such claims are related to

the Rejected Agreements; and it is further

ORDERED that this Court shall retain jurisdiction to hear and determine all

matters arising from the implementation of this Order; and it is further

68773-002\DOCS _ LA:2077 1 9.7

ORDERED that notwithstanding the possible applicability of

Rules 6004(h),

7062,9014 of

the Federal Rules of

Bankptcy Procedure, or otherwise, the terms and conditions

ofthis Order shall be immediately effective and enforceable upon its entry.

Dated: October _, 2009

The Honorable Kevin J. Carey

Chief

United States Bankptcy Judge

68773-002\DOCS LA:207719.7

IN THE UNITED STATES BANKRUPTCY COURT

In re: )
STATE OF DELAWARE )
) ss:

FOR THE DISTRICT OF DELAWARE

Chapter 1 1

)
Case No. 09-10785 (KJe)

PACIFIC ENERGY RESOURCES LTD., et al., 1 )

Debtors. )

(Jointly Administered)

AFFIDAVIT OF SERVICE

COUNTY OF NEW CASTLE )

Kathleen Forte Finlayson, being duly sworn according to law, deposes and says
that she is employed by the law firm of

Pachulski Stang Ziehl & Jones LLP, attorneys for the

Debtors in the above-captioned action, and that on the 18th day of September, 2009 she caused a
copy of

the following document(s) to be served upon the parties on the attached service lists in

the manner indicated:

Notice and Debtors Third Motion for Order under Section 365(a) of the Bankruptcy Code Authorizing the Debtors to Reject Certain Executory
Contracts and Unexpired Leases

DEBR L. YOU
NOTAR PUBIC
STATE Of DELAWAR

Notary Public
Commission Exp. .
i The Debtors in these cases, along with the last four digits of each of

MyCO Il JU 1'.1011

the Debtors' federal tax identification number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska Holdings, LLC (tax J.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros
Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The mailing address for all of

the Debtors is 11 i W.

Ocean Boulevard, Suite 1240, Long Beach, CA 90802.

Pacific Energy - Third Rejection Motion Counterparties Wyoming Agreement Service List Case No. 09-10795 (KJC)
Document

No. 153194

03 - First Class Mail

First Class Mail

SWEPI LP

P.O. Box 576 Houston, TX 77001

First Class Mail

SWEPI LP

200 North Dairy Ashford Houston, TX 77079

First Class Mail

Wolverine Gas and Oil Co. One Riverfront Plaza - 55 Campau NW Grand Rapids, MI 49503-2616

Pacific Energy - Third Rejection Motion Contracts & Leases Service List
Case No. 09- 10795 (KJC)
Document No. 153192

First Class Mail Cook Inlet Spil Prevention and Response,

Inc.

27 - First Class Mail

P. O. Box 7314 Nikiski, AK 99635

First Class Mail

Digitel Data Joint

First Class Mail

Aurora Gas LLC 6051 North Course Drive Suite 200 Houston, TX 77043

10811 S Westview Circle Dr.,#lOO, C

Houston, TX 77043-2739

First Class Mail

Forest Oil Corporation 707 17th Street, Suite 3600 Denver, CO 80202

FirsfClass Mail Aurora Gas LLC 6051 North Course Drive Suite 200 Houston, TX 77043

First Class Mail

Forest Oil Corporation 707 17th Street, Suite 3600 Denver, CO 80202

First Class Mail

Blake Offshore, LLC P.O. Box 6080 Metairie, Louisiana 70009

First Class Mail

Forest Oil Corporation 707 17th Street, Suite 3600 Denver, CO 80202

First Class Mail

Land Management/West Foreland 222 W. 7th Ave, #13 Anchorage, AK 99513
Bureau of

First Class Mail

Frontier Business Systems 1432 Ingra St. Anchorage, AK 99501

First Class Mail

Land Management/West Foreland 222 W. 7th Ave, #13 Anchorage, AK 99513
Bureau of

First Class Mail

Industrial Refuse Inc. 44196 Kalifornsky Beach Rd. Soldotna, AK 99669

First Class Mail

Cook Inlet Pipeline Company 909 W. 9th Street
Anchorage, Alaska 9950 i

First Class Mail

Lewis & Lewis 405 E. Fireweed Lane Anchorage, AK 99503

First Class Mail

Cook Inlet Region, Inc.
PO Box 93330

Anchorage, AK 99509-9330

First Class Mail

MT A Communications, Inc.

1740 S. Chugach St. Palmer, AK 99645

First Class Mail

SalamatofNative Association

First Class Mail

XTO Energy P.O. Box 730587 Dallas, TX 75373-0587

PO Box 2682
Kenai, AK 9961 1

First Class Mail

Spectra Logic Corporation 1700 North 55th St.
Boulder, CO 8030 i

First Class Mail

First National Bank of Alaska
101 West 36th Ave.

Anchorage, AK 99503

First Class Mail

Natural Resources 550 W. 7th Avenue, Suite 800 Anchorage, AK 95501
State of Alaska Dept. of

First Class Mail

State of Alaska Dept. of Natural Resources 550 W. 7th Avenue, Suite 800 Anchorage, AK 95501

First Class Mail

Natural Resources 550 W. 7th Avenue, Suite 800 Anchorage, AK 95501
State of Alaska Dept. of

First Class Mail

Natural Resources 550 W. 7th Avenue, Suite 800 Anchorage, AK 95501
State of Alaska Dept. of

First Class Mail

The O'Brien's Group, Inc.

P. O. Box 8500
Philadelphia, PAl 91 78-2591

First Class Mail

Union Oil Company Of California 3800 Center Point Drive
Suite 100

Anchorage, AK 99503

First Class Mail

United States EP A
Region 10

1200 6th Street

Seattle, W A 98101

Pacific Energy Resources Ltd. 2002 Service List Case No. 09-10785
Document No. 145745

14 - Hand Delivery
43 - First Class Mail 02 - FOREIGN First Class Mail

Hand Delivery (United States Attorney) Ellen W. Slights, Esq. United States Attorney's Office District of Delaware
1007 N. Orange Street, Suite 700

Wilmington, DE 19801
Hand Delivery (Counsel for Silver Point Finance) Ian S. Fredericks, Esquire Skadden Ars, Slate, Meagher & Flom LLP One Rodney Square P.O. Box 636 Wilmington, DE 19899 Hand Delivery (Counsel for 1. Aron & Company) Don A. Beskrone, Esquire Amanda M. Winfree, Esquire Ashby & Geddes, P.A.
500 Delaware Avenue, 8th Floor

Counsel for Debtors) Laura Davis Jones, Esquire James E. O'Neil, Esquire Kathleen P. Makowski, Esquire Pachulski Stang Ziehl & Jones LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705

Interoffice Pouch to Los Angeles Counsel for Debtors) Robert M. Saunders, Esquire Ira D. Kharasch, Esquire Scotta E. McFarland, Esquire Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 11th Floor

Wilmington, DE 19899
Hand Delivery (Counsel for Union Oil Company of California, a California Corporation) Norman M. Monhait, Esquire
Rosenthal, Monhait & Goddess, P A
Citizens Bank Center, Suite 1401

Los Angeles, CA 90067

Hand Delivery (United States Trustee) Joseph McMahon, Esquire Offce of the United States Trustee J. Caleb Boggs Federal Building 844 North King Street, Suite 2207
Lockbox 35

919 Market Street, P.O. Box 1070 Wilmington, DE 19899

Hand Delivery (Counsel for Westchester Fire Insurance Company and Noble Energy Inc.) Tobey M. Daluz, Esquire Joshua E. Zugerman, Esquire Ballard Spahr Andrews & Ingersoll, LLP

Wilmington, DE 19801
Hand Delivery (Copy Service)
Parcels, Inc.

Vito i. DiMaio 230 N. Market Street Wilmington, DE 19801

9l9N. Market Street, iih Floor

Wilmington, DE 19801

Hand Delivery (Counsel for Oxy Long Beach Inc.) David L. Finger, Esquire
Finder, Slanina Liebesman, LLC

One Commerce Center

1201 N. Orange St., 7th Floor

Wilmington, DE 19801
Hand Delivery
(Official Committee of

Hand Delivery (Counsel for Ammadon Limited and Catherwood Limited) Mark E. Felger, Esquire Cozen 0' Connor 1201 N. Market Street, Suite 1400 Wilniington, DE 19801 Hand Delivery (Counsel for Forest Oil Corporation)
Rob~rt J. Dehney, Esquire

Unsecured

Creditors) David B. Stratton, Esquire James C. Carignan, Esquire Pepper Hamilton LLP
Hercules Plaza, Suite 1500

Curtis S. Miler, Esquire

Morris Nichols Arsht & Tunnell LLP 1201 N. Market Street

Wilmington, DE 19899

1313 Market Street Wilmington, DE 19899

First Class Mail

(United States Attorney General) Eric H. Holder, Jr. Office of the Attorney General U.S. Department of Justice 950 Pennsylvania Avenue, N.W. Washington, DC 20530-0002

Hand Delivery (Counsel for Marathon Oil Company) Kevin J. Mangan, Esquire Womble Carlyle Sandridge & Rice, PLLC 222 Delaware Avenue, Suite 1501 Wilmington, DE 19801 Hand Delivery (Counsel for Cook Inlet Region, Inc.) Eric Lopez Schnabel, Esquire Dorsey & Whitney (Delaware) LLP
i 105 North Market Street, Suite 16th Floor

First Class Mail

Secretary of State Division of Corporations Franchise Tax P.O. Box 7040 Dover, DE 19903

Wilmington, DE 19801

First Class Mail

Hand Delivery (Counsel for Area Energy LLC) Norman L. Pernick, Esquire Karen M. McKinley, Esquire Cole, Schotz, Meisel, Forman & Leonard, P.A. 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801

Secretary of Treasury P.O. Box 7040 Dover, DE 19903

First Class Mail

Secretary of Treasury 15th & Pennsylvania Avenue, N.W. Washington, DC 20220

First Class Mail

Attn: Insolvency

First Class Mail

Chevron Oil Company
Attn: Steven Lastraps

District Director Internal Revenue Service 31 Hopkins Plaza, Room 1150 Baltimore, MD 21201

3800 Centerpoint Drive, Suite 100 Anchorage, AK 99503

First Class Mail

First Class Mail

Internal Revenue Service P.O. Box 21126 Philadelphia, PAl 9 114-0326

California Franchise Tax Board

Banptcy, BE MSA 345

P.O. Box 2952 Sacramento, CA 95812-2952

First Class Mail

Attn: Insolvency Internal Revenue Service
1352 Marrows Road, 2nd Floor
Newark, DE 19711-5445

First Class Mail

Aera Energy LLC
10000 Ming A venue

Bakersfield, CA 9331 1 - 1 164

First Class Mail

First Class Mail

Mark Schonfeld, Esq. Regional Director Securities & Exchange Commission New York Regional Office 3 World Financial Center, Suite 400 New York, NY 10281-1022

SWEPI LP

P.O. Box 576 Houston, TX 77002-0576

First Class Mail

Noble Energy, Inc.
100 Glenborough, Suite 100

Houston, TX 77067

First Class Mail

Michael A. Berman, Esq. Securities & Exchange Commission Office of General Counsel-Bankptcy 100 F Street, N.E. Washington, DC 20549

First Class Mail

(Counsel to Silver Point Finance) Seth Jacobs, Esquire Anna Meresidis, Esquire Skadden, Arps, Slate, Meagher & Flom, LLP 155 N. Wacker Drive, Suite 2700 Chicago, IL 60606- 1720

First Class Mail

Matthew Berr, Esquire

Office of General Counsel Federal Communications Commission

445 iih Street, S.W.

First Class Mail (Counsel to Goldman Sachs and lAron &

Company) J effr~y Sabin, Esquire Steven Wilamowsky, Esquire Scott K. Seamon, Esquire Bingham McCutchen LLP
399 Park Avenue

Washington, DC 20554

First Class Mail

POLLARD WIRELINE P.O. Box 1360
Kenai, AK 9961 1

New York, NY 10022

First Class Mail

(Counsel to Goldman Sachs and J.Aron & Company) Amy Kyle Bingham McCutchen (Boston) One Federal Street Boston, MA 01221 -i 726

First Class Mail (Counsel to United States Deparment of

Interior, including the Minerals
Management Service)

E. Kathleen Shahan, Esquire U.S. Department of Justice 1100 L Street, NW Washington, D.C. 20005

First Class Mail

Linda Lautigar

First Class Mail

(Counsel for Westchester Fire Insurance Company) Robert McL. Boote, Esquire Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor

Bankptcy Coordinator
MMS / Denver Federal Center POBox 25165 Mail Stop 370B2 Denver, CO 80225

Philadelphia, PAl 9103

First Class Mail

Kristina Engelbert RDI Royalty Distributors, Inc. PO Box 24116 Tempe, AZ 85285

First Class Mail

(Counsel for Rosecrans Energy, Ltd. And Sher:in D. Y oelin) John J. Harris, Esquire Rachel M. Feiertag, Esquire Meyers, Nave, Riback, Silver & Wilson 333 South Grand Avenue, Suite 1670 Los Angeles, CA 90071

First Class Mail

MTGLQ Investors, L.P. 85 Broad Street New York, New York 10004

First Class Mail

First Class Mail

Goldman Sachs E&P Capital Attn: Matthew C. Tarver 1000 Louisiana, Suite 550 Houston, Texas 77002

(Counsel for Oxy Long Beach Inc.) Richard M. Kremen, Esquire

Jodie E. Buchman, Esquire

DLA Piper LLP (US)

6225 Smith Avenue

Baltimore, MD 21209

First Class Mail

SPCP Group, L.L.C.
Two Greenwich Plaza, 1 st Floor

First Class Mail

(Counsel for Noble Energy Inc.) Rhett G. Campbell, Esquire Mitchell E. Ayer, Esquire Thompson & Knight LLP 333 Clay Street, Suite 3300 Houston, TX 770022

Greenwich, CT 06830

First Class Mail

Seth E. Jacobson, Esquire

L. Byron Vance III, Esquire Skadden, Arps, Slate, Meagher & Flom LLP 155 N. Wacker Drive, Suite 2700
Chicago, IL 60606- 1720

First Class Mail

(Official Committee of

First Class Mail

Unsecured
(Counsel for DCFS Trust subservicer for DCFS Trust) Martin A. Mooney, Esquire Deily, Mooney & Glastetter, LLP 8 Thurlow Terrace Albany, NY 12203

Creditors) Francis J. Lawall, Esquire Pepper Hamilton LLP 3000 Two Logan Square Eighteenth & Arch Streets

Philadelphia, PAl 9103

First Class Mail

First Class Mail

(Official Committee of

Unsecured

Creditors) Filiberto Agusti, Esquire Steven Reed, Esquire Joshua Taylor, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue NW Washington, DC 20036

(Counsel for Aera Energy LLC) Steven E. Rich, Esquire Mayer Brown LLP
350 South Grand Avenue, 25th Floor

Los Angeles, CA 90071

First Class Mail

(Claims representative for the County of Kern)

Attn: Banptcy Division

First Class Mail
(Official Committee of

Unsecured

Creditors) Robbin Itkin, Esquire Katherine Piper, Esquire Kelly Frazier, Esquire Steptoe & Johnson LLP
2121 Avenue of

c/o Linda Delgado P.O. Box 579 Bakersfield, CA 93302

First Class Mail

Aurora Gas LLC 6051 North Course Drive, Suite 200 Houston, TX 77043

the Stars, 28th Floor

Los Angeles, CA 90067

First Class Mail First Class Mail

(Counsel for Cook Inlet Region, Inc.)
Michael R. Mils, Esquire

Dorsey & Whitney LLP

1031 W. 4th Ave., Suite 600

Anchorage, AK 99501

First Class Mail

(Counsel for the State of Alaska) Lorenzo Marinuzzi, Esquire Morrison & Foerster LLP
1290 Avenue of

(Counsel for Union Oil Company of California) Richard L. Epling, Esquire David A. Crichlow, Esquire Roger Elder, Esquire Pilsbury Winthrop Shaw Pittman LLP 1540 Broadway New York, NY 10036

the Americas

Firs,t Class Mail (Counsel for Minerals Management Service) DeAnn L. Owen, Esquire
Office of

New York, NY 10104

the Solicitor, Rocky Mountain

Region
755 Parfet Street, Suite 151

Lakewood, CO 80215

First Class Mail

(Counsel for Ammadon Limited and Catherwood Limited) Philip M. Abelson, Esquire Dewey & Leboeuf LLP
1301 Avenue of

the Americas

New York, NY 10019

First Class Mail

(Counsel for Forest Oil Corporation) Steven M. Abramowitz, Esquire Ronald L. Oran, Esquire Vinson & Elkins
666 Fifth Avenue, 26th Floor

New York, NY 10103

FOREIGN First Class Mail

TSX Kerry D. Krochak, RA., LL.B. Manager, Listed Issuer Services Toronto Stock Exchange 300 Fifth Avenue SA, 10th Floor Calgary, AB T2P 3C4

FOREIGN First Class Mail

(Transfer Agents)
Bernadette Vilarica

Relationship Manager, Client Services

Computershare Investor Services Inc. 510 Burrard Street, 3 rd Floor

Vancouver, BC V6C 3B9