MARINER ENERGY INC
EXHIBIT 10.39
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>16
<FILENAME>exhibit1039.htm
<DESCRIPTION>EXHIBIT 10.39
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.39 - Services Agreement Between Mariner Energy, Inc. and Enron North America Corp.</TITLE>
</HEAD>
<BODY>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>CORPORATE
SERVICES AGREEMENT</U></FONT></H1>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS CORPORATE SERVICES AGREEMENT ("Agreement"),  by and between <B>Mariner
Energy,  Inc.   </B>("Company"),   and  <B>Enron  North  America  Corp.,  </B>a  Delaware
corporation ("Enron"), is effective as of August 23, 2001.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Enron and Company
desire by their execution of this Agreement to evidence their understanding
about Enron&#146;s providing certain Services (as defined below) to Company.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in
consideration of the foregoing premises, and the mutual promises and covenants
contained herein, the parties agree as follows: </P>

<P><B>SECTION l.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SERVICES PROVIDED BY ENRON</B></P>

<P>In exchange for the
compensation described herein, Enron agrees to provide or cause its affiliates
to provide Company and/or its subsidiaries certain corporate, administrative,
and human resources services (the &#147;Services&#148;) to the extent such
Services may be reasonably requested by Company from time to time. The potential
Services provided under this Agreement include those described below.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Services</U></B></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=RIGHT><I>(i)</I></TD>
<TD WIDTH=4% ALIGN=RIGHT></TD>
<TD WIDTH=86%><I>Legal Services.</I>  Enron in its discretion may, from time to time, provide Company legal services.
<BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=RIGHT><I>(ii)</I></TD>
<TD WIDTH=4% ALIGN=RIGHT></TD>
<TD WIDTH=86%><I>Structuring and Technical Support Services. </I>Enron in its discretion may,
from time to time, provide technical support to review and/or develop capital
and maintenance projects, including assistance in the structuring and
development of such projects.<BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=RIGHT><I>(iii)</I></TD>
<TD WIDTH=4% ALIGN=RIGHT></TD>
<TD WIDTH=86%><I>Strategic Consulting. </I>Enron in its discretion may, from time to time,
provide consulting services on strategies, financial matters, and other areas in
which Company may request consulting services.<BR><BR></TD>
</TR>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=RIGHT><I>(iv)</I></TD>
<TD WIDTH=4% ALIGN=RIGHT></TD>
<TD WIDTH=86%><I>Human Resources Consulting Services. </I>Enron in its discretion may, from
time to time, provide human resources consulting services, including advice as
to compensation and benefits. All personnel decisions, such as hiring,
termination, and compensation, shall be made by Company management. Company and
Enron are not joint employers.</TD>
</TR>
</TABLE>
<BR>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Service Providers</U></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At Enron&#146;s election,
and with Company&#146;s prior consent, Enron may cause a third party contractor
to provide the Services Company requests under this Agreement.</P>
<P><B>SECTION 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PERFORMANCE OF SERVICES</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Nature/Quality of
Services</U></B>.Enron shall perform the Services in a good and
workmanlike manner, and the nature and quality of the Services provided by Enron
shall be similar in quality to comparable services provided by Enron to its
affiliates.<BR><BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Provision of
Information</U></B>. Any data, information, equipment, or general directions
necessary for Enron to perform the Services shall be submitted in a timely
manner.<BR><BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Laws and
Regulations</U></B>.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Company represents and agrees that it will use the Services provided hereunder
only in accordance with all applicable federal, state, and local laws and
regulations. Enron reserves the right to take all actions, including termination
of any particular Service, that it reasonably believes to be necessary to assure
compliance with applicable laws and regulations. Enron shall provide written
notice if any such actions will affect the Services.<BR><BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The parties certify that they will comply with all applicable laws, statutes,
and regulations relating to providing the Services, including but not limited
to, the Foreign Corrupt Practices Act, environmental laws, employment laws,
safety regulations, securities laws and regulations, antitrust laws,
intellectual property laws, and any other applicable laws, statutes, or</P>

<P><B>SECTION 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
COMPENSATION</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>
<B>Price of the Services</B></U>. Company, in consideration for the Services
provided by Enron to Company, agrees to pay Enron for the Services provided by
the following individuals on the following basis:</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scott D. Josey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$25,000.00 month</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allan D. Keel&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$20,000.00 month</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent Company
requests, and Enron provides, other Services, Company agrees to reimburse Enron
for the actual Services provided, and to the extent such Services involve the
use of Enron personnel, Company shall pay the fully burdened cost (i.e.
inclusive of taxes, benefits, and the like) of that personnel for the time
actually committed to providing Services.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Third Partv
Expenses</U></B>. Company agrees to reimburse Enron for the actual cost,
without any premium or margin to Enron, of any goods or materials Enron
purchases for Company in the course and scope of performing the Services, and
all expenses actually incurred by Enron for outsourced Services or other goods
or services provided by third party providers.</P>

<P><B>SECTION 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PAYMENT OF CHARGES AND REIMBURSEMENTS</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Payment for
Services</U></B>. On or before the 30th day of April 2002, Enron shall
submit an invoice for the Services provided during the period of August 23, 2001
through March 31, 2002. Enron shall thereafter provide invoices to Mariner for
Services provided hereunder on a monthly basis. Company shall remit payment of
all invoices to Enron within 5 days of the date such invoice is received.</P>

<P><B>SECTION 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
RECORDS AND AUDITS</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For at least two years after
the termination of any Service or of this Agreement, as well as for the time
period required by applicable laws, each party shall maintain records and other
evidence sufficient to accurately and properly reflect the performance of the
Services and the amounts due in accordance with this Agreement. Each party or
its representatives shall have access at all reasonable times to such records
for the purpose of auditing and verifying the accuracy of the invoices. Any
audits performed by or on behalf of a party shall be at that party&#146;s sole
cost and expense. Each party shall have the right to audit the other
party&#146;s books relating to the provision of the Services for a period of two
years after the termination of this Agreement, except in those circumstances
where contracts with third parties limit the audit period to less than two
years.</P>

<P><B>SECTION 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
TERMINATION; CANCELLATION OR REDUCTION OF SERVICES</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U><B>Termination of Agreement</B></U>. Either party may terminate this Agreement
for any reason whatsoever by giving the other party at least 30 days&#146; prior
written notice to that effect. Each party shall pay for all charges incurred up
to the date of termination.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Cancellation or
Reduction of Services</U></B>. At any time, either party may terminate or
reduce the level of any one or more of the specific Services by giving at least
30 days&#146; prior written notice. The termination of any one or more of the
specific Services shall have no impact on a party&#146;s obligation to continue
to provide any other Service(s).</P>

<P><B>SECTION 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
INDEMNIFICATION</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SUBJECT TO SECTION 8.10
BELOW, COMPANY AGREES TO PROTECT, DEFEND, INDEMNIFY, AND HOLD HARMLESS ENRON AND
ITS EMPLOYEES, OFFICERS, DIRECTORS, AGENTS, AND REPRESENTATIVES, AT
COMPANY&#146;S COST AND EXPENSE, FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS OR
CAUSES OF ACTION (COLLECTIVELY, &#147;CLAIMS&#148;) ARISING OUT OF THE SERVICES
PROVIDED UNDER THIS AGREEMENT, EXCEPT FOR (A) CLAIMS THAT ARISE AS A RESULTOF
ENRON&#146;S FAILURE TO COMPLY WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT,
AND (B) CLAIMS THAT ARISE AS A RESULT OF THE NEGLIGENCE OR WILLFUL MISCONDUCT OF
ENRON. COMPANY WILL REIMBURSE ENRON FOR ANY AND ALL COSTS, LIABILITIES,
JUDGMENTS, AND EXPENSES (INCLUDING ATTORNEYS&#146; FEES) REASONABLY INCURRED BY
ENRON IN CONNECTION WITH THE INVESTIGATING, PREPARING FOR, AND DEFENDING AGAINST
ANY SUCH CLAIM, DEMAND, OR CAUSE OF ACTION, WHETHER OR NOT RESULTING IN ANY
LIABILITY, AND ANY AMOUNT PAID IN SETTLEMENT OF ANY LITIGATION, COMMENCED, OR
THREATENED, OR OF ANY SUCH CLAIM, DEMAND, OR CAUSE OF ACTION IF SUCH SETTLEMENT
IS EFFECTED WITH THE WRITTEN CONSENT OF COMPANY.</B></P>

<P><B>SECTION 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
MISCELLANEOUS</B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><U>Assignment</U></B>. This Agreement shall be binding upon and inure
to the benefit of Enron and any other person, association, or entity that may
acquire or succeed to all or substantially all of the business or assets of
Enron. Enron may assign this Agreement to an affiliate or other entity. Company
shall not assign this Agreement without Enron&#146;s written consent.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Governing Law</U></B>. This  Agreement  shall be governed by and construed
in accordance with the laws of the State of Texas.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Notices</B></U>. All notices under this Agreement shall be in writing and
shall be sent by hand delivery, telecopy, or certified mail, return receipt
requested as follows:</P>

<BR><BR>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>If to Enron:</B><BR><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enron North America Corp.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1400 Smith Street<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Houston, Texas 77002<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(713) 646-3491 (fax)<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Secretary
<BR><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>If to Mariner Energy, Inc.:</B>
<BR><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;580 WestLake Park Blvd., Suite 1300<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Houston, Texas 77079<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(281) 584-5515 (fax)<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Corporate Secretary</P>


<P>If notice is given by hand
delivery or telecopy, such notice shall be deemed received on the date of
delivery or telecopy. Notice by certified mail shall be deemed received on the
tenth day after mailing. Either party may change its address by giving the other
party written notice of the new address in the manner set forth above.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><U>Severabilitv</U></B>. In the event any portion of this Agreement
shall be found by a court of competent jurisdiction to be unenforceable, that
portion of this Agreement will be null and void, and the remainder of this
Agreement will be binding on the parties as if the unenforceable provision never
had been contained herein.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><U>Waiver</U></B>. No waiver by either party of any term or breach of
this Agreement shall be construed as a waiver of any other term or breach hereof
or of the same or a similar term or breach on any other occasion.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><B>Amendment/Entire
Agreement</B></U>. No modification or amendment of this Agreement shall be
binding upon either party unless in writing and signed by the parties hereto.
This Agreement constitutes the entire agreement between the parties pertaining
to the subject matter hereof; and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the
parties hereto regarding the subject matter hereof.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><U>Counterparts</U></B>. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Third Party
Beneficiary</U></B>. The provisions of this Agreement are enforceable
solely by the parties to this Agreement, and no other shall have the right to
enforce any provision of this Agreement or to compel any party to this Agreement
to comply with the terms of this Agreement.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Limitation of
Liability</U></B>. NEITHER ENRON OR COMPANY SHALL BE LIABLE TO THE OTHER
FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE LOSSES OR DAMAGES,
INCLUDING LOST PROFITS AND GOODWILL. THE FOREGOING LIMITATION OF LIABILITY WILL
NOT APPLY WITH RESPECT TO (A) THE PAYMENT OF COSTS, DAMAGES, EXPENSES, AND
ATTORNEY&#146;S FEES PAYABLE BY EITHER PARTY, OR (B) CLAIMS ARISING OUT OF
ENRON&#146;S OR COMPANY&#146;S ACTS OF GROSS NEGLIGENCE OR INTENTIONAL
MISCONDUCT.</P>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><U>Arbitration</U></B>. Any claim or dispute arising out of or relating to
this Agreement or the performance of the Services shall be submitted to binding
arbitration. Arbitration shall be conducted in Houston, Texas, under the
Commercial Arbitration Rules of the American Arbitration Association. The
arbitrators&#146; decision may include any remedy contemplated by this
Agreement, but the arbitrator shall not have the authority to award treble,
exemplary, or punitive damages.

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the
parties have executed this Agreement by signing below.</P>

<TABLE WIDTH=100% BORDER=0>
<TR><TD ALIGN=LEFT WIDTH=40%><B>MARINER ENERGY, INC.<BR><BR></B></TD><TD WIDTH=10%></TD><TD ALIGN=LEFT WIDTH=40%><B>ENRON NORTH AMERICA CORP.</B></TD></TR>
</TABLE>
<TABLE WIDTH=100% BORDER=0>
<TR><TD ALIGN=LEFT WIDTH=10%>By:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD><TD WIDTH=10%></TD><TD ALIGN=LEFT WIDTH=10%>By:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD></TR>
<TR><TD ALIGN=LEFT WIDTH=10%>Name:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD><TD WIDTH=10%></TD><TD ALIGN=LEFT WIDTH=10%>Name:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD></TR>
<TR><TD ALIGN=LEFT WIDTH=10%>Title:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD><TD WIDTH=10%></TD><TD ALIGN=LEFT WIDTH=10%>Title:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD></TR>
<TR><TD ALIGN=LEFT WIDTH=10%>Date:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD><TD WIDTH=10%></TD><TD ALIGN=LEFT WIDTH=10%>Date:</TD><TD ALIGN=LEFT WIDTH=30%><HR SIZE=1 NOSHADE></TD></TR>
</TABLE>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
