THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Exploration Company of Delaware, Inc. (The) (TXCO)

4/12/2006 Proxy Information

Effective in March 2006, we hired Mr. M. Frank Russell as Vice President and General Counsel. Mr. Russell had been Managing Partner with Barton, Schneider, Russell & East, L.L.P. ("BSRE"). Mr. Russell, while at BSRE, served as our lead outside counsel. In 2005, we paid BSRE over $248,000 in legal fees, of which approximately $166,000 was allocated by BSRE to Mr. Russell. Additionally, in the first two months of 2006 BSRE allocated over $25,000 of the fees we paid them to Mr. Russell out of approximately $33,000 we paid BSRE.