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Page 1: IRGINIA · 2016-08-22 · book0617 page0074 (' 'irginiainstrument prepared by gas and oil board order recorded under code of virginia section 46.1.381.28 virginia: before the virginia
Page 2: IRGINIA · 2016-08-22 · book0617 page0074 (' 'irginiainstrument prepared by gas and oil board order recorded under code of virginia section 46.1.381.28 virginia: before the virginia
Page 3: IRGINIA · 2016-08-22 · book0617 page0074 (' 'irginiainstrument prepared by gas and oil board order recorded under code of virginia section 46.1.381.28 virginia: before the virginia

BOOK0617 PAGE0074

INSTRUMENT PREPARED BY(' 'IRGINIA GAS AND OIL BOARDORDER RECORDED UNDER CODEOF VIRGINIA SECTION 46.1.381.28

VIRGINIA:BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: EOG Resources, Inc.

RELIEF SOUGHT: PURSUANT TO VA. CODE f 46.1 381.21,(1) POOLING OF INTERESTS IN A 180.00ACRE DRILLING UNIT DESCRIBED ONVISIT A ATTACHED HERETO AND BEINGUNIT PK L 28 LOCATED IN THE PILGRIMS~6AS FIELD (HEREIN "SUBJECTDRILLING UNIT" ) AND SERVED BYPLUM ~WELL AM FOR THEPRODUCTION OF GAS OTHER THANCOALBED METHANE GAS FROM SUBJECTFORMATIONS (herein referred to as"Conventional Gas" or "Gas")'nd(2) DESIGNATION OF THE APPLICANTAS THE UNIT OPERATOR FOR THE SUBJECTDRILLING UNIT

LEGAL DESCRIPTION:

UNIT PK L-23PILG~ KNOB GAS FIELDPLUM CREEK WELL g4-06 TO BE DRILLED ON THELOCATION DEPICTED ON EXHIBIT A ATTACHED HERETOPlum Creek Timberlands, L.P.Plum Creek Tract No. 7Garden DistrictKeen Mountain Quadrangle~~~,Virginia(the "Subject Lands" are more particularlydescribed on EahSit A attached heretoand made a part hereof)

REPORT OF THE BOARD

FINDINGS AND ORDER

VIRGINIA GASAND OILBOARD

DOCKET No.VGOB-05-0315-1422

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3IIN06t7PkSE0075

1. Hearixur Date and Place This matter came on for hearing before the VirginiaGas and Oil Board (hereafter "Board") at 9:00 a.m. on March 15, 2005 at the SouthwestVirginia Higher Education Center on the campus of Virginia Highlands CommunityCollege, Room 240, Abingdon, Virginia.

2. Anuearsnces: ~E.Scott appeared for the Applicant and Sharon M. B.Pigeon, Assistant Attorney General, was present to advise the Board.

3. Jurisdiction and Notice'ursuant to Va. Code 5 46.1-361.1et seq., the Boardfinds that it has jurisdiction over the subject matter. Based upon the evidence presentedby Applicant, the Board also finds that the Applicant has (1) exercised due diligence inconducting a meaningful search of reasonably available sources to determine the identityand whereabouts of each gas and oil owner, coal owner, or mineral owner having aninterest in Subject Drilling Unit underlying and comprising the Subject Lands'2) hasrepresented to the Board that it has given notice to those parties (hereafter sometimes"person(s)" whether referring to individuals, corporations, partnerships, associations,companies, businesses, trusts, joint ventures or other legal entities) entitled by Va. Code $46.1-361.19to notice of the Application filed herein and (3) that the persons set forth intheir Application and Notice of Hearing have been identified by Applicant through its duediligence as Owners or Claimants of Conventional Gas interests underlying SubjectDrilling Unit, including those set out in ExhQrit B.3who have not heretofore leased, sold orvoluntarily agreed with the Applicant to pool their Gas interests in Subject Drilling Unit.Confhcting Gas Owners/Claimants in Subject Drilling Unit are listed on Eahibk E.Further, the Board has caused notice of this hearing to be published as required by Va.Code 3 46.1.881.19.B.Whereupon, the Board hereby finds that the notices given hereinsatudy all statutory requirements, Board rule requirements, and the minimum standards ofdue process.

4. Amendments'. None.

5. Dismissals. 'None.

6. Relief Reauested: Applicant requests that pursuant to Va. Code $ 46.1.861.21, (1) the Board pool the rights, interests, and estates in and to the Conventional Gasof the known and unknown persons listed in the attached Exhibit B.8, and that of theirknown and unknown heirs, executors, administrators, devisees, trustees, assigns andsuccessors, both inunediate and remote, for the drilling and operation, includingproduction, of Conventional Gas from the Subject Drilling Unit established for SubjectFormations underlying and comprised of the Subject Lands, (hereafter sometimescollectively identified and referred to as "Well Development and/or Operation in the SubjectDrilling Unit" ) and, (2) that the Board designate EOG Resources, Inc. as Unit Operator.

7. Relief Granted: The requested relief in this cause shall be and hereby isgranted.

7.1 The Board hereby: (1) pursuant to Va. Code 5 46.1-361.21C 3, designatesEOG Resources, Inc. (hereafter "Unit Operator" ) as the Operator authorized todrill and operate the Phun Creek Well 84~ in the Subject Drilling Unit at the

2

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IIO6 I 7 MEOOV 6

location depicted on the plat attached hereto as Exhibit A to produce ConventionalGas from Subject Formations, subject to the permit provisions contained in 3 45.1.361.27et seq., Code of Virginia, 1950 as amended, to f 4 VAC 25-150 et seq., Gasand Oil Regulations and to $ 4 VAC 25-160 et seq., Virginia Gas and Oil BoardRegulations, all as amended &om time to time and (2) pursuant to Va. Code 54S.1-861.21A, the rights, interests, and estates in and to the Conventional Gas inSubject Idling Unit including those of the known and unknown persons listed onw ~ R.8, attached hereto and made a part hereof, and their known andunknown heirs, executors, administrators, devisees, trustees, successors, andassigns, both immediate and remote, be and hereby are pooled in the SubjectFormations in the Subject Drilling Unit underlying and comprised of the SubjectLands. Pursuant to Va. Code 5 4S.1-361.20,the Board established drilling unitsfor the Pilgrims Knob Gas Field by order entered June 7, 1991.

8. Election and Election Period: In the event any Gas owner named in theApplication and Notice of Hearing has not heretofore reached a voluntary agreement toshare in the operation of the well to be located in Subject Drilling Unit at a rate of paymentmutually agreed to by said Gas owner and the Operator, then, such person may elect onb ofthe options set forth in Paragraph 9 below and must give written notice of his election ofthe option selected under Paragraph 9 herein to the designated Unit Operator at theaddress shown beIow within thirty (30) days from the date of receipt of a copy of this Order.A timely election shall be deemed to have been made if, on or before the last day of said 30.day period, such electing person had delivered his written election to the designated UnitOperator at the address shown below or has duly postmarked and placed his writtenelection in first class United States mail, postage prepaid, addressed to the Unit Operatorat the address shown below.

9.1 Ontion 1 —To Particinate In The Develonment and Oneration of theDrillins Unit: Any Gas Owner or Claunant named in Rxhkit 8 8 whohas not reached a voluntary agreement with the Operator may elect toparticipate in the Well Development and Operation on the SubjectDrilling Unit (hereafter "Participating Operator" ) by agreeing to paythe estimate of such Participating Operator's proportionate part ofthe actual and reasonable costs, including a reasonable supervisionfee, of the Well Development and Operation, and more particularly setforth in Virginia Gas and Oil Board Regulation 4 VAC 25-160-100(herein "Completed-for Production Costs"). Further, a ParticipatingOperator agrees to pay the estimate of such Participating Operator'sproportionate part of the Estimated, Completed-for Production Costsas set forth below to the Unit Operator within forty-five (45) days fromthe later of the date of mailing or the date of recording of this Order.The estimated Completed-for Production Costs for the Subject DrillingUnit are as follows:

Estimated, Completed-for Production Costs: 8868.700.00

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s0NOSI7NRG077

Any gas owner and/or claimants named in Exhibit B 8, who elects thisoption (Option 1) understands and agrees that their initial paymentunder this option is for their proportionate share of the Applicant'sestimate of actual costs and expenses. It is also understood by allpersons electing this option that they are agreeing to pay theirproportionate share of the actual costs and expenses as determined bythe operator named in this Board Order.

A Participating Operator's proportionate cost hereunder shall be theresult obtained by multiplying the Participating Operator's "Percent ofUnit" times the Completed-forProduction Costs set forth above.Provided. however, that in the event a Participating Operator elects toparticipate and fails or refuses to pay the estimate of his proportionatepart of the Completed-for Production Costs as set forth above, allwithin the time set forth herein and in the manner prescribed inParagraph 8 of this Order, then such Participating Operator shall bedeemed to have elected not to participate and to have electedcompensation in lieu of participation pursuant to Paragraph 9.2herein.

9.2 Ontion 2 —To Receive A Cash Bonus Consideration. In heu ofparticipating in the Well Development and Operation of SubjectDrilling Unit under Paragraph 9.1above, any Gas Owner or Claimantnamed in Bxbibkt B 8 in the unit who has not reached a voluntaryagreement with the Operator may elect to accept a cash bonusconsideration of 5Q}Q per net mineral acre owned by such person,commencing upon entry of this Order and continuing annually untilcommencement of production from Subject Drilling Unit, andthereafter a royalty of 1/8th of 8/Sths [twelve and one-half percent(12.6%)]of the net proceeds received by the Unit Operator for the saleof the Gas produced from any Well Development and Operationcovered by this Order multiplied by the Gas owner's percentageInterest Within Unit as set forth in the Application and Notice ofHearing (for purposes of this Order, net proceeds shall be actualproceeds received less post-production costs incurred downstream ofthe wellhead, including, but not limited to, gathering, compression,treating, transportation, and marketing costs, whether performed byUnit Operator or a third person) as fair, reasonable and equitablecompensation to be paid to said Gas owner. The initial cash bonusshall become due and owing when so elected and shall be tendered,paid or escrowed within one hundred twenty (120) days of reoording ofthis Order. Thereafter, annual cash bonuses, if any, shall become dueand owing on each anniversary of the date of recording of this order inthe event production from Subject Drilling Unit has not theretoforecommenced, and once due, shaH be tendered, paid or escrowed withinsixty (60) days of said anniversary date. Once the initial cash bonusand the annual cash bonuses, if any, are so paid or escrowed, saidpayment(s) shall be satisfaction in full for the right, interests, and

4

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89IN06 I 7 l%8E0078

claims of such electing Gas owner in and to the Gas produced fromSubject Formation in the Subject Lands, except, however, for the 1/8throyalties due hereunder.

Subject to a final legal determination of ownership, the election madeunder this Paragraph 9.2, when so made, shall be satisfaction in fullfor the right, interests, and claims of such electing person in any WellDevelopment and Operation covered hereby and such electiing personshall be deemed to and hereby does lease and assign its right,interests, and claims in and to the Gas produced from SubjectFormation in the Subject Drilling Unit to the Applicant.

9.3 Ontion 3- To Share In The Develooment And Ooeration As A Non-Partirinatina Person On A Carried Basis And To ReceiveConsideration In Lieu Of Cash: In lieu of participating in the WellDevelopment and Operation of Subject Drilling Unit under Paragraph9.1 above and in lieu of receiving a cash bonus consideration underParagraph 9.2 above, any Gas Owner or Cl~i~~nt named in Mdhk58 hereto who does not reach a voluntary agreement with theOperator may elect to share in the Well Development and Operation ofSubject Drilling Unit on a carried basis ( as a "Carried WeH Opetumr")so that the proportionate part of the Completed-for Production Costshereby allocable to such Carried Well Operator's interest is chargedagainst such carried Well Operator's share of production from SubjectDrilling Unit. Such Carried Well Operator's rights, interests, andclaims in and to the Gas in Subject Ihiiling Unit shall be deemed andhereby are assigned to the Unit Operator until the proceeds from thesale of such Carried Well Operator's share of production fiom SubjectDrilling Unit (exclusive of any royalty, excess or ovemding royalty, orother non-operating or non cost-bearing burden reserved in any lease,assignment thereof or agreement relating thereto covering suchinterest) equals three hundred percent (300%) for a leased interest ortwo hundred percent (200%) for an unleased interest (whichever isapplicable) of such Carried Well Operator's share of the Completed-for Production Costs allocable to the interest of such Carried WellOperator. Any Gas Owner and/or Claimant named in 1S ~B 3 whoelects this option (Option 3) understands and agrees that Completed-for Production Costs are the Operator's actual costs for welldevelopment and operation. When the Unit Operator recoups andrecovers from such Carried Well Operator's assigned interest theamounts provided for above, then, the assigned interest of suchCarried Well Operator shall automatically revert back to such CarriedWell Operator, and from and after such reversion, such Carried WellOperator shall be treated as if it had participated initially underParagraph 9.1 abovei and thereafter, such participating person shallbe charged with and shall pay his proportionate part of all furthercosts of such well development.

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aaax06 l'7 PA%0~~~

Subject to final legal determination of ownership, the election madeunder this Paragraph 9.3, when so made, shall be satisfaction in fullfor the right, interests, and claims of such electing person in any welldevelopment and operation covered hereby and such electing personshall be deemed to have and hereby does assign his right, interests,and claims in and to the Gas produced from Subject Formation in theSubject Drilling Unit to the Unit Operator for the period of timeduring which his interest is carried as above provided prior to itsreversion back to such electing person.

10. Failure to Pronerlv Elect: In the event a person named in Rxhfint B 8 heretodoes not reach a voluntary agreement with the Applicant and fails to do so within the time,in the manner, and in accordance with the terms of this Order one of the alternatives setforth in Paragraph 9 above for which his interest qualifies, then such person shall bedeemed to have elected not to participate in the proposed Well Development and Operationin Subject Drilling Unit and shall be deemed, subject to any final legal determination ofownership, to have elected to accept as satisfaction in full for such person's right, interests,and claims in and to the Gas the consideration provided in Paragraph 9.2 above for whichits interest qualifies and shall be deemed to have leased and/or assigned his right, interests,and claims in and to Gas in the Subject Drilling Unit to the Unit Operator. Persons whofail to properly elect shall be deemed to have accepted the compensation and terms seg forthherein at Paragraph 92 in sa~n in full for the right, interests, and claims of suchperson in and to the Gas produced from Subject Formation underlying Subject Lands.

11. Da6sult Rv Particinatina Person: In the event a person named in Mribit B 8elects to participate under Paragraph 9.1,but fails or refuses to pay, to secure the paymentor to make an arrangement with the Unit Operator for the payment of such person'proportionate part of the Estimated Completed. for-Production costs as set forth herein, allwithin the time and in the manner as prescribed in this Order, then such person shall bedeemed to have withdrawn his election to participate and shall be deemed to have electedto accept as satisfaction in full for such person's right, interests, and claims in and to theGas the consideration provided in Paragraph 9.2 above for which his interest qualifiesdepending on the excess burdens attached to such interest. Whereupon, any cash bonusconsideration due as a result of such deemed election shall be tendered, paid or escrowed byUnit Operator within one hundred twenty (120) days after the last day on which suchdefaulting person under this Order should have paid his proportionate part of such cost orshould have made satisfactory arrangements for the payment thereof. When such cashbonus consideration is paid or escrowed, it shall be sa~n in full for the right,interests, and clalsM of such person in an to the Gas underlying Subject Drilling Unit in theSubject Lands covered hereby, except, however, for any 1/8th royalties which would becomedue pursuant to Paragraph 9.2 hereof.

12. Assianment of Interest: In the event a person named in Exhibit B 8 is unableto reach a vohmtary agreement to share in the Well Development and Operationcontemplated by this Order at a rate of payment agreed to mutually by said Owner orClaimant and the Applicant, and said person elects or fails to elect to do other thanparticipate under Paragraph 9.1 above in the Well Development and Operation in SubjectDrilling Unit, then such person shall be deemed to have and shall have assigned unto

6

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MIN06I7I%5f0080

Applicant such person's right, interests, and claims in and to said well, in SubjectFormations in Subject Drilling Unit, and other share in and to Gas production to whichsuch person may be entitled by reason of any election or deemed election hereunder inaccordance with the provisions of this Order governing said elections.

13. Unit Ooerator (or Onerator): EOG Resources, Inc., shall be and hereby isdesignated as Unit Operator authorized to drill and operate Phnn Creak WeR 84.05 inSubject Formations in Subject Drilling Unit, all subject to the permit provisions containedin Va. Code $ 45.1-361.27et seq., $ $ 4 VAC 25-150 et seq., Gas and Oil Regulations and $ $4 VAC 25-160et seq., Virginia Gas and Oil Board Regulations, all as amended from time totime, and all ehetions'equired by this Order shall be communicated to Unit Operator inwriting at the address shown below'.

ROQ R~m~ Iuc.Se — —='=i HsNa 1

400 Ss — ——=- RaulavuzzL Suite 800C'~~Mam. PA 15317~ fqRa) 746~~:f7sae~Attn: Pater E.Rhasn

14. Commencement of Qnerations: Unit Operator shall commence or cause tocommence operations for the drilling of the well covered hereby within seven hundred andthirty (730) days from the date of this Order and shall prosecute the same with duediligence. If Unit Operator shall not have so commenced andlor prosecuted the drilling ofthe well, then this Order shall terminate, except for any cash sums becoming payablehereunder'~, unless sooner terminated by Order of the Board, this Order shallexpire at 12:00 P.M. on the date on which the well covered by this Order is permanentlyabandoned and plugged. However, in the event an appeal is taken fmm this Order, thenthe time between the Sling of the Petition for Appeal and the Snal Order of the CircuitCourt shall be excluded in cakulating the two-year period referenced herein.

15. Onerator's Lien Unit Operator, in addition to the other rights aS'ordedhereunder, shall have a lien and a right of set off on the Gas estates, rights, and interestsowned by any person subject hereto who elects to participate under Paragraph 9.1 in theSubject Driihng Unit to the extent that costs incuned in the drilling or operation on theSubject Drilling Unit are a charge against such person's interest. Such liens and right ofset off shall be separable as to each separate person and shall remain liens until the UnitOperator drilling or operating the well covered hereby has been paid in full amounts dueunder the terms of this Order.

16. Escrow Provisions'pplicant has represented to the Board that there areno unknown ancVor unkcatable Gas owners in the Subject Drilling Unit whose interests aresubject to the escrow requirements of Paragraph 16.1iand, the Applicant has representedto the Board that there are no confhcting claimants in Subject Drilling Unit whosepayments are subject to the provisions of Paragraph 16.2 hereof. Therefore, by this Orderand unless and until otherwise ordered by the Board, the Escrow Agent is not required toestablish an interest-bearing escrow account for the Subject Drilling Unit.

7

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MN06 I 7 F008 l

Wachovia BankCorporate Trust PA1328123 South Broad StreetPhiladelphia, PA 19109.1199Attn: Rachel RafFerty

16.1 Escrow Provisions for Unknown or Unlocatable Persons: If any payment ofbonus, royalty payment or other payment due and owing cannot be madebecause the person entitled thereto cannot be located or is untnown, thensuch cash bonus, royalty payment, or other payment shaH not be commingledwith any funds of the Unit Operator and shall, pursuant to Va. Code $ 45.1-361.21.D,be deposited by the Operator into the Escrow Account, commencingwithin one hundred twenty (120) days of recording of this Order, andcontinuing thereafter on a monthly basis with each deposit to be made by adate which is no later than sixty (60) days after the last day of the monthbeing reported and/or for which funds are subject to deposit. Such fundsshall be held for the exclusive use of, and sole benefit of the person entitledthereto until such funds can be paid to such person(s) or until the EscrowAgent relinquished such funds as required by law or pursuant to order of theBoard in accordance with Va. Code $ 45.1-361.21.D.

16.2 Escrow Provisions for Confhctlns Claimants: If any payment of bonus,royalty payment, proceeds in excess of ongoing operational expenses, or otherpayment due and owing under this Order cannot be made because theidentity of the person entitled thereto cannot be made certain due toconfhcting claims of ownership and/or a defect or cloud on the title, then suchcash bonus, royalty payment, proceeds in excess of ongoing operationalexpenms, or other payment, together with Participating Operator'sProportionate Costs paid to Unit Operator pursuant to Paragraph 9.1hereof,if any, (1) shall not be commingled with any funds of the Unit Operator* and(2) shall, pursuant to Va. Code 5 $ 45.1.361.22%.2,45.1-361.22%.3and 45.1-861.22%.4,be deposited by the Operator into the Escrow Account within onehundred twenty (120) days of recording of this Order, and continuingthereafter on a monthly basis with each deposit to be made by a date which isno later than sixty (60) days after the last day of the month being reportedand/or for which funds are subject to deposit. Such funds shaH be held for theexclusive use and sole bene6t of the person entitled thereto until such fundscan be paid to such person(s) or until the Escrow Agent relinquishes suchfunds as required by law or pursuant to Order of the Board.

17. Snecial Finders: The Board speci6caHy and specially 6nds:

17.1 Applicant is EOG Resources, Inc. Applicant is duly authorized and quali6edto transact business in the Commonwealth of

Virginia'7.2

Applicant EOG Resources, Inc. is an operator in the Commonwealth ofVirginia, and has satis6ed the Board's requirements for operations in Virginia~

8

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8llN06 I 7 I9E0082

17.3 Applicant EOG Resources, Inc. claims ownership of Gas leases on88.881111%percent of Subject Drilling Unit and the right to explore for, develop,and produce Gas from same»

17.4 Applicant has proposed the drilling of the Plum Creek Well 84M to a depthof 5,870 feet on the Subject Drilling Unit at the location depicted on Exhibit A todevelop the pool of Gas in Subject Formations, and to complete and operate PlumCreek WeH 84M for the purpose of producing Conventional Gas.

17.5 The estimated production of the life of the proposed Phun Creek Well8446 is880 MMCF.

17.6 With this Application, notice was provided to everyone cI~»m»ng an ownershipinterest relative to the pzoduction of conventional gas in the Subject DrillingUnit. Set forth in Exhibit B 8, is the name and last known address of eachOwner or Claimant identi6ed by the Applicant as Gas owners in Subject DrillingUnit who has not, in writing, leased to the Applicant or the Unit Operator oragreed to voluntarily pool his interests in Subject Drilling Unit for itsdevelopment. Gas interests unleased to the Operator and listed in Exhibit B-8represent 10.4888%86pezcent of Subject Drilling Unit

17.7 Applicant's evidence established that the fair, reasonable, and equitablecompensation to be paid to any person in lieu of the right to participate in theWeHs are those options provided in Paragraph 9

above'7.8

The Subject Drilling Unit does not constitute an unreasonable or arbitraryexercise of Applicant's right to explore for or produce Gas»

17.9 The relief requested and granted is just and reasonable, is supported bysubstantial evidence and will aKozd each person listed and named in Exh8nt B8 hereto the opportunity to recover or receive, without unnecessazy expense,such person's just and fair share of the production jzom Subject Drilling Unit.The granting of the Application and relief requested therein will ensuze to theextent possible the greatest ultimate recovery of Conventional Gas, prevent orassist in pzeventing the various types of waste prohibited by statute and protector assist in protecting the correlative rights of all persons in the subject commonsources of supply in the Subject Lands. Therefore, the Board is entering anOrder granting the relief herein set forth.

18. Mailimz Of Order And Filuuz Qf A%davit: Applicant or its Attorney shall fdean a%davit with the Secretary of the Board within sixty (60) days after the date ofrecording of this Order stating that a true and correct copy of said Order was mailed withinseven (7) days from the date of its receipt by the Unit Operator to each Respondent namedin Eabibit B-8pooled by this Order and whose address is known.

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IIQ6 I 7 IGE0083

19. Availabilitv of Unit Records The Director shall provide all persons notsubject to a lease with reasonable access to all records for Subject Drilling Unit which aresubmitted by the Unit Operator to said Director and/or his Inspector(s).

20. Conclusion: Therefore, the requested relief and all terms and provisions setforth above be and hereby are granted and IT IS SO ORDERED.

21. Anueals: Appeals of this Order are governed by the provisions of Va. CodeAnn. $ 46.1-961.9which provides that any order or decision of the Board may be appealedto the appropriate circuit court.

22. RSect'we Date This Order shall be effective as of the date of the Board'8approval of this Application, which is set forth at Paragraph 1 above.

DONE AND EXECUTED this /~ day omajority of the Virginia Gas and Oil Board. /

, 2006, by a

CKairman, Bogy R. Wsdnpler

DONE AND PERFORMED this f 8 day of ( 'W, 2006, by Orderof this Board. /

.WilsonPrincipal Executive To The StaffVirginia Gas and Oil Board

STATE OF VIRGINIA )COVEY OF WASHINGTON

~)

6 kn nfedded en'& d y f ~,2006,2e nedye fa notary public in and for the Commonwealth oA'irginia, appeared Benny Wampler, beingduly sworn did depose and say that he is Chairman of the Virginia Gas and Oil Board, thathe executed the same and was authorized to do so.

My commission expires: QJSO/~)LQ

Notary Public +

10

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89%06 f 7 %f0084

STATE OF VIRGINIA )COUNTY OF WASHINGTON )

C

Acknowledged on this /Wday of, 2006, personally before mea notary public in and for the Commonwealth df Virginia, appeared B.R. Wilson, being dulysworn did depose and say that he is Principal Executive to the Staff of the Virginia Gas andOil Board, that he executed the same and was authorized to do so.

No~ Public/Ijt--

Order Pecorded Under Code ofVirgule Section 46.l-ggt.gg

[c:lmsword2000leog.pooling.plumcna4-06.order)

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IIO6 i t IX0086

PILOWNI KNII @ASPIED UNT PK L43

PAW%8 WffH WHCN APPUCANT HAS NOT REACHED AC ~~~T

TRACT PARTY STATUS

INTERESTWITHIN~IT

GROSSACREAGE

IN UNIT

J.GarisonTr.

Appalachian Energy, tnc.Poet Olttce Box 2406Nhtngtttm, Vtrglnks 24212

10.318867% 18.570000

10.318867% 18.57000

C. L.RlgsrLumber

inc. Tr. 27

Hard Rock Exptorafion, inc.P.O. Box13059Charleston, WV 26360

eIKICart Ogao,hm.901 East Byrd SL, Suge110R'=. =.Vkgktht 23219

0.122222% 0.220000

0.122222% 0220000

TOTAL 10A38889% 18.790000

VIRGINIA: In the Clerk's Office of the C'it Court of Buchanan County. The foregoing instrumentwas this day presented in the~ aforesaid with the certificate of ttpttnowtedgtgsngggtNted,admitted to record i's dPI / day ofThe tax imposed JPIJJ.I-802 of the Cod~a paid ia the amount of $Deed Book No. LFii ~- anJLpgge No. iV' TUTTI: C Jpptpy M, Bovine. Jr., ClerkReturned to: ~~/N i . TESTEE.trtgftllL Lt LIIQtaJDeputy Clerk

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