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INSTRUMENT PREPARED BY VIRGINIA GAS AND OIL BOARD ORDER RECORDED UNDER CODE OF VIRGINIA SECTION 41186(.26 VIRGINIA: BEFORE THE VIRGINIA GAS AND OIL BOARD SUBJECT DRILLING UNIT SERVED BY WELL NUMBERED VCI-531374(herein "Well" ) TO BE DRILLED IN THE LOCATION DEPICTED ON EXHIBIT A HERETO, David Coleman Jr. etal p/o 14.49 Acre Tract Caney Ridge QUADRANGLE Kenady MAGI STER1'AL D1STRICT DICKENSON COUNTY, VIRGINIA (the "Subject Lands" are more particularly described on Exhibit A, attached hereto and made a part hereof) TAX MAP IDENTIFICATIN NUMBERS FOR ALL PARCELS AFFECTED BY THIS ORDER ARE SHOWN ON EXHIBIT(S) B-3; WHICH IS/ARE ATTACHED TO AND A PART OF THIS ORDER. APPLICANT: EQT Production Company ) ) POOLING OF INTERESTS IN A 58.80 ) ACRE SQUARE DRILLING UNIT ) DESCRIBED IN EXHIBIT A HERETO ) LOCATED IN THE NORA COAL BED GAS ) FIELD AND SERVED BY WELL NO. ) VCI-531374 (herein "Subject Drilling) Unit" ) PURSUANT TO VA. CODE ) 5% 45.1-361.21 AND 45.1-361.22, ) FOR THE PRODUCTION OF OCCLUDED ) NATURAL GAS PRODUCED FROM COALBEDS ) AND ROCK STRATA ASSOCIATED ) THEREWITH (herein "Coalbed Methane ) Gas" or "Gas") ) ) LEGAL DESCRIPTION: ) ) ) ) ) ) ) ) ) ) ) ) ) ) TAX MAP IDENTIFICATIN NUMBERS: ) ) ) ) ) ) VIRGINIA GAS AND OIL BOARD DOCKET NO. VGOB-10/05/18-2707 TAX MAP IDENTIFICATION SH AFFECTED BY THIS ORD HOWN ON EXHIBIT ~~. REPORT OF THE BOARD FINDINGS AND ORDER 1. Hearing Date and Place: This matter came on for hearing before the Virginia Gas and Oil Board (hereafter "Board" ) at 9:00 a.m. on May 18, 2010, Conference Center at the Russell County Facility, Lebanon, Virginia. 2. Appearances: James E. Kaiser, of Wilhoit and Kaiser, appeared for the Applicant; and Sharon B. Pigeon, Assistant Attorney General, was present to advise the Board.

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INSTRUMENT PREPARED BYVIRGINIA GAS AND OIL BOARD

ORDER RECORDED UNDER CODE

OF VIRGINIA SECTION 41186(.26

VIRGINIA:BEFORE THE VIRGINIA GAS AND OIL BOARD

SUBJECT DRILLING UNIT SERVED BY WELL NUMBERED

VCI-531374(herein "Well" ) TO BE DRILLED IN

THE LOCATION DEPICTED ON EXHIBIT A HERETO,

David Coleman Jr. etalp/o 14.49 Acre TractCaney Ridge QUADRANGLE

Kenady MAGI STER1'AL D1STRICTDICKENSON COUNTY, VIRGINIA(the "Subject Lands" are moreparticularly described on Exhibit A,attached hereto and made a part hereof)

TAX MAP IDENTIFICATIN NUMBERS FOR ALL PARCELS

AFFECTED BY THIS ORDER ARE SHOWN ON EXHIBIT(S)B-3; WHICH IS/ARE ATTACHED TO AND A PART

OF THIS ORDER.

APPLICANT: EQT Production Company )

)

POOLING OF INTERESTS IN A 58.80 )

ACRE SQUARE DRILLING UNIT )

DESCRIBED IN EXHIBIT A HERETO )

LOCATED IN THE NORA COAL BED GAS )

FIELD AND SERVED BY WELL NO. )

VCI-531374 (herein "Subject Drilling)Unit" ) PURSUANT TO VA. CODE )

5% 45.1-361.21 AND 45.1-361.22, )

FOR THE PRODUCTION OF OCCLUDED )

NATURAL GAS PRODUCED FROM COALBEDS )

AND ROCK STRATA ASSOCIATED )

THEREWITH (herein "Coalbed Methane )

Gas" or "Gas") )

)

LEGAL DESCRIPTION: )

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)

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TAX MAP IDENTIFICATIN NUMBERS: )

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VIRGINIA GAS

AND OIL BOARD

DOCKET NO.VGOB-10/05/18-2707

TAX MAP IDENTIFICATION

SHAFFECTED BYTHIS ORD

HOWN ON EXHIBIT~~.

REPORT OF THE BOARD

FINDINGS AND ORDER

1. Hearing Date and Place: This matter came on for hearing beforethe Virginia Gas and Oil Board (hereafter "Board" ) at 9:00 a.m. on May 18,2010, Conference Center at the Russell County Facility, Lebanon, Virginia.

2. Appearances: James E. Kaiser, of Wilhoit and Kaiser, appearedfor the Applicant; and Sharon B. Pigeon, Assistant Attorney General, was

present to advise the Board.

9 482P(" (39 "(

3. Jurisdiction and Notice: Pursuant to Va. Code 6545.1-361.1 et~se ., the Board finds that it has jurisdiction over the subject matter.Based upon the evidence presented by Applicant, the Board also finds that theApplicant has (1) exercised due diligence in conducting a meaningful searchof reasonably available sources to determine the identity and whereabouts ofeach gas and oil owner, coal owner, or mineral owner and/or potential owner,i.e., person identified by Applicant as having ("Owner" ) or claiming("Claimant" ) the rights to Coalbed Methane Gas in all Pennsylvania-aged coalsfrom the top of the Raven, including but not limited to: Jawbone, Tiller,Upper Seaboard, Unnamed A, Middle Horesepen, War Creek, Lower Horsepen, Poca6, Poco 5, Poca 3, Poca 2 and any other unnamed coal seams, coalbeds and rockstrata associated therewith (hereafter "Subject Formations" ) in the SubjectDrilling Unit underlying and comprised of Subject Lands; (2) represented ithas given notice to those parties so identified (hereafter sometimes"person(s)" whether referring to individuals, corporations, partnerships,associations, companies, businesses, trusts, joint ventures or other legalentities) entitled by Va. Code 55 45.1-361.19 and 45.1-361.22, to notice ofthe application filed herein; and (3) that the persons set forth in ExhibitB-3 hereto have been identified by Applicant as persons who may be Owners orClaimants of Coalbed Methane Gas interests in Subject Formations in theSubject Drilling Unit who have not heretofore agreed to lease or sell to theApplicant and/or voluntarily pool their Gas interests. Conflicting GasOwners/Claimants in Subject Drilling Unit are listed on Exhibit E. Further,the Board has caused notice of this hearing to be published as required byVa. Code 6 45.1-361.19.B.Whereupon, the Board hereby finds that the noticesgiven herein satisfy all statutory requirements, Board rule requirements andthe minimum standards of state due process.

4. Amendments: NONE.

5. Dismissals: NONE.

6. Relief Requested: Applicant requests (1) that pursuant to Va.Code 6 45.1-361.22, including the applicable portions of 5 45.1-361.21, theBoard pool the rights, interests and estates in and to the Gas in the SubjectDrilling Unit, including those of the Applicant and of the known and unknownpersons named in Exhibit B-3 hereto and that of their known and unknownheirs, executors, administrators, devisees, trustees, assigns and successors,both immediate and remote, for the drilling and operation, includingproduction, of Coalbed Methane Gas produced from the Subject Drilling Unitestablished for the Subject Formations underlying and comprised of theSubject Lands, (hereafter sometimes collectively identified and referred toas "well development and/or operation in the Subject Drilling Unit" ); and,(2) that the Board designate EQT Production Company as the Unit Operator.

7. Relief Granted: The requested relief in this cause shall be andhereby is granted and: (1) pursuant to Va. Code 5 45.1-361.21.C.3, EQTProduction Company (hereafter "Unit Operator" or "Operator" ) is designated asthe Unit Operator authorized to drill and operate the Well in SubjectDrilling Unit at the location depicted on the plat attached hereto as ExhibitA, subject to the permit provisions contained in Va. Code 5 45.1-361.27, et~se .,; to 55 4 VAC 25-150 et ~se ., Gas and Oil Regulations; to 5 4 VAC 25-160et ~se ., Virginia Gas and Oil Board Regulations and to the Nora Coal Bed Gas

2'( 48ZPG 69Q

Field Rules established by the Oil and Gas Conservation Board's Order enteredMarch 26, 1989; all as amended from time to time; and (2) all the interestsand estates in and to the Gas in Subject Drilling Unit, including that of theApplicant, the Unit Operator and of the known and unknown persons listed on

Exhibit B-3, attached hereto and made a part hereof, and their known and

unknown heirs, executors, administrators, devisees, trustees, assigns and

successors, both immediate and remote, be and hereby are pooled in theSubject Formations in the Subject Formation in the Subject Drilling Unitunderlying and comprised of the Subject Lands.

Pursuant to the Nora Coal Field Rules promulgated under the authorityof Va. Code 6 45.1-361.20, the Board has adopted the following method for thecalculation of production and revenue and allocation of allowable costs forthe production of Coalbed Methane Gas.

For Frac Well Gas. — Gas shall be produced from and allocated to onlythe 58.80 acre drilling unit in which the well is located according tothe undivided interests of each Owner/Claimant within the unit, whichundivided interest shall be the ratio (expressed as a percentage) thatthe amount of mineral acreage within each separate tract that is withinthe Subject Drilling Unit, when platted on the surface, bears to thetotal mineral acreage, when platted on the surface, contained withinthe entire 58.80 acre drilling unit in the manner set forth in the NoraField Rules.

8. Election and Election Period: In the event any Owner or Claimantnamed in Exhibit B-3 hereto does not reach a voluntary agreement to share inthe operation of the well located in the Subject Drilling Unit, at a rate ofpayment mutually agreed to by said Gas Owner or Claimant and the UnitOperator, then such person named may elect one of the options set forth inParagraph 9 below and must give written notice of his election of the optionselected under Paragraph 9 to the designated Unit Operator at the addressshown below within thirty (30) days from the date of receipt of a copy ofthis Order. A timely election shall be deemed to have been made if, on orbefore the last day of said 30-day period, such electing person has deliveredhis written election to the designated Unit Operator at the address shown

below or has duly postmarked and placed its written election in first classUnited States mail, postage prepaid, addressed to the Unit Operator at theaddress shown below.

9. Election Options:

9.1 Option 1 — To Participate In The Development and Operation of theDrillinq Unit: Any Gas Owner or Claimant named in Exhibit B-3who has not reached a voluntary agreement with the Applicant orUnit Operator may elect to participate in the Well developmentand operation in the Subject Drilling Unit (hereafter"Participating Operator" ) by agreeing to pay the estimate of suchParticipating Operator's proportionate part of the actual andreasonable costs, including a reasonable supervision fee, of theWell development and operation in the Subject Drilling Unit, asmore particularly set forth in Virginia Gas and Oil BoardRegulation 4 VAC 25-160-100 (herein "Completed for ProductionCosts" ). Further, a Participating Operator agrees to pay the

estimate of such Participating Operator's proportionate part ofthe Estimated, Completed-for-Production Costs as set forth belowto the Unit Operator within forty-five (45) days from the laterof the date of mailing or the date of recording of this Order.The estimated Completed-for-Production Costs for the SubjectDrilling Unit are as follows:

Completed-for-Production Costs: $339,538.00

Any gas owner and/or claimants named in Exhibit B-3, who electthis option (Option 1) understand and agree that their initialpayment under this option is for their proportionate share of theApplicant's estimate of actual costs and expenses. It is alsounderstood by all persons electing this option that they areagreeing to pay their proportionate share of the actual costs andexpenses as determined by the operator named in this Board Order.

A Participating Operator's proportionate cost hereunder shall bethe result obtained by multiplying the Participating

Operators'Interest

in Unit" times the Completed-for-Production Cost setforth above. Provided, however, that in the event a ParticipatingOperator elects to participate and fails or refuses to pay theestimate of his proportionate part of the Completed-for-Production Cost as set forth above, all within the time set forthherein and in the manner prescribed in Paragraph 8 of this Order,then such Participating Operator shall be deemed to have electednot to participate and to have elected compensation in lieu ofparticipation pursuant to Paragraph 9.2 herein.

9.2 Option 2 — To Receive A Cash Bonus Consideration: In lieu ofparticipating in the Well development and operation in SubjectDrilling Unit under Paragraph 9.1 above, any Gas Owner orClaimant named in Exhibit B-3 hereto who has not reached avoluntary agreement with the Unit Operator may elect to accept acash bonus consideration of 85,00 per net mineral acre owned bysuch person, commencing upon entry of this Order and continuingannually until commencement of production from Subject DrillingUnit, and thereafter a royalty of 1/8th of 8/Sths [twelve andone-half percent (12.5())) of the net proceeds received by theUnit Operator for the sale of the Gas produced from any Welldevelopment and operation covered by this Order multiplied bythat person's Interest Within Unit as set forth in Exhibit B-3[for purposes of this Order, net proceeds shall be actualproceeds received less post-production costs incurred downstreamof the wellhead, including, but not limited to, gathering,compression, treating, transportation and marketing costs,whether performed by Unit Operator or a third person] as fair,reasonable and equitable compensation to be paid to said GasOwner or Claimant. The initial cash bonus shall become due andowing when so elected and shall be tendered, paid or escrowedwithin one hundred twenty (120) days of recording of this Order.Thereafter, annual cash bonuses, if any, shall become due andowing on each anniversary of the date of recording of this orderin the event production from Subject Drilling Unit has not

Hi( 48ZP6 700

theretofore commenced, and once due, shall be tendered, paid orescrowed within sixty (60) days of said anniversary date. Oncethe initial cash bonus and the annual cash bonuses, if any, areso paid or escrowed, said payment(s) shall be satisfaction infull for the right, interests, and claims of such electing personin and to the Gas produced from Subject Formation in the SubjectLands, except, however, for the 1/8th royalties due hereunder.

Subject to a final legal determination of ownership, the electionmade under this Paragraph 9.2, when so made, shall besatisfaction in full for the right, interests, and claims of suchelecting person in any well development and operation coveredhereby and such electing person shall be deemed to have andhereby does assign its right, interests, and claims in and to theGas produced from Subject Formation in the Subject Drilling Unitto the Applicant.

9.3. Option 3 — To Share In The Development And Operation As A Non-Participating Person On A Carried Basis And To ReceiveConsideration In Lieu Of Cash: In lieu of participating in theWell development and operation of Subject Drilling Unit underParagraph 9.1 above and in lieu of receiving a cash bonusconsideration under Paragraph 9.2 above, any Gas Owner orClaimant named in Exhibit B-3 who has not reached a voluntaryagreement with the Unit Operator may elect to share in the welldevelopment and operation in Subject Drilling Unit on a carriedbasis (as a "Carried Well Operator" ) so that the proportionatepart of the Completed-for-Production Costs hereby allocable tosuch Carried Well Operator's interest is charged against suchCarried Well Operator's share of production from Subject DrillingUnit. Such Carried Well Operator's rights, interests, and claimsin and to the Gas in Subject Drilling Unit shall be deemed andhereby are assigned to the Unit Operator until the proceeds fromthe sale of such Carried Well Operator's share of production fromSubject Drilling Unit (exclusive of any royalty, excess oroverriding royalty, or other non-operating or non cost-bearingburden reserved in any lease, assignment thereof or agreementrelating thereto covering such interest) equals three hundredpercent (300%) for a leased interest or two hundred percent(200%) for an unleased interest (whichever is applicable) of suchCarried Well Operator's share of the Completed-for-ProductionCosts allocable to the interest of such Carried Well Operator.Any Gas Owner and/or Claimant named in Exhibit B-3 who electsthis 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 Nell Operator's assigned interest theamounts provided for above, then, the assigned interest of suchCarried Well Operator shall automatically revert back to suchCarried Well Operator, and from and after such reversion, suchCarried Well Operator shall be treated as if it had participatedinitially under Paragraph 9.1 above; and thereafter, suchparticipating person shall be charged with and shall pay hisproportionate part of all further costs of such well development

and operation.

Subject to a final legal determination of ownership, the electionmade under this Paragraph 9.3, when so made, shall besatisfaction in full for the right, interests, and claims of suchelecting person in any Well development and operation coveredhereby and such electing person shall be deemed to have andhereby does assign his right, interests, and claims in and to theGas produced from Subject Formation in the Subject Drilling Unitto the Applicant for the period of time during which its interestis carried as above provided prior to its reversion back to suchelecting person.

10. Failure to Properly Elect: In the event a person named inExhibit B-3 hereto has not reached a voluntary agreement with the Applicantor Unit Operator and fails to elect within the time, in the manner, and inaccordance with the terms of this Order, one of the alternatives set forth inParagraph 9 above for which his interest qualifies, then such person shall bedeemed to have elected not to participate in the proposed Well developmentand operation in Subject Drilling Unit and shall be deemed, subject to anyfinal legal determination of ownership, to have elected to accept assatisfaction in full for such person's right, interests, and claims in and tothe Gas the consideration provided in Paragraph 9.2 above for which itsinterest qualifies, and shall be deemed to have leased and/or assigned hisright, interests, and claims in and to said Gas produced from SubjectFormation in Subject Drilling Unit to the Unit Operator. Persons who fail toproperly elect shall be deemed to have accepted the compensation and termsset forth herein at Paragraph 9.2 in satisfaction in full for the right,interests, and claims of such person in and to the Gas produced from SubjectFormation underlying Subject Lands.

11. Default BV Participating Person: In the event a person named inExhibit B-3 elects to participate under Paragraph 9.1, but fails or refusesto pay, to secure the payment or to make an arrangement with the UnitOperator for the payment of such person's proportionate part of the estimatedCompleted-for-Production costs as set forth herein, all within the time andin the manner as prescribed in this Order, then such person shall be deemedto have withdrawn his election to participate and shall be deemed to haveelected to accept as satisfaction in full for such person's right, interests,and claims in and to the Gas the consideration provided in Paragraph 9.2above for which his interest qualifies depending on the excess burdensattached to such interest. Whereupon, any cash bonus consideration due as aresult of such deemed election shall be tendered, paid or escrowed by UnitOperator within one hundred twenty (120) days after the last day on whichsuch defaulting person under this Order should have paid his proportionatepart of such cost or should have made satisfactory arrangements for thepayment thereof. When such cash bonus consideration is paid or escrowed, itshall be satisfaction in full for the right, interests, and claims of suchperson in and to the Gas underlying Subject Drilling Unit in the SubjectLands covered hereby, except, however, for any 1/8th royalties which wouldbecome due pursuant to Paragraph 9.2 hereof.

IjK I482PG 702

12. Assignment of Interest: In the event a person named in ExhibitB-3 is unable to reach a voluntary agreement to share in the Well

development and operation in Subject Drilling Unit at a rate of payment

agreed to mutually by said Gas Owner or Claimant and the Unit Operator, and

said person elects or fails to elect to do other than participate under

Paragraph 9.1 above in the Well development and operation in Subject DrillingUnit, then such person shall be deemed to have and shall have assigned untoUnit Operator such person's right, interests, and claims in and to said Well,in Subject Formations in Subject Drilling Unit, and other share in and to Gas

production to which such person may be entitled by reason of any election ordeemed election hereunder in accordance with the provisions of this Ordergoverning said elections.

13. Unit Operator (or Operator): EQT Production Company shall be and

hereby is designated as Unit Operator authorized to drill and operate theWell(s) in Subject Formations in Subject Drilling Unit, all subject to thepermit provisions contained in Va. Code 66 45.1-361.27 et sece.; 66 4 VAC 25-150 et ~se ., Gas and Oil Regulations; 66 4 VAC 25-160 et ~se ., Virginia Gas

and Oil Board Regulations; Oil and Gas Conservation Board ("OGCB") Orderestablishing the Nora Coal Bed Gas Field Rules entered March 26, 1989; all asamended from time to time, and all elections required by this Order shall becommunicated to Unit Operator in writing at the address shown below:

EQT Production CompanyP.O. Box 23536Pittsburgh, PA 15222Attn: Eristic Shannon and/or Alma Tolman

14. Commencement of Operations: Unit Operator shall commence orcause to commence operations for the drilling of the Well within SubjectDrilling Unit within seven hundred thirty (730) days from the date of thisOrder, and shall prosecute the same with due diligence. If the Unit Operatorhas not so commenced and/or prosecuted, then this order shall terminate,except for any cash sums then payable hereunder; otherwise, unless soonerterminated by Order of the Board, this Order shall expire at 12:00 p.m. on

the date on which the well covered by this Order is permanently abandoned and

plugged. However, in the even at an appeal is taken from this Order, thenthe time between the filing of the Petition for Appeal and the Final Order ofthe Circuit Court shall be excluded in calculating the two-year periodreferenced herein.

15. Operator's Lien: Unit Operator, in addition to the other rightsafforded hereunder, shall have a lien and a right of set off on the Gasestates, rights, and interests owned by any person subject hereto who electsto participate under Paragraph 9.1 in the Subject Drilling Unit to the extentthat costs incurred in the drilling or operation on the Subject Drilling Unitare a charge against such person's interest. Such liens and right of set offshall be separable as to each separate person and shall remain liens untilthe Unit Operator drilling or operating the Well(s) has been paid the fullamounts due under the terms of this Order.

Ei< 482PC l03

16. Escrow Provisions:

The Applicant represented to the Board that there are unknown or unlocatableclaimants in Subject Drilling Unit whose payments are subject to theprovisions of Paragraph 16.1 hereof in Tract(s) 1 of the Subject DrillingUnit; and, the Unit Operator has represented to the Board that there areconflicting claimants in Tract(s) 1 of the Subject Drilling Unit whose

payments are subject to the provisions of Paragraph 16.2 hereof. Therefore,by this Order, the Escrow Agent named herein or any successor named by theBoard, is required to establish an interest-bearing escrow account forTract(s) 1 of the Subject Drilling Unit (herein "Escrow Account" ), and toreceive and account to the Board pursuant to its agreement for the escrowedfunds hereafter described in Paragraphs 16.1 and 16.2:

First Bank 4 Trust CompanyTrust DivisionP.O. Box 3860Kingsport, TN 37664Attn: Debbie Davis

16.1. Escrow Provisions For Unknown or Unlocatable Persons: If anypayment of bonus, royalty payment or other payment due and owingunder this Order cannot be made because the person entitledthereto cannot be located or is unknown, then such cash bonus,royalty payment, or other payment shall not be commingled withany funds of the Unit Operator and, pursuant to Va. Code 6 45.1-361.21.D, said sums shall be deposited by the Unit Operator intothe Escrow Account, commencing within one hundred twenty (120)days of recording of this Order, and continuing thereafter on amonthly basis with each deposit to be made, by use of a reportformat approved by the Inspector, by a date which is no laterthan sixty (60) days after the last day of the month beingreported and/or for which funds are being deposited. Such fundsshall be held for the exclusive use of, and sole benefit of theperson entitled thereto until such funds can be paid to suchperson(s) or until the Escrow Agent relinquishes such funds asrequired by law or pursuant to Order of the Board in accordancewith Va. Code 6 45.1-361.21.D.

16.2 Escrow Provisions For Conflicting Claimants: If any payment ofbonus, royalty payment, proceeds in excess of ongoing operationalexpenses, or other payment due and owing under this Order cannot bemade because the person entitled thereto cannot be made certain dueto conflicting claims of ownership and/or a defect or cloud on thetitle, then such cash bonus, royalty payment, proceeds in excess ofongoing operational expenses, or other payment, together withParticipating Operator's Proportionate Costs paid to Unit Operatorpursuant to Paragraph 9.1 hereof, if any, (1) shall not becommingled with any funds of the Unit Operator; and (2) shall,pursuant to Va. Code 56 45.1-361.22.A.2, 45.1-361.22.A.3 and 45.1-361.22.A.4, be deposited by the Operator into the Escrow Accountwithin one hundred twenty (120) days of recording of this Order, andcontinuing thereafter on a monthly basis with each deposit to be

IjI(l 482Pi 704

made by a date which is no later than sixty (60) days after the lastday of the month being reported and/or for which funds are subjectto deposit. Such funds shall be held for the exclusive use of, andsole benefit of, the person entitled thereto until such funds can bepaid to such person(s) or until the Escrow Agent relinquishes suchfunds as required by law or pursuant to Order of the Board.

17. Special Findings: The Board specifically and specially finds:

17.1. Applicant is EQT Production Company. Applicant is duly authorizedand qualified to transact business in the Commonwealth of Virginia;

17.2. Applicant EQT Production Company has made a delegation ofauthority to EQT Production Company to explore, develop and maintainthe properties and assets of Applicant, now owned or hereafteracquired, and EQT Production Company has accepted this delegation ofauthority and agreed to explore, develop and maintain thoseproperties and assets, and has consented to serve as Coalbed MethaneGas Unit Operator for Subject Drilling Unit and to faithfullydischarge the duties imposed upon it as Unit Operator by statute andregulations;

17.3. Applicant EQT Production Company is an operator in theCommonwealth of Virginia, and has satisfied the Board's requirementsfor operations in Virginia;

17.4 Applicant EQT Production Company claims ownership of gas leases,Coalbed Methane Gas leases, and/or coal leases representing96.57027972% percent of the oil and gas interest/claims in and toCoalbed Methane Gas and 100.00% percent of the coal interest/claimsin and to Coalbed Methane Gas in Subject Drilling Unit; and,Applicant claims the right to explore for, develop and produceCoalbed Methane Gas from Subject Formations in Subject Drilling Unitin Dickenson County, Virginia, which Subject Lands are moreparticularly described in Exhibit A;

17.5. The estimated total production from Subject Drilling Unit is 200MNCG. The estimated amount of reserves from the Subject DrillingUnit is 200 146CG;

17.6. Set forth in Exhibit B-3, is the name and last known address ofeach Owner or Claimant identified by the Applicant as having orclaiming an interest in the Coalbed Methane Gas in SubjectFormation in Subject Drilling Unit underlying and comprised ofSubject Lands, who has not, in writing, leased to the Applicantor the Unit Operator or agreed to voluntarily pool his interestsin Subject Drilling Unit for its development. The interests ofthe Respondents listed in Exhibit B-3 comprise 3.42972028%percent of the oil and gas interests/claims in and to CoalbedMethane Gas and 0.00% percent of the coal interests/claims in andto Coalbed Methane Gas in Subject Drilling Unit;

M 48ZPl 705

17.7 Applicant's evidence established that the fair, reasonable and

equitable compensation to be paid to any person in lieu of theright to participate in the Wells are those options provided inParagraph 9 above;

17.8 The relief requested and granted is just and reasonable, issupported by substantial evidence and will afford each personlisted and named in Exhibit B-3 hereto the opportunity to recoveror receive, without unnecessary expense, such person's just andfair share of the production from Subject Drilling Unit. The

granting of the Application and relief requested therein willensure to the extent possible the greatest ultimate recovery ofCoalbed Methane Gas, prevent or assist in preventing the varioustypes of waste prohibited by statute and protect or assist inprotecting the correlative rights of all persons in the subjectcommon sources of supply in the Subject Lands. Therefore, theBoard is entering an Order granting the relief herein set forth.

18. Mailing Of Order And Filing Of Affidavit: Applicant or itsAttorney shall file an affidavit with the Secretary of the Board within sixty(60) days after the date of recording of this Order stating that a true andcorrect copy of said Order was mailed within seven (7) days from the date ofits receipt by Unit Operator to each Respondent named in Exhibit B-3 pooledby this Order and whose address is known.

19. Availability of Unit Records: The Director shall provide allpersons not subject to a lease with reasonable access to all records forSubject Drilling Unit which are submitted by the Unit Operator to saidDirector and/or his Inspector(s).

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

21. Appeals: Appeals of this Order are governed by the provisions ofVa. Code Ann. 5 45.1-361.9 which provides that any order or decision of theBoard may be appealed to the appropriate circuit court.

22. Effective Date: This Order shall be effective as of the date ofthe Board's approval of this Application, which is set forth at Paragraph 1above.

10

DONE AND EXECUTED this 2 day of WJof the Virginia Gas and Oil Board. /

2010, by a majority

Charrman Bradley C. Lambert

r+DONE AND PERFORMED this~ day of P/3P, 2010, by Order of

this Board.

'David Asbury Jr.Principal Executive To The StaffVirginia Gas and Oil Board

STATE OF VIRGINIA )COUNTY OF Russell )

Acknowledged on this 3 day o/ /PU ,2010, personallybefore me a notary public in and for the Commonwealth of Virginia, appearedBradley C. Lambert, being duly sworn did depose and say that he is Chairmanof the Virginia Gas and Oil Board, and David Asbury Jr., being duly sworn diddepose and say that he is Principal Executive to the Staff of the VirginiaGas and Oil Board, that they executed the same and was authorized to do so.

174394

My commission expires: September 30, 2013.

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Hit:HALO )s. ht)a)ARUM~ .'):hNl ( f N)i/id

itttsTRUMZNT NO. (DM I 6 >REtoorded in the Clerk's ONoeof Dickeneon County

TOTAL UNIT AREA= 58.80 ACRES

DEN01ES MBRRAL LNE

DENOTES SURFACE LNE

DENOTEB SURFACE a LaaRAL ulaS

STATE PLANENAD 27 COORDINATESOF WELL VCI-531374

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7987'Oil I 5('/ul. I IIILease No. 905888 / T-211NEW YORK MINING 8 MANUFACIURING CO.d78.75 ACRESHEARTWOOD FORESTLAND FLIND IV, LLC —SarfaaeDICKENSON-RUSSGL COAL COMPANY. LLC/ALPHA LAND 8RESERVES, LLC/ACIH, LLC/WBRD. ILC —CoalRANGE RESOURCES-PINE MOUNTAIN, INC. —Ol, Gae 8 CBMGAS 52Ad AC —88.208

UNIT W iiBOUNDARY—Iaoo 78' ii

LATITUDE 3705'00"

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CCC COORDIOF WELL VO-

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VC-505240+

Lease No. 245752SELFORD D01SON H

32.50 ACRESLease No. 908888 / TC-153WILSON ROSE, AL84.83 ACRESDICKENSON-RUSSELL COAL COMPANY. LLC/ALPHALAND 8 RESERVEa ILC/AaN. ILC/WBRD. LLc —cRANGE RESOURCES PINE MOUNTAIN, INC. —(CBM)GAS 8.35 AC. —IQSON

N 3504918.8125E 10370808.8888ELEV. 1753AO

WBL COORDINAlES ARE BASED ON STAIE PLANE NAD 83COORDINAlE SYSIEM.aEVATICNS ARE BASED ON NGS CONTROL ST. PAUL 2.PROPER1Y INFOBIAllON PROVIDED BY EONTABLE PROOUCIIONCOMPANY. 1HE BOUNDARY UNES SHOMI HEREON ARE BASED OlDEEDS, PLA15 AND MAPS OF RECORD AND 00 NOT DEPICT A

CURRENT BOUNDARY SURVEY.THE WELL WILL BE ORILLED WITHIN 10'TEN FEET) OF THEPERMITTED COORONATES.

WELL LOCATION PLAT

COMPANY Equitable Production Companv WELL NAME AND NUMBER ~ <CTRACT No. LEASE No. 285752 ELEVATION 2185.88 (OPs) QUADRANGLE cANEv RIDOE

COUNTY nlcNENsoN DISTRICT KFNAov SCALE: 1" ~ 400'ATE FESRUARv 2. 2o1oTHIS PLAT IS A NEW PLAT x; AN UPDATED PLAT; OR A FINAL LOCATION PLATPROPOSED TOTAL DEPTH OF WELL =I DENOTES THE LOCATION OF A WELL ON UNITED ST'ATES TOPOGRAPHIC MAPS, SCALE 1 TO~ 24,000, LATITUDE AND LONGITUDE LINES BEING REPRESENTED BY BORDER LINES AS SHOWN.

(AFFIX SEAL)

g ~TRIAL UONSED PROFESSIONAL ENGINEER OR LICENSED LAND SURVEYOR

EE 482Pb I 0 1DGO-7 SUPPLEMENT

WELL UNIT PROPERTY OWNER INDEXVCI —531374

Coal Ownership Supplement Sheet For EQUITABLE PRODUCTIONCOMPANY Well VCI —531374, Showing Coal Ownership of the Unit

Boundary and Within a 750'adius of the Well Location

Qw

Lease No. 906889 / T—177J. F. SMITH

154.07 ACRESDICKENSON —RUSSELL COAL COMPANY, LLC/ALPHA LAND Bc

RESERVES, LL.C/AGIN, LLC/WBRD, LLC —CoalRANGE RESOURCES —PINE MOUNTAIN, INC. —Oil, Gas & CBM

482I'3 /OatsEXHIBIT nB-3n

VCI-5313T4

TRACT LESSORLEASE

STATUS

INTERESTWITHIN

UNIT

GROSSACREAGE

IN UNIT

Gas Estate Dnlv

Timothy Redden andEdith Redden, h/w

400 West Main StreetClintwood, VA 24228276-926-41 17

Unleased 0.90909091% 0 5345

lda Jane Adkins Bise HeirsUnknown / Unlocatable

Unleased 1 05000000% 0.6174

Vemalda May AdkinsRose HeirsUnknown / Unlocatable

Unleased 1 20000000% 0 7056

Bobby Adkins, widower3145 Possum Hollow

Coeburn, VA 24230

Unlea sad 0 02307692% 0.0136

Mary Deal andCharles Deer, w/h

4801 Mustang RoadCoebum, VA 24230

Unlea sad 0.02307692% 0.0136

Drbin Ralph Adkins andLisa Adkins, h/w

c/o Mary Deal4801 Mustang RoadCoebum, VA 24230

Unleased 0 02307692% 0.0136

Emily Charles andAlan Charles, w/h

8055 CR 16ASt. Augustine, FL 32092

Donna Miller andDennis Miller w/h

P.C. Box 2Augusta Springs, VA 24411

Unleased

Unleased

0 03076923'/ 0.0181

0 03076923% 0 0181

Frank Hancock andStephanie Hancock, h/w

407 13th StreetWaynesboro, VA 22980540-241-7305

Unleased 0 03076923% 0.0181

Ray Adkins andBrenda Adkins, h/w

P.O Box 411Waynesboro, PA 17268

Unleased 0.10909091% 0.0641

Total Gas Estate 3.42972028% 2 0165

6( 482,I'Cw 100EXHIBIT 'E"VCI-531374

TRACT LESSORLEASE

STATUS

Gas Estate Ortlv

INTERESTWITHIN

UNIT

GROSSACREAGE

IN UNIT

lmogene R. Adkins, widowP.O. Box 16085Bristol, VA 24209-6085

Leased245752

0.24000000% 0.1411

Dudley Redden andGladys Charles Redden, h/w

118Spur StreetPounding Mill, VA 24637

Timothy Redden andEdith Redden, h/w

400 West Main StreetClintwood, VA 24228276-926-4117

Leased245752.19

Unleased

0 08000000% 0.0470

0 90909091'/ 0.5345

Timothy Redden andEdith Redden, h/w

400 West Main StreetClintwood, VA 24228

Leased245752

2.18181818% 1.2828

Angela Redden Back3717 Forrest Green DriveLexington, KY 40517

I easedRange Resources

4500511806

0.08000000% 0.0470

Ida Jane Adkins Bise Heirs:Unknown / Unlocatable

Unles ed 1.05000000% 0 6174

Curtis Bise andMable Bise, h/w

4218 Hwy. 144 SGlen Rose, TX 76043

Vernalda May AdkinsRose Heirs:Unknown / Unlocatable

Leased245752

Unleased

0.15000000% 0.0882

1.20000000% 0.7056

Donald R Hilton andCarolyn Hilton, h/w

404 Punch Run RdFront Royal, VA 22630

Larry Houston andGlenda Jo Houston, h/w

1591 Muddy Creek Rd. ¹ 16Blountville, TN 37617

Leased245752

Leased245752

1 .20000000% 0 7056

1.20000000% 0.7056

Paul Adkins andBonnie Adkins, h/w

1269 Hartwood RoadFair/ax, VA 22406

Leased245752

0.09230769% 0.0543

Pag~

IIIJ2/t' I 0EXHIBIT "E"VC I-531374

TRACT LESSORLEASE

STATUS

INTERESTWITHIN

UNIT

GROSSACREAGE

IN UNIT

Herman Ralph Adkinsc/o Helen Fleming3860 Eastline Dr. Apt.132Kingsport, TN 37664

Leased245752

0 09230769% 0.0543

Helen Fleming3860 Eastline Dr. Apt.132Kingsport, TN 37664

Leased245752

0.09230769% 0 0543

Linda Hill andCarlon Hill, w/h

343 Piercy StreetBlountville, TN 37617

Leased245752

0.09230769% 0 0543

Glenda Beverage andDavid Beverage, w/h

63 Hillendale Drive

Staunton, VA 24401-6540

Leased245752

0.09230769% 0.0543

Doris Perrine, widow

317 Senca Trl 1

Roncevette, WV 24970

Leased245752

0.09230769% 0.0543

Margaret Perry andHenry Perry, w/h

440 AvondaleMarion, OH 43302

LeasedRange Resources

450511806C245752.05.

0.09230769% 0.0543

Barbara Younce andRalph Younce, w/h

1103 Hill StreetCoeburn, VA 24230

Leased245752

0.09230769% 0.0543

Mary Lou Younce andWilliam Younce, w/h

P.O. Box 2341Coeburn, VA 24230

l.eased245752

0.09230769% 0.0543

Jackie Edward Rose259 County Road 587Englewood, TN 37329

Leased245752

0 04615385% 0.0271

Virginia Denise Gregory &

Richard D. Gregory, Jr., w/h

747 County Road 188Decatur, TN 37322

Leased245752

0.04615385% 0 0271

Frank Adkins andBarbara Adkins, h/w

770 May Ave.Coeburn, VA 24230

Leased245752

0 02307692% 0.0136

Page~

LI82I'h t I I

EXHIBIT "E"VCI-531374

TRACT LESSOR

Bobby Adkins, widower

3145 Possum Hollow

Coeburn, VA 24230

LEASESTATUS

Unleased

INTERESTWITHIN

UNIT

GROSSACREAGE

IN UNIT

0.02307692% 0.0136

Mary Decl andCharles Decl, w/h

4801 Mustang RoadCoeburn, VA 24230

Unleased 0.02307692% 0 0136

Orbin Ralph Adkins andLisa Adkins, h/w

c/o Mary Decl4801 Mustang RoadCoeburn, VA 24230

Unleased 0.02307692% 0 0136

Emily Charles andAlan Charles, w/h

8055 CR 16ASt. Augustine, FL 32092

Unleased 0.03076923% 0.0181

Samantha Dawn Adkins, minorc/o Tammy HarveyP O. Box 2266Coeburn, VA 24230

Leased245752

0.03076923% 0.0181

Joseph Michael Adkins, minorc/o Tammy HarveyP 0 Box 2266Coeburn, VA 24230

Leased245752

0 03076923% 0.0181

Donna Miller andDennis Miller, w/h

P.O. Box 2Augusta Springs, VA 24411

Unleased 0.03076923% 0.0181

Frank Hancock andStephanie Hancock, h/w

407 13th StreetWaynesboro, VA 22980540-241-7305

Unleased 0 03076923% 0.0181

Suzanne Hancock105 Bear Ben RoadWaynesboro, VA 22980540-943-7469

LeasedRange Resources

450511806D

0 03076923% 0.0181

Ray Adkins andBrenda Adkins, h/w

P.O. Box 411Waynesboro, PA 17268

Unleased Q 1Q909Q91'/ 0.0641

Total Gas Estate

Pag~9 60000000'/ 5.6444

EXHIBIT "E"VCI-531374

;t( 482I'b I I 4

TRACT LESSORLEASE

STATUS

INTEREST GROSSWITHIN ACREAGE

UNIT IN UNIT

Coal Estate Onlv

Range Resources-Pine MountairAttn: Jerry GranthamP.O. Box 2136Abingdon, VA 24212Minerals Only

Leased906889TC-153

9 60000000% 5.6444

Total Coal Estate 9 60000000% 5.6444