BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: Equitable Production Company DIVISION OF GAS AND OILDOCKET NO. VGOB 89-0126-0009-30

RELIEF SOUGHT: MODIFICATION OF NORA COALBED GAS UNIT NO.: BT-57 (VC-536317).

AFFECTED UNITS: (See Attached Exhibit A)

APPLICATION

1.Aonlicant and its counsel: Applicant is Equitable Production Company 1710 Pennsylvania

Ave., Charleston, West Virginia, 25302, (800) 926-1759. Applicant's Counsel is James E. Kaiser 220Broad Street, Suite 210, Kingsport, TN 37660 (423) 578-3838.

2. Relief souuht: (1)Modification of the Nore Coalbed Methane Gas Field Rules, to allow oneadditional coalbed gas well to be drilled within each of the 58.77 acre Nore Units identified above. (2) Foran administrative order providing that additional well permits may be issued in the Nora Field aller this

application is filed and while it is pending.

3. Lanai authoritv: 4 VAC 25-160-50 and 8 45.1-361.20of the Code of Virginia.

4. Pronosed nrovisions of order souuht: That one additional coalbed methane gas well may bedrilled in each of the above referenced Nore Units; that the second well be located at least 600 feet &om thenearest coalbed methane well; (and that production/royalties &om each coalbed methane well drilled in thesaid Units shall continue to be allocated solely to the owners and claimants of and to the coalbed methanewithin the Unit in which the well is located.)

5. Tvne of wells and field: Coalbed methane frac wefis within the portion of the Nore CoalbedGas Field described above, and as depicted in the attached Exhibit A.

6. Formations subiect to annlication: All coal beds and coal seams including all Pennsylvaniaaged coals &om the top of the Raven, but not limited to Jawbone, Greasy Creek, C-Seam, War Creek,Beckley, Lower Horsepen, X-Seam, Poca 6, Poca 5, Poca 3, Poca 2, and any unnamed coal seams and otherassociated formations known as the Nore Coalbed Gas Field.

7. Descrintion of interest/claim of nersons heine notified: Coalbed methane.

8. Estimated ultimate recoverv in each Nora Unit identified above: 475 MMCF

9. Plat: See Exhibit A annexed hereto.

lb. The boundaries and acreane affected: see Exhibit A annexed hereto.

11.Attestation: The foregoing application to the best of my knowledge, information and belief is

true and correct.

a Company

Byf ) James E. Kaiser

220lProad Street„Suite 202Kingsport, TN 37660

(423) 578-3838

AFFIDAVIT OF DUE OF DILIGENCE

COMMONWEALTH OF VIRGINIACOUNTY OF DICKENSON

I, James E. Kaiser, after being duly sworn upon oath, state as follows:

1. I am responsible for the notification process required by VA. Code Ann. tJ 45.1-

361.19and VR 480-05-22.2 IJ 4.

2. That Equitable Production Company has exercised due diligence in attempting to

locate and notice all owners and claimants who are unleased and/or who were not

previously pooled by prior order(s) of the Virginia Gas and Oil Board regarding

the Nora Coalbed Gas Field, all as required by Va. Code Ann. $ 45.1-361.19

and VR 480-05-22.2.

That on Mav 16.2008 a true and correct copy of the Notice of Hearing with

Exhibits will be mailed, via certified mail return receipt requested, to all owners

and claimants listed in Exhibit B for whom mailing addresses were then available.

That Equitable Production Company will continue to exercise due diligence in

attempting to locate and identify the names and/or addresses of any unknown of

unlocatable parties and, if located of identified, will notify them of Equitable

Production Company's application.

I have read the foregoing, and the information given above is true and correct to

the best of my knowledge and belief

JC

es E. Kaisersel for

Equitable Production Company

ACKNOWLEDGMENT

STATE OF TENNESSEE

COUNTY OF SULLIVAN

TAKEN, SUBSCRIBED AND SWORN to before me this i'4 day of

, 2008.

Notary PlbliC' t

BOSt5 6'+~ soss sose~ soeg Isoso owo loose oss(

L es I soll~/

(Q59 ' BBSS BB56'ST B8005 d8u'I86'+0

g, „UFO 8 seseh seh se e .. /JPPde 00 8888 888I

Sz y B54 BAd'BSs ~ST BBSB > I'F59 B&so ace

,8

$sse ( esse i sess'tos see esse~os I sseoIs,se

8

9 . BT54 BT BT56

m, ~l

t ~ y Ivy

BTSO BT59~u

~l Mooowo

Z ~ B 'Bu~ Bu ~ .Q~- Buoo

it'etoI Hollow

(I PhilliP I Com t

I 'iB959y BmOl Ro 1 E h~

+~ tip'LLEYO 0 Iei"+~ si 0 1@K 00O

BPA:AX 54 BWSS lB2'86 MBA ~ko v . n 4 io phon sot no

V SBISW ne4W &~TSS BPSIT .~ n~~~v~nESZI8lT A

JAAfSEA'T ELANDINCREASED DENSlTY DAlLllNG NOES'lElD

0 8000 0 OOOO It

EXHIBIT "B"Increased Density

Lambert Land (BT-57)

Lambert Land, LLCP. O. Box 490Nore, VA 24272ATTN: Dennis Sutherland

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: Equitable Production Company DIVISION OF GAS AND OILDOCKET NO. 89-0126-0009-30

RELIEF SOUGHT: MODIFICATION OFNORA COALBED GAS FIELD

AFFECTED UNITS: (See Attached Exhibit A)

NOTICE OF HEARING

HEARING DATE: June 17, 2008PLACE: Southwest Virginia Higher Education Center

Campus of Virginia Highlands Community CollegeAbingdon, Virginia

TIME: 9:00a.m.

COMMONWEALTH OF VIRGINIA:

To: See Exhibit "B"attached hereto:

l. Annlicant and its counsel: Applicant is Equitable Production Company,1710Pennsylvania Ave., Charleston, West Virginia, 25302, (800) 926-1759. Applicant'sCounsel is James E. Kaiser, 220 Broad Street, Suite 210, Kingsport, TN 37660, (423)578-3838.

2. Relief souaht: (1) Modification of the Nora Coalbed Methane Gas FieldRules, to allow one additional coalbed gas well to be drilled within each of the 58.77 acreNora Units identified above. (2) For an administrative order providing that additionalwell permits may be issued in the Nora Field after this application is filed and while it ispending.

3. Leaal authoritv: 4 VAC 25-160-50 and $ 45.1-361.20of the Code ofVirginia.

4. Pronosed nrovisions of order souaht: That one additional coalbed methanegas well may be drilled in each of the above referenced Nora Units; that the second wellbe located at least 600 feet from the nearest coalbed methane well; (and thatproduction/royalties from each coalbed methane well drilled in the said Units shallcontinue to be allocated solely to the owners and claimants of and to the coalbed methanewithin the Unit in which the well is located.)

5. Tvne of wells and field: Coalbed methane frac wells within the portion of the

Nora Coalbed Gas Field described above, and as depicted in the attached Exhibit A.

6. Formations subiect to annlication: All coal beds and coal seams includingall Pennsylvania aged coals from the top of the Raven, but not limited to: Jawbone,Greasy Creek, C-Seam, War Creek, Beckley, Lower Hlorsepe, X-Seam, Poca 6, Poca 5,Poca 3, Poca 2„and any unnamed coal seams and other associated formations known asthe Nora Coalbed Gas Field.

7. Descriution of interest/claim of uersons beinu notified: Coalbed methane.

8. Estimated ultimate recoverv in each Nora Unit identified above: 475 MMCF

9. Plat: See Exhibit A annexed hereto.

10. The boundaries and acreaue affected: See Exhibit A annexed hereto.

11.Attestation: The foregoing notice to the best of my knowledge, informationand belief is true and correct.

NOTICE IS FURTHER GIVEN that this cause has been set for hearing and thetaking of evidence at the time and place first stated above and that notice will bepublished as required by law and the Rules of the Virginia Gas and Oil Board.

NOTICE IS FURTHER GIVEN that you may attend this hearing, with orwithout an attorney, and offer evidence or state any comments you have. For furtherinformation or a copy of the application and any exhibits thereto, you may contact theVirginia Gas and Oil Board, State Oil and Gas Inspector, Deparunent of Mines, Mineralsand Energy, Division of Gas and Oil, P.O. Box 1416, Abingdon, Virginia 24410, (276)676-5423 or the Applicant at the address shown below.

Eq mpany

ames E. Kaiser22 road Street, Suite 210

'ngsport, TN 37660(423) 578-3838

z Joss zss<g zspp BWmm ws .zssz zsz~4 (

t /I

)zslplf e~

apso +pet

(~aese ~H aasz p /ms'soI J

z$

sss ( zzss i zzssX 'erz 'zssz ~sz s zzzd{

Ist.

e../'C408htp g

Ip ~~ .8'UM NvdY ~w ~~~«+4» JIUb'0 1

SVA' m~ ) P' SIÃ8' EVE JV6'0m, 1pop ps

I ~ < ~~ Hollowphwp i oem zg

~ F

ppp;(Cen

E,half... ':~'"'7:"':kg%~...~...,,

::':~Pc~"~,.'m.~ "

EZEISIT AZAACBERT ELAND

INCREASED DENSITY DRILLINi" NORA FIELD

7,+'ude

JP'2'0"

DMCR NoI tr31673

oi

O

~ eb. W518klerrreeer r«erf, rAC—

eeretren oee( «4 9«e

Qee SeT/ Ae. 1eSI.

IhI

I

I

I

I

I

I

I

I

I

I

0

See C"

r fbe St. reer« S. Zow,

f vair.Iam Liiiie'aimSei» C

"' 'abe St reewo S. Zrere,one ZJ II«es Her 8J)ff Z S N7.7»1

«bs «eerree» « '~ ier Ore.«enqr «srw NWt — -='r-«2«

Form DGO-G0-7

eo» C ~ (Car«carer Coor Ca)Are« of QaY ~ Sikll Ae. s sites'~& f st see.es

WELL LOCATION PlAT (Hola Grid BT-57)

E ~ Resdr«des» WELL NAME AND baal-5yebee7%Acf No. <~~ se ~ ELEINTIGN 2-5e550 QUAIWANGLE

ISTtttGT F~~ SctLE 1 w 4%I' GATE 5- 12-2M8M e nee pblt~; an opdeted phet; or a frned lecabon plat

+ tbseates ttre leeeten ot o wew on United States topographic Maps, sod»i 1 toNA60, Idttbrde end longtbrde lines being represented by border lines orI shown.

4-w. ~Ucensed Land Srrrveyor

BEFORE THE VIRGINIA GAS AND OIL BOARD

Applicant: Equitable Production Company )))

Relief Sought: Modification of the Nora Coalbed Methane ) Docket No.Gas Field Rules, to allow more than one coalbed gas well to ) VGOB-89-0126-0009-30be drilled and an order providing additional well permits )

))

AFFIDAVIT OF MAILING(CERTIFICATE OF SERVICE)

))

COUNTY OF SULLIVAN )

James E. Kaiser, of lawful age, being duly sworn, upon oath, deposes and says:

(I) He is a partner with WILHOIT & KAISER, Agent for Equitable ProductionCompany ("EPC")and makes this affidavit on behalf of EPC.

(2) Based upon information and belief, the names and last-known addresses, wheresuch addresses are known, of the parties owning an interest in the oil and gas in thiscause are set forth and attached hereto.

(3) On the 16th day of May, 2008, true and correct copies of the Application and theNotice of Hearing in this matter were placed in the United States mail in Kingsport,TN, certified mail, return receipt requested, postage prepaid, duly addressed to theunleased parties at their respective addresses as set forth in the attached Exhibit Bwhich is hereby made a part of this Affidavit.

(4) Notice of this cause has thereforestatutes and rules of the Board.

y mail pursuant to the applicable

Kaiser

My commission expires: November 12, 2008

SUBSCRIBED AND SWORN TO before me this 10 day of June, (gghner,rr

»

Susan Peterson'~~ ~, PUBUC .'A ~4

+nlallll»»