BEPUEE THE VIEGINIk GAS AND OIL BOARD

AFFLICANTt OXY S gk BIC.

ESPAsu.tnssssusff OF DRILLINGUNITS FUE THE PEOQUCTS0N OFDlmacssstst GQE GAS, SHORT HULEGAS AND GAS FROM kNYADDFITIBIAL WELL AIIIIIGEISEDBY 545.1MI~C, Cede atVhglah, Iggg as~.~huwa as 'OAKWOODCOALBED MIITHANE GAS HELD IP)

LEGAL DESCBIFITOI I:

IN THE OAKIPMI) C ()ALBED MEHIANE GAS HELDIN BUCHANAN, Byma m s, AND TAZEWELLCOUNTTRS, VIEIHNI4(nuns t»»»»~eg ~ sm4 la SubparagraphT.b hehvv aml ln Eshgd: "k'ush sml harshreduced h m "Sdt(ate ) suds" )

) DIVREON OF) GAS AND IHL) DOCKET NO.)) VGOIbPI-IIIP.I52)))))))))))))))))

REPORT OF THE BOARDFINDINGS AND ORDER

1. Scoriae D os An»l Pts»e: This cause come oa for bosrhg bstoso the Vhghsis Gas i si I OilBoard (herohudhr %ea sF) et pdg am. aa Novanbar 19, lgpl and E 17, lppl la tbe Db I saonCeafosaace Bema, So«R nest Vhghh 45I Cealtr, Abhgdea, Vhghls.

2. s= == ='- Hovmrd G. Ssgsbury sml Marh k. Svnuts, A(terna)« ot Ksy, Caste» C h sey,Love 4 Wise, mul Ptgti ds Dussnho Bsagg at Hsg, Estgl, Harduhh, Gabh, Gehha aad Nebm, LC.sppsmud gsr the k»»ou c» Jmnes P. Jones sad ERsehetb ~t t kttmtseya, appemsd ter —= — =~Gss P~~~ Demdd hbnsen, Attorney sppessel for Laa IL Eegess B~Tnset Ne. 2t s rspptsmd fer Cahot OR a d Gss Corlnnatha; snd Sassn Lowry, Ltgd Asshtnet Sachs, vms psennd I tba(BHce «f ihe ktterntp 6 serai.

3. ' —kml Neth'lam«ed to Secthm 45.1'.I,Ig IIS„Virghis Cede, I I I as~,the Bear4'~: ~Rhss j~~over ihc ed((sct msthr. Based upon ths evhham y,by ~~, tbn Based ahe Ihds (bet tbe P~' has (I) aserchd dm ===- ia ~—'-'. s

d search at t»»o»»»»»u»te avagabh samem lo detesmhe tbe llwSFJ mnl ~af each I i araR «was; assi~,m s dnesal «oner havbtgas hheost underlying the Sdt(oct Lasds., (2) hase = = ."==

to eR plugm (»»»»~ = ==~ pesssafs) vdtetbsr ~ mm»»»m ta hugvtduds» e»»as»»»»ms«as» ~r—-"sue» - v. =. trusts, Jefat vantmm erotherhgsl eagdmangthdhy 5545.1~:I md~K»dSJO, »»»»»»»al »»»»» =—.» ~A»»» ~» ~I aaoaths ot thh hsmhg to w pubgsbal as reguhwl by I 45.1MI.ISB» Vhghh Code, Ipgg asW" ~ tbe Boasd h aby fuds that tbe nethes Shen huela ssthty sg statutmy svspdsommts, I udruh sogdrem«sts sml ihe asiuhman stsndmvh ot slate due ptoccm.

4. L ~t, it ihe thus of hesrhg, kppgcaet ~ih equeltfa cutsbgsh Nvme 5 Il iugmdts for tbc psodmthu ol coahed methane gss fram hug holes.

5. 1%n¹nss: Tbe Booed fbnh as fogows:

s. ky ygcsnt chhns Io own eg and Qss~coolbed»»ca»»» gas bases seller o e leases~n I Qce cfgbt to ncphca hr, derehy snd predate seedbed ~gas Sane 4 mansbel sw the TQhrseaa, ~bat not lhnlhdla Ihe Uyyer —— ~ Gcssnr ~M hSe~Lower ~~~ Upysr 3hcseyea, iSdue —~Wa I bosh,Lo cer lhcseyea, P=~Ns. y, .==——-~ No. 8, P ~» No. 7, Ps s nahs» ~ »» I P» ~P»3 ~ F I»vol Isns ~an4: cicala p844g&t ybcIMSM )~w»w I I Icthnof i hs hnds chanc on BshSdt rk» ia B»e» ReassS snd Tasnseg C~(h ~*» 'ScdthstLsaAP), wbhh Qhhgdt "4"h~beech andasalc i perthec tof.

b. Th Vhghh OQ and Gas Cocnenagoa Board, by ih Order No. 3M, dahd . 4 y 18,181 l, (hecoh "~Cocdhed Megtaae Gas HeM F)~hss»c s ~dr8 Ihg nnhs foc ag coalbsd ~gas wegs 4rlge4 Into snd predated gmc 1 h)ectyes wagon h tbe Sn)c)ec» Loads accept for those coalho4 ~wegs drawl II I 0 Ibegoh aces of sny worldag mhe or eny ognr conve¹oaal gas weg:

Pscsetthd Held sndyossssthn Unit Sse Wsg Lscsthn Wcg Cisssgksgon Order l4 ~ bcr

~.,~lelyQbocn, sgnsredr)She, atdts

AS coalscans behwrtbe Tiger

(hedndhgtho,Uyyer~GreasyCceeh, MhMhSeabeanl,Les)er Seaboard,Uyycr~Md'sr

Crash,Lower 3hcesyea,Pe .~Ne. y,Ps»~» No. 8,P»»h»»k» No, 7~~» No. 6,aealansslaa No. 5,P ~No. 4,P ~No.3,~» No. 2snd varions otherasenod scMRI sndassoehhd shale

key pointwhhh Ibedrggag n¹tsgowed byOrdtr No.OGCB 3-98

Oehweod Congeal GssPhhl I - CocdhedMethane (CRM) Gas

OGCB 3 5(5lkglyg)(Oshwoo ICocdhedMe&ass 6i sHeMIOs r)

c. Tbe 'irgiais Gss and OQ Board bas not heretofore»s ~ drggag nails I e gte~~of =.—-- — — geb gse heaa ihe Sett)ect yerssathn nadsrlyhg Snh)ng I sdspease sat to ih Order acnnhcr OGCB 348 4ah4 Msy 18, typg wheceh sech nn 1 cca~~ by the alpha/wmerh sycenn eet forth iheceh. To Ibe esteat Ihsd shee I ohgas P odncgeaend ycedncgon!haa sny sddhhnsl weg agowed ander145.1-361. II C.,

Cele of Vhghh, lpgg as smcmhd gurcefim "~tWcgts)") for Ii liestFoc mdbm uadcstying gtdgect Lemh were e —

by ibc RoenFc Order m e needOG CS~dated May lg, Iggg, ibsa ibc chighg mdh fer aad ibe SudacS» ii l seidcoe b»l~ges is hereby sa»h ssdt)ect io tbc terms ef tbh Onhr; -- — —,in

« " '««««h ««: '==.«4$ht«k«««~ 'KS««'l«««nN««all = " '$«ON«, «'~ for drRhg ucdh «=, under ibis Order sbag fogow ibs ms ~ I nhgsyh ~~ec~ by Order OGCB ~,but be fegoucdby «hP, e.g.,IhQhg I b I No.4-1 Fl;

k~ a«««o ls e Mswerc corporethn duly eutboriscd end lp&gghd io irecnoct I c I Inunin l n CommouwmMt ef Vlrghhv

Apl geant bes ~~mtod tbe mbdeg mothA and "doges" ecbnbysm ~ « ~ ~ycml hycd by cool operetom oa eml mehr tbe gub)cct Lends, wbhb::—::—:b huhibe me of otal!mann ea4 hagusN eshhg methods aml ibe~ cen s sl ofcoal md ===5m Item coal semss, acsochted chain, aud mbns bcgsce, dm s aad~Ila 'bdag. The hmh bccehed bcceia ece wbely or «~~ny -— I i tbcgeJI»IPomm¹sainll&gegdsctLaadsmo== =~~cfc»Nnd««c ~wbb b wig bo ~ ond produced by cerhm mstb»h ne4 ia caches I nmse««e m««« tbo In««ca~tarn ef maaaalak gob~ short bsh ges ea4 gae geom 4o s ~lWcl s. Tbe Oabweod Ceo%ad Ges H¹4 Osdcr succeed ea Mey 1g, 25gg —.—'-" -nyfern 4 that ibe seam bhatglal abase base dmractcchths aml choler ueomes c b asto b I treated es o coagN4 ~pool er «~v«««e«r«m~ an4 dh¹act Icos I ibcrcecil ml ~t p»ds,'he Ihard beech Nacho Sa4s ihd Ibs gtdt)oct gbs ~ ¹cnis e eal os degncd aud cued In Ve. Code ban. 5 45.1441.1et seq. The drggc 5 eih

-= by this Oner wgl hare ibe s»ae shape ond she es ibeec crested I; the

Oob mod Cealbcd Ges Held Order doted May 1g, Ippgi

IMI'ng ond dcrchpmcnt In tbc gelthct Pormetbm 'gcssm ibet ibc I» el lieddere opmaet wgl droh the rccevcrebh seedbed ~ges in each th%hg n J endibet ibe drlhhg mdh bcceby cceahsl me ~~y ~ss ead ———;.toc»cs er tbc cecovcrebh c»dbsd ~bydmcsrbona, t= - —

N I pts,ebon bole gm and gm Sem dcbgthmJ Walls from the gsdt)ect P~~~ «r~gub) nt Lemh. Tbe pcerm¹ca of wmtc and s«~of ceclelEthe ctgbts wig N I bcscrrt d by gcnnbag ibe regcf beech~kppl cent is ea opsmior ia the Ccmmonw»dtb of Vhgiah end bes sethli e thec»pc ccmcnts foc'pere¹»n ia Vbghbn

The egsf~ aml granted ls jmt and ceessnebh, h~ by =- -" t

orbh scs elMI wgl alford oecb person la e dlighg mdt Ibe opp»tmdty io c»o e 'rmccf e, wMumt = —

r =„each sech pere»fs juoi ead hh obese s tbcpP ~ Item such ucdt. 'Ibegraa¹ag ef Ibe kp«st ~mulrogcf I l~ l ulncdg nmse io ibc ostent Pondbh ibe gloat»I uMmeto ««««««««r of «««s«h I ««««

hF««««wl, ««N«kt « ' If'«C ~«- "bg

~hhs c aad pcehct er sssht la Ceetecthg tbc corcelo¹ve cigl¹s of ag pccaem ia I,Su@ ct Fonneibm in ibe gub/ect Lemh.

4. 1neet kaSu dtrt Ve. Cede knn. 5 45.1ML1 SI Scg., V.IL cd&45-22.2 SJ Slg. em i scbrcguhtieas as are pcomtd Sshd pursuant to low.

-3-

7. Beard Eat lehu: The~regeF la tbh came bo aad hereby is grmded by Ihe Vbg ~ c Gosaml OR RearcL Mere s ncRhngy thh Order hereby t

pol pmposm of gds order~ Iahgns Ihe Fogoubcg degcdtbnn Fec'hort hole gm, I a I udod

~ob gas, ond gas produced hum knun t Wcgn

1, gbart lhde Ges - Coatbed~gas produced gunn subsurface bwehob s ddch~co ddgod borieeskagy bein a laagwaR pand.

2. Geb Gee - Pcudmaioa Ftum Ihe deNrewd mca ssochnod wQh any 0 l seam

~ dracthm ef coal Ihat catmds abase acul behwr ihe udnsdcnk cm mm.(Va. Code 5 45.14C1.1) Thus, Unmstsd Gab Gas is hereby dsRned as I 1 dhedmethane gas produced Aum a vorgcal bocohete drgted la admnee of, *r R or~Ror mhdag gras tbe surgem Io a Pe)at — cny abase Ibe o-~ I a Pmgpmad. ds Ihe puml ls nduuL a gebbul mea focsm behind the INltMchg I s I tuaRaud seedbed ~cognac la Ibe dastard seem,

3. Gas Rnnn ~Wsgtsl - Gas produced gmm any k~ WcR 4 aredumhc'45.1WL20.C, Cele oF Vlrgbda, 1550 as ~.ia an =-'=8drRRag ualt ccbhh coatahu au edegag uoR.

b. u~ ~ 00ncco drggng uags For tbe fetwdag loads, wb(nh bmds mo sh ni s onEsb bit "k"~~ bewto aml made ~ part bcsuef.

n ~ on Ibe north by hdbude lha 37 degrees, 17 mimdes, 30 seconds (37'1 8 0");Oa i be east by loaghnde liae 01 degrees, 52~,30 seconds ($1'Ã 30").Oa be south by hcgtude Rne 37~ 7 ~.30 seconds (37'P 30 ), andOn i be uost by~Rne 82 degrees, 7 mhndw, 30 seconds (02'P 3IPh(Mn o parlicuhrly described on Eshgdt "8")

N 305.154.22

N 355A58.52E 1.010A05.54

N 300.518.00E 943995.54

N 30S.$1CASE 1.015~.71

Less aa I accept Rte 80ocro dcRRag uuQs alga@ed by the Raard Ocdcss issued in I a hctNos. VC 0%%-1115-158,VGOE%1-1110.140,aml VGOE%.-1115-180ia~~ ged

by 8 ~+Gas porbssceidpy aud lchfch 00onco nabs centum aR or a pest of a 4 4 Fnguait en ebgsbed by said orders.~~ tbe Move 00occo drggag units for the pcudncdon oF~geb gm <

'rtludo gm aml gas geom khMoasl Wcgs From Ibe pool in Rub)sct pornmbon uah 4 iug

PccndttedWcg Ca«nanna

yhM aa4Wcg C'='= c i

scene bchnrIhs Tiger

theUyycr Ssatuatd,Gceesf Ccech,MME ~~Letmr Scahcacd,Uyysr fecscysnn,Mhhge Besayaa,Wer Crosh,Lmser Hocecyca,P a I No.p,P ~NO. g,Pn»ha«sian Ne, 7P a~NO. 4,

No. S,Pn»L«alan No, st

P ~NO.3sPn»as«sian Ne, gsn4 varhws other

Qehuesd Can ~ I

Mathaae GssPtstd II - eeelhl l

~aasassa gae fcc s enf~an«lass geh, sl H as«In

endaapk='tnn Wcg&tgsd yunwaal I

0 49.14'%,1l IhdaCods, 8yg m ~ n ~ ~.

d. n~sn ~ tbc stm eml shape of each Sheers driging uait to be as steam oa St&I b~c lnceto {cith heuadarf units to be ggcascs, more er hm) cdtb Ihe es .~tocagu I for ucgc fer Ihe ~:==:of chest hots Sass~gsb gm eaim' s tuwk&Qh aal Wcgs to hc at auf yohst hc scdd esQs;

c. >~ I a mifecm method of s ~ia the Onhuood Coo!bed Methane GI s SctdIl Scr II a carhmc methods aad phases cfycednctton beth bcfsce, durtag ead aller le q wall

wbchg Sf the suldact ceal mmes. Syudlhsgf, the Board a4eyh tbe fogeutng mel c I forths s«sls «snit«as of tnnasssclaa ceccmw end costs Ssr chert beta ~ sassts«I geh and ~ S

Wcg ™~ef coaasd methane gas- —.———apus gce ytrtcutsr hwg uag s stagphw =.=~ to each gpcuse drggag unit. The dcciglwtsd operator ef eap I l ccrcdcggag mdt or mits lltgdn tba houndcstm of utdcb anf tong cnN pseud Ql ~ «

gunn u dch~geb gsc, shet hots gas or ges how enf 4==="=:==Wcg h IshaI» ~yc ~~aadcermmhassdlgnwihewhmyhwbctsg~' c Iblatach eg ssic4 gpcaae &ggsg mdt anile aarthcdsrs basal uyea Ihe sacgcce acssage s nchg4scse gdgtag uslt ectnegf~sdtbtn a hag cwg yeast m sheuu on ihe ~ c ocnine ylm. 4 ceyf of Ihe ycrthswt ysrtbw cf the mhw yhw hiag utgtmd Io» c ~product ans cercaue Inul arnis flem any effected ghocse &ggng lmlts shag he I i I I ofcccecd 4th thc Romd yrler to the yafmcat ef aay ~beard uyen each ~ n ~Ths for naia er division of interact lbr pc ~~ liam eaf Nvnro drggug nots ~I 1 Sedhy e lss l cmg panel sad fcom any~evmcd tract ia auf NICh gyucce unit s s i I bccelcuhn ct as fogocnc

1. fbtRaatshgo Coc- The~of ~I r~hewasg~~i ~ toI wh ghowe A(Rfag sak shaR he As cotta (~w a .— .' t ihcI sweet of eacgcw OMsgo la esg ORbds4 Rhsste IOIOllg wgl hlwel to 1 Ill lohlf

I aches awesgs hc Ao cathe hsfg swR ysael ——'wh ~ l fgfogI SL

I ats~ Gob Coo - Tle OWoest Of ysegediea gsegase4 ffNW es4, toI IA 045lo A(Rfeg vah sboR bo RN wgo w a r ~ I I t tbsI WHY of IWRWS ecsoaRS Is ccsf SSccta4~4cfRRcg esgt hawa Co f II l lehIIs cshw awscgs 'c As ssthe tceg waR 4eact(R: ssA I ~I I(Rfeg wL

3, 1 m Cos hoss Lac ~ 'IR - 4Rcr adeN of coal I Iafisg

c Scatfoeshf Ao4sfsfagefsatshaaa4 — -' ef -" Kafsegsd f asst,t N esNaat Of gW~:- RNIS gag le cethggosw CtfffetteaR i 4f botlewgo (—=:'a a ~~ Aat Ae~of swgwl MISIRS I asfc RwtsgghocceARRagswftbsawtetteistatswhceecacage 'c 4 s agee1 eg swR yes4 ~cash aces 4IIRfag seL

1 I(sr io lhs odsct — of scat ac(cfog =-—"—= hy RN Atshcg oi I isles

s I4 "—cf.':::Ofs hscg esR,gllgllpiigas RNsc;es~ 4cw II

~I NR bo ~ —sow oatf As ~~ebft hc sAfch.lhe ~h td i 4.

~mm i Aot ths Vfcgfafs GOO wcg OR:::::wag gwat sNR~ ., ewf.S==.=.—TlfcRS la asf +ac 4fRRSR Sgftfa Ao~~ .+~ ffct411

' 'f A(SOc4srowNasgteAeoatccg '~AS' 'awf

pii~ 4 Ar es a~~bash bp essf Roes4 OI4ct

g'0 ass"—'s coaRN4 ~~ ssfh (1) ~~~~~as4 & Il 1 or

fs Ao Oehocad ghf4 w4 (tf.thew wsRS—

W -. — OS4se4W4 H 14gt~Cf wt ~~%0tfsIfsseclkcd $ atra

4sRReg,aaftgsr Aa- -" ef chest fagegas,'

Rabies Sage I tewAORS, ff 4sss fa wlh: — ==: Rowg OO4wb the h ~ ee4

at the thaL

IL aw~ ~ Rent epee~ oscclsg os swhr as4 Is seamer~ 14th Ah Iwhr lt

~lk u . -: «4:—:-=-::IIPNIL4k=:wtfhhs, ssy ghocse ARRSR w4t aa4aycssfea4s —'tRRsesff setfc~iSSR I4 ffda4 hy a fs(fg swR yaccA:::='ww awl cs4h 4dlh4 as,

hew aay 4astof aa~44Rfeg w4t er heca asf gast ofaao Wd W'htse-~ shaR gN'R ~bo;~ w SNAI 444 ~~ tract sgRcfa OSA SSA NSNce %Wee catt, ' Owh f

-ast bg egesta.sdkyascs TIN1NSReaof=:.:'- le asf ghswe 44Rfsjg esR as4 actf ~~ eseog ccsct Rseafsc, ~SR cohwe bess eeteaRf ~ RNw wA 44RffsgtfaR aw

Iwg: . Or ~=" wftb scsRwt io aey Seae I~sh «h 0 bo 4ccwcl gcr OR ~~ lo be Ao ces4sss( ef sech ~r =-=ef gw Rwa sech 'sacg tsaot fs W(4Rhscce SSL

s I bc

t Reg, or

II echI dse

I theI w4I flag

tbs

j. Phwf4s Aat wlaac Acre ace sao or esse~osss4 inde or -—

o essc4INIAfs as glweo 4cfgfeg INR bccobf ~ RNosswe~ s JayvathRf ( Nof Asb'~ esg 4owtagl As~IWR es a eaftf Aat s4ssb ~ I e~ ~

asch os sde hase ast agcec4 lo w geol lhsh 'wf io 4ccctofI lbs A(Seg I s l as

~ aaS ayea yseysr - "-:'e Ae Seanl yweasal le HS.14f4~ VbRheh 5 aale,1$%se .Ishr)ShfsoaSnySSwwatbeysate4r eaSsehgsceeee ~ lsIsr~t sbe

h..~~~ sbes sn snbr se be heel bere)a be wese sshssse w of the 4h et e siss,17> lyyL

L 'bewSst~ —::ls----- —hleyserssaoreeessblla . 'sss shws!lyse otawso & lh-: byseabae, eraayetas44aassss, aaSheyesesshesasstssbs„lbe . " at '

yaaSsL 'a:: selbtaas os essaw seat ' sslfhsfb chow bo aal bsn) S w» SsaahsS aa4 tf 1S SS~

S osn 'Ah esSsr shaS be s5ssSse w et F-=—17, 1yyL

DONE klRs amm r ~sQe~ Sat ot AW~, 1%yS

t7'IRQRRA GAS ANS OR MANS

S~TOF In-

%4ei's.ShS)s'w

SFAM OS'IRQSRA )COUttFY OS WMl )

w ggs~Sat ot &~,~~bsSsw we e e I w7yebSs he eaS Ssr Sse C— —~Ss et VbSbih, ~Saaat Waaybr, bs)aS See~ M h awswl sey Shee be ls C—' ot Ibe VbShs)o Qw owl OI Soenl, Sak be~ fha sewe os 1 ees~~ lo So se.

Seaw Q. QeenasNebsrt kabSsSty nwwkgan osybes 7I RIys

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I~ 4MIsyeeeeeeleeg ihetIal i ~~avSaIIeII'eylae vhshJaIIeewkSSNeeNI, oeAe = =-:-=C=,

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