V I R 0 I N I AsB00K 509 PAGE 001

mmes TSS VINSINIA OAS AND OIL SOASD

APPLICANTs ¹ss«s««uTSS OAO PASTNM4SIP

POOLS OP Ssrossoouo INSSXLL~ SNIT ND«&44 LOCASSDIN TNS amamacws ««s««i«ass NSTNANS OASPINED I POSSSANT TO VA. Cwe$$ 4$ 1 361 21 ANS 4$ 1 361 22 ~ PcaTNS ~«CW Oy . SS NATONAL

OAS P———% PSNI «««&saon«

~TSSSA ASSOCXATSD ~TN {hereinOsllestively reforrisd to as«Coalhod Nsthaae Oas or «Oao«)

SSXLAXNO SNIT ussssoen N ii{hesein «$&geet DrilliSSS Dait«)IN TSS =::::=««s«s-ann NSSNANS OAS PISLD I~~XSSSSSAL DISTSXCT,-'«W

VXSOXNIA(tho «Ssdr)ect Lands«age euroyartIAsnlargy described on Ssshibit«A«at«~ hereto an4 sado ayart hhseef )

VISOINIA OASAND OIL SOARS

)) DOCSST NO

) 99 1019-0756))))))))))))))))))))

aapsnlT op TRS scnan

FINDINss Aas canna

l. Noooissc nato and rlaoos This natter cane on for fiaal hearinobefore tho VirsLnia Oas and Oil scard (hereafter «soard ) at 9s00 a.e. cnOctober 19, 1999, Osadereace Coster, Sreahs Interstate Perh, Sreahs, VirOinia.

2. «os Narh Sssarts, Sssysire, of tho Xire sssarts 6 4tuey,L.c., asysusid for the Ayylicant. sandra aioos, Assistant Attorney oeneral,uu g te advise the Soard,

3. n s~s~s~ nud Nssticos Pursuut to Va. Code $$ iS.1-361.1SLssg., tbs snead f)sds that it has jurisdiction over the sub)oct natter. Doseduyon the evtdsece Presented by Ayylicut, the soud also fin4s that thsAyylicant has {1) essrcised duo

dilly

Cence in ccnductie$ a search of the~Wy availahlo sources to detersion tho idoatity and sshsceahcuts of Ou

~nd oil ——,coal ounsrs, sdnoral ooasrs ud/or yotential cunsrs, i.s.,yorsono k4iaHtifked by Ayylioant as hsvieS {«ouaor«} os claissino {«clalsuust«)tho rk9hes to cenlhed Nstlsano oas in all coal soma beloss the Tiller 4ean,includiay tba Oyyer seaboard, Oreasy Crash, N1441o «s ~, Lcwer seaboard,Dyyer ~, Niddle SoruXson, Nar Creek, Losssr Norseyen, Pocabontas No. 9,Pocshosstas Ne ~ Os Posahcntas Nc. 7, Pocahontu No 6r Pccahcntu No 5gPecahcetas No. i, Posahontas Nc. 3, Pocahontu No. 2 and various unnaesd coal

800K m k@"'PAGE 06Z

sad resb steato ssenoiate4 tborouktb (hereafter "suh jootpecestkea«) La Subjest Drillinp UnLt uadsrkykny sa4 seeprkeod of OuhjootLande) (2) cops «~~ Lt bas okuoa sockss to those yartiee (hereafter~oestioao «person( ~)«euler Cefsrrkn5 to Lndkukduslsg oorporstkoaogyartnecehkpe, eeoeeLatkene. o Im, buck~, tenets, joint ventures orOther kopek eatktkbe) eaCLCls4 bp Vei Oude 55 46ol 341 19 Snd 4$ 1-341~ 22g tOnotion of Cbe N5ykkeatioa filed herein) sad (3) that, the c- -~ eet forth inoebkbkt N-3 basses sce Screens Ldencif Lod bg Aypkksoac thcouoh its duodklkyeses uOO ebp bs Ouasre or Ulokcbccts of Ooalhed Nsthsae Oas iatecosCs insubjost pssNsoken, La sub jose Drkkkkao Uakt undorlykno and ~ised of

uho hase not becetef ere spread to loose or sell tn tbeSyylieaaa end/ec Voluntarily yool their Oss interests. Coaf1 iotinO OssOuaare/o -'a Subject Drkllkey Uait are liote4 Oa OnbLhit O. Purtber,the Ooscd bes =~ aehkoo of this bosrkao to bo published as reoukcod hp vs.Undo 5 45.1-351.LS.O Nbssauyoa,,the Oosc4 hereby finds that tbs entices Okmsheroin ssbkofp skk ecohkcery reoukrsaoncs, onard rule cooukreaento nnd tbo~Lakeua ~: — of sCato due process.

$. ek kwskss None.

C. askkor ~~s liyplkonnt roOuosts (1) that pursuant to Va. Undo5 $$ .1-341.22~ Lnokudkay tbo ayylksnblo yortions of Va. Cods 5 i$ .2-361.21,tbe Reel peal all tbe ciobts, interests nnd estates in and ta the oss inSubject Orkkkkny Unit, Lnsludkny the yoolknO of tbe interests of tbo lyylksant~nd of tbo bacon an4 uabaow persons nosed in Osbkbkt 6-3 hereto snd that oftheir hanw aa4 uabnew heirs, oceoutore, sdcdnkstraters, dwksees, trustees,asekOns sed ewseseero, both kaaedkato nnd roeoCo, for tho drillinU andoperation, kaekudiaS, production, of Ooakhed Nethsno Oss, ycoduood faa ornll «co cho subject Drillino Unit ostohlkohod fer tbs subjeot pocaatkonunderkpkny ead oeeyrkeed of the Subject Lends, (hereafter eoaetkaescolleetkesbp Ldesakfked sa4 roforre4 to as Nell Develoyaent nnd/or Oyorationin ths Subject DrkllkeO Uait ), sad (2) that tbe Oosrd 4esiOnsto yooshoataoOse partnership as Uait Operator.

7. Delis! ecuutoda 9be hppkkennt'S rOOusoted relief in thee Cnuoe beaa4 becehp is oraacoda (1) pursusat to vs. cods 5 4$ .1-3$1.21.c.3,SeoebnatnoOes Pertesrebky (hereafter «Unit UyerStor«) is deskOastod as tbo Uait Oysratorauthorised te 4cill and oysrato the Ooskbod Netbaae Oao wll ia ths SubjectDrilliay Nake at ths looscioa 4epiotod on the plat attoohe4 hereto as Nnbibitb, subject te ths yeenit provisions eontaine4 in ve. Oo4o 55 $$ .1-341.27~.i to cbe debased oealbod Netbnne oas yield 1 order ooco 3-9o, dated Nsp15, 1990, ao !to 55 4 vbc 26-1$0 Nb gog., oss snd oil seoulstkonsg nn4to 55 4 lIOO 26 1$4 Sb NON, VkrOkaks Oao asd Oil Dosed Ne$ ulstions, all as

fee tkes te ties, sa4 (2) all tho interests sn4 estates in oad to theOss La Subject Drikllsy Oakt, iaolu4ie$ Cbnt of tbe Ayylkosnt nnd of tbe baounnn4 ~ persons kissed on Oshihit O 3 y attsohed bereCo and nods a porthereof, aa4 their bassa aed unbntw heirs, eaosutnrs, ~kn(Motors,derkoew, trustees, soekOns aa4 suoooeooro, both Leaedknto oad resets, bo ns4tuunNvg sse pooled La tbo sub jest torentken Ln the suh joot Drillkao UaitundorlykaO aswl ooaycised of tbo Subjoot Lands.

Sub jeotSa»a»aaiaa Bait Skaa

uu»;

PsrnittodWll Coeatianl ~ 1

Pis14 andSall Claooitiaatina

PAGE (y Qg

hi 1 oosl- lyyrenisa-be4s aad tely OO

ooal ~ sore sOuarebelow ths drillinO'tiller unitSsm, iaoludinygbut netliektod toOyyer Sw-hoasd »

wcwca~W, 5euer~=M, OS}geresJ~S ~~»I»a»I»j»ea c MurCrush» LowerOouooyos, yeoohw-tao Dos. 5, S, 7,5, 5, 4, 3, 2 onduarleuo»»aa»»»»a~ewo as4 ~latedroolr, st,rata

}coll CSSI POPO44 l.s lo-oated isSubjeot Drill-iaO Oait attho looatiea4syiote4 oa thsPlat sttaotedhereto asDsbihit hte ho 4rillodyureaast toPersit 44245to an ayyro»nisat ~ dsythof 2,332.00i'eot.

Cat«ood CoalbedOao Piel4 Ifos Co@Shod NethawOas P~~ iaadusaoe ef siaieyLsoludiny Oastram aey additional Nell huthor isedPussuasa Co Va.CeSs 5 45 1 341.20

COCS-aseaoadad »

(I

I yieldRules» }

Por tbe Subject DrillinO VsitundsrlyinO aad ooeyris«l ot tbe Subjeot

LM4 referred to asc

Snit Rusher O 44Suobanss County, Viryiaia

Puwwet to the Cahuuod I yield Rules, ths Roard bas sdoyCed thetollowisO ~~ for tbe oaloulation ot production and reuenue asd allooatioaot allowable oosts for tbs yroduotion of Coalbs4 }Cstbano Oas.

sar swan mal aaa. - Sso shall be yexluood tree and allooate4 to onlytho ~ drilkhcy unit in whish tbs wall( ~} is looate4 aooordieO toths usdiwidod interests of woh Cwaer/claissat within tbe unit, whishusdiuhdsd iccteseet shall be tbs ratio lwyroowd as a yor~} thatths ~ of siaeral soree5s within woh ssyasots trent that is withinths ousrjost Drlllieo Snit< when Platted os the «cctaoo, hears to thstetel adsorb aoreoys, whw ylattod oa tbs surfaw, sustain«I within tbo~ecise ~re drillino unit in tbo sensor sst forth in the oahwood IPie14 Rules.

sleucioa aad slaociaa parkadt In tbo event any Conor or claisantnosed Sn ScdLShit O-3 horeCo dow not roeob a Voluntary aOrowwt to share inths oyeestiea ot Ciao wll looat«l in tbo Subjeot Drilliny Unit, at a rats otysyseet cucteally ayceo4 to by said Oas Conor or Claisast sa4 tho Oait

800K 500 PAGi

Oysratorc Ohsa soeh Parson 00004 w¹y Olaot oss of the OPCions soC foFth Layarayrayh 9 boles ssd swot OLDS written SSCLSS ot his olootion of ths oyCioa~olsotad wadac paa ~~ 9 to ths ~'SLC Operator at ths address~how below withla thirty (34) days fFW tbs 4000 this OF40c Ls ----— — Latba Scanty Shows assed. b CL¹sly 44eeCLea shall hs —— to hare bees 0040if, on er hstese ths lest day ot SSLd ~ peeled, sash elestiay F-- ~ hasdelioered bls wrlttsa elseCiea te tbs S ~— oait oyacatoc at the a4dreeeshowa below ec hss dalp —::-~ead ~c~ its wrlttoa oleetloa La firstolass oalced ~~ eall, yeoCeys prepdld> ~~ te the Snit opsretec atthe — =-- showa below.

9,1 cccct~ 1 - %¹ nortloicwcoo sa 5%0 %011 ~1~ awe cwcocwtcccotbo-awc»I~ SSLCI bay oas dwaor oc clsiwast nosed la hchibit o 3 who~SOS aot reach a wtwsaocy:: with ths Oait Oyeretec wsy eleotto ysrtioly¹ts La ths Wll ysoelopsaat aad OyeraCLSS in ths Ocdr)eotOFLLLLSO OaLt Ihereattoc paFClolyatiay Oo ~ ) by eycosLSO te Paytha ostlaete ot Swah yactioiySCL¹9 Operator' preportc-tha osteal aa4 F ale OOSCO Of tba pall yereispeaatby this OF4ac tor Ose F ywrswant to tbs::: I yield halos,LaelwdLSO a:—:::10 ~ Lalea feac as awo partionlarly sotforth la VLFOLSLS Oas aad OLL board beynlaCLSS 4 1%C 25 ldd 140Ibaoeia idsayleted-ter yredestlee Ooetsi) ywrtber a Partioipeciayoyorecoc - to yay tho OSCL¹oce ot owh parcleipatiay oyorocec'c ~ Loaata part et ths 0~ted tsr-predwshioa Cost as 000 fecthbelow ts the OSLC Opacatec wlthLS forty tive (45) days trm the laterot ths 4ate et SSLLLSO or hs date ot reeor4LSO ot this Oodsr. 9ho

dsc-prodwotion Cost hcc ths Feb(cot OFLlli¹9 Unit io asf01~IOoayletod-fer ~Lon Cost I 3293,144.70

partioipatLSO Oysratoc'0 proyortieaate eeet horewa40F shall ho tbsFosslt obtained hy swltiplylao Lbs yartioipatino operators'nterest inOSLC~ CLWSS tho Cc '~ter pradeetiea Caet eot forth aheoe

that la tho event ~ PartioiysCLFO Oysratec elects toPsrtleiyots aad fails OF Fetaeao ts Pay ths SSCLIWCS of hio

— =Leasas yart ot tho o ~~ter=~~LN Cost as est forth~howe, all witbLS tbe tLSS set~ barsia asd ia tho ¹aa¹oc pcesecibodln ~~ O et this OF4arc tlcaa Sech partLOLpaCLSO OyaCaCOC Shall he

Cs bees sleeted aet to ysrtieiyaho as4 te hare eleet04:lon Ln lien ef partioipatioa pwreaa¹C to yacaycaph 9.2 heroin.

9.2 Sosicco 2 - Fw aoookas 0 oaob aowcco ~'~cene In lien ofyarcielyatLao La tho MLL lecwl~ asd opsration ia swb)ootQcilliao onlt wa4oc pareossph 9.1 Shows< a¹y oas owner oc cia~sasad la yrhihit o-3 horace wbo 4000 aot Feaoh ~ volaatacy

with ths oait oyorocsr aay sleet ce aoospc 0 oasb beansasaeldaratlea et 31.OO yec,'et ¹LSSFSL ao» ewasd by swah yeceoa,———Lao Fyoa escry of this ~ aad oostiaal¹9 ~cly ascii

Of PrsdoetkCe fFm Sob/Set Orllllay Fait c aadthereafter a royalty of 1/0th of o/debs (twlvo aad oae-balt

BOOK 500 PAGE 065

yeceeat (12.5C)) of tho nst prose«LS ceosived bf tbe Onit Oyeratorfer ths sale od tbo Ooslbod Nsthsae Oss pr04used fry any DollDeveleysaat and Oysratica severed bf this OF4or WIltiyliod by thatjsaii~ s facacest Ln DSLC or proportional share of said pÃ44044lonla &aLI a,~::::~iw~~s.cesailled Lees poet pcwbstion sects Lnouccud 4Inaetceaa of tlauellhead, inelu4Ley, but not LLNLted to, yetberiay, ~ -Loa,CFSSCLSO, tce~stioa sa4 aarhstief ooets, uhscbor yerfeceo4 bfNlh ~ Niet ~ra/ \d, ~l W ~ia&1

Lea te he paid to said Oas Ounce or CI ~. TbeiaitLal sash bonus shall bosses 4ue «ul owinO ubea so sleeted and~hall he tsedaredg pai4 or essceued uithie One hun4cwl tuant)'

22D) dspo sf ceeerdiny of this OF4sr. 9boceaf ter, saeual cash~eaasoe, Lf Ref, shall ~ due snd Iwiey oa each snaiverearg ofths date ef resocdLSO of this ardor ia tbs eveat prodeetion frySubject DFLLLLSN NSLC bas ast thecetofece ~sed, snd onoe 4ue,~hall hs teadaced, paid or essceued vithi,a SLcty {OO) days of sai4~anivsroarf 4ats. ossa tho iaLtial sash hoses and tba aanual oasb

, if aaf, ar» so paid or seocewcd, subject to R final loyal4s ~i~ion ef ——MLp, said papsant{s) shall bo setiefsotionia full for tha riyht, Latsrosts, aod elaine of suob olsstiny

La aad te the Oas y).oduoed fcea Dubjeot poceatlea in tbsSubject Lande, onooyt, bouever, for the 1/Dtb royalties dus

~abject to a fLnal loyal doteceination of cwnorsbip, tbo election~eds under this pacsdrsyb 9.2, ebon so Sade, shall be satisfactionLa full for tho FLOht, interests, Rnd olaies of «Ish oleoCLSO

Ln aef Nell DevelcNsNSC and operation covered bocSvf andessb aleICLSD person shall bs dassed to «I4 hereby does lasso andSOSLOng Lte FLObtt LSCCNedtog Rnd OLRLSS in an4 CO tbe Oae~~ fcw Duhjeot tarnation in tbo Subjeot DrillLny Snit toCbe ibyyli,oaat.

9,2 qua~ $ 90 sass Ia rba %11 newel~ nnd Iaasa4.ss no aSLRLaatino aavoon Oa 2 Sa~ Danie and klo aaoaivo

0 In ~4 Ca LLRR nf 'ORJCI 1n lieu of yartieiyatino ia the~1 Dwr&~ and OD4rsf Lon Ln Subjeot Drilliny Oait naderDscayreyh 9.1 abave aa4 La 1i«I Oc Ceoeiviny a Cash DonneOSSSL40FSCLea ua4oc'srayfspb 9.2 above, any Oas Ouaoc or Clahacnteased Ln DSDLDLC D-2 bpcets ubo does nst ceaob a voluntary

uith tbs Snit oysrator erf alert to share Ln ths DellDeveleyaeat swl Oysration of fuhjeot DFL11LSO Vait oa ~ secciedbasis Las a Narc'104 Nail flyer«ter ) so CIRC the ~~CLonate

ef tbe ~l~foMPFSOMCLSS Osst bacobf allooahle to sushOsrcied Nell Oyacecer's LIICerest Ls obacNod eyaiast sush OacciedNSLL Oyaseter'0 share of r—- — Loa fcem Subjest Drilliey OSLC.Dash Oasriod Nell Operator' FLfhts, iateresCS, Rsd sleias Ln sndto tbe Oas Le Duhjest Drilliny Oait shall be =::—-= aa4 hacehg areSeskycod Co Cba Ayyliosat entail ths r- fern tbs sale of «IsbOacrLod Nail Oyeratsr' share of ~Lon fera Subjest DFLLLLSONSLC {essluoive of Rnf cofaltpg ~s 0F overridiny copaltgg orother - ~RCLSD or aon ooet-bona'Lny burden rooerv«l Ln any

BOOK 500 PAGE CG6

lease, assi~& thereof or aycesmat rolatiny thereto oovarin0~ush interest) «Iuals throe hundred pscsont t 3009 ) for a Leasedinterest er two hundred pecoosC {2009) fer an Unlease4 interesttwbiehecer is applisshle) of snob Carried Wall Operator' abaca of~~fe~codustion Oust alleoahle to ths interest ofsash Oacried Wall opssator. when the ilpyL Leant ceceuys and———~ fern sash Oarr3ed Wall Operator s assi9ne4 interesC the

'rov%<dad fsr above< then< ths aseiynsd iatecest of suoboarrio4 wall operator abaLIL ~~Leally cavort bash to suchOasrisd Nell oyeracsc, asd few as4 after sash ———-Lea, snobOaccied Wall Oyecator shall he treato4 as Lf it ba4 pactioipatsdLnitis119 uedar parayeayh 9 1 sh«<es an4 thereafter, snobpartksiystisy pnr««shall bo ohacyed with aa4 shall pap his

Lanate yart of all further oosts ef suoh Well DeveLopaontsnd Opecatios.

~object to a final loyal doteceisation of ownership< tbs sleotionendo un4ac this Parsyrayh 9.3< whoa eo sa4s, shall be saCisfastionin full fec ths riyhts, interests, as4 elaine of sash sleotinUyecson ia any Wall Devoloynsst an4 Oyeratioa ——.—M hereby aad~ueh elestiay ysrsoa sbbll bo ~ to have snd hereby does

ite riohcs, interests, an4 olaies in as4 to tba oasyreduasd f«m suhjsst porsahion in tbe subjost DrillLnp Unit totho bpylioant for tbo period of ties during wbiob its interest isserried as above provided prior to ics reversion bash to snob~Lootiny parson.

10. Wut1ucn ts p«ssoclv Rlsac< In tbo event a person nsaod ia Exhibit9-3 hereto dose noC coach ~ voluntary eproessnt with tbo Unit Operator andfails te sleet wLthia tbs Cine< Ln ths nasser aa4 Ln aooocd«w<s with ths teensof this osdsr< ono of cbs alternatLI<ee set forth Ln parsorsyh 9 above for~M klan < ge li<<, tlN < pSC Illall < --——< < l~not to ynrt~ ia Cbe proyosad Wbll Devoloyaent asd Oyocatioa ia SubjeotDrilliay Wsic aad shall bo ~< sshjest to b final loyal detereLICatisa of=—~ ce have slesce4 co aoseyc as saciofastien ia fall for snob yerson'riobt, Lessees<ca, sn4 olaies Ln as4 Ca cbs oas tho oonsideration provid«i inpacayrsyh 9.2 above for whish its i<Meant <fsalifies an4 shall hs ~ tobove 1~and<ter assiynsd bis rioht, interests, snd elaine in s«l to tbs oas

fans subject pscestion La tbo subjoot Dcilliny Uait to the byplioaac.=—=——ube fail to properly sleet shall ho ~, suhjoot to a final loyaldstasskeacies ef ewnerehky< to have asoeyted the soayeasatLon and tens cstforCb ~ at paceyrspb 9.2 in sat isfest ion in full foL ths riybt,interests< snd elaine sf snob parson in and to tbo Oas produsod fc<« tboSubjest paeeSCLes usderlpiny Subject bands.

11. ~~ac ev nsrtisioucius cucssn< In the event a yorson nasal inScbibit D 3 olssts to yactisiynte under Pscayrayh 9.1, but fails or refuses topap< to assure tho yapnent oc to saba sn arrasymont with tbs Usit ayeratorfor the of snob person ' proportionate pact of tbo Ocepletsd focpc<n3ascdsn oosc as asc teeth benin, all wLtbin tbs ties as4 in the nasser assr———Abed is thi ~ Ordsr< thon ouoh person shall bo deuced to have withdrawnbLs alestiss te pacCioiysCo aad shall be ~ to have elected to aooopC asoatisfsotiea ia fall foc such parson' riyht, interest, an4 elaine in an4 to

800K 569 PAGE 6 ()7the Oas thu eonskdseubkoa ycoridod La yacagroyh 9.2 above for whish hioLatesedt osOLLfkos: 'a tbe oeoaso bur4ono attaobe4 to ouoh Leterest.

aay sash beaus sensi4ecaatkoa dus as a result of snob~l «1 ~ 0 — ——,« ~M~ w «Oge«Lolahundred twshty {120) dago after tbs Lodt doy ea whish sash dsfoultkuy yoreoaundec tIke Order ~)¹ haus yaid ALO ~~~ yact of snob oust oc~id hews osda sstksfosuecf acr= 9 for tbe thoceof. Ohon sashoash beaus oeaekdecatken Ls yal4 or eeoSewed, Lt shall he satisfaction in fullfor ths s10bit> ''«~s, aa4 olakes" of euoh yscssa la an4 to ths Oaoua4sclyiay Cub)est ysLLlkuy Makt La tbe Ouhvteot bands ~ beoshS, eaeeyt,b- —— Our awf reyaltios whish weal4::::::4uo yucouaat to yaroyroyh 9 2hereof

12» ~~ oc ~~~a Ia tbe eront ~ Serosa naee4 ia yah)hit 5-3 Ls: to swash a uebu¹tocf ~~ to share La tbe Mallaad oyssoo Ass ~ l~~ by thLo Ouduc ot ~ rate of yaSeaat syruad tomaCeslly br sok4 Ouuec er Clsieaat aa4 ths Cait Oyscater, an4 sash yecoon~Loots oc OaLls to aleut to do other than yoctkoiyhto undec tacaoroyh 9.1abuse La tho ~LL Oe=~ an4 Oyeoubioa La advteot yoceutioos ia sub)outSrilliey Osdt, thea sub[est to ~ fkasl Loyal deteraknatkoa of ownsrehiy, ouch

~hell ho — — te have on4 shall baua «~ sate Ayykiaaat euohyecson'e ~e LilCacsets ~ aa4 oloilus La aad to oak4 well, and ether shoreycoduetkon ho uhLoh suoh yecson any hs yntktled hg reaeoa of anf eleetLoa or

election horeusdar Ln aooordanob with the yruwiokono of this Order~~ aaL4 oleotkon.

Mnit ~atnr lnr n ~«~II 9 ~ Oao Partaerehiy be andberohf Ls des1yaahs4 as CnLt oyoestlkr auLharkaod to drill aa4 oyecosa thsCoslhe4 ~~ Moll La Sub2eot Peruution la Su)r)sot Drilliay Oait, all~ub2sst ho tbe yosekt yrouisieno oontbknbd La Va. code 5$ 49.1-301.2705 00)b.gSS 4 VAO 2$ 150 Ob ~., Oas and Oil Nuyulationo) 55 4 VAC 2$-100 Of, Ogg.,vLryiala oss and cil Seard Awsulatio¹o) 'tbe «~ ~~ Oas tie14 I cc4oc0000 ~ aL1 as:——::tarn tins to tine, an4 all elections rsyirirei) bythis Oe4ac Shall be ~Looted to un)it Cyarator Ln writL¹0 at tbo addressshowa

bakes'ooshontasOas yactaorshiy

O. 0ou SSValuef Loldg VA 245059bones ($40) 900 101$Fons (540) 900 105SAttn< Aoslio K. Arrinyton

Ld. --———of ~utinuua Psrekt ¹uaber S209 Was issued On Auyust11, 1999, for Moll SWISS bf tbe beyarteent of Nines, Minerals andynecsy, 0LVLokon ef oas and Cil. Sho Onit oyscatar shall —::::==:or souse tobe oysrsakons fec tho drilliay of sai4 Moll vkthia seem huefred aodUatstiy 4sye )930) dago fam the 4ate of 1 of the Sesakt foc seL4 Mull,~ad shall ~~ the ~ with 4ue 4LLLyunoo. If the Onkt cyocatoc shalluet bouc ao::——:— aad/ec r- ----otod, thea, snooyt for anV oash ~ theaysigobke ~~, tbko oc4or shall f~l~~~g otherwiso, unlace eseuertoc ~~ ASi tbe beard, this Order shall onykr ~ at 12s00 9.¹. oa tbo date on

BOON 500 PAGE ;08whish tbs wall bg this 0¹4er is c ly abandoned se4 yluyfod.Sowovor, LS the sweat sa syyssk i.~ tahoe fern this oc4sr, thea tbe tine

tbe filiay ef the 3etitLon for 3yysel sa4 tho final order of tbookroukt eesct shall ha deluded La oalsukatkay the twe year yecie4 nfonaoedbenin.

ii. 'it OyINM, la ~il i ii ~ iiiiafforded —,shall baca e 1Lea sad a rLOht of eet off oa tbo Oas~states, ckyhts, sad k==-e essed hy eay ¹ ~ «O$eet hecato whe oleoteto yect'c'~o undec 3ucoyceyh ¹.l ia ths dub)est orillkeo Qait to tbs ostentthat costs knsuc¹ed ka tho dckllkao or oyscetkoa oa the dub)est ockllksy onktars shsryeahke ~~~ snob ~ — ~ Leteeast. Ouch liens ond rkyht o! ¹etoff shall be eeyssabke ee te sech eeyarste yecaoa aa4 shall reeaka lksas uatilthe Oait ~~ drillkeg ec eyeeetku9 eey wskl =—-= hereby bss bosn yai4tbs full ~s 4so uad¹c ths tares of thko O¹4ac.

ld, —— ¹wowkwiuuui

Se Onkt Oyecstor —~~ to tbs beard that there an nounbnown or usl~~ Ojkakeaats whoso yayeents ace sub]sot to tbe yceckokoooof yscayceyh 14.1 heceedl s¹4 ths oyecotoc bao ~~~ to the osa¹4 thatthoro are as usaf lketkay olekosats ia oub)eet ocilliay oait wheee ~~s are~ub)eot to ths y¹ecksks¹o ef yacey¹¹yli 14.2 hereof. Thecefen, ualeee ea4until otheswkeo o¹4ss¹4 by ths oser4, the oss¹ew 39eat noasd beeala or nay~ A iii ~ i ~ ~~ ao ~iW iai~~isg~oocew eoasust foc ~~ Orillkay Vait ec te ceeakus or sooeunt to the boardyuceuaet to Lts ~ 'ec the ——— funds hereafter doser kbsd inyore9¹eylis lo.1 oc lo 2 for the unbaown, ual~~le i or ooaf list keyClakaeats s

first Union Oatienal bashOocysrato 9¹ust 3%1324123 youth O¹sed Otreetyhklsdalyhke yb 1%309 LIOOfal '::I {21$) SOO-34OO or (OOO) 66$ 33%3bttent keel Oan Oakl Laghaf f

lo, 1, auowuw swwwk~ ¹uc ~ uc sul~~~~ ¹uwwuuws If nef~ ef b¹aue, royalty ~ or other ~ 'dus end owkayundec this dudsc sanest be aa4s bsoeuee the yereoa oatitledthereto saaa¹t he located oc Ls unhnewa, thea snob sash bonus,:,or ether yoyseat shall net be ~ked «Ltb aayfunds ef tbe Oekt Oysretor ead, yucousat to vs. 0edo 3 i5.1-341.21.9, sai4 ems shall bsi 4¹yeskted by tbo Onkt Oysrator intoths Seesaw beeoust ~-::kay within ~ hundred twenty {120)defs ef ¹aas¹4kay ef this O¹4sc. aad soatkauiay thereafter on a~eetbky beaks with snob dsy¹skt to be sade, bf ueo of a reyectdecant ~= by the I~, by ~ Octo whLeb Lo ao lstec than~katy )OO) 4ays after tbe list 4ey of tho eoatb bekny reysrtod~ad/ec foc whish fus4s oce hokey deyeskhed. Ouoh fun4¹ shskl bebal4 fer tbe oaekuekve uoe ef, eud sake benefit ef tho yocoon~atktle4 thsseto uatil euoh fends sea b» yak4 te eueb c- ----(~) ocuntil tbe Ooscew by¹at nlksOukeboo such fuado as nOukred bf leer

10 2

~c yaresant to Ocder of tbo Ooard ia sooordaaee «Ltb Va. Code 545.1 3$1~ 21.0.

B00K 500 N,GE ",C9

SraakoJoaa Sar ~1lotims ~i~~ ~oe Ii any pnpeent Of~seas, repaftp --~, r-—::::ia of onyoiay operational

or oCher ~ 4se ead ssiag endor this Order sanestho ends ~ ths parade dsCLChed ~ esaaet bo as4s oertsia~so te esnflietia$ elaksw of ~~ as@ac a 4sfeet ac clead onths title, Ches sash etch henna, royalty yepeseC, r-—~ in::::::ef ~~ epersCLnndl: —:::or ethos pafeent toyethersich yacciefyscino ~~~'e propert~ Ossts paid to waitieecetac ~~ to Psrnye)yh $.1 heraef, if en@, {I) shall not

led eitb asp faa4$ ef the WnLC ~ I sed [2) shallyscwwnt Ce Ve Osde 00 45 '2 303 22&of r 0$ 1 301 22 h 3 sa4 4$ 1301.22~4, he ~'ted hg ths Ov--- -- into tbs hoeeantsdchin eae bandcod Coachy (L)N} dopa ef -~Lno ef this os4or,snd eaeciaaiao theeaefter oa s ~t basis eith cosh 4ayseit tohe lMlas hy aes ef S rayert feaena ~~ hp the Iaeyeeterg hf S4eto shish Ls ao Later thea sistp {$0} 4ape aftec tha last dsp ofths aseah hoiay reyecto4 ~ec foe'bish fends are eaArJeet to~ayoslt. Wash fends shall tw held fer ths ~lasios aee of, asd~sie benefit ef, the yereoa oatitle4 thereto astil sash fsa4s esahs paid to snob person] ~) or sntil the Oeeros AOent rolieOsiehos~acb fends as reOairod bf lse or pursaaat to Order of the Osard.

17. ~inl rLndiosaas Vbe Woard apeoifieally snd specially findse

17.1 peonhosaLas oas partnership is s viryiais oeaoral yarcnsrsbipef Oenaelidatioe Ooal Oasyaef an4 ==::== Ino. Applicant is

4sLg snchesisod sed osakif 2nd to traasaoc hasiaees Ln tbeCh of viryiniat

11 2 p ~ Oas partnership is sn operator in the ~=:-:::4thofvlrOLnis aa4 bas satisfie4 tho Osard' reOsireasscs for oyecatioas inVLee&aia)

11.3.ysoahoatas Oss partnership> elsias ewwrehip of Oss leases,~~~ ~~,Oss losses ~or coal lessee rsyreeentiay $9 95005of ttw «Ll as4 Oas Latlersst sa4 140.00 yeroenC ef tho coal

Letaeest ia Oa)rjeet Orillisy OsLt, sn4, 0 ~~ Oas partaocohip'~ tlw rlObt to enplore der, daoeloy and yredsoo ~~ ~~~as f~ Oab~ positions ia'~~ Watt =-- O-dd ia ~~p, VLeOLnin, shish Oah)oet loads ase ~ ysrtieslarlp dooecihedia Osblhit h g

11.~. passsent to larait 4$20$ Applioant yropeeos to drill Mll cW-pop-NCL at tho loeatien depieto4 on tho ylat attaobod hereto as orhibit bte drNwlep tha ymwl of Ons in Sa)FNet sasnstionsg

17 5 Wbs eetiested total yeo&ustinn frcw Akv)eot 0cillin0 Wait is 12$te $$0 lMÃ. The estieste4 secant ef rosorros frem the sa)r}eetorilliny wait ie 125 to $$0 )Nepg

eood 50 () varE 61017.0. SeC forth La Scchlhit 0-3 is tbs ~ an4 last hnoccn address of

~ssh Scenes or olaiasat identified hf tbs Snit oyeracor as ha@iso oroc«~'~ aa Lao»root Ln tbe chic c~ n«'c Oas ia sccbjoot pnreacionLa ~r srillieo occlt nnderLTLno sa4 oeayriosd ef Scchjest 1»sds,cdce hns ast, Ln eritiay, lensed te ths syylissat er tho saLt oyosatoror oosssd te colcccccarilp yoni bls iacereece ia snhjeot srilliao oaitSsr Lts dec»0 t. Tho Lntiesaste of tbo ~:=—:tolisted LnsnhdhLC ONI ooeysies 0.03004 pdroeec of ths eLL and oas interests and0 00 — of the mal Lntesdsts La Sehjest Srilliay Oaitg

IT.V. Syyliosat' ericlseos established that thn faLr, —::::::1»nnd~cc~ -------~ion to hs ptid te aap yessoa Ln lion of the riyhtte yartLSLOCCte Le aay ~11 ~c'-- hereby are these Optiene presidedia Ssa ~ 0 shsrec

12.0. Oho relief =—~~ aa4 Orasted Ls jesC an4 r ~lo, is~~ hp SsheCaatinl ovidenoa an4 will affer4 snob person listedeased La Sshihit 0-3 bdrato the eyysrtnaitp te res»ver

CCCCeeioec eithent ~=—=~ OCCyeaee, SCCOb porose' juot aad fair~Scene of the ~ Lon fnoa 00bjeot Orilliey Oait. The Orantiny ofchs spylisnclsa an4 relief -~ — ~ thereia rill eaenre te tbo~ehesC possible the Oroatest Cclticcete rooecerp of oool.hed aetbano

or assist ia ~~--.inp tbs ~Lens tpyes of ccssteyeaMJsLtod hp stscsts aad Pfcctsst or assist Ln prstestiny tbooarsekative rLObts ef all persons in tbe ssbjeot ~ seeress o!~ccyyLF La tbe Scchjsot I»ndo. Tharefero, the Soar4 is enteriny anOsdnr orantino tho relief heroin ost forth.

10, eakLLoe es oceano and rilcncc nr afMnoitc jcppliccant or Ltoattorney Shall filo aa atfidaccit ccitb tbo Soon»tarp of the board within nicety(00) dapo adcor the dace of rooordiny Qf this order scatiny that a tree sndoorreot soyp od oai4 Order eao sailed ccithin sscan (1) daps few tho dote ofits ~~ ce sash hnncca nnd lccontehlo sseyoadesc, if anp, nosed in scchlhit0-3 peeled by this Order and to snob ~::::=snead in Srhihit S cchosoolakee are sCchjest to tbs eesrcw roOnlrod»ats of this Or4nr.

~c~ccnw. od snit ocmcmccoc The sireoter shall pcoccL4e allneC sob jaot to a lease ccith =:::-3» aooeso to all neoords forSrlllfay Snit cchieh asa scdcelitted bp tbe Snit Operator tn said

bisector sad/or lais Iaeyaotsr]s[.

30. ~c «~c Therefore, tho reycostod relief and all tares andPoly'Lsioas seC forCh she%» he snd berobg are OranCe4 nnd IT IS 00 CMMRRD

21. n c~c byyeals of this Oryss aro pranced bT tho provisions ofva. oe4e 0 00.1 301.$ cchish yroccides thee aap order or 4seision of tho boardenp he ~'ed to tho ~~Late oironit oonrt.

22 ~ sdfncccion assoc This order shall bo offooticco on the date of itsonoontiea.

10

BOOK 500 PAGE 011+7+,1919, hy y ggy

of tbs VLeFLais Ias and Ll Soar4.

Chthscan, ~ R. Ny41er

~P9tH ZL wy teak N, 19M, hy~ f

I %i&cahsticCI Friesipal Naesutive to tbe staffVLrILais Ias aad Oi.l board

ITRSN IF VRNQÃ2k )OIINyy IF %%$0

ea tbLs P/~ day of M~~, 1999, Fereonallybefore m a notssy Nubile in aa4 for tbs r=—:~thof virILnia, sFFeared~enny Nasyksr, beie0 4uly seers 414 depose an4 say that he is Obairesa of theVirIinia Iae sad Oil Nossdy that he oeecncted 'ths sose and was authorised 'to do

suoan I. IasrettNotary Fublic

Ny ooseissioa aspires July 31c 2002

IRk%$ 0F VSNI2N2h000NFy IF NDINXNIRON ) 5~

40ed ea this Q) day Qf ~i 1999i 0 sonallybefore es a notary Fublio ia an4 for t+ C —--~1th of VirIinia, aFFsaredDyron Ihseas Fuxesr beiaF duly suorn did::: sad say that bs is hotiaFFriaoiyal ~Los to the staff of ths VirILnLs Ias snd Oil board, that hs~scouted tbs ~ sa4 uas authorised do so.

r (7Diane J. DsvgNotary Fublio

Ny ooeaiesioa esFires ~~ 30, 2001

11

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r)LJ

~ B08K500341,215.40

024.981.72

80 ACRE UNIT

CBN-PCPN44

I

I

2I

1

N 339,343.18E 1,024,914.74

N 341.145.84E 1,028,832.95

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yl(( ig

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ji f

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N 33OO73.50E 1,028,788 93

RRCRERTY ~ SHOWN WERE TAKEN FRCN WARSIRIOVERO SY CONsa. Inc. AND WERE NOT SURVEYED.

TRACT LAND HOOK

I K~ EXHI8IT A

OAKWOOD FIELD UNIT N-44FORCE POOLING

YGOB-99-1019-OT54

jJ vCcspaIy Pocahontas Gos Partnsrshto Wel I Nass ond N ~ OJSeil4544lcQRY.Tract No. Elevation

9/10/99 I 1County Buchanan D i str I ct Ga den Seal ei = Date

(Q Thfe plat ie a new plat ~ : an updated plat cr a fiINbl platA'0958 P- i"4~~ ~ -.3 .. ix Seal)Fore DGO-GO-T

Rev. 9/91 Liosnssd Professional Engineer g. Lioensed LOTS~

soQK500 IIE 613POCAHCNPAS QAS PNtTNERSNP

LNff I- 44Tiara eeei ~ aseseve w

hkay bkdhrl Hebe - FesCoal r~None of recordPccahonlas Gas Perbrershlp - Ol 4 Ges LesseePocahonles Gas Parbrershlp - CSM Labsee5825 acres 72.8125%

P. J. Brown Hake - FeeCoal LesseesIWnd Creek Coal Company (Sekrw (hpkra8e Coal)Jewell Rldye (Sea &"fdkdnS) - Jawbone SeanJawed Smokeless - (Abrwe ehcefd Jawbone)Coneolidalkrn Coal Company -OI 4 Gks Lessee21.75acres 27.1875%

s~g) wE 614'atdtstffo. VWSS804818784

Ust ef Lfrdsaesd Ornate)0lsstrteds

(1) P.J. 8nwrn Hoes, Devotees,Sweeewn or Assl9ns

(a) Vsgsda 8/een Patner7802 Ifofy Gnwa CourtCharlc8s, llC 28227

(h) en)aster Pagne 8/nwnRt 1, 8tat85$Pooregc8 I88, VA 24557

(c) Cnsds )teary 8rown14$78 Padceftd Veiny RoadAbtt8don, VA 242108104

(d) Wmsm Cared 8/ewn88tn8t Pddt AvenueMNs, IL/. (N$$2

(e) Ec8ens L Stean, Jr.Rt, 8, 8cn 144Tssswsl, VA 248M

21.75 sacs

0.0058 sans1/S780 of 21.75sacs

0.0058 sass1/$780 of 21.75acres

0.0058 sass1/S780 of 21.75sane

0.0058 ease1/$780 of 21.75sacs

O.lm sass1/$780 cf21.75tares

27.18750%

0.00719%

0.00719%

0.00719%

0.00719%

0.00719%

VIRGINIA: I a the Clerk's Osce of the 't Court of Buchanan County. The foregoing instrument

th d FP bdh~ T d Tft/ryf l~lg Pd,

Returned euc date to; ~lLj le.E ., TESTa:........ uty C)crk

r', Paye1of1