VIRCINIAc - Dept of Mines Minerals and Energy · Purther, the Scard has oaeead341.19.8. aetio» ef...

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VIRCINIAc C BSFORR TNR VIRSXNIA OAB AND OIL BOARD APPLICANT c HQCXH ISLS RSBOORORB RXPLORATION, ) a DivLsion of Rgultable Resources ) Nacry r Cceyany ) ) RSLXSF QQNBHTc PO)LXNO OF INTHBSBTB IN A ) BRCLLXNO SNXT LOCATRD XN THR ) NQINE OgilLBSD OSB FXSKQ,, ) RSNXRXRSD XN SHHXSXT A HSRSTO ) AHII ~ SX SRLL NO. ) VC 4174 /herein «SCHr)ect ) Dr Llling Wain") PQRNSANT TO ) gg 45.1-351.21 and 45.1-351.22, ) COIIR OP VXRQXHXA, 1BBO AB ) Na)NBRD, PQR TNS ~ION ) OF CCCLQOM NASBRAL HAS 1 PIIH)QCNQ FINN ~IB AND ) BCRÃ STRATA ABQOCXRHSQ'NSSRNITH ) (herein "Cealhad Nsthaae Oas" ) or "gas~) ) ) ) LSOAL QWCRXPTXCN: ) ) BHRXSST SRX)44NQ BNXT BHRVSD SX NRLL ) - BW"3294 fhereia Nell") To BR ) Qevtudd, ST ! SRS LOCATXON DRPX ON ) ) QNST ~ "%gv ) BRRFRNgsjI NBI lxggsRIAL DISSRIOT ~ ) D,'R S)NTX, VXRSXNXA iths "Bub2ect Lsngi" nre c)sre yarticularly deacrihed ) on Scdcibit "A c attached hereto'nd ) Nade a RNrt hereof) ) VXROXNIA OAB AND OIL BOARD DOCBST NO. 94M517-0442 l. Naaslcuc nate acuI plaeec This natter csee on for hearing before the virginia ges ',and Ril soard (hereafter "Beard") at, 9coo a.e. on Nay 17, 1994, Dichnnson confemwa Roon, Southeast virginia 4-H Rducation center, Abingdon, Virginia. 2. Aneaac:aneasc Douglas B. Tuned of Hunter, Bnith 5 Davis appeared for ths Ayyliaset) Cheese R. Barton s~ yro se) and sandra B. Riggs, Assistant Attorney Onnaral was present to ac)vise the %dard 3, tueiac~csn encl Not)sec Pursuant to va code 5 45 1-361 ~ 1 RL Rgg. i the Board finds shit it has 9uccxsdiotion over the sub/est natter. Based uyon the svideaoe ygeseatof hg Apylicant, ths Board alee finds that ths Ayylicant has (1) esssoiso4 dus li)lib)ense in cea4ucting a eennlegful sseroh of reasonably available seeress te dshcusaLne the identity an4 uhesgdhcuts of Potential ouners, i.e., yessan ~ idontlkfxcnl by Ayplicant as having or claining the rights to coalbed ~athsse gas io all pennsylvanian Age coals frcN the toy of the Raven foreation, including all sylits to tha top of the red an4 green shales, including, but not 1itsitad to, Saves, Jawbone, Tiller, 'yyar Horneyan, Riddle Horsepen, Lcwer HorssxNN, Issr Crest, Booklet, pocahontas He. B, pocnhonta ~ No. 4, pocahcmtas No. 3, acd Bess)unctas No. 1, and any other unnaned coal aeons, coalbeds and rock

Transcript of VIRCINIAc - Dept of Mines Minerals and Energy · Purther, the Scard has oaeead341.19.8. aetio» ef...

VIRCINIAcCBSFORR TNR VIRSXNIA OAB AND OIL BOARD

APPLICANT c HQCXH ISLS RSBOORORB RXPLORATION, )a DivLsion of Rgultable Resources )Nacry r Cceyany )

)RSLXSF QQNBHTc PO)LXNO OF INTHBSBTB IN A )

BRCLLXNO SNXT LOCATRD XN THR )NQINE OgilLBSD OSB FXSKQ,, )RSNXRXRSD XN SHHXSXT A HSRSTO )AHII ~ SX SRLL NO. )VC 4174 /herein «SCHr)ect )Dr Llling Wain") PQRNSANT TO )gg 45.1-351.21and 45.1-351.22, )COIIR OP VXRQXHXA, 1BBO AB )Na)NBRD, PQR TNS ~ION )OF CCCLQOM NASBRAL HAS 1PIIH)QCNQ FINN ~IB AND )BCRÃ STRATA ABQOCXRHSQ'NSSRNITH )(herein "Cealhad Nsthaae Oas" )or "gas~) )

))

LSOAL QWCRXPTXCN: ))

BHRXSST SRX)44NQ BNXT BHRVSD SX NRLL )- BW"3294 fhereia Nell") To BR )Qevtudd, ST !SRS LOCATXON DRPX ON )

)QNST ~"%gv )BRRFRNgsjI NBI lxggsRIAL DISSRIOT ~ )D,'R S)NTX, VXRSXNXA iths "Bub2ectLsngi" nre c)sre yarticularly deacrihed )on Scdcibit "A c attached hereto'nd )Nade a RNrt hereof) )

VXROXNIA OABAND OIL BOARD

DOCBST NO.94M517-0442

l. Naaslcuc nate acuI plaeec This natter csee on for hearing before thevirginia ges ',and Ril soard (hereafter "Beard") at, 9coo a.e. on Nay 17, 1994,Dichnnson confemwa Roon, Southeast virginia 4-H Rducation center, Abingdon,Virginia.

2. Aneaac:aneasc Douglas B. Tuned of Hunter, Bnith 5 Davis appeared forths Ayyliaset) Cheese R. Barton s~ yro se) and sandra B. Riggs, AssistantAttorney Onnaral was present to ac)vise the %dard

3, tueiac~csn encl Not)sec Pursuant to va code 5 45 1-361~ 1 RL Rgg. ithe Board finds shit it has 9uccxsdiotion over the sub/est natter. Based uyon thesvideaoe ygeseatof hg Apylicant, ths Board alee finds that ths Ayylicant has (1)esssoiso4 dus li)lib)ense in cea4ucting a eennlegful sseroh of reasonably availableseeress te dshcusaLne the identity an4 uhesgdhcuts of Potential ouners, i.e.,yessan ~ idontlkfxcnl by Ayplicant as having or claining the rights to coalbed~athsse gas io all pennsylvanian Age coals frcN the toy of the Raven foreation,including all sylits to tha top of the red an4 green shales, including, but not1itsitad to, Saves, Jawbone, Tiller, 'yyar Horneyan, Riddle Horsepen, LcwerHorssxNN, Issr Crest, Booklet, pocahontas He. B, pocnhonta ~ No. 4, pocahcmtas No.3, acd Bess)unctas No. 1, and any other unnaned coal aeons, coalbeds and rock

strata a»assisted therewith {hereafter "Subject Pcraaticns" ) in the SubjectDrilling Un&c wsdsrlpiag asd ceeyrised cf subject Lasds, and {2) has given noticeto all parties sc idaatiiied (hereafter scentless person{ ~}"whether referringtc individuals, corporations, yarcserohips, associations, cceyanios, businesses,trusts, joint ven:ares nr ether legal entitles) entitled bp va. cede 88 65.1-361.19aa4 68)1 3&1.22, Cc notice of this application) {3) tlat ths persons setferch ia Nub&bit 8 berate ars persons idoncifb«5 by Ayylicant, whc eap boca»i«ants ef esaxA»4 Methane Qas interests in Subject yoraaciens. in tbe subjectDrillkeW} Wait ua4Irlping and cceyrisod uf Subject Lends. Purther, the Scard hasoaeead aetio» ef ".IK hearing to he yuhlkehad as re(}wired by va. code 8 65.1-341.19.8.Wb«)ewysa, tha suord hereby finds that ths notices given heroin satisfyall shatwhsrp segukreasnts, Seel rul» raguireaents and the ainieua standards of~Lute and federal 4as process.

5 Sisail louis g None,

6. Saki»/'ocuostods ApylicanC roguests (1) that pursuant to Va. Code5 65.1-3&1.22, lac lu4ing the applicablo portions of Va. Cods 5 45.1-361.21, thoSear4 yscl the rifhts, i.at»rests snd elaine in and tc the Qas in the sibjoctDrilliag Unit~ including these cf the hncwn and unhncwn persons nosed heroin andtheir hncwn and udcsown heirs, esocutors, adainistrators, dovisses, trustees,~sek(fns aad suce is&a', both baaodkate and reacts, fur tbo drilling andcysraaiea, iaelwdins production, of ocalhad Methane Qas Produced free the subjectDrikli«g Wait established fer tho subj»ot peveaticns u«}»riving and cue«irised ofthe Subject ~i (hereafter scaec)su( ~ cclkeetivelp identified and re&rrsd tcas wall deco ~~ asd/or operation in tho Subject Drilling Unit )) aad (2)that chs soard he< igaato sguicable soscurcso suploraticn as tbo Unit operator.

7. No~ erantods The raga»aced re),ief in this cause be aad hereby isgrancedI (1) yer Isaac tc va. Dade 5 45.1 341.21.c.3, sguitsblo sesourcos

lcuaCiea (,hereafter "Unit Operator~) is designated as tho Wait OperatorLurk»ed to dri) 1 aad cyorsco ths well in ths subject Drilling Usit, subjectcc tha yseaic yrcivtskeas contained in section 45.1-3&1.27 SA Ns((., Cede ofV(rgiaia+ 1888 ss wasndedf tc 8 &~5~22 .1 NL SSN., Qas an4 Oi 1 Segu 1at icns andtc 8 4%AS 22 2 N}i SS{5 Vinginia Sss sed Qil }{Lard Rogulath.cns, snd tc Cho Oil

and Qas Ccucsesvacisn sisard' Order encased March 20, 1989, establishing DrillingWaits fer Lho Nero oselhed Qas yield in Dish»noes, wise, snssell and suohananCow«Cise, vis{}&ala, all as~ frey tine to tine) and (2} all the rights andiacoeaece )«Sad c ) cbe Qas ia ths subject Drilling Unit, including those cf thohnewa aad ~ yercmw listed on Nbhibit 8 attached hereto an4 wade a parthereof„aad Chair wwsun aad unhncwn Lepra, «rscucera, adslknistrators, dsvisaos,'trwehseoy ass{Stre aad sucossscrsg hoch ieaed&ace and rowcceg bo and hersbjj Rropeeled ia che osb;)eot pereaticns ia chs subject Drilling Unit underlying andccayrisad cf cho Subject Lands ~

Sub jest Sub jectPoreatiens Unit Sino

All Aypr su)«atelyPennsplvaniaa 58.77 acresAgs coalsfry Cha tcpcf Che Newtonfcseahien,}«clad&ay all~plite Co ChsCey of Che rodsad Susen ohalosincbjs8kag, hetnot lhakted to,

PisreittedWell 1«cation

Well VC 3174tc he locatedu depicted cnsnhibit ADepths 1,855feot

Piold andWall classificationNcra Ccalbod QasPiold

OrderNuebor

OQCS Orderdated

Match 20,1989,

mtablisb-ingDrillingUnitsfor theMoraCoal SodQas

Tiller, Vpyer~~~ISINeLcncer yeresyaa,Var ~.Qeohke r,

Qo.6,'ooka%+go 3

P ~ g~nd aay ether~ ooal sense~,ooalhe4s,

assso Lstedtherewith

yieldin

Dc celaan~wise,nuasell~ndDuo hananCountiaaVkrVknka

Por the Subjeot DrkllknV VaitundarlyinV and oosprkeed of tha Subject

Lend reforred 'to aa c

Subject Vait Served by Well VC-3176Diohenson Couaty, VkrVLnka

3, slant}nn nnd nlontion pnrindc zn tbs event any gaa or oil owner orolaLesat nosed La ) 'cchkbit 9 has not roaohed a voluntary a9resnent to share Ln theoperation ef the cell to bs Leoated Ln the subjeot Drilliny vnit at a rate ofysyccest nutuakly cyrasd to by said Vas or oil owner or olaknnnt aad theoyeretccr< then auo 5 parson nay sleet vna of tbe oytioas sot forth in pareyraph9 bale)w and aaet yi ve written netios of his sleotion of the opt Los selsoted underParayrayh 9 horskc to the dsskynsted Vakt Operator at the address shoe belowwithka thirty,(30} days fran tha date thLs Order La recorded in the oouaty abovenane4. h tkaeky e) eotioa shall ba decisis to have been sado if, on or before tholaet 4ay Of Snkd 3) 4ay yeriO4c such Slestkny yeraOa haa doliVered hia Written~lootkea to the deci9aatod Vnit Operator at the address shown below or has dulyyostnarhed and plcoad its written oloetiea ia first ulnas Doited states nail,yostays yroyakd, ahkrsssed to ths vnit oyerator at the address shown below.

9 Rlaotk uc Ontkonec

9,1 Canine 1 %n Pnrtiaknnta.ln Tha naval~st and Onaration nf theDrills n anise hny Sas or oil swear or ckaknant pooled hereby whohale nOC, reached a Veluntary av ~t With the OParatOr nay eloOt tOpacctko.gate Ln the dsvslo3ccsat and oyoration of the subjeot Drillin9Quit ( cereafter Partiekystiey Operator» ) by aSreekey to yay suchPartio. yatkny Oysrator' proportionate part o! ths actual andr . c'le nests, Lnekudkng ~ reasonable supervision foo, of thowell dc vel~t aa4 operation in tho Subjeot Dri.lliny Vnit, as acesyartkcntlarly set forth Ln Ykryknka Sas and Oil Seard Rayulatkon VR60ChOS 23.2, Seotion 10 ("Coayketsd-for produotkon Costa" ) .Purthec, a PartioiyatinS Oyeratoc ayrees to pay his ~innatepart o ) the Qstknated, Ocsylotod-for-Produotkon Costs aet forthbelow i:o the Vni.t Operator within forty-five <65) days fron thelater c f the date of nailkny or tbs date of reeordin9 of this order.The 4 tknated, Cnsyletod for-prochcotion costs for the subjectDrklkkcV Vnit are as followac

3 stknated, Coopkoted-for"Produotkon Costs - 3183,565.00

A Parlioiyatiap Oyeratcr'0 c ~ ilmate COOC hereun40r Shall be thecoenl I obtained by alit iylyiay the puticipacias operator'' 0Secoeita{N xncocest within oait as sec forth ia ssbibit 9 tisso thoOuse Otatod ieeodietely abcoa Puouldndc hoWOVOC ~ that in theevent a particiyetiny Operator ebsets to participate an4 fails orcetue m to pay hio pcopoctiennts part of ths Retieatod, ~otod-toc p'mducthe Costs ss ut forth above, all within tbe ties ootforth boccie aad in ths saassc proscribed in parelrayh S ot thisOhrdoc, thon such Pocticiystiep Operator shall be ~ to have~Soeb ld nct to pactke{$mco and, wbject to a final lepal4Nme Iination ot ownership, to have accsyted the cash bonuscone@location in lieu of parti,cipaticm pursuant tc Para9rnyh 9.2hsreoi!.

9.2 eutlcui 2 noontve 0 Cnoh Sonao llnnnidoratlcn trca Cuarntor I Inlieu uf yartickyatias ia tbd 4cveleysont an4 cpecut)Am of thesubjel4 Drillios Unit undec Pocoproyh 9.1 abave, aay gas cr oilogaer cr cia%Sent yoalod bcomunksc wbo bas not r c~ a voluntary

with the Oyecetoc aey sleet to accept 0 cash bonusicecatioa of $$ .00 yor ast sinecal acro Owned by ouch porscm,

«kep uyce entry of this Order ud costinuinO anmlally until~~t of production fcu the Subject Drillin{) Snit, andtheoec teer 0 royalty of 1/{Ich of s/sths {twolpo an4 one-half percent{12.$l ) ) at ths not ~-—— — received hy tho Vait operator for thoWle cf tbo c '~ %ethene Ose ycodecod fees any well devolcpeontoevecud hy tlute Oc4sc'dltlylied by tho {)as cr oil cwaer'0 orclalscat' Pecesatele interest Within Unit as oet forth in schihitS {tec pscyoeeo ef tblo Oedsc, net ~~ shall be actual pcooeodscckaskvsd less all pest~Suction costs incurce4 dcunetreu cf thewdllbcsdc inc1udkag, but OOC lisitod te, all Oet)mring, ccsyceeoicn,ccaatk ay, traaelmctatica asd sachet{OS costs, whether yertoroed byOdd'C Operator Or a C)Ltrd yerelm) ns faire reeeenabls and OOuitablo

:::Mien to bs ysi4 to wi4 Ou or oil cwur. Tbo initial cashbonus shall hecces due oed cwiit I¹sa oo olect04 and shall hotesdor N4 paid or osocew04 wl,thin OQlty {SS) days of record{OS ofthis Older. 9bsrwttor, anneal cash bonuses, if any, shall boccuduo u l cwinp cn each uniivorsary of tho data cf roccrdinp of thisceder uI tho event pce¹mtlon tccm tho subject Drillins vnit has ncttbocetltoro cc—;~,and once duo, shall bo tendered, paid or

with{.n ointy {SO) days of w{4 anniversary date. Once thoinitia I cash bonus ail tbe annual cash bonuses, it any, aro oo paidor uclowed, subject to a final loyal detoeainaticm of ownership,~eld ) Opsut{ ~) shall bs oatlotaetion in tall tor the ripht,istoce Ite, aa4 olalss of such oleetiaS Sas or ol.l cwnoc or clnisantia aa4 to ths Oas produced teem Subject Pccsnt{Am undorlyinS thoSobjeel: Lands, accept, bowovsc, tor tho 1/9th royalties duebscoea Ioc.

9be oil eticn sade under this Paropraph 9.2, when so sade, shall bo~atlatl etilm ia full for the rkybt, intecu{:0 aal claiss ot ouch~lhctil 0 ysreua ia any wall 40Volaysont and cyeraticn covered herebyand ee¹ oloetinO ysrsoa shall ho ~ tc and hereby doss leaseud aslignc subject to 0 final loyal detocoination of cw~ohipc hio

~ intorssto and Claies in aa4 CO 'tbe Sae Prc4uoed tree Suhjoo'tt/cn in ths Subject Drilliny Unit to tho Unit Operator.

9,3, cc«ci I««3 %0 alanna zn %ba save I~ and ouaraticn ao a scan-snotlinI uoaxuo sncuen Oa h c¹003os sn'4th shd sn nncoivo couoldoratkcnXn Llac Ot Ooebl la lieu Of yhrCMy'ntin{) in tbe deceleysent andoydcuh) on ot tbo subject Dcilliop snit cedar pacasraph 9.1 shove andin liel of rouiviaO the Cash bonus Consideration under Paropraph

IIII Mi pm 148

9.2 ~ icvo, aay gas or oil owner or clainant yoolod herobf eay electto share in ths devolsyaent asd operatisa of ths Subject DrillingOnit in ~ oarrie4 basis (as a «Serried Nell Operator ) so that theS -~ I «Lanate part of tbs Ocsgllsited-for- Lon costsSilos ibis to ouch Carried Nell Operator ' interest Ls charged~i~4 snob Oarrisd Nell Operator's obese of r—- — ion faa tbsSubje it Drilliag Onit. Such Carried Nell ~Operator ' rights,Later ists, and olaies to ths Oas La tbe Subject Drillicg Snit shallhe ~~ and hereby are assigned to tbe gait Operator until the

free the sale of such Carried Nell Opocstoc' share cfproduition fsco the Subject Drilliao Snit <seclusive of any royalty,mesa> or overriding royalty, or other sos~seating or non coot-bnacii q burden reserved in any lease, assignnent thereof or~~t relating thereto cover such interest) oguals throe

n) yercsat (2{Dc) for a leased interest or two hundred parcoat{ for aa unloosed Lntosast {whichever is ayplloablo) of suchCsrriiid Nell Oyernter' abase of ths Oespketod-for~stion costsallociiblo to ths interest of ouch oasried Nell operator. whoa tbeSnit C yeratsr recoups and ~coors fera such Oarris4 Nell Operator'assig) iod interest tho secants provided for shove, thon, the assignedLnteriet of such Carried Nell Operator shall sutcasaically reverthash to sash carried Nell oyerator, and free and after suchrover< Loa, such carried Nell oyerator shall ho treated as if it hadparthiyate4 initially under Paragr 9.1 above) and thereafter,sgoh ]esticiyating parson shall ba charged with and shall pay hisprcycuticnato part cf all further costs of such well dovolopeont.

Tbs o) ection ends under this Paragraph 9 du wbon sc nadog shall bo~etio)action Ln full for tbs rights, interests, and elaine of suchsleet) ns pocscn Ln anp well dovelopaeac and operation covered borobyadd, i iwh jest to a fLeal loyal dsaeseinstion of ownership, suchsleet)ag yersoa shall he ~ to have an4 hereby does assign bisrights, interests and elaine la tbo oas preilucod frem SubjectpasoatLoas Ln cbs subject Drillino gait to tbs applicant for tboyerLod of ties daring whish its interest is carried as aboveyeovid s4 prior to its reversion bach to such electing person.

lo. p 41~ ~ co sremrlv slocci 2n tbo event a person nosed in SnhibitS fails to elect wl,thin tbe Cine, in tbe nannor aad ln aocordanco with tho ternaof this Order oae if tbs altesaatives set forth Ln Paragraph 9 above for whichhis Liitesest Oaeli )Los, Chsa sash parson shall bo "~to have elected not tcPartioiyats Ln the s ~s dsueleyasnt aad Cyeraticn Of Subjeot Drilling Snitaa4 shall bs —:,subject to a final legal deternination of ownership, to haveelected to ssonyt i ~ satisfaction ln full for such person's right, interests andelaine, the osneddeation provided ln Parsgrayh 9.2 above, and shall bo deonodto hove Leased aed ior assigned all his right, interests and elaine tc said Oas

few osb:oct poroation in subject Drilling gait to tbo applicant.Persons who fail tc prcyerly elect sbpll hs ~ subject to a final legaldscosainacise cf m sorsbip, to have acehstsd tbo sceyensatiso and terse sst forthbessie at Pacsosspli 9.2 Ln satisfaction Ln full for tbs rights, interests, andclades of snob Samson to the Oas produced free Subject Pcroation underlyingSubject Lands.

11 nac«Islt i v nnrcicinaclno norsoai Zn the event a person pooled borobp~loots co yartLCLys le under paragraph 9.1, hut falls cr refuses to pay, to securetbs swr or Co ~ abs an arrangoneat with the gait rotor for ths payeent cf~uoh yarooa' ysnye %Lunate yart of tbs sscfoated seed-for-production costsas aet forth bssein, all within the CLN9 an4 in the eaanor as yroscribs4 in thisOrder, Chen snob ) Iorsoa shall bs ~ to have withdrawn his olootion tcyarC ang sba LL lis:::: te have jkootod to accept «s satisfaotioa in tallfor yeseee's r.'d)bt, innocents aad elaine ia aa4 to tbe Oas tbs considerationprovided in PsragrO)h 9.2 above for which bis interest gualif Les depending on the

~sense basdsas ittaahed to such interest. Whereupon, any cash bonusaenskdsratbss 4ua as n result of such deasa4 olectiea shall bo tendoro4, paid or~ser«csd hy Qakt Operator within slaty {40) 4clys after tbe last 4ny an which allahdetasktkno i- —-- under tbka order should have ynld his yreportlenato part of~wh east er sb«cl 4 have ends satlstaotory arr ~~ tor tbo payaent thereat.sbsa «csh sash hec as cesakdaretkaa ks said or esarowod, lt shall be satisfactionLn Sall ter the ri yht, interests an4 a ot such yereoa to the Oas undsrlyin9Subject DrkkkjLny {lait in ths Subject Iaada eeuored herahyg Oeaeytc haueum, farany I/O royalties which would beaass dus pursuant to Parayraph 9.2 hereof.

12. ~~~ of Xaccoraatc In tha event a person pool«i hereby iaunahls to redeh c voluntary adcemoat ta sham ln tbo ayeratian of any well~lated hy tld. ~ Cr4or at a rata of payoent ayre«l ta actually by said Ouar oil ««sr or ~c~c~< as4 ths Oysraaer a«l said person oleats or fails tasleet to da a{dier than participate un4sr Parayrsyh 9.1 above la the develayaont~«1 eyesatk«c ot s co well la the osbjoot yersntkens in tbo subject Drillino Qnit,thea, subjest te a final loyal deteaakaatken of owaerehiy,, such person shall bo

to bavb aacI shall have asslyne4 uato Quit Oysrnter ouch yare«c' rl9ht,c~~~ ssd ala{w ln an4 to said well, la tho Subject persatkans ln subjectDrkllkay Walt, snd ether share la production te whish snob person eay he eatitlodby nsamn ot aig icleetken er donned election hereunder in accordance with thepsovkekoas ot thlc Order OevernkaO said election.

13. Qakt c ucarater car oaaratar c c Tbo Applicant, wquktnblo ResourcesWnykeratkea, be an {hereby ls isekdnntsd as Qalt Operator authorised te drill andayerate tbo Wll bc Subject porsatkeas la tbo Subject Drilling Qnkt, nll subjectto the yacnakt prov kakens contained in vn cocle 55 44 1 361 27 ~~ g 55 440-09 22 1 W5, Wa c Oc e an4 Oil Woyulatio«c and 55 440&4-22 ~ 2 Wb WWS», VirOiala Ona~a4 Okl Weaeil ulatlona, an4 tbs Oas an4 Okl Conservation Weard's Order enteredSareh 2O, 1949, eatahlkshkaO drklkknO units fer tbe Sore Coal Wod Oas yield inDksu c Sidney I naaekl aad Wuabaaan Ceunakeag VkrOknka, all aa ananded fryties to tkae, aad cll eleotioas re«aired bf this Order shall bo comunkcntod taQnlt Operator in wrktknO at tho ad{irons shaw holewc

wcpcktabke wssources wnpleratienP 0 Was 19431909 Waist Steno DriveXkaysyort, IS 39442Pbonec {415) 224 3400Pane {41%) 224 3492bttanc Dennis W Saber g Re9ulatery

14. A ~ af aaavatkoaac Quit Oyeratar shall camenae or causato:=:: ~,sns for tbe drklkkny of any well covered hereby within throebundnsd aa4 slaty {ive {AS) days tree tbo 4ato ot this Order and shall prosecutetbo sws wLtb 4ns 4 Llkoaaao. It Walt Oyaratec shall not hnw aa acmonaad nnd/arN ~ ~, than licks Os4sr shall terokaeao, tor aay cash swa hoacmknOyayshke basesc4ter) ev{csswkee, thke ordor shall enyLro at 12coo p.s. an tha 4atooa which say us11 by~ this Order is yes ~ly ~~ ud pluyysdualese ~~~~ hy Order of the Wsord. Wewvar, la tbo event an appealls tahoe trw this Os4er, then tbs tkeb between tbo filly of tbo petition tarhpyonl and tho final 0«)or of the Ckreukt Court shall bo «ccludod ln calaulatin9tbo ese year park«l referenced to herein.

QPPa a cncplotken of aay Soll whose costs caspr Lee part of the~stksntod aosykatac{-ter~ation sante abave and within ninety {90) days afterycechaekkon ~ the yiyolino ia abtnknod aad restoration of tho location iaeasyksaad, tbs oy«ster shall tile with tha waar4 n revised enhlbit reflectingths actual ~cd-far-production Casts tor the subject Drkllin9 Qnit.

19. swansea' Ltaac Qnlt Opera«cr, in additiaa te the ether riObtantterdod her«cdder, shall have n lien aad a rioht af sot aft on tho oas riohts

aed ' amid hg say yama sid»jeet hereto ubo elects tc ynrticiyats under5.2 La die subject orklkkns, walt te Has ostent that costs incurred in

the +Mko)) ss el«snakes ef the orkkkksw wait nso a cbseoo ~~ ouch~~ e~: snob kkoes ea4 r sf est eff shall bs enyarahks is te oacbIad shall ilooaka ~ Lao uatkk tho wast oyeinrtor drlllkss or=::=nk,;4SOt «ok L ~ besshy hae bess yakd tbo fukk assents 4uo undec the

teeNS bhkh IO»4 Ir

14, sncwIoknocg

Oy th»e Qs4or» tho Sees4 instructs tho sosrcn» asset aaao4 hersia or~ay:--:~4 by the Oeard to establish aa interest~Lay --——-.aoseunt,(bareka kahn ~v ~~) to eooekuo aad account tc the soard yursuaat to its:» ~ ~ IWSI I»»~la lheeFBeC

Tasauolk ontkeanl snabD Oos SOS

1» Wb 244el(herein ~~ byaat )

. a»»»»»Lask~~ ~~ ~% ~mh lm Sornoucg If nny ynfsontof hease» soyiimrr ~:= sr esSOir oiis asd cakey sa4ar this order caanctbe onde ':%br~~ eobktksis ~~be Looktod or is ===——=-= then~neh edyg bein is» ~ ~4~ ————-

~ ae O Shall neb ba — 1 NktbI@cANklke» ess yi k te va. oo4a 5 45 1 ssk+SK s» seLd~ 4Ap lnk c ~ )w bbe Oysenslen ksto tbe yaor«i» secoim» =.::: Las

wkabda 4'ete ed ~~ ed tbks wedar, asd ~l kny t)monftoi cna ~ e sash dayoekt ts ha as4s» bf ueo of ths reyest fcesat

~ hy a Ossa wbkeb Ls ne later than (40) days after~Sash ef cash sssth bakes reooiisd and/ar for uhkch fun4e —. --- tcdeyaekt. odob Swede sheik bs for t)io osebsokuo nso of, aa4 soke 't

oi'he,erNiktbid»'n ~ 1 each Snide caa bs yakd te such yersesgs) orusa@'SSO.:h)sat oak each fonda as raOnkrod )»f lao or y'ursunnt toOrder of'bs~ ia'kth Vn. Sade 5 45.1 341.21.D.

14 2 --—--,au ~~ ~ ~Lenin»»»»*~~a If aaf yn3«e)rt ofbones» ~ ~ oy dohwe =—, dw 43m cokes undec tbks ardor eaaaot bosaSs ': ——— sstktboS IONesho cosset he ands cortakn das t

4F4NeoeabS er a dsfsst or cloud ea tho tLtle, thea suchbasso» i)syy)L ty ~» or caber ~~ tos vkth ysetkckyatkss~eel"s ' '-, ~o oasss se44 to ayseshar onseuaat t sa~ s 1 i!

~ey» Lk) eh~no t ho ~~ed sktb aag ef ths Wait eysratsr( and52), » g':A t ts va» ~ 55 ss I sol 22% 2» 45 1 351 22b "3 alai 45 ~ 1343 4.o.4, n ~~I~ hg tbs IQercynir ksto tbe scares bcoount, =::ins

, ) ilays ef the os 4 ef this order» aad contknuknothe~orca a ~~ i «Lbb sano doodskt te bs ands, 4r ueo oS a reysrt onesat

bsr» by a 4%4~e. Le se )Ster Shab skat)t (SS) dhga afterOaeb ~s sbakk he boSOMshe sskuo use 4, and nolo ~t of,

r hhaswoo.aohkk shah $N44j ssa he te ouch ~a) or

seder ef M Shard,.la%4%'NI:,, Sf sat nokknOekshes Sash fssOn ae raOn& bf lao cr'urooant to

11. ~~'~~» Sbe Ssond syeckfkcally an4 syocially finds»

17.1 Sy))kk»sst ks n dkvkskos ef ~ktahko Oaseucoos One@Of ccsyeay, a~ihkea 4sly eut)iorkned te transect business in the C - - ~thef Vkrl links l

11.2 ~deist clakes central ef okl end Wae and ccalbod aotheno Waekd estates -~~knS 37.37 yorcont of the Sas and oil

osaahI, asd 100 yoreeat of the ooal edtnte for tho acroeyoender iyiey tbs Sob)est OrillLsy Oait.

IT 3 sno«4 ~ Ls sa oyerater Ln tbe ~ —:::=1thef V Lais es4 has~R4e!Led tho Oasriil's regsismeeks for operations La Virginian

17ed ~~ .C lass:: Cbo 4rill of eao ]I) veLL, Nell V0 31',ce s I aych sf 1,4A fssc + toe Oril lie» Oait CO 4sveloy tboOae hi iehfewt yssashisso

1T.S — -=- SSS LLSCed Sa ~t O . Iae)eded Ln Oehihit «O» arer ea4 lest ~~:::of Sash person of rooord

hy ths > ~ 'se ~ er e~~~~ a seCeeCLalLs ths ~~~ Lh cha sob9eeL orixikej «sit

f yLso asd sesylw4 ef LN4s Obese ~«orsho hove sdt =-::s esto+@=:.:..- CS ahem Ls the~Lee ef Chs «SLL «~ 33.43 ~t of th» Sos esd eil~~ La Sohjeet Orillisy Oait.

LV-4 The elthsated yceOseCLen over tbo lite of tho soll Ls 360 sillioneehie haec.

IT 7 SnotL«est S OV~ Lehsd that the fair, reasonable andhho. ~~~ Co ha yakd te esp yarehn Ln 1Les ef tbs.r

Ln eay eOL1 sre those eytioss yrov0 shovel and

LV 0 S l4$ ef replanted ea4 Qeaatsd is $vot and r««~log Ls:hf =.=«I evidence ssd vill afford oaoh porose Ln the~I +LLLLso o'sit the syyercoak4T te -- «» or reosLvo, withoutsash person ~ psst aad fair share of tbo-~ fsoe the ~~ OSLLLLsy Qsit, eehfeat to s final loyal"

«« ~Lee sf sselwkiyf asd %ha yrseciso of tha lyylioetioa snd:.:chassis slLLL:::co che yoesihlo at thLs~l-—--I = t ~Lb««««««w

es assist Ls ~=: ~~ vsilsss ~ af seshe fed bT«ssd profane m ~ ia ——

Lay Nihe Lvo riyhtsall ~ Le ths ~ sserhes of wgky ia tbs

'd oooo sns ~~es sdsseooiaa hsplieaat er ite «ttorseg«kl1 t«««WI«~ w«h ~~ol %%a ««il1«j Qgy («)ayoea chs 4ssw ed >oiislyt of cbis Sodas sodo that e Cryo and oorraet ooyg ofsti4 Osdsr ss4 ~~'~ sichis ssoaa (0) dsy's ths dsoo of roeaiyt, of thisSr4sr ce oath ~- yooiad by this seder shoes address 1~ hsova.

ly« ~~~~v od ~ 'be OLreeter shall yreVLde all yeroenoaet ~ te a )Ssyh sLCh

' " «4 sesses to oLX roeords fer the soh3ootOOLL OOLC IOkeli ere oshsittod W Osit Sysretor to said OLroetor snd/orhio I ~(S)~

s Thoro%we the ~ —~ roLLef ss4 ell torse andprovisions sst'c4dl h shove bo snd berohT sro Oreatod sed IT Is sa ~~

31. Sssootivo sotoi This order shall he offeotLve on tho date of Lts~sooet4on.

m 391 we i52aetna ae aSeeeeee ~ ~A- ~ or 1SSi, by a

~alecity ef 4hs VlcOisia oas aiil oil soacd.

~~~~ this ~ 1SSi, by Order

V~m $5hs staff

Oaa sa4 Oil Osacd

)

's this ~day of ~~, 1S'M, ysceeaally.c SSOOie ie 444 fer ha -'-MNi ef VIPSSiaia, ~ceced. Oeeny

(MAL t ssoha 444 —:— sey thot hs is sa 1~of the vlcoieia.,@0< that he eseedted ssd aadIhscised to 4o so.

Oedbi ONotary Sshlio

C My ~isaiea acfd css I/Sl/Sa

scsw op v4wmswow )OC ~~~ ) nA

ee this oZI 4'f (L~ , 1SSd, yscseaallye~ sshlie ia sscf fsc ths =:Mth of vicoieia, soysaced oyroa

~ hsQ o 4sly ssesa 414~ ssd eay that he is sciaskoal oseoetive

~ Psmlis

isa «syh ~ OS/SO/Sy

4cllll I

10,590'atitude

JT 07'0

aweraa

Canny nba m -i~raAca

Sraaaf

II rc-sr'lf8

I

s llrerse'rNsr'

Tract ¹1I

I

I

II

ITract ¹2I~RN~I

I

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'gp ¹ ~ ''1

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QENF Pt%UP5

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i¹bsbf::sear %~t'tf~~ epR as

Area af rrae e Seal Aa

WEU. LOCA'itO¹I PLAT

'r¹~::IIN SL flea* 2eaa~ eaar etb

N AP414 E Nhters

eb¹C =-- ~Caar a)N ldetSa E~

ONPNN Wm +ca ~ casu it'-J174TIINCT NO, ¹r0- 1W l 1'EJ QgtNTION AS¹.Sf Oty@NeM~CO%IT + — DSSICT Ebdaeaa SCNLf 1 m ANY DA~ 1'$ 1@p¹TIde Pbrt ie o nes pbtt~.; on opdeted piet or s Ibel lexicon piet

+ Dessus the brcstbrn r 1 o aNNI on UnlbNI Ststee ~~ Maps, scobr I to2+,OOO, brebdts bhd t~ knee bebrO represented try border Ines oe sbosn.

Form DQO-GO-7Lrcensed Land Surv

NITRMSFmrastt~NEATER lBNT M

%50%'lee

05eaat sla Oll R Ges, lac.ATTNt R chard SrlRhertP. O. Qx 4 500~i V l 24266

Leased. ERIE24W0L-01PO 8140T.313

77.37% 45.41

Chaaac R. I hsrtoa eadFeEEy IRartt a, alVyReate A, Rc e 115Eee, VA 14217

Uateesed 22 63% 13.30

P ~ef Uatt Lest edFereweeEe ol Uall Uah esed

71.37%22.63%

AcreeEe la Ualt LdasedAcreeEe la Ualt U~ d

~5A713M

1 CNacldletd C sel Co.ATT¹ Fw10aBd, Chlel

P. O. Rda 1Seats, VA ', l4231Pyals R(sash ss CetaPeayATTyy~~ CHae, Preyerty

hlaae lerP. Q. %At 5100Lsheawy VA 24266

Leased-ERKK2414%IL.01FO 4140T.313

7241% 45 41

PAGE 1 OP 2 PAGES

CEse4aee l Ceel Ce.A~Et 1'eel GsaEsl, Chief

l aglsseerP. O. Sex F

Iessejsr VA 24231PFsNdj Reed eeeee CeeaPeeyA'FF3fl Ld sr3 Casse, Preyerly

30 NNREer

P. Od Eex 1100d4Ne0eser I rA 24200

Leeeef" EIEX 22.63% 13.30241040L-01PO t01042T2(C)-242

100.00% 50.03

PereeeENEe ef 6001 Ld eeetfPeeetKNEREe ef UW os Nesstsetl

100.00%0.00%

SL17

trdttNNL IN THE OFRCE sN THE CLERK OF THE CETCUIT COURT OF NCKENSON COUNIY~ trds . Idad mls deed emedds darFesseded in smd eS!e,end s Imn the oerNome ol ada~ ~ 'ames annenetL admeed ~~o M, ader payment ol

tu inlaosed 0 dlia, 58.tete.

~rt~~~p„PAGE 2 OP 2,PAGES