()DGK e394 PAGE 710

VIRGINIA:BEFORE THE VIRGINIA GAB AND OIL BOARD

ACENONLEDGEMBNT OF ABSIGNMSNT AND SALE OFOEY UBA INC. e OMNERBHIP INTEREST IN A GROUPOP DRILLING 9NXTS LOCATED IN TEE OAEMOOD~ GAS FIELD IN SUCH)S(AN COUNTY, VIRGINIA,MNERSXN OEY $$A INC NAS INITIALLY APPOINTEDBY TNE BOARD TO BE THE UNIT OPERATOR AND MHEREINOXY QSA INC. MILL CONTINUE BQSBsuussx TO BAXDABSIGNMSST R N) SALE TCI SS THE UNIT OPERATOR(NHXCH UNITS ASD THE ORDERS APPOINTINB OEY USA INC.AB UNIT OPHRkTOR ARR MORE PARTICULARLY DESCRIBEDAND BET PORT% IN RXHIBIT A HERETO)

)) VIRGINIA 4 A I

) AND OIL BC Al D

)) DOCKET NO.)) VQOB 92W51!-!'227))))))

REPORT OF TMR BOARD

PINDINGS AMD ORDRR

1. Hsarin~ Date and Please This natter case on upon ths Virginia Gasand oil Board's (hirsafter "Board" ) own notion for hearing at 9>00 a.e. on May19, 1992, BcuthueSC Virginia EduCatiOn 4-H Center, ROute 609, Hillean Highs ay/Abingdon, Virginia 24210 to consider OXY UBA Inc.' Notice of Chance ofOwnership dated Mscch 19, 1992.

2. Anosammaasc Byroa Thoeas Fulesr, Principal Executive to the 6!:!ff,Virginia Gas asd O] 1 Board, and Saadra B. Riggs, Assistant Attorney General » srec present to advise t he Board. Howard G. Salisbury and Mark A. Bwarts appear ~, inbshe).f of OSY UBA [nc. and Buchanan Production Coapany.

3. Findite ss s

3.1 OXY USE Inc. claiaed ownership of gas leases, coalbed nathan > gasleases and/or coal leases and the right to explore for, develop andproduct coalbed aethane gas freR coal asses within th9 driL.lingunits Located in the Oakwood coalbed Gas Plaid, sore particuL»rlydsscril!sd aad set forth in Eshibit A hereto (hereafter "Bu > i actDrill@»2 Units" ).

3.2 OXY UBli Inc. has heretoiore applied to ths Board, pursuant to 6 )!i.l-361.21 Code of Virginia, to pool interests and to be based llaitOperate >r of Subject Drilling Units. The Board has hereti » I iregranta! OXY UBA Inc. 's applications to pool interests in tlhs Su'. > i actDrilli>»7 Units and to be cased and designated ths Unit Opsrati», of~ass b) orders sore particularly set forth and described in Ex'», »itA he re!.o

3.3 By insl,rueent filed with the Clerk of Buchanan County, Virgin ui onor abc it March 20, 1992, OEY USA Inc. assigned all its owns:u! ripintsrs! its in coalbed enthuse leases in the Oakwood Coalbed Gas ! >1, <id(and o>rtain other iaterests) to Appalachian operators,. Inc. mdAppsla< hian Methane, Xnc., (the partners in Buchanan Produi d, Loncoepau) ') who thereafter assigned said interests to Sucl u I lanProduc( ion ~y. Appalachian Operators, Inc., and Appulse) i LanMsttwuwu Inc. ars wholly owned subsidiaries of occidental oi] <ndGas (k» poration.

'

3.4Buchanan

Production Ccspany has delegated to OIY QBA Inc. aut x: H.tyto ardors, develop and saintain its properties and assets now i enodor b >reaftsr acquired, and Buchanan Production Ccspan r hasdesi@Lated OIY UBA Inc. a~ Operator for and/or on its behalf, u richdsley ition is evidenced by a Resolution of tbs Nanagessnt Cce x, cteeof Buchanan Production Ccspany heretofore presented to the Sui.d.

3.5 OXY UIA Inc. has accepted Buchanan Production Cospany' daley':ionand lu.~ agx'sed to explore, develop and saint's the property ui andasseb of Buchanan Production Cospany now owned or hse u,!ter~equi>ed, and has consented to serve as coslbsd sethane gai ellUnit C psrator for Subject Drilling Units and to faithiully desi.li eyeths dx ties ispossd upon it as Unit Operator by the Ordure eet »rthin sat ibit A, by statute asd by regulations, all as svidehced I q oxyUBA Ix c. ' consent heretofore filed with th ~ Soard.

4. Cenclx sion> The Virginia Oas and Oil Board achnowledge x thetransfex'nd sale of CXY UBA Inc.' holdings in Subject Drilling Qnitx ntoBuchanan Productis 5 Ccspsny, a Virginia Osneral Partnership. Buchanan'reh c ionCospany has desiyate4 OXY UBA Inc. as Operator of Subject Drilling Unit ~ forand/or on its behxlf, and, lihewise, ths Board's Orders described in Srh> k .t Ahereto designate CRY UBA Inc. as the Unit Operator fox Subject Drilling tx .tsltherefore, while t I» Board achnowledges ths transfer and sale of OZY UBA ] xi .'holdings in Buhjec x Drilling Units into Buchanan Production Caapany, it tw x notbeen ached to nox'oss it approve in any way the transfer of ths opdraticxi ofeubjsct Drilling 1lnite. OXY UBA, Inc. is and shall rmain Unit Opsxat»i ofSubject Drilling Q tits as provided for in ths Board Orders set forth in Sx 5 bitA, unless an4 anti.. othsrwiss ordered by the Board pursuant to 512 of vR il 0 05-22.2, Virginia Qaa and Oil Soaxd Regulations.

5. Rffective Dates This Order shall be effective on the date of itsesscution.

DUNS AND SX ICOS) THIS @+day of July, 1992, by ~ saj ority o:! theVirginia Oas and OL1 Board.

Chairsal+JSonny R +IwplerDOSS AND PSRNNNSD this ~ day of July, 19 2, by Order of this Siird.

Pr ipal Ssscuti to the StaffV+inia Oas and pal Board

STATS OF VIRUINIA )COUNTY OF HISS )

Achnowledged on this ~ day of Qc W, 1992, personally bc >ress, a notary publi( in and~or the c~nwealth of virginia, appeared I xi eyweepier, being 4uly sworn did depose and say that he is Chairsan of the Viri 5 iiaqas,cpd 01.1 Board, chat he unseated sane as chairnan of the virginia oas ae I )il

C'.Ny Cbxslksx6on eupix ss 7/31/9i\

STITS OP VX~INIA )CeVSTT OP ShdaXam ar

kchnoulalyeC on this day ofM~, 1992, personally ) ~ !orene a notary public in and for tte conesn~lth of virginia, appeared syron 'I 9 I aasPulsar, beinp duly warn did depose and Ay that he is principal Snscstive 1u I theStqff., IOf,.ths VirSLnia Oas and Oil hoard, that he esecuted sane ae Prijc .pal~)ve. t'o ths Itaff of the Vlrpinia Oas and Oil Soard and was authorhsI I to

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Exhibit "A"

Notice of Assignaent and Sale of Owershlptnterssts Affecting ths following Virginia

Oas and Oil Soard Orders

Order5@a

VQQE 95-6VQOS 95-7VQQS 95-8VOOE 95-14VQOS 95-12VOQS 95-15VQQE 96-17VOQS 1010-32VOQS 1010-33VOQE 1010-31VQQS 0521-119VOUS 0219-79VORE 0521 120VOUS 91-0%24-143VQQS 0219-78VOUS 0924-146V%OS 91-1119-0157VOOS 91-0%24-144VORE 91 1015-1$4VQN 91M24 148VOUS 0618 133VOOS 0521-125VOOS 0430-107VOUS 91-1217-173VOOS 91 1217-174VNS 0430 108VNS 0838-134VOQE 0521-1MVOOE 0430-109VOUS 91-1015-155VQQS 1010-30VNS 0430-111VQOS 0430-113VOUS 0430 114VOUS 0430 115VOOS 0521-126VOOS 0430-116VOQS M C]317 0191VQOS 92-0317-0192VOQS M-0317-0195VQOS M 0317-0196VMS 92 0317 0197VQOE 92-0317-0198

Unit

A-308-250-24X-10AA-10E-25X-llAA-8EE-QY-9P-35g 33O-358-78 328-33T-1T 7T 32T-34U-10U-llU-12U-29U-30U-33V-12V-32W-10E-12X-9Y-8Y-10$-8$-9$-12AA 9V 34V-358-138-14T-13T 14

Date ofOrder

10/17/9010/17/9003/27/9110/17/9010/17/9010/26/9010/17/9011/08/9011/08/9011/08/9005/31/9103/27/9105/31/9110/24/9105/06/9110/24/9101/13/9210/24/9106/09/9210/24/9107/19/9106/06/9105/31/9101]/09/9206/09/M05/31/9107/19/9106/06/9105/31/9111/22/9101/11/9105/31/9105/31/910$/31/9105/31/9106/06/9105/31/9106/01/%206/01/9206/03/M06/03/9206/01/M06/03/M

Date PiledEuohanan Co.

10/26/9010/26/9004/01/9110/26/%010/26/9010/26/9010/26/9011/19/9011/19/9011/19/9005/31/9104/01/9107/19/9110/28/9105/07/9110/28/9101/13/9210/28/9106/0%/'9210/28/9107/19/9106/04/9105/31/9106/OQ/9206/09/9205/31/9107/19/9106/06/9105/31/9111/22/9101/1$ /9105/31/9105/31/9105/31/9105/31/9106/06/9106/06/9106/05/9206/01/9206/09/M06/09/9206/05/9206/09/92

Deed Eo 5 i /Y>sne Eo.

DS 366, I C 470DS 366, I C 449DS, 371, ] C 835DS 366> ] C 490DS,366, I 4 409DS 366, I C 511DS 36fi, I 4 429M,367, ] C 219DE 367, ]C'96DS 367, I C 326DS 375> ] C 473DSi 372, ]'2 1DS 377, ]C 449DS 382> Pl 19DS 374> I C 338DS 382, ]I ~ 1DP'385> ]C 161DS,381 ] C 839DS'392, ] C 202DS '81, I 4 821IO'377> ]C 415DS 375, I C 794DSi375> 14 401DS 392~ ] C 224DS 392, ] 4 213DS'575, ]C 525DS'377, ]C 432DS 375, ]C 777DS 375, IC 422DS 383> 1$ 27008.36%, 1$ $11DE'37$> 15 5$6DS'375> 1$ ]]08DS 375> 18 t38QS i 375, I 5 191DSI375, 1$ 512DSI375, 1$ fmDS 392, Al 74DS 392, I]l 45DS 392> 15 535DS 392, 15 555DE 392, Al 56DE 392, 1$ 174

VIRGINIA: In the Cia k'e Gfflce of the Circuit Court of Buch Co . Thu>ee this da reeented in thuc enau unty. e foregoing inetrui ii, it

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