VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT:

RELIEF SOUGHT EXCEPTION TO STATEfifiiDE SPACINGLIMITATIONS PRESCRIBED BYVA. CODE g 45.1-361.17(a) (2)FOR WELL NO. 000000

LEGAL DESCRIPTION:

DRILLING UNIT SERVED BY WELLNUMBERED j)jjjjgjjTO BE DRILLED IN THE LOCATIONDEPICTED ON EXISBITA HERETO,Ble Sasdv Fuel Carssratlon Tract1SS27M Acres, more or lessNAfifififiAN CNADRANGLERtllCIC LfiCK LMBTRICTBf)CMS0MSl COUNTY. VIRGNIA(the Subject Lands" are more particularly describedon Exhibit 4A", attached hereto and made a part

hereof)

) VIRGINIA GAS) AND OIL BOARD

))) DOCKET NO.

) VGOS-124M1740$ 3)))))))))))))))))))

REPORT OF THE BOARD

FINDINGS AND ORDER

1, Haarino Date and Place: This matter came on for hearing before the Virginia Gasand Oil Board (hersaflsr "Board') at 0:00 a.m. on Aprg 17, 2012 at the Russell CountyConference Center, Highland Drive, Lebanon, Virginia.

2, Aooaarances: TlmoSnr E.Scott of MeNInnis SScott. appeared for the Applicant

Jurtsdhbon and Nobos: Pursuant to Va. Code 5(j 45.1-361.1el ssq., the Board finds thatit has jurisdktion over the subject matter. Based upon the evidence presented byApplicant, the Board also finds that the Applicant has (1) exercised due diligence in

conducting a meaningful search of reasonably available sources to determine the idenfityand whereabouts of each gas and ofi owner, coal owner, or mineral owner having aninterest in Subject Mlfing Unit underlying and comprised of Subject Lands; and (2)represented to the Board that it has given nofice to those parties (hsreafisr somefimes"person(s)" whether refemng to individuals, corporabons, partnerships associations,companies, businesses, trusts, joint ventures or other legal entities) entifisd by Va. Codeg 45.1-361.19to nofics of this spplhatke. Further, the Board has caused notke of thishearing to be published as required by Va. Cods 5 45.1-361.19.8. Whereupon, theBoard hereby finds that the nofices given herein ssfisfy afi statutory requirements, Boardrule requirements and ths minimum standards of state due process.

4. Amendments: None.

5. Dismissals: None.

6. Relief Reouested: Applicant requests an excepbon to the stslswide spacinglimitations set forth in Va. Code $ 48.1M1.17for Well No. 000000.

Relief Granted: The requested relief in this cause shall be and hereby is granted. TheBoard hereby grants Applicant consent to permit and drill proposed Wsg Ns. 000000which ts 2411 feet hem existing Range Well No. 000840; and 2,00L28 Hast ftsmsxtsgng Range Weg No. 080001 and, 2m'est from extegng Range Weg No.020840 st the tocsfion depicted on the Plat afiachsd hen»o as Exhibit A.

8. Scecial Findinos: The Board spectficafiy and specially finds:

8.1 Applicant is Ranss RessunmaPtne QHsuntstn. Inc. Applhsnt is duly

authorized and quslified to trsnsebt business in the Commonwealth of Virginia;

8.2 Applicant Ranas Resourses44ns Ifisuafatn. Inc. is sn operator in theCommonwealth of Virginia and hss ~ the Board's requirements foroperations in Virginia.

8.3 Applicant claims ownership of Conven5onal Gas Lasses of Subject Drifiing Unitand the right to explore for, develop and produce Gas from WsH No.~aswell as the right to parfictpsts and develop the reciprocal wells, being RangeWell Nos. 000040, 000001 and 020040;

8.4 The proposed Well No.~ is located on the Bls Osadv Fuel CorsorsffonTract contalnlna 12827~ assm and the surface, coal, gas and oil ownershave consented to ths prop(xted iocagon for Well No. gggQ that is depicted onthe Plat~hereto as ExhtbR A;

8.8 The Applicant tsstIed it has the right to operate and psr5dpsts in thsdevelopment of the reciprocal Ranee Well Nos. 000040, 000001 and 020840and that the granting of the applicabon filed herein will not impact the correlativerights of any person;

8.6 An exception to the well spacing requirements of Va. Code $ 48.1-361.17forWsfi No. IIII is necessary to effictenfiy drain a portion of the commonsources of supply (reservoir) underlying Subject Drilling Unit, and the Board'sgranting of the requested locsfion except's in the best interest of prsvsnfingthe waste of ~ mHlion cubic fest of Corwenfional Gas underlying the SubjectDrfifing Unit, and to generaHy effect the purposes of the Virginia and Oil Act;

8.7 Applicant proposes the drilling of Well No. IIIjjI to s depth of~fest on theSubject Drilling Unit st the locsfion depkfiad on Exhibit A to produce all theMississippian and Devonian Age formatkes including, but not limited to,RavencNf. ~Sta Lbns, ~r Igfgg snd Devonian Ohsts, from surfaceto total depth drlHed, ~feet ('ubject Formafions');

8.8 Appgcant proposes to drill Weg No. +/gal a distance of gQ feet closer toexlslng Range Well No. 000040; and a distance of Qggf Hect doser toexisting Range Well No. 000001; and a distance of ~ feet closer to

existing Range Well No. 820548 than the 2500 fest mandated by statewide

spacing;

8.9 Applicant proposes to complete and operate Well No. 800008 for the purpose of

producing Conventional Gas;

9. Conclusion: Therefore, the requested relief and all terms and provisions set forth

above be and hereby are granted and IT fS SO ORDERED.

10. Aooesls: Appeals of this Order are governed by the provisions of Va. Cods Ann. 845.1-361.9which provides that any order or decision of the Board msy be appealed to

the appropriate circuit court. Such appeals must be taken in the manner prescribed in

the Administrative Process Act, Va. Code Ann. 8 9-6.14:1 et seq. and Rule 2A of the

Rules of the Virginia Supreme Court.

11. Effective Date: This Order shall be effecgve as of the date of the Board's approval of this

Application, which is set forth at Paragraph 1 above.

DONE AND EXECUTED this /V day of Cl W~, 2012, by a majority of the

DONE AND PERFORMED this I f day of Tu 1vr, 2012, by Order of this

Principal Executive to the StaffVirginia Gas and Oil Board

STATE OF VIRGINIACOUNTY OF RUSSELL

My commission expires: September 30, 2013

meworri2000pmosrrrrrrrl.looetlon.exoepron.900000.order April 23, 2012)

))

Acknowhrdged on this l Y day of sf'~, 2012, personally before me anotary public in and for the Commonwealth of Virgipjh, appeared Bradley C. Lambert, being duly sworn

did depose and say that he is Chairman of the Virtjthis Gas and Oil Board, and appeared Rick Cooper,

being duly sworn did depose and say that he is Principal Executive to the Staff of the Virginia Gas and Oil

Board, that they executed the same and were authorized to do so.D,a~Diane J. Davis, Pf6tary174394 rrrrrrrrr

= oo: llfrCQ

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Exhibit "B"Well Location Exception

Well No. 900008

DEPTH-

5,910'ickenson-Russell

Coal CompanyMaxxim Shared Services, LLCAttn: Steve Smith5703 Crutchgeld DriveNorton, VA 24273

ALPHA Land & Reserves, LLCAttn: Steve Smith5703 Crutchfleld DriveNorton, VA 24273

WBRD LLCJohn Mooney5260 irwin RoadHuntington, WV 25705-3247

AGIN LLCJohn Mooney5260 Irwin RoadHuntington, WV 25705-3247

Penn Virginia Operating Company, LLCMr. John KelthSeven Sheridan Square, Suite 400Kingsport, TN 37660

Bull Creek Coal Company, LLLPCharles HartBox 187Tazwell, VA 24651

Wellmore Coal Company, LLCAttn: Andy HrovaticP.O. Box 458Big Rock, VA 24603

Marlene BartukaRt. 1 Box 23 A

Hardy, VA 24101

Mary Lee Shockley406 North Main StreetBenton, IL 62812

Melba Sexton2519 E Dublin-Granville RdColumbus, OH 43229

Page 1 of 3

Elsie DealPO Box 308Whitesburg, KY 41858

Patricia Ann Collins9860 Windsor WayFlorence, KY 41042

Gilbert Deal9101 New Falls Road, Apt. C-3Levittown, PA 19058

Kathy Jo Deal AshbyUnknown

Russell W 8 Betty Ruth DeclPO Box 928Grundy, VA 24614

Elbert Harold & Bernice Deal14524 Abaca Lakes Dr Apt. 101Fort Myers, FL 33908

Billy Joe & Judith Deci61 Leatherwood LaneDana, KY 41615

Bobby H. & Lilly Decl1418 Deal Frk RdGrundy, VA 24614

Linda & Holly BranhamPO Box 234Grundy, VA 24614

Brenda & Billy Clevinger1358 Winding Gap RdGrundy, VA 24614

Blake DealPO Box 214Breaks, VA 24607

Roxanne & William Owens1075 Finis RdGrundy, VA 24614

Clyde & Margie Deal6918 Risden RdVermillion, OH 44089

Myrtle Deal & Ed McGlothlin210 Aldrich RdVermillion, OH 44089

Page2of3

Elbert & Joann Pennington282 Viers Frk RdJackson, KY 41339

Opal & Hershel Shouse130 Opal DrJackson, KY 41339

Jeffery Gross9998 Prechtel RdCincinnati, OH 45252

Gladys Pennington Oaks130 Benny Ln

Jackson, KY 41339

John Allen YatesPO Box 559Grundy, VA 24614

Jerry L YatesRt4 Box 291EMelbane, NC 27302

Steve D Yates2220 Brittany Ln

Powhatan, VA 23139

Eddie M Yates410 Buchanan StRichlands, VA 24641

Larry Eugene LooneyPO Box 152Breaks, VA 24607

Page 3 of 3

A1,9817'ttsff

Coordfnotes57.275850

ic N27

Atrprox. t8095S9

Note 1: rheon deeds,depict o

Note 2 rhthe permit

treff etevotfbn determined by CP5surtrey from NAliN Monument P-S2e

Weff oordlnotes: (Ctfnchrretd Cool Co.)N 8J2dtt.55 E S8,081.49Area of Unit 11289 Ac.

WELL LOCATION PLAT NORA GRIO N-66

COMPANY Romeo /i'esaurces-Pine tdourtfem. Inc. WELL NAME ANO NUMBERTRACT NO, Bin Snrufu Furst Corn. ELEVATION 2-~.t79 0~LECOUNTY ~ 'fSTRICT Reck Lietr SCALE 1 = 969 OATE 1-23-21712This Plat is a new plat ~; an updated plat; or a finol location plat

+ Denotes the location of a well on United Stotes topographic Maps, scaM I tq24,000, latitude and longitude lines being represented by border lines as shoe

—-'"—' —'""~ —Licensed Land SurveyorForm DGO —00-7

900008 PlatTRACT OWNERSHIP INFORMATION SCHEDVLE

I/24/2012

1 . Big Sandy Fuel Corporation

12,627.34 AcresACIN LLC - coal (except Clintwood seam)

Alpha Land dt Reserves LLC - coal lesseeWBRD LLC - coal (except Clintwood seam)Paramont Coal Company Virginia LLC - coal lesseePenn Virginia Operadng Company - coal (Clintwood seam only)

Range Resources-Pine Mountain, Inc. - oil dt gasGas 52.45 Ac. 46.54%

2 . Big Sandy Fuel Corporation

12,627.34 Acres

ACIN LLC - coal

Alpha Land dt Reserves LLC - coal lesseeWBRD LLC - coalParamont Coal Company Virginia LLC - coal lessee

Range Resources-Pine Mountain, Inc. - oil dt gasGas 28.59 Ac. 25.37%

3 . LeaseNo. 1466620/450270591Henry H. Deal heirs - surface, oil R gas3.99AcresBull Crack Coal Company - coalGas 2.58 Ac. 2.29%

4 . Unleased

Charley H. It Gracy Decl heirs - surface, oil dt gasPart of 61 AcresBull Creek Coal Company - coalGas 16.84Ac. 14.94%

5 . Lease No. 1465335 /450270570John Allen Vates, etal - surface, oil tk gas12 AcresBull Creek Coal Company - coalGas 6.71 Ac. 5.96%

6 . Unleased

Larry Eugene Looney - surface, oil ik gas8.44 AcresBull Crcck Coal Company - coalGas 5.52 Ac. 4.90%