s,

G V I RO I NibsC'OOZ 780 )LI;~ 740

SSPORS TRR VIROINIR OAS MD OIL SOMD

DRILLINO ANIL'SRVRD ST NRLL NUNSRRRDV 2367 90 SR SRXLLSD IN TSS LOCRTICNDSPICSSD ON ISSISXT A SSRSIQ,TRR RRSRN SS IRTS, INC. TRACTNXSS rsQssaM let w

CNIANP1SiLS 5 545SSSRXSL DISTRICT,ssxss CQSNTI', vxsoINIR<the .subjec t Lands. aryartieularl5 described'n Ssshibith, attached hereto an4 as4s ayurt hereof)

RIPLXlaaF Iisi1%MM MWJNketta )I Divis iea of SCPsitable Resources )Snarl T Aemawsmesy )

)RSLISP SCOONTs I 1) SSTRSLXSWCSNT 01 TRS DRXLLINO )

llNIT DSSCRISSD XN SXNXSXT 'h" )siuwavw MD SSRVSD ST NSLL NO. )w 2367 (heroin 'SubjOst )1 lrilliag Snit~) PURSOMT TO )1I 45.1 361 20'ODS yy )'FXROXNXhe MD (2) 50OLINS OP ),'lNTSRSSTS XN SOSJSOT DRILLXNO )1WIT POSSSRNT TO 5 45 ~ 1-361.21, )i)CS)R OP VI%)XNXRi POR TNS ); sNSDNSTxcw c& cswslsNSxcNRL oxL ))NRICR ohs pRcw sosJSOT pcwNRTIONs )[herein referre4 tc as gas~) )

)LSSRL DNSCRIPTICWs )

))))))))))))

VIROXNIR OhsMD OIL SOMD

DOCKST NO.

VOOS 94W517-0444

ssapcaT ~ Tsw Dohnn

FInnIaos Ran oanan

l. ssoarssss Data aad places This natter cane on for hearing before theVirginia Oas aad ilil Soard {hereafter Soard ) at 9s00 a.a. on Nay 17, 1994,Ratlift Sall, Seas,besot Virginia Sducatioa 4-H Cantor, )Sbingdon, Virginia.

2. a aucmas Douglas S. Tssoed of Hunter, Saith 6 Davis appeared forthe Applicants Saa lra S. Rises, Assistant httcrney general, was yresent tc adviseths Sear4.

sssrioisicsticsn aud Nssticas pursuant tc 5 45.1-361.1RR SRR., Virginiacele, 1950 as ~~, the ssard finds that it has jurisdiction over ths subjectnatter. Snead uym ths evidessco preoented by Applicant, the Scard also findsthat the llpylieaas has (I) oaorcieed duo diligoace in conducting a neaniagful~sarah o! reaeeaaL ly available sources tc detoraine tho identity and wlsoreahoutsof sash gas or cll owner, coal owner, or ainoral cwaer haviag an interest inSubject Drilliag i)nit underlying and cessSsrieed of Subject Lands) (2) has givenaction tc those ysrtiss sc identified <hereafter scastissos perscm( ~)" whetherreferring to ladTsiduals, ccrynraticnn, partnorshiys, associations, ccayanies,beni== ~ teustis, joist ventures or other legal eatities) entitled by 5 45.1-361.19, Vicssticsia 3sdo, 1950 as aaondod, tc action of this apylicaticns and (3)that tbs yossoens set forth in Snhibit S hereto hove boon identl.fied by ayplicantas swears of geo m cil, coal or aineral interests underlying Subject DrillingUnit, Including those whc have nct heretofore leased cr voluntarily agreed tc

500!! 780 PACE

pool thoLx Oas interacts ln Subject Drilling Unit. turthox, ths Board has causednotice of thLs hearlilg to be published as regulred by 5 45.1-361.19.5,VirginiaCode, 1950 as ansndel. Nherwpon, tho Board hereby finds that tho notices givenherein utisfy all statutory regni~to, Board rule roqulruonts and the~lnlmm standards of state dlls process

-=~el Bshlbit B was anondod to delete as parties thou personslisted Ln Paragrayh ! who leased their gas and oil Lntereste to the Unit Operatorsubsequent to the filing of the hpplleatlon.

5. Disnissalsl The following parties who leased their interests to theOpsratorl Robert Bayou Single.

6. nnxinf a~~a Applicant raguests {1) that pursuant to 5 45.1-361.20, Code of Virg +{a, 1950, as anended, the Board establish Subject DrllllngUnit to be urvod b) Nell No. V-2367) {2) that pursuant to 5 45.1-361.21, Codeof Virginia, 1950 al anended, the Board pool ths rights, interests and utatesof tho )mlwn and un)auwn yereons listed Ln Bshiblt 5 hereof, and their knolm andunkncwn heirs, can mtors, adnLnlstrators, devious, trustus, assigns and~ueceesors, both Laamdiate and renoto, ln and to the oas fox tho drilling andoperation, inoludll0 production, of Oas fraa the Subject Drllllng Unitestablished for all non-eoalbsd fornatlons frcm the surface to the total depthdxilled of 4,000 fe*, including, but not lhaited to the Upper Devonian Shale,Sunbury Shale, Cleveland, Bores, Noir, BLU Lhae, Baron and Ravencl!.ff fornatlons{herein "Subject tolnations") underlying and conyxlsed of the Subject Lands,{hereafter ecnothaea collectively Ldsntlf Led and refsxred to as "well doveloynentand/or eyerathm Ln the Subject Drilling Unit")I and, (3) that the Boarddesignate Iyplleant as Unit Oyerator.

7. Snlinf lOantsdl The requested relLef ln this cuss be and hereby isgranted ands {1) Pursuant to 5 45.1-361.20, Code of Vlrginla, 1950 as anended,the Board hereby establishes Subject Drilling Unit) {2) pursuant to5 45 1 361 21 C 3g code of Virginian 1950 as anandedg Bguitahle ReuureesBsploration )hsreaf1 er "Unit operator" ) is designated as the oyerator authorisedto drill and eserato tho well ln the Subject Drilling Unit to yroduco Oas fronSubject tornatkoas, subject to tho Demit provisions contained in 5 45.1-361.27R5 m. ~ code of vLr finis, 1950 as anendod, to 5 450-05-22.1 ~ RRR., oas and oilReoulatlens and to 5 400-0$-22.2 R5 RE., Vlrg!.nla Oas and Oll Board Regulations,ali as anended frxal than to than) and {3) the Oae interests and estates lnSubject Drilling Ul lt of ths kncwn and unknown persons listed on Rshiblt 5,attached hereto slwl nade a yart hereof, and ths!.r known and unknown heirs,~austere, ahxinist rators, doviseos, trustus, assigns and successors, bothhnaadlate aad renotl u leased ox unlueed, be and hereby are pooled Ln tho Subjecttornations Ln ths Sidljoct Drilling Unit underlying and cenyrlsed of the SubjectLands.

Subjectternationa

hll noncoalbedforest&ms

eing at the~urfaee to thetotal deythdrilled of4,000 feet,inelmli.ntx butnot LLNLted to theUyyex'evonian ShaSunbury ShalosCleveland, Bores,

Unit Siss

hpproshaatoly125 F 66-aexocirculardrilling unit

PornittodNell Location

V-2367 (SuBshiblt Afor location

tlold andNell Classif!.cation

Ro applicable fieldrules) gas and oilwell under StatewideSpacing 545.1-361.17Code of Virginia,as unended

mir, Sig ALoo,CC'anna aa4 Ravenclii!fforant iona

soon 780 ))c: 742

For the Subject Drilling Unitundsrlping aed ~ised of ths subject

Rand Served by Well No. V-2367

Wise County, Virginia

s. slactiin aad aleutian pericdi In tho event any gas or cil ownernosed is Snhihit S has not heretofore feachod a voluntary agreasent to share intbo oyemtica of tbo well tc be located ia Subject Drilling Unit at a rats ofpaynsst aslmally o)rood to hy said gas or oil owner aa4 tho Oyerator, then suchyer¹a say elect ¹e of tbe cytioas sst forth in Paragrayh 9 below and aust givewritten notice of ais oloctbe of the option selected under Paragraph 9 hereinto the dea)6)noted gait operator at tbS address shown below within thirty (30)days f~ Sbs 4ste this Order is rocesdad in tbs county above nosed. A tisely~lestica shall ha .::to have hoon sade if, ca or before ths last day c!said$+hF yerbcd, such eleotiag posses tw 4eliverod his written election tc thadesignated lait Operator at the address shown below or has duly postsarhed andplaced his written oleetiea in first class United States sail, postage prepaid,addressed tc tho Unit Oyeratcr at tho address shown below.

9. Rlasti cn Out ians i

9.1 Oath+ 1 - Tc Particisata In Tha navalac¹ant and Oaaratinn af thaDrill%ac Uniti Any gas or oil conor nasod in Srhibit S whc has notconchs d a voluntary agreeaant with the Operator may elect toparticipate in tho develoyssnt and cysration of tbs Subject DrillingUnit I hereafter "Participating Operator~) by agreeing to pay tha~stisate of such Participating Operator' proportionate part of theactual and reaaoaable costs, including a reasonable supervisicn fee,of the well devolcysoat and cynration in ths Subject Drilling Unit,~s ¹i ie particularly sst forth in Virginia Oas and Oil SoardSogulI tion VR 6SOA 22.2, Section 10 {heroin "Caayleted forproduction Costs" ). Further, a participating Operator agrees tc payths est%sate cf such Participating Operator ~ yrcporticnato part cfthe Ra tisatod, Cesylotsd-Scr-Production Costs as sst forth below totho Unit Operator within forty-five (69) days fern tho later cf thedate if sailing cr the 4ato of recording cf this order. The~sthsated Cesyloted-for-Production costs for the subject DrillingUait are as followsi

Rstioated, Ccspletod-for-production costs i

3253,200 F 00

A Particiyating Operator's yrcycrtionato cast hor¹inder shall be tberenal) obtained bF sultiylying the Part iciyat ing Oyeratcr 'yors¹ togo Interest Within Unit as set forth in Rnhibit S tines thocosts stated isssdiatolp above Provided g however ~ that in theevent a Participating Operator elects tc particiyate and fails orrefu¹ o to yay tho sst))nate of his proportionate part of tboSatb¹ ted'esyletod for ~ion Costs as ost forth above'llwithiii tbs tine sot forth heroin and in the aanner prescribed inParagraph S of this Order, then such Participating Oysrator shall betc have elected not tc participate and tc have electedcesya isaticn in li¹i of participation pursuant tc Paragrayh 9.2hereii i.

{)ooi '780 lLCE 743

9 ~ 2 out Lou 2 - To asesivs A cash sosus cossidsrst ion c In lieu ofpartlel)atlnS ln the dsvslcpasnt and operation of Subject DrillinUUnit urdar taraOraph 9.1 above, any Oas or oil owner naaed lnSxhiblt S who has not naehed a voluntary aS~t with theOysrato c aay elect to accept a oash bonus oonsidsratlon ot $$ .00 pernet aine eral aors owned by such person, ~cinp upon estry ot thisOrder owl contlnuinS «xmaLLy uatll c~ceaont of yroduetLon trcmSubjeot Drllliny Unit, and thoroatter a nyalty of 1/0th of S/Sths{bwalvo and ono-halt yeroent {12.$$ ) ) of ths nst prooeeds resolvedby the 1)nit oysrator tor the sale ot ths oas produced froa any welldevelopment covend by this Order aultlplied by the Uas or oilowc»r' yercsntaos Intsnst Within Unit as set forth ln sxhlblt s{for puryosos of this Order, net proceeds shall be actual proceedsreoeivs% loss post~stion costs lnournd downstreaa ot thewellhsa%, LneludinO, but not LLalted to, OathorinO, coayresslon,treating, transyortatlon and aarhetins costs, whether yarforaed byUnit Opaxator or a third yereoa) as fair, reasonable and mycltable

ation to bo yaLd to Said Oas or oil amer. Ths initial cashbc»us c ihall beecme due and owinO when so sleeted and shall betendered, paid or esenwed within sixty {60) days ot recordlnS ofthis Or tor. Thereafter, a«mal cash bonuses, Lf any, shall bocoaoduo and ewlnS on each anniversary of tho date of recordinS of thisorder )n ths event yroductlon frcm Subject DrlllinS Unit has nottM I ~.& d . hll h tWMll,d~nrowsd within sixty {$0) days of said anniversary date. Once theinitial each bonus and the annual cash bonuses, Lt any, ars so yaidor esercwed, said yayasnt{ ~ ) shall bs satisfaction Ln full for theriSht, interests, and claias of such sleetinO Sas or oil owner Lnand to ".hs Oas produced freO Subject tonation Ln the Subject Lands,«coopt, however, for the 1/Sth royalties dus hereunder.

The election aads under this ParaOrayh 9.2, when so sade, shall be~atlsfaotlon Ln full for ths rlOht, interests, and elaine ot suchelastic S person ln any wall denlopa»nt and oyoratlon covered herebyand such oleotlnO person shall be doused to and hereby dose leaseand aa cLSn Lts rlSht, Lntensts, and elaias Ln and to the Oasproduced frea Subject toraatlon Ln the Subject Drillinq Unit to theUnit Cterator.

'9,3. notion 3 — To Share In Tbs Dsvslcumsst And Ceoratiou As A Son-Sortie)ustice Sarsen Os A Carried aasi ~ Asd To Smcsivs Consh4rationIn Lim of cashe In lieu of yartlcipatlnU in the dsvolopaent andoyorat{on of Subject DcllllnO Unit under panSraph 9.1 above and Lnlieu oi! reoeLvinS a cash bonus consideration under parayrayh 9.2above, any Sas or oil owner who has not reached a voluntary

L with the Operator aay elect to share Ln ths devslopasntand cOceation ot Subjeot Drllllny Unit on ~ carried basis {as a"Caxric d Well Operator ) so that tho yroyortlonate part ot theCcapls{ ed-toc Production Costs hereby allooable to such Carried Well

ster' interest Ls eharOed ayainst such Carried Nell Operator's~re c t production frcm Subject DrllllnS Unit. Such Carried Nell

Operates' riOhts, intonate, and elaias Ln and to tho Oas inSubjec{ Drllliat Unit shall bo and t»ruby an assLOnad to theUnit Ol orator until the ynceeds frcm the sale of suoh Carried NellOporatcir' share of produotion free Subject DrllllnU Unit {exeluslveof any royalty, excess or ovorridlnS royalty, or other non-oyaratlnUor non a»t~rinO burden nserved ln any lease, assLUnaent thereofor aSrcment nlatlnS thereto coverinS such interest) equals threehundrecl yorcont {300a) tor a leased Lntonst or two hundred percent{200$) for an unlsaeed interest {whichever ls apylicable) of suchcarrl«I Nell cyerator' shan ot the ccayloted-for-production costsalloeUile to the interest ot such Carried Well Operator. Shen the

BoiiK 780 PAVE 744gait Oysrator reooups aad recovers fnm suob carrLod Osll Opmatcr'saes~ d interest tbo mounts provided for above, thea, tbe assignedLate@ah of ouch carr%ed l11 oymstor shall autceaticallp revertbach t c such Carried gall Oyerator, an4 frw and sfter ouchrevere)os, such Omriod Wall Opmatm shall be treated as if it hadyarticiyated initially undm Paragraph 9.1 aboveg aad thereafter,~ueh yetieiyetiag parsee shall ba charged with and shall pap hLsi ~,Lanate part of all further costs o! such well dovelcpaent.

The oheticn nods ua4er this Paragraph 9.3~ whoa ec sado, shall besatiefietioa ia full fm Cho right, iaterests, aad elaine of eachelecth e ymsoa La anp wall dov *~sad operstioa covered hereby~a4 sash elootiag yoreea Pball hs ~ to have aa4 hereby 4ossassiga his right, interests, aad elaine in and to tbs Oss producedfern 9slvjeot Poeesaicn in tha Ash~ Drilling gait to ttw gaitcymar & for tho pmiod of ties dming which hia interest is carriedas above provided prior to its reveraioa hack tc such electingpmson

10. pailurs ta amma'Iv Rloats In the event a person fails 'tc elec'twithin tbe ties, Lt the eannsr sa4 La accordance with the torus of thi ~ Order oneof ths altereativ ao sst fort in Paragraph 9 above for which his interestgualifioe, Aaa such ymscn shall be ~ to have elected act to participatein tho v —::4eekoyaeat aad aymatisn Of dub]sot Drilllag Sail aad Shall be

aL9eet tc sap fiaal Loyal deboaeinaticn of ownership, to have electedto accept ss ostieVoctloa ia full fm ~ yersca' right, Latorests, and elainein aad to the oaa c ce coaabimacioa provided ia paregrsyh 9.2 shove fm wbLch itsinterest qualifies aad shall he ~ to have leased and/or assigned bis right,interests, aa4 chdns ia aad to Oas in the Suh]oct Drilling Unit to tbe UnitOpmatcr. Persons who fail to yseymlp sleet shall be f to have acceptedths —::::ties ~ sd taros sot fort byreia st paragraph 9.2 ia satisfaction infull for tbo right, hsterests, «ad allaies of such pmson in and tc the oasproduced few Subject Pereatisn underlying Sub)oct Lands.

11. sofas)t av savtickustiuo aorucns In tho event a yorson elects toysrticiyato uadm Paragraph 9.1, but fails or refuses tc pap, to secure thepageant ar to oahe aa arr -—— with As gait Opmatm for tbe papaent of suchperson' yeeyerthaots yait of ths pscioatod oeapleted-for-production costs as~et forth herein. sll within ths tine aad ia ths ~~~ as proscribed ia thisOrdm, than sash person shall bs ~ to have withdrawn bis election tcparticiyato aad shall hs ~ to have sleeted to accopc as satisfaction in fullfor such yeseea' right, Lataeeste, sad elaine in aad tc the Oas tbocoeeidmatioa yen44e4 La Paragvyh 9.2 above for which his interest gualifies

ee Cbe encase hur4eae attached Ce such interest. Whereupon, anf cashbeaus asasidmathe dee a~ a result sf susb ~ election shall be tenderedyaid er essrowed ly Unit Oymator within sinty [60) daps after the last day onwhish ouch default Le yereon under thLP Or4sr should have paid his proportionatepart of such cost or should have sade .satisfactory arrangeeents fcr tbs paIaontthereof. Nhea se4 sash beaus consL4aa'ation is paid cr escrcwod, it shall bo~stistactica Ln full for the right, LOterests, and elaine o! such yerscn in andtc ths oas uadml)Lag dub]oct Drilliag gait ia the sub)act Iasls covered hereby,

however, for any 1/9th royalties which would boccso duo pursuant tcParagraph 9.2 heamf.

12. aoohaasat of Ia4~s In As event a person pooled hereby isunable to roesh c veluaCarp sgremeat to chars in tbs oyeraticn of the wellcoatceyieted by t'<is Order at a rote nf yayesnt agreed tc eutually by said gasor oil eel an4 tbo Oyorater, aa4 said ysrson eleots or fails tc elect to dcothm Aaa participate under Pmagroyh 9.1above in the dovslcpeoat and operationof ths wall Ln Salvfeot Drilliag gait, thea such parson shall bo deuced to haveaad shall have assigned Ntc gait Operator such person' right, interests, andclakes ia aad to caid well, Ln sub)ect Poreaticns in subject Drilling Unit, and

BOGK 780 )'ACr. 745other abase ia «ul to Uas production to which ouch person eaT bs entitled bTreason ef aay elsstisn or donned election hereun4or in accordance with theyrevisiens of this Or4er governing sahd elections.

Unit oaratsr tcr onorator1 c Rguitable Resources Ruploration be andhereby is dasignatsd u Quit dyorator authorised to drill and operate well No.v-2361 in (hdr)oct 1 un«atians ia Bah)oct Drilling Uait, all sub)oct to the pernityrevfsicna centainud in Rection 6$.1 351.2T RR RR(5I., Code of Virginia, 1950 as

54 ~ 22 1 45 RR(5., gae Snd Oil Regs ieaa and 55 600 05-22.2 R2e'n eae aa4 Oil Rossd Regulbt(ena, all as aaan4s4 fram tine te tins,all keno,reguirsd by this Ordbr shall he ~nicated to Unit operator

ia writieg at ths address shown belsws

Bguitablo Resource Buploratkon0. Ben 1903

1909 Beat atone DriveKingeyort, TN 3266239maec (615) 226-3500Pans (615) 226-3092Rttna Dennis R. Baher, Regulatory

16. ~=-=--~ of onosationsm Unit oyerator shall ccu«unco or causat» Wl 1 tl Sill i y 11 4 I ~y fthm'h~ and s p-'!ivo (305) days free tho data of this order and shall prosecutetho ~with duo dildgsaso. Xf Unit ator shall not have so ccu«snead and/cryreeesutad, thea this Order shall ts ~, enceyt for any cash suns be«suingysysble bsseesder) otherwieo, unless sooner tsaainatsd by order of the Board,this Qeder shall euyira at 12HÃI B.R. on the date oa which anT well covered bythis Order is y«n«neatly abandoned an4 plugged. However, in the event an appealis twh4e fiv« this 0'r4sr, thos the ttu)s between tho filing of tho Petition forRyyeal aad the fi«d, Order of the Circdit Court shall be excluded in calculatingths one pear period referenced herein.

Qyon ucayletion of anT well whose costs cceyr iso part of theRstieatod Cceyletsd-for-production Coats set forth in paragraph 9.1 above, andwithin ninetY (90! days after production into tho piyslino is obtained andrestoreBLea of tbe locatiea is oceylot44, the Oyorator shall file with ths Boarda revised onh(bit reflecting the actual oceyletod-for-production costs for thoBob]est Drilling 0ait.

1$. ~sa."~ ~a Unit Operator, in a4dition to the other rightsafforded hereunder, shall have a lien and a right of set off on the Oas estates,rights, aa4 int«esto cwsod by any person subject hereto who elects toparticipate under turagrayh 9.1 in tho.Bob)oct Drilling Unit to the ortont thatcosts incurred in the drilling or operation on the sub~t Drilling Unit are achango against seals soa's interest. Bush liens and right of set off shall beseparable ss to ~ separate yarson and shall ~in lions until the UnitOperator drilling er operating aay wall covered hereby has been paid the full~nounts dos under the ter«s of this Under.

16. Racri Pcovksions c

16.1 Bssrcw Recounts RT this Order, the Board instructs the Bscrcw Agentnosed haretu or anf successor nosed by 9ho Board to establish an interest-bearing~screw ~, (tweoin "tha Rscrow Recount~) to receive and account to ths Boardpursuant to itis ag MSNost for the oscrowad funds hereafter described t

Tasowell National BashP. O. Box 909Tasewell ~ VR 26651(herein "Bscrow hgont" )

Mal @80 PiC. 746

15.2.nsssnw Irevtsisns Qnr Qnhnswn or Qnlccatabls Qarsossa If any payasntof bonus, royalty Qaysont or ether yayaant 4ue and owisg under this Order sannotbe nods ~~ tbs ysrscn sntitle4 thereto cannot he located or i.s unhnown, then~uch sash hoses, seyalty yayeset, or other ya3eeat shall not be soeaknglsd withaef funds ef ths Ow.t Oyer'ator nnd shall, pursuant te Section 55.1-351.21.D,Codsof Virg&6e, XQRO <+ ~, an4 said seas shall he 4eyositsd by ths Cyoratori~ the RsoreQ «unsent, =——::lagwithin slaty <80> days of ~leg of thisOrder, and eoatinalsg thereafter on a nastbky basis with sash ~it to ha sade,hf uss of a~ Risset ayfsnwel bf tho Inspector, by a date which is no laterthan sintv (4} dew after the last day ef ths nnstb being reported and/or forwhich Aaehs as» eel~ to deyosit. Sash fen4s shall he hold for tho seclusiveuss of, and sol» lnaofit of the yerson entitled thereto until such funds cnn bspaid to ouch jesus nf s) or anti.l tho Rasrow %gast roUnquishos suoh funds asrequired hy lsw or pursuant to Order oi'he Ranr4 in accordance with 5 55.1-351.21.D., Cods of Virginia, 1950 as anesdsd.

17. Snsnini sissiness Ths Roar4 syooifically and specially finders

17 1 hyylisi Lnt is a division of Qquktahlo Resources Rnergy Cenpany e ~~i%ion duly authorised and qualified to trassact business inths CNeoawealth of Virginia>

1'7.2 hyyliewt elaine ownership of gas leases on 94.31 ysrcont of subjectDrillk>@ Qnit and the right tc orplore for, develop an4 produce Oasfrss arne.

17.3 hyyliciuat is an operator in the C~nwealth of Virginia and hassahisf.Lod the Roard' roquirsssnts for operations in Virginiat

17.5 Syplie urr has yroyosed ths drilling of Well Ro. V-2357 on theee: Drilling Qnit to develop ths pool of Oas in Sub joct

yoraat, iona.

1'7.5 Set fe:th is Qnhibkt 8 is tho nano and last hncwn address cf each~ of record identified ht ths llpplioant as gas or oil, coal or~L owners who nay hhvs as interest in the Oas in SubjectDjciklhy Qnit underlying and eekgeksod of subject Lands of which5.49 ywseet renains unloosed by or to ths Operator.

17.5 Tha ge~ dsyth of Nell No. V-2357 is 5 800 inst.17.7 The ee<ieated production over ths life of tho proposed well is 500

akllimi cubic fast.17.8 h wall werh yorsit for well V-2357 is currently pending bofors the

Virgin.& Qepartasnt of Nines Minerals and Rnsrgf

17.9 Ryylie Let ' svtdenc ~ established that tbo fair, reascnabl ~ and~qaktal@e oewysasation to hs yai4 to any parson in lieu of the rightte yawl,ieipate in awf wall covered hsrehT aro those options providedin Perl IQFayh 9 above

17.10 Thy Subject Drilling Qnit doss not constitute an unreasonable orarbitrary ensrciss of applicant's right to enplere for or produceOas.

17.11 Tha rc il %of requested an4 granted is just acd reasonable, isby substantial +idonsa and will afford each ysrscn in the

jeel; DriWkng Qnit tbs ~unity to recover or receive, withoutuanooOI Nwc3I'ryaassy each person s just and fair share of ths~4es of the gas and/or oil fros subject Drilling snit. Tbegranth'f the Jiyyiicetion and relief requesto4 therein will ensure

BOOK /80 PACE 747to the <retest possible the Oreatest ultinate recovery of Sas andoilc prevent or assi.st in p

—=—— inS the various types of wasteprohdbit sd by statute and protect or assist in protectinS thaccrc)elative riphts of all FSrsons in the sub~ cccmon sources of

ly in ths Sub)est Lande. Therefore, the Roard is enterin9 anOrestes the relief hchnnin set forth.

ls. Ra&%as oaf,osssr askwliss cnF Rkfidavitc hpslicant or its httorneyshall file an affidavit with te Rtscretdry v)f ths Roard within slaty {60) daysafter the date of remipt of this Order Stet%op that a true and correct copy of~aid order was Railcnf within seven {7) days free the date of receipt of thisorder to eaoh pdrson pooled by this order whose address ls hnown.

19. Rvailsbi 1itv of Reit ~c The Rirector shall provide all personsnot sub)est to a'Isaac with reasonable assess te all records for su)rject orillin9Unit which are subnitted by the Unit Operator to said Rirector and/or hisInspector) s) .

20. Cosalusi nnc Therefore, the raRuested relief and all terna andprovisions eet forth above be and hereby are Sranted and IT IS So oRDRRRS.

21. RffSotiv n Datec~recut)Am.

This Order shall be effective on the date of its

DORR NR) RRRCSNRD this A~ day ofa os]ority of ths VirSinka eas and Oll ISoaqp'994, by

cnaxrnan~y R. )Rucpler

RSRR RRR ctwsrwiuCRD this W da of LP /Aiba ~Ot4 t thl

%yrSN TRChcasYalnsV'r@™l.palRsecutive P6 The Staff

vi ia oas and oil hoard

1994, by

STRTR OF VIRSIRIACOSRTT OF.RISR

))

hchnodlcu)Rsd on this.t~ day o! 1994,psramally Refers ne a notary public in and(gor the ccscnonwealth of virsinia,appeared leeiig'Raspier, bsin9 duly sworn did depose and say that he ls chairsanof the viwln%4 Ras <md oil hoard, that he erecutad the sane and was authoc'isedto do so.

Ny ccnmisslon erpireu 7/3i/94

Susan O. dhrrattRotary Public

SThTN 09 VXNSTNTh00UNTT et NTSN

BOOK 780 NATE 748

hcknoorled9ed ctn thin P day ofperaonally hefoke ef a notary, public in a

1994,, puh c n a~or the Coawonwealth of Virginia

principal Nneeutive to the staff of h~ vi ini>~ r, hain0 duly acorn did de

i a o VirNinia Oae and Oil Board, that he

Notary Wll.cNy c~ieeion enpirse 9/30/97

IROINIA: I tl Ol I Off l f Wl Ol ft Otwft I4 / & II~8This deed was preseptf ld yg ~n the annexed Certiff4t4 of acknowledffemeat adesftted t

recordit lL.C/ ~.Thetaxim byN3i41oftheCodehasbeen~ tho

amount of d Wecorded in ~ A ~t~ and Page

Teste: C. Gary Rakes, ( larkDeputy Clerk

(

I I

Latitude

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Of ~W81A

S 77'fJW'fSr.

S 82ff155 E151.4f'

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GOMPANY Enufffrhfe Atwwu nme Ejr kvwtiisn WELL NAME AND NUMBER I/-2917TTTACT NO, 2ddddftt-0 I ELEYITiON 2IT7f ffdi

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~COUNTY NEse DSTTTIGT ~ BOALE f Afm DATE

This Plat is a new plat w; on updated phft; or a final locaBon plat

+ Denotes the location of a welf on United States topographic Maps, scale 1 to24,000, latitude and longitude lines being represented by border Nnes as shown.

—,~—- "- Ucensed Land SurveyorForm OGO-G0-7

MOK 780 f'Acr. 750

EXN@fT "8"VAN

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PAGE 3 Ot 4 tAGSS

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PAGE 4 Of 4 PAGES