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i60000135DONE AND EXECUTED this 21 day of January, 2016 by a maJorlty of the Virginia Gas and OilBoard.
Chairman, Bradley C. Lambert
COMMONWEALTH OF VIRGINIACOUNTY OF RUSSELL
Acknowledged on this '2l- day ofJgtrl~ .~~personaily before me a notary publicIn and for the Commonwealth of Virginia, apffesmd Bradley C. Lambert, being duly sworn diddepose and say that he is the Chairman of the Virginia Gas and Oil Board. that he executedthe same and was authorized to do so.
.L ~~~'.,".',",""„.puEILIC
My Commission expires: July 31, 201 7 -*:REG. ¹262946MM BEIIIIIggiISSIQN
= o . EXPIIIBL0 '.7-.R/-/ /DONE AND PERFORMED this 25 day of January, 2016 by Order of the Virginia Gas mfi6dgk..Board.
gg II I I I I I II
Rick CooperPrincipal Executive to thestaff, Virginia Gas and Oil Board
COMMONWEALTH OF VIRGINIACOUNTY OF RUSSELL
Acknowledged on this ~ay ofZ/tnu~,~, personally before me a notary publicin and for the Commonwealth of Virginia, appehred Rick Cooper, being duly sworn diddepose and say that he is the Principal Executive to the staff of the Virginia Gas and OilBoard, that he executed the same and was authorized to do so.
My Commission expires: July 31,2017
Q, L.P,,~262946 Ill llggggg
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REG ¹262946 *=*:MM EB',itl'SSIGX
EIlii RESo~ '. ~7
11111111
Page Number 4.
i6000013D
BEFORE THE VIRGINIA GAS AND OIL BOARD
PETITIONER; EQT Production Company DIVISION OF GAS AND OIL
DOCKET NO: VGOB 02-0115-1000-02
RELIEF SOUGHT: (1) DISBURSEMENT FROM ESCROW REGARDING TRACT(S) 1 (2) ANDAUTHORIZATION FOR DIRECT PAYMENT OF ROYALTIES
HEARING DATE: August 18, 2015
DRILLING UNiT: VC-508899
BUCHANAN COUNTY, VIRGINIA
PETITION FOR ORDER OF DISBURSEMENT OF ESCROW FUNDS
1.Pedtioner and its counsel
Petitioner is EQT Production Company, 625 Liberty Avenue, EQT Plaza, Suite 1700, Pitlsburgh,PA 15222, 412-395-3921.Petitioner's counsel is James Kaiser, Wilhoit and Kaiser Law Finn,220 Broad Street, Suite 210, Kingsport, TN 37560 .
2. Relief Sought
Petition for disbursement of funds and authorization for direct payment on behalf of the known
owners on Tract 1 on Well VC-508899, VGOB 02/01/15-1000.
3. Leg a I Authority
Va. Cods Ann. g 45.1-361.1st seq., 4 VAC 25-160-'l40., and relevant Virginia Gas and Oil
Board Orders ("Board') heretofore promulgated pursuant to law.
4. Type of Weg(s)
Coalbed Methane
5. Factual basis for relief requested
Plaintiffs were conflicting claimants with regards to Tract 1 as created by VGOB 02/01/15-1000.To resolve this conflict, Buchanan County Circuit Court Order, Case No. 550-13, dated July 10,2014, is attached hereto.
6. Attestation
The foregoing Petition lo the best of my knowledge, information, and belief is true and correct.
Page Number 5.
9,570
(0(t(ude 37 20 00
Lease lic. 24/490LCgncb8cid Coal Company /pysis Resources Company —caa/ (~ s/L)pme I/cantata Gri /k Gas, /nc. —ail dr gas (Olyi int.)Lease ira. 009070Plum Creek Rmbar Company'oal, at 8 gos (202 int)Sguhoble PraducOon 'Ca .— /Oae /ease In 20$ ini. ak' gasIkgghlcnd Resources, Inc. —Soir /ease in 2OS ini. Csu gas on/yGeo ilat Operating, Inc. —50$ lease ia 20$ int. Cs/I gos anly377/ AcresGas 834 Ac. S.48/r
m c4
oO
Ire/I eieva8an determined by GPSsurvey from I/ARIV Sta GAP AZII/i Area ol Unit = 51.19 Ac.
WELL LOCATION PLAT
tes: (VA St. Plone S. Zans,uloted from IVAO 83 caord)8 1.02/,I /9
Iyap CoarChnotesr (VA S/. P/ane S. Zane,ivAO 83)H 3852292.08 8 /0,504,10762
OMPAlf( Eauitn/I)e Production Conlonnv WEI.L NAME AN D hlUMBER I/C —508899CELEVATION 2401.99 QUADRANGLE BrndchnwTRACT NO, 22
DISTRICT Gordon SCALE 1 = 400.'ATE 2-11—2002This Plat is o new plat~; an updated plat; or o final location plat
0 t th I cation of a well on United States topographic ldaps, scale I to24,000,,latitude and longitude lines being represented by bord .
eno es e oca'der lines as shown.
Licensed Land Surveyor. Form DGO —GO —7
Page bio/aber 6.
FEXa —1 a.—aud HGH
PostW Fax No'le 7671lrr Fmln
~60000i389 X7 GLEHH F PHXLLXPS K LO P 81lkfP~; M~~P'g~'q
Mimir M=
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Page Number 7.
EXHIBIT wB"
VC-508899VGOB 02/011'I 5-1000
Revised 7/09/2015
TRACT LESSOR
INTEREST GROSS NETLEASE WITKIN ACREAGE REVENUE
STATUS UNIT IN UNIT INTEREST
Gas Estate Onlv
Lon B. Rogers Bradshaw Trust No 1
Fon Rogem II TrusteePO Box 22427Lexington, KY 40522-2427
1 Leased-EPC 0.686400 35.137500 D.D858000D Rl
245280L 015859-00
Tr. 22
Gregory Poulosand Karen Poulos, H/W
1894 Glenwood St NEPalm Bay, FL 32907
Llnleased 0.038133 1.952100 0.00476667 Rl
Jason Poulos, single10870 SW 95th StreeMiami, FL 33176
Llnleased 0.038133 1.952100 0.00476667 Rl
Pamela Poulos, single5000 SW 83rd StreetMiami, FL 33143-8510
Unleased 0.038133 1.95210Q 0.00476666 Rl
Talmage G. Rogers, OI endTracey Rogers, H/W
3014 Shelford LaneMetlhews, hlC 28104-6879
Llnleased 0.02860D 1.46410D 0.0035750D Rl
Sheen D. Rogersand Nadine Davey Rogers, H/W
121 NE 100th StreetMiami Shores, FL 33128
Unleased 0.028600 1.464100 0.00357500 RI
Kevin H. Rogers andKatherine Rogers, HNV
139Wickharn RoadGarden City, NY 11530
Unleased 0.028600 1.46400D 0.00357500 Rl
Derek B.Rogers andAnne Rogers, H/W
2300 Carmel RdCharlotte, NC 28226-6323
Unleased 0.028600 1.464DOO D.00357500 Rl
Equitable Production Company
Tract 1 Totals0.8DD80000 Wl
0.915200 46.850000 0.91520000
Page Number 8.
460000iBu
Pittston Companyc/o Rine Mountain Oil 8 Gas, Inc.Attn: Richard Brillhart
PO Box 5100Lebanon, VA 24226
Leased —EPC 0.067840 3.472000 0.00848000 R124149GL
Plum Creek Timber CompanyAttn: Kerry Hill
3G3 Harper Park Drive
Suite, A
Bsckley, WV 25801
Unleased 0.016960 0.8680GG 0.00212000 Rl
Equitable Production CompanyTract 2 Totals
0.07420000 Wl0.084$0D 4.3400DO D.D8480DOG
TOTAL GAS ESTATE 1.0DODOD 51.190GOO 1.00DDODOD
Coal Estate Onlv
1 Lon B.Rogers Brsdshaw Trust No 2 Leased-EPC 0.915200 46.850000 0.11440000 RI
Fon Rogers II Trustee 24528GLPO Box 22427 Tr. 22Lexington, Ky 40522-2427
Equitable Production CompanyTract 1 Totals
0.80080000 Vl/I
0.915290 4$ .850000 D.91520000
Ptttston Companyc/o Rine Mountain Oil 8 Gas, Inc.Attn: Richard Brillhart
PO Box 5100Lebanon, VA 24226
Leased - EPC 0.067640 3.472000 0.00848000 R1241 490L
Plum Creek Timber CompanyAttn. Kerry Hill
303 Harper Park Drive
Suite, A
Beckley, WV 25801
Equitable Production CompanyTract 2 Totals
TOTAl COAL ESTATE
Unleased 0.016960 0.866000 0.00212000 Rl
0.07420000 WI0.0848DO 4.340000 D.0$4$8000
1.0000GD 51.19GOOO 1.00008000
Page Number 9.
EXHIBIT "E"VC-508899
VGOB 02/01/15-1000Revised 7/09i201 S
N/A
Page Number 10.
EXHIBIT "EE"VC-508899
VGOB 02/01/1 5-1000Revised 7/09/2015
Gas Estate Ottlv
Gregory Poulosand Karen Poulos, H/W
1894 Glenwood St NEPalm Bay, FL 32907
Unleased 0.03813333 1.952100
Jason Poulos, single10870 SW 95th StreeMiami, FL 33176
Pamela Poulos, single5000 SW 83rd StreetMismt FL 33143-8510
L/nleased
Unleased
0.03813333 1.952100
0.03813334 1.952100
Talmage G. Rogers, III andTracey Rogers, H/W
3014 Shallord LaneMatthews, NC 28104-6879
Unleased 0.02860000 1A64100
Sheun D. Rogersand Nadine Davey Rogers, H/W
121 NE 100th StreetMiami Shores, FL 33128
Unleased 0.02860000 1.464'l00
Kevin H. Rogers and
Katherine Rogers, H/W
139Wickham RoadGarden City, NY 11530
Derek B. Rogers andAnne Rogers, H/W
2300 Carmel RdCharlotte, NC 28226-6323
Unleased
Unless ed
0.02860000 1.464000
0.02860000 1A64000
Tract 1 Totals 0.22880000 11.712560
Total Disbursed 0.2288 11,7125
Page Number 1 l.
VIRGINIA: IN THE CIRCUIT COURT OF BUCHANAN COU¹V
GREGORY G. POULOS, JASON G. POULOS,PAMELA P, POULOS, SHAUN D. ROGERS,KEVIN H. ROGERS, DEREK B.ROGERS andT.G.ROGERS, III,
Plaintitfs, Case No. 550-13
I BRHOLDINGS, LLC,
Defendant.
ORLE R
This matter, having come before the Court for hearing on June 2, 2014, on the
parties'espective
xnotions for suuuxuuy judgment, and the Court, having reviewed the written submissions
of the parties and having heard oral axgument of oMmsel, aud for good cause shown, hereby
ORDERS:
1. Plaintiffs'omplaint ami Defendant's Counterclaim both request that this Court,
pursuant to Virginia Code g 8.01-184, declare their respective rights under the May 27, 1938,deed
("Deed") attached to Plaintiffs'omplaint as Exhibit "A."
2. The Deed includes a conveyance by T, G. Rogexs and Martha F, Rogers, his wife
(the "Talmage Rogers Group" ), and Lloyd Rogers snd Anne F. Rogers, his wife (the "Lloyd
Rogers Group" ), oftheir interests iu certain parcels ofproperty in Buchaxum County, Virginia, (the
"Property") and McDowell County, West Virginia, to Lon B. Rogers. The Deed specifically
recites: "But there is excepted from the above-described property an undivided one-half interest in
the oil and gas under said property and the same is reserved to T. G. Rogers and Lloyd Rogers,
Page Number 12.
parties of the 5rst part, their heirs and assigns, together with the usual and necessary rights of
ingress and egress and hillhrg rights to explore, get and remove said oil and gas."
3. It is undisputed that Plaintif& are the successors to the interests of the Talmage
Rogers Group under the Deed, and that Defendant, LBRHoldhxgs, LLC ('LBR'*), is the successor
to the iuterests ofLon B.Roy'nd the Lloyd Rogers Group under the Deed.
4. Plaintiffs seek a declaration that the Deed's reservation of gas under the Property
includes, inrer aiirx, coalbed methane gas, and that they are, therefore, the owners of 23% of the
coalbed methane gas under the Property snd entitled to the assodated royalties. LBR, on the other
band, seeks a declaration that the Deed's reservation of gas under the Property does not include
coalbed methane gas, kat the Deed, therefore, conveyed coalbed methane gas to Lon 8.Rogers,
and that LBR, as Lon B.Rogers'uccessor-in-interest, is the owner of all the coalbed methane gas
under the Property and entitled to the associated royalties.
5. Having examined the reservation language and the "four comers" of the Deed, the
Court 6nds that the Deed is unambiguous and that the Deed's reservation of "the oB and gas under
said property" includes a reservation of coalbed methane gas under the Property. PlaiatiKs are,
therefore, entitled to prevail as a matter of law.
Coalbed methaae gas is ebvhmsly "gas," see JkwHson-?Fyrrrr. ILC v. Jtrxth+ 593
S.E.2d at 234, 23$ (Va. 2004) (coalbed methane "is a gas"); and there is nothing in the Deed that
removes coalbed methane or aay other type ofyrs &om the scope of the reservation. The language
at issue is unlimited, plain, and unambiguous.
7. LBR argues that "the oil and gas" does not mean "all" but only "some" gas. The
Court agrees with PiaintiFs, however, that ihe reservation of"the" gas is not a limited reservation
of only some types of gas, but an unambiguous and unlimited reservation of all gas. Such an
Page Number 13.
interpretation of "the" is in accordance with the ordinary, plain and common sense meaning ofthe
word.
8, LBR also argues that the parties to the Deed would not have intended to include
coalbed methane gas in the reservation because, according to LBR, the commercial value of
coalbed methane was not known in 1938,LBRpresented no evidence in support ofthis argument
and Plaintiffs presented undisputed evidence to the contrary, ReganGess, this Court is bound to
uphold the unambiguous ~on hrnguage„which rekus to gas without qualification or
limitation, and which, as written, encompasses all types of gas, whether commercially exploitable
at the titne of the Deed's execution or not.
9. The Court concludes that the arguments and authorities presented by Plsin6% in
their motion and reply brief are well-founded and correct A ruhng in LBR's favor would require
the Court to rewrite the Deed, which it will not do. Nor will the Court torture words and phrases
or engage in speculation to create an. ambiguity where tbe ordinary meaning of the words leaves
no room for ambiguity.
10. There are no issues of materhd fact in dispute regarding Plaintiffs'wnership of
25% of the coalbed methane gas under the Property. The Court grants Plaintiffs'otion for
nt in fuH snd dames LBR's mohon for~judgment in full.
11. This Order constitutes a judicial deierrnination of coalbed methane gss ownership
as between Plaintiffs and LBR pursuant to Virginia Code 5 45.1-36L22(5)(i) and resolves in
Phintiffs'avor all conflicting claims of coalbed methane gas ownership between Plaintiffs and
LBR relating to the Property.
12. Plaintiffs are entitled to receive all coalbed methane gas royalties attributable to
their 25% gas estate interest in the Properly that are being held in the Virginia Gas and Oil Board's
Page Number 14.
180()()01
escrow account or otherwise being withheld Irom PlsintiQs due to the conflicting claims ofcoalbed
methane ownership between Plaintiils and LBR. Plaintiffs are also entitled to receive all future
coalbed methane gas royalties or other proceeds that are attributabie to their 25% gas estate interest
in the Property. All such royalties and pmceeds shall be divided among the individual Plaingffs in
accordance with their respective percentages of ownership.
SO ORDERED, this the +day of 44, 2014.(
H~m(2—.Qfrcuit Court Judge
SEEN AND REQUESTED:
(7», Jk~~r ~can>Per L. Shaver, RFq (VS'9047)llis Professional Budding, Suite A11 West Main Street
Abingdon, VA 242 l 0Teiephrme: (276) 525-1103Facsimile: (276) 525-1112JenNJenshaver.corn
Counsel for Plainrifr's
SEEN AND OBJECTED TO FOR ALL THE REASONS DETAILED IN LBR. HOLDINGS,LLC'S MEMORANDUM IN SUPPORT OF ITS MOTION FOR SUMMARY JUDGMENT
AND RESPONSE TO PLAINTIFFS'OTION FOR SUMMARY JUDGMENT AND AT THEHEARING; AND ON THE ADDITIONAL GROUNDS THAT TO THE EXTENT THE COURTMAY HAVE CONSIDERED SUBMISSIONS OF EXHIBITS OTHER THAN THE DEED AT
Page Number 15.
ISSUE, THE COURT SHOULD HAVE DENIED BOTH PARTIES'OTIONS FORS~Y JUDGMENT SO THAT BOTH PARTIES WOULD HAVE HAD AN
OPPORTUNITY TO DEVELOP AND PROPERLY INTRODUCE SUCH EVIDENCE:
tTr9tror L. Earl, Esq. (VS'7573)kf ED WEITKAMP SCHELL lt: VICE PLLC500 West Jeffersoa Street, Suite 2400Louisville, KY 40202Telephone: (502) 589-1000Facsimile: (502) [email protected]
Counsel for LBR Holdings, LLC
INSTRUHENT t(1600001%RECGRBED IN THE CLERK'S OFFICE l3F
BUCHANAN COUNTY QN
FFBRUARY 2. 2016 AT 02:29PN
BEVERLV S. TILLER> CLERK
RECDRBEI3 BY: SLP
Page Number 16.