BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLIC~: EQUITABLE PRODUCTION COMPANY )))

RELIEF SOUGHT: EXCEPTION TO STATEWIDE )SPACING LIMITATIONS )PRESCRIBED BYVIRGINIA )CODE ANN. tj 45.1-361.17(A)(2) )

)LEGAL DESCRIPTION: )

)WELL NU MBER V-4077 )PENN VIRGINIA TRACT 749 )WISE QUi tDRANGLE )GLADEVI LLE MAGISTERBK DISTRICT )WISE COllJNTY, VIRGINIA )

DIVISION OFGAS AND OIL

DOCKET NO.00-0516-0807

REPORT OF THE BOARD

FINDII46S AND ORDER

Hearing Date aad Place: This cause catae on for ~ before theVirginia Gas.and Oil Board. (hnrehta8er "Board") at 9:00a.m. on May 16,2000, Southwest Virginia Higher Edueirtinn Center on the ~ ofVirginia Highlands Community College, Room 240, Abingdon, Virginia.

2. Annearances: James E. Kaiser of Wilhoit dt Kaiser, ~ ibr theApplicant and Sandra B. Riggs, ~Attorney General was passantto advise the Board,

Notice and Jurisdicnon: The Board Ends that it has jurisdiction over thesubject matter. The Board also finds that the Applicant has exercised duediligence to locate and provide notice to all persons entitled to notice ofthis proceeding.

'.

Relief Reauasted: Applicant requests an exception to,the sh@sv@kspacing rcquirenunits set forth in Va. Code 4 45.1-361.17for Well NumberVM77 for Applicant's development and operation of Conventional Gas&om the Mississippian and Devonian Age formati)sits ~ the BaseLee Sands, Ravensliff, Maxon, Big Lhne, Borden, (Weir), Sunhasy She,(Coffee), Beiea, Devonian Shale, Chrveland, Upper Huron and LowerHuron formations, from surface to total depth drilled of 4,000 feet,

excluding coslbeds and mck strata associated therewith ("SubjectFormations" ).Applicant reqdestS the Board's consent to drill Well NmnberV4077 2,381.70 feet &om existing EPC Well Number V-3240 and2,341.50 feet from existing EPC WeH V-2733, at the location depicted onExhibit A hereto.

5. Amendment: None

6. Reasons Relief Should be Gnmted: Evidence presented on behalf of theApplicant shows, and the Board fmds that:

(1) The surface owner, the U. S. Forest Service, snd the Applicanthave agreed to the location for the Well depicted on the platattached hereto as Exhibit A ss being a location that will haveminimum envimnmental impacts as revealed through anenvimnmentsl assessment and arcbeological survey dane by saidsurSm owner, and that will not significantl intedbte with saidowner's surtbce uses or potential srcheological uses, ~polanM archeological site(s) within the Jeffbrson National Forest.

(2) The~Well V-4077 is located on a coId, oil sud gsa tractconsisting of 6,604.27 acres, known ss Penn Vhginia Tract 749,snd the coal, gss snd oil owner bas consented to tbe 1~depicted on the Plat.

(3) The Applicant represents it has the right to operate and develop thereciprocal WeHs V-3240iasd V-2733, snd that the ~of the

thea net hupsct the correlative rights of any penmn.

(4) An expert witness testl8ed that tbe location exception wasnecessary due to constraints imposed by the surgsce owner, sndthat the granting of the locanon exception wss in the best mlatestof preventing the waste of 450 mmcf in converttional gss reserves,protecting conelstlve rights and maximising recovery ofCon entional Gas underlying Subject Drilling Unit depicted on tbePlat.

7. Relief Granted: The requested ruhef in this cause be and hereby is grantedallowing the Applicant to petmit snd drill Well Number V-4077 2,381.70feet &om existmg EPC Well V-3240, snd 2,341.50 feet trom existing EPCWell V-2733, at the location depicted on Exhibit A hereto.

8. Findinas: That the well location exception is needed in order to preventthe waste of 400 mmcf of Conventional Gas reserves, protect combativerights and to generally effect the purposes of the Virynia Gss snd Oil Act.

9. Effective Date: This Order shall be effective on the date of its execution.

DONE AND EXECUTED this / f~ day of June, 2000, by a majority of theVhginia Gas and Oil Board.

Chairman, %qgr R. Watrlpler

DONE AND PERFORMED this 20 Ray of June, 2000, by order of this Board.

MXrw>'.W

WilsortPrincipal Executive to tbe StaffVirginia Gas and Oil Board

STATE OF VIRGINIA )COUNTY OF WISE )

Aclutowledged on this ~ day of June, 2000, personal y before me a notarypublic in and for tbe Common~ of Virginia, appeated Benny Wamphtr, being dtdysworn, dhl depose and say that he is Chairtnan of the Viqpma Gas and Oil Board, that heexecuted tbe same and was authorized tn do so.

Notary Public

My commission expires: July 31,2002

STATE OF VIRGINIA )COUNTY OF WASHINGTON

Achnowledged on this~ day of Junc, 2000, pesonally before me a notarypublic in and for the Commonwealth of Virginia, appeared B. R. Wilson, being dulysworn, did depose and say that he is Principtd Executive to the Staff of tbe Virginia Gasand Oil Board, that he executed tbe same and was audtorised to do so.

Dhme J.Davis <Notary Public

My commission exphes: September 30, 2001

nr J~

Sos sneeeiiiAiss or Slat ~ 112. Ae,

WELL LOCATION PIAT

NSe ~ fttL 81. Iiaiiis S. 2lsiieiso +5N 4011,1dt42 E In~~et

WELL ~ fdtO ~ ti-dftysteer se. Ib- Stdd EL&i&aft -IssAde'tffdttbtftIE ~OOMfttv ~ OstftCt ~ '5LE I ~ dtte" INK 3~%is tstot is o eeijr islet ~:on updated islet~; or o final location lAst

+ Oanotes the iteootlon of o wee on United ~~ tdefe, side t to24,OOO. lo5hlde end Inasrrbsde roses befnlr by berder fines es sheen.

Form OCO-GO-7—'~ Lend Swveyw