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SBPINX TBR VXRSWXL QAS LBD OXL BOARD

SII00%i ~ OB~ s~XNIRLRFPS> 1SRT> VC 5174(herein 'habjec I Drilling Quit') DOCKRT NRSN VOOS-94/05/17-0047

1. This I/uppleseatal Order is entered by ths heel sua spanto in thefera eutherise4 by the heel at its bearing held at 0s00 a.a. on October 20,1992, Beard ef Supervisors Rosa, cburthouse, grundy, virgfnda, snd pubsusntto authority Sweated to tho Board's'bsisnan at ths hearing of the vLTBLnjaOas and Oil Board on June ld, 1092 at 9<00 ~ .n. at the Rh-: ronRestaurant at the greeks xntsrstlsts park, Breaks, virginia) an4 thisSuppleaental Order is bs ro for theLug purpose of (1) ccnggyLSg withthe raguirseeaei of ~ 7.c of ths VLVSLnda gas snd Oil Soar4 Regulations, VR400-05-22.2 by suppleaenting the'rder previously issued by the saar4 forthe subject Doc(nt on tune 2, 1994 0nd re@aM at seed soak 501, pnge 144in tho Office sf the Clack of ths CLrcuit Court, W~~ County, VL2NLniaon June ld, 19$ , (herein 'Board Order') to coapl,ete the record regnrdingelections. Ths Board Order pool04 all interests Ln Subject DrLXXLns Baitincluding thos< of the Respondenlts sero particularly set fort% andLdenudffod by the Designated Operator Ln the affidavits attacbe4 hereto andnods ~ part leeef. Ths heel fin40 it has jurisdiction over the su)bjectnatter puesuen: to the psovisions of the v Oas and oil kct, 0 45.1-501.1Rh BSR., 1irginia Cods, 1950 as =:=.

2 ~ F<wa<~ ~ \ The Board finds that i

(a) Ibe Board Order directed Ik(uitable Resources Bnploration(herein the 'Oaeignated Operator', to nail copies of the Beard Or4er to allRespondents shoes interests, if any, were pooled by said Board Order>

(b) ".he Designated Operator filed its affidavit of nailing datedduns 25, 1994 disclosing that it ~ nailed ~ true aud correct copy of theBoar4' Or4er t.o all Respondents «hoss interests, if sny, wars poobsd bysaid Beard Order I

(c) ".he Soar4 Order rsguired each Respondent whose interests, ifany, wore poolsd by the terna of said Board Order to nake his or herelection within thirty (50) 4ays agtor the 4ste of sndling or recording, asaspldeabdeo ef ~ Lid order I the Desi operator bas file4 its sff14avit4ats4 Septahe) 2, 1094 in accord'gth 7.c of tba VLsginia gos ssH OilBoard Rogulatiomis and VR 400-05-22.2 (herein 'kffidavit of Rlectien')wherein it has, for each Respondent whose interests ~ if any, wore pooled by~aid Beard Order, stated'i) whether oaoh Respondent has nad ~ or failed toasks a tiaely eLection; (ii) the nalturs of the election node, if snyI (iii)

sly 30b PNE 101

whether, by ress>n> of ~ failure to elect or to tinely elect one or noreRes~ ~ are does>ed, uader the terna of the Beard' Order, to have leasedall their rights, title, interests, estates and elaine in Sub]oct Drilling(Slit to the Des(gested Opere'tor;

(d) (he Board Order further required the Designated Operator,after expirati)n of the election )(sriod, to file with the Beard a stat~of the interest> sub]ect to escrow under the terna and provisions of theBoard Order, ia light of the elections sade or deensd to have been s>sde(herein 'Stan>nt of Interests') > that tbe Designated Operator 9urnishedsaid Btatewat i>f Interests as part of its dffiAvit of Rlsction. 4 cop>y ofwhich is attach»d hereto as RXhibit S.

(~ ) >b>rrent Board standasds re>iuiring tho escrow of fua4s and theBeard' agree@a»t with its Rscrow dgent, Taeeeall Rational Sank, P. O. Sox909, 'Tanewnll, 1FLrginia 26651, or any successor nss>ed by ths Seer4, reguirethe entry ef a I>upyl~tal Order establishing of rocmd the elections audeor deeaed to h>ve been nado and specifying the scsN or percentage thereofsub)oct to sacr> N

S. QgggZ.> By this Order, tbe Board mArs ths Designated Operator totender, consist>nt with and in accop4anc» with the findings sst forth atparagraph 2. a'>eve and the dffidavits, any funds sub)ect to escrowand instructs tee Rscrow agent, Tasewell Rational sank, p. o. Bo>a 909,Taaewell, erg..nia 26651, or any successor nosed by the herd to establishinterest-beari>ig escrow account(9), IRB Tax Identification Rwsd>er 54-1029506, in accordance «ith the infmnstien eet forth in said dffidevits toreceive such feeds and account to the Board therefore.

6, Iaaillu s cf 0sdar aad tiline e>f ass~it> Ths Designated OperatorunAr the ceptissod order or its dtgoraey shall filo an affidavit with theSecretary of tl,e Board within test (10) days after the date of receipt ofthis Order stati>LR that a true sn4 9orroct copy of this Order was nailedwithin seven (7) days fron tbe date of receipt of this Or4er to each personwhose interest o>; clais> is sub]ect t>o escrow and whose address is knsen.

5. Ceucl» aicu> Therefore, the findings and all terna aad provisionsset forth above >o and hereby are granted and IT IB BO ONNRRD.

6. Rffect.Lve Date> This Order shall be effective on the date of itsexecution.~M ~~ this ~4 dny 1906, by a mjssity oftbe Vixgfnda Ras end Oil Beard.

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V I R G I N I A:sss((30b wsE 163

BEFORE THE VIRGINIA GAS AND OIL BOARD

IN RE:

Application of Equitable Resources Exploration for ForcedPooling of Interests in Unit Number VC-3174, VGOB Docket No.VGOB-94-0.'17-0447 in the Ervinton Magisterial District ofDickenson County, Virginia

AFFIDAVIT OF HUNTER, SMITH & DAVIS, Attorneys-at-Law, Agentsfor the Designated Operator REGARDING ELECTIONS, ESCROWACCOUNTS AND SUPPLEMENTAL ORDER

James E. Kaiser (herein Affiant), being first duly sworn onoath, deposes 4 nd says:

That the Affiant is an attorney in the law firm ofHunt4r, Smith & Davis, the Agent for the DesignatedOperator, with offices located at 1212 North EastmanRoad, Kingsport, Tennessee 37664, and is authorized togive this Affidavit in its behalf;

That the Order entered on June 2, 1994, by the VirginiaGas snd Oil Board regarding the captioned CBM Unitrequired the Applicant to mail a true and correct copy ofsaid Order to each person pooled by said Order;

That '«ithin seven (7) days of the receipt of an executedcopy of the Order referred to at Paragraph 2. above, theAffiant was directed to cause a true and correct copy ofsaid Order to be mailed via the United States PostalServi=e to each Respondent named in the captionedAppli ation, whose address was known, and to all persons,if an i, who were added as Respondents at the hearing heldin ca stioned matter;

That :he Order of the Virginia Gas and Oil Board in thecapti oned matter required all persons pooled thereby totender their written elections to the Unit Operatorwithi:> thirty (30) days of the date said Order wasrecorded in the county above named; that said Order wasrecorded on June 16, 1994;

That the Designated Operator, by and through their agent,HUNTER, SMITH & DAVIS, Attorneys-at-Law, have establishedprocedures to review all mail received and all writtendocuments received by means other than by mail toascertain whether parties whose interest have been pooledhave made a written election, in a timely fashion, asrequi> ed by the captioned Order; that said procedureswere :ollowed to identify the elections, if any, madewith r egard to Subject Unit; that the following persons

sII30b p)(SE 104

deli rered, by mail or otherwise, written elections to theUnit Operator, within the thirty day election period:

None.

That the interest and/or claims of the following persons(who made timely elections, or who are deemed under theterm. of the Board's Order to have leased, or who,subsequent to the pooling hearing held in the captionedmatter, have leased or otherwise entered into anagreement with the Designated Operator) are subject toescrow under the Board's order pooling the captionedUnit, Board Regulations and the Code of Virginia; thatopposite the name of each person named as a Respondentlisted below is set forth:

Channe R. and Peggy Barton — Coalbed MethaneConflicting Claimant$66.50 bonus cash consideration ($5.00 per netmineral acre).0282875 royalty interest (12.5% X 22.63%)

That after the pooling hearing held in the captionedmatter, the following persons have leased or entered intoa voluntary agreement with the Designated Operator withregard to their interest:

None.

That the following persons have not made a timelyelection and have failed to enter into an agreement withthe Eesignated Operator and their respective interestsshall be deemed to have leased pursuant to and inaccordance with paragraphs 3 and 2(c) of the Order.

sone.

That Pursuant to the provision of VR 480-05-22.27.C andVR 480-05-22.2.8, annexed hereto and incorporated hereinis a proposed supplemental order to be entered tocomplete the record regarding elections; that saidannex d supplemental order sets forth and identifies theconfli.cting claims and/or interest which require escrowof funds pursuant to the terms of 5% 45.1-361.21.D,45.1-361.2:!.A.3and 4.

Dated at Kingsp rt, Tennessee, this 2nd day of September, 1994.

Im 30b 5

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Taken, subscribed and sworn to before me by James E. Kaiser, theAgent of Equitable Resourgps Exploration„ a corporation, on behalfof the corporation, this+~ day of 1994.

My commission expires: March 12, 1996

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Pbse lgaaasaia OR@ i 3as, lac. Leased.RREK 7797% 45.47ATTN: Rlefgssd ItQI hatt 34%4ggL~P.O.Raa 4000 PO~Lebaew, VA 24066 T-313

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7797% 45.47

Chaaae R. Rsesea aadPaggP Rassaa, H/W%ease A, Rax 175Ree, VA ~7

Leased-RREX 228% MO2447$6L-01

Page 1 el 2

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CS«chnehl Cool Co.ATTN: Peal 6«S6,Chief F~P. O. Sox 7Seater VA 24237Pysh Reteaseee Coul eayATTN: Lorry CS«e,ProPerty hfea8erP. O. Sox $100Lebeaoa, VA 24266

Lett«6-SREX 7737% 4$A7241400L-01PO W40T-313

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Eaktebhr Red«added Ex fhslecion

Tract 1 Total 7737% 45 47

CSaehEehl Ceal Co.ATTN: Peal GaS6Chief~P. O. Sox 7Death, VA 24237Pyxfe Reeoorode Cas«PI ayATT¹ Larry CSae,Proyerty MaeegerP. O. Sox $580Labe«ca, VA 24266

Lees«6-EREX 2283% 1330243648L<1PO 01042T2(C)-242

100AN% 50.77

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