pg()qnl4060000/ 47 AUG(98

VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

SUPPLEMENTAL ORDER REGARDING DOCKET NO. VGOB 02/09/17-1075

ELECTIONS, UNIT: V-502710

(hereinafier "Subject Drilling Unit" )

REPORT OF BOARD

FINDINGS AND ORDER

1. This Supplemental Order is entered by the Board sua snonte in the form authorized bythe Board at its hearing held at 9:00a.m. on October 20, 1992, Board of SupervisorsRoom, Courthouse, Grundy, Virginia, and pursuant to authority granted to the Board'sChairman at the hearing of the Virginia Gas and Oil Board on June 16, 1992, at 9:00a.m. at the Rhododendron Restaurant at the Breaks Interstate Park, Breaks, Virginia;and this Supplemental Order is being recorded for the purpose of (I) complying withthe requirement of the Virginia Gas and Oil Board Regulations, 4 VAC 25-160.70C bysupplementing the Order previously issued by the Board for subject Docket on May29, 2003 and recorded at Instrument No. 2003254$ , Page 61 in the Office of the Clerkof Circuit Court, Wise County, Virginia on May 30, 2003 (herein "Board Order" ) tocomplete the record regarding elections. The Board Order pooled all interest inSubject Drilling Unit including those of the Respondents more particularly set forthand identified by the Designated Operator in the affidavits attached hereto and made apart hereof. The Board finds it has jurisdiction over the subject matter pursuant to theprovisions of the Virginia Gas and Oil Act, f 45.1-361.1et setI., Virginia Code, 1950as amended.

2. Findiruts: The Board finds that:

(a) The Board Order directed Equitable Production Company, (herein theDesignated Operator" ), to mail copies of the Board Order to all respondentswhose interest, if any, were pooled by said Board Order;

(b) The designated operator filed its affidavit of mailing dated June 9, 2003,disclosing that it had mailed a correct copy of the Board's Order to allRespondents whose interest, if any, were pooled by said Board Order;

(c) The Board Order required each Respondent whose interest, if any, were pooledby the terms of said Board Order to make his or her election within thirty (30)days after the date of mailing or rmording, as applicable, of said Order; theDesignated Operator has filed its affidavit dated July 25, 2003 in accordancewith g 7.C of the Virginia Gas and Oil Board Regulations and 4 VAC 25-

(3pQ ) 49 AUG I'98

160.70C (herein "Affidavit of Election" ), wherein it has, for each Respondentwhose interest, if any, were pooled by said Board Order, stated: (i) whethereach Respondent has made or failed to make a timely election; (ii) the nature ofthe election made, if any; (iii) whether, by reason of a failure to elect or totimely elect one or more Respondents are deemed, under the terms of theBoard's Order, to have leased all their rights, title, interest, estates and claims inSubject Drilling Unit to the Designated Operator;

(d) The Board Order further required the Designated Operator, affer expiration ofthe election period, to file with the Board a statement of the interests subject toescrow under the terms and provisions of the Board Order, in light of theelections made or deemed to have been made (herein "Statement of Interests" );that the Designated ~r furnished said Statement of Interests as part of itsAffidavit ofElection. A copy of which is attached hereto as Exhibit B;

(e) Current Board standards requiring the escrow of funds and the Board'sagreement with its Escrow Agent, First Union National Bank, Corporate Trust,PA 1328, 123 Broad Street, Philadelphia, PA 19109-1199,(888) 396-0853,Attn: Rachel Rafferty, or any successor named by the Board, require the entryof a Supplemental Order establishing of record the elections made or deemed tohave been made and specifying the sums or percentage thereof subject toescrow. Current Board escrow~were made applicable to SubjectDrilling Unit by a Board Order dated December 23, 1992.

3. Order: By this Order, the Board orders the Designated Operator to tender, consistentwith and in accordance with the findings set forth at paragraph 2 above and theannexed Affidavits, any funds subject to escmw and instructs the Escrow Agent, FirstUnion National Bank, Corporate Trust, PA 1328, 123 Broad Street, Philadelphia, PA19109-1199,(888) 396-0853, Attn: Rachel Rafferty, or any successor named by theBoard to establish interest-bearing escrow account(s), IRS Tax Identification Number54-1629506, in accordance with the information set forth in said affidavits to receivesuch funds and account to the Board therefore.

4. Mailitur of Order and Filina of Affidavit: The Designated Operator under thecaptioned Order or its Attorney shall file an affidavit with the Secretary of the Boardwithin ten (10)days after the date of receipt of this Order stating that a true andconect copy of this Order was mailed to each person whose interest or claim issubject to escrow and whose address is known.

5. Conclusion: Therefore, the findings and all terms and provisions set forth above beand hereby are granted and IT IS SO ORDERED.

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

OOOI49 )lucia

DONE AND EXECUTED this 9I day of ~~,2003 by a majorityof the Virginia Gas and Oil Board. 0

Chairman, B~R. Watstider

DONE AND PERFORMED THIS /8 day ofLXs~~, 2003 by Orderof this Board.

B.%.WilsonPrincipal Executive to the StaffVirginia Gas and Oil Board

STATE OF VIRGINIA )COUNTY OF WISE )

Acknowledged on this~My of ~r, 2003, personally before me a notarypublic in and for the Commonwealth df Virginia, appeared Benny R. Wampler, being dulysworn did depose and say that he is Chairman of the Virginia Gas and Oil Board, that heexecuted the same and was authorized to do so.

My commission expires: 9-9/- 4d

Notary Public

STATE OF VIRGINIA )COUNTY OF WISE

Al 3&0& ll''day fdk6l~y,2003,00 Mlyb fnotary public in and for the Commonwealth of Virginia, appeared B.R. Wilson, being dulysworn did depose and say that he is Principal Executive to the Staff Virginia Gas and OilBoard, that he executed the same and was authorized to do so.

Diane J.DavisNotary Public

My commission expires: PJ~)aWI /

000 I 50 AUg ling

BEFORE THE VIRGINIA GAS AND OIL BOARD

IN RE: Application of Equitable Production Company, for Forced Pooling of Interests in UnitNumber V-502710 VGOB Docket No. VGOB-02/09/17-1075 in the Lipps Magisterial District ofWise County, Virginia.

AFFIDAVIT OF WILHOIT k. KAISER, Attorneys-at-Law, Agents for the Designated OperatorREGARDING ELECTIONS, ESCROW ACCOUNTS AND SUPPLEMENTAL ORDER

James E. Kaiser (herein Affiant), being first duly sworn on oath, deposes and says:

1. That the Affiant is an attorney in the law firm of WILHOIT 6t. KAISER, the Agent forthe Designated Operator, with offices located at 220 Broad Street, Kingsport,Tennessee 37660, and is authorized to give this Affidavit in its behalf;

2. That the Order entered on May 29, 2003, by the Virginia Gas and Oil Board regardingthe captioned coalbed methane Unit required the Applicant to mail a true and correctcopy of said Order to each person pooled by said Order;

3. That within seven (7) days of the receipt of an executed copy of the Order referred toat Paragraph 2. above, the Affiant was directed to cause a true and correct copy ofsaid Order to be mailed via the United States Postal Service to each Respondentnamed in the captioned Application, whose address was known, and to all persons, ifany, who are added as Respondents at the hearing held in the captioned matter;

4. That the Order of the Virginia Gas and Oil Board in the captioned matter requiredall persons pooled thereby to tender their written elections to the Unit Operator within

thirty (30) days of the date said Order was recorded in the county above named; thatsaid Order was recorded on May 30, 2003.

That the Designated Operator, by and through their agent, Wilhoit 8'c Kaiser,Attorneys-at-Law, have established procedures to review all mail received and allwritten documents received by means other than by mail to ascetain whether partieswhose interest have been pooled have made a written election, in a timely fashion, asrequired by the captioned Order; that said pmcedures were followed to identify theelections, if any, made with regard to Subject Unit; that the following personsdelivered, by mail or otherwise, written elections to the Unit Operator, within thethirty day election periods:

NONE

000 I 5 I Auo >98

6. That the interest and/or claims of the following persons (who made timely elections, orwho are deemed under the terms of the Board's Order to have leased, or who,subsequent to the pooling hearing held in the captioned matter, have leased orotherwise entered into an agreement with the Designated Operator) are subject toescrow under the Board's Order pooling the captioned Unit, Board Regulations and theCode of Virginia; that opposite the name of each person named as a Respondent listedbelow is set forth:

NONE

7. That after the pooling hearing held in the captioned matter, the following persons haveleased or entered into a voluntary agreement with the Designated Operator with

regard to their interest and/or claims.

NONE

That the following persons have not made a timely election and have failed to enterinto an agreement with the Designated Operator and their respective interests shall bedeemed to have leased pursuant to and in accordance with paragraph 10of the Order.

Tract Name Cash Consideration

4 Rose Collins 1.00x $5.00 = $5.00

000 I 52 ave ~qa

4aThat pursuant to the provision of4VAC 25-160.70C annexed hereto an 'erein is aproposed supplemental order to be entered to complete the record regarding e ~that saidannexed supplemental order sets forth that the services of the Escrow Agent are not required in

this matter pursuant to the terms of tl 45.1-361.21.D....,,...,.,u, ...,,J, 2003.

ffiant

Taken, subscribed and sworn to before me by James E. Kaiser, the Agent of EquitableProductipn Company, a corporation, on behalf of the corporation, this 4M day of

zoos.

My commission expires: 'l j w < I r ) 5( (

Pfllhicd~a Ab~Notary

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