VIRGINIA;

BEFORE THE VIR

DOCKET NO: 944

NIA GAS AND OIL BOARD

17~7

REPORT OF THE BOARD

NtyfICE OF EXP TION/fERBHNATION OF VIRGINIA GAS AND OIL BOARD (herela"Board")ORDERS IN VGOB DOCKET NO. 9641517~7FOR THE POOLING OF INTERIISTSIN A DRILLING UI IIT TO BESERVED BY PROPOSED Yt/ELL VC-3174 LOCATED IN THENORA COALBRD 1 JAS HELD, TRACf PO-14S/THIS, DUTY QUADRANGLE, ERVINTONMAGISTERIAL DS iTRICT, DICKENSON COUNTY VHbGINIA (Sm "Stshjert Lewis" nre morepartkularly deserSn d on Exhibit 'A', attached berets nnd wade a part hereof.

1. This Nettm efExp)rattan/fermbsslea is entered by the Band s8er bearing upon its own motian for 0»purpose ofprovtdiag notkc that 0» Bond ardcrs in the aboveatykd docket number which are mme~sct fonb and dcscril ed in Pmaysph 2 hmcof capked aad bccamc~by their owa teens oa Jm» 2, 1995cxacln for eay cash sums becoming psychic ~.

2. ~ The BoagSade tbst:

(a) in VOOB No. 94451741447, tbc Board catered a paoliag order pmsusat to Va. Code 4$.1-361.21au 1 45.1-36122on June 2, 1994 far tbe pooliug ofa 58.77~coslbed methane gas drillinguah to be»rved by proposal well No. VC-3174 (herein "Poolkg Order" ). Tbc Pooling Onkr wssmcarded t rkh tbe Ckrk of tbe Cknut Cmat of Dktusuxm County, Virginia in Deed Book 301 st Page144 on Jm e 16, 1994. Pamyaph 14 of0» Poogag Order pmvtdad that Scpdtabk esourccsExpkrcda s nlk/s Equiutbk Resaumm Enmgy Camposy (bcnrin "Unit~wes to summed»operations for the drgling of tbe well in thc pooled driRng unit within 365 days Som the date af theentry of th r Pooling Order, i.e., by June 2, 1995. Tbe Pooling Order Sutbcr pmvided that if UnitOpcnmu d id not cammence apnauws tbr the drilgng of said well widdn 36$ days flem 0» nmy of thePoalhg Ot dcr, then the Pooling Order would crmbutsa except for aay cash sums bn»miag payable

(b) In VOOB i Jacket No. 960517~7,an Oatober 26, 1994 tbe Bond nmsed its Supplemental OrderReyngag Elections for tbe pookd Drilling Unit ta be served by pmpm»d Wdl VC-3174 (bereia"Supplnnc sml OrdeP) wbkh Supplemnusl Onkr wss recmded on November 10, 1994wkb the Clerkof tbe Cka dt Court ofDickoem County at Deed Bask 305 at Page 100.

(c) Tbe Uait C i»retax did not commence ~for tbe dtilgng of tbe well which was co snvc tbcpooled dril ing unit witkin 365 days gum tbs nmy of tbe Pooling Order, tbnefme aa )use 2, 1995 tbcPooling Or ler sad thc Supplemenml Order~by their own terms

3. IIttBf. By this Onln which is to be n»ceded wkh tbc Clnk of thc Cin»it Court ofDidtcnnm Cotmty, Virginia,tbc Band gives nona I tbm the paolkg Older and tbc Sup pkascmal Older cspeed end termhmW by their awaterms on June 2, 199'. except for aay cssb sums becoming psyalHe tbmesndm. Natudthstaading dm Sxx dmt tbePooling Onkr aad th i Suppkmcntal Order bcretatbm exphsd wd~ on June 2, 1995,any fundsbnmohre paid by du Unit Opccusm km 0» cecnnr seonmt cn»ted by tbe Pooling Onkr and/ar theS~Onkr s mll be beld by 0» Esnuw Aysn tbr 0» exciusim use og and sok bcuetk of tbe porsonscatkkd tbneto until s tch ttmds csa be pakl m such person(s) or undl tbe Escnnr Agent~such Smdsas rcquhnl by kw ar nasuant to Order of tbe Band in~with Vs. Code 45.1-361.21.D.

4. &au»a ef chide. T» Unit Opnaua uader tbe cepuaacd onkr or its Attorney shall fde as sttidavk wkh tboSecnmry ot'bb Bocni widdn tm (10)days agm tbe dme ofmcdpt ofdds Onkr stating that a true end conectcopy of this Order wn mstkd widdn ssvm (7) days Sum 0» dam of rc»eipt af this Onkr co cack passu whosehanna or akim was 1 sokd by tbe Pooliag Order sad whose intmns ar akim wss sublect to escrow whosesddnus is buona.

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COMPLY F rffofrfo ~tw Erral rryy6orr WELL NAME ANO NUMSEJt Id." J174TTtlCT NO. In0- 146 I 7 "1J ELEtfATTON 1654.51 OUAO~ O~

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+ Oenotes the locathn ot a weN on United States topographic Maps, scale I to24;000, latitude and lonytu e lines being represented by border lines as shown.

WWr~SSTHE OP riCE OFTHE CIEIE(OFTHE CSICUIT COUNT OF DICKENSON COUNTY, hQ ~,f997.This deed wee Ibis day

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