V I R 0 I S I kci

IS SSc

marssma ~ ~IWIR Obs ~ OIL MR%)

of tbs stace Oss and oil Director' Decision sncsssd Dele}»r2'9(3 in tbe ease of Ratliff Oas ~, Inc.' liDDLLestiec Sora Wall Dsrsdt Ln Sesas4 to Rstliff No 1 OSW Wall ("Suhjeot Ws l,lh),RSDLLCniticn SO lee Deunit ~ 2567e I~~c'-~ in tha SurrLNCSLOCI irial Distriot of Duohanan ocunty, vir0iaia, vsOS D xS»tSo. 93 1221~1

suoc+oa nuao aud OLoooc Rfter two cost4~~~, this cause sard onfor final hscSNksw I Afaem (4» vLDgksia (h» scuf oL1 soard ("seacd ) at 9clw c(.n.oa -~10, 1%0), 0'= = Oshf——sass, c ~vissinia 6-N sduf sSLcm6-N Easter, RDLnS(b e, virsinia, Dursusdc co 0 60.1-361.36of the Dodo vis5 l4La,1990 ss:,W)ea the 9«CLCLon teal ~E ef ths Director's Dsdisla ffledOa: ', 1991 in behalf Of tbe 9SSDLtle~, Ratliff Oaa Cw ~, InC. (burainSatli )

0. 9. (Vosl NOLLLu of street, Street, Street, scott~nd u ''fer Sstlifft Narh k. Seerta of Say, Desto, Ohanay, Loc ~;andwise fer ~~~ rroduotion ~~ g Theses L Pruitt of Rebec tsongouLL, D

Druidic

sSSssssd fer tbe Wyactcsfarrisen Trust( an4 saadra s. IL09shssietat httsrney eusersl, cms Dassent to advise ths Soard.

3. ~~cotiouc Duueuant to seetieas 65.1-361.1ot- uu-. view}cciacode, 1950 aa: '=:, tbe Suard finds that Lt hae jucisdiothm ever ths OCatter.

rc~a On Ootoher 27c 1992m tha Du(rartant Of NLnuc NLnarn(I ~ 'ad

SnesSy, DLvisioa of Oae sad Oil (baucis "Dlh(S ) received frcm Rstli fN an~DDlication fsr a well sar«it for subject wall, tossthsr with a hoed ]n the~aust ef 512,100. objections te tho ODDLLoshion for tbe Doait for Subjocc wall~»re filed hy ~ ~ ~ ~Lsn, as a royalty owner or lesm i4 the~Lneral eshacs, as I hy Island w)s»h oosl ~:—-=-;—, as coal owner. 8» aswLL +Loufor'be well Dere«.t for Subject wall wao withdrawn hy Ratliff oa N

——— — 2$ ,1992.

b. On Nay 20, 1993, the Deyartsoat of Nines, NLnerals and S»}cSy,Divisioa of Was «uf Oil received a seecud) sS54ication fron Ratliff for Ic DellDoe«it for Duhjeo: Wall. ~"rreduotion Osayaay filed objections '.O tbeissuance of ths Ditunit fer Subject Well.

c. On October 14, 1993, Wyatt Ratliff, careen Dream aa4 RatliffOas ~, Inc, fils4 a Sill of OoSDlaint for Dularatory 3ud9ra t an4Injunctive Relief ia tbe OLrcuit Oourt of Suchanaa Oousty, VirSinia, Case 2 f2-93,to oht«in a dull ration sf 'Cbo riShts of tbe Sartiu ud to onjoin l5% ) frosuciuw oa Sstliff s ODDLLcation for a well D«salt for Subject Well. Oa Or(}cher26, 3903 at Cbe )ssrinS oa RSCLLff' action for injunctive relief, tbe CRmrt~~ injunctive relief snd feasd thdt rlsintiffs'ad failed to sahauec their«~~cvtsuhiv» r ~~ Ln that tho adsinistuative Dernittin0 uthm hofcrd tboVLISLuia DsSnr(mn lt of %Laude NLnera1s 6 Sner0y on Ratliff ' apgllicaticul forwell Dace«LC for ~ chjeet Well wae net fLnal.

4 subject to Chs condLCLOMI Set forth Ln a letter 4sto4 625, 1993, frcm ttui Director of MRS' Division of Das aad OL1 to Ratliff, tf2567 for Sos ud oil oyoratiou for tbs Ratliff Pl well wore issued to Ia61Lff

(hoecake caid asti«s ko hsiao referred te a tbs "Dkreeter ~ Deskekea }.TheDkreoter fscncw tho:~Nskl wss lccnated wkthks ths c ~ kos ef tbs cachccoodcnakbad ~ 45 5 pie14 established bcf tos foklowkao %sard orders psrecnuct toVa. Ceks %45.1 36] .SD (herein Plaid Sakes" }c

l. COCO 3-% Loaned Nap 1,5, 1%%0

2. VOCS %1-111~162 Loosed Nap 25, 1992

3. VOOS 93&21&4325 issued April 5, 1993

voos %~316M45 ksonod ootoher 13, 1993

Ths D(easter' Deeiskon roc%aired, ssoso other thknos, that sictkkffsoho spylkeatkoa Iikohka 120 . to tbs Sasrd fer ths peelkso of tbs chDrill oakt o 1!i La «chkeh 2ost Nail was located yorsnast to va. Dcd(«5565.1«361.21 sad 65.3-3$3.22 ar tbst Datliff nyykp for the oreatkcnc acd'hepooliep of an «w '-,~Lets drkkl sakh(s} to be ~bp Ooh2sst Nail ycseeaatto va. cede y5 45.;,-351.25, 45.1- .55 sa4 65.1-351.52,ss soyk eQA.ths Dkseetor's oscdsken reoskred that,ao eaakhod ~ oai bs pedccoec I SeemOccb)eat Nell cn«tk.', sech thea that seasd rendered a deeisioa ea sat'.Lgf'sspykkoetkea fer t(c ~ yoekkno of~wait O 1% or the oreatkon an4 pool..n(} ofa yreyor drkkkknO salt( ~}.

~. Oa ~ 6, 19%3 lkff fkkod a Petition for %Speal od theDirestor 's Dasksks ic psrssant to va. 54$.1-361.23 in whioh sat i(%i racy cs}ctodtbs follewkaO rek(ofs

5 etccf ef c (a} the t oosdLtioa roeokr Natl;I.fg tofile with tha osarcl within LSD an kea for ths ore on or 5«ejkn5of a drklkknO sake to bo hp 2cbct Nell snd (h} tho lkaktatkcw hstSitlkff not pccochwis Oso fern ths sell satkk deskekea bf the Sear4 oeacnirhkn5satkkff' Lese.ken to ornate snd(ier y(cel a drillkno oeit to bo oer«ed bpRdr}ost Nell.

2. That ths %sard offkra tho orsntino of the porcclt 1«ct'otaside the restriot iona ~ ia tho perekt.

f. 5t the hesriso before cdco Reel of Datliff' asssal cf thoDkreotor' Oeeiako«, Datkkff ~ that Lt had resohod a tentative a%ace(«ontwith eeoasol Dcr Oc ebsasn ~koa ~~ snd eeuasel far landon S. Neat<:, Jr.~sd Nsykss D. Sari<eon, Jr. Ossa%ass,for the shkkdren of Landon 5. 55««et, andsaykss D Nssrksea snd satkkf f stkysketcci4 wkthsot cdr}notion froa said poc tkos,aad eehjeet to thc syyrovak of ths senr4, that«

l. Detkkff weald filo with ths ssar4 a oeayketed syskkc stionfor the osestken ocd/or yes%Lao ef a drkkkkso salt ts be served bg, ((skkin oasykkacbsc wkth Obe reookroeeaoo of va. coos 5 4$ .1-361.13et~i proc Lied,h——,that the 1 lear4 Drest to Satliff an ac%snakes to ties sntlk Pobrwsc V 15,19%5 to do so.

2. Pandkao satliff' filin5 with the Sosrd of a ocs54(«tedayplicatiea for the creation ssd/or yeokkso ef a prayer drkklkc«O salt(o} te bo~arvad hg eslsjeca Nskl wkthks the eslhsda4 tkse established bp tho sea«4'for4ninO es, thai tt Satkkff Set he r45nkead ts disc«cosset the Osalhe4 a«shoneOas «awk'o b(s ysaeeasl free Oob~ Nell bst he allow«C( tooooaknss sakd eervkos Ln cnssykkssss w c(DDeevak obsakasd bf Nr. Dstkkf> fran

les . 'a . «c. ~litt waeel t ~1 I ly lahall ~astor en obs Nokk cad to «oak(car tho 'of oos heLlap prcxhcoed bp Oob2ool'i Doll~nd «coed bp Nr. Sstkkff for his ysr oas.

5 ~ ~~ ~ ~~a~ ILAW ~ lais ~~ me featk la ranee~ ~.t. e hy

— el ~ I el lla ~ «4 OI1 alelalar'el~ t~LN Ortl ~ $4 1&1 I leSIIIe Iles m ~a~ m thSosjait 00009 Wetliff eeet file «5th 5ha Nses4 ea sr hsfere S~eeev 15, 1 5 a~~~ fer either il) ths o. 1~~ ef tbs ~ ( 04 5oes Salt w l% ia esess450ss eith tiiis ~ ~~ Nsthaaa oas 3 14 IosOsr 4WQ ~ 4I hs4 Nsy 10< 1090 as . hy llsM 9~&4825 aa4 % 93-03~» es4/er with ths o ~~~ 4is 02aL4 II Or4es V000 91 111 152

20, 1'02, as .... by 445 0~2&4335/93~1~349 ss4 h I 'VOOO

93 OS~g VS OSOS 50 45 ~ 1 35lo21 ae4 55ylML 22 Or (2) tbs Srsetieh OfOaf~~-~ w~lo) te he ~ hy ~ --2 Nell sacr Lf:::~is the

pro 9, = Ls::=~«Lfk Va. 50 Qol-353.20 55.1-351.21aslll 45.54s4 hetlkff ha4 Lsohalle4 a eater oa Oe)v)est Nell eh) is~ r '-~ t))s hala0 ~~ hy ssL4 sall, aa4 penL4e4

Sshbiff 0L5eh Lhs = ~ Le0eith ths Nses4 fos ths 0solieOof ~~obit 0 20 oe ths e Scabies 0eelio0 ef ar) ~Late eait( ~) to ho ase H0) by~sh24et Nell ea e; ~~ $4)beaoy 15m 1005+ hatliff eey oeetisee Lts e~assfes ef~~Oss 'feoh sehjreo wall te wyatt hatliff solely few hLs

State ~jsisa~iee Qseeieeiea

$000 4%I ~swan this .CRl 4ay of ~WW ~ g 1995'y OscardP

of thLs Oess4.

ehsisNsa~ R. NSN)Lier

~afosity ef tho Vk blois Oos as4 Oil Obese1994,

UPi&o~oll~5000 OF ~201k )0000%y OF ~ )

helaeear~~ aa this M . 4ay ef N~ ~ 1994'ersro Qlybefore ~ a sshhry 5lAkis ie a45 for tbo ~ = ~th of viroiaiag a00ease4 I soayNseFLer, hale» 4eLy seers 414:«a4 eey ho is Chaireaa of tbs VLrf Labiaoas aa4 oil Wses4, chat hs esesste4 tbw ~ 4s4 was aetbsrise4 to Oo so.

Ny Caesissioa Rspie os 7/$ 1/95

Nasbs 0 tNotary yehlio

ORRIS'F ~JI lOSNFt OF ~ mm )~~a oa tbio Sj= 4ay od WW>~ 1994iysreoaoDy ~~ m ~ aetary ysb1lo in aed dor tho <=::==:>tbof vhoLokaayyoared oyuoa 9. yuleea, duly coors 414 ~ aad m tbat Q ioPrLaeiysl ~» to tbs Otstt ot tbs VlrO1sla Oae asd 011 %sard, tbat bo~eeoutu4 tbs ~ aad oao autbortood to do oo.

lly Caeskoalsa Soy Lroe s 9I30/99

Rotary Public