e

11000080?

!INSmuMENi PREPARED BYVIRGINIA GAS AND OIL BOARD

VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

SUPPLEMENTAL ORDER REGARDING DOCKET NO. VGOB 07/

ELECTIONS, UNIT: AE-187 (F-100)

(Iuueins8er "Subject Drilling Unit" )

REPORT OF BOARD

FINDINGS AND ORDER

l. 'Ms Supplemenud Order is entered by the Board sua snonte in the form autlwrized bythe Board at its hearing heM at 9:00a.m. on October 20, 1992, Board of SupeivisorsRoom, Courthtuse, Grundy, Virginia, and pursuant to uthority granted to the Board'sChairman at the bearing of the Virginia Gas snd Oil Board on June 16, 1992, at 9:00ILm. at the Rlmlodendron Resbmrant at the Breaks~Park, Bxeaht, Virghiia;and this Supplemental Order is being recorded for the purpose of (1)complying withthe requhenient of the Virginia Gas and Oil Board Regulabons, 4 VAC 25-160.70C bysupplementing the Order preiously issued by the Board for subject Docket onDecember 5, 2007, and~with Instriment ¹ 070004650 at the OIBCe of theClerk ofCircuit Court, Buchanan County, Virginia on December 21, 2007, (herein"Board OshP) to complete the record regsrrbng elections. The Board Order pooledall interest in Subject Drilling Unit including those of the Respondents moreparticularly set forth and identi5ed by tbe Designated Operator in the ailidavitsattached hereto and made a part hereof. The Board Suds it has jurisdiction over thesubject matter ~t to the provisions of the Virginia Gas snd Oil Act, $ 45.1-361.1e~t., Virginia Code, 1950 as amended.

2. Findhias: The Board finds that:

(a) The Board Order directed Appalachian Energy Inc., (herein the DesignatedOperator" ), to mail copies of the Board Order to all respondents whose interest,if any, were pooled by said Board Order;

(b) The designated operator filed its sf5davit of mailing dated January 9, 2008,disclosing that it had mailed.a correct copy of the Board's Order to allRespondents whose interest, if any, wtue 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 afier the date of msiTmg or recording, as applicable, of said Order, theDesignated Operator has filed its affidavit dated February 21, 2011, inaccordance with $ 7.C of the Virginia Gas and Oil Board Regulations and 4VAC 25-160.70C (herein "Affidavit ofElection" ), wherein it has, for eachResptmdent whose interest, if any, were pooled by said Board Order, stated: (i)whet'ach Respondent has made or failed to make a timely election; (ii) thenature of the election made, if any; (iii) whether, by reason of a failure to elector to timely 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) 'Ae Board Order further required the Designated Opeiamr, after expiration ofthe election period, to file with the Board a statement of the interests subject toescmw under the terms snd pmvisions of the Board Order, in light of theelections made or deemed to have been made (herein "Statement of Interests" );that the Designated Operator urnished said Statement of Interests as part of itsAffidavit of Election. A copy ofwhich is attached hereto as Exhibit B;

(e) Current Board~requiring the escrow of funds and the Bossd'sagreement with its Escrow Agent, First Bank dt Trust Company, P.O. Box 3860,Kingslert, TN, 37660 (423) 245-6971, Attn: Debbie Davis, or sny~named by the Board, require the entry ofa Supplemental Order establishing ofrecord the elections made or deemed to have been made and specifying thesums or pertentage thereof subject to escrow. Current Board escrow standardswere made applicable to Subject Drilhng Unit by a Board Order datedDecember 23, 1992.

3. @@K:By this Order, the Bos'rd orders the Designated Operator to tender, consistentand in accordance with the findings set forth at ~h 2 above aad tbe

annexed Affidavits, any funds subject to escmw and~the Escrow Agent, FirstBank 8t Trust Company, P.O. Box 3860, Kingsport, TN, 37660 (423) 245%971, Attn:Debbie Davis, or any suceesmr named by the Board to establish interest-besrmgescrow account(s), IRS Tax Identificatio Number 54-1629506, in accordance withthe mformatlon set forth in said affidavits to receive such fbnds snd account to theBoard therefore.

4. Mailinu of Order and Filius of Affldavit: The Designated Operator under thecsptioned Order or its Attorney shall file an affldavit with the ecretsry of the Boardwithin ten (10)days afier the date of receipt of this Order suiting that a true sndconect copy of this Order was mailed to each person whose interest or claim issubject to escrow snd whose address is known.

5. Conclusion: Therefore, the findings snd 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.

DONE AND EXECUTED this /4 day of )Cv~, 2011 by a majority

rof the Virginia Gas and Oil Board.

DONE AND PERFORMED THIS / 4 day of /fla r.A, 2011 by Orderof this Board.

David AsburyPrincipal Executive to tbe SVirginia Gas and Oil Board

STATE OF VIRGINIA )

COUNTY OF RUSSELL )

Acknowledged on this /lm day of , 2011,personally before me a notary public in and for the Commonwealth ofVirginia, appeared Bradley C. Lambert, being duly sworn did depose andsay that he is Chairman of the Virginia Gas and Oil Board, and DavidAsbury, being duly sworn did depose and say that he is PrincipalExecutive to the Staff of the Virginia Gas and Oil Board, that theyexecuted the same and was authorized to do so.

ia~(7 >riDiane Davis, )Notary174394

My commission expires: September 30, 2013

BKFORE ISB'ZRGEVX4 GAS AND OIL BOARDIN RE: Application of Appalachian Energy, Inc., for Fumed Pooling of~in Unit NumberAE-187 (F-100) VGOB Docket No. VGOB47/IIV16-2056 in the North Grundy MagisterialDistrict of Buchanan Comity, Virginia.

AFFIDAVlT OF WILHOIT dt 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 ofWILHOIT dk KAISER, the Agent forthe Desigtiated Operator, with offices located at 220 Bmad Stieet, Kingsport,Tennessee 37660, and is authorized to give this Affidavit in its behalf;

2. That the Order entered on December 5, 2007, by the Virginia Gas and Oil Boardregarding the captioned Conventional Unit requhed the Applicant to mail a true andcorrect copy of said Order to each person pooled by said Order;

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 Respotidents 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 withinthirty (30) days of the date said Chder was recorded in the county above named; thatsaid Order was recon'n December 21, 2007.

That the Designated Operator, by and thmugh their agent, Wilhoit dk Kaiser,Attorneys-at-Law, have established procedures to review all mail received and allwritien documettts received by means other than by mail to scertain whether pargeswhose interest have been pooled have made a written election, in a timely fashion, asrequired by the captioned Order; that said procedures were followed to identify theelections, if any, made with regard to Subject Unit; that the following personsdelivered, by mail or othervrise, written elections to the Unit Operator, within thethhty day election periods:

Maedilh Ellis J~542 Bauer Mdl RdMayvne, TN 37SO3

Carried interest

I Richsd K. Pobst37SO Lindett RdLss vegss, Nv 89103

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,subsegment to the pooling heating held in the captioned matter, have leased orotherwise entered into an atpeenMnt with the Desltptated Operator) ase subject toescrow as either unhewn c~or conflicting chmnents under the Bbard's Orderpoolhtg the captioned Unit, Beard Regulations and the Code of Virginia; that oppositethe name of each person named as a Resiwndent listed below is set forth:

See Exhibit E

7. That a8er the pooling hearing held in the captioned matter, the following persons haveleased or entered into a vohmtary agreement with the Designated Operator withregard to their interest andlor claims.

That the followmg persons have not made a timely election and have failed to enterinto an agreetnent with the Designated Operator snd their respective interest shall bedeemed to have leased pursuant to and in scan4mce with paragraph 10ofthe Order.

That pursuant to the provision of 4VAC 25-160.70C annexed hereto and incorporated hereinis a pmpose supplemental order to be entered to complete the record reyuding elections; thatsaid annexed supplemental order sets forth that the services of the Escrow Agent are requiredin this matter pursuant to the turns of g 45.1-361.21.D.

Dated at Kingsport, Tennessee, this 21st day

State of Tennessee )County of Sullivan )

an Energy2011.

Taken, subscribed and sworn to before me by James E. Kaiser, the Agent of AppalachiInc., a corporation, on behalf of the corporation, this 21st day of Februarv.

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e

ena satnvs Inn v

Cammaam I INNN I~NNSS

1 ponnhy compcm NN or Heirs

nhlana 4~ 3.61$ z.zas

SSISSNIWH VSSN8852 CSaanaN ldmlChdonl. AL 88205

RL 2, Soa SSOAIhsthnd, AL 55544

SHSSIV Davis ShecyPCZ SNI 985Onsndy, VA 24814

LVNe INN Cehnlml

ZCSIGS WINt PeSmn emyTmewe$ , VA 24651

2.554 L574$$9

Aine aaaahan lchepp171ISNNV NalShh Dr

~HSSNISe, PA 15017

LSSH L57448

2564 1.574555

panW L 4 Anrm 4 CeOmmn

1$0SeSehmle CadeAIMan4, Sy 41101

7.8% 4.724557

Frmnas Frmy

584$ Aohens lanelt. INNen Cat 97051

7.594 4.724467

5. Chador 4 UISan C ImtNI

110Wlvhm QreetGrundy, VA 24614

leased 13874 14.174

untasted 7.694 4.714567

nancy CaSerlna sottornw111PostaSe 3t

lervNle, SA IJO20

unleased 3390 2362333

John w. Pokst, Jr. 0 Lynds PaintPO Sw ssSware. PA 10953

3.05ys 136RM3

VtrghW 8 Phwp Unnhk

4324 SMh Sog Or

Varuna)a, WA WM7

IAWI 2.362333

1 swas~yswr/a gtsuwt ~ ctoaphaS Ness

PO Sw 1050

us)weed 27.50% 10.75

3 CsW SaowSs 3, sru 191Grundy, VA 1M14

unhuwd RAM00000 1.125

0short Nwa looneyM. 3, Sca MR

Grwdy. VA 14624

leased 2$500080tt 1.125

'Panther ewlepnwn )csM lessee)1700 tw lNglwcy

Srlshd, VA Re202

4 Sarlw» Oakhy440 AJSascw Ava

Srhcal. VA 24202

tossed 0.5566$67tt 0,3\

sahw 3 NoSP 0su awe os)dayOMN 4I 0shot w. NeNy, JA)

440ArSnghMAve

Srlslul, VA Ã202

0.27W3MG 0.17

Ann Wood NeNy

r/o Sarhora Oakley

440 ArSnsren Avs

Srlool, VA M210

GW27770tt 0.056667

Sttshadr tt whtnnen

4/o Nsrtwo Os)day

~40 ANnglon SwSrwol, VA 14210

00M915WS OsltSSM

Jsrnw M. JtaNy

chr Sar)we Oaldey

440 Arttngtw Ave

Srlslol, VA M210

Sdldr 5, Odort/o Sarlwa Oskhy

440 Aenghe Aue

Srhlol, VA»310

CeaSaa 5, Seeyre«t/o 0«k«a Oboe4N AISrhtw Ara

Srhel, YA 34330

OSQ31$»H 0.014157

Leery lbett Nelly

c/o Oarkee Oakley

4N rlkrSlon AeSrhhd, VA SNlO

0.0331»4h orh4157

Mln«o boos Hunt

c/a Oarkee Oalday

~40 ArSrlyon eeSrlsbd, VA 3»lO

amatas«S OO»LN

WIN«sr C Mlyr/e Salina Oak«74N ArSrobe eeSrhtal, VA lallo

l4«ed 0,17$333$H IL17

02753»SH 0.17

5POO«rer SSN kesedGnedy, VA»514

4.3lh 1.05

Total AO leasedTeel ASI Unlaced

ON NTA7$ TOTAL

SAN 313$4$.5lh lSAS

LNH 4114

ACREAGE

IN UNIT

IEML $8PAIR cmrly

CDLMMN / MCWE / 90%7NN%

W.w. Coleman Helm

1 LydhrlmmCNsman

202580 WINe PaScen Wey

Nsm Mmhca, MD 21774TmamW, VA %651

1.7I% 1.65777$

ANce Madeen Edmpp27S Mchmy IMEhl ~ Dr

I rhNscNe, 84 15017

2.71% L657770

Amy Nhshmh RWly

019INIHsl Chafe

Wmrlonh PA 25%0

1.7I% LM777$

Dan&I L & AN% 0.Cmaman

1%Sar&&san GemAshlamL Ey 41101

Fracas FMoy

340%Rohsrl ~ Lane

N. I&ham 00 SNNL

rearm! ILU% 4.573383

s.Charles & I%an C Roddt110ymndsm NmatGrandy, VA PISM

2419m 1492

ILN% 4973383

3700Umh& Rd

lm VaSI& NV 0$10S

mrlmmd AIR% TA06%7

Nsam rmhsrhm ~111Pens% NCarlmvSN, GA 30120

4.05N 240$867

John w. poba, lr. 0 lynaa paler unbasedPO Snr Wr

Sewre, PA 10955

4A8% 2400607

Vhghm 0PhNp lhmhk

4314Soum OW Or

Veradaa, WA 9%87

4.05% 2A86667

~ews cans aanawnsaa/o smear ~ Can)dug Hoss

POOW SMI

17.50% 10.75

3 fowl KwwKLS,WaistGrundy, VA 146M

unfeared LSSM000% 1.125

sober Cent leoneyna 3, Wa 101Grands VA 24014

SA800000% L125

*Panier ~ alosmaa ttSM lessee)1700tw JKMnuny

Srhml, VA M202

Sarhmo Onhtay

440 Amn8en AwSrta8, vA M201

a5560067% O.sa

Sabre 8 ltssy 0 Sabam Ontdw based008 ol Mea w. Itssy, Jh)~40 Arsnghm Are

Oncet, VA 24101

tkl7N333% 0.17

Ann Weal lteSy

4/o Salwo Ostdw440 Arwssan Aue

Srlslel, VA 24220

OA81777$ % OA88087

Wmbmh K, WMbrran

r/o Oabam Oaldey

440 Amnghm Aue

Srlslsl, VA M220

0.080250% OAOSSN

James M. Kelly

a/o Oabsm On)day

440 Arwgha Asesrlssal, YA lallo

lamer OJ800250% OA8$ $09

Bhb IL Sabasyo shlhra Oaldey

440 ALSngsrb twSrblol, VA 24220

Candbh 6.kaayaml

tyo obbara on%ay46I AAngtnn Aue

Srlhal, VA 1I210

OC!32944% 0.014167

lenny Quot Segynl'e Surbase Oaths440 Argnglrh Aue

Srbbd, VA 24220

leased O.CI31944% 0.014167

63nnh I%Sir Hunt

c/o Sobara Oakley

440 ALSnglen Aro

Older, VA 24210

kneed 60251944% OSI14167

SOgnn C gagy

nh Sertera Oaldey

440 Argagbrn Aye

Srbad, VA %210

leased 06232544% 0.014167

Qrsrbe I.Iohy~lbddge

Srlhol, TH 57620

IL27$5335% IL17

02765553% 0.17

5 Ill%aha%~ye sooynoannramua500rnyrar 2CO leasedgrundy, VA 3tgte

To%I AO Lhaed 53.67% 32.99To%I AB Unbased 46.33% 2645

Exhibit B-3Unit F-100

(AE-187)Revised 02/2 1/2011

LEASESTATUS

Gas Estate Onlv

INTEREST GROSSWITHIN ACREAGEUNIT IN UNIT

1 Dorothy Compton and or Heirs unleasedunknown / unloeateable

3.643 2.238

Wiiam E. Davis

3930 Deborah Lane

Anchorage, Alaska 99504

Watie Davis

4547 County Rd tt25Heflin, AL 36264

Barbara Davis yagle3642 Gunnels Lane

Oxford, AL 36203

Douglas Wayne Davis

1004 Edgewood Drive

Clarksvllle, TN 37040

Glenn Allen Davis

Rt. 2, Sox 560-Attartford, AL 36344

Shelby Davis StacyPO Sox 966Grundy, VA 24614

W.W. Cokman Heirs

Lydia Jane Coleman10216-BWhite Pegcan WayNew Market, MD 21774

unleased 2.56% 1.574889

Nancy Catherke Pobst-Hooper unleased111Postage StCartervige, GA 30120

3.85% 2.362333

Exhibit B-3Unit F-100

(AE-187)

LEASESTATUS

INTEREST GROSSWITHIN ACREAGEUNIT IN UNIT

1 John W, Pobst, Jr. R Lynda Pobst unleasedPO Box 86Revere, PA 18953

Virginia R Phillip Linnick4324 South Bag DrVenuhde, WA 99037

2 EAGLE COAL CORPORATION unleasedcJo Stewart R Campbell HessPO Box 1060Hundngton, West Virginia 25727

3.85%

3.85%

17.50%

2.362333

2.362333

10.75

3 Quoi KeeneRt. 3, Bm 191Grundy, VA 24614

unleased '.8300000% 1.125

GAS ESTATE TOTAL Total Unleased 37.08% 22.773

Coal Estate Onlv

1 Lydia Jane Coleman10216-BWhite Pelican WayNew Market, MD 21774

unleased 2.70'/o 1.657778

Nancy Catherine Pobst-Hooper unleased111Postelle St

artervige, GA 30120

John W. Pobst Heirs

4 P5% 2.486667

John W. Pobst, Jr. R Lynda Pobst unieasedPO Bm 86Revere, PA 18953

Virginia Jk Phigip Linnick unleated4324 South BaB DrVeradale, WA 99037

4 P5%

4 P5%

2.486667

2.486667

Exhibit IWUnit F-100

(AE-187)

LEASESTATUS

INTERESTWITHINUNIT

GROSSACREAGEIN UNIT

2 nnorz coAt. cottpottnrtoN unleasedo'o Stewart dt Campbell HessPO Box 1060Huntington, West Virginia 25727

17.5(P/o 10.75

3 Carol KeeneRt. 3, Box 191Gnmdy, VA 24614

unissued L8300000'/o 1.125

COAL ESTATE TOTAL Total AEI Urtleased 34 18% 20.99

Exhibit EF-100(AE-187)

(Revised 02/21/2011)

LEASESTATUS

fgnn'glntnan

I Domthy Compton and or Heirs unleasedunknown / unloeateable

3.643 2.238

William E.Davis3930 Deborah LaneAnchorage, Alaska 99504

Watie Davis4547 County Rd tr25Heflin, AL 36264

Barbara Davis Yagle3642 Gunnels LtmeOxford, AL 36203

Douglas Wayne Davis1004 Edgewood DriveClsrksviile, TN 37040

Glenn Allen DavisRt. 2, Box 560-AHartku4 AL 36344

Shelby Davis StacyPO Box 966Grundy, VA 24614

TOTAL GAS ESTATE 2.238

Coali I'aliis

Lydia Jane Coleman10216-BWhite Pelican WayNew ~MD 21774Tazewell, VA 24651

0.14% 0.083

Alice Maclem Schepp273 Hickory Heights DrBridgeville, PA 15017

Amy Elizabeth Reilly819Higcrest CircleWexford, PA 15090

leased P 14% 0.083

leased P 14% 0.083

Exhibit EF-100(AE-187)

Daniel L. dt Annie G. Coleman200 Bellefonte CircleAshhmd, KY 41101

Frances Foley34958 Roberts LaneSt. Helens. OR 97051

leased

0.41%

P 41%

0.249

0.249

Exhibit EF-100(AE-187)

INTERESTWITHINUNff

Daniel L. tk Annie G. Coleman200 Beltefonte CircleAshland, KY 41101

leased 0.41% 0.249

Frances Foley34958 Roberts LaneSt. Helens, OR 97051

0 41% 0.249

S. Charles dt Lillian C. Ratliif110Fairview StreetGrundy, VA 24614

Meredith Ellis Jennings542 Butler Mill RdMaryville, TN 37803

Richard K. Pobst3760 Lindetl RdLas Vegas, NV $9103

1 22% 0.746

unleased 0.41% 0.249

unleased 0.20o/o 0.124

Nancy Catherme Pobst-Hooper111Postelle StCarterville, GA 30120

0.20%o 0.124

John W. Pobst, Jr. dtLynda PobstPO Box $6Reve»e, PA 18953

unleased 0.20o/o 0.124

Virginia dt Phillip Linnick4324 South BaU DrVeradale, WA 99037

TOTAL COAL ESTATE

0.20o/o 0.124

INBTRUIIENT III II3I300802RECOROEO IN THE CLERK'B OFFICE OF

BUCHANAN COUNTY ONAPRIL t»» 20II AT l31,:50PN

BEVERLY B. TILLER» CLERKRECOROEO BY'. B(sB