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VIRGINIA: BEFORE THE VIRGINIA GAS AND OIL BOARD SUPPLEMENTAL ORDER REGARDING DOCKET NUMBER VGOB 054118-1388 ELECTIONS: UNIT BF-114 (herein "Subject Drilling Unit" ) REPORT OF BOARD HNDINGS AND ORDER This Supplemental Order is entered by the Board sua 4poate in the form authorized by the Board at hearings held on February 15, 1994 and Junc 16, 1992; snd this Supplcmcntal Order is being recorded for thc purpose of supplementing the Order previously in the captioned matter on June 15, 2005 which was recorded at Deed Book 633, Page $$$ in the Office of the Clerk of the Circuit Court of Russell County, Virginia, on June 22, 2005, (herein "Board OrdeP) snd completing the record regarding clcctions. Findlnss: The Board finds that: The Board Order directed CNX GAS COMPANY LLC (herein "Designated Operator" ) to mail copies of the Board Order to all Respondents whose interests, if any, were pooled by the said Board Order, The Designated Operator Bled its aiffdavit of elections disclosing that it had mailed a uue and correct copy of the Board's Order to all Respondents whose interests, if any, were pooled by said Board Order; The Board Order required each Respondent whose interests, if any, were pooled by the terms of said Board Order to make an election within thirty (30) days atter the date of maffing or recording, as applicable, of said Order; the affidavit of elections filed herein and annexed hereto as Extribit A states: (i) whether each Respondent has made or failed to make a timely election; (B) the nature of any elecrion(s) made; and (lii) whether, by reason of a fsBure to elect or to timely elect one or more Respondents are deemed, under the terms of the Board's Order, to have leased all their rights, title, interests, estates and claims in Subject Drilling Unit to the Applicant; That the affidavit of elections annexed hereto with the Exhibits submitted therewith identifies the Respondent(s) malring a timely election, if any; identifies the Respondent(s), if any, who are deemed to have leased; idcntiffes the contBcting interests snd claims which require escrow; identifies the interests snd claims, if any, requiring escrow under Virginia Code section 45.1-361213K; and identiffes the Respondents, lf sny, who may bc dismissed by reason of having leased or entered into a voluntary agreement with the Applicant. The affidavit of elections indicates whether or not the escrow of funds is required with regard to Unit BF-114; W4erni By this Order, the Board orders that its prior pooling order entered herein be vacated for the reason that all owners and ciahnants to CBM in the Unit have agreed with the Applicant to develop same and that any and all funds escrowed with the Board's escrow agent be disbursed to the Board's Designated Operator to pay or suspend as the terms of the agreements by snd between the Applicant and the owners snd claimants may require snd allow.

VIRGINIA: BEFORE ORDER REGARDING DOCKET NUMBER … · SUPPLEMENTAL ORDER REGARDING DOCKET NUMBER VGOB 054118-1388 ELECTIONS: UNIT BF-114 (herein "Subject Drilling Unit") REPORT OF

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VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

SUPPLEMENTAL ORDER REGARDING DOCKET NUMBER

VGOB 054118-1388

ELECTIONS: UNIT BF-114(herein "Subject Drilling Unit" )

REPORT OF BOARD

HNDINGS AND ORDER

This Supplemental Order is entered by the Board sua 4poate in the form authorized by the Board at hearings

held on February 15, 1994 and Junc 16, 1992; snd this Supplcmcntal Order is being recorded for thc purpose of

supplementing the Order previously in the captioned matter on June 15, 2005 which was recorded at Deed Book

633, Page $$$ in the Office of the Clerk of the Circuit Court of Russell County, Virginia, on June 22, 2005,

(herein "Board OrdeP) snd completing the record regarding clcctions.

Findlnss: The Board finds that:

The Board Order directed CNX GAS COMPANY LLC (herein "Designated Operator" ) to mail copies of the

Board Order to all Respondents whose interests, if any, were pooled by the said Board Order,

The Designated Operator Bled its aiffdavit of elections disclosing that it had mailed a uue and correct copy ofthe Board's Order to all Respondents whose interests, if any, were pooled by said Board Order;

The Board Order required each Respondent whose interests, if any, were pooled by the terms of said Board

Order to make an election within thirty (30) days atter the date of maffing or recording, as applicable, of said

Order; the affidavit of elections filed herein and annexed hereto as Extribit A states: (i) whether each

Respondent has made or failed to make a timely election; (B) the nature of any elecrion(s) made; and (lii)

whether, by reason of a fsBure to elect or to timely elect one or more Respondents are deemed, under the terms

of the Board's Order, to have leased all their rights, title, interests, estates and claims in Subject Drilling Unit to

the Applicant;That the affidavit of elections annexed hereto with the Exhibits submitted therewith identifies the

Respondent(s) malring a timely election, if any; identifies the Respondent(s), if any, who are deemed to have

leased; idcntiffes the contBcting interests snd claims which require escrow; identifies the interests snd claims, ifany, requiring escrow under Virginia Code section 45.1-361213K;and identiffes the Respondents, lf sny, who

may bc dismissed by reason of having leased or entered into a voluntary agreement with the Applicant.

The affidavit of elections indicates whether or not the escrow of funds is required with regard to Unit BF-114;

W4erni By this Order, the Board orders that its prior pooling order entered herein be vacated for the reason

that all owners and ciahnants to CBM in the Unit have agreed with the Applicant to develop same and that any

and all funds escrowed with the Board's escrow agent be disbursed to the Board's Designated Operator to pay orsuspend as the terms of the agreements by snd between the Applicant and the owners snd claimants may require

snd allow.

MaiTina of Order and Filina of Affidavit: The Designated Operator under the captioned Order or shall file an

affidavit with the Secretary of the Board within ten (10) days after the date of receipt of this Order stating that a

true and conect copy of this Order was maffed to each Respondent whose interests or claims are subject to

escrow and whose address is lcaown within seven (7) days from the date of receipt of this Order.

Conclusion: Therefore, the findings snd ag tenne and provisions set forth above be and hereby are granted

and IT IS SO ORDERED.

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

DONE AND EXECUTED this ~day of /TM~, 2006, by a majority of the Virginia Gas

and Oil Board.

Chairman, Benny. WampidiSI'ATE OF VIRGINIACOUNTY OF

Achtowledged on this ~S day of Q~J, 2006, personally before me a notary public in

and for the Commonwealth of Virginia, appeared%enny R. Wampler, being duly sworn did depose and say that

he is Chairman of the Virginia Gas and OB Board, that he executed the same and was authorized to do so.

Notary

My commission expires: 9/BDk'P

nDONE AND PERFORMED THIS J9 day of /MrAh&~, 2006, by Order of thc Board.

/

f.R. Wilson,Director of the Division of Gas dt Oil Board and

Principal Executive to the Board

SI'ATE OF VIRGINIACOUNTY OF WASHINGTON

My commission expirest 0

PSDIC6'cknowledged

on this LP day of / MMMM, 2006, personally before me a notary public inand for the Commonwealth ofViightia, appeared%. R.Wilson, being duly sworn did depose and say that he isDirector of the Division of Gas dt Oil Board and Principal Executive to the Board, that he executed the same andwas authorized to do so.

xzr1ADiane J.Davg/ Notary

Ob01345

VIRGINlk IN THE OFFICE OF THE CLERK OF THE CIRCUIT COURT OF RUSSELL COUNTY, Ij 4W, 2000. TBs deed was this day

presented in saki ogce, and upon Ihe erliTrcate of admowledgmenl Ihereto annexed, admitted to record at~o'lock ~, alter payment of

0 tax Imposed by Sec.58.1402.TESTE:D9LLIE jdPOktplQN, CLg RK

Original returned Ibis date to: I ) I )ipL// S BY: ~stair JY rysr 8/ r/" fC D.GLERK

Exhibit A

BEFORE THE VIRGINIA GAS AND OIL BOARD

Application of CNX Gas Company LLC for Forced Pooling of Interests in CBM Unit BF-114VGOB 050118-1388 in the New Garden Magisterial District of Russeg County, Virginia

AFFIDAVIT OF CNX GAS COMPANY LLC (herein "Designated OperatoP) REGARDING ELECIIONS,ESCROW AND SUPPLEMENTAL ORDER

Leslie K. Arrington, being iirst duly sworn on oath, deposes and says:

That your affisnt is employed by CNX Gas Company LLC, as a Manager —Environmental / Permitting and isduly authorized to make this affldavit on behalf of CNX GAS COMPANY LLC, the designated operator,

That the Order entered on June 15, 2005, by the Virginia Gas and Oil Board (hereinafter "Board") regardingthe captloned CBM Unit requhed the Applicant to mail a true and correct copy of said Order to each person

pooled by the Order;

That within seven (7) days of receipt of an executed copy of the Order referred to at paragraph 2. above, youraiilant caused a true and correct copy of said Order to be maffed via the United States Postal Service to eachRespondent named in the csptioned Application, whose address was known, snd to all persons, if any, who were

added as Respondents at the hearing held in the captioned matter; that proof of such mailing has previously beentendered to the Division of Gas snd Oil, the Office of the Gas and Oil Inspector, at Ablngdon, Virginia;

That the Order of the Board in the captioned matter required all persons pooled thereby to tender theirwritten elections to the Unit Operator witldn thirty (30) days of the date the Order wss recorded in the countiesidentified above; that said Order was recorded on June 22, 2005;

That the designated operator CNX GAS COMPANY LLC has established procedures to review all mailreceived and all written documents received other than by mall to ascertain whether parties whose interests havebeen pooled have made a written election, in a timely fashion, as required by the captioned Order; that saidprocedures were followed to identify the elections, if any, made with regard to the Subject Unit; that thefollowing persons delivered, by mail or otherwise, written elections the Unit Operator, within the thirty dayelections period:

Fred B.Gent, II (Joint Operating Agreement)

That all of the Respondents identified in Exhibit B-3 hereto have entered into voluntary agreementswhereby they have leased and/or otherwise agreed with AppHcant to a plan to develop their interests and claimswithin the unit to CBM. Hence, said unit may be voluntarily pooled.

See attached Exhibit B-2 and B-3 (Unit is 100%under Lease and/or Agreement).

That in light of the Agreement(s) described above, it is no longer necessary for the Board to maintain an

escrow account/sub accounts pertaining to the above referenced CBM Unit, if applicable.

That pursuant to the provisiomr of VAC 25-160-70W10. and C. and VAC 25-16040 the annexed supplemental

order sets forth the interests and claims that require escrow of funds pursuant to Virginia Code sections 45.1-

36L213).and 45.1-36L22A 3. and 4.

Leslie K. Arrington

Taken, subscribed and sworn to before me by Leslie K. Arrington as a Manager —Environmental / Permitting

fot CNX Gas Company LLC, on behalf of the corporate Designated Operator, this ICAL% day of,2006.

My commission expires: l OISI I ~4%

PROPERTY LINES SHOWN WERE TIKEN FROM MAPS PROVOED

SY CNX LAND RESOURCES, Iaa. Ne WERE NOT SURVEYED,

numu d ~ Ii i''~""

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989.589.15//

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N 290,975.71'989,646.56 /

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58.74 ACRE UNIT

N 289.574.95 /I

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E 991,187.62

N 290.916.50E 991.245.04

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Q N 289,517 55

EXHIBIT A

MIDDLE RIDGE 1 FIELDUNIT BF-114

FORCE POOLINGVGOB-05-D118-1388

Cospany CNX Gas CORTDOTTY LLC We I 1 Noise olid Number UNiT 89'4147

Elevation Quadrangle a/taa IONRN.

County Russell

This plat is a new plat X : an updated p a t or a indi plat

taffi 5Form QGQ-GQ-1Rev. 9/91 Licensed Professional Engineer or/Licensed Land Survey~,; '=Err.a

.Xaaaa paaaaawa114pooLaaa 12taaaNM 10 aa 22 AN

HOCK 6 5 ii'Pbbs 9 „iO Il

CNX Gas Cotttpay u-Ot) Ok 4 0 ~ I'~ 'E 4 c~ 8 ~UNT 1F")14

Treat td(tS.74Aoe Un@)

1. Seat tte)adt7 Fartaera, u C.,

otal�

(400Aote Treat)- Fee

0414

CHK Corapaay LLC-C0,0aaaadCSN1Aaeadt0Lodtt)gaea Coal Ce. tae.-Ctad~ ~Fo&0Kaaaady 0eeiae)

02.17%

2. a ~~Coal Cotatwaty Tr. 17 gN2A0 Acse Wanter 012Treat) -FeeCo:=':":—.M~=—--Setear~ Coal LeaaodKaea 1aaaa Caal 4) ~~—Coal la 1Naraad Above Coal LeaeedC00t Sm Coataaat LLC-C0, Qaa aad CSN Leaeed410eeree 0.N%

Seat+ra Cod Gatepost'r. 10pN Aero Watdor0I2Ttaot) -FeeC: "::=~ Coat~~-Sateerr'oaILeaeod)0aea Coot C-~-Otal ta TNar aad Abaca Cool LoaeedCNK g~-.r.LLC-t)0, Qaaawf CSN LeaaedLOI IL00%

Exhlblt 8-2Unit SF-114

Docket I/GOB 984it 18-1388Ust of Rasgondents to be Dkrndssed

(58.74Acre Unll)

I/detest Irl ReasonUnh for Qsndssat

I. COAL FEE CWIMERSISP

(1) Gant Royalty Psrtnras, L.L.C.,at al.(400 Acre Tract)

(b) Fred 8. Gent, II, DVM18159 Lee HighwayAbkrgrkm, VA 24210-7951

II. OIL & G&S FEE OWNERSHIP

54.14 acres

3.01 acres1/1 8 of 54.14acres

5.1205% Sokl his coalinterest to

Gent Royaky Partners

Tract Sf.54.14scree

(1) Gant Royeky Partners, L.L.C.,et al.(400 Acre Tract)

(b) fred B.Gent, II, DVM18159 Lee HighwayAbingrkm, VA 24210-7981

54.14 acres

3.01 acres1/18 of54.14acres

5.1205% Joint Operadng

Agreement

Pree1 of 1

ExMMt B4Untt SF-110

Oockst Nt908 0041110-1$00Ust ol UMeased OwnerslCIahnants

(58.74 Acre Unit)

This unit ls 100% Leased endlcr has sn Apreernent ln phrce.

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