VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

SUPPLEMENTAL ORDER REGARDINGELECTIONS, UNIT SLW-11(herein "Subject Drilling Unit" )

Depicted on the PlatAttached Hereto as Exhibit A

DOCKET NO. VGO8-92/08/1 8-0248VGO8-93/08/1 7-0393

REPORT OF BOARD

FINDINGS AND ORDER

1. H carina Date snd Place: VGOB-93/OB/17-0393 carne on for hearing before the VirginiaGas and Oil Board (hereinafter "Board" ) at 9:00 a.m. on August 17, 1993, Dickenson ConferenceRoom, Southwest Virginia 4-H Center, Abingdon, Virginia upon application by Pocahontas GasPartnership (herein the "Designated Operator" ) for entry of this Supplemental Order in compliance therequirements of f 7.C of the Virginia Gas and Oil Board Regulations, VR 480-05-22.2 (herein"Supplemental Order" ) to supplement the Order previously issued by the Board for Docket VGOB92/06/17/0248 on October 1, 1992, and recorded at Deed Book 399, Page 697, in the Office of theClerk of Circuit Court, Buchanan County, Virginia, on October 8, 1992 (herein "Board Order" ), tocorrect certain acreages and percentages in Subject Drilling Unit and to complete the record regardingelections. The Board Order pooled all interests in Subject Drilling Unit including those of theRespondents more particularly set forth and identified by the Operator in the affidavit attached heretoand made a part hereof as Exhibit "8" (herein "Affidavit of Election" ).

2. Jurisdiction and Notice: The Board finds it has jurisdiction over the subject matter pursuantto the provisions of the Virginia Gas and Oil Act, 545.1-381.1 et seo.. Virginia Code, 1950 asamended. Based on the evidence presented. the Board finds that the Designated Operator has givennotice to all parties entitled by f 5 45.1-361.19and 45.1-361.22, Virginia Code, 1950 as amended,to notice of this application. The Board hss caused notice of this hearing to be published as requiredby 545.1-361.19.8,Virginia Code, 1950 as amended. Whereupon, the Board hereby finds that thenotices given hereby satisfy all statutory, requirements, Board rule requirements and the minimumstandards of state due process.

3. Aooearances: Elizabeth A. McClanahan, Penn, Stuart, Eskridge 6r Jones appeared for theDesignated Operator, Pocahontas Gas Partnership; and Sandra B. Riggs, Assistant Attorney Generalwas present to advise the Board.

4. Findinos: The Board finds that:

(a) The Board Order directed the Designated Operator to mail copies of the BoardOrder to all Respondents whose interests, if any, were pooled by said Board Order. The DesignatedOperator, as directed, mailed copies of the Board Order on October 23, 1992;

(b) The Designated Operator filed its affidavit of mailing dated November 10, 1992,disclosing that it had mailed a true and correct copy of the Board Order to all Respondents whoseinterests, if any, were pooled by said Board Order;

(c) The Board Order required each Respondent whose interests, if any, were pooledby the terms of said Board Order to make his or her election within thirty (30) days after the date ofmailing or recording, as applicable, of said Order; the Designated Operator has filed its Affidavit ofElection dated July 14, 1993, in accordance with 5 7.c of the Virginia Gas and Oil Board Regulations

and VR 460-05-22 2 (herein "Affidavit of Election ) wherein it hss for each Respondent whoseinterests, if any, were pooled by said Board Order, stated: (i) whether each Respondent has made orfailed to make a timely election; (ii) the nature of the election made, if any; (iii) whether, by reason ofa failure to elect or to timely elect one or more Respondents are deemed, under the terms of the BoardOrder, to have leased all their rights, interests, and claims in and to the Coalbed Methane Gas in

Subject Drilling Unit to the Designated Operator;

(d) The Board Order further required the Designated Operator, after expiration ofthe election period, to file with the Board a statement of the interests subject to escrow under theterms and provisions of the Board Order, in light of the elections made or deemed to have been made(herein "Statement of Interests" );

(e) Subsequent to the entry of the Board Order and the expiration of the electionperiod, the Designated Operator determined that certain of the acreage and percentages in the SubjectDrilling Unit should be amended. The Designated Operator filed a Motion for Entry of this SupplementalOrder on July 15. 1993, under Docket No. VGOB-93/06/17-0393 and brought on for hearing theamendments to said acreages and percentages;

(f) The Designated Operator filed a Statement of Interest dated November 6, 1993,as part of its Affidavit of Election.

(g) Current Board standards requiring ths escrow of funds and ths 6oard'sagreement with its Escrow Agent, Tazewell National Bank, P.O. Box 909, Tazewell, VA 24651, orany successor named by the Board, require the entry of a Supplemental Order establishing of recordthe elections made or deemed to have been made and specifying the sums or percentage thereofsubject to escrow. Current Board escrow standards were made applicable to Subject Drilling Unit bya Board Order dated December 23, 1992.

3. ~rr: By this Supplemental Order, the Board orders the Designated Operator totender, consistent with and in accordance with the findings set forth at paragraph 4. above and thsannexed Affidavit, any funds subject to escrow and instructs the Escrow Agent, Tazewell NationalBank, P.O. Box 909, Tazewell, VA 24651, or any successor named by the Board to establish interest-bearing escrow account(s), IRS Tax Identification Number 54-1629506, in accordance with theinformation set forth in said Affidavit of Election to receive such funds and account to the Boardtherefore.

4. Mailino of Order and Filino of Affidavit: The Designated Operatoror its Attorneyshall file an affidavit with the Secretary of the Board within ten (10) days after the date of receipt ofthis Supplemental Order stating that a true and correct copy of this Supplemental Order was mailedwithin seven (7) days from the date of receipt of this Supplemental Order to each person whoseinterest or claim is subject to escrow and whose address is known.

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

6. Effective Date: This Supplemental Order shall be effective on the date of itsexecution.

9Ã< 437 l'III 314

DDNEANDEXEDDTEDthf +4 Y f fdf M. f994 bY j jtY f th Yj dj j G

Chairman, kknny R. Wfjfn pier

DONE AND PERFORMED THIS ~a/ day ofM~, 1994, by Order of this Board.

Byron Thomas FufmerPrincipal Executive to the StaffVirginia Gas and Oil Board

Susan G. GarrettNotary Public

STATE OF VIRGINIA )COUNTY OF WISE I

knowledged on this~ day oW~m~t 994, personally before me a notary public:ip;anjig 'f, ',ommonwealth of Virginia,+peared Benjarr Wampler, who being duly sworn did deposeand.sa+tlf, 'Chairman of the Virginia Gas and Oil Boar, that he executed the same and was

',authoN/fxeidi4'jest

My cot'mmissr'orite'xtpires 7/31/94

STATE OF VIRGINIA )COUNTY OF WASHINGTON )

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Acknowledged on this ~day of f f~/~x W~ 994, personally before me a notary publicin and for the Commonwealth of Virginia, apfieared Byron'Thomas Fulmer, who being duly sworn diddepose and say that he is Principal Executive to the Staff of the Virginia Gas and Oil Board, that heexecuted the same and was authorised to do so.

gM~~ C7Diane J. Davis/Notary Public

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EXHIBIT B

Suoolemental Order Reoardina Elections

Affidavit of Election

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VIRGINIAN

BEFORE THE VIRGINIA GAS AND OIL BOARD

IN REe

Application of Pocahontas Gas Partnership for Forced Pooling of Interestsin Unit Number SLW11, VGOB Docket No. VGOB-92/08/18-0248 in the GardenDistrict of Buchanan County, Virginia

AFFIDAVIT OF Pocahontas Gas Partnership (herein "Designated Operator")REGARDING ELECTIONS, ESCROW AND SUPPLENENTAL ORDER

Leslie K. Arrington (herein Affiant), being first duly sworn on oath,deposes and sayer

That our Affiant is employed by Consol, Inc., a partner in PocahontasGas Partnership, the Designated Operator, at its office located atP.O. Sox 947 Bluefield, VA 24605, that your Affiant is theDesignated Operator' Permit Specialist, and i,s authorised for givethis Affidavit in its behalf;

That the Order entered on October 1, 1992, by the Virginia Gas andOil Board regarding the captioned (CBN or conventional) Unit requiredthe Applicant to mail a tzue and correct copy of said Order to eachperson pooled by said Ordert

That within seven (7) days of the receipt of an executed copy of theOrder referred to at Paragraph 2. above, your Affiant caused a trueand correct copy of said Order to be mailed via the United StatedPostal Service to each Respondent named in the captioned Application,whose address was known, and to all persons, if any, who were addedas Respondents at the hearing held in the captioned matter; thatannexed hereto and incorporated herein are copies of the letters oftransmittal, receipts for certified mail and return receiptspertaining to said mailing>

That the Order of the Virginia Gas and Oil Board in the captionedmatter required all persons pooled thereby to tender their writtenelections to the Unit Operator within thirty (30) days of the datesaid Order was recorded in the county above named; that said Orderwas recorded on October 8, 1992.

That the Designated Operator, Pocahontas Gas Partnership, hasestablished procedures to review all mail received and all writtendocuments received by means other than by mail to ascertain whethezparties whose interests have been pooled have made a writtenelection, in a timely fashion, as required by the captioned Order;that said procedures were followed to identify the elections, ifany, made with regard to Subject Unit) that the following personsdelivered, by mail or otherwise, written elections to the UnitOperator, within the thirty day election periods

None.

That the interest and/or claims of the following person (who madetimely elections, or who are deemed under the terms of the Board'sOrder to have leased, or who, subsequent to the pooling hearing heldin the captioned matter, have leased or otherwise entered into anagreement with the Designated Operator) are subject to escrow underthe Board's Order pooling the captioned Unit, Board Regulations andthe Code of Virginia) that opposite the name of each person named asa Respondent listed below is set forth:

for all of the information requested below, see Rxhibit A

name I

the type of election made, or deemed to have been made, or thelease or other agreement entered into;

the bonus amount subject to escrow, if any;

the royalty division of interest in the Unit, if anyI

the working interest percentage, if any, resulting from an~lection of participateI

the working interest percentage, if any, resulting from anelection to share in the operation of the unit as anonpazticipant on a carried basis subject to esczow only afterthe Designated Operator has recovered its costs as provided inthe Board's Order;

whether the interest or claim subject to escrow is an undividedcommon intexest, and in that event, all amounts and percentagesstated below represent the total amounts attributable to allcommon owners, including the person named, of an undividedinterest or claim subject to escrowt

That after the pooling hearing held in the captioned matter, thefollowing persons have leased ox'ntered into a voluntary agreementwith the Designated Operator with regard to their intexests and/orclaims which are not subject to escxow and should, thexefore, bedismissed as RespondentsI

None.

That pursuant to the provisions of VR 480-05-22.27C and VR 480-05-22.2.8, annexed hereto and incorporated herein is a proposedsupplemental order to be entered to complete the record regardingelectionsl that said annexed supplemental order sets forth andidentifies the conflicting claims and/or interests which requireescrow of funds pursuant to the terms of 5 8 45.1-361.21.D,45.1-361.22.A.3 and 4. I

Dated at Bluefield, Virginia, this 14th day of Jul .1993.

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Taken, subscribed and sworn to bef ore me by Les lie K. Arrington theAuthorised Agent of Pocahontas Oas Partnership, a corporation, on behalf of thecorporation, this 14th day of July, 1993.

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VIRGINIA: In the Clerk's Office of the Circuit Court of Buchanan County. The

wss this day presented in titis o aforesai is, together with the c /pete of ackn

admitted to recorgirthis ...../X.:.......ifay o ..Deed Book No...E/.7..syl Page No.c=.Iyial=. TESTE:

Returned this date to„' .. cgyESTE:p8isi < /<I rc