0700P)) 54

!INSTRUMENT PREPARED BYVIRGINIA GAS AND OIL BOARD !

ORDER RECORDED UNDER CODEOF VIRGINIA SECTION 45.1-361.26

VIRG1NIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

SUPPLEMENTAL ORDER REGARDING DOCKET NO. VGOB 07/01/16-1864

ELECTIONS, UNIT: SSS-22

(hereinafter "Subject Drilling Unit" ).

REPORT OF BOARD

FINDINGS AND ORDER

1. This Supplemental Order is entered by the Board sua snonte in the form authorized bythe Board at its hearing held at 9:00Lm. on October 20, 1992, Board of Supervisors

Room, Courthouse, Grundy, Virginia, and pursuant to authority granted to the Board'sChairman at the hearing of the Virginia Gas and Oil Board on June 16, 1992, at 9:00a.m. at the Rhododendron Restaurant at the Breaks Interstate Park, Breaks, Virginia;and this Supplemental Order is being recorded for the purpose of (I) complying withthe requirement of the Virginia Gas and Oil Board Regulations, 4 VAC 25-160.70C bysupplementing the Order previously issued by the Board for subject Docket onJanuary 16, 2007 and recorded in Insttument ¹ 070002328 in the Office of the Clerkof Circuit Court, Buchanan County, Virgiinia on June 21, 2007, (herein "BoardOrder" ) to complete the record regarding elections. The Board Order pooled all

interest in Subject Drilling Unit including those of the Respondents more particularlyset forth and identified by the Designated Operator in the afndavits attached heretoand made a part hereof. The Board finds it has jurisdiction over the subject matterpursuant to the provisions of the Virginia Gas and Oil Act, $ 45.1-361.1~et e .,Virginia Code, 1950 as amended.

2. Findinus: The Board finds that:

ll J

(a) The Board Order directed Coronado Virginia LLC, (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 affidavit of mailing dated July 24, 2007,disclosing that it had mailed a correct copy of the Board's Order to allRespondents whose interest, if any, were 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 after the date of mailing or recording, as applicable, of said Order; the

Designated Operator has filed its affidavit dated August 6, 2007, in accordance

with $ 7.C of the Virginia Gas and Oil Board Regulations and 4 VAC 25-160.70C (herein "Affidavit of Election" ), wherein it has, for each Respondentwhose interest, if any, were pooled by said Board Order, stated: (i) whether

each Respondent has made or failed to make a timely election; (ii) the nature ofthe election made, if any; (iii) whether, by reason of a failure to elect or totimely 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 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 toescrow under tlie terms and provisions of the Board Order, in light of theelections made or deemed to have been made (herein "Statement of Interests" );that the Designated Operator fiirnished said Statement of Interests as part of itsAffidavit ofElection. A copy of which is attached hereto as Exhibit B;

(e) Current Board standards requiring the escrow of funds and the Board'sagreement with its Escrow Agent, Wachovia Bank, N. A., VA7515, P.O. Box14061, Roanoke, VA 24038, (888) 396-0853, Attn: Judy Barger, or anysuccessor named by the Board, require the entry of a Supplemental Orderestablishing of record the elections made or deemed to have been made and

specifying the sums or percentage thereof subject to escrow. Current Boardescrow standards were made applicable to Subject Drilling Unit by a BoardOrder dated December 23, 1992.

3. ~Order By this Order, the Board orders the Designated Operator to tender, consistentwith and in accordance with the findings set forth at paragraph 2 above and theannexed Affidavits, any funds subject to escrow and instructs the Escrow Agent,Wachovia Bank N. A., VA7515, P.O. Box 14061, Roanoke, VA 24038, (888) 396-0853, Attn: Judy Barger, or any successor named by the Board to establish interest-bearing escrow account(s), IRS Tax Identification Number 54-1629506, inaccordance with the information set forth in said affidavits to receive such funds andaccount to the Board therefore.

4. Mailina of Order and Filirut of Affidavit: The Designated Operator under thecaptioned Order or its Attorney shall file an affidavit with the Secretary of the Boardwithin ten (10) days after the date of receipt of this Order stating that a true andcorrect copy of this Order was mailed to each person whose interest or claim issubject to escrow and whose address is known.

5. Conclusion: Therefore, the findings and 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 EKECUTED this Al dayof, 2007 by a majorityof the Virginia Gas and Oil Board. 47

~rman, Baffy R. Wagner

yfDONE AND PERFORMED THIS W day of , 2007 by Orderof this Board.

B.1t.WilsonPrincipal Executive to the StaffVirginia Gas and Oil Board

State of Vir 'niaCounty of Wa 'ngton

Achnowlmdged on this 21st day of August, 2007, personally before me anotary in and for the Cosraonwealth of Virginia, appeared Benny R. Wampler,being duly sworn did depose and say that he is Chairaam of the Virginia Gasand Oil Board and B. R. Wilson, being duly sworn did depose and say that heis Principal Executive to the Staff of the Virginia Gas and Oil Board, thatthey executed~ the same and were authorised to do so.

iSy coamission expires 9/30/09

BEEOBETHE f/IBGIIMA GAS AND OIL BOABD

IN RE: Application of Coronado Virginia LLC, for Forced Pooling of Interests in Unit Number

SSS-22 VGOB Docket No. VGOB-07/01/16-1864 in the North Grundy Magisterial District ofBuchanan County, Virginia.

AFFIDAVIT OF WILHOIT 4 KAISER, Attorneys-at-Law, Agents for the Designated Operator

REGARDING 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 of WILHOIT /k KAISER, the Agent for

the Designated Operator, with offices located at 220 Broad Street, Kingsport,Tennessee 37660, and is authorized to give this Alfidavit in its behalf;

2. That the Order entered on January 16, 2007, by the Virginia Gas and Oil Board

regarding the captioned coalbed methane Unit required the Applicant to mail a true

and correct 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 Respondent

named in the captioned Application, whose address was known, and to all persons, ifany, who are added as Respondents at the hearing held in the captioned matter;

4. That the Order of the Virginia Gas and Oil Board in the captioned matter required

all persons pooled thereby to tender their written elections to the Unit Operator within

thirty (30) days of the date said Order was recorded in the county above named; that

said Qrder was recorded on June 21, 2007.

That the Designated Operator, by and through their agent, Wilhoit dt Kaiser,Attorneys-at-Law, have established procedures to review all mail received and all

wri~ documents received by means other than by mail to ascertain whether partieswhose interest have been pooled have made a written election, in a timely fashion, asrequlsed 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 otherwise, written elections to the Unit Operator, within thethirty day election periods:

NONE

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,subsequent to the pooling hearing held in the captioned matter, have leased or

otherwise entered into an agreement with the Designated Operator) are subject toescrow as either unknown claiments or conflicting claiments under the Board's Order

pooling the captioned Unit, Board Regulations snd the Code of Virginia; that oppositethe mane of each person named as a Respondent listed below is set forth:

NETLEASE REVENUE

LESSOR STATUS INTEREST

3 Ruth Holbrook Estate Unleased 0.0015142Unknown Address

Hayes W. Davis Estate Unleased 0.0015142Unknown Address

Bonnie Snyder EstateUnknown Address

Unleased 0.0015142

Gertrude Turner Estate Unleased 0.0015142Unknown Address

That after the pooling hearing held in the captioned matter, the following persons haveleased or entered into a voluntary agreement with the Designated Operator withregard to their interest snd/or claims.

LESSOR

Georgia Roberts, widowBox 74Chawsville, VA 24216

Jettalene CaseyP.O. Box 453Cedar Bluff, VA 24609

Laura Williams, etux12125 Buttonwood LaneBaltimore, MD 21220

Brenda Diane Franz2741 Old State Route 32Batavia, OH 45103

Donald David Watson, Jr.clo Brenda Diane Franz2741 Old State Route 32Batavia, OH 45103

Gregory Steven Watsoncro Brenda Diane Franz2741 Old State Route 32Batavia, OH 45103

Ronald Allen Watsonc/o Brenda Diane Franz2741 Old State Route 32Batavia, OH 45103

Kennith Ray Watsonc/o Brenda Diane Franz2741 Old State Route 32Batavia, OH 45103

That the following persons have not made a timely election and have failed to enter

into an agreement with the Designated Operator and their respective interests shall: bedeemed to have leased pursuant to and in accordance with paragraph 10 of the Order.

Tract Lessor

3 Ruth Holbrook EstateUnknown Address

Cash Consideration

0.0486 X $5.00 = $0.24

Hayes W. Davis EstateUnknown Address

0.0486 X $5.00 = $0.24

Bonnie Snyder EstateUnknown Address

0.0486 X $5.00 = $0.24

Gertrude Turner EstateUaknown Address

0.0486 X $5.00 = $0.24

That pursuant to the provision of 4VAC 25-160.70C annexed hereto and incorporated herein is aproposed supplemental order to be entered to complete the record regarding elections; that saidannexed supplemental order sets forth that the services of the Escrow Agent are required in thismatter pursuant to the terms of 8 45.1-36L2LD.

Dated at Kingsport, Tennessee, this day of zoos.

Taken, subscribed and sworn to before me by James E. Kaiser, the Agent of Equjtable

uction gompany, a corporation, on behalf of the corporation, this & 7 day of2007.

My commission expires: J/-l4 -C Z8 saran

EXHIBIT "B"

Plum Creek SSS-22(Revised 7/26/07)

Plum Creek Timberlands, LPOne ConooufM Parkway, Suite 755

Aoanta, GA 3032$

LEASEET6Iln

CeaS Estate

Leased

INTERESTWITHIN

QSI

07.14%

GROSSACREAGE

ELIIELT

77.7100

Plum Creek Timberlands, LPOne Concourse Parkway, Suite 755

Atlanta, GA 3032$

0.$500

Georgia Roberts, widow

Box 74Chawsville, VA 24215

Ruth Holbrook EstateUhkflowh Addfsss

Hayes W. Davis EstateUnknown Address

Bfxlllls Shydsf Estatf!Unlufown Address

Gertrude Turner EstateUnknown Address

Jettslehe CaseyP.O. Box 453

Ceder Blvd, VA 24509

Leum Wklhtms, ellfx12120 Bueohwood Lens

SSNhmm, tsD 21220

LMsed

UnkxfMd

Uhlsessd

Unleased

Unleased

Leased

Leased

o.osoe

0.0455

0.0450

0.0450

0.0400

Brands Diane Franz2741 Old Sate Route 32

Satsvla, OH 45103

Donald David Watson, Jro/o Brenda Diana Franz2741 Old Stats Route 32

Bstavis, OH 45103

Gregofy Steven Wstsoho/o Brenda Diane Franz2741 Ok! Sate Route 32

os!avis, OH 45103

Ronald Assn Watsono/o Brenda Diane Franz2741 Old State Route 32

Bstavia, OH 45103

Kehhkh Rsy Watsoh8/o Brenda Diane Franz2741 Old Slate Route 32

Batavia, OH 45103

LMssd

Leased

0.03%

0.03%

0.03%

0.03'%.03%

0.0285

0.02M

0.0240

0.0240

0.0240

alum Cmat Tlmaedanda, tn Leaned O.T0% O.smoone oanemuae paneear, suan 750

Adonis, OA 00020

Total tmm MaloTelel ~tootedTolel. —:~Vmaaeed

TotmaoaoaaaTme Aemlaa aeneasTobl Acetose'Umaaaad

10000%

OM%

NnsTs.si0.10

VIRGINIA: In the Clerk's Ofilce of the Circuit Court ofBuchanan County. Thc foregoing instrumeat waa this day~in the oifice

aforesaid and is, together with the certificat ofackowlcdgcment annexed, admitted to record this ~ay of D~~ llA P2O~. I entNo. 6 7AAl93/GV TESTE: Beverly S.Tiller, Clerk

R~edt.: / 3 A W. K . TEsTE: QADI~~~ lmI le&4~ ~clerk(