commonwealth of virginia sheet a - dept of mines minerals ... · grantors/grantees/pamel...

18
inc tmment Control Number r-n Ip rt Commonwealth of Virginia Lend Record Instruments Cover Sheet - Form A 0 LS VLR Cover Sheet Agent I,cael Date of Instrument: Instrument Type: Number of Parcels Number of Pages City County x Last Name [08/30/13 I [ODAR [ 6) [ '141 [mls Cou ty (Box for Deed Stamp Only) First and Second Grantors First Name Middle Name or Inioal Sumx [Virginia Gas and Oil Bo J [ I[ Fimt and Second Gra First Name Suffix ) I ) ] [24212 00 I Lest Name Middle Name or Initial D Ix] [Range Resources-Pine J [ I[ IRinsr ] [Daniel I IKev)n Grantee Address (Name) [Range Resources-Pine Mountain, Inc (Address 1) [406 West Main Street (Address 2) [P. O. BOx 2'l36 (Cily, stats, zip) [Ablngdoii I ]VA Consideration [0 00 I Existing Debt [0 00 Aseumpdon Balance [0. Prlorlnstr. Recorded at: City County [ Book [ ] Page I ) percelldentlncation No(p)N) I Tax Map Num. Sf dmerent then pIN) [Tracts I, 2, 3 & 7 are minerals Short Property Descriptlon [Pooling Order for VGOB 13-06 Current Property Address (Address I) [ (Address 2) [ (City, State, Zlp) [ } Percent in this Juris. [ 100] Instr. No I ) only. I 18-4016 I I ] ) I [ I I ] Instrument Prepared by Recording Paid for by Return Recording to (Nanw) (Address 1) (Address 2) (City, State, Zipi Customer Case 10 Cover Sheet Page S 1 of 4 [Virginia Gas 8 Oil Board [DMME [DMME - Division of Gas and Oil [P O. Drawer 169 t [Lebanon [13-0618-4016 ] I Ii I 't ' 1[VA 1[24266 I[

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Page 1: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

inc tmment Control Numberr-n

Ip rt

Commonwealth of VirginiaLend Record InstrumentsCover Sheet - Form A

0LS VLR Cover Sheet Agent I,cael

Date of Instrument:

Instrument Type:

Number of Parcels

Number of Pages

City County x

Last Name

[08/30/13 I

[ODAR

[ 6)

[ '141

[mls Cou ty(Box for Deed Stamp Only)

First and Second GrantorsFirst Name Middle Name or Inioal Sumx

[Virginia Gas and Oil Bo J [I[

Fimt and Second GraFirst Name Suffix

)

I

)

] [2421200 I

Lest Name Middle Name or Initial

D Ix] [Range Resources-Pine J [ I[IRinsr ] [Daniel I IKev)n

Grantee Address (Name) [Range Resources-Pine Mountain, Inc(Address 1) [406 West Main Street(Address 2) [P. O. BOx 2'l36(Cily, stats, zip) [Ablngdoii I ]VA

Consideration [0 00 I Existing Debt [0 00 Aseumpdon Balance [0.

Prlorlnstr. Recorded at: City County [Book [ ] Page I )percelldentlncation No(p)N) ITax Map Num. Sf dmerent then pIN) [Tracts I, 2, 3 & 7 are mineralsShort Property Descriptlon [Pooling Order for VGOB 13-06

Current Property Address (Address I) [(Address 2) [

(City, State, Zlp) [

} Percent in this Juris. [ 100]Instr. No I

)only. I18-4016 I

I

])

I [ I I ]

Instrument Prepared byRecording Paid for byReturn Recording to (Nanw)

(Address 1)(Address 2)(City, State, Zipi

Customer Case 10

Cover Sheet Page S 1 of 4

[Virginia Gas 8 Oil Board[DMME[DMME - Division of Gas and Oil

[P O. Drawer 169t[Lebanon[13-0618-4016 ] I

Ii I

't '

1[VA 1[24266I[

Page 2: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

Instrument Control Number

!On

Commonweaith of VirginiaLand Record InstrumentsContinuation Cover SheetForm CBLS VLR Cover Sheet Agent 1.0.SS)

Date of Instrument: [08/30/13 ]Instrument Type: [ODAR ]

N N

8 T TNumber of Parcels

Number of Pages

City County x

I 61

[ 14)

[Ws DutyWise County(Box for Deed Stamp Only)

Grantors/Grantees/Pamel Continuation Form C

Last Name

IRiner[Underwood(Meads[/r ner[Rmer

I (Kerry

J [Dennis

I [Densen1[Char/esI [Jud)th

First Name Middle Name or Inaal

1(TylerI(] IKelly Collins

1(D) [Elaine

if] (Sr.I()[][

Suffix

Prior Instr Recorded at: City County [Bool I I PagePa cel Identification No (PIN) [011367T x Mep Num. Ilf different than PIN) [8 vert Property Description [Pooling

ICi rrent Property Address (Address 1) [

(Address 2) [(City, Stats, zip) [

prior instr. Recorded at: City County I

Book [ ] Page [Parcel Identification No (PIN) [011368Tax Map Num. Bf different than pIN) [Short Properly Description [POOBIig

(Current Property Address (Address 1) [

(Address 2) [(City, Slate, Zip) [

Tract 4

] Percent. In this Jurisinstr. No [

Order for VGOB 13-0618-4016

I[ ]I

ITract 8

] Percent. in this Jur/s.Instr. No [

1[ I(

Order for VGO6 13-0618-4016

1001I

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II

[ 100JI

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Cover Sheet Page ¹ 2 of 4

Page 3: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

Insbnment Contre/ Num/mr

I

Commonwealth of VirginiaLand Record InstrumentsContinuation Cover SheetForm CI/LS VLR Cover Sheet Agent I C ee)

Date of Instrument;

instrument Type:

Number of Parce/s

Number of Pages

City County x

[08/30/13 ]

[ODAR

I 6][ 14)

[W Co t {Soxfor Deed Stamp Only)Wise CountyGrantors/Grantees/Parcel Continuation Form C

Last «an F/mt Name Middle Name or Initial Sumx

[ )I)I

[ II[ )I

](prior Instr. Recorded at: City County [0ooh I ) Page [parcel Identif/cation No (P/N) (011364Tax Map Num. [if dilferent than P/Ni [Short Property Descnption )Pooling

I

current Properly Address [Address 1/ ((Address 2) [

fcny, stale, zip/

1)lfItI(I(

)Tract 6

ifII)II()I

] Percent. in this Juris.Instr. No [

I[ )I

Order for VGOB 13-0618-4016

[ 100])I

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1

I

prior Instr. Recorded at: City County [I!ocs [ ) Page [parcel Identification No (P/N) (011079T x slap Num. gf differentthan P/N) [Short Property Description (Poohng

[Current Property Address [Address 1) [

Piddress 2) [(City, State, Zip) [

I Percent. in this Juris.Instr. No [)

Tract 8

Order for VGOB 13-0618-4016

It I(

[ 100]I

1

1

I

1

I

1

Cover Sheet Page ¹ 3 of 4

Page 4: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

In trument Control Number

Commonwea(th of VirginiaLand Record Instrumentscontinuation Cover SheetFarm C(i LS VLR Cover Sheet Agent 1,6661

Date of Instrument:

trument Type:

[08/30/I 3[ODAR J

mber of Parcels

lither of Pages

City County x

( Sl

[ 14)

[Ws C tyWise County(Box for Dead Stamp Only)

Grantom/Grantees/Parcel Contlnuadon Form CLast Name First Name Middle Name or Iniaal Suffix

llI()II(I[

lfI[lfI(lf

I[)[I[I[I[

Pffior Instr. Recorded at: City County [Book [ I Page [ IParcel Identiricatlon No (PIN) [034011 - Tract 0Tax blaP Num. (if dlfferentthen PIN) [Short Property Description [Pooling Order for VGOB

ICurrent Property Address (Address I) [

(Address 2) [Icily, state, zip) [

I Percanc in thisInstr. No [

13-0618-4016

Juris. [ 1001I

))

)I

I

I

I[ I

Prior Instr. Recorded at; City County [Book [ I Page I IParcel Identification No (PIN) (Tax. Map Num. (if different than PIN) [Shorl Property Description [

Current Property Address (Address I) [(Address 2) [

(City, State, Zip) (

I Percent. in thisInstr. No [

Juris. [ J

I

I

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IISNllCover Sheet Page ¹4 of 4

Page 5: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

INSTRUMENT PREPARED BYVIRGINIA GAS AND OIL BOARD

ORDER RECORDED UNDER CODEOF VIRGINIA SECTION 45 1-361 26

V I R G I N I A.

RELIEF

SOUGHT'EGAL

DESCRIPTION

(I) ESTABLISHMENT OF THE DRILLINGUNIT DEPICTED IN EXHIBIT A HERETOAND SERVED BY WELL NO V-530346containing 112.69acres(herein "Subject Dniling Unit" )PURSUANT TO VA CODE 9 45.1-351.20(2) POOLING OF INTERESTS IN

SUBJECT DRILLING UNIT PURSUANT TOVA. CODE 9 45.1-361.21,FOR THEPRODUCTION OF GAS OTHER THANCOALBED METHANE GAS FROM SUBJECTFORMATIONS (herein referredto as "Conventional Gas" or "Gas");and (3) DESIGNATE THE APPLICANTAS THE UNIT OPERATOR FOR THESUBJECT DRILLING UNIT

DRILLING UNIT SERVED BY WELL NUMBEREDV-530346 TO BE DRILLED IN

THE LOCATION DEPICTED ON EXHIBIT A HERETO,D.A. Stagard (James Rose) Tract34.00 acres, more or lessGLADEVILLE DISTRICTPOUND QUADRANGLEWISE COUNTY, VIRGINIA(the 'Subject Lands" are more particularlydescribed on Exhibit A attached heretoand made a part hereof)

TAX MAP IDENTIFICATION NUMBERS

TAX MAP IDENI IFICATION NUMBERS FOR ALL PARCELSAFFECTED BY THIS ORDER ARE SHOWN ON EXHIBIT(S)B4 WHICH IS/ARE ATTACHED TO AND A PART OFTHIS ORDER

REPORT OF THE BOARD

FINDINGS AND ORDER

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT'ance Resources-Pine Mountain. Inc. VIRGINIA GASAND OIL BOARD

DOCKET NO.VGOB-134rsts~ta

I Heanno Date and Place Thi* matter came on for heanng before the Virgmia Gas and OilBoard (hereafter "Board") at 9:00 a.m. June 18, 2013 and continued to July 16, 2013, at the RussellCounty Office Building, Highland Drive, Lebanon, Virginia

Page Number 1.

Page 6: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

2 Appearances: Timothy E. Scott appeared for the Applicant.

3 Junsdictron and Notice. Pursuant to Va. Code g 45.1-361.1et seq., the Board finds thatit has junsdiction aver the subject matter Based upon the evidence presented by Applicant, the Boardalso finds that the Applicant has (I) exerased due diligence in conducting a meaningful search ofreasonably evadable sources to determine the identity and whereabouts of each gas and oil owner, caalowner, or mineral awner having an interest m Sublect Dnlkng Unit underlying snd comprised of SublectLands, (2) has represented to the Board that it has grven notice to those parties (hereafter sometimes"person(s)" whether referring to mdividuals, corporabons, partnerships, assoaatians, companies,businesses, trusts, joint ventu es or other legal entities) entrtled by Va Code g 45.1-361 19 to notice ofthe Appircation filed hereiri and (3) that the persons set forth in trait Application and Nobce of Heannghave been tdentrfied by Applicant through its due diligence as Owners or Claimants of Conventional Gasinterests underlying Subiect Drilling Umt, including those set out in Exhibit B-3 who have not heretoforeleased, sold or voiuntanly agreed with the Appkcant ta pool their Gas mterests in subject Drifimg Unit

Unknown and/or Unlocatable Owners/Claimants in the Subject Drrliing Unrt are listed on Exhibit E.Further, the Board has caused notice of this hearing to be published as required by Va Code 5 45 I-361.19 B Whereupon, the Board hereby finds that the notices given herein satisfy ail statutoryrequirements, Board rule requirements and the minimum standards of due process

4 Amendments: Exhibits 8 and 8-3.

5. Dismissais Charles D. Riner

*Board estabimh Subject Dnlling Unit Io be served by Well No. V430346; and (2) that pursuant to Va.Code 5 45 1-361.21, the Board pool the nghts, interests and estates in and ta tha Conventional Gas afthe known and unknown persons listed in itis aitached Exhibit B-3, and that of their known and unknownheirs, executors, administrators, devisees, trustees, assigns and successors, both immediate and remote,for the dnltmg and operation, including production, of Conventional Gas from the Sublect Drifirng Unit

established for Subject Formations underlying and comprised of the Subject Lands, (hereaher samebmescollectively idenbfiea and referred to as "well Development and/or operabon in the subject Dniiing Unit"j;and, (3) that the Board designate Ranae Resources-Pine Mountain. Inc. as Unit Operator

7 Relief Granted The requested relief in this cause shall be and hereby is granted

71 The Board hereby: (1) establishes Sub/ect Dnfirng Unii pursuant to Vs. Code 5 451-361 20, (2) pursuant to Va Code 9 45.1-361.210 3, designates Range Resources-PineMountain, Inc. (herernafter 'Unit Operator" ) as the Operator authonzed to drill andoperate Well No. V-530346 in the Subject Driihng Unit at the location depicted on the platattached hereto as Exhibit A to produce Conventional Gas from Subject Formations,subject lo the permit provisions contained in g 45.1-361 27 et seq, code of virginia,1950 as amended, to 5 4 VAC 25-150 et seq., Gas and Oil Regulations and to 5 4 VAC25-160 et seq., Virgima Gas and Orl Board Regulations, afi as amended from time totime; and (3) pursuant to Va. Code 5 45.1-361 21A, the rights, interests, and estates in

and to the Conventional Gas m Subject Dniling Unit including those of the known andunknown persons listed on Exhibit B-3, attached hereto and made a part hereof, andtheir known and unknown heirs, executors, administrators, dewsees, trustees, assigns,and successors, both rmmedrste and remote, be end hereby are pooled in the SubjectFormations in the Subiect Drilling Unit underlying and comprised ot the Sublect LandsThere are no applicable field rules and Ihe unit is subject to statewide spacingrequirements af Va. Code 5 45 1-361 17

8. Elecfion and Elecbon Pened'n the event any Gas owner named in the Application andNotice of Hearing has not heretofore reached a voluntary agreement to share in the operation of the well

ta be located in Subject Dnging Unit at a rate af payment mutually agreed to by said Gas owner and theOperator, then, such person may elect one of the options set forth m Paragraph 9 befow and must give

Page Numbex 2.

Page 7: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

j() rn

mitten notice of his election of the option selected under Paragraph 9 herein to the designated UnitOperator at the address shown below wnhin thirty (30) days from the date of receipt of a copy of IbisOrder A timely election shall be deemed to have been made if, on or before the last day of said 30-dayperiod, such electing person has delivered his wntlan election to the designated Und Operator at theaddress shown below or has duly postmarked and placed his wntten election in first class United Statesmail, postage prepaid, addressed to the Unit Operator al the address shown below.

9. Electloh Ootlohs'

1 Ootion I - To Partiwoate In The Develooment and Ooeratlon of the Dnlimo Unit

Any Gas Owner or Claimant named in Exhibit B.3 who has not reached avoluntary agreement with the Operator may elect to participate in the WellDevelopment and Operation on the Sub)act Uniting Unit (hereafter "ParticipaungOperator" ) by agreeing to pay the estimate of such Partimpating Operator'spioportronate part of the actual and reasonable costs, including s reasonablesupervision fee, of the Well Development and Operation, as more particularly setforth in Virgmia Gas and Oil Board Regulation 4 VAC 25-180-100 (herein"Completed for Production Costs" ) Further, a Partimpating Operator agrees topay the estimate of such participaung operators proportionate part of theEstimated, Completed-for-Production Costs as set torth below to the UnitOperator withm forty-five (45) days from the later of the date of mailing or thedate of recording of this Order. The estimated Completion-for-Production Costsfor the Subject Dnilmg Unit are as fo8ows:

Estimated, Completed-for-Production Costs: 3502,621.00

Any gas owner andfor claimants named in Exhibit B.3, who elects this option(Option 1) understands and agrees that ther initial payment under this option isfor their proportionate share of the Applicant's estimate oi actual costs andexpenses. It is also understood by all persons electing this option that they areagreeing to pay their proporuonale share of the actual costs and expenses asdetermined by the operator in this Board Order.

A Partiapating Operator's proportionate cost hereunder shall be the resultobtained by mulbplying the Participahng Operator's 'Percent of Unit'imes theCompleted-for-Production Cost sei forth above. ~Prove ed, however, that in theevent a Participating Operator elects to participate and fails or refuses lo pay theestimate of his proportionate part of the Completed-for-Producuon Cost as setforth above, ail within the time set forth herein and in the manner prescnbed in

Paragraph 8 of this Order, then such Participating Operator shall be deemed tohave elected not to partiimpate and to have elected compensation in lieu ofpsrtimpation pursuant to Paragraph 9 2 herein

9 2 Cohen 2 - To Receive A Cash Bonus Consideration'n lmu ot partimpating in theWell Development and Operation of Subiact Dnlkng Unit under Paragraph 9.1above, any Gas Owner or Claimant named in Exhibit B-3 in the unit who has notreached a voluntary agreement with the Operator may elect to accept a cashbonus consideration of $225.0) per net mineral acre owned by such person,commencing upon entry of this Order and continuing annually until

commencement of production from Subject Drilling Unit, and thereafter a royaltyof 1/8th of 8/8ths (twelve and one-half percent (12.555)) of the net proceedsreceived by the Unit Operator for the sale of the Gas produced from any WellDevelopment and Operation covered by this Order multiplied by the Gas owner'spercentage Interest Withm Unit as set forth m the Application and Notice ofHearing (for purposes of this Order, net proceeds shall be actual proceedsreceived less post-production costs incurred downstream of the wellhead,

Page Number 3.

Page 8: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

including, but nol limited lo, gathering, compression, treat/ng, transportation andmarketing costs, whether performed by Unit Operator or a third person) as fair,reasonable and equitable compensation to be paid to said Gas owner The initialcash bonus shell become due and owing when so elected and shall be tendered,paid or escrowed within one hundred twenty (120) days of recording of thisOrder Thereafter, annual cash bonuses, if any, shall become due and owing oneach anniversary of the date of recording of this Order in the event productionfrom Subject Dnllmg Unit has not theretofore commenced, and once due, shallbe tendered, paid or escrowed within s/xty (60) days of said anniversary date.Once the initial cash bonus and the annual cash bonuses, if any, are so paid orescrowed, said payment(s) shall be satisfaction in full for the nght, interests, andclaims of such electing Gas owner m and to the Gas produced from SubjectFormation m the Subject Lands, except, however, for the 1/8th royalties duehereunder.

Sub/ect to a final legal determination of ownership, the election made under thisParagraph 9 2, when so made, shall be satisfaction in full for the nght, mterests,and claims of such electing person In any Well Development and Operationcovered hereby and such elecbng person shall be deemed to and hereby doeslease and assign its nght, interests, and claims in and to Ihe Gas produced fromSublect Formation in the Subject Drilling Unit to the Applicant,

9 3. Ootion 3 - To Share In The Deveiooment And Ooerabon As A Non-ParticioatinoPerson On A Cerned Basis And To Receive Consideration In Lieu Of Cash. Inlieu of partimpating in the Well Development and Operation of Subject DriftingUnrt under Paragraph 9.1 above and in lieu of receiving a cash bonusconsitferation under Paragraph 9 2 above, any Gas Owner or Claimant named inExhibit B-3 hereto who does not reach a voluntary agreement with the Operatormay elect to share In the INell Development and Operation of Sublect DrillingUnit on a cerned basis (as a "Cardied Well Operator"j so that the proporbonatepart of the Completed-for-Production Costs hereby allocable to such Cerned WellOperator's interest is charged against such Cerned Weil Operator's share ofproduction from Subject Drilbng Un/t. Such Carried Well Operator's nghts,mterests, and claims m and to the Gas in Subject Dnlling Unit shaft be deemedand hereby are assigned to the Umt Operator until the proceeds from the sale ofsuch Cerned Well Operator's share of production from Sub/ect Dnlkng Unit(exdusrve of any royalty, excess or overriding royalty, or other non-operating ornon cost-beanng burden reserved in any lease, assignmenl thereof or agreementrelating thereto covenng such interest) equals three hundred percent (300'/) fora leased interest or two hundred percent (200%) for an unieased interest(whichever is applicable) of such Cerned Weil Operator's share of theCompleted-for-Production Costs allocable to the interest of such Carried WellOperator. Any Gas Owner and/or Claimant named in Exhibit 8-3 who elects thisoption (Opbon 3) undemtands and agrees that Completed-for-Production Costsara the Operator's actual costs for well development and operation When IheUnit Operator recoups and recovers from such Cerned Weil Operator's assignedinterest the amounts provided for above, then, the assigned interest of suchCarried Well Operator shall automatically revert back to such Canted WellOpemlor, and from and after such reversion, such Cerned Well Operator shall betreated as if it had parbmpated imtialiy under Paragraph 9.1 above; andthereafter, such partimpating person shall ba charged with and shall pay hisproportionate part of ag further costs of such well development

Subiect to a final legal determinabon of ownership, the election made under thisParagraph 9 3, when so made, shall be satisfaction in full for the nght, interests,

page Number 4.

Page 9: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

and claims of such electing person in any well development and operationcovered hereby and such eleMing person shall be deemed to have and herebydoes assign his right, interests, and claims in and to the Gas produced fromSubject Formation in the Subject Drilling Unit to the Unit Operator for the penedof time dunng which hrs interest is cerned as above provided prmr to its reversionback to such electing person.

10. Failure lo Proo~erl Elect In the event a person named in Exhibit 8-3 hereto does notreach a voluntary agreement with the Applicant and fails to do so within the time in the manner, and rn

accordance with the terms of thrs Order one of the alternatives set forth in Paragraph 9 above for whwh

his interest qualifies, then such person shall be deemed to have elected not to partimpate in the proposedINeb Development and Operation in Subject Drilling Unit and shall be deemed, subject to any final legaldetermination of ownership, to have elected to accept as satisfacbon in full for such person's nght,interests, and claims in and lo the Gas the consideration provided in Paragrapii 9 2 above for which itsinterest qualifies and shall be deemed to have leased and/or assigned his nghi. interests, and claims in

and to Gas in the Subject Drilling Unit to dte Unit Operator Persons who fail Io properly elect shall bedeemed to have accepted the compensation and lerms set forth herein at Paragraph 9 2 in sabsfackon rn

full for the right, interests and claims of such person in and to the Gas produced from Subject Formauonunderlying Subject Lands.

11. Default Bv Particmatino Person: In the event a person named in Exhibit 8-3 elects topartrwpate under Paragraph 9.1. but fails or refuses to pay, to secure the payment or to make anarrangement with the Unit Operator for the payment of such person's proporbonate part of the EsbmatedCompleted-for-Production costs as set forth herein, all within the time and in the manner as prescnbed in

this Order, then such person shall be deemed to have withdrawn his elecbon to participate and shall bedeemed to have elected to accept as satisfaction in full for such person's nght, interests, and claims in

and to the Gas the consideration provided in Paragraph 9.2 above for which his interest qualifiesdepending on the excess burdens attached to such interest Whereupon, any cash bonus considerakondue as a result of such deemed election shall be tendered, paid or escrowed by Unit Operator withm onehundred twenty (120) days after the last day on which such defaulting person under Ibis order shouldhave paid his proportionate part of such cost or should have made satisfactory arrangements for thepayment thereof When such cash bonus consideration is paid or escrowed, it shall be satisfaction in full

for the right, interests, and claims of such person in and to the Gas underlying Subject Dnbing Umt in theSublect Lands covered hereby, except, however, for any 'IISth royalties which wouk! become duepursuant to Paragraph 9.2 hereof.

12 Assionment or i~nmst. In the event a person named rn Exhibit 8-3 is unable to reach avoluntary agreement to share in Ihe Well Development and Operation contemplated by this Order at arate ot payment agreed to mutually by said Owner or Claimant and the Appkcant, and said person electsor fails to elect to do other than participate under Paragraph 9.1 above rn the We/1 Development andOperation in Sublect Drilling Unit, then such person shall be deemed to have and shall have assignedunto Applicant such person's right, interests, and claims in and to said well, in subject Formations m

Subject Dniling Unit, and other share in and to Gas production to which such person may be entitled byreason of any election or deemed election hereunder in accordance with the provisions of this Order

governing sard elections

13. Unit Ooerator ior Ooerator) Range Resources-Pine Mountain, Inc. shall be andhereby is designated as Unrt Operator authorized to dnll and operate Well No. V-630346 m SublectFormations in Subject Driging Unit, all subject to the permn provisions contamed in Va Code 9 45.1-361 27 et seq, 8 4 VAC 25-150 ef seq., Gas and Oil Regulations and gg 4 VAC 25-160 et seq, VirginiaGas and Orl Board Regulations, ag as amended from time to time, and ag elections required by thrs Ordershall be communicated to Umt Operator in writing at the address shown below.

Range Resources-Pine INountain, Inc.406 West INaln StreetP. O. Box 2136

Page Nunlbez 5.

Page 10: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

Abingdon, VA 24212Phone: (276) 619-2583Fax:(276) 628-7246Attn: Philip S. Horn, Land 88anager

14. Commencement of Ooerations. Llnit Operator shall commence or cause to commenceoperations for the drilling of the welf covered hereby within seven hundred and thirly (730) days from thedate of this Order and shell prosecute the same with due diligence. If Umt Operator shall not have socommenced and/or prosecuted, then this Order shall terminate, except for any cash sums becomingpayabie hereunder; otherwise, unless sooner terminated by Order of the Board, this Order shall expire at12 00 P.M. on ihe date on which the well covered by this Order is permanently abandoned and pluggedHowever, in ihe event an appeal Is taken fram this Order, then the bme between the filing of the Petitionfor Appeal and the final Order of the Crrcwt Court shall be excluded m catculating the two-year penodreferenced herein

15. Ooerator's Lien Unit Operator, in addition to the other nghts afforded hereunder, shallhave a lien and a nght of sel off on the Gas estates, nghts, and interests owned by any person sub)scthereto who elects lo parbcipate under Paragraph 9.1 m the Sub)act Dribing Unit to the extent that castsincurred in the dnilrng or operation on the Sublect Dnging Umt are a charge agamst such person'interest Such irene and nght of set off shall be separable as to each separate person and shall remainliens until the Unit Operator dnlling or operating the well covered hereby has been paid the full amountsdue under the lerms of this Order.

16 Escrow Provisions Applicant has represented to the Board that there are no Unknownand/or Unlocatable Gas Owners within the Sub)act Dreling Umt whose interests are subject to tire escrowrequirements of Paragraph 16.1 of the Sublect Driqmg Umt; and, the Applicant has represented to iheBoard that there are no conflicting ctarmants m the Sub)act Drilling Unit whose payments are sub)act tothe provisions of Paragraph 16.2 hereof. Therefore, by this Order and unless and until otherease orderedby the Board, tire Escrow Agent named herein, or any successor named by the Board, is not required toestablish an interest-beanng escrow account for the Subject Drilling Unit (herein 'Escrow Account" ), andto raceme and account to the Board pursuant to its agreement for the escrowed funds hereafter descnbedin Paragraphs 16 1 and 16 2

First Bank and Trust CompanyTrust Division38 East Valley DriveBristol, Virginia 24281Tel: (276) 466-9222Attn: Debbie Davis

16,1 Escrow Provisions for Unknown or Unlocatable Persons If arly payment of bonus,royalty payment or other payment due and owing cannot be made because the personentitled thereto cannot be located or is unknown, then such cash bonus, royalty paymentor other payment shall not be commmgied with any funds of the Unit Operator and shall,pursuant lo Va Cade 5 45.1-361 21 D, be deposited by the Operator into the EscrowAccount, commencing within one hundred twenty (120) days of recording of this Order,and continuing thereafter on a monthly basis with each deposit to be made by a dalewhich is no later bran sixty (60) days after the last day of the mong being reported and/orfor which funds are subiect to deposit Such funds shall be held for the excluswe use of,and sole benefit of the person entitled thereto unbl such funds can be paid to suchperson(s) or until the Escrow Agent relinquishes such funds as required by law orpursuant to order of the Board in accordance with Va. Code 5 45.1-361.21D.

16.2 Escrow Provisions For Conflictino Claimants lf any payment of bonus, royalty payment,proceeds in excess of ongoing operational expenses, or other payment due and owingunder this Order cannot be made because the person entitled thereto cannot be made

Page Number 6.

Page 11: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

certain due to conflicting claims of ownership and/or a defect or cloud on the title, thensuch cash bonus royally payment, proceeds in excess of ongoing operational expenses,or other payment, together with Partrmpating Operator's Proportronate Costs paid to UnitOperator pursuant to Paragraph 9 I hereof, it any, (1) shafi not be commrngled with anyfunds of the Unit Operator, and (2) shalt, pursuant to Va Code H 45.1-361.22A 2, 45.1-361 22 A 3 snd 45.1-361.22A 4, be deposited by the Operator into the Escrow Accountwithin one hundred twenty (120) days of recordmg of this Order, and continuing thereafteron a monthly basis with each deposit to be made by a date which is no later than sixty(60) days after the last day of the month bemg reported and/or for which funds aresub!ect to deposit Such funds shall be held for Ihe exclusive use of, and sole benefit of,the person entitled thereto unbl such funds can be paid to such person(s) or until theEscrow Agent relinquishes such funds as required by law or pursuant to Order of theBoard

17 Soemal Fmdrnos. The Board spemficafiy and specially finds.

17 I Apphcent is Range Resources-Pine Mountain, Inc. Applicant is duly authonzed andqualified to transact business m the Commonwealth of Virgmia,

172

17.3

Applicant Range Resources-Pine Mountain, Inc. ts an operator in the Commonwealthof Virginia, and has satisfied the Board's reqwrements for operations m Virginia,

Applicant Range Resources-Pine Mountain, Inc. claims ownership of Gas leases on99.73%percent of Subject Dnfiing Unit and the nght to explore for, develop, and produceGas from same,

17.4

17.5

Applicant has proposed the drifimg ot Well No. V-530348 to a depth of 5,041 feet on thesubfem Dnfiing Un/t at the location depicted on Exhibit A to develop the pool of Gas in

Sublect Formations, and to complete and operate Well No. Vui30348 for the purpose ofprodumng Conventional Gas.

The estimated production of ihe life of the proposed Well No. V430346 is 500 mmcf

17.6

17.7

Wfih this Application, notice was provided to everyone claiming an ownership interestrelative to the production of convenbonal gas in the Subiect Drifiing Unit Set forth in

Exhibit B-3, is the name and last known address of each Owner or Claimant identified bythe Applicant ss Ges owners m Sub/ect Drilling Unrt who hes not, in writing, leased to theAppkcant or the Unit Operator or agreed to voluntaniy pool his lnlerests in sub)act DnilingUnit for its development Gas interests unleased to the Operator and lrsted in Exhibit B-3 represent 0.27% percent of Sub/ect Dnlkng Umt;

Appkcant's evidence established that the fair, reasonable and equitable cumpensabon tobe paid to any person in lieu of the nght to participate in the Wells are those optionsprovided rn Paragraph 9 above;

176

17.9

The Subiect Dnfiing Und does not constrtute an unreasonable or arbitrary exercise ofApplicant's nght to explore for or produce Gas;

The relief requested and granted is lust and reasonable, is supported by substantialevidence and will afford each person listed and named rn Exhibit 9-3 hereto theopportunsy to recover or receive, without unnecessary expense, such person's lust andfair share of the production from Sublect Dniling Unit. The granting of the Application andrehef requested therein mfi ensure to the extent possible the greatest ultimate recovery ofConventional Gas, prevent or assist in preventing the various types of waste prohibitedby statute and protect or assist rn protecting the correlative nghts of ail persons rn thesubject common sources of supply m the Sub/ect Lands. Therefore the Board is

Page Number 7.

Page 12: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

c . (pm

antenng an Order granting the relist herein set forth

18. Mailino Of Order And Filino Of Affidavit Applicant or its Attorney shall file an affidavit

with the Secretary of the Board within sixty (60) days after the date of recording of this Order stating thata true and correct copy of said Order was mailed within seven (7) days from the dale of its receipt by theUnit Operator to each Respondent named in Exhibit B-3 pooled by this Order and whose address isknown.

Ig Availabiiitv of Unit Records: The Director shall provide all persons not subject to a leasewith reasonable access to all records for Subiect Dnaing Unit which are submitted by the Unit Operator tosaid Director and/or his Inspector(s).

20. Conclusion Therefore, the requested relief and all terms and provisions set forth abovebe and hereby are granted and IT IS SO ORDERED.

21 A~sais Appeals of this Order are governed by the provisions of Va Code Ann g 45.1-361 9 which provides that any order or decision of the Board may be appealed to the appropriate circuitcou/t.

22 Effective Date This Order shall be effective as of the date ot the Board's approval of thisApplication, which is set forth at Paragraph I above

page Number 8.

Page 13: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

DONE AND EXECUTED this 26 day of August, 2013 by a majority of the Virginia Gas and OilBoard.

W/r-'c 5~ t

Chairman, Bradley C. Lambert

DONE AND PERFORMED this 26 day of August, 2013 by Order of the Virginia Gas and OilBoard.

6 r r"/

Rick CooperPrincipal Executive to thestaff, Virginia Gas and Oil Board

COMMONWEALTH OF VIRGINIACOUNTY OF RUSSELL

Acknowledged on this ~day of // JI.QZsrfr, ~personally before me a notary publicin and for the Commonwealth of Vlrginig/kppeared Bradley C. Lambeth being duly sworn diddepose and say that he is the Chairman of the Virginia Gas and Oil Board and appeared RickCooper, being duly sworn did depose and say that he is Principal Executive to the staff of theVirginia Gas and Oil Board, that they executed the same and was authorized to do so.

My Commission expires: September 30, 2013 nil lnrrrr0"otpi4E U oo"o

c . 0/sg= m i tlr000 430r .'y

rznaf Oa

'r. 4(THOFV'IIII u nil

Page 14: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

I Iree Coordrmies. (C oorophu HZ7)370J5775'825I07J8'

'10—3i

—3,)40~Latitude 37'2'0" T

hule u The sounder/ ines cho n farms are hosedon deeda plofs end mops of record nd do noldepict o cvrrenl bo ndon sorvey.

lane al L e

Surface Lne

ou

I

ccu

Eu

m

lrelr C ordmrlss. (VA SL Pl ne 5 Zon,Ina 63)N J56148302 5 1031283552

iced Coordnol 4 (VA Sl. Pl re 5 Zon,Nca 27 coevfafud rrom hna 83)N 28060934 E 82965l34

/ ~rQ4

Nole See Allo hml Tmcl0 m~ 6 fo motion Schedule

Note Zr Rrs weil ms be dndsd wifhn10'l lhe p milled coordoleles. +

1250'll

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I 9f 51II v-530346I

Qs I 2Js YL 1"

,*

//i

INeonwovd Fe msend Fund/

I ly, I.P - sudoce QJ

Qi

II

IIII

Welf elsn feo delermi ed by CPSeurmy fram NWN uonw ent P-424

nso Cosrd I sr (Cfnchrnfd Coal Co)S 23364 Js W 37.I289ZAmo ol unl = 112 69 Ac.

WELL LOCATION PLAT NORA GRID BP—14

COMPANY Ranae Resources-Pine Maunlain Inc WELL NAME AND NUNIBERM-530348TRACT NO ~ Sfaan rf ELEVATION 2708.1 I QUADRANGLE PnrsndCOUNTY IWsa DISTRICT~ville SCALE I" = 400'ATEM-07-2013This Plat is 0 new plat s; an updated plat; or a final location plat

+ Denotes the location of a well on United States lopographic Maps, scale I to24,000, latitude and longituds lines being represented "

Exhibit AForm DGO-GO-7

Page Number 10.

Page 15: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

'9 53(1340 PI.ATTRhCI'WNPIISBII'NI'4'H>IATIONR('Httlnt k

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'lptI. ndeR,I.L(7 ~ ~t «WIIRD, I.lt'.l)4 I-R II('Cmp 7.LL(-L ~ 9073514114A>( (Pl 9IIA I

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Page NDHDen 11.

Page 16: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

Exhibit aeaV-530345 Revised 7/1 5/2013

Treat LessorInterest Within Gross Acreage

Lease Status Unit in Unit

Gas Estate Only

1 Range Resources - Pine Mountain, Inc.

Attn. Jam/Grantham

PO Box 2136Abingdon, VA 24212

Owner 26.7500DDDD 30.14000000

2 Range Resources - Pine Mountain, Inc.

Attn: Jerry Grantham

PO Box 2136Abingdon, VA 24212

Owner 43.94000000 49.5100DDOO

3 Range Resources - Pine Mountain, Inc.

Attn: Jerry Grantham

PO Box 2136Abingdon, VA 24212

Owner 030000000 0.45000000

4 Daniel Kevin Riner

309 Oakwood Avenue, SEWise, VA 24293

Leased 0.06000000 0.07000000

Kerry Tyler niner897 Allison Road

Piney Flats, TN 37646

Leased 0.06000000 0.07000000

Tract 4 Totals

5 Daniel Kevin Rmer

309 Oakwood Avenue, SEWise, VA 24293

Leased

0.12000000 0.14000000

0.01000000 0.01000000

Kerry Tyler Riner

667 Allison RoadPinsy Flats, TN 37646

Leased 0.01000000 0.01000000

Treat 5 Totals 0.02000000 0.02000MO

Page Number 12.

Page 17: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

6 Daniel Kevin Rinsr

309 Oakwood Avenue, SEWise, VA 24293

Leased 12.72500000 14.34000000

Kerry Tyler Riner

667 Allison Road

Piney Flats, TN 37646

Leased 12.72500000 14.34000DOD

Tract 6 To'leis

7 Dennis Underwood, Sr.7140 Applatree Road

Wise, VA 24293-4842

Leased

25.45000000 28.68000000

0.29000000 0.33000000

8 Densen Kelly Collins Meade

9140 Gilbam School Road

Wise, VA 24293

Unleased 0.27000000 0.31000IMO

9 Charles D Riner

100 Anchor Point

Blountville, TN 37617

Leased 1.38000000 1.55500000

Judith Elaine Riner

PO Box 454Bristol, TN 37620

Leased 1.38000000 1.55500000

Tract 9 Totals

TOTAL GAS ESTATE

2.760000M 3.11000000

100.00000000 112.69000000

Percentage of Unit Leased

Percentage of Unit Unleased99.730000000.17000000

Acreage in Unit Leased

Acreage in Unit Unieased112.38000000

0.31000000

Page Number 13.

Page 18: Commonwealth of Virginia Sheet A - Dept of Mines Minerals ... · Grantors/Grantees/Pamel Continuation Form C Last Name IRiner ... Pa cel Identification No ... Commonwealth of Virginia

Exhibit "B-3"- Unieesed OwnersV-530345 Revised?/1 5/2013 K „.:u

10-'essorInterest Within Gross Aeres9sLease Status Unit in Unk

8 Densen Kelly Collins Mends

9140 Gilliam School Road

Wise, VA 24293

Gas Estate Only

Unleased 0.27000000 0.31000000

TOTAL GAS ESTATE 0.27000000 0.31000000

Page Number 14.