VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: Ranae Resources+los Mountain. Inc.

RELIEF SOUGHT EXCEPTION TO STATEWIDE SPACINGLIMITATIONS PRESCRIBED BYVA. CODE g 45.1-35211(a) (2)FOR WELL NO. 900125

LEGAL DESCRIPTION:

DRILLING UNIT SERVED BYWELLNUMBERED ~900 2TO BE DRILLED IN THE LOCATIONDEPICTED ON EXHIBIT A HERETO,Joseoh Hall Tract343.13acres, more or lessELK HORN CITY QUADRANGLESANDUCKDISTRICTDICKENSON COUNTY. VIRGINIA(the "Subject Lands" are more particularly describedon Exhibit "A", attached hereto and made a part

hereof)

) VIRGINIA GAS) AND OIL BOARD

))) DOCKET NO.

) VGOB-12-10164092)))))))))))))))))))

3.

REPORT OF THE BOARD

FINDINGS AND ORDER

Hsarinc Dais and Phce: This matter cams on for hearing before ths Virginia Gasand Oil Board (hereafter "Board") at 9:00 s.m. on October 16, 2012 and continued toDecember 19, 2012 at the Russell County Conference Center, Highland Drive, Lebanon,Virginia.

Aoosarances: Tlmothv E. Scott of McKinnbr 5 Scott. appeared for the Applicant.

Jurisdiction and Notice; Pursuant to Va. Code Q 45.1-361.1et seq., the Board Snds thatit has jurisdiction over ths subject mager. Based upon the evidence presented byApplicant, ths Board also 5nds that the Applicant has (1) exercised due diligence inconducting a meaningful search of reasonably svailsbls sources to determine ths identityand whereabouts of each gas and oil owner, coal owner, or mineral owner having aninterest In Subject Drilling Unit underlying and comprised of Subject Lands; and (2)represented to the Board that it has given notice to those parbes (hereafter sometimes"person(s)" whether referring to individuals, corporations, partnerships associations,companies, businesses, trusts, joint ventures or other legal entiges) sobbed by Va. Code5 45.1-361.19to notice of this application. Further, the Board has caused nogce of thishearing to bs published as required by Va. Code 5 W.1-361.19.B. Whemupon, the

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Board hereby finds that the notices given herein satisfy all statutory requirements, Boardrule requirements and the minimum standards of state due process.

4. Amendments: None.

5. Dismissals: None.

8. Relief Recuested: Applicant requesls an exception to ths statewide spacinglimitations set forth in Va. Cods g 45.1-351.17for Well No. $00125.

Relief Granted: The requested relief in this cause sha$ be and hereby is granted. TheBoard hereby grants Applicant consent to permit and drill proposed Well No. 000125which ls 2,000 feet from Range Well No. 000760 at the location depicted on ths Platattached hereto as Exhibit A.

Soecial Findinos: The Board specifically and specially finds:

8.1 Applicant is Ranee Resources-Pine Slountsln. Inc. Applicant is dulyaulhonzed and qualified to transact business in the Commonwealth of Virginia;

8.2 Applicant Rance Resources-Pine Mountain. Inc. is an operator in theCommonwealth of Virginia and has satisfied the Board's requirements foroperations in Virginia;

8.3 Applicant claims ownership of Conventional Gas Leases of Subject Drilling Unitand the right to exphrs for, develop and produce Gas from Well No. SII128 aswe8 as the right to participate and develop the reciprocal well, being Range WellNo. 800760.

8.4 The proposed Well No. ji00125 is located on the Joseoh Hall Tract containlnn343.13acres and the surface, coal, gas and oil owners have consented to theproposed location for Well No. ~025 that is depicted on the Plat attachedhereto as Exhibit A;

8.5 The Applicant testified it has the right to operate and participate in thedevelopment of the rsdprocal Range Well No. 800T60 and that the granting ofthe applica0on filed herein will not impact the correlative rights of any person;

8.5 An exception to the well spacing requirements of Va. Code g 45.1-381.17forWell No. ~M01 is necessary to ef8ciently drain a portion of the commonsources of supply (reservoir) underlying Subject Drilling Unit, and the Board'sgranting of ths requested location exception is in the best interest of preventingthe waste of Qp million cubic feet of Conventional Gas underlying the SubjectDrilling Unit, and to generally effect the purposes of the Virginia and Oil Act;

8.7 Applicant proposes the drilling of Well No. 809125 to a depth of~feet on theSubject Drilling Unit at the location depicted on Exhibit A to produce sll theMississippian and Devonian Age formations including, but not limited to,Ravencllff, ~M Bhr Ume, Weir, ~Ba and Devonian Shale, from surfaceto total depth drilled, ~542 fest ("Subject Formations');

8.8 Applicant proposes to drill Well No. $0015 a distance of 431 fest doser toRange Well No. 800760 than the 2500 feet mandated by statewide spacing;

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8.9 Applicant proposes to complete and operate Well No. 000125 for the purpose ofproducing Conventional Gss;

9, Condusion: Therefore, the requested relief and ail tems and provisions set forthshove be and hereby ars granted and IT IS SO ORDERED.

10. ~: Appeals of this Order are governed by the provisions of Va. Code Ann. 045.1-361.9which provides that any order or decision of the Board msy be appealed tothe appropriate circuit court. Such appeals must be taken in the manner prescrtbed inthe Administrative Process Act, Va. Code Ann. 0 9-0.14:1 st ssq. and Rule 2A of thsRules of the Virginia Supreme Court.

11. Effective Date: This Order shall bs effective as of the date of ths Board's approval of thisApplhstion, which is set forth at Paragraph 1 above.

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DONE AND EXECUTED this 9 day of January, 2013 by a majority of the Virginia Gas and OilBoard.

Chairman, Bradley C. Lambert

DONE AND PERFORMED this 9 day of January, 2013 by Order of the Virginia Gas and OilBoard.

Rick CooperPrincipal Executive to thestaff, Virginia Gas and Oil Board

COMMONWEALTH OF VIRGINIACOUNTY OF RUSSEL)

c~ y 2pMAcknowledged on thisg day of ~~ personally before me s notary publicin and for the Commonwealth of IAijjl jhia, appeared'Bracgey C. Lambert, being duly sworn diddepose and say that he is the C n of the Virginia Gas and Oil Board and appeared RhkCooper, being duly swam did depose and say thai he is Prjncilnrl Executhre to the staff of theVirginia Gas and Oil Board, that they executed the same and wss authorized to do so,

174394

My Commission expires: September 30, 2013

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-Set Coordinalest (Ceogrophic IV27)37.265467 -82300710'2615~

Latitude 3T 17'0"Mineral Line

Surface Line

cttb

cri

ct

T. h: ColeyI~82,46 Acres

ACIN LI,C —coalAlpha Lend tk Resenek LLC —coal lesseeW8RD LLC —coolDfckenscn-Russet Cool Company LLC —coal lessee1250'RRange Resources-Pine Mountakr, ktc. —ruT tk gasDas 28.78 Ac. 23.77$

ao

llyre

tJoseph Holi I 'I

!343.IJ Acres 1

ACIN LLC —cool lAgtha Land 8 Reserves LLC —coal lessee \WSRD LIC —coolDickenson-Russell Cool Company LLC —coal lessee

l'angeResources-Pine klountain, Inc. —oil 8 gasCas 45.72 Ac. 40.578

!900125

tland Fvnd IV, LP.

2

Ifeortwaad Forestland Fund hr, Lp. —surface

vr

Nenrdith grilts

hite Ir Tlw baundory lines shown hereon basedon deeds, plots ond maps of record and do ndruv'ct o current boundary survey.

Note 2 The wet will be drilled within 10'fthe permitted coordinates.

Wet ek.va6on determined by CPSsuney from IIARN'onument P-424

WELL LOCATION PLAT NORA GRID P—52

274 60 AcrtrsADIN LLC —coalAlpha Lond 8 Reserves LLC —cool lesseeifSRD LLC —coalDickenson-Russrdi Cool Company LLC —coal krsseeRonge ResourcesLRne ktountain, Inc. — oil tk gosaos 40 19 Ac. 35.66$

NWl Coordinoles: (VA St. Plone S Zone,vv w)N 3,642,5II.I6 E 10,377.254.81

SWI Coorrk'notee (YA St. Rane S. Zone,NAD 27 Cakukrted fmm IVAD 83)N J61,63276 E 894270 07well coortgnatesr (ckhchteld cool ca)

Area of unit = 112.6'9 Ac, N 6D,268.82 E 24, 128.26

COMPANY Ronde Resources-Pine ktountain. Inc. WELL NAMF AND NUMDER 900125TRACT NO Joseah Hall ELEVATION 1.906.45'UADRANGLE Ellr Harn CilvCOUNTY Dicknnvnn DISTRICT Sandlick SCALE I = 400 DATE 9-12—2012This Plat is a new plat v; an updated plat '; or a final location plat

+ Denotes the location af a well on United States topographic Maps, scale 1.to24,DDD, latitude and longitude lines being iepresented by border lines as

Exh>b>t AtL:----Q o c t t c. t

'Ucensed Land Surveyor

Form DGO —GO —7

Page Number 5.

Exhibit "B"WLE Well tto. 900125

DEPTH-

5'425'lckenson-Russell

Coal CompanyMaxxim Shared Services, LLCAttn: Steve Smith5703 Crutchlield Drive

Norton, VA 24273

ALPHA Land & Reserves, LLCAttn: Steve Smith5703 Crutchfleld Drive

Norton, VA 24273

WBRD LLCJohn Mooney5260 Irwin RoadHuntington, WV 25705-3247

ACIN LLCJohn Mooney5260Irwin RoadHuntington, WV 25705-3247

KS Colley HeirsUnknown

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