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BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD FIELD I RULES AFFECTED UNITS: H27 & H28 DIVISION OF GAS AND OIL DOCKET NO. VGOB 93-0216-0325-25 APPLICATION 1. Annlicant and its counsel: Applicant is CNX Gas Company LLC, 2481 John Nash Blvd. Bluefield, West Virginia, 24701. Applicant's Counsel is Mark A. Swartz, 601 Sixth Avenue, Suite 201, St. Albans, WV 25177-1808. 2. Relief sousht: (1) Modification of the Oakwood Field 1 Rules, OGCB 3-90 as amended, to allow a second coalbed methane gas well to be drilled within each of the 80 acre Oakwood Units identified above. (2) For an administrative order providing that additional well permits may be issued in the Oakwood Field atter this application is filed and while it is pending. 3. Lesal authoritv: 4 VAC 25-160-50 and rs 45.1-361.20of the Code of Virginia. 4. Proposed nrovisions of order souuht: That a second coalbed methane gas well may be drilled in each of the above referenced Oakwood I Units if same is located within the drilling windows of said units and is at least 600 feet from any other coalbed methane gas well; and that production/royalties from each coalbed methane gas well drilled in the said Units shall continue to be allocated solely to the owners and claimants of and to the coalbed methane within the Unit in which the well(s) is located. 5. Tvne of wells and field: Coalbed methane frac wells within the portion of the Oakwood 1 Field described above. 6. Formations subiect to annlication: All coal beds and coal seams below the Tiller seam down to the red and green shales. See Oakwood Field I Rules OGCB 3-90, as amended. 7. Plat: See Exhibit Al annexed hereto. 8. The boundaries and acrease affected: See Exhibit Al annexed hereto. 9. Attestation: The foregoing application to the best of my knowledge, information and belief is true and correct. CNX G ompany C, Ap 't An . Duty Pooling upprvisor 2481 JohMnash Blvd. Bluefield, WV 24701 Page Number 1.

BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

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Page 1: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

BEFORE THK VIRGINIA CAS AND OIL BOARD

APPLICANT: CNX Gas Company LLC

RELIEF SOUGHT: MODIFICATION OFOAKWOOD FIELD I RULES

AFFECTED UNITS: H27 & H28

DIVISION OF GAS AND OILDOCKET NO. VGOB 93-0216-0325-25

APPLICATION

1. Annlicant and its counsel: Applicant is CNX Gas Company LLC, 2481 John Nash Blvd.Bluefield, West Virginia, 24701. Applicant's Counsel is Mark A. Swartz, 601 Sixth Avenue, Suite 201, St.Albans, WV 25177-1808.

2. Relief sousht: (1) Modification of the Oakwood Field 1 Rules, OGCB 3-90 as amended, toallow a second coalbed methane gas well to be drilled within each of the 80 acre Oakwood Units identifiedabove. (2) For an administrative order providing that additional well permits may be issued in theOakwood Field atter this application is filed and while it is pending.

3. Lesal authoritv: 4 VAC 25-160-50 and rs 45.1-361.20of the Code of Virginia.

4. Proposed nrovisions of order souuht: That a second coalbed methane gas well may bedrilled in each of the above referenced Oakwood I Units if same is located within the drilling windows ofsaid units and is at least 600 feet from any other coalbed methane gas well; and that production/royaltiesfrom each coalbed methane gas well drilled in the said Units shall continue to be allocated solely to theowners and claimants of and to the coalbed methane within the Unit in which the well(s) is located.

5. Tvne of wells and field: Coalbed methane frac wells within the portion of the Oakwood 1

Field described above.

6. Formations subiect to annlication: All coal beds and coal seams below the Tiller seamdown to the red and green shales. See Oakwood Field I Rules OGCB 3-90, as amended.

7. Plat: See Exhibit Al annexed hereto.

8. The boundaries and acrease affected: See Exhibit Al annexed hereto.

9. Attestation: The foregoing application to the best of my knowledge, information and beliefis true and correct.

CNX G ompany C, Ap 't

An .DutyPooling upprvisor2481 JohMnash Blvd.Bluefield, WV 24701

Page Number 1.

Page 2: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: CNX Gas Company LLC

RELIEF SOUGHT: MODIFICATION OFOAKWOOD I FIELD RULES

AFFECTED UNITS: H27 Sr H28

DIVISION OF GAS AND OILDOCKET NO. VGOB 93-0216-0325-25

NOTICE OF HEARING

HEARING DATE:PLACE:

TIME:

COMMONWEALTH OF VIRGINIA:

August 19, 2014Russell County Conference Center135 Highlands DriveLebanon, Virginia 242669:00 AM

To: Slocum Land Corporation, CL. Ritter Lumber Company, Consol Buchanan Mining

Company LLC, Plum Creek Timberlands, Yukon Pocahontas Coal Company, Buchanan Coal

Company, Sayers-Pocahontas Coal Company, It/orfolk Southern Railway Company, HighlandResources, Inc./It/orth American Resources Corporation, Hard Rock Exploration and Carter Oil

di Gas, EOG Resources, Inc.

1. Anulicant and its counsel: Applicant is CNX Gas Company LLC, 2481 John Nash

Blvd. Bluefield, West Virginia, 24701. Applicant's Counsel is Mark A. Swartz, 601 SixthAvenue, Suite 201, St. Albans, WV 25177-1808.

2. Relief sought: (I) Modification of the Oakwood I Field Rules, OGCB 3-90 as

amended, to allow a second coalbed methane gas well to be drilled within each of the 80 acreOakwood Units identified above. (2) For an administrative order providing that additional well

permits maybe issued in the Oakwood Field after this application is filed and while it is pending.

3. Legal authoritv: 4 VAC 25-160-50 and II 45.1-361.20of the Code of Virginia.

4. Prouosed urovisions of order sought: That a second coalbed methane gas well maybe drilled in each of the above referenced Oakwood I Units if same is located within the drilling

windows of said units and at least 600 feet from any other coalbed methane well; and that

production/royalties from each coalbed methane well drilled in the said Units shall continue to beallocated solely to the owners and claimants of and to the coalbed methane within the Unit in

which the well(s) is located.

5. Tvue of wells and field: Combed methane frac wells within the portion of theOakwood I Field described above.

6. Formations subiect to anulication: All coal beds and coal seams below the Tillerseam down to the red and green shales. See Oakwood I Field Rules OGCB 3-90, as amended.

7. Descriution of interest/claim of nersons being notified: Coalbed methane.

Page Number 2.

Page 3: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

VGOB 93-0216-0325-25Page 2 of 2

8. Estimated reserves in each Oakwood Unit identified above: 125 to 550 MMCF.

9. Plat: See Exhibit Al annexed hereto.

The boundaries and acreage affected:

Oakwood Unit H272Beginning at a point, Virginia State Plane NAD 27 coordinate ofN:353622.410 E993682.260feet to a point; S:87'51'45"E 1867.27 feet to a point; S:02'06'18"W 1870.76 feet to a point;S:87'51'40"E 1867.35 feet to a point; S:02'06'27" W 1870.71 feet to a point of beginning,containing +/- 80.00 acres.

Oakwood Unit H28:Beginning at a point, Virginia State Plane NAD 27 coordinate of N:353552.770 E995548.220feet to a point; N87'51'45" W 1866.78 feet to a point; N02'06'l l" E 1870.81 feet to a point;S87'51'40" E 1866.84 feet to a point; S02'06'18" W 1870.76 feet to a point ofbeginning,containing +/- 80.00 acres.

10. Attestation: The foregoing notice to the best of my knowledge, information and

belief is true and correct.

NOTICE IS FURTHER GIVEN that this cause has been set for hearing and the takingof evidence at the time and place first stated above and that notice will be published as required

by law and the Rules of the Virginia Gas and Oil Board.

NOTICE IS FURTHER GIVEN that you may attend this hearing, with or without an

attorney, and offer evidence or state any comments you have. For further information or a copyof the application and any exhibits thereto, you may contact the Virginia Gas and Oil Board,State Oil and Gas Inspector, Department of Mines, Minerals and Energy, Division of Gas and

Oil, P. O. Box 159, Lebanon, Virginia 24266, 276/415-9650 or the Applicant at the address

shown below.

CNX Gas Company LL, pplicant

., ~.DAnitaa). DutyPoolin~Servisor2481 John Nash Blvd.Bluefield, WV 24701

Page Number 3.

Page 4: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

BUCHANAN COUNTY

VA

~ D

Q<eE

>.-C

24 25 26 27 28 29 30 31 32

EXHIBIT A1

OAK%ODD IIVI" ILL '5VGQB-93-0216-0325-25

Page Number 4.

Page 5: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

CNX Gas Company LLCUNIT H27

Tract Identifications

Slocum Land Corporation, et al (604.50 Acre Tract) —CoalIsland Creek Coal Company —Coal Below Tiller Seam LeasedJewell Smokeless Coal Corporation —Coal Above Drainage Seam LeasedHighland Resources, Inc./North American Resources Corporation, et al —Oil and GasEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfacePlum Creek Timberland (1/5) —CBMCNX Gas Company LLC —CBM LeasedCNX Gas Company LLC (50%)/Island Creek Coal Company (50%) —Surface55.02 Acres 68.7750%

2A. C. L. Ritter Lumber Company Tr. 26 (163.35Acre Tract) - All MineralsIsland Creek Coal Company —Coal Below Tiller Except P3 Seam LeasedIsland Creek Coal Company —P3 Seam of Coal LeasedJewell Smokeless Coal Corporation —Coal ln Tiller Seam and Above LeasedHard Rock Exploration and Carter Oil & Gas - Oil and Gas LeasedCNX Gas Company LLC —CBM LeasedUnknown Surface Owner12.45Acres 15.5625%

2B. C. L. Ritter Lumber Company Tr. 26 (163.35Acre Tract) - All MineralsIsland Creek Coal Company —Coal Below Tiller Except P3 Seam LeasedIsland Creek Coal Company —P3 Seam of Coal LeasedJewell Smokeless Coal Corporation —Coal In Tiller Seam and Above LeasedEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfaceCNX Gas Company LLC —CBM LeasedUnknown Surface Owner9.45 Acres 11.8125%

Consol Buchanan Mining Company LLC, et al Big Vein Tr. 42 (97.21 Acre Tract) —CoalIsland Creek Coal Company —Coal Below Tiller Seam LeasedJewell Smokeless Coal Corporation —Coal in Tiller and Above LeasedHighland Resources, Inc./North American Resources Corporation, et al —Oil and GasEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfacePlum Creek Timberland (1/3) - CBMCNX Gas Company LLC - CBM LeasedUnknown Surface Owner2.93 Acres 3.6625%

Norfolk Southern Railway Company —Fee except Coal Below 800 FeetConsol Buchanan Mining Company LLC, et al —Coal Below 800 FeetIsland Creek Coal Company - Coal Below 800 Feet LeasedEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfaceCNX Gas Company LLC —CBM Leased0.15Acres 0.1875%

"This title block is for general informational purposes only and does not reflect an analysis of the severancedeed and its effect upon coal bed methane ownership and should not be relied upon for such purpose."

Page 1 of 1

July 15, 2014

Page Number 5.

Page 6: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

CNX Gas Company LLCUNIT H28

Tract Identifications

Consol Buchanan Mining Company LLC (923.83Acre Tract) —CoalIsland Creek Coal Company —Coal Below Tiller Seam LeasedJewell Smokeless Coal Corporation —Coal in Tiller and Above LeasedHighland Resources, Inc./North American Resources Corporation —Oil and GasEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfacePlum Creek Timberland - CBMCNX Gas Company LLC —CBM LeasedCNX Gas Company LLC (50%)/island Creek Coal Company (50%) —Surface39.36Acres 49.2000%

C. L. Ritter Lumber Company Tr.27 (885 Acre Tract) —FeeIsland Creek Coal Company —Coal Below Tiller Except P3 Seam LeasedIsland Creek Coal Company —P3 Seam of Coal LeasedJewell Smokeless Coal Corporation —Coal ln Tiller Seam and Above LeasedEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfaceCNX Gas Company LLC —CBM Leased0.50 Acres 0.6250%

Consol Buchanan Mining Company LLC, et al Big Vein Tr. 42 (97.21 Acre Tract) —CoalIsland Creek Coal Company —Coal Below Tiller Seam LeasedJewell Smokeless Coal Corporation —Coal in Tiller and Above LeasedHighland Resources, Inc./North American Resources Corporation, et al —Oil and GasEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfacePlum Creek Timberland (1/3) - CBMCNX Gas Company LLC - CBM LeasedUnknown Surface Owner20.60 Acres

Consol Buchanan Mining Company LLC, et al Big Vein Tr. 15 (78.16Acre Tract) —CoalIsland Creek Coal Company —Coal Below Tiller Seam LeasedJewell Smokeless Coal Corporation —Coal in Tiller and Above LeasedHighland Resources, Inc./North American Resources Corporation, et al —Oil and GasEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfacePlum Creek Timberland (1/3) —CBMCNX Gas Company LLC - CBM LeasedUnknown Surface Owner12.04 Acres

Slocum Land Corporation, et al (604.50 Acre Tract) —CoalIsland Creek Coal Company —Coal Below Tiller Seam LeasedJewell Smokeless Coal Corporation —Coal Above Drainage Seam LeasedHighland Resources, Inc./North American Resources Corporation, et al —Oil and GasEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfacePlum Creek Timberland (1/5) —CBMCNX Gas Company LLC —CBM LeasedCNX Gas Company LLC (50%)/Island Creek Coal Company (50%) —Surface2.31 Acres 2.8875%

"This title block is for gener at informational purposes only and does not reflect an analysis oW the severancedeed and its effect upon coal bed methane ownership and should not be relied upon for such purpose."

Page 1 of 2July 15, 2014

Page Number 6.

Page 7: BEFORE - Virginia Department of Mines, Minerals & Energy · 2014-08-25 · BEFORE THK VIRGINIA CAS AND OIL BOARD APPLICANT: CNX Gas Company LLC RELIEF SOUGHT: MODIFICATION OF OAKWOOD

CNX Gas Company LLCUNIT H28

Tract Identifications

Norfolk Southern Railway Company —Fee except Coal Below 800 FeetConsol Buchanan Mining Company LLC, et al —Coal Below 800 FeetIsland Creek Coal Company - Coal Below 800 Feet LeasedEOG Resources, Inc. —Oil and Gas Leased 5303 Feet Below SurfaceCNX Gas Company LLC —CBM Leased5.19Acres 6.4875%

"This title block is for general informational purposes only and does not reflect an analysis of the severancedeed and its effect upon coal bed methane ownership and should not be relied upon for such purpose."

Page 2 of 2July 15, 2014

Page Number 7.