BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: EQ1 AGITABLE RESOURCESEX]'LORAT ION

RELIEF SOUGHT+ EXCEPTION TOSTATEWIDE SPACING

LEGAL DESCRIPT::ON:

WELL NUNS)Ht VP-2325PVRC TRAC'.) NO. T-1605WISE QUAD) UQfGLELIPPS NAG:;STERIAL DISTRICTWISE COUN'..'Y, VIRGINIA

) DIVISION OF) GAS AND OIL) DOCEET NO.) VGOB-92/03/17-20)))))))))

REPORT OF THE BOARD

FINDINGS AND ORDER

1. Heari:ia Date and place: This cause came on for hea..-ingbefore the Virginia Gas and Oil Board (hereinafter "Board" ) at i:00a.m. on Narch, 17, 1992, at the Virginia 4-8 Center, Abingilon,Virginia.

2. Anneaeances: Richard A. Counts, Attorney, appeared forthe Applicant, and Sandra B. Riggs, Assistant Attorney Gene .al,appeared for t)ie Board.

Notice and Jurisdiction: The Board iinds that iZ hasjurisdiction o rer the subject matter. The Board also finds hatthe applicant has exercised due diligence to locate and pre ridenotice to al] persons/companies entitled to notice of >isproceeding.

4. Relief Reauested: Applicant requests an excepti ) tostatewide spacing requirements set forth in Section 45.1-361.]< ofthe Code of Virginia for Well Number VP-2325. The Applii:antrequests the $>ard's consent to drill Well Number VP-2325 clc,~erthan 2640 feet to Well Number V-2343.

5. Amenchient: None.

6. Reasons Relief Should be Granted: Evidence presentsil onbehalf of 'the Applicant shows, and the Board finds, that baseil onthe deposition of the common sources of supply anticipated bet~ <en

surface and total depth projected to be drilled, the propoiiedlocation exception represents the optimum location to reca ercommercially prixiuctive hydrocarbons underlying the drilling ,hand

spacing unit.

A qua] ified landman testified that the location except .onwas necess4 ry to comply with an Environmental Impact States tntand Environmental Assessment conducted upon United Sta:esForest Serzice lands within the Jefferson National Poze <t.The landman also testified that the location exception <asnecessary due to environmental constraints, accommodaticr, ofother mineral interests and effective land managen >ntpractices.

A qeplified petroleum geologist testified that Aegranting o).'he location exception was in the best interei,1: ofpreventing waste, protecting correlative rights and maximic Lng

recovery o L'ydrocarbons underlying the drilling and spec Lng

unit.

7. Relief Granted: The requested relief in this cause bn and

hereby is grant % allowing the applicant to permit and drill )'111Number VP-232S 4ithin 2465.64 feet of Well Number V-2343.

8. Ipindincs: That the well location exception, in accorc<,1cewith the foreloing, is necessary to prevent waste, pret,actcorrelative rights and to generally effect the purposes of theVirginia Gas ani Oil Act.

Effect:.ve Date: This Order shall be effective on the elateof its executioa ~

10. Done and executed this 7 day of M~~ , 199', bya majority of the Virginia Gas and OX1 Board. 4

/211. none ond pertorned 9919 7 d y ot~Mw~ 199:, nyOrder of this Board.

P'IRGINIA

GAS AND OIL BOARII

ChairmanCj Benny Rimple>

DONE AND PERFO WEDBY ORDER OF TEL BOARD:

Byron Th~ lh Qae&Principal Exec<tive To The StaffVirginia Gas mid Oil Board

)

Acknowledc ed on this / day of / / l~ Li 92,personally befere ne a notary public in and for the Conaonweal C, ofVirginia, eppes red Benny Wanpler, being duly sworn did depos i andsay that he is ~irnan of the Virginia Gas and Oil Board, thi heexecuted the sane and was authorised to do so.

Diana J. Davis /Notary PublicMy cosaaission aspires 9/23/92

STATE OF VIRGIN %COONTY OF NASHXFGTON

so ~

in' iG<~ J.RDiane Davis

/'otaryPublicMy connission aspires 9/23/92

))

AcknowledyH on this day of 19'2,personally befog e ne a notary public in and for thS'Comonwealt t ofvirginia, appea3 ed Sassy Nasp) er being duly sworn did deposs tndsay that he is Principal Executive to the staff of the Virginia ~

'esand Oil Board, 1hat he executed the sane and was authorised ts do

Richar5 A. Counts

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