VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT:

RELIEF SOUGHT EXCEPTION TO STATEWIDE SPACINGLIMITATIONS PRESCRIBED BYVA. CODE g 45.1-361.17(a) (2)FOR WELL NO. 00M24

LEGAL DESCRIPTION:

DRILLING UNIT SERVED BYWELLNUMBERED jj(Qj'(4TO BE DRILLED IN THE LOCATIONDEPICTED ON EXHIBIT A HERETO,Wa Saarbr Puel CoraoraSon Tract12JI2TM Acres, more or lessH CRIER ANGLEIM3CK LICK~ICTBt~~553MSSTY. VIRQBSA(the "Subject Lends" ara more parficularly describedon Exhlblt "A", afiached hereto and made a part

hereof)

) VIRGINIA GAS) AND OIL BOARD

))) DOCKET NO.

) VGOB-424M47~)))))))))))))))))))

REPORT OF THE BOARD

FINDINGS AND ORDER

1. Haarino Date and Place: This matter came on for hearing before the Virginia Gasand Oil Board (herealter Board") at 0:00 am. on April 11, 2012 at the Russell CountyConference Center, Highland Drive, Lebanon, Virginia.

2. Aocearances: Tlmothv E Scott of MrdQanis SScott, appeared for the Applicant,

Jurisdiction and Ncttca: Pursuant to Va. Code Q 45.1-361.1et seq., the Board finds thatit has jurisdiction over the subject metier. Based upon the evidence pesentad byApplicanL the Board also finds that the Appficant has (1) exercised due difigence inconducfing a meaningful search of reasonably avafiable sources to determine the Idenfityand whereabouts of each gas and oil owner, coal owner, or mineral owner having aninterest in Subject Drtlfing Unit underlying and comprised of Subject Lands; and (2)represented to the Board that it has given nofice to those paNes (heieafiar sometimes"person(s)" whether refemng to Individuals, corporations, partnerships assochrfions,companies, businesses, trusts, joint ventures or other legal entifies) enfified by Va. Code5 45.1-361.19to nofice of this appficafion. Further, the Board has caused ncfice of thishearing to be published as required by Va. Code 5 45.1-361.19.B. Whereupon, theBoard hereby finds that the noficss given herein safisly all statutory requiremenls, Boardrule requirements and the minimum slandards of state due process.

4, Amendmsnte: None.

5. huniesals: None.

6. ReliefReoueetsd: Applhsnt requests sn excep5on to the etslawlde spacingNmNa5one eet forth in Va. Coda $ 45.1-361.17for WeH No. 000004.

Relhf Granted: The requested relief in this cause shall bs and hereby ie granted. TheBoard hereby grants Applhant consent to permit and drill proposed WaH Ne. 000054whhh Is 1PSO.OO fleet from exhHag RanHo WeH No. 000647 at the hca5on dephtedon ths Plat attached hereto as ExMblt A.

8. Soechl Findinos: The Board speeNcafiy and epecisfiy finds:

8.1 Applicant is Ranee Roose~lao MauatahL. Inc. Applhant is dulyauthorized and quslified to transact business in ths Commonwealth of Virginia;

8.2 AppNcant Ranee Rascurs~bts Nfiouatsla. Inc. is an operator in theCommonwealth of Vbgtnia and hae esthlhd the Board'e requimmente foropsrsfione in Virginia;

8.3 Applicant daime ownership of Convenfional Gae Leases of Subject Drlfiing Unitand the right to exphre for, devehp and produce Gae from Well No.~aswall as the right to participate snd devehp the reciprocal wells, being RangeW¹l No. 000647;

8.4 The proposed Wall No.~ ie heated on the Bla Sarutv Fuel C—=~Tract centat¹aa 12AN .$5 actus and the surface, coal, gas and ofi ownershave consented to the proposed hcsthn for Well No. +AD+4 that ie dephted onthe Plat attached herein as EuhHttt A;

8.5 The Applhant tasfified it hae the right to operate and pathfpste in thsdevelopment of the redprocal Range WoH No. 000647 and that the granting ofthe applhation ffied herein will not impact the correlative rights of any penron;

8.6 An excep5on to the well eptudng requirements of Va. Code $ 45.1-361.17forWell No. Qggg ie necessary to eNcienfiy drain a poNon of the commonsources of supply (reservoir) u derlying Subject Drilling Unit, and the Board'egranting of the requested localhn exoepfion ie in the best interest of preventingthe waste of ~ mfifion cubic feet of Convsnthnal Gae underlying the SubjectDrfiling Unit, and to generally elect ths purposes of the Virginia snd DN Act;

8.7 Applicant propoeee the drilling of Well No.~to a depth of~fs¹ on theSubject DrNNng Unit st the locsthn dephtsd on Exhibit A to produce afi theMississippian and Devonian Age formathne irxfudlng, but not limfisd to,RaverudHf, +gag, Wa Ume, ~ IEIEH and Devonian Skate, from surfaceto total depth drgled, gQg fest subject FormaNone");

8.8 AppHcant proposes to drHI WeH No.~a distance of~Ne¹ closerto exlsHng Range Well No. 000047 than the 2600 fest mandated bystatewide spa¹ng;

8.9 Applicant proposes to complete and operate Wall Na. $88024 for the purpose ofproducing Conventional Gas;

9. Conclusion: Therefore, the requested relief and all terms and provisions set forthabove be and hereby are granted and IT IS SO ORDERED.

10. Aooaals: Appeals of this Order are governed by the provisions of Va. Code Ann. jj48.1-381.9which provides that any order or decishn of the Board may be appealed tothe appropriate circuit court Such appeals must be baken in the manner p~ in

the Administrative Process Act, Va. Code Ann. 5 9-8.14:1 ef seq. and Rule 2A of theRules of the Virginia Supreme Court.

11. ~Date: This Order shall be~as of the date of the Board's approval of thisApplication, which is set forth at Paragraph 1 above.

DONE AND EXECUTED this JK day of A~, 2012, by a majority of theVirginia Gas and Oil Board

DONE AND PERFORMED this / j day of %i'm vro, 2012, by Order of this

Rfck Cooper /Principal Executive to the StaffVirginia Gas and Oil Board

STATE OF VIRGINIACOUNTY OF RUSSELL

~/Dn GW~~Diane J. Davis, hkStary174394

))

Acknowkrdged on this J0 day of (A~~, 2012, personally befons me anotary public in and for the Commonwealth of Virgj4fi, appeared Bradley C. Lambert, being duly sworndid depose and say that he is Chairman of the Virgta Gas and Oil Board, and appeared Rick Cooper,being duly sworn did depose and say that he is Princjpai Executive to the Staff of the Virginia Gas and OilSoard, that they executed the same and were authorized to do so.

My commission expires: September 30, 2013

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Exhibit "B"Well Location Exception

Well No. 000024

DEPTH-

Dickenson-Russell Coal CompanyMaxxim Shared Services, LLCAttn: Steve Smith5703 Crutchfield DriveNorton, VA 24273

5,660'LPHA

Land & Reserves, LLCAttn: Steve Smith5703 Crutchfield DriveNorton, VA 24273

WBRD LLCJohn Mooney5260 Irwin RoadHuntington, WV 25705-3247

AGIN LLCJohn Mooney5260lrwin RoadHuntington, WV 25705-3247

Clintwood Elkhorn Mining CompanyAttention: Dale DotsonP. O. Box 196Hurley, VA 24260

Bull Creek Coal Company, LLLPCharles HartBox 187Tazwell, VA 24651

Wellmore Coal Company, LLCAttn: Andy HrovaticP.O. Box 458Big Rock, VA 24603

Levisa Leasing, Inc.C/0 Mark Altlzer101 Hillside DriveAbingdon, VA 24210

Dixie J. Elswick362 Viking PlaceGreenvllle, TN 37745

Page 1 of1

Ntr8 C~ (~ hf27)J7.295587 -822S0JI8 Lrititude 3T 20'0

Mineral Line

Surface Line

IIII

I

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Note I: 1he bounatwy k'mss shown hereonon deeds, fvfbts ond maps of re'cord anddepict o current ~ survey.

blots 2: The wwr wfs be Ch'sed within 10the perrnftted ~NWI ekwation ~ by CPSsurvey from Ibtfffs kfonument P-S24

Neo Coordinates. (frff Sb Pkrne S. 2one,are based / hM0 8J)It J,651,959.69 E 10,595,218.21

Nfsb C~: (fof St. Ptrnb S. 2one,of Ql kM0 27~ sw Ietp 8J)

N J71,881.01 E 9122JJ.07Nstf C~: (CW'chfhfekf Coot Co.)

Area of tfnft I f269 vfc. kf 7tk425.08 E S 1,7SJ.J7

WELL LOCATION PLAT NORA GRID I-63

EXhlfbft AForm DGO-GO-7

COMPANY Ronne Resources —Pine Mountain. Inc. WELI NAME AND NUMBER %Mtt24TRACT NO, Efia Sanrfu Fuel Coro. ELEVATION 1.945.1I 'UADRANGLE fksrrnanCOUNTY ~ DISTRICT Rock Lick SCALE 1 = dtJI7 DATE 2 29-2012This Plat is a new plat ~; an updated Pat; or a final location plat

+ Denotes the location of a wiell on United Stotes topographic Maps, scale I to24;000, latitude and longitude lines being represented by border lines as shown.

-." Licensed Lond Surveyor

900024 PlatTRACT OWNERSHIP INPORMATION SCHEDIJLE

3/2)2012

I . Big Sandy Fuel Corporation12,627.34 AcresACIN LLC - coal

Alpha Lend R Reserves LLC - coal lessee

WBRD LLC - crud

Dickenson-Russell Coal Company LLC - coal lessee

Levisa Leasing, Inc. - coal lesseeWelmore Coal Company - coal lessee

Range Rcsourccs-Pine Mountain, Inc. - oil dt gssGas 25.40 Ac. 22.61'Yo

2 . Big Sandy Fuel Corporation12,627.34 AcresACIN LLC - coal (except Clintwood seam)

Alpha Land rk Rcservca LLC - coal lessee

WBRD LLC - coal (except Clintwood scam)Dickenson-Russell Coal Company LLC - coal lessee

Penn Virginia Operating Company - coal (Clintwood faun only)Levies Leasing Inc. - coal lessee

Wclmore Coal Company - coal lessee

Range csourcewPine Mountain, Inc. - oil gr gssGss 76.16 Ac. 67.5856

3 . Lame No. 14)63760Dixie Elswick - surface, oil rk gas57 AcresGas 11.05 Ac. 9.81'Yo