VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

RELIEF SOUGHT EXCEPTION TO STAVSWISE SPACINGLIMITATIONS PRESCRIBED BYVA. CODE $ 45.1-351.17 (a}(2)FOR WSLL Stfk V~

LEGAL DESCRIPTION:

DRILLING UNIT BERVED BY WELLNUMBERED V~TOBE t)gtILLED IN THE LOCATIONDEPICTED ON 55SSSITA HERETO,Sl.l. X5 ttasttf$ 4$$5Tract

=ebtjNTY, VStt$SSA(gte "5jSjset Lenda" are more partlcuhtrly ~on SatdSS "A",eBached hereto and made a parthereof}

) VIRGINIA GAB

) AND OIL BOARD

))) DOCKET NO.

VSv

)))))))))))))))))))

REPORT OF THE BOARD

FINDINGB AND ORDER

1. Hearino Date and Puree: This maaer came on for hearing before the Viqpnia Gasand ON Board (hereAw "Board") at 8:gg a.m. on ~ 1$.$$$$.~t VirtjinisIggher Education Center, Campus of Vlgtnla Highlands Corenunlty Ccgsge, Abtngdon,Vbginia.

Aooemamas: Tbaetbv S.Saett ef MstSnrde a SeetL appeared for the Applicant.

3. turlsrgcacn and Nodce: Pursuant to Va. Code Q 45.1-351.1st serf.. the Board finds IhatIt has jurtscgcdon over the subject medor. Based upon the evidence pesentsd. 'byAppacant, der Board tdso finds that the Applicant has (1)~ due dSSenctj in

conducthg a meaningful search of reasonably evagable sources to determine the Ider}gtyand whereabouts of each gas and oil owner, coal owner, or minsnd owner htndng, aninterest in Subject Dr@ing Unit dncertybtg and comprised of Subject Lands; and'(2)represented to the Board that it has given notice to those parties (~someShss"person(s)" whedler ndbning to Indlvhhrels, corporedons, pertnenrhlps assaglagdns,companies, bsshtesses, trusts, joint ventures or other legal entSes) engged by Va. Cfshrjj 45.1-351.19to nodoe of this appgcadon. Further, the Board has caused notice of this

hearing to be published as requked by Va. Code I 45.1-361.19.S. Whereupon, thesoerd hereby finds that the notbes given herein satisfy sN statutory requirements, Soardrule requlrwnents and the minimum standards of slate due process.

4. RelnfRaauashsd: Applbant requests an exception to the ststewkb spfrrHng

limlslbns set forth in Va. Code $ 45.1-361.17 for Hgeg Ne. V~.Relaf Granted: The requested relief in this cause shall be snd hereby is grtmled. Thesoard hereby granle Applicant consent to permit snd drill proposed ~Ra..vf4'eet fram exlelng EquHabb Gss WeN No. ~ Qgg feet fram exlsgng EquIbbbGss'wel iNa. g~~ ~fest Num exislng Range Resource+Dna HHauntsih, Inc. GasWel No. tASNK feet fram exbHng Equlable Gae WeN No. ~ and ~feet fram eaiegng Equlable Gas Well No. ~1 st the lacsNon depbbd on the| Plataiteched hereto as EIOOSS A.

8. Soeskd fhdbas: The Saard specIHcaly and specialy Hnds:

6.1 Applcant is Senna —=——, HHnnneNn. Inc. AppNcant is dWyauthorized and quaHHed ta transact business In the CommonweaNh of Virglnle;

6.2 Applcant Nanna --—---- = Raas8sln. Ino. Is an opersbr in lheCommorwweelth of Vlrginb and has s'aleHed Our Basal's requkemenN foroperslons in Virginia;

6.3 AHtplcant cbtms awnership of Conventional Gas Leases of Subject Drglng Unit

and the right tO eXpbre fdr, desebp and preduCe Gae fram WeN Na. V~'nn,as well as the right to paNcipsb and devebp the erdpracN wale, btdng INRO No.~,Wel No.~Well No. V~1,Well No. ~, snd WeN No. ~1,;

8.4 The proposed Well No. V-swum is bested on the W L J.~~Txsnt T~ and the SuriHXXr, Cael, gee Snd Ol OWnare haVS Cahsarjiad g the

locsHan for Wel No. V~ Ourt is depblsd on the PNO agalhedhereto as Hbddbg A;

8.5 The Applbant testiHed it has the right to operate and psrtkdpals in lhedevelopment cf the xdprocal weNe ~Qg V4SNI. ~ and 1,and that the grsntbg of the applbslke fNed herein wll not impact therighis of any person;

6.6 An exaeplon to the weN spaalng requiremenb of Va. Code g 45.1461.1lt forWell No. V~ ls eeessary to~ drah s portbn of the camjnonsources of supply (raeervol) underlying Subject DrNlng Unit, and Sadrd'sgrsnlng of the raquNebd banian exceptlan ls in the best Internet af gOte waste of ~ mHHon cubb fest of Conventbnal Gss undsrlykHH Ole SuDrlling Unit, Snd to~egect the purposes af the Vkgbb and Oil Act;

8.7 AppNcant proposes the drging of WeN No.~ta a dtqdh of~feet onIhe Subject DrilHng Unit st Ihe localan depbbd on Exhibit A to produce al'heivleelsslpplan and Devonbn Age fonnslons including. but nat Iknledi to,Hlaxntnrgff, ~Sha Usss. ~ QOSHHI and Dsvanlan Shale. fram surjscetotalaidepthdrljsd,5@5'feet 'rxmslons);

8.8 AppNcant proposes ia drll Well No. V-nsnsnn a distance of ~ Neet cbeer taexblng Equitable Gas WeN ~ a distance of ~ feet cbser to Extsgng

Equitable Gas Well ~P-. a distance of ggg feet closer to exisbng Range

Resources-Pine Mountain, Inc. Gas Well V4160061; a distance of QQ feet doserto existing Equitable Gas Well ~; and a distance of giQ feet doser to existingEquitable Gas Well ~PAT, than the 2,500 feet mandated by statewide spacing;

6.9 Applicant proposes to complete and operate Weil No. V~ for the purposeof producing Conventional Gas;

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

Aooeals: Appeals of this Order are governed by the provisions of Va. Code Ann. $45.1-361.9which provides that any order or decitdon of the Board may be appealed tothe appropriate circuit court. Such appeals must be taken in the manner preecribed in

the Administrative Process Act, Va. Code Ann. $ 9-6.14:1 ef seq. and Rule 2A of theRules of the Virginia Supreme Court.

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

DONE AND EXECUTED this ~5 day of ~~, 2008, by a majority of theVirginia Gas and Oil Board.

DONE AND PERFORMED THIS~ day of Q cJl VBoard

Virginia Gas and Oil Board

STATE OF VIRGINIACOUNTY OF WASHINGTON

Acknowledged on this ~+ day o6 HM, 2OOS, personallybefore me a notary public in and for the/goamonfsealth of Virginia,appeared Benny R. Wampler, being duly swornVdid depose and say that heis Chairman of the Virginia Gas and Oil Board, and appeared David E.Asbury, Jr. being duly sworn did depose and say that he is ActingPrincipal Executive toe the Staff of the Virginia Gas and Oil Boardthat they executed the same and were authorized to do so.

Diane J. Davis, No174394

My commission expires: September 30, 2009

Aroo ot IAot ~ IIZ.SS Ao.

WELL LOCATION PLAT

See.~:(tfnoettoW Coat Ca.,~ tnoo IetO N erdinotm)tt 2tt372.1J E II~.SS

Ronne ifwsourcoo-Pine Mountain. Inc. WELL NAME AND NUMBERTRACT NO toooo ota. ~ / 1 44% ELEVATION I 772 Aif'UADRANGLE Ho~iCOUNTT ~ DISTRICT Sorotfick SCALE 1 = 400'ATE 2-14-2M8This Plat is a new plat~; an updated plat; or a final location plot

+ Denotes the location of a well on United States topographic Maps, scale 1 to24,OOD, latitude and longitude lines being represented by border lines as shown.

a c. m~-—~ Licensed Land Surveyor Exhibit A

Form DGO-GO-7

. O5 ««stA«S at Ote ~ tlZW ee.

%U. UXAMW P&f

-" " t - mu. Nm se eaae s~t 77t4t'yygg~'%$tf ". - ~ -'CALf t «Watt',2-tw-~

8k IVOR 4'0 ttse:~~; al";w O tiel lotet5en tNtEet o:~m Sahe ~~~ soote 1 le

,'.4IINilk.~ Sees i -= lty botdsr Qw ~ os sttown.

l~ C. Exhibit Ateste eiQ 7

t, [

i

JT 12'O"

Btje. tnarttan ~ '~'by aPS ortnaryfiwn ..~'rironrwt ~ Arar of tbat ~ 112N Aa,

tna C ~~ (CNaahW Coat.Co.~~.itenr. tear tXt w ~)N Jerly2 IJ . E. 1t~ee

. 'WELL LOCAllON PLAT

GOMPANV '.tbaaaro igaeorarces Ann lbaunfrain. Inc.; WELL NAME AND NUMBER if-Hstmtto ..TRACT. NO' aa': > 1-:oab EIEVATIN: . t 772411'UADRANGLEQOUNiV ~ mRCT ~b SCALE 1 - 4CEtr DATE 2-te=yftfHtThis Rat is.a new plat~ an phlt;. or a..8nal location plat

+ Denotes the hrcabon of".a well on".Unitid States'opographic Maps, scale 1: to+ 20;000; laNade a'nd rngitade lines'biiing repreaisnted'y border lines as sho~n.

Form KO-60-7=-' =- '=- Ucensed Lan'd Sunteyor

EXHIBIT A-REVISED