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Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable...

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I)/I I ittitfp 'I'/llilll I i ill lttlNI)EN I/ II IE II <I II.IIlul, k ii.iii Ii.i. I IIi, Il li (,Il IJIIILMI 8 IIIIII ').iiI.I BEFORE THE VIRGINIA GAS AND OIL BOARD RELIEF SOUGHT: An Order for Disbursement of Escrowed Funds (and Authorization for Direct Payment of Royalties) JURISDICTION: Code of Virginia g 451-351, (et seq) AND 5451-36122 (et seq) UNIT/WELL NAME; VC-536772 TRACT(S): A portion of 3 LOCATION: DICKENSON County, Virginia TAX ID NUMBERS: Tax Map Identification Numbers for all parcels affected by this order are shown on: Exhibit B DOCKET NUMBER: VGOB-05-1115-1531-01 APPLICANTS: EQT Production Company on behalf of Lambert Land, LLC HEARING DATE AND LOCATION: Russell County Government Center, Lebanon, Virginia December 18, 2012 APPEARANCES: James Kaiser on behalf of EQT Production Company PRIOR PROCEEDINGS: 1. Original Pooling Order Executed 01/10/2006, Recorded on 01/17/2006, Deed Book/Instrument No. 421, Page 655. 2. Supplemental Order, Recorded on 07/06/2006, Deed Book/Instrument No. 427, Page 416. NOTICE: The Unit Operator gave notice to the Applicants that the Board would consider its disbursement petition at the December 18, 2012 hearing and considered whether to: (1) Amend the Pooling Order to provide for the disbursement of funds on deposit in the Escrow Account attributable to Tract(s) A portion of 3 identified in the attached petition. (2) Delete the requirement that the Unit Operator place future royalties attributable to Tract(s) A portion of 3 relative to the interests of the Applicants identified in the attached petition. (3) Continue the escrow account under this docket number. FINDINGS: Code of Virginia 5 45.1-361.22 Applicant has certified and represented to the Board that: Page Number 1.
Transcript
Page 1: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

I)/I I ittitfp 'I'/llilll I i ill lttlNI)EN I/ II IE

II <I II.IIlul, k ii.iii Ii.i. I IIi, Il li (,Il IJIIILMI8

IIIIII ').iiI.I

BEFORE THE VIRGINIA GAS AND OIL BOARD

RELIEFSOUGHT:

An Order for Disbursement of Escrowed Funds(and Authorization for Direct Payment of Royalties)

JURISDICTION: Code of Virginia g 451-351, (et seq) AND 5451-36122 (et seq)

UNIT/WELL NAME; VC-536772

TRACT(S): A portion of 3

LOCATION: DICKENSON County, Virginia

TAX ID NUMBERS: Tax Map Identification Numbers for all parcels affected by this order are shown on: Exhibit B

DOCKET NUMBER: VGOB-05-1115-1531-01

APPLICANTS: EQT Production Company on behalf of Lambert Land, LLC

HEARING DATE AND LOCATION: Russell County Government Center, Lebanon, VirginiaDecember 18, 2012

APPEARANCES: James Kaiser on behalf of EQT Production Company

PRIOR PROCEEDINGS:

1. Original Pooling Order Executed 01/10/2006, Recorded on 01/17/2006, Deed Book/Instrument No.

421, Page 655.

2. Supplemental Order, Recorded on 07/06/2006, Deed Book/Instrument No. 427, Page 416.

NOTICE:

The Unit Operator gave notice to the Applicants that the Board would consider its disbursement petition at theDecember 18, 2012 hearing and considered whether to:

(1) Amend the Pooling Order to provide for the disbursement of funds on deposit in the EscrowAccount attributable to Tract(s) A portion of 3 identified in the attached petition.

(2) Delete the requirement that the Unit Operator place future royalties attributable to Tract(s) A portion of 3 relative tothe interests of the Applicants identified in the attached petition.

(3) Continue the escrow account under this docket number.

FINDINGS: Code of Virginia 5 45.1-361.22

Applicant has certified and represented to the Board that:

Page Number 1.

Page 2: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

Lambert Land was identified as a conflicting owner in Tract 3 for Well VC-536772. EQT Production Company hasreceived a letter dated October 4, 2012 from Lambert Land whereby Range Rescources-Pine Mountain inc. releasedtheir claim to current and future royalties in this well.

RELIEF GRANTED:

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1. The Escrow Agent is ordered, to within ten (10)days of receipt of this executed order, disburse funds forthe unit and appticants detailed in Table 1.

2. The Escrow Agent is ordered to continue the Escrow Account for the Subject Drilling unit based on theattached Revised Exhibit E which replaces all prior Exhibit E's recorded for the Subject Drilling Unit.

CONCLUSION:

Therefore, the requested relief and all terms and provisions set forth above be and hereby are granted and IT IS SOORDERED.

APPEALS:

Appeals of this Order are governed by the provisions of the Code of Virginia g 45.1-361.9which provides that anyorder or decision of the Board may be appealed to the appropriate circuit court and that whenever a coal owner, coaloperator, gas owner, gas operator, or operator of a gas storage field certificated by the State Corporation Commissionis a party in such action, the court shall hear such appeal de novo.

Page Number 2.

Page 3: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

DONE AND EXECUTED this 3 day of January, 2013 by a majority of the Virginia Gas and Oil

Board.

Chairman, Bradley C. Lambert

DONE AND PERFORMED this 3 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 RUSSELL

Acknowledged on thD day o , personally before me a notary publicin and for the Commonwealth of ir ia, appears Bradley C. Lambert, being duly sworn diddepose and say that he is the C 'n of the Virginia Gas and Oil Board and appeared RickCooper, being duly sworn did depose and say that he is Principal Executive to the staff of theVirginia Gas and Oil Board, that they executed the same and was authorized to do so.

n.P .174394

My Commission expires: September 30, 2013

llllllllll

*.: PUBLICREG. «I7439, ':*-MY COMMISSIOlf

EXPIRES

'rrrr 44TH Ofrrwlffrtll'

Page 4: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

BEFORE THE VIRGINIA GAS AND OIL BOARD

PETITIONER: EQT Production Company

RELIEF SOUGHT: (1) DISBURSEMENT FROMESCROW REGARDING TRACT(8) A portion of 3(2) AND AUTHORIZATION FOR DIRECTPAYMENT OF ROYALTIES

DRILLING UNIT: VC-536772

DIVISION OF GAS AND OIL

DOCKET NO: VGOB 05-1115-1531-01

HEARING DATE: December 18, 2012

DICKENSON COUNTY, VIRGINIA

PETITION FOR ORDER OF DISBURSEMENT OF ESCROW FUNDS

1.Petitioner and its counsel

Petitioner is EQT Production Company, 225 North Shore Drive, Pittsburgh, PA 15212, (412)553-5700. Petitioner's counsel is James Kaiser, Wilhoit and Kaiser Law Firm, 220 Broad Street, Suite210, Kingsport, TN 37660.

2. Relief Sought

A petition for disbursement of funds from Unit VC-536772 for Lambert Lands in Tract 3.

3.Legal Authority

Va. Code Ann. $ 45.1-361.1et seq., 4 VAC 25-160-140., and relevant Virginia Gas and OilBoard Orders ("Board" ) heretofore promulgated pursuant to law.

4. Type of Well(s)

Coalbed Methane

5. Factual basis for relief requested

Lambert Land was identified as a conflicting owner in Tract 3 for Well VC-536772. By letter dated10/04/2012 from Range Resources-Pine Mountain waiving claim to any past or future royaltiesattributable to your interest in this well.

6.Attestation

The foregoing Petition to the best of my knowledge, information, and belief is true and correct.

Page Number 4.

Page 5: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

NWI Cooneiertea (~N27)57.52966F -6227att25

p taofceei Troat 7enerntlpj

6,080'atitude

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ttertR Pe. mirNo. »Oie75

Area of Vnii = 56.77 Ae.

WELL LOCATION PLAT

Stiir Coontinotee: (VA St. Plane S. Zone,Coteototeet fnm CCC coordinates)N 275,473 .E 699.539

—-cree-Coonrrevrtea'-(CBeotilietrf .Cool Co.)5 25,619.36 E 52,645.72

COMPANY Eauitable Produchon Comoanv WELI NAME AND NUMBER VD-.C36'777

TRACT NO. i. Aio 906075) ELEVATION 2 D78.D6'UADRANGLE No

COUNTY Dickenson DISTRICT Frvinton SCAI E I" = BDD'ATE 9 26 7006This Plat is a new plat ~; an updated plot; or a final location plat

Denotes the location ol a well on United States topographic Mops, scale 1 to24,000, latitude and longitude lines being represented by border lines as shown.Q=~ m~

'~~cd n "'"""'"-"' —:—=" + Licensed Land Surveyor

Page Number 5.

Page 6: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

7

UC-536772 PLATTRACT OWNERSHIP INFORMATION SCHEDULE

1 . Lease No. 905073LLambert Land, ILC - surface, coal, oil, gas k CBM512.9SAcres

- " " -Gss -40WWc-.-- 69;07%--

lR 50)5

2 . Lease No. 241490L / T-140H. Hardaway / C. C. Smith

31.77Actus

ACINLLC= coalAlpha Land dt Reserves LLC - coal lessee

WBRD LLC - coalDickenson-Russell Coal Company LLC - coal lessee

Pine Mountain OB dt Gas, Inc. - oil, gas, dt CBMGas 424 Ac. 7.21%

3 . Lease No. 905467LLambert Land, LLC - oil, gas, dt coal (Lower Banner Seam only)Lease No. 244792L / TC-176Elijah Neece, 68.25 Acres

ACIN LLC - coal (all except Lower Banner Seam)Alpha Land dl: Reserves LLC - coal lessee

WBRD LLC - coal (all except Lower Banner Seam)Dickenson-Russell Coal Company LLC - coal lessee

Pine Mountain Oil Ik Gss, Inc. - CBMGas 7.70 Ac. 13.10%

4. LeaseNo. 241640L/T2-130Geo, Lambert

153.53AcresHeartwood Forestland Fund IV, L3'. - surface

ACIN LLC - coal

Alpha Land 8!:Reserves LLC - coal lesseeWBRD LLC - coalDickenson-Russell Coal Company LLC - coal lesseePine Mountain Oil k Gss, Inc. - oil, gas, k CBMGas 5.71 Ac. 9.72%

5 . Lease No.Eva Grizzle - oil, gas dc coal (Lower Banner Seam only)1 Ac're

Lease No. 244792L / TC-176Elijah Neece, 61L25 AcresACIN LLC - coal (all except lower banner seam)Alpha Land Zk Reserves LLC - coal lesseeWBRD LLC - coal (sll except lower banner seam)Dickenson-Russell Coal Company LLC - coal lesseePine Mountain Oil dt Gas, inc. - CBMGas 0.53 Ac. 0.90%

page Number S.

Page 7: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

VGCD ~ 0

0 0 VC 636772

VGOD-06. 6.163 .D

VVA y ee E td 0 00 Alp 0 Alg Dptt A E dp 0

IT I Ag t DID d DID d

Td I

7 Ap 3

It T 0 D 0 ITDI

Tdl gl I I 00 623200

7 03001 gt3 lL I ~ L E.LLCP 0 ~ 121.ADI EE,VA23272

7 TD

I 7 7100l

IDDDOII l 7 Ttdgl 23 60012l

610AEI 20 l

Wells contributing to the escrow account: VC-538772 W/PL

Page Number 7.

Page 8: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

EXHIBIT eII ~VC-536772

VGOB 05/1 1/1 5/1 531

TRA LESSORLEASE

RIBXM5

INTEREST GROSS NETWITHIN ACREAGE REVENUE

gN¹ IN UNIT INTEREST

Cas Estate Onlv

I ID ¹ 17210Lambert Land LLC

P O. Box 490Nore, Virginia 24272

Leased-EPC 69.070000% 40.5900 0.08633750 Rl

905073L

Equsable Producbon Company

Trad I Totals

ID ¹ 12443Pine Mountain Oil & Gas, Inc

Attn; Jerry GranNam

P.O Box 2136Abmgdon, VA 24212

2 Leased- EPC241490

7.210000% 4.2400

69.07000IPA 4O.69OO

0.60436250 Wl

0.69070000

0.00901250 RI

Equitable Pradudion Company 0.06308750 WI

Tract 2 Totals 7.210000% 4.2400 0.07210000

3 ID il 06221

Iamben Land LLC

P O. Box 490Nore, Virginia 24272

Leased- EPC

905467L13.100000% 7.7000 0.01637500 Rl

Equitable P rod uc5on Company

Tract 3Totals

4 ID¹ Leased EPCPine Mountain Oil 8 Gas. Inc. 241 840Attn: Jerry Grantnam

P.O. Box 2138Abingdan, VA 24212

Equitable production Company

13.100000%

9.720000%

7.7000

5.7100

0.11462500 Wl

0.13100000

0.01215000 Rl

0.08505000 Wl

Tract 4 Totals 9.720000% 5.7100 0.09720000

5 ID ¹ 02712Eva Jane Gdxxle

Route I Box 625Dante, Virginia 24237

Equitable Praducllan Compmly

Unloosed 0.900000% 0.5300 0.00112500 Rl

0.00787500 Wl

Tract 5 Tatals 0.900000% 0.5300 0.00900000

TOTALGAS ESTATE 100.000000% 58.7700 1.000000M

Page Number 6.

Page 9: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

Cost Eslsts Ontu

1 IO 4 17210I smbsn Lend LLC

P.O. Box 490Nwa, Virginia 24272

Leased.EPC 89.070000M 40.5900 0.08633750 Rl

905073L

Equdable Prcducdrm Company 0.60436250 Wl

Tract 1 Totals 69.070000% 40.5900 0 69070000

ID 4 12443Pine Mountain Ob 6 Gss, Inc.

Attn: Jerry Grantham

P.O. Box 2136Abingdon, VA 24212

Leased - EPC241490

7.21000046 4.2400 0.00901250 Rf

Eqrristbls ProducROII Compmly 0.0630S750 Wl

Tract 2 Totals 7210000% 4.2400 0.07210000

3 ID 4 06221 Leased - EPCPine Mountain Og 6 Gas, fnc. 244782Attn: Jerry Granlham

P.O. Box 2136Abingdon, VA 242'12

13.100000% 7.7000 0.01637500 Rl

Equitable Praductkm Company 0,11462500 Wl

Tract 3 Totals 13.100000ts 7.7000 0.13100000

4 ID II

Pine Mounaun Og 5 Gruu Inc. Leased - EPC 9.720000% 5.7100 0.01215000 Rl

Attn, Jerry Grarrgimll 241 840P.O. Box 2136Atsngdtm. VA 24212

Equitable Pmducdon Company 0.08505000 Wl

Tract 4 Toads

Le!mod - EpC

244792

ID 8 02712Pins Mountain Oll 6 Gas, Inc.

Attn; Jeny Granlham

P.O. Box 2136Abargdon, VA 24212

5.7100 0.09720000

02300 0.00112500 Rl

Tract 5 Totals

Equitable produc6on Company

TOTAL COAL ESTATE

0.00787500

0.0090NN00.5300

100JN0000% 56.7760 1.00000060

Page Number 9.

Page 10: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

EXHIBIT sEs

VC-536772REVISED 1LV10I2012

TR LESSORLEASESTATUS

INTERESTWITHIN

UNIT

GROSSACREAGE

IN UNIT

Gaa Estate Onlv

5 ID ¹02712Eva Jane Grizzle

Route 1 Box 625Dante, Virginia 24237

Unleased 0.900000% 0.5300

TOTAL GAS ESTATE 0.900000% 0.5300

Coal Estate Dnlv

5 ID ¹02712Pine Mountain Oil 8 Gae, Inc.

Attn: Jerry Grantharn

P.O. Box 2136Abingdon, VA 24212

Leased - EPC 0,900000%244792

0.5300

TOTAL COAL ESTATE 0.900000% 0.5300

Page Number 10.

Page 11: Il ').iiI...Nwa, Virginia 24272 Leased.EPC 89.070000M 40.5900 0.08633750 Rl 905073L Equdable Prcducdrm Company 0.60436250 Wl Tract 1 Totals 69.070000% 40.5900 0 69070000 ID 4 12443

Exhibit EEVC-536772

VGOB 05/1 1/1 5-1531

TractINTEREST

Lessor WITHIN UNIT ACREAGE IN UNIT

Gaa Rotate Onlv

3 ID ¹ 06221Lamberi Land LLC

P.O. Box 191Abingdon, Virginia 24212

Leased- EPC 13.100000L905467L

7.7000

Total 13.100000% 7.7000

Total subsequent to RR-PM Waiver 1$.1$XXNNi 7.7000

Page Number 11.


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