BEFORE...'Sa c""8rar c-csso I y cSS as BM 815 < s scar 'o t c ''c o ccsr cess") [L %E~ ESEISlT A ElSDlE FORE INCREASED DENSITY DRIllING NOES'IElD o 4RRI tt ~~~ rtr 5p. BEFORE THE VIRGINIA

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: Equitable Production Company DIVISION OF GAS AND OILDOCKET NO. VGOB $9-0126-0009-33

RELIEF SOUGHT: MODIFICATION OF NORA COALBED GAS UNIT NOS.: BX-47 (VC-536979), BX-48 (VC-536982) AND BY-50 (VC-539248).

AFFECTED UNITS: (See Attached Exhibit A)

APPLICATION

l. Annlicant and its counsel: Applicant is Equitable Production Company 1710 Pennsylvania

Ave., Charleston, West Virginia, 25302, (800) 926-1759. Applicant's Counsel is James E. Kaiser 220Broad Street, Suite 210, Kingspoit, TN 37660 (423) 578-3838.

2. Relief souuht: (1) Modification of the Nore Coalbed Methane Gas Field Rules, to allow oneadditional coalbed gas well to be drilled within each of the 58.77 acre Nore Units identified above. (2) Foran administrative order providing that additional well permits may be issued in the Nore Field atter this

application is filed and while it is pending.

3. Lanai authoritvi 4 VAC 25-160-50 and sx 45.1-361.20of the Code of Virginia.

4. Pronosed nrovisions of order souuht: That one additional coalbed methane gas well may bedrilled in each of the above referenced Nora Units; that the second well be located at least 600 feet from thenearest coalbed methane well; (and that production/royalties from each coalbed methane well drilled in thesaid Units shall continue to be allocated solely to the owners and claimants of and to the coalbed methanewithin the Unit in which the well is located.)

5. Tvoe of wells and field: Coalbed methane frac wells within the portion of the Nora CoalbedGas Field described above, and as depicted in the attached Exhibit A.

6. Formations subiect to annlication: All coal beds and coal seams including all Pennsylvaniaaged coals from the top of the Raven, but not limited to Jawbone, Greasy Creek, C-Seam, War Creek,Beckley, Lower Horsepen, X-Seam, Poca 6. Poca 5, Poca 3, Poca 2, and any unnamed coal seams and otherassociated formations known as the Nora Coalbed Gas Field.

7. Descrintion of interest/claim of nersons heine notified: Coalbed methane.

8. Estimated ultimate recoverv in each Nora Unit identified above: 525 MMCF

9. Plat: See Exhibit A annexed hereto.

lb. The boundaries and acreane affected: see Exhibit A annexed hereto.

I I. Attestation: The foregoing application to the best of my knowledge, information and belief istrue and correct.

om puny

By.James E. Kaiser

2 .g Broad Street, Suite 210g.ingspott, TN 37660

(423) 578-3838

AFFIDAVIT OF DUE OF DILIGENCE

COMMONWEALTH OF VIRGINIACOUNTY OF DICKENSON

I, lames E. Kaiser, after being duly sworn upon oath, state as follows:

1. I am responsible for the notification process required by VA. Code Ann. 11 45.1-

361.19and VR 480-05-22.2 ) 4.

2. That Equitable Production Company has exercised due diligence in attempting to

locate and notice all owners and claimants who are unleased and/or who were not

previously pooled by prior order(s) of the Virginia Gas and Oil Board regarding

the Nora Coalbed Gas Field, all as required by Va. Code Ann. II 45.1-361.19and VR 480-05-22.2.

That on August 15.2008 a true and correct copy of the Notice of Hearing with

Exhibits will be mailed, via certified mail return receipt requested, to all owners

and claimants listed in Exhibit B for whom mailing addresses were then available.

That Equitable Production Company will continue to exercise due diligence in

attempting to locate and identify the names and/or addresses of any unknown ofunlocatable parties and, if located of identified, will notify them of Equitable

Production Company*s application.

I have read the foregoing, and t

the best of my knowledge and belief.

ve is true and correct to

l es E. Kaiserunsel for

Equitable Production Company

ACKNOWLEDGMENT

STATE OF TENNESSEE

COUNTY OF SULLIVAN

TAKEN, SUBSCRIBED AND SWORN to before me this /0 day of

.2008.

ugalllaaa

My commission expires: November I 2. 2008

rJa~~iSusan Petersote Nota~>~< i

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catty . 'Sa c""8rar c -csso I y cSS

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L %E~ESEISlT A

ElSDlE FOREINCREASED DENSITY DRIllING NOES'IElD

o 4RRI tt ~~~ rtr 5p

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: Fquitable Production Company DIVISION OF GAS AND OILDOCKET NO. 89-0126-0009-33

RELIEF SOUGHT: MODIFICATION OFNORA COAI.BED GAS FIFLD

AFFECTED UNITS: Multiple (See Attached Exhibit A)

NOTICE OF HEARING

HEARING DATE: September 16, 2008PLACE: Southwest Virginia Iligher Education Center

Campus of Virginia Highlands Community CollegeAbingdon, Virginia9:00 a.m.TIME

COMMONWEALTH OF VIRGINIA:

To: See Exhibit "B"attached hereto:

l. Annlicant and its counsel: Applicant is Equitable Production Company,1710 Pennsylvania Ave., Charleston, West Virginia, 25302, (800) 926-1759. Applicant*sCounsel is James E. Kaiser, 220 Broad Street. Suite 210, Kingsport, TN 37660, (423)578-3838.

2. Relief sounht: (1) Modification of the Nora Coalbed Methane Gas FieldRules, to allow one additional coalbed gas well to be drilled within each of the 58.77 acreNora Units identified above. (2) For an administrative order providing that additionalwell permits may be issued in the Nora Field aller this application is filed and while it ispending.

3. Leual authoritv: 4 VAC 25-160-50 and (I 45.1-361.20of the Code ofVirginia.

4. Pronosed nrovisions of order sounht: That one additional coalbed methane

gas well may be drilled in each of the above referenced Nora Units; that the second wellbe located at least 600 feet from the nearest coalbed methane well: (and thatproduction/royalties from each coalbed methane well drilled in the said Units shallcontinue to be allocated solely to the owners and claimants of and to the coalbed methanewithin the Unit in which the well is located.)

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

Nora Coalbed Gas Field described above, and as depicted in the attached Exhibit A.

6. Formations snbiect to annlication: All coal beds and coal seams includingall Pennsylvania aged coals from the top of the Raven, but not limited to: Jawbone,Greasy Creek, C-Seam, War Creek, Beckley, Lower Horsepen, X-Seam, Poca 6, Poca 5,Poca 3, Poca 2, and any unnamed coal seams and other associated formations known asthe Nora Coalbed Gas Field.

7. Descrintion of interest/claim of nersons beina notified: Coalbed methane.

8. Estimated ultimate recoverv in each Nore Ualt identified above: 525 MMCF

9. Plat: See Exhibit A annexed hereto.

10. The boundaries and acreaae affected: See Fxhibit A annexed hereto.

11.Attestation: The foregoing notice to the best of my knowledge, informationand belief is true and correct.

NOTICE IS FURTHER GIVEN that this cause has been set for hearing and thetaking of evidence at the time and place first stated above and that notice will bepublished 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 orwithout an attorney, and offer evidence or state any comments you have. For furtherinformation or a copy of the application and any exhibits thereto, you may contact theVirginia Gas and Oil Board, State Oil and Gas Inspector, Department of Mines, Mineralsand Energy, Division of Gas and Oil, P.O. Box 1416, Abingdon, Virginia 24410, (276)676-5423 or the Applicant at the address shown below.

Eq Company

James E. Kaiserroad Street, Suite 210ingsport, TN 37660(423) 578-3838

BEFORE THE VIRGINIA GAS AND OIL BOARD

Applicant: Equitable Production Company )))

Relief Sought: Modification of the Nora Coalbed Methane ) Docket No.Gas Field Rules, to allow more than one coalbed gas well to ) VGOB-89-0126-0009-33be drilled and an order providing additional well permits )

))

AFFIDAVIT OF MAILING(CERTIFICATE OF SERVICE)

))

COUNTY OF SULLIVAN )

James E. Kaiser, of lawful age, being duly sworn, upon oath, deposes and says:

(I) He is a partner with WILHOIT & KAISER, Agent for Equitable Production

Company ("EPC")and makes this aAidavit on behalf of EPC.

(2) Based upon information and belief, the names and last-known addresses, where

such addresses are known, of the parties owning an interest in the oil and gas in this

cause are set forth and attached hereto.

(3) On the 15th day of August, 2008, true and correct copies of the Application and theNotice of Hearing in this matter were placed in the United States mail in Kingsport,TN, certified mail, return receipt requested, postage prepaid, duly addressed to theunleased parties at their respective addresses as set forth in the attached Exhibit Bwhich is hereby made a part of this Affidavit.

(4) Notice of this cause has therefore been served by mail pursuant to the applicablestatutes and rules of the Board.

My commission expires: November 12, 2008

iill IIeoeellSUBSCRIBED AND SWORN TO before me this 9'" day og48qfgnhtg~g.

Z

~$35%

IIIetlrue'e

EXHIBIT

Mr John MooneyVice President & Regional Manager QC/+dv p/r ~/ACIN, LLCP. O. Box 2827 Huntington, WV 25727

Mr. Steve SmithVice President of VA/KY Engineenng r'~ ~z-PSAlpha Land &. Reserves. LLC ggg~ggg/E/and Maxxim Shared Services, LLC5703 Crutchfield DriveNorton, VA 24273

Range Resources-Fine Mountain, Inc

ATTN: J v G s~~/~ gx p/

P. O. Box 2136Abingdon, VA 24212

Standard Banner Coal CorporationAttn: Mike Clisso l ~~ ga-~~P.O. Box 750 egp~g $/4+gWise, VA 24293

a B1M MIcp''JM Rvoi

~Pi 'i~8~ 4o~ NcfWF Eve .NUNS

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EA&li91F AAAfIPDIS" FORA

INCREASED DENSI1'l DRIIIINC NOVAE FIELD~ II

I

Page I of 1

Barrett, Rite

From: Mike Clark [mclarkatsone.corn]

Sent: Wednesday, September 10, 2008 4:46 PM

To: Barrett, Rite

Subject: VCI-588257 & 8646

8257 is 10.10ft inside the interior and 8646 is 10.00 ft inside. These come out exactly 10ft becauseCavender has us move them at least 10ft inside the interior if they are close to the lhte.

HII„ct.,tAppalachian Technical Services Inc.P.O. Box 35376741 Indian Creek RoadWise VA 24293ph 276-328-4200fax 276-328-4900

9/10/2008

11,070'AITITUDESP02'0"N

PROPOSED LAT. 4 LOMB.(NAD 27 DE(IL DEBREES)OF WELL VCI888048

87.00184482428878 h

hO

DMLR PERMIT»1101818

e

~ ps

es

~ es

/gl

DMLR PERMIT»1200808

eeX F„ I

TOTAL U WIT AREA28 58.77 ACRES

0V

I

PROPOSED CCC) COORDINATES OI

8 88>io.OO I

8 18,710'.80 >a UNIT BOUNDARY

IPROPOSED ATE PLANE ~ ee ~se w

PP-1NAD SS TES OF I 4~~~'SPIXS N48)eln~IPins (1888)—

/ ee'ret

ee

1~ se

~C

el~n

(AFFIX SEAL)

NOTE:

PROPERTY INFORMATION PROVIDED SY EOUITASLE/PRODUCTION COMPANY.

ELEVATIONS WERE DETERMINED BYSPS 4 TRIBONOMETRIC a.

+ METHODS BASED ON BENCH MARK P-424.THE BOUNDARY UNES 8HOWN HEREON ARE BASED ON DEEDS, TS, AHD MAPS ee ~——OF RECORD OR PROVIDED SY OTHERS AND DO NOT DEPICT A CUR((SSt7 BOUNDARY SURVEY.

WELL LOCATION PLAT ( Nora Grid BX47)COMPANY EQUITABLE PRODUCTION CO. WELL NAME OR NUMSER VC14RNM48

TRACT NO. TL-225 QUADRANGLE NoroDISTRICT Kenodv

WELL COORDINATES (VIROINA STATE PLANE 27) N 265.979.78 E 881.981.05ELEVATION 2,180.22 METHOD UBED TO DETERMINE ELEVATION: GPS 4r TRIG.

COUNlY Dickenson SCALE: 1 = 400'ATE 09-08-08THIS PLAT IS A NEW PLAT ~ AN UPDATED PLAT; OR A FINAL LOCATION PLAT

+ DENOTES THE LOCATION OF A WELL ON UNITED STATES TOPOORAPHIC MAPS, SCALE 1 TO 24,000,LATITUDE AND LONGITUDE LINES SEINO EPRESENTED BY BORDER LINES AS SHOWN.

LICENSED LAND SURVEYOR

la

EXHIBIT PL-1

Property Ownership Inforn0atlon for EPCO Well 8 VCI<88848

LEASE NO SIMNSU llr888STANDARD DANKER COAL CORP;0747.00ACRESeoraeee, seal, 40, oas 4 obmOAS 80.70AC. 88.87%

0TAKDARD SANNWI OCAL CORP:0747.00ACREScoal Ieeeepllae lower SeeearleeemboK Sm 4 abmLEASE NO. 800000LDKsMNSON-SU0$ 0LLCOIJr CC. LID Implm IAlm 4 ssosmm4 LLD IaolK LLO rWSRD, LIO - seal(Bm Lower Seaaer Seam aeSISA0 18.08AC. 2417%

LEASE NO. 000000L IT~H.C. ORMZLEN 00ACRESDICKENSOIMKISSELL COAL CO..LLC IALPHA LAND 4RESER08K LLC IACIN, LLC IWSRD, LLC - ooolRANDE RENWRCEDPINE MOUNTAINCSL 4DAS, NC. -o$, Sae & obmOA8 1.00AC. 1.01%

LEASE NO. NNSSL ITW'.C.DIEZZLE

PART OF 77.01ACRES - SfsfaoeJOHN H. DRIZZLEPART Of 000 ACREDIOKENSON-RUSSELL COAL CO., LLC IAIPHA LAND 4 RESMBISK LLC I ACN, LLC IWSRD, LLC - ooelRANEE RESOURCE&%Ill MOUNTAINOK4OAS, INC.-o$ ,0ss4obmOAS 8.84AC. 4.88%

LEASE NO. 000000UT~AJL MOOREST.$4 ACRES ~ SmfsoeJOHN H. DRIZZLEPART Of 000 ACRESOICKENSOIWIUSSELL COAL CO., LLC IAIPHA LAND 4 RESWWES. LLC I ACN, LLC IWSRO, LLO - ooolRANCE RESOURCEDPINE MOUNTAINOIL 4OAS, NC. -o0, Sea 4obmOAS 11.80AC. 10.8S%

LATITUDE sr«F Mr

TOTAL UNIT AREA«58.77 ACRES

MAPSDARY SURI%Y

PROPOSEO Sl'ATE PLANENAD 0$ COORDINATES OFWELL VC4$$0207N $,$4$,700ASE 40$07>000.00

s,ssr

NOTE: +PROPERTY INFORMATION PROVIDED SY EQUITABLE

~LEVATIONS Wm DETERMINED SYOPS a T«OONOMETRIC

THE BOUNDARY UNES SHOWN HEREON ARE SASEO ON OEEOS, FIATS, ANO

OF RECORDOR PROVIOEOSYOTHERSAND DONOTOEPICTACURRENT SOUN

1000'ROPOSEOIAT.aUN'NAO27 O«EMAL DEORIMS)

UNIT BOUNOARYSMF

I

STANDARD BANNER COAL CORP.i-aoo) ope FstorL

INN&ANY, l LC -SSM operalorOAS 00A4 AC. St00%

/

loflno Nels

4

*( em eence

E 17,$42.11ee

Pn

7 e

1STO.IHecto OSOOO.rlate. 144

1LEASE NO. 000000L IT))M COAL CORP.-H.C. DRIZZLE47.70ACRES Senner Sean).DICK«MOI44IUSSELE COAI Co. LLC IALPHA LA«) 0 RESERIMS. ILC I ACTI. LLC IWSRD, llo - oom )RINSE RESCUR0EsfNE MDUNYAIN CIL a SA0, INc.-SILSooaabmTHE BANNER COMPAIW-nasl ofsreoor 1OAS SA4AC. 0.$4%

WELL LOCATION PLAT (Nora Grid ¹BX~)COMPANY EQUITABLE PRODUCTION CO. WELL NAME OR NUMBER VCI4$02$7

TRACT NO. TL-223 OUAO HANDLE St. Paul

DISTRICT Kenodv

WELL COORDINATES TVIROINA STATE PLANE 27) N 264.9)4.26 E 884.073.51ELEVATION 2.253 04 METHOD USED To DETERMINE ELEVATION: GPS Ch TRIG.

COUNTY Dickenecn SCALE: I" = 400'ATE 09-08-08THIS PLAT IS A NEW PLAT X AN UPDATED PLAT; OR A FINAL LOCATION PLAT

+ DENOTES THE LOCATION OF A WELL ON UNITED STATES TOPOORAPHIC MAPS, SCALE 1 To 24,000,lATITUOE ANO LONOITUOE LINES SEINO ESENTEO SY BORDER UNES AS SHOWN.

(AFFN SEAL)UCENSED lAND SURVEYOR

0,880'ATITUDE$000'P

II

I

TOTAL UNIT AREA= 58.84 ACRES

PROPOSED LAT. 4 LONQ.LNAD 27 DEENMAL DEQREESI + PROPOSED I HHLBSA STATE

PLANE 0$ CC ORDINATESOF WELL VCI 4$0424N $,$44,07I L$40 40,$00,41 0.20

oaeloN NOO40

"I"OIOOKond Fai 4 IV, LP.~

/$4000102 e02.$14040

—~NIT BOUNOARY

f ./ ~~i/

Ite avfooo

L> PHILLIP M SEALS'ic.No. 1570

gp~ If r~NOTE:

PROPERTY INFORMATION PROVIDED SY EQUITABLEPRODUCTION COMPANY.

ELEVATIONS WERE DETERERNED SY QPS 4 TRIQONOMETRICMETHODS BASED ON SWSCH MARK 14424.THE BOUNDARY ONES SHOWN HEREON ARE BASED ON DEEDS PLAYS~ AND MAPSOF RECORD OR PROVIDED SY OTHERB ANO DC NOT DEPICT A CURRENT BOUNDARY SURVEY.

0 $7~.70

WELL LOCATION PLAT (Nora Grid BY 50)COMPANY EQUITABLE PRODUClloN Co. WELL NAME OR NUMBER VCL8$0424

TRACT ND. IL-223 QUAORANQLE St Paul

DISTRICT Kenadv

WELL COORDINATES iVIRQINA STATE PLANE 27i N 263.798 32 E 886.430 67ELEVATIDN 2,698.08 METHOD USED TO DETERMINE ELEVATION: GPS' TRIG.

COUNTY DInkenean SCALE: I = 400 DATE 09-08-08THIS PLAT IS A NEW PLAT X AN UPDATED PLAT; OR A FINAL LOCATION PLAT

+ DENOTES THE LOCATION OF A WELL ON UNITED STATES TOPOQRAPHIC MAPS SCALE 1 TO 24I000LATITUDE AND LDNQITUDE LINES SEINQ REPRESENTEO BY BORDER LINES AS SHOWN.

IAFRX SEAL)LICENSED LAND BURY+DR

EXHIBIT

Mr John MooneyVice President Jk Regional ManagerACIN, LLCP. O. Box 2827 Huntington, WV 25727

Mr. Steve SmithVice President of VA/KY EngineeringAlpha Land dc Reserves. LLCand Maxxim Shared Services, LLC5703 Crutchfield DriveNorton, VA 24273

Range Resources-Pine Mountain, IncATTN: Jerry GranthamP. O. Box 2136Abingdon, VA 24212

Standard Banner Coal CorporationAttn: Mike ClissoP.O. Box 750Wise, VA 24293