1

V I R 0 I N I AcC'>sr>< 7S5 p>«552

essence TNS VIRSINIA SAS AND OIL SOARD

1WLZWÃt »»I» lWR = WÃAOIF»»A Div,mien of RcpcXtablo Rbsouroos

Room y

{1)RSTRRLI~a OP TNS DRILLINSSNIT DS~ XN SXT»A»

ANS SSRVSD MLL NO.v-23TS (herein»subDrillins Snit ) TO5 65.1 361»20( OWS'OPVXRSXNIA» ANS (2) XNS Oy

W»l ~SNIT p ~ »f TO 5 0$.1 361 21,4%%8 OP VXRSXNXA» PCCR %0~XSN 49'ccrlSNAL OXLANS/OR SAS PRCW Ni)NOll 35SCNRTIONS(heroin referred to'as "Sas

VISOINIA SASAND OIL SOARS

DOOKRT NO.96 0517 0646

MILL!M m ~ ~ M I%V,v 239$ To w RRILL+c xN ~ LscwfxcscDSPIOTNS SN WNXRXT A eeserMiVXCN; NX XSS

LIPSS WXRL DXSEOT iNXSN, VXNRWTA(tbe»Suhjsst Lande» are aeropsrtioulariy deserQmd en Sech%bit»A" attashsf berate and sale apart hereof )

Assosr ot scca wancc

pIwIses AND cKDNR

Noacc~c nsao nod sinccoc This natter o~ on for hearinS bofors thsVirSinia Sae aad 011 heard (Rareafter "Saar4 ) at 9C00 a.a. On July 19» 1996,Ratliff Sall, ssutlcccost Virsin) ~ 54uoatioa ~ Oscctsr, Abinsdon, virsiaia.

2. » ~c Jaws S. Ra of Ranter, Saith 5 Davis appeared fortbo Applioant) dandie R. Ripps, Assis Attoraey Ooneral, cess precast to advisetbo Soard.

3. Jurcedc stion eccd,setkccoc rsuant to 5 65.1-361.1RR m., virsiniaCods, 1950 as —'"', tho Roard fin4s t it bas juriediotion oven tbo sub jestnatter. Raced speci the ovtdsnse ~4 hy Applioant, ths Soard also findsthat ths Applioaat bas (I) esaroksed diliSeaee ia ooaduetinp a ~coul~sarah of raasonabl p availsblo seasons o dehhenino tbo identity and cd»roaboutsof eaoh Soe or oil career, soak occher, or aiaeral ocecor havinS an interest insubjeot Rrillias suit uccderiyias and odsprlead of subjeot Laa4sc {2) hes givennotice to thew parties so idhntifkod (haeaafter eewttws parson(s)" uhetherroferriaS to individuals< oorpsratioas, psetnerahips, aesooietioas, oeapaaios,businesses, trusts, joint ventures or other lapel eatitios) ontitle4 by 5 45.1-361.19, vkssiaia oefs, 1950 as ——— =, to notion of this ~liccetionc and {3)that tbe possess sec, forth in Rcchkbkt s berate bars bean identified by asplioantas accuses of Sas ucr)erlyinp Subject Driilhcp Snit, iaoludinS those uho notheretofore leased oc voluatarily apreo4 to pool their Sas interests in Subject

I)OOK 785 <II:~ 553

Drilliay Qnkt. further» tho Seard has ~~~ neCioo of this boorkaS to boyubkkehnd na re5 Ckred by 5 55 1 34) s 19th» V in OOOO» 1950 nsSheresyea, tho Diced hereby tin4s ths aot Ok+on boruia sntkofv nllstacucssy royr ~~» hoard rake rsynkrosencs nnd tho eillileis st ofstate due ga~

da — saI ynhkhkt 0 uay:—:=to roloot that Onry Stnllnrd nndLinda stnllnrd le{end their oas interests to tbe Oyerntor.

5. ac~ ~oi dart Stallard an4 l,knda Stnllard, his ukfo.

5. soaks! I~:hype~ reyioets {1) that yursuant to 5 55.1-351 20» Oo4o et Vlil@ifAh 1000» as =:. -» Cbs hoard establish Subrent DrillknOSnit te ho ~~ hg Nnkk yes 'V 2390) {2) tbbt pursuant tO 5 45sl 351.21» COleof v~» 1 aa:——:,:,cbo ynyk ths rkyhcs, interests an4 estatesof tlio hnebn aad::::~=---- kksOot ia SelsQAC 0 hereof, and their hneun andunhnssa hairs, a ~maa, ~~~~~, derksses tr = aes nad

seta aat ~ t aaa \ tas asa see tas sett!,~aa, tates Ia~ taa, I! asa essa ta at»test a ttttaa a tt~etehkkehed fer a,',1 nen~khed ksae fssa tho surface to the Cecal 4aytb4rl,llo4 of 5 200 0 Iet, knnkudkny, huC kkskted Co ths Devonian Shalee, Senhurtshakes, okeunbnad, yanaa, sskr» yky, Saon and haoanolktf tcrssckoae { in

~Ctrjeet ~LOCO ) uadnelgQliy end ~ Of Chs Suhe)eot fsaadn» { er~nsecksns eekkesti,velar kdostktkad asNgl

— to ns soll deookoysont nnd/oroperation in Cbs Dali. Drilkkay ts) i nad, {3) that the hoard dosiynatohyylkonnt as Dnkt Oyesator.

7. aokkoi musanoSC yho ——~ relist in thl.o souse be nnd herebt iooraeted en4» {1)lursassh te 0 45.3 3 1.20, oa4o ot vkryknkn, 1950 as ~=:=,tbs Dosed ~~; establishes Drillias Onkti {2) pursuant to5 5$ .3 301.21.0.3, Osds sf Vkrykska» 1950 ae::, 00nktahlo ResduroosSnylosatkan {hereafter Snkt C~",'i is n ~as Cho Operator nuthneknedto drL11 nad ~lo che sell in chs lulvJOA Drillkey Dnkt to yroduoo oas tronsubrent ysdo044ae ~ ~ co cho yesnkt yrevkskens ~s» I kn 5 55 1 351~ 27

~, dada et VI sykaka» 1900aa:,:, » Co 0 ~-22e 1 Oh ~.s Oas aad Oillens asd to 0 4NH9$ -22.2 DL ~i, vkryknla oao an4 OLl yoar4 hsoulaskons,

all as —.—— fern ckss to t I {3) cbs oas iehnreecs nad insuh2set yrkllkny {iakt et cbe 4awa:::—ysrseas lkecod on ~"'ult 5,nt+~ heseco ai Id inads n ynnt ~ asd choke hnoun nnd u~ c)nkre»sees»ass, "attests, as»tease, 'eases»W, et»sassI~I ce aad sass{le» l~ og ae~» ha 004 hereby nre pooled in tbo sub)estyosaatkons ia cbo itu4eot Drillino DnkIt uadarlpkay nnd ooeyrl,ee4 o! tbo sub)octLands.

nkl aeaforsstksaso Ley st tbo~ustam to thetetal 4eynhdrilled ef5»'8% Seat,iaelu4Lay» butnet liekhed Ce CbeDeueeksa Shakes,~unbury

ena'ands,

aeeeas Sakes DLOIeken ~ Sensa OndRavuaokkt t

'111.05-aces "ol.reelerdrklkkny unit

fusnkttsdSoll toootkon

V 2370 {Soosrhkhkt bfer losation

Skald nn4Sall 61nonkt1ontkoa

No nyplioablo fkokdrulooi

500k /SO Pktii 554

Poraatieas

Por tbo sob)est Drilliny Dnktsaderlpke9 esd osyyrkesd of ths oobyeot

Lead Oorvod hy Sall No. V-2218

Nkso Oouatpy Vkryknka

9 01~3~9,1 ~1~ 1 acy sas4cea1eata In vbe neoeE~ and cncereekcyyc ef tbo

ar.kllcnm snktc hsj yas oc ekl cawoc 00404 kn ycykkhkt 8 I¹a hes not0 veksatorf aveae ~ «kth tho OyoIWCer aap sleet to

1parti«kyate ia Cbo devaDakt i boreal tor ipactko~stkse Co ef assh yactkoaoCssl 004 r-ef the wkk 4~~u ww ysctkosQe'4heyakr Cisepcodsr Ckea Ossts~) ~

Che osckaste ef ssoh partithe ys IkWCedy ~~the Dalt Oyershor IIithia fpctp4000 cif aeklkay oc Cho~etkaa twd OalgdeC04 for-Dakc follcwsc

~04 oyecstkea of chs Oohgcwt Dril 109ksy Oyecetec"l bp kay to psp tho

kay ~~ 0 ra aavea «t00000 Part sf 'Cboe kaekadksy s c==~ko ~~kskea fee,

eyecackea ka tho seh200t Drillkay snit,foech kn vkcokaka oas sa4 oil yoar4

~astkon 10 {herein OasyleCe4 for, 0 Pectkokyetksy Operator ~ to yay

kpstkay Oyerater' r ~ kCWSte yert Ofksa Oosts as set forth bskcw to

five (48) deps frw the later of tbeof reoec4kay of thks Oc40r. Tbokoa Ooets for the ceb90ot Drilliny

.I0Ckaat04y Ooaplet04 foc Prodeotkon Oootsc

8244, 990.00

b Pact/ eiystkay Operator 0 v -~ kenate oost heresadsr shall bs thereenkt ohl101004 hp eall kpkpksy Che Partkokpatiag Operator e ~

of Sakt ao 00C )Cwhb ka Dshkhkt 8 tkese Cho seats statedI weaselly Oo]P SheCW Pyyaae ac eaaec. ~

~ that in the 0Vaat apsrtko. yackay 41yereicoc ekOI,180 hs yartkskyato sad fails or rafsses toysg cl ~ eeckeece ef bks ', ~~ ksaete yart ef tho Detiasted,Oesyksled-fec prachwkos 00 asc forth ohcwo, all vkchks tbetkas ec t forth haseka ss4 Q che ooaaar yceeockhed La pa 8 ofthks OI dere Ches eeoh ysrtkokyat Operator shall be =- %4 have~kooteCi aet CII pertkokysce sad Co 0100804 ooapeaeetion in lionof ysrl kokpatkoa pecsasat co psrsocsyh 9.2 herein.

Sca awyok~ 0 aoob ~ yy ~icycac ln 1kos afyarckolysa is che devskdysdac as4 operation ef seh20oc DrillincDakt Irrksr Parayrsyh 9.1 ehcws, eaf Oso or oil cwse1 nosed in

8. akocyt1oca wyd ~trna Cevlccdc Xa tbe creat sap 900 Or Oil CWner00004 ka yahkhkt 11 hao aet hhretefere'~ a Velantarg ev ——-- tn Share intbo eyoretkea of the sell to he 1 kn ¹drleet Drilliap Dskt at 0 rate ofpskawt wtsskkp 149raed ta hgg said or okl ~ asd ttw Oyorator, thea seobparsee sag sleet ceo ef the oyckoas. fecch ia pocaycsyh 9 helcw end asst okvevrkttea astkao sf his skestkea ef the'ytkea selected aadec Paw 9 bocciea aa ~a eyeaaaee aa + aaaaaaa aaaaa aalea ~aa aaaaey (aa)days fria 4¹ 40011 thks oc4ar ke —

kn tha oeescy shave assed. 8 tkasky~lootkoa shall he Ce have heoa if, ea or tho last day of said, ea¹ 010etkay c- --- dslkvvossd his mkttoa ekeotksa Co the400'~ Chskt 4140040c «C Che —sbssa hales or has delp ~~ sadeaaeaa aaa aaaea aaaaaaaa a eaaaa T~ aaaaaa aaaaaa aaay. «ahaE yeayaaa.addressed to Chs 1lnkt Operator at tbo'¹lress sheen bolcnc.

800K 783 PAGE 555

Onhil it 4 who bas not reaobed a voluntary ~~ with tbo09000 cec sny skeet to soot»c 0 nash boson oonskdncatken of 9$ 09 porsat ~ Lascal aors essed hy sash »oreest:::-Ls» 0»en entry of this00400 004 esatksaLa» «lsnhlly eetkk::: of Sen tronorh300t ockkkka» oskt,,nr}4 iilcoehsdbnc a rs»alty ot ~/4th ot 4/OtheItwslee nad ~c -- - -- Il».40)) of tbs aet ——::—:—neosiredby th ~ oakt o»orator ~cake of ths ons ~~ t~ aay 0011~eo '~ ——

biy I}hks 49400 ssktkykksd by the »00 or oil~' ~eeaeea at eetIa ~ taaea t aaateta ~ la per eeeof this ordsrt not o::: rbskl hs osteal r-==::: resolved less- IEaMwakos sects donsetrem of the wslkbesdt

10lln», hst not llsL tst »atherkn»t ~~Lost trestle»ttense )srcatkes asd serb»cks» ooecs, sbstber yerf essed hy onktO»sealer or a thlr4 -- —-) as fake, I ~10 an4 0»sktnble

loa to hs ~ eal4 '»00 or oil onner. The knktkak onahshall::::::400 004 osis» when 00 olooted aad shall be~ —— —=-, Oskd sc esse within slaty {$0) 40ys of reosrdkn» ofthL0 I lr40c. Tiwsesdhert ~ sash honooest lt nayt shnkk beooesdns «SI cess» es each oss[koecsnry ot tho deco of —-- Peg of thl, ~ecdec la ths ooent ~~-Los trsS Okfoot Orkllkn» Snit has nottbsr«sdose: —:=—=, «)4 oars 400, shall bs ~, yakd or

ektbkn okoay loo) 4040 et saL4 ssnkrecenrY 4acs. Isles theknktki Ik sash henna 004 tin) assnhk onsh ~, kt as9, aso eo paidoc, 0044 ':[0) sbakk ba satisfaction Sn talk tor the

t and olaiss ot cosh eksotks»»00 or oil ssooc lnast CII tbs Oae ~~ fels ~ 3»ssshkon Ls tbs oehgeca loads,~ t beweosrt Ae the,i/4th royalties dso be ~.Tbo eieotlos sado aa4sr tbks 9000»ra»h 9 2t eben so s04e, shall ho~acksiaotkon la foll toc ths r, lntecests, aad okaksr of enonsleet) st 400000 Ls asy tsolA deoo=~ aa4 04aratken oeoered hereby~04 elsh ekeetkn» ——-- 1 hs —te 004 hereby 4000 leaseasd ssd»n kte rk»btt oink«0 Ls an4 te tbs oae

Lea La tbo Oohfeot 4Lillin» Onkt Ce theInkt $ 40cster.

9,3. mr~ I eo stone In »no ~~ nial ~ton no k. stmt-tet t~a~ nenetto ~ 4 Staeeensa ~~.%sntto$ $nn toeeete4~ ltttt

In xasa.sr 400%I ls k)tdsI ef Ti04[~dbkn» La th[0 400 ~ aa4oit~ Ockkk}ks[) Sii4c sa 900 ~ 9.1 absro 004 in

kkee I f reeskvka» ~ eadb,beans ~~atkos endor yer 9.2nbeoot osy »as ec okl »seer obo bas net resshed 0 rok14lgary

with the O»000$ 0)C S«y ekeot to share ia the der«bi tasd 0$ 000OL00 ot »eh~ Orkkkks» »sit os a carried hsdks )as aoarrkn) Nokl --~~) 00 tbot tho ~Sonata yart of tbs~fr=- wtkils obdcs hereby alt~I to snob »necked oskk

Irt ~ l~~ ls ~a~ Snob Onrrled Nnkl O»sasgea" ~~~ t~ ~J Ockllkst »sit. »sob Oncrk«4 %011Ot«0«hlr' rk»hbot '~iot asd ~ ia and tn Cbe 400 la—;Orkkkks» Oskt shak)} bs — ssd brsshy nce 00~4~ ts tbell ths ".':::tres tbs sale ok'ooh decried »nillbaml 'a~ etteeeaaaaae trmaASwa e tlttet tata Naelael~t eet teaetat eeeee ~ e eaetetee aetetateaate ,ateaaht~tae eeetta ta eat teeee aaa'aeeeetoc ~~ rokatka» ~ oereckn» slob knanreet) ~lr throe

— ' ———- IOOOC} fer is ~ innocent oc too —»accentIt»»t} I}ec 00 '~ knt}crest Ivilkeboeec lo 0»»lieahks) of ssehonccksi, %01k ~ster' 04090 of ths n l~fo~redestkbs »setsnkkoerkos to ths knteoeet Q sash »arcked wskk o»scwcer. Obnn tbo~ata tan ~ —— eee~ ~ ~ e ~~tt eeteeeee ~~~4 lsteseet tiKs ~ jcerkdsd toc abrwe, thea, the assi»sndLnaecel t ot sech oncrkod ~1 oonrottlc shall sntosatioally roosrt

bacdc to snob Oarrie4 Well Oyoeater, aa4 fry an4 after snobrevet siss, sash oarriod Ilail otec shall hs treated as it it badyarti oiyeted initially adder 9.1 shovel and tlceceaftsr,~eoh yastLOLysciao yeceeo shell lcs with aad shall yey his

~ ieaste ynrt ot all, farther ooste ef snob well dsveleyesat.

fbe ~ lescien sade endor bbLO pnroycnyb 9.2, eben eo n«lo, sbalx bo~eciolaetioa ia tell tor,tbe rifht, Lscere~, aad oloiccs ot snob~lest leo ye«sea ia any wslll 4$$ c~ an4 operation oovsc«l herebyned ~ eeh el+ctiny .~,shall he:—te been nad becehy 4sosaesioc his riyhc, Koseslhs, an4 olalee la aa4 to ths oas y~~fea ~ yooseckes iic ths yab2ccct brillino onit to the snitoyeco car ter ths pecked ot ticcs cbiriny wbioh his interest is ooCCLed

cd svo provided prior 'o its reversion basic to snob olootinfpecesi c

11. ~» nc sovcc ~c ~c In ths oveat a person siesta topnrtioiyato adder yb - = f.l, Wit ifdiie or retaoes to yay, to seeece tboyefcnnst or to Often an er ... with!Chs yaLC~SCOC for tho ~ ot seob

~ yw~ pert Of tba yCOI48Cbed ~ ~for ea~SO~et torch bsseia, all wLChia tbs tbsei «$4 ia tbe ~ as yceeeriho4 La thisorder< thea snob shall hs, to have withdraccn hie eleetina toysrtieiysbe coed ebi XL bs te have sleeted to aooeyt as sacisfaotien ia fallfoc «ceh =: ='i I rioht, interests sa4 olaias ia and to tbs oas theooesldoraCLOO ycevi4$ 4 La par~~ 9 shove toc whish hL$ interest Oaalifieo

Co Oa the ~ CO Sech LCCCOCOSC. Obereeynn, any eaabbeans ~~Lac dne as a $$«clC sash:::: slestien shall ho t=-~ M =::~ r ~l WENa allot IIII Ihys atter ~ l~ CslWhich sech 4$4ealtI OO yereOa nader thl OCOSC ~CO haVe yaid his rr—— innatepart ef sech iieet I ir have esdll Lotoetocy orr: ~ tccr tbothereof. lycee sec t oseh hoses seas «ties l,s or oeerewed, it shall besatiodsetioa Lo ta.l tsr tbe ribyht, ~ ~ olaiccs of «coh yersoa La andto the oae ondecly> ay osb2est yrilliaoPaht in ths oab2est Loads severed heooby,~neeyC,:——,—,ier any 1(yth los whish woold boooao doe porooaat toparayrayh 9,2 ber«It.

12~ Rane~ saak of T~~ c a tbe eveat a yoreen yoolod hereby is~here ia the oyeratina of tbo well~ to eetwally by said yns

paesan eloace oc fails to sleet to 40~heibe Ln tbs develoyaont an4 operation

~eeh yersen shall he:: to haver sash person' riflitc LCItareeCSc and

Ln So@Jest OCLLLLOO iiait, nadwhich «coh r—- - — eay be oatitlo4 by

Loa ~~ Ln aooordnnoo with tholeotiono.

unoblo ts ceash a vc@nncary ev'~9 toooncoeylacad by tlLO seder at a rate of ~or OL1 owasr and tee Operator, andother then ynrtieiy cte ender yacnygoyh .1of ths wall in yebi est yrL\li«y ynit, theaand shall b«co asa1 anbo ynit selaine ia oe4 te $$ N well, LO Oahother share in snd ts Oas c 'oa~ ef aay election OC ~yrcNFLOLoao oi'bL ~ or4ec'evornino said ~

14,

~CCRC+

~ to n~rLV ~C 1a tha OVent a Parson tails to Oleotwitbia tbs ties, in the «hod'er aey'Ln 4——:—with ths tonne of this order eneof the altosestii iee set tartb Ln ~ 9 above ter whish his Latooeetoealities, thea «ncb c — Chal) hs . hs have sleeted not ts ysrtioiyatein ths ye ~ dc ccdloyssac oed ~ion et AAvjeoC brilliny chLLt aa4 shall bo:::,sic~ CII aey final ~,Cnotiea ef C«aersbiy, tO bnVO electedto aoeeyc as oscintaeticnc ia tall ter cessna' rioht, Lncoreecs, aa4 ololesln aad to ~ oao ebs eensidarecioa Lded ia poraycsyh 9.2 abave for whish itoLnteeest Onalitiec nn4 shall be: —:!to baca leased an4IOC assiyaed his rifht,Lncecaocs, aad ol cies La nnd to oas La the 4 Drillino unit te the cbcitaysrator. ——-- wbo fail te yceyec y sleet cdlaW be dssnsd to have aoseyCodtbe::::MLOO ~ cnl tasse sec at pareorayh 9.2 ia satisfaction Lntell ter tbs CLOttc interests, Oed dlakne Ot sash yersen in and te tbe Oao~~ t~ os&Jest yneascioa an4$ rlyinf seb)eot Lands.

B0GK 785 PAcE 55713, noit ~~ lor asasatas 1 0 OOALtsbls Oasoscooo Oaploration be and

hereby is dseL~ 0 + ss onit oysratof astbscised to drill sad ooerato osll oo.v-2300 in 4shgeot yeseatioas ia Anlr)sOt DrillinO oait, all sob)sot to tbo tyrooiekoas «sstaiwd ia destine is.lM1.27 Oh ~, osds of vicoinia, 1 as

00 ~l 02.1 Ob ~.> Oas aad Oil ieas aad 00 4CH8-22.2 Obgm., v Osr asd oil atiees, al as -- — fram ties to tins,

all lens ssosirsd hy this shall bs ~Looted to onit 00scatorin eritiaO st tbe sheen helens

OOritsh)lo I%wows Onylorationye 03000 ~ Obese uriwr'--:--., 00 39002yhoSsc (010) 220 3000

I010) 224 3092kttas beanie R. Ocher, heOulatory

14. = or ~™~sOait eyecator shall —:.:—::or easesto o:— " Jess fac the dr03XSI)o sf any «sll ocniesed ho sithin thewbnadred aad fisc I300) freaitho dose Of thin OC4ar aa4 shall r—~tethe arne oitb 4ss iILLLOsnw. If Oait ~~ shall aot bere so:——:--:aad/or

Oboe 144a Os4er shall ~'~~i fer any saeb ~ hasIMlllg:i «hhefsisa salons 'sooner ~~r~ by Order ef ths OeardOei0nr shall <~ st 12AOO P.N.'a tbs 4ste oa shish aay eall sneered by

this Osdsr Lo::-- ly::—— 01~. ——=-.--, La ths.event aa ayysalis tahw f~ thiii order, than ths t:: ths filin0 of tbs petition forn 'ad the final Order ef tho it Oeart Shall bs ansln4sd in Oalenlatin0tbs ono year Oerlc4 refecenosd herein.

Oyss ~letioa of aay 1 shoes oosts ~Lw sert of tboOstiissted ~d fc~redsetion s set forth ia Siaraorsyh 9.1 show, and«Lthin ninety (90 ) 4ay ~ sftoe Lon Lass tbs 340al Ls ohtoLaad andrestscshiea sf tbe leentioa is , tbe 00erator shall filo «Ltb ths hearda revised eshihit reflestinO the 1 Ooa$ 4orod-for-yrodaotion Costs for theSob2wt OrilliaO Knit.

10. = ='o Slane Oait etor, in addition to tbo other riObtsafforded ~, shall haw a lies ~ rioht ef oot off oa tbs oas estates,riohts, and isNra das essed by any 0ecsea ssb9eet hereto obo siesta toyartie00eta na4or Iar 9 ~ 1 ia thol Ash5eet orillia0 oait to tho eetent thatoosts Laeerasd ia the 4rillis0 ar sOsalatios es tbs Osh5iwt orillino oait are aohao0s '~ seel) s- ----'a ks)teswt. Osob liens and rLObt of set off shall be~eosrah3 ~ ss ts ~ aeb soosraee Oeeeen aad shall mesio liens setil ths oaitooeseho» dcLSLLno rr ~ anr ss31 hereby has hwn yaid the foll~assets 4so seder Ae terna of s Oeldsr.

16~ ~ Soooinioosg

10.1 — —s Oy this Os4oc, the honed Lnstroots tbe Osoros AOent

assed bessie er asy eaeodseer nosed b~yOsard to establish aa interest~iso, Ihc rsL .the --——

l t ~Lw aad aowsnt to th ~yorssaat to its ~~ fer tho osscosad fends hereafter deseribsds

Taeenoll oatioaal Oanbr. O. Oae 900Taeesa14 Vh 20001{bowie "Osoros 00snt" )

102 ~ owioiooo .aoc~or IhEE~~> m noooooo g 1f any paysontof bones@ roydfty N ig 2 or other loons)ot dw and cwino endor this ocdor oannotbo sa4o~tho ~~ entitled sanest bo looato4 or Ls sahnosn thos~oob sash bases, royalty Osysest, or yoyaont shall not bs c i~led sitb

BOOK 785 PACE 558

aeg feeds of tho l ait lmyoccker and shall, yersssnt to Section 44.1-361.21.0,codeot VLOSLOLO, 195C as,——,and OOL4 ~ shall hs 4ayosited bg tbe Oyeratcrinto ths c ~S~,:—::Laywkthin OLOCP {60) days ef reserdiay ot this~g aad ~~~'+~ ~~ ea a ooohblp hooLo 1th each deposit tc ho aodeg

tiwa 40eoo Ot a reycOI I tOOSOC hhcw hy 'Chci ~ ht a 4OCO llbich is ac Later

OLOCy l40l digs ~~~Let ot Ohs sooth ~~~ aad/or forwhich tends are — ~ to t. tends shall hs hold tor tbs ~lnsivecos ot, sad soke 'laoetLC et tXe entitled thereto ascii sash tea4O oaa bspaid te each rw ~(S) Or natl.l the hyeSC reliayaishse OCOh tends ac~Lred hy Lew sir y osoc to dodec et ths scar4 Ln accerdsaos wich 4 6$.1-361.21.0.,OO4O el VLryinia, 1940 as .:—:—:~

11. Onooi al 94aa4 I Ths heel specifically aad specially fLndoi

kyylisast is ~ dirLOLOO ef SSOLtable Soo«arose Saeryy ~~, acosyeInc+ dolt anther ead onalifiod tc transact Cosiness intbo r ———-1th ot v

17.2 Syylii «ot claios ownership of yss leases on 99.936 percent ofsrLLLLOS Snit asks ths riybt to onylore fcr, develop and

prode«Oes fry« ~.11.3

11 6

11 5

hhhhh Wh hh Wehhh h hhh Ah.h h Vhhhhhh W h~atisI,'led tbs heard' reohircoeecs ter operations La viroiniag

Li eat hoo ~:::Cbe drillins of Soll sc. v-2314 ca tboj« it Qriil1 lay Snit tO dcwslcy ths pool st Oas Ln Ocb jest

peoeoi iona.

~OC beth Ln Sobihl.t S io the aSoe a«l last bassa a44ress of eachpars«et IIocosd LdoooifLONI hg ths hyylicaec as yas er oil, coal orOLOO«1 ~ h Lsslediay those rh ~ who hans an iatereot La tbooos LIi sohjecc srill SOLC eodor1pins awl cceyrised et oabjectLands of which .066 ~LOO cnlossed bf cr to tbe Operator.

11.6 Vhs 4cyCh of WLL So. V-2310 Ls 5,100 fest.11.1 The ectiooCod yredsstioa seer Cbs ll.fo of tbo Lircpcsod wall is 600

~Lilic a cabin teat.11.4 h Wall Wsrh yIOOCLC tsr calli Vr2370 LO Cerrsatlp pendLOO bofors tbe

Viryinia l Ita«A of Nines, XLnerals an4 Sneryy.

11.9 liyylic sat' evidence Liohod that the fair, reasonable and«Soito tie c. ~Clos co yo paid te any yersoa in lieu of tho riyhtto yacIILO Ln ssg well ~~~~ Corehf are those cyticns proridedin pari 9 chere.

11.10Vbo Oe7ject Srilliny Pal,t 4see neC ccnstitnte as uarosocnsble cr~rbitriIrt acies of Syyliccat' rlobt to orpiece tor or'ccdecoOss

11.11 tbo re lief -~wd and Scented l.~ jest and r ~4LO, ised bt oehsteatLOL OCL~ aad will attord each yerooo ia tbsOah, SOLLLLOS Salt tbs ~soitp to ——~ cr reoeice, witbont

~aeh yereaa'eoc and fair obese of tbs~= ion W che oso and/~ OLL tees ynbjoct yrillinSi Snit.y ef, Lcotioa a«l a%lief ———:~thcreia will oa««e

Oil, c'r OSSLOC ia c -- Lay tho Varieeo tyyao Ot Wasteprohibited by otohcte a«l Soetect or assist Ln yrcbsotin9 thscorrelative riyhCO ot all Screens Ln tbs «Ibject eamon sccrces of

BQGK 785 PAcE 559

Tbeeafoee. the hose is ~~gsliof heeaia eet foeth

hsfcllooat og ite httoeaey

syhae tbs csf ~~ of this IN45I ebcchlccs hhsh s tgcca ss4 sseeest osfcy oy~s14 ea4a~e ~«~ ~c% seam Q) 4asa fsaa tha 4hho of eossiyt of thisOrcbce to e - -- ysols4 by C4cla COee eAWwca i- —is haecca.

~0 ~ ' ~: laUet ~ Mly4hw4skeas sfh faith Shocco he ss4 ~g sea Sesahsa seel IT Is sa .~

SL. ~'«ccs assoc This ae4ee shall ho effsotivs oa ths 4aiw of its~cceeetioa.

this ~ chef ef ~:-,1094, hys mjecity of'be viesiaie ase sa4 OLL hose4. t'l

thLO W 4ey of l24kR~Pae4se of this'OOI 4.

Ta Ths Staff4ae sa4 all hese4

1%%4, hy

IS. ~™cc~~ ~ Tbo bL" ~X SesccL4O sll yeeeeae

ast ~Wh Ihfwe Nghb' !::,Oaall — — 4ee «Seilliaychcit ebLeb Sea cehicL~ icy ebs Oeit ~e to sal4 sieaetee ss4gihe hieI~:=$o) e

ccscsfy MME )

~ hebe% AQt cscetea 4L4:— sa4 that hs 1offtha VLai4sla 4si ia4 sill 1 af, that aeseebccl the ~ se4 ~ setheeiss4

ad~~YOi ~

iiy o «~Lea eccfcicss 7i/31/SS

80DK 785 PAGE 560

~arm@ l

sa, Shia W aov ot 1904'sseeaoll,t~.ao h aesaoy yel44e ia sas Sw'hho ——:::lohot Vkeyiais

htsha slhass,seas, hslsI mesa 444::aas oat shah he ieHuis~ ~>so ss she chait ec ase sea Oil hosea, Shot hssaseehsa she eshe shs ~ aeeheeisss ae.

se4ssy pek~4io

Ng easeieeLea eaI iree 8/30/97

l

~85 PAcE 561

Wk Of CQ. Q0P a 100r20 ~-0 INC ~Sfe 0~~~&1~

wctu. unde wp

Wow 0 08k %she lrlone)N 247JSOA5 E 802,151 00

@SNINA' ==~lmreue e Wee l0e-1lln07 l40-OWNY a UpnR QgkF f~ IR1n0r ~ le o neo Nel x; on oeOeeeO ~ . gg o +ng ylaN iA+

+ 0eneheo tho leeo0en ot I wo2 on lakes'gehoe ~~ 1Aeye, cocle 1Nr'4400.laSuee orwl lenlgode %neo bean~;-- —-----

07 ~ 2nee enenn. le 1S792

SOOI 785 lICE 563

INTEREST GROSSACREAGE~STATUS UNIT IN UMT

Vlrglsta irea, Coal R CekeP. O. Rot 1871Roaaoke, VA 2400$ATT¹ R. G. Potsgexter, VP R

geaeral Masager

Leaeeg- EREX 87.315% 109.719223010L.01W.l. 189

Vhghela I roa, Ceal R CokeP. O. Rex 1871Roaaoke, VA 2400$ATTNt L G. Polagexter, VP R

I Ieaeral Maaager

Leaeeg-KREX 3.975% 4.995223010L-01W.I. 135

Vlrgala I m, Coal R CokeP. O. Rox 1071Rea6oke, VA 24008ATTN: l. G. Petagexter, VP R

( 'eaeral Maaager

Leeeeg- EREX 4.706% 5.914223010L-01W.I. 105

Vlrglsla 0 ea, Coal R CokeP. O. Eox 1871Reaseke, 'A 24000ATTN: l i. G. Petagexter, VP 4

6 eaeral Maaager

Leaeeg- EREX 3.$76% 4.870223010L.01W.I. 1S9

Rosahl Sb Bard, WMewerBox 135, 3 gg S. 10th St.Peace, T g 66075

Ualeeeed .064% .0$1

PAGE 1 OP 2 PAGES

800K 785 PAGE 564

TSVkiL

Sf+SA ', gdth Sfsuet

~'~~ gO S/I Sg

xaam~Leuadd~ggggSKOAL-SI

gW,PVIIIGINIA: Iu the Clerk's8floeof Wise Cirduit Court 4~ 19 .his deed was prs septe4pad upon the auuexed Crtifleat'e of~~at adudtted tosaord at C i t 0T M. The taxiimposed hy 58$4+I~e has been~she

,'esto: C.Ga4 Ital;es, Clerk — ~A~~~~ Deputy Clerk

7

FAOII 0 OF 2 tAGES