fir gi/via/ before the gas and oil board · /in/romani prepared by: i virginia gasaivd oilboard...

23
/in/romani prepared by: I VIRGINIA GASAIVD OILBOARD Order recorded under CODE OF VIRGIMA 0 4$. 1m361. 26 FIR GI/VIA/ BEFORE THE GAS AND OIL BOARD APPLICANTS: CNX Gas Company on behalf of Coal Mountain Mining Company and Ernest Keen Heirs including: Ralph Keen, Arnold Keen, Billy Ray Hale, Linda Hale Matney, Brenda Waddle, Carl Lee Hale, Anna R. Lambert, and Elizabeth Ann Justice (previously Ann McCowan). DOCKET P(D. 92-0218-0185-04 RELIEP SOUGHT: Issuance: A Supplemental Order for Disbursement of Escrowed Funds Action: Amending Prior Orders Affecting Drilling Unit SLW 7: Tract 31 (Referenced herein as "the Subject Drilling Unit" ) Location: Buchanan Countv. Virginia Action Details: (I) To provide a calculation of funds, Unit Operator has deposited into the Escrow Account for Drilling Unit SLW 7 by Tract Sub-accounts; (2) To provide each applicant, in simple terms, a complete month over month Royalty Accounting of unit production, costs, taxes and proceeds, depicting variables used in the calculation of royalty payments to the unit escrow account. (3) To disburse unit funds to the Applicants, in accordance with their Unit Ownership Interests relative to those funds deposited by the Unit Operator into Subject Driqling Unit's Escrow Subaccount for VGOB Tract(s) identiTied in Table l. REPORT OF TBE BOARD FINDINGS AND ORDER 1. Hearinu Date and Place: This maner came on for tinal hearing before the Virginia Gas and Oil Board (herein "Board" ) at 9:00 a.m, on January 18, 2011, at the Russell County Conference Center. 139 Highland Drive, Lebanon, Virginia. 2. Annearances: Mark A. Swartz of Swartz Law Oflice appeared for the Applicant; and Sharon M. B, pigeon, Sr. Senior Assistant Attorney General, was present to advise the Board. JurisdictiOn and Notice: Pursuant to Va. Code sssx 45. 1-361. 1 et seq. , and in Particular Va. Code 8 45. 1- 361. 21 and 45. 1-36122, the Board finds that it has jurisdiction over the establishment and maintenance of an escrow account, with tract subaccounts, for each of the coalbed methane gas drilling units established by the Board through its field rules that are subject to a Board pooling order. Further, the Unit Operator is required to deposit, as applicable, those funds specified in Va. Code I 45.1-361. 2I. D., 45. 1-361. 22. A.2, 45. 1-361. 22.A.3 and 45. 1- 361. 22. A. 4 into the applicable escrow tract subaccounts. The Board finds that: (I) while it does not have jurisdiction to resolve conflicting claims to the ownership of the Coalbed Methane Gas produced by the Unit Operator from wells located on Subject Drilling Unit, and (2) while it does not have jurisdiction to interpret ayeements by and between the Gas owners/claimants and/or the Unit Operators or to abridge or contravene the provisions of such agreements,

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/in/romani prepared by:

IVIRGINIA GASAIVD OILBOARD

Order recorded under

CODE OF VIRGIMA

0 4$.1m361.26

FIR GI/VIA/ BEFORE THE GAS AND OIL BOARD

APPLICANTS:CNX Gas Company on behalf of Coal Mountain Mining

Company and Ernest Keen Heirs including: Ralph Keen,Arnold Keen, Billy Ray Hale, Linda Hale Matney, BrendaWaddle, Carl Lee Hale, Anna R. Lambert, and ElizabethAnn Justice (previously Ann McCowan).

DOCKET P(D.

92-0218-0185-04

RELIEP SOUGHT:

Issuance: A Supplemental Order for Disbursement of Escrowed Funds

Action: Amending Prior Orders Affecting Drilling Unit SLW 7:Tract 31(Referenced herein as "the Subject Drilling Unit" )

Location: Buchanan Countv. Virginia

Action Details:

(I)To provide a calculation of funds, Unit Operator has deposited into the Escrow Account for

Drilling Unit SLW 7 by Tract Sub-accounts;

(2) To provide each applicant, in simple terms, a complete month over month Royalty Accounting

of unit production, costs, taxes and proceeds, depicting variables used in the calculation ofroyalty payments to the unit escrow account.

(3) To disburse unit funds to the Applicants, in accordance with their Unit Ownership Interests

relative to those funds deposited by the Unit Operator into Subject Driqling Unit's Escrow

Subaccount for VGOB Tract(s) identiTied in Table l.

REPORT OF TBE BOARD

FINDINGS AND ORDER

1. Hearinu Date and Place: This maner came on for tinal hearing before the Virginia Gas and Oil Board (herein"Board") at 9:00 a.m, on January 18, 2011, at the Russell County Conference Center. 139 Highland Drive, Lebanon,

Virginia.

2. Annearances: Mark A. Swartz of Swartz Law Oflice appeared for the Applicant; and Sharon M.B, pigeon, Sr.Senior Assistant Attorney General, was present to advise the Board.

JurisdictiOn and Notice: Pursuant to Va. Code sssx 45.1-361.1 et seq. , and in Particular Va. Code 8 45.1-

361.21 and 45.1-36122, the Board finds that it has jurisdiction over the establishment and maintenance of an escrow

account, with tract subaccounts, for each of the coalbed methane gas drilling units established by the Board through

its field rules that are subject to a Board pooling order. Further, the Unit Operator is required to deposit, as

applicable, those funds specified in Va. Code I 45.1-361.2I.D., 45.1-361.22.A.2, 45.1-361.22.A.3 and 45.1-

361.22.A.4 into the applicable escrow tract subaccounts. The Board finds that: (I) while it does not have jurisdiction

to resolve conflicting claims to the ownership of the Coalbed Methane Gas produced by the Unit Operator from wells

located on Subject Drilling Unit, and (2) while it does not have jurisdiction to interpret ayeements by and between

the Gas owners/claimants and/or the Unit Operators or to abridge or contravene the provisions of such agreements,

(3) pursuant to Va. Code 9 45.1-361.22.A.S, the Board does have jurisdiction and authority to disburse fundsfrom the Escrow Account provided the Board has been provided with a final decision of a court of competentjurisdiction adjudicating the ownership of coalbed methane gas as between the conflicting claimants or an agreementamong afl claimants oiming conflicting estates in the tracts in question or any undivided interest therein.

Proceedinus:

4.1 A) On April 29, 1992 the Board executed its order pooling interests in the Subject Drilling Unit for theproduction ofoccluded natural gas produced Irom coalbeds and rock strata associated therewith (herein "Gas")in accordance with the provisions of Va. Code SS45.1-361.21 and 45.1-361.22 (herein "Poolin Order" ). ThePooling Order was filed with the Clerk of the Circuit Court of Buchanan County on May I, 1992, in Deed Book390, Page 666 to 676.

B)The Supplemental Order was executed and recorded with the Clerk of the Circuit Court Buchanan County onJuly 18, 1996; Deed Book 451 Pages 172 to 182.

C) On Junc 4, 1997 a Board Order was entcrcd VGOB Docket 97 0415 0576 (aka 92 0218 0185) and recordedwith the Clerk of the Circuit Court Buchanan County Deed Book 463, Pages 203 to 207.

D) On May 23, 1997 a Board Order was entered for VGOB Docket 97 0415-0576 01 (aka 92 0218 0185) and

recorded with the Clerk of the Circuit Court Buchanan County on April 29, 1998, Deed Book 475, Pages 367 to374.

E) An amended Supplemental Order was executed and recorded with the Clerk of the Circuit Court BuchananCounty on July 14, 1998, Deed Book 478, Pages 623 to 645.

F) On November 2, 1998 the board executed an Ammended Supplemental Order for VGOB 92 0218 0185 01.

G) On August 20, 1999 the board executed a disbursement order for VGOB 92-0218-0185-02 for Tracts 30,4 I B and 41C.

H) On November 16, 2010 the bowd approved a disbursement of funds relative to Tract 33, VGOB Docket 92-0218-0185-03 and was recorded with the Clerk of the Circuit Court of Buchanan County on December 21,2010, Instrument Number 100003364.

4.2 To the extent claims to the Gas were in conflict, pursuant to Va. Code S 45.1-361-22 payments attributable tosaid conflicting claims were ordered deposited by the Unit Operator into the escrow account established by the

Pooling Orders (herein "Escrow Account" ). According to Pooling Order and testimony, the coal estateoivnership interests of Coal Mountain Mining Company and the gas estate interests of Ernest Keen Heirsincluding: Ralph Keen, Arnold Keen, Billy Ray Hale, Linda Hale Matney, Brenda Waddle, Carl Lee Hale,

Anna R. Lambert, and Elizabeth Ann Justice (previously Ann McCowan) in the Subject Drilling Unit were in

conflict and became subject to the escrow requirements of the Pooling Order.

A3 The Unit Operator's Miscellaneous Petition, a copy ofwhich is attached to and made a part hereof, states under

oath that Coal Mountain Mining Company and the Ernest Keen Heirs including: Ralph Keen, Arnold Keen,Billy Ray Hale, Linda Hale Matney, Brenda Waddle, Carl Lee Hale, Anna R. Lambert, and Elizabeth Ann

Justice (previously Ann McCowan) have executed a split agreement (50% / 50%) with regard to Tract 31 in the

subject drilling unit.

4.4 The Unit Operator gave notice to Coal Mountain Mining Company and the Ernest Keen Heirs including: Ralph

Keen, Arnold Keen, Billy Ray Hale, Linda Hale Matney, Brenda Wcddle, Carl Lee Hale, Anna R. Lambert, and

Elizabeth Ann Justice (previously Ann McCowan) that the Board would consider this disbursement

authorization at its hearing on January 18, 2011 and consider whether to: (I) amend the Pooling Order toprovide for the disbursement a portion of funds on deposit in the Escrow Account attributable to Tract 31identified in the attached miscellaneous petition (2) delete the requirement that the Unit Operator place future

royalties attributable to said Tract 31 relative to the interests ofApplicants identitied in the miscellaneouspetition in the Escrow Account, and (3) continue the escrow account under this docket number because there

are other parties in other tracts under this order subject to continued payment in the escrow.

4.5 The Unit Operator filed the attached accounting for Subject Drilling Unit's Escrow Account with the Board("Accounting" ).

2

gindinust5.1.VIL Code 45.1-361.22.5 provides:

The Board shall order paymeni ofprincipal and accruedi Dieresis, less escrow account fees Pofff iheescrow account to conflictin claimants within thirty days of receipt of notiffcation of (i) a ffnoldecision of a court of colnpeient jurisdiction adj udicaiing fife ownerslfip ofcoalbed fnethane gas asbetween fhenf or (ii) an agreenfent anfong all clafnfanis owffing conflicting estates in fhe iracis inqrfesfion or any andi videdinferest therein. The anfounf fo be poid fo the coffflicfing claimants shallbe deterlnined based on the percentage ofonvfership im crest of fhe conflicting claiof ants as shown in

fhe operator's suppleafenfal jiling fnade part of fhe pooling order that established tile escrowaccofmf, tile operator's records of deposits auribufable fo those tracts for % hich funds are beingrequested, and ihe records of ihe escrow accofefi for the coalbed mefhafre gas drilling unit. The

interests of any cofenanfs who have nof entered info an agreenfefu shall renfain in fhe escrowaccollnt.

5.2 Applicant has certtTfed and represented to the Board that:

(1) Coal Mountain Mining Company and the Ernest Keen Heirs including: Ralph Keen, Arnold Keen, BillyRay Hale, Linda Hale Matney, Brenda Weddle, Carl Lee Hale, Anna R. Lambert, and Elizabeth Ann

Justice (previously Ann McCowan) have entered into a split agreement (50% I 50%) and are to bedisbursed following the percentage in Escrowed Funds based on the ovmer's acreage proportionate share oftotal acreage escrowed.

(2) Net interests anributable and to be disbursed to each Applicant is shovm in Table 1,

I'GOSAPP dDI0 I IVDDIL92 OIIOMLG04SLW I

Tbl I

FD A I spll a «I "ofli I Amm I A a MF 4

D b~

T o Dhb IThl

6IA405

T~OI du C31 T~OI do C .u S A C ddm 670D A *R d. SW. D

RMK n31 R I hK fD IDfb 6 I tl S Sl* II ' d' IMI31 ti IGK 9 0 B 475. K u VA 462431 Bol R lf l*PD.B 3n. n 2 .VA 246M31 L d R I II I .P 0 8 7 S.P d hlo. vA24G3731 0 d Wadi* P 0 B I05. CM BI KVA24M931 C dl D I P 0 8 330.P d lao. VA 463731 A ILI GMIDG 14th d I Ih 0 SIA II

'41 IMI

31 8 bol A I I I M A GILC LP 0 0 GIT. R*MI.VA 242M

I IS

I /5

1120I/20

1120

InoI/5175

0.1354003390.03390.0339tl.0339

5006 00677 01051%GotPG 0OIG9 OOM3%50 tnl 0 0169 0 0263%SO O 6 0 0169 O.OZMM

50 tPA 0 0169 0 tl263%

0 1354 50 tPA 0 0677 0 1051%

0 G770

0 406. 500% 0 2031 0 3152%

Relief Granted:For the reasons set forth in Paragraph 4 and 5 above, and based upon the Accounting and Table 1 above, the Escrow

Agent is ordered to, within 10 days of receipt of this executed order to disburse funds for the unit and applicantsdetailed in Table I above.

Exhibit E to the pooling Order, showing owners subject to escrow, is deleted and replaced with the Exhibit E anached

to this order. Further, the Supplemental Order filed in this cause is hereby modified to delete the requirement that

payments anributable to the conflicting coalbed methane gas ownership interests of those applicants indicated in

Table 1 be deposited by the Unit Operator into the Escrow Account, and because there are other owners subject toescmw under the Supplemental Order, the Escrow Aaent is directed to continue the Escrow Account for SubjectDrilling Unit. To the extent not specifically gmnted herein, any other or further relief is denied.

Conclusion:

Therefore, the requested relief and all terms and provisions set fonh above in Paragraph 6 above be and hereby aregranted and IT IS SO ORDERED.

8. ~Aeals:Appeals of this Order are governed by the provisions of Va. Code I 45.1-361,9 which provides that any order ordecision of the Board may be appealed to the appropriate circuit court and that whenever a coal owner, coal operator,

as owner, gas operator, or operator of a gas storage iield certiTtcated by the State Corporation Commission is a panyin such action, the court shall hear such appeal de novo.

9. Effective Date: This Order shall be etTective on the date of its execution.

DONE AND EXECUTED this + day of81 xr jq, 2011,bye majority of the Virginia Oas and Oil Board.

Bradley+Lamfertj Chairman

jfDONE AND PERFORMED this ~day of Neer. c.4, 2011,by an Order of this Board.

David E. Asbury Jr.,Principal Executive to aVirginia Gas and Oil Board

COMMONWEALTH OF VIRGINIA )COUNTY OF RUSSELL )

Acknowledged on this g day of /rrf yves~;2011, personally before me a notary public in and for the

Commonwealth of Virginia, appeared Bradley C. Lambert, being duly sworn did depose and say that he is the Chairman of

the Virginia Oas and Oil Board and David E.Asbury Jr., being duly sworn did depose and say that he is Principal Executive

to the Staff of the Virginia Oas and Oil Board, that he executed the same and was authorized to do so.

My commission expires: 09/ 30 / 2013

IP¹~t/ v(M J/V7Diane J.Davis/'Notary Public 0174394

BEFORE THE VIRGINIA GAS AND OIL BOARD

PETITIONER: CNX Gas Company LLC

RELIEF SOUGHT: (I) DISBURSEMENT FROMESCROW REGARDING TRACT(S) 31(Royalties currently being paid underBuchanan No. l SGU, VGOB 98-1117-0697)

DRILLING UNIT: SLW 7

BUCHANAN COUNTY, VIRGINIA

DIVISION OF GAS AND OILDOCKET Noi VGOB 92-0218-0185-04

HEARING DATE: December 14, 2010

MISCELLANEOUS PETITION

1. Petitioner and its eounseb Petitioner is CNX Gas Company LLC, 2481 John Nash Boulevard,Bluefield, West Virginia 24701, 304/323-6500. Petitioner's counsel is Mark A. Swartz, SwAtrrz LAwOFFtcnn, PLLc., 601 Sixth Avenue, Suite 201, P.O. Box 1808, St. Albans, WV 25177-1808.

2. Relief souaht: (I) the disbursement of escrowed funds herelofore deposited with the Board's

Escrow Agent(s) attributable to a ponion of Tract(s) 31 as depicted upon the annexed Exhibit A. (Royaltiescurrently being paid under Buchanan No. I SGU, VGOB 98-11170697)

3. Lanai Authoritv: Va. Code Ann. ac 45.1-361.1 et sett. , 4 VAC 25-160-140., and relevant Virginia

Gas and Oil Board Orders ("Board") heretofore promulgated pursuant to law.

4. Tvne of well/sli Coalbed methane.

5. Factual basis for relief rcouested: Coal Mountain Mining Co., LLP and Ernest Keen Heirs

including Ralph Keen, Arnold Keen, Billy Ray Hale, Linda Hale Mamey, Brenda 'tveddle, Carl Lee Hale, Anna 8Lamben and Elizabedi Ann Justice have entered into royalty split agreement(s). The annexed Exhibit A, further,

specifies how said royalties are to be divided and paid.

6.and correct.

Attestation: The foregoing Petition to the best of my knowled e, information, and belief is true

CNX GAS COMPANY LLCBY ITS PROFESSIONAL AGERC GA COMP LL, P TITIONER

.,: 0;e.nits If. linty'

g SupervisorCNX Land Resources, Inc.2481 John Nash Blvd.Bluelicld, West Virginia 24701

BB

No=I 4LL LCXEE IEE ?L NINE =CED

EXPLFN*TIOII

PNPOIBI ILO INITPNI'Blt LI EPlat I'I PICOINF *Bat ICEOilllc TlcF NIEICONT ilttliEOBNXO FIILO Ll I

NKO FITLO I~ I IILLaallo. P I IT

POFIO MNCON. L PNB.I CINI*laae Fl APL

Ctalll TET OIT \II. OIOEat IIIIII

IBCT IPNI NNO

PINCE PBL P EL

EXHIBIT BPOCAHONTAS GAS PARTNERSHIP

oocxET Mo. voce-ez-ot n - oleoFORCE POOLING

UNIT SLW —7LEEN MTN. t!DODIIIIIDLEeuceMILB couurt, FC

Pooahontas Gas PartnershinBosket Eo. VGOB-92/02/1810186 puree pooling ApplicationPanel by Panel lative Coalbed Methane Uni. tsSLS-7Total Acres - 186.385

Page 1

28. Coal Mountain Mining - TR 2 — Coal, Oil & GasCoal LesseesUnited Coal CompanyConsolidation Coal Companyconsolidation Coal company — Oil & Gas LesseePocahon as Gas Partnership — CBM Lessee27. 403 acres — 14.788

29 coal Mountain Mining Company — 1R & - coal, Oil & GasCoal LesseesUnited coal CompanyConsolidation Coal CompanyPooahontas Gas Partnership — CBM LesseeConsolidation Coal Company — Oil & Gas Lessee3.310 acres - 1.798

30. Hugh MaoRae Land Trust — TR 14 — CoalCoal LesseesPermao, Zno.Consolidation Coal CompanyPocahontas Gas Partnership — CBM LesseeCoal Mountian Mining - Oil & Gas36.788 acres - 19.848

31. Coal Mountain Mining Company — TR 11 - coalCoal LesseesUnited Coal Companyconsolidation Coal companyPooahontas Gas Partnership - CBM LesseeE. Keen Heirs - oil & Gas0.677 aores — 0.368

Pocahontas Gas PartnershipDocket Ko. VGOB-92/02/18-0185 Parce Pooling APPlicationPanel hy Panel Active Coalbed Methane UnitsGLM-7Total Acres 185.385

Page 1

28. Coal Mountain Mining —TR 2 - coal, Oil 8 GasCoal LesseesUnited Coal CompanyConsolidation Coal CompanyConsolidation Coal Company - Oil & Gas LesseePocahontas Gas Partnership - CBM Lessee27. 403 acres — 14.788

29. Coal Mountain Mining Company - TR & — Coal, 0 1 6 GasCoal LesseesUnited Coal companyConsolidation Coal CompanyPocahontas Gas Partnership - CBM LesseeConsolidation coal Company - Oil 6 Gas Lessee3.310 acres - 1.798

30. Hugh MacRae Land Trust - TR 14 —CoalCoal LesseesPermac, Inc.consolidation coal companyPocahontas Gas Partnership — CBM LesseeCoal Mountian Mining —Oil 8 Gas36.788 acres — 19.844

31. Coal Mountain Mining Company — TR 11 - CoalCoal LesseesUnited Coal CompanyConsolidation Coal CompanyPocahontas Gas Partnership — CBM LesseeE. Keen Heirs — Oil 8 Gas0.677 acres - 0.364

Pocahontas Gas PartnershipDocket No. VGOB-92/02/18-0185 Porce Pooling ApplicationPanel hy Panel Active coalhed Methane UnitsSLW-7Total Acres — 185.385

Page 2

32 ' Hugh MacRae Land Trust — TR 5 — coalCoal LesseesPermac, Znc.Consolidation Coal CompanyPocahontas Gas Partnership — CBM LesseeR. Horn — Oil & Gas7.040 acres — 3.808

33. Hugh MacRae Land Trust - TR 5 — Coalcoal LesseesPermac, Znc.Consolidation Coal comnanyPocahontas Gas Partnership — CBM LesseeT. Wade — Oil & Gas15.868 acres — 8.568

34. Hugh MacRae Land Trust - TR 5 — coalCoal LesseesPermac, Znc.Consolidation Coal CompanyPocahontas Gas Partnership - CBM LesseeJ. V. Hale - Oil & Gas0.772 acres - 0.428

35. Hugh MacRae Land Trust — TR 5 — CoalCoal LesseesPermac, Znc.Consolidation Coal CompanyPocahontas Gas Partnership - CBM LesseeJ.D. Keen —Oil & Gas13.307 acres - 7.188

Pocahontas Gas PartnershipDocket Ho. VGOB-92/02/18-0185 ponce Pooling APPlicationPanel by Panel Active Coalbed Methane UnitsSLW-7Total Acres — 185.3S5

Page 3

36. Hugh MacRae Land Trust - TR 17 - coalcoal LesseesPermac, Znc.Consolidation Coal CompanyPocahontas Gas Partnership - CBM LesseeE. Marshall Heirs - Oil 6 Gas0.4475 acres — 0.24%

37s

Hugh MacRae Land Trust — TR 2 —CoalCoal LesseesPermac, Znc.consolidation Coal CompanyPocahontas Gas Partnership — CBM LesseeE. Keen Heirs - Oil 8 Gas47. 907 acres — 25. 848

38. Hugh MacRae Land Trust - TR 17—Coal LesseesPeruse Znc.Consolidation coal CompanyPocahonras Gas Partnership — CBME. Keen Hei s - Oil & Gas0.454 acres - 0.244

Coal

Lessee

39. Hugh MacRae Land Trust " TR 17Coal LesseesPermac, Znc.Consolidation Coal CompanyPocahontas Gas Partnership — CBMGarden Reality — Oil 8 GasConsolidation Coal Company - Oil7.057 acres - 3.814

coal

Lessee

8 Gas Lessee

Pocahontas Gas PartnershipDocket No. VGQB-92/02/18-0185 Porce Pooling ApplicationPanel by Panel Active Coalbed Methane UnitsSLW-7Total Acres — 185.385

Page 4

40. Hugh MacRae Land Trust — TR 17 — coalCoal LesseesPermac, Inc.Consolidation Coal CompanyPocahontas Gas Partnership — CBM LesseeW. J. Sisk Heirs — Oil 8 Gas11.923 acres - 6.438

41.P

Yukon Pocahontas coal — TR 50-3 " coal, Oil & GasCoal LesseesJeWell Smokeless Coal Corporation/ Oakwood Ash Coal Corp.Island creek coal CompanyConsolidation Coal CompanyOXY USA — CBM LesseeCabot Oil — oil 6 Gas Lessee6.55 acres - 3.538

40A. Hugh MacRae Land Trust - TR 17 - CoalCoal LesseesPermac, Inc.consolidation Coal CompanyIsland Creek Coal CompanyPocahontas Gas Partnership — CBM LesseeW. J. Sisk Heirs - Oil 8 Gas1.37 acres - 0.748

Pocahontas Gas PartnershipDocket No. VGQB-92/02/18-0185 Porce Pooling ApplicationPanel hy Panel Active Coalhed Methane UnitsSLW-7Total Acres — 185.385

Page

40B Hugh MacRae Land Trust — TR 17 — coalCoal LesseesPernac, Inc.Consolidation Coal CompanyIsland Creek Coal CompanyPocahontas Gas Partnership - CBM LesseeC. Jackson - Oil & Gas1.662 acres — 0.908

41A Yukon Pacahontas Coal —Coal, Oii & Gascoal LesseesIsland creek Coal CompanyJewell Smokeless Coal CorporationOXY UGA - CBM LesseeCahot Oil — Oil & Gas. Lessee1.93 acres - 1.048

41B. Coal Mountain Mining CompanyCoal LesseesPermac, Znc.consolidat'on Coal companyIsland Creek Coal companypocahontas Gas Partnership-Garden Realty — Oil & CasConsolidation Coal Company—0.76 acres - 0.418

—TR24 — Coal

CBM Lessee

Oil & Gas Lessee

41C. Coal Mountain Mining CompanyCoal LesseesPermac, Znc.Consolidation Coal CompanyPocahontas Gas Partnership-Garden Realty - Oil & GasConsolidation Coal Company-0.16 acres — 0.098

— TR24 — Coal

CBM Lessee

oil & Gas Lessee

Exhibit EUnit SLW-7

Docket ¹VGOB 32-02184186.04Llstof ConE(ctlng Owners/Clalmantsthatrequlre escrow

(185 386 Acre Unit)

NetAcresIn Unit

InterestIn Unit

Tm cr on 1 - 0 Svy Acres

COAL OWNERSHIP

(1) Coal Mountain Mining Company, LLP, Tr. 11P.O. Box 675Tazsws8, VA 24651

OIL 6 GAS OWNERSHIP

D.SW ames 0.3652%

(I) Ernest Keen Heirs, Devlsees,Successors, or Assigns

(b) Ralph Keen2DO Summit AvenueLebanon, VA 24266

0.677 acres

0.135 aomsI/5 of 0.677 acres

0.3652%%u

0.0730%

-"NOTE: RoysgySp/II Agreemenfs have been oxoculcd, Ira(are fir d/sputa.The VGOS approved with ho/d/ng gre D/sb vms men( st the January 18, 2011hearfng.

(e) Anna R. Lambert182 Blankenship DriveN. TazeweD, VA 24630

0.135 ecn!s1/5 ot0.677 acres

0.0730%

""NOTE: Roya//y Sp//t /Igre omen/s hevo been ex ac ni ed, but ere ln d/spele.Tho VGOB opproved wghho/d/ng /he 0/sbursemen(n((he Jonuary 1S, 201(hear/ng.

Tractate 04475Acres

COAL OWNERSHIP

(1) Hugh MacRaeLsndTrust, Tr.17do Alan 6legal EsqGump, Strauss, ANn LLP500 Madisan Avenue, 20th FloorNew York, NY 10022-2524

OA475 acres 0.2414%

CBM Rover(v Ovrner (C/s/vr from the Coal Es/sle Ownerh

Torch 05 6 Gas Companyc/o Sue Ann Creddock670 Dona Ana Road SWDarning, NM 88030

OIL 8 GAS OWNERSHIP

(1) Ead Marshall Heirs, Devisees,Successors or Assigns

(a) Charles L Ritchle16DQ Kentucky Ave.Bristol, VA 37620

(b) Lowe/y L Jackson5001 Parker AvenueWest Palm Beach, FL 33405

DAc75 acres

0.280 acres5/6 o/A475 acres

0.058 acresUS olA475aoms

0.2414%

0.1506%

0.0302%

Page 1 of 6

/51/26/11

Exhibit EUnltSLW7

Docket ¹VGOB 92-0219.0186 04List of Conflfctlng Owners/Claimants that require escrow

(186.336 Acro Unit)

NetAcresfn Unit

Interestin Unit

(o) Corblt JacksonRL1, Box80Raven, VA 24639

D.056 acresVS ot.4478 swee

0.03D2%

(d) Herbert L Jackson 0.058 acresP. O. Box 428 I/8 of.4475 acresGmndy. VA 24614(Oeceesod -goes lo Jony Jedrsan, other purl/or/s as Ive/i. Look for deeds%/If /or/hcom/ng /

Treat 837- 47 907Acme

0.0302%

COAL OWNERSHIP

(1) Hugh MacRae Land Trust, Tr.2r/o Alen Siegel Es0Sump, Strauss, Akin LLP590 Madison Avenue, 20th FloorNew York, NY 10022-2524

47.907 acres 25.8419%

CBM Rove/rv Owner iC/s/nr /rom the Cosi Esfsle Ownerh

Torah Og & Gas CompanyWo Sus Ann Craddock670 Dona Ann Road SWDarning, NM 88030

OIL & GAS OWNERSHIP

47.907 ames(1) Ernest Keen Heirs, Dsvisees,Soccesso/s cr' Assigns

25.8418%

(a) Paul Keen Heirs, Devlsees,Successors, or Assigns

(8) Ralph Keen20D Summit AvenueLebanon, VA 24266

9.581 acres 5.1684%I/5 of 47.907 acres

(c) Arnold J. &Wilds Keene962Ascue RondCedar Bluff, VA 24609

(d) Ruby Hale Heirs, Dsvisess,Successors arAsslgns

(d.1) Billy Ray HalePO Box311Ho naker, VA 24660

(d.2) Unde Hule MafneyPO Box738Pounding Mk, VA 24837

(d.3) Brenda WaddlePO Box 185Cedar Bluff, VA 24609

9.581 acresI/5 of47.907 ames

2.395 acresI/20 of47.907 ames

2.395 nornsI/20 of47.907 ames

2.395 nc/esI/20 of 47.9D7 acme

5.1684%

1.2921%

1.2921%

1,2921%v

Page 2 ot 8 I/26/tl

Exhibit EUnit SLW-7

Docket ¹VGOB 92.0218-0186-04List of Confffctlng Owners/Claimants that require escrow

(186.366Acre Unit)

NetAcresIn Unit

interestIn Unit

(d.4) Carl Lee HalePO Box330Pounding Mill, VA 24637

(e) Anna R. Lambert182 Blankenshlp DriveN. Tezeweg, VA 24630

(I) Egzsbeth Ann JusffceP.O. Box 677Rosedale, VA 24280/pn vlccriy Roy 8 Ann Mcccwsc/

7iscwms 0.454 Acnw

2.395 acres1/20 of 47.907 acres

9.581 sciiis1/5 of 47.907 sass

9581 acresI/5 or47.907 acres

1.2921%

5.1684%

5.1894%

COAL OWNERSHIP

(1) Hugh MacRae Land Trust, Tr.17Mo Alan Siegsl EsqGump, Strauss, Akin LLP590 Madison Avenue, 20th FloorNew Yodi, NY 10022-2524

CBM Rover/v Owner /Claim rroni /he Coal Esre le Cmierh

Torch Oil 8 Gas CompanydoSueAnn Craddock670 Dona Ana Road SWDarning, NM 88030

OIL It GAS OWNERSHIP

0.454 acres 0.2449%

(I) Ernest Keen Heirs, Devisees,Succemo/s or Assigns

(e) Paul Keen Heirs, Deviance,Successors, or Assigns

(b) Ralph Keen200 SummffAvenueLebanon, VA 24266

(o) Arnold J.SWildeKeene962 Ascue RoadCedar Bluff, VA 24809

(d) Ruby Hale Heirs, Dsvisees,Succsssors orAssigns

(d.l) Billy Ray HalePO Box311Huneker, VA 24660

(d.2) linda Hale MalneyPO Box 738Pounding Mill, VA 24637

0.464 ames

O.ogl amesI/5 of 0.454 acres

0.091 acresH5 of0454 acrss

0.023 acres1/20 of 0.454 acres

0.023 screeI/20 of0.454acres

0.2449%

0.0490'4

0.0490%

0.0122%

0.0122%

Page3o/6 I/26/11

ExhlbltEUnltBLW-7

Docket 0VGCG 92-0218-0186-04Llstof Confgctlng Owners/Clalmantethat requireescrow

(186 366 Acre Unit)

NetAcresIn Unit

Interestfn Unit

(d.3) Brenda WaddlePO Box 185Cedar Bluff, VA24609

(d.4) Carl Lee MalsPO Box330Pounding Mill, VA 24637

(e) Anna R. Lambert182 Blankenshlp Odve

N. Tazeweg, VA 24630

(I) ElizsbethAnn JusticeP.O. BOX677Rosedale, VA 24280lcm v ovs/y Roy I!4 n Mc Cense/

Tvecr 040. Vf 0ZZ ncms

0.023 scrss1/20 of 0.454 acres

0.023 acres1/20 of DA54 ames

0.091 acres1/5 of 0.454 acres

D.091 acres1/5 of 0.454 acres

0.0122%

0.0122%

0.0490%

0.0490%

COAL OWNERSHIP

(1) Hugh MacRaeLandTrust, Tr.17Mohlan SlegelEsqGump, Strauss, AMn LLP590 Madison Avenue, 20th FloorNew York, NY 1D022-2524

11.923 acres 6.4316%

cBM Bovefrv owner/c/e/m /mm the cosr Esfa/e Cvrnorh

Tordl Oil & Gas CompanyMoSueAnn Craddock670 Dona Ana Road SWDarning, NM 88030

OILS GAS OWNERSHIP

(1) W.J.Sisk Heirs, Devise as

(a) Dale Hedge ChambemRt1 Box 82Raven, Va 24039

(b) Lsny Douglas ChambemRt 1 box 82Raven, Va 24639

(c) Jimmy Donald Slsk2854 Kay Blvd

Norton, OH 44203

(d) WaEer Jackson "Bud" Sisk229 He sque StreetYJngsport, TN 37665

(e) Nancy Sickr/o Walter Jackson Sisk229 Hesque SfreetKlngspo4, TN 37665

'l1.923 acres

3.974 sr/os1/3 of 11.923 acres

8.245 ames11/21 of 11.923 acres

0.420 ames1/28 of11.923 acres

0.426 oc/cs1/28 of11.923acres

0.420 acres1/28 of 11.923 acres

Page 4 of 6

6.4315%

2.1438%

3.3689%

0.2297%

02297'/

0.2297%

1/26/11

Exhibit EUnit SLW-7

Docket ¹VGOB 92 0218-018644List of ContUctlng Owners/Claimants that require escrow

(186.386 Acre Unit)

(I) Maudie Ellen Sanders600 North 583 StreetKokomo, ln46901

Tract ¹ren -137Acms

NetAcresIn Unit

OA26 acrest/28 af11.923acres

InterestIn Unit

0.2297%

COAL OWNERSHIP

(1) HughMacRaeLandTrust, Tr.17do Alan Siegel EsqGump, Strauss, Akin LLP590 MadlsonAvenue, 20th FloorNew Yodr, NY 10022-2524

CSM Rove/fv Ovrner/C/s/m from the Coal Estate Cwnsrh

1.370 sums 0.7390%

Torch Oil & Gas Companydo Sue Ann Craddock670 Dona Ana Road SWDarning, NM 88030

OIL It GAS OWNERSHIP

(1) W.J.Slsk Helm, Dsvisees

(a) Dele Hodge ChambersRt1 Box 82Raven, Va 24639

(b) Lany Douglas ChambersRt1 box82Raven, Va 24639

(c) Jimmy Donald Sisk2854 Kay Blvd

Norton, OH 44203

(0) Walter Jackson "Sud" Sisk229 Hesqus StreetKingsport, TN 37665

(e) NancySiskc/o Walter Jackson Slsk229 Hssqus StreetK/ngsport, TN 37665

(I) Maudie Ellen Ssndms600 North 583 StreetKokomo, In 46901

Tract ¹f09- 1.482 Acres

1.370 acres

0.457 acres1/3 of 1.37 acres

0.718 acres11/21 of 1.37 ames

0.049 acre1/28 of 1.37 acres

0.049 acres1/28 of 1.37 acres

02%9 amestRS of 1.37 acres

0.049 sc/ss1/28 of1.37acres

0.7390%

0.2463%

0.3871%

0.0264%

0.0264%

0.0264%

0.0264%

0 GAL OWNERSHIP

('I) Hugh MscRae Land Trust, Tr17do Alan Slag el EsqGump. Stmuss, Akin LIP590 Madison Avenue, 20th FloorNew York, NY 10022-2524

1.662 acres

Page 5 of 6

0.8965%

1/26/11

Exhlhlt EUnh SLW-7

DocketgVBOB 624218416644Uat of CmoSROrlg OwrleraNlalmarrla thst rernllln eacfaw

(186286Acro Unit)

Rat Acnmhr Unh

InterestIn Unit

CWR Revs lhr Owner/Cform from the Coal Ea fete Ownerh

Torch 06 6 Goa Corapanfdo Sea Ann Cnddock870 Dona Ana Road SWDemlng, RM SROO

OIL 8 GAS~CmhRI Amkaon

RI1 Srn!NRaven, Vs 2466

Page 6 of6 1/26I11

Exhibit EEUnit SLW-7

Docket ¹VGOB 02-02184II06.04List of ContEcUng Owns rsfnlalmants with Royalty SpEt Agreements

(196.336 Acre Unit)

NetAcresIn Unit

Interestin Unit

Percerltof Escrow

Tract¹30-38 7884ems

COAL OWNERSHIP

(1) Hugh MacRas Land Trust, Tr.14do Alan Slegel EsgGump, Strauss, Akin LLP500 Madison Avenue, 20th FloorNew York, NY 10022-2524

CBM Rovalr Owoer(Crafcr fmnr the Coal Esfate Owrrsrh

36.700 acres 192M 41'/ n/o

Torch Oil & Gas Companyc/0 Stre Ann Creddcck070 Dona Ann Road SWGaming, NM 88030

OIL & GAS OWNERSHIP

(1) Coal Mountain Mining Company, LLPP.O. 8ox 675Tazswe3, VA 24651

Tract&71-¹.arracres

30.788 acres 10.IH41% nra

CDAL OWNERSHIP

(1) Coal Mountain Mning Company, LLP, Tr. 11P.O. Box675Tazewsg, VA 24651

OIL & GAS OWNERSHIP

0.677 acres 0.3652% 0,3162'/

(I) Ernest Keen Hebe, Devisses,Successors, or Assigns

0.677 acres 0.3652%

(a) Paul Keen Heirs, Davhees,Successors, or Assigns

(c) Arnold J.& Wilds Keene962 Ascue RoadCedar Bluff, VA 24609

(d) Ruby Hale Heirs, Devisees,Successors or Assigns

0.135 acres 0.0730% 0.1061%I/5 of 0.677 acres

(d.1) Btily Ray HalePO Box311Huneker, VA 24660

(d.2) Unde Hale Malney

PO Box730Pounding M31, VA 24637

(d.3) Brenda WaddlePO Box165Cedar Bluff, VA 24609

0.034 acres1I20 of0677 ewes

0.034 amesI/20 of0.677 acres

0.034 acres1I20 of0.877acres

0.0183% 0.0263%

0.0103% 0.02637

0.0183% 0.0263'/

Page1of4 1i26f1I

Exhibit EEUnit SLW-7

Docket PUG 0B92-0218-0106.04List of Conflicting Ownerslofalmants with Royalty SpEtAgreements

(195.335 Acre Unit)

Net AcresIn Unit

InterestIn Unit

Percentof Escrow

(d.4) Cad Lee HalePO Box330Paunding Mill, VA 24637

(t) Elizabelh Ann JusticeI.O. Sux 077Rosedale, VA 24280lpmvlcssiy Ray 5 Ann M«Correnj

Tract a32- 7.040 Acme

0.034 acres 0.0183% 0.0263%1/20 of 0.077 acres

0.135 acres 0.0730% 0.1051%1/5 of 0.677 acres

COAL OWNERSHIP

(1) Hugh MacRae Lend Trust, Tr5rjo Alan Slegel EsqGump, Strauss, Akin LLP590 Madison Avenue, 20th FloorNew York, NY 10022-2524

7.040 acme 3.7975% nla

CBM Ra vshv Owner IClnlm fran r the Coal Estate Ownerh

Torch Og & Gas CompanyrjoSuepnn Craddock670 Dona Ana Road SWDarning, NM 80030

OIL & GAS OWNERSHIP

(1) CNX Gas Company LLC1000Consol Energy DriveCanonsburg, PA 15317(previously Consolidegen Coal Compenyj

Tract 033 15.8SS Acnrs

7.040 ames 3.7975% nra

COAL OWNERSHIP

(1) Hugh MacRae Land Trust, Tr.5do Alan Siegsl EsqGump, Sbauss, Akin LLP590 Madison Avenue, 20th FloorNew Yerk, NY 10022-2524

15.868 acres 8 5595% nio

Aghough Ihe deed from Huglr Macrae Lend Tnrsl to Torch Operegng Companycon myed Ihe Coal arvnem' claim lo ihe CBM asfale lo Tomb Opera fing Company. Tire CSMoenershlp vms adlundiceled lo Ihe prevsglnp pleingft sarah Kelhleen wade endor clvg AouonCess 9CL09476 ereculed Augusf 31, 2010 Royegies ore lobe poid 100% to Ihe prevailing planglt

Torch Oil & Gss Companyryo Sue Ann Grad dock070 Dona Ana Road SWDarning, NM 80030

OIL & GAS OWNERSHIP

(1) ThunnanWade Heirs, Devlsees,Succemcrs of As sigil s

Page 2 of4 1I26ll 1

Exhibit EEunit St.w-y

Docket VYG0 6 92-024 am(85-04List of Cans feting Owners/0 latm ants with Royalty Spgt Agreements

(186.385 Acre Unit)

Net AcresIn unit

InterestIn Unit

Percentof Escrow

(8) Sarah Kalhlean WadeP. O. Box225Oakwood, YA 24631

15.868 ames 8.5595%

afCTur sarah Rafhlecn lyade Is pravav/ng planvif in clvp Acr/on cess vcgewrs end Is awarded loss at theCue/bed Methane See estele under/y/ng Tract sty AV bonus as end/or my a/V as ere lo be paid to Sarah Kalb/fran Wade.

Tract 874 -0772 P crea

COAL OWNERSHIP

(1) HughMacRaeLandTrust, Tr5r/o Alan Slegel EsqGump, Strauss, Akin LLP580 Madison Avenue, 20th FloorNew York, NY 10022-2524

0.772 acres 0.4164% nie

CBM Rorregv Owner /Din /m fran& fhs Conf Eslnre Ovrn ark

Torch Og & Gas Companyc/o Sua Ann Cfsddcck670 Dona Ana Road SWDarning, NM 88030

OIL & GAS OWNERSHIP

(1) CNX Gas Company LLC1000Consol Energy Drive

Canonshurg, PA 15317(previously Consagdagon Coal Company)

Tract 835-13.3OT Acres

0.772 ames nie

COAL OWNERSHIP

(1) Hugh MacRae Land Trust, Tr.5r/o Alen S leg el EsqGump, Strauss, Akin LLP580 Madison Avenue, 20th FloorNew York, NY 10022-2524

13.307 8cres TE7805 Ma

CSM Rovanv Orvncr fClslm from tho Conf Ec/sfs Cw eru

Torch 02 & Gas Companycfo Sue Ann Craddock670 Dona Ana Road SWl)emlng, NM 88030

OIL 6 GAS OWNERSHIP

(1) CNX Gas Company LLC1000 Consol Energy DriveCanonsburg, PA 15317(pre via vsly Poca hen/as Gas Partnora hip)

13.307 acres 7.1780% n/e

tages old 1/26/I 1

Exhibit EEUnit SLW.T

Docket SVG OB 92-0210-0106.04List of Conflicting Owners/Claimants with Royalty 8PEt Agreements

(185.385 Acre Unit)

Net Acresin Unit

Inta/I!stIn Unit

Percentof Escrow

Tract San-7 0574crss

COAL OWNERSHIP

(1) Hugh MacRae Land Trust, Tr.17Go Alan Slegel EsqGump, Strauss, Akin LLP590 Madison Avenue, 20th FloorNew York, NY 10022-2524

CBM Rover/v Owner /C/a/rn f am roe Coal Esra re Ovrnerh

Torch Oil 4 Gas CompanyNoSueAnn Craddock6/0 Dona An a Road SWDarning, NM 88030

OIL 6 GAS OWNERSHIP

7.057 acres 3.0067% n/a

(1) Garden ResltyCo/poragondo MargrstWorley Sums100 BexleyRoadMoorsvige, NC 28117

TractSf18-DTSAenxv

7.057 noes 3.8067% nla

COAL OWNERSHIP

(1) CoaIMountain Mining Company, LLP, Tr. 24P.O. Box675Tazewe6, VA 24651

OIL 0 GAS OWNERSHIP

0.76D acres 0.4100% nfa

(1) GanlenReagyCorporsgonr/o Margre! Worley Burns100 Bextey RondMoorsvgle, NC 20117

Tree l I/4 1C- rl 18Acme

0.780 acres 0.4100% nle

COAL OWNERSHIP

(1) CoalMounlsin Minlng Company, LLP, Tr. 24P.O. Box 675Tazsweg, VA 24851

OIL 6 GAS OuvNERSHIP

0.160 noma 0.0803/, n/a

(1) Garden Realtycorpora8onNo Margret Worley Sums100 Eexley RoadMoorsviga, NC 20117

0.100 acres D.D803% rue

Page 4 old I/26/11

Exhibit ATract-by-Tract Escrow Calculation

Account Balances as of 9/30/10

Unit: SLWTVGOB 92-D218-0185-04

Acres Escrowed: 64A40500

Coal Mountain Mininc Corno anv- CoalErnest Keen Heirs -OILG 31 I 0.6771

on/ters Tract¹~

AcresOwner Total Tract

Interest~

Percentof Escrow

0.5253%

AmountOue Owners$104,767.77

$55D.34

Ra/oh KeenArnold Keen

Billv Rav HaleUnde Hale Matnev

Brenda WaddleCarl Lee Hale

Anna R. LambertBizabeth Ann Justice Ioreviouslv Ann Mccowanl

0.13540.13540.03390.03390.03390.03390.13540.1354

1/51/51/2 01/201/201/2DI/51/5

0.1051%0.1051%D.0263%0.0263%D.0263%0.0263%0.1051%0.1051%

$110.07$110.07$27.52$27.52$27.52$27.52

$110.07$110.07

I

4 f/-TRVf1Eit'T «110iJCOBERRrCORIOEO IN THE CFERh S CiFrFtCE i)F

EJCHANAN OONT/ ON

I')ARCH'

i '011 Ai O':Oiil'I

Cirychnl' '-. Tru. cn LLElirRF:i)Ri)Ei! F .': I;E: