VIRGINIA:

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: Ranae Resources-Pine Mountain. Inc.

RELIEF SOUGHT EXCEPTION TO STATEWIDE SPACINGLIMITATIONS PRESCRIBED BYVA. CODE g 45.1-361.17(a) (2)FOR WELL NO. 900014

LEGAL DESCRIPTION:

DRILLING UNIT SERVED BY WELLNUMBERED ~900 14TO BE DRILLED IN THE LOCATIONDEPICTED ON EXHIBIT A HERETO,Bta Sandv Fuel Corooration Tract12,627.34Acres, more or lessPRATER QUADRANGLEPRATER DISTRICTBUCHANAN COUNTY. VIRGINIA(the "Subject Lands" are more particularly describedon Exhibit "A", attached hereto and made a part

hereof)

) VIRGINIA GAS

) AND OIL BOARD

))) DOCKET NO.

) VGOB-1 1%614-2957)))))))))))))))))))

REPORT OF THE BOARD

FINDINGS AND ORDER

1. Hearino Date and Place: This matter came on for hearing before the Virginia Gasand Oil Board (hereaRer "Board") at 9:00 a.m. on June 14, 2011 at the Russell CountyConference Center, Highland Drive, Lebanon, Virginia.

2. Aooearances: Timothv E. Scott of McKinnis S Scott, appeared for the Applicant.

Jurisdiction and Notice: Pursuant to Va. Code tjtj 45.1-361.1et ssq., the Board finds thatit has jurisdiction over the subject matter. Based upon the evidence presented byApplicant, the Board also finds that the Applicant has (1) exercised due diligence in

conducting a meaningful search of reasonably available sources to determine the identityand whereabouts cf each gas and oil owner, coal owner, or mineral owner having aninterest in Subject Drilling Unit underlying and comprised of Subject Lands; and (2)represented to the Board that it has given notice to those parties (hereafter sometimes"person(s)" whether referring to individuals, corporations, partnerships associations,companies, businesses, trusts, joint ventures or other legal entities) entitled by Va. Codetj 45.1-361.19to notice of this application. Further, the Board has caused notice of thishearing to be published as required by Va. Code 5 45.1-361.19.8. Whereupon, theBoard hereby finds that the notices given herein satisfy all statutory requirements, Boardrule requirements and the minimum standards of state due process.

6.9 Applicant proposes to complete and operate Well No. 900014 for the purpose ofproducing Conventional Gas;

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

Appeals: Appeals of this Order are governed by the provisions of Va. Code Ann. 545.1-361.9which provides that any order or decision of the Board may be appealed tothe appropriate circuit court. Such appeals must be taken in the manner prescribed in

the Administrative Process Act, Va. Code Ann. 5 9-6.14:1 et seq. and Rule 2A of theRules of the Virginia Supreme Court.

9. Effective 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 thisVirginia Gas and Oil Board.

day of Nr ~=V, 2011, by a majority of the

cMm~

Board.DONE AND PERFORMED this day of Ace~,2011, by Order of this

P urn~KCk Co OP4L.

Principal Executive to the StaffVirginia Gas and Oil Board

STATE OF VIRGINIA )COUNTY~F WA~ 2'..'-T '-'

Acknowledged on this 3 day of ~~~2JT, 2011, personally before me anotary public in and for the Commonwealth of Virginia, a+eared Bradley C. Lambert, being duly sworndi depose and say that he is Chairman of the Virginia Gas and Oil Board, and appeared D

, being duly sworn did depose and say that he is Principal Executive to the Staff of the VirginiaGas and Oil Board, that they executed the same and were authorized to do so.

DDiane J. Dav~otary174394

My commission expires: September 30, 2013

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908014 PLATTRACT OWNERSHIP INFORMATION SCHEDULE

4/27/2011

I . Big Sandy Fuel Corporation

12,627.34 AcresACIN LLC - coalAlpha Land dt Reserves LLC - coal lessee

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

Range Resources-Pine Mountain, Inc. - oil, gssGss 80.79Ac. 71.69%%d

2 . Big Sandy Fuel Corporation12,627.34 AcresACIN LLC - coal (except Clintwood scam)

Alpha Land dt Reserves LLC - coal lessee

WBRD LLC- coal (except Clintwood amm)

Penn Virginia Operating Company, LLC - coal ( Clintwood nxrm only)Dickenson-Russell Coal Company LLC - coal lessee

Range Resources-Pine Mountain, Inc. - oil, gasGas 0.35 Ac. 0.31%

3 . Big Sandy Fuel CorporationI?„627.34AcresACIN LLC - coal (except Clintwood seam)

Alpha Land dt Reserves LLC - coal lessee

WBRD LLC- coal (cxccpt Clintwood scam)Penn Virginia Operating Company, LLC - coal ( Clintwood seam only)Dickcnson-Russell Coal Company LLC - coal lessee

Range Rcsourccs-Pine Mountain, Inc. - oil, gasGss 28.36 Ac. 25.17%

4 . Bull Crack Coal Company- coal, oil tk gss259 Acres

Gas 3.19Ac. 2.83'/