APPUCANT D — ——:::::Company DIVINQN OP GAS AND OILDOCINT NCh VGI&40442%4tggd

~nmctSQDA'IPc April 21, 1998PLSCRI ~Vhghda 4-H Cancer

Imhcum Highvmy, ~V'ggggcP00 AM

CO~%EALTR QR VIRGINI/l:

Tst Hm«bhtGtmuhahs, dsvisces, eeocasccs, a asdgsx

l. x— ~ aaac maaoaaaa« ~is Bache»» Prduo«os Compaay, P. O. Box 947, Blucgc«LVirginia 24605, 540/ggg-1016. Appgocnt's oam»al is Mark A. Swarlz, P.O. Box 517,Abingdoo, VA 24212.

2. Dagctoacehcc Icacgsg tmdtr Oakwood Coalbcd Mcg»te Gas Fiehl I k II.3.: 'taadavr (a) Poohsg all Ibs hnccwas aad ashtm af tbc pomme named abave in

ooagednccgua»hvihaungbtqsccgccx(b) seem~ a paoocdcce wbmcby each scpandcm shag have the right to make

(o) twidhtggunmF = . ehodomnstmcha s Ibncly she«ca cbcg be deemed »have less»i m asstgaadhis Socg»d maga»a Sm bdcmamsng» appgasat ct a mse to be octabgded by ge Bosrtk (d) Dcsigr»ting CONSOL he,i» UaS Ops»ter (IS MthhgasF r prov»xc» Sif Ibe emtnw ofSleds; (I) Gfaetmg $Uch agtcr roief m lc a»cited

by Seevhbsea ang isjss aml ==:' whcg»r m sot mnh mgcf has baca~toqmcsod benin.

4. s~ '"-. VL Cade A»L $451-361.1IS~ 4 VAC 25-160-10lgggg. aml rcdevant VirginiaOasml Oil Baengtyidcrs~ —

gcnmulgattd purcuam to hmi inchding OOCB 3-90; VOOB-91-1119-162;VGOB92/02/1641336; aml VGOB 9348/I64)349.

6. ~Asscctcd bcccco meExhibit A, Exhlbit Al aad the Plat iagcnd to Exhibit A. The Plat chawc thecke Sadcbcpe ofSeunb ead S»~ofSe tree» wigdn the unit. The Lcgmd shows Se~ofacreage iseach «sot. TI» plat » oceggsd by e Socnscd pltlgeslamd augh»sr snd» axes»d by Ibc undersigned an bcMf af Ibc~FFSoant ta be ia~~wgh eicgag mdcm based by SeBoanl

7. Stean«»aaaasm am«a aanahc saba aaatanhe ch«t a— —aaacama ca easel ~ aas.

S. aaso:— aad AS ooal scorns aad~s«sts bedew Se Tghtr~ofosdag~~ ~~ ia 6» enacted~order. Tbs~«xal pmdwtim Som subjectmit ia Isa cn ~SAKF. The

- 'mmmn afro»aves Sum Se akiact ihiigng ueb is 125 ta 550 hgdCF. Those

Sgscds == =' ~malihe ammmt of»eaves»a, however, ~oaly Sanme nat baccdupoa~steal peduesan sml tbcuhl set be cased upas sir eay pmpose It sbouhl not bo a»eased s»t seal roduothm bcsaephtgghtgasd ====wgl eqeel ssgmsttdremrves.

9. ~at coat» $321,994.46.

10. " The+ 'pthoathm to the boot ofmy rrhotttn bdbrtnetion, end bebef is trna ead

NWIC$ %BIOWQR dNVIN ther die~bes bees sot kr bssrbrg ead dm tsbtntt ofevidoace befme tbeBrsad et ydtp Abd, sa AyrI21, typal, %Os~Vigybda 4.H Cantor, HiQmsa ~,Abinpdoa, Vhybds 24210,mal tbst maios vdw be yabSobed m rmymed by lmr eel the rrdm oAbs Bawd.

IwMRK~wrms\y «y~M~~ ~ ~,~dh ~a'lmaem, yoabmra %iaSemdmlos raquieethot my wrhtrn~yon wieh to Se nmst bo Sbrd with tboBrtord 4 lame l0 dtys htdroa'054Nlg+ Fln'brdtsr ~or s oopy oftbs pphosthm end enhlbas, eldwl'onlsotdm%ehia4aanad OI RsrmL Itstatywmrd Gee~,Dw ofbSam,btmmrds end'Baergy, Division ofGee~ad OiL P. O. Ben )416,A~.%sghis 24210, 5405765425 m dm Apphoeat at dm eddmm ohnsmbetoer.

DA7BD: 878&4 A. JRI

Ladm R.~Permit psoiebot /CO148OL hto.P.O.Boa y47~.Virgiai ~ 2460554Nirya-'10M

1C

ACRE UN

E 992.925'9

TRACT LAND HOOK

EXHIBIT A

OAKWOOD FIELD UNIT R 27FORCE POOLING

yGOB-98 —0421 —06542 TRACT LAND ID'

Well Name and Nusber UNIT~Ccwpony CONSOL I nc

p4 eQblQSBr8aknn;:.'levationQuadranple—Tract No.

1" = 400'~lg 3/12/98Buchanan District Gal den Scale: 1 = 400 D

K dated lat or a inal plat ivoThis plat is a new plat K 'n updated p alv9r

Form DGO-GD-TRev. 9/91 Licensed Professional Enplneer W Licensed Land Surveys~ Obrgz,TGt ~

SUCHANAN PRODUCTlON COMPANYUNT R~

Yukon Pocahonkrs Coal Company, et al - Tr. 54 - Coat, ON 5 tNssCoal LesseesIsland Creek Coal Company - Coal Below TNIerJeweN Smokeless Coal Corp.Permac, Inc.Buchanan ProduoNon Company - CBM Lessee50.40 acres 74.3250%

1A. tstsnd Cmek Coal Co., at al - Surface

1B. Yukon Pocahontas Coal Co., et al - Surpsce

1C. letsnd Creek Coal Co., et at- Surtsce

1D. Yukon Pocshonkw Coal Co., et al - Surface

James M. Mcauke, Trust - Coal, ON S QssCoal Lesseesisland Creek Coal Company - Coal Below TlNerJewel Smokeless Coal Corp.Pennac, Inc.20.S4 acres 25.ST50st

29 30 31 32EXHIBIT A1

VGOB-98-0471-0654

BEFORE THE VIRGINIA GAS AND OIL BOARD

APPLICANT: BUCHANAN PRODUCTION COMPANY

SUBJECT DRILLING UNITSKEEN MOUNTAIN QUADRANGLE,GARDEN DISTRICT,BUCHANAN COUNTY, VIRGINIA(herein the "Subject Lands")

REPORT OF THE BOARD

ORDER OF DISMISSAL

RELIEF SOUGHT: APPLICATION TO POOL INTERESTSIN CERTAIN 80.0 ACRE DRILLINGUNITS LOCATED IN THE OAKWOODCOALBED METHANE GAS FIELDS IAND II AND KNOWN AS UNITS Q-2$ ,Q-27 R-27, R-28, S-27, S-28 AND Q-32(herein collectively "Subject Drilling Units" )PURSUANT TO VA. g 45.1-361.21AND45.1-361.22FOR THE PRODUCTION OFOCCLUDED NATURAL GAS FROMCOALBEDS AND ROCK STRATAASSOCIATED THEREWITH (hereinreferred to as "Coalbed Methane Gas"

LEGAL DESCRIPTION:

)) VIRGINIA GAS

) AND OIL BOARD

)) DOCKET NOS.

) VGOB:) 9$-0421~52) 9@0421-0653) 9~2IM54) 9844214655) 98~214656) 98~21~57) 9&042IM5$))))))))))

l. Heerimr Date and Place: These matters came on for hearing before the Virginia Gas and

Oil Board (hereafter "Board") at 9:00 a.m. on April 21, 1998, at which time they were

continued at the request of the Applicant and came on again for hearing at 9:00 am. on

May 19, 199$, Dickenson Conference Center, Southwest Virginia Education 4-H Center,Abingdon, Virgima.

2, Anneeratmes: Sandra B. Riggs, Assistant Attorney General, was present to advise theBoard.

3. Jurisdiction: Pursuant to Va..Code g 45.1-361.1 er st., the Board gods that it has

jurisdiction over the subject matter.

4. Regef Reauested: Buchanan Production Company's applications in these matters sought

to have the Board: (1) pool the rights, 'nterests and claims of the Gas Owners orClaimants ia Subject Drilling Units for the MSng and o~ including production

thereof, Sum the pool degned as all coal seams bdow the Tiger seam, induding the UpperSeaboard, Greasy Creek, addle Seaboard, Lower Seaboard, Upper Horsepen, hfiddle

Horsepen, W«Creek, Lower Horsepen, Pocahontas No. 9, Pocaltontas No. 8,Pocahontas No. 7, Pocahontas No. 6, Pocalusatas No. 5, Pocahontas No. 4, PocalmntssNo. 3, Poaahontas No. 2, and various unnamed coal seams, coahed and rock strata

associmed ~ (Itereineger "Subj«n Formation") underlying and comprised ofSubject Leads; and (2) name CONSOL htc. as the Operator of Subject Drighsg Units.

Prior to the hearing of these matters, Applicant advised the Board that it had reached

vohmt«y agre«nems with all parties in interest sml ask«l that the Applicant be prmittedto withdraw its Appgcanon for the cornpulscsy ponbng of each of the Subject DrggngUnhs.

5. Rehef Granted: Based upon Apphcant's represerttation that it has reached voluntary

agresntents with all parties in interest, snd there biing no objections, the Board gods that

the Applications Iged in the above-styled causes for the compulsory pooling of each of the

Subject Drghng Units are moot, and therefore, grants without prejudice Applicant's

Motion to whhdraw same.

DONE AND EXECUTED this 3'f day of May. 1998, by the Chairman in behalf ofthe Yirginia Gas snd Oil Board.

ClulllllUI, S~R. WSllgfK

DONE AND PERFORMED this ~day fMay, 1998, Order of the Board.

P Executive the StaFVirginia Gas and Oil Board

COMMONWEALTH OF VIRGINIA )CCIUYIY OF WISE )

Acknowlelged on this~de day of May, 1998, personally ha&re me a notary public

in tmd gsr the Conunornvealth of Virginia, appeared Benny IL Wampler, bc'uly sworn diddepose snd say that he is Chairman of the Virginia Gas and Oil Board, that he executed the

Notary Public

My commisske expires: July 31, 199$

COMMOWI%ALTH OF VIRGINIA )COUNTY OF WASHINGTON )

Aclmowledgad on ~< day 199$, personally befbre me a notary public in snd$sr the Cotnmonwealth of Vlrghua, appeared Byron Thomas Fulmar, being duly sworn did

dbpose and say that he is Principe Exetaeve to the StaF of the Virgmia Gas and Oil Board,that ha ~~ the same and was authorised to do so.

My comndsien expires: September 30, 2001