BEFORE THE VIRGINIA GAS AND OIL BOARD
APPLICANT: Pocahontas Gas LLC
DIVISION OF GAS AND OIL
DOCKET NO: VGOB 24-0820-4288
RELIEF SOUGHT:
1. Creation of sealed gob drilling unit
LOCATION: See exhibits “A” and “A1”
UNIT NUMBER: Buchanan No. 1 SGU7
IN BUCHANAN COUNTY, VIRGINIA
HEARING DATE: August 20, 2024
PLACE: Virginia Dept of Energy
3405 Mountain Empire Road, Room 219
Big Stone Gap, VA 24219
and via Teleconference
TIME: 10:00 AM
NOTICE OF HEARING
COMMONWEALTH OF VIRGINIA: To all persons owning or claiming an interest in oil and gas, coalbed methane gas, coal or other minerals and to all other persons who have or claim to have an interest in the coalbed methane underlying and within the Buchanan No.1 SGU7 and the lands described on Exhibit “A” to the Application, which is attached to this Notice, in the Garden District of Buchanan County, Virginia (hereinafter “Subject Lands”) and adjacent lands, and in particular to the following persons, their known and unknown heirs, executors, administrators, devisees, assigns and successors, both immediate and remote:
P.J. Brown Heirs, et al including Mary Ann Mullins Trust c/o Mary Ann Strong, Susan G. Maynard Trust c/o Susan G. Maynard, Lynn A. Lawson Trust c/o Lynn A. Lawson, Structured Asset Sales, James F. Thompson, Janie T. Hall, Oscar W. Thompson III, William T. Scott, John H. Scott III, Suzy J. Delong Trust c/o Suzy Delong, Charles R. Vanhoose Trust c/o Charles R. Vanhoose, William C. Vanhoose c/o William C. Vanhoose, Cassady Family Ventures LLC, Jennifer Lynn Ramsey, Deborah K. Ramsey Heirs (Heirs pending documentation), James Patton Ramsey III, Clyde Dawson Ramsey, Susan Ramsey Aldrich, Joe B. Ramsey Sr., William N. Ramsey Jr., Teddy Colley, Eleanor Lynette Lemaire, Waban Page Carter, Johnnye Carter Letterman, Tonie Bates McGowan, Gillespie Company, Eldridge Brown Company, Jean McKenry, Alan McKenry, Lee Amy Sacks, Nancy McKenry Goss, Susan W. McKenry, Mary McKenry, Natalie McKenry, Elizabeth C. Gillespie, William E. Strotz III, Jonathan A. Strotz, Josiah D. Strotz (c/o William E. Strotz Jr.), Rachel J. Crawford, Amy Olivia Grace Strotz (c/o William E. Strotz Jr.), Elizabeth McKenry Adams, Cynthia McKenry Therrien, Natalie McKenry Callis, Ellen Allen, Clare C. McKenry Molloy, Rodney Lynn Brown, Laura Buchanan Heirs (Heirs pending documentation), Sarah P. Taylor, Ira Buchanan, Glenn Taylor, Barbara Taylor Pauley, Martha B. and Robert W. Short, Juanita Clater, Kenneth Carter, Tina Carter, David Carter, Jennifer Wiles, Ernest Charles Grove, Brian Alan Grove, Shirley G. Singhas Heirs (Heirs pending documentation), Amber Frazier, Beverly Lester, Gerald Stephen Witt, Jeffrey Dean Witt, Michelle Keen, Brenda Owens Powell, Nora Catherine Damron, Virginia Brown Palmer, Benjamin Patton Brown, Charles Henry Brown, William David Brown, Kevin Eugene Brown, Joseph B. Martin Jr., Morris R. Lee; Norfolk Southern Railway Company; Betty Jean Bishop et al including Betty Jean Bishop, Daris M. Clifton Whitewood, LLC, Mary C. Mumpower, Judy Taylor, Kyle Clifton, Jenny Lee Salyers, Don R. Salyers, James E. Salyers, Wanda Lawson; Brenda C. Horton, et al, including: Heirs of Brenda C. Horton (Heirs pending documentation), David S. Horton; Bolling Family Trust; David L.Horton; Tonya A. Switzer, Hannah R. Birdsong; Buchanan Mining Company LLC, et al including Yukon Pocahontas Coal Company, Buchanan Coal Company, and Sayers-Pocahontas Coal Company c/o Sayers F. Harman III, Weyerhauser NR Company; Buck Jewell Resources LLC; Mountaineer Metallurgical Holdings, LLC; Caroline Cole Keen, et al, including: Edith G. Street, Martha E. Combs Trust, Fred H. Combs II Testamentary Trust, CIPL, LP, Nancy J. Cole, James W. Burress, Margaret M. Davis, B.W. McDonald Testamentary Trust, Byrd McDonald, Empire Management LLC, Tamala Pelphry, Gregory B. McDonald, Greta McDonald Meek, Larry Dean Cole, Mary F. Harris, Caroline Cole Keen, Kimberly Willis, Donald Stephen Cole, Kenneth Edward Cole, Sherry Cole, Anthony Looney, Teena Cooper, Rita Gail Cooper, Thelma G. Cooper, Teresa Lynn Rogers, Chastady Cooper, Terry Allen Cooper, Karen Cooper Rowe, Sharon Cooper Daniels, Melanie D. Cooper, Corey S. Cooper, and Byron D. Cooper; Peggy W. Cole; Unknown Trustees of the Cole Cemetery (E.J. Compton, et al); CL Ritter Lands LLC; CONSOL RCPC LLC; Tazewell Coal & Gas Company LLC; County of Buchanan Virginia, c/o Robert Craig Horn-County Administrator; Wanda E. White, et al, including: Wanda E. White and Leonard Keene; Alta Cox; Bucky McConnell, et al, including: Artemus B. Jewell, Jr., Bucky McConnell, Nancy J. Lowe, and Cyrus Bernard Nasseri; Appalachian Energy, Inc.; Pocahontas Gas LLC.
NOTICE IS HEREBY GIVEN that Applicant is requesting that the Virginia Gas and Oil Board (hereinafter “Board”) issue an order creating a sealed gob unit and pooling all the rights, interests, and estates of the above named persons pursuant to Virginia Code Ann. § 45.2-1620 et seq. in regard to the drilling, development and production of coalbed methane gas from said drilling Unit Buchanan No.1 SGU7 containing approximately 1477.88 acres, for all coal seams below the Tiller seam, including but not limited to the Upper Seaboard, Greasy Creek, Middle Seaboard, Lower Seaboard, Upper Horsepen, War Creek, Lower Horsepen, Pocahontas No.9, Pocahontas No.8, Pocahontas No. 7, Pocahontas No.6, Pocahontas No.5, Pocahontas No.4, Pocahontas No.3, Pocahontas No.2, and various unnamed seams and all associated strata (hereinafter “Subject Formation”). Applicant requests that the Board issue an order providing as follows:
a Creating a sealed gob drilling unit consisting of 1477.88 +/- acres for the drilling, development and production of coalbed methane gas from the sealed gob sometimes referred to herein as the “Subject Formation”, which drilling unit is further described and depicted in Exhibit “A” annexed hereto and which drilling unit is described as follows: Beginning at a point, Virginia State Plane NAD 83 coordinate of N: 3625153.93 E: 10494733.38 (southwest corner of Buchanan Mine #1 Sealed Gob Unit 7); thence N 01°38’39” E 5252.54 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3630404.31 E: 10494884.08 (northeast corner of Buchanan Mine #1 Sealed Gob Unit 7); thence S 86°57’09” E 171.25 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3630395.20 E: 10495055.09; thence S 50°17’07” E 225.97 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3630250.82 E: 10495228.93; thence N 88°40’16” W 11994.75 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3629972.62 E: 10507220.44 (northeast corner of Buchanan Mine #1 Sealed Gob Unit 7); thence S 01°20’37” E 863.81 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3629109.04 E: 10507240.69; thence S 13°26’23” W 962.87 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3628172.54 E: 10507016.90; thence S 09°14’53” W 2902.09 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3626308.17 E: 10506550.52; thence S 01°44’14” E 578.87 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3624729.57 E: 10506568.06; thence S 13°10’47” E 169.16 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3624564.86 E: 10506606.63 (southeast corner of Buchanan Mine #1 Sealed Gob Unit 7); thence N 87°48’44” W 10265.01 feet to a point, Virginia State Plane NAD 83 coordinate of N: 3624956.75 E: 10496349.11; thence N 83°02’31” W 1627.71 feet to the point of beginning, containing +/- 1477.88 acres.
b. Authorizing the operator to permit and operate coalbed methane gas wells to capture and market coalbed methane gas from the sealed mine area and the formations listed at 2.a. above.
c. Establishing the percentages for division of interest for production, revenue and costs for all Respondents in accordance with those percentages as are set forth at Exhibit “B”.
d. With respect to coalbed methane gas in subject drilling unit, applicant requests that the Board establish a procedure whereby each person named in Exhibit B-3 hereto, shall have the right to elect 1) to assign or lease his interest in the subject drilling unit to the designated operator, 2) to enter into a voluntary agreement with the designated operator to share in the operation (including the sharing in all reasonable costs of development of the unit) at a rate of payment mutually agreed to by the person making the election hereunder and the designated operator herein or 3) to share in the operation of the well(s) and costs of production as a nonparticipating operator on a carried basis after the proceeds allocable to such person’s share equal the following:
In case of a leased tract, 300 percent of the share of such costs allocable to such person’s interest; or
In the case of an unleased tract, 200 percent, of the share of such costs allocable to such person’s interest, all as determined by the Board.
e. Providing that any Respondent herein who does not make a timely written election under the terms of the Order to be entered herein shall be deemed to have leased or assigned his coalbed methane gas interests in the subject drilling unit to the Applicant herein at a rate to be established by the Board.
f. Designating Pocahontas Gas LLC, as Unit Operator; providing that the operator shall have the right to drill, develop, produce, market and sell coalbed methane gas from the subject drilling unit; granting the operator the right to market and sell the coalbed methane gas from the subject drilling unit which is attributable to the conflicting claims and interests pooled herein; providing that the operator shall have an operator’s lien on the coalbed methane gas estate and rights owned or claimed by the persons named herein in the subject drilling unit; and granting the operator the right to drill at any legal or specially permitted location on subject drilling unit; and granting the operator the right to drill wells at any legal or specially permitted location on the subject drilling unit.
g. Making any necessary provisions for the escrow of funds pursuant to Va. Code Ann. §§ 45.2-1620 and 45.2- 1622.B.2
h. Providing that the order to be entered herein shall expire two (2) years from the date of its issuance if operation shave not commenced by said date; but further providing that if operations have commenced during said two year period, then said order shall remain in effect for so long as operations continue on the subject drilling unit. However, in the event an appeal is taken from the order issued, the time between the mailing of the notice of appeal and the final order of the Circuit Court shall be excluded in calculating the two year period referred to herein.
i. With respect to separately owned tracts and separately owned interests in the drilling unit, joining all the interests within the drilling unit for the production of coalbed methane gas so that each owner in the drilling unit will share in all production and costs regarding the drilling unit in the proportion that the acreage owned by each owner bears to the entire acreage in the unit.
j. Providing that operations under and in accordance with this order shall be regarded and considered as development, operation and production upon all lands included within the subject drilling unit. Production from any well(s) drilled on, operated, or produced from any part of the drilling unit, no matter where located, shall for all purposes be regarded as production from each separately-owned tract within the subject drilling unit. The portion of production produced from and attributed to the drilling unit and any separately owned tract therein, shall be deemed for all purposes to have been actually produced from such drilling unit and tract, and development, exploration or production operations with respect to any portion of the drilling unit shall be deemed for all purposes to be the conduct of such operations for the production of gas from each separately owned tract in said unit.
k. The Respondents listed at Exhibit “D” are lessors of Applicant. They are joined as Respondents because the leases in question do not contemplate a drilling unit of the size requested herein.
l. Amending all prior Board Pooling Orders entered with regard to Long Wall Production Units and 80 acre Oakwood Units located within the subject drilling unit to provide that the terms of the Order to be entered herein shall govern and control the allocation of production, revenue and costs for all purposes on and after midnight of the day on which the construction of the seals to isolate the mine works shown on Exhibit AA and within the Subject Drilling Unit is completed.
m. Granting such other relief as is merited by the evidence and is just and equitable, whether or not such relief has been specifically requested herein.
NOTICE IS FURTHER GIVEN that this cause has been set for hearing and the taking of evidence before the Board at 10:00 AM, on August 20, 2024, at the Virginia Energy Office, 3405 Mountain Empire Road, Big Stone Gap, Virginia 24219, and that notice will be published as required by law and the rules of the Board.
NOTICE IS FURTHER GIVEN that you may attend this hearing, with or without an attorney, and offer evidence or state any comments you have. For further information or a copy of the application and exhibits, either contact the Virginia Gas and Oil Board, State Oil and Gas Inspector, Department of Mines, Minerals and Energy, the Division of Gas and Oil, 3405 Mountain Empire Road, Big Stone Gap, VA 24219, 276/523-8100 or the Applicant at the address shown below.
DATED: July 18, 2024
Pocahontas Gas LLC
Applicant
By: Sherri R. Scott
Manager-Land Records, Pooling, Division Orders
CNX Land LLC
128 Glenwood St.
Cedar Bluff, Va 24609
ID: 812917