APPLICANT: DIVERSIFIED PRODUCTION LLC Division of Gas and Oil
Relief Sought: PoolingDocket No. VGOB 25-1021-4322
Description: Unit F36
To: Celia Cox Compton Estate Trust c/o Timothy B. Compton; Pocahontas Gas, LLC; Appalachian Energy, lnc.; Kimberly Willis, Henderson Energy, LLC; Donald Stephen Cole; Kenneth Edward Cole; Sherry Looney, Anthony Looney; Byrd McDonald; Greta Meek; Empire Management, LLC; Tamala M Pelphrey; Greg McDonald; Jewell Smokeless Coal Corporation; James William Burress; Margaret Marie Burress Davis; Garnett Cole Cooper; Melanie Dawn Cooper; Corey S. Cooper, Byron D. Cooper; Chelsea Ramey, Chandler Ramey, Cheynee Daniels; Caroline Keen; Teena Cooper; Thelma Cooper Mullins; Rita Gail Cooper; Thelma Lynn Rogers; Chastady Cooper; Terry Allen Cooper; Lucille Christian; Sharon Cooper Daniels; Karen Cooper Rowe; Billy Victor Hartman; Lisa Dean Hartman; Mary Frances Ratliff; Larry Dean Cole; Nancy J Cole; Mona McNeill Cole; Nancy Jane Cole; Edith Goff Street Trust; Fredrick H Combs Testamentary Trust; The Martha E. Combs Trust; CIPL LP; John W Ratliff, Jr.; Estate of Earl Dellinger; F.D. Robertson Trust; Virginia Wells; Cyrus Bernard Nasseri; and OGJ Properties.
NOTICE OF HEARING
Hearing Date: April 21, 2026
Place:Virginia Department of Energy
3405 Mountain Empire Road
Big Stone Gap, VA 24219
Or Via Telephone Conference
Time: 10:00 AM
1.Parties: The Applicant is Diversified Production LLC, 100 Diversified Way, P.O. Box 158, Pikeville, KY 41501. Applicant's counsel is Charity A. Barger, Esq., Street Law Firm, LLP, P.O. Box 2100, Grundy, VA.
2. Relief sought: Compulsory pooling of Unit F-36 in the Oakwood Coalbed Gas Field, designation of Diversified as Unit Operator of Unit F-36, and establishment of procedure for the calculation of production and revenue from short hole coalbed methane gas production, from unsealed coalbed methane gob gas production, from any other Well authorized by the Code of Virginia in an isolated long wall mining panel within the boundaries of Unit F-36, or other CBM well within the boundaries of Unit F-36. This will serve as notification that the relief requested herein will support Diversified's plan to generate revenue from the sale of coalbed methane gas and/or from the sale/monetization of environmental credits associated with one or more gob wells situated in isolated long wall mining panel(s) in whole or in part within the boundaries of Unit F-36.
3. Proposed provisions of Order: Applicant requests that the Virgina Gas and Oil Board ("Board"): (a) pool all the rights and interests in and to the coalbed methane gas in the subject drilling unit; (b) establish a procedure whereby each gas owner who has not leased or sold his gas rights or entered into a voluntary agreement to share, may make elections; (c) provide any such gas owner who does not make a timely election to be deemed as have leased their coalbed methane gas interests to the Applicant at a rate established by this Board; (d) designate Diversified as Unit Operator; (e) make any necessary provision for the escrowing of funds; (f) and grant such further relief as this cause may require, whether or not specifically requested.
4.Legal authority: The relief sought by this Application is authorized by Virginia Code Annotated § 45.2-1600 et seq.; 4VAC25-160-10 et seq; and Virginia Gas and Oil Board Orders in Docket Proceedings OGCB 3-90; VGOB-91-1119-162; VGOB 93-0216-0336 and VGOB 93-0316-0349; and VGOB 93-0316-0348.
5.Type of Well(s): Allocable frac well gas, short hole well gas, unsealed gob well gas, and gas from any other well located in a long wall panel.
6.Plat: See Plat and Identification Tract attached hereto as Exhibit A. Per 4VAC25-160-40, the Plat is certified by Richard L. Bailey, a licensed land surveyor.
7.Respondent's Interest: You are hereby notified based on your rights, interests, and estates in and to the coalbed methane gas within the subject drilling unit as outlined in Exhibit A.
8.Description of the Status of Interest to be Pooled: Applicant seeks to pool the interests of: Celia Cox Compton Estate Trust c/o Timothy B. Compton; Pocahontas Gas, LLC; Appalachian Energy, Inc.; Kimberly Willis, Henderson Energy, LLC; Donald Stephen Cole; Kenneth Edward Cole; Sherry Looney, Anthony Looney; Byrd McDonald; Greta Meek; Empire Management, LLC; Tamala M. Pelphrey; Greg McDonald; Jewell Smokeless Coal Corporation; James William Burress; Margaret Marie Burress Davis; Garnett Cole Cooper; Melanie Dawn Cooper; Corey S. Cooper; Byron D. Cooper; Chelsea Ramey, Chandler Ramey, Cheynee Daniels; Caroline Keen; Teena Cooper; Thelma Cooper Mullins; Rita Gail Cooper; Thelma Lynn Rogers; Chastady Cooper; Terry Allen Cooper; Lucille Christian; Sharon Cooper Daniels; Karen Cooper Rowe; Billy Victor Hartman; Lisa Dean Hartman; Mary Frances Ratliff; Larry Dean Cole; Nancy J. Cole; Mona McNeill Cole; Nancy Jane Cole; Edith Goff Street Trust; Fredrick H. Combs Testamentary Trust; The Martha E. Combs Trust; CIPL LP; John W. Ratliff, Jr.; Estate of Earl Dellinger; F.D. Robertson Trust; Virginia Wells; Cyrus Bernard Nasseri; and OGJ Properties. Respondents' interests are set out more fully set out in Exhibit B-3.
9.Percentage of Total Interest Held by Applicant: 59.0788%
10.Description of the Formation or Formations to be Produced: All the coal seams and associated strata below the Tiller seam of coal including the âUpper Seaboard, Greasy Creek, Middle Seaboard, Lower Seaboard, Upper Horsepen, Middle Horsepen, War Creek, Lower Horsepen" seams, the Pocahontas No. 9, 8, 7, 6, 5, 4, 3, 2 seams, and various unnamed seams and all zones in communication therewith and all productive extensions thereof.
11.Estimate of Total Production: The estimated total production from the subject drilling unit is 125 to 550 MMCF; and the estimated amount of reserves from the subject drilling unit is 125 to 550 MMCF.
12.An Estimate of the Allowable Costs: 18 East Panel Total Estimate of the Allowable Cost = $293,254.01(DEC = $173,250.80 and Other = $120,003.21); 19 East Panel Total Estimate of the Allowable Cost = 255,118.03 (DEC= $150,720.54 and Other = $104,397.49). Estimated Well Cost per well = $715,677.00.
13.Attestation: The foregoing application to the best of my knowledge, information, and belief is true and correct.
NOTICE IS HEREBY GIVEN that Diversified Production LLC, 100 Diversified Way, P.O. Box 3878, Pikeville, KY 41502 is requesting that the Virginia Gas and Oil Board (the "Board") issue an order pooling all interests in Unit F-36 and to name it as Unit Operator.
NOTICE IS FURTHER GIVEN that this cause has been set for hearing and the taking of evidence before the Board at 10:00 a.m. on April 21,2026,at the Virginia Energy Office,3405 Mountain Empire Road,Big Stone Gap, Virgina 24219,and that notice will be published as required by law and the Rules of the Board. All interested persons may attend this hearing, with or without and attorney,and offer evidence or state any comments you may have. For further information, contact the Virginia Gas and Oil Board, State Gas and Oil Inspector, Department of Mines, Minerals, and Energy, Division of Oil and Gas, 3405 Mountain Empire Road, Big Stone Gap,VA 24219, Phone: 276-415-9700, or the applicant at the address shown above.
Dated this 20th day of March, 2026
DIVERSIFIED PRODUCTION LLC
By: /s/ Charity Barger
Charity A. Barger, Esq. (VSB: 93380)
STREET LAW FIRM, LLP
1142 Riverview Street,
P.O. Box 2100
Grundy, VA 24614
Telephone: (276) 935-2128
Facsimile: (276) 935-4162
[email protected]