APPLICANT: DIVERSIFIED PRODUCTION LLC Division of Gas and Oil
Relief Sought: PoolingDocket No. VGOB 25-1021-4323
Description: Unit E37
To: Tazewell Coal and Gas Company, LLC; Pocahontas Gas, LLC; Franklin D. Cole; Karen Hill Gough, Jeffrey Hill; Virginia Mae Cole Rooser; Donna Cole; Pamela Cole, Paul Quincy Cole; Jack Cole, Robert J Mullins; Tammy Cole Payne Viers; Tony Cole.
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 A.M.
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 E-37 in the Oakwood Coalbed Gas Field, designation of Diversified as Unit Operator of Unit E-37, 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 E-37, or other CBM well within the boundaries of Unit E-37. 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 E-37.
This Application is submitted without waiving, but instead preserving, all positions and arguments against, and bases for opposition to, Pocahontas Gas, LLC's pending, competing pooling application for this and all other objected-to drilling units, including but not limited to, that Diversified has already pooled all interest in CBM gas in Drilling Unit E-37, is the designated operator thereof, and is the operator of permitted and drilled coalbed methane Rogers 426 situated thereon.
The Board's Orders in Docket Proceedings VGOB-91-1119-162 and VGOB 93-0216-0336 and VGOB 93-0316-0349, as amended, provide that Rogers 426, a "coalbed methane wells[] heretofore permitted and drilled" is established as a "properly permitted well[]" in Unit E-37 for the production of short hole gas, unsealed gob gas and gas from Additional Wells". See Board Order ¶ 7(g), VGOB-91-1119-162; Board Order ¶ 7(e), VGOB 93-0216-0336 & 93-0316-0349. Under the Board's Orders, and by statute, Diversified has pooled all interests in Unit E-37, is the unit operator of Unit E-37, is the permitted operator of Rogers 426 and, after the commencement of coal operations by the driving of entries and the completion of isolation of long wall panels in Unit E-37, will continue as the designated operator of Unit E-37, and will continue as the permitted well operator of Rogers 426 as a properly permitted well for the production of sealed gob gas. The Board's Orders therefore direct that Diversified is already the designated operator for gob gas production from Unit E-37. Accordingly, this Application is submitted in the alternative, preserving this specific position, and all others.
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: Tazewell Coal and Gas Company, LLC; Pocahontas Gas, LLC; Franklin D. Cole; Karen Hill Gough, Jeffrey Hill; Virginia Mae Cole Rooser; Donna Cole; Pamela Cole; Paul Quincy Cole; Jack Cole; Robert J. Mullins; Tammy Cole Payne Viers; Tony Cole. Respondents' interests are set out more fully in Exhibit B-3.
9.Percentage of Total Interest Held by Applicant: 73.733%
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 Upper 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: 19 East Panel Total Estimate of the Allowable Cost = $1,049,302.09 (DEC = $773,676.66 and Other = $275,625.43), Estimated Well Costs = 715,677.00; 20 East Panel Total Estimate of Allowable Cost = $2,443,675.89 (DEC = $1,801,783.33 and Other= $641,892.56), Estimated Well Costs= $707,985.00.
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]