we ready
like good morning everyone today is
November the 21st of 2023 and this is
the vir
guess and or at a regular meeting in the
department of energies building I would
ask everyone to silence their phone and
the first order of business is we've got
some folks that's participating remotely
and we have to
approve uh the opportunity remotely the
first one was Will Cochran and he is
uh more than 60 miles away and he's
requested
uh to participate remotely and I need a
motion and a
second I'll move that we accept his
reason for not being here
today have motion a second all in favor
I
yes the next one is Mr Prather Bruce
Prather he's more than 60 miles away and
he's requested approval to participate
remotely I need a motion in a
second
accept motion have second I'll second
that we have motion and second all in
favor yes yes opposed okay thank you the
next one is uh Mary quillin Miss quillin
has some medical problems that's causing
her to uh stay at home today and she's
still with us she's going to participate
just needs to do it remotely and I ask
that we approve her request for remote
participation I need a motion I'll move
that we approve uh the request for Mary
qu
than we have a motion and second all
those in favor say I
I okay now we're all together again now
let's let the board introduce themselves
starting with Mr Jon just Janson I'm a
public
member uh I'm Donnie R representing Cole
and serve as chairman I'm Bill Harris a
public member
public
member I'm Bruce prer I represent the
oil and gas industry on the
board thank you Miss
quillin Miss
quillin I heard her on there earlier Mr
Cochran uh yes I'm Willie Cochran I'm
the Virginia energy
member thank you miss quillin you with
us thank you and we also have Eric lanon
from the AG's office Eric thank you for
being with us
today good morning Mr chair and uh can I
uh can I introduce Jackson Brown as well
I believe
no okay yes please that's that's
certainly if you'd like to just
introduce himself uh he uh he has been
here before uh but in case uh in case it
has not been mentioned yet um we will uh
we will be having him as the designated
attorney for the Virginia Gas and Oil
board uh in the pretty near future uh I
expect uh around uh around the beginning
of this year in the meanwhile I'm here
to uh kind of facilitate that transition
uh I'm here here uh to kind of take the
lead today and uh and then in the future
I'll be I'll be along as well for a
couple of other meetings but Jackson uh
is our newest Assistant Attorney General
uh in the environmental section and uh
and he is uh he's well I won't speak for
him I was about to say he's pleased to
be with you but I'll let you speak for
yourself
Jackson hey it's a great to meet
everybody and yes happy to be here I'm
really thankful for Eric to help kind of
uh guide this transition process process
so you know interested to be working
with you'all and excited to work with
you in the future and you know kind of
learn the ropes from from Eric for these
next you know meeting or two so great to
meet youall and um yeah happy to be
here thank you welcome aboard
Jackson we also like to recognize we
have uh bill scarupa with the he's the
director of the division of gas and oil
we got Sarah Gilmer with us today and uh
we got Bradley
boy with us
today
uh the board will approve
and remote attendant we've already done
that do we have any public
expression anyone online or anyone
here
when do you want to do the
bank number
three better if I work off the docket
instead of the
minut okay
at this time we' ask First Bank and
Trust our escrow agent to come forward
and uh present our corly report for July
through
September Jody good morning
everyone
morning I assume everybody has the pdf
version we'll start out on page three
this is a summary of our third quarter
report the beginning balance as of June
30th was
5,138
4.95 for the third quarter we had
royalty and working income deposits $
39,5
28991 interest earn this is money market
and Cedar's interest
$2,568
199 fees paid for the quarter was
$5,151
distributions were a little slower for
the third quarter we distributed out
$612
346 we had a
$14.40 adjustment and that was a voided
check from prior months that we needed
to adjust in this quarter leing us an
ending balance for September the 30th at
5,183
92170 on page four the review of 2023 so
far this year we have processed eight
treasury dockets for a total of
$2,970 and 78 cents we've processed 18
other dockets for a total of
$7,923
we've issued over 170 checks that range
from 7 cents to
28777 um of those 170 checks 10 of those
were issued for less than
$100 30 of those were issued for less
than a
dollar on page five these were items
that are outstanding as of September the
30th and this is a long list as
usual these have been issued but not
cashed
yet and that goes through
page
32 it looks like a lot but we have
$63,000
outstanding and page 32 is broken down
between the gas
companies does that list
U do you get mail
back sometimes we get returned mail but
not bad address or just they don't want
it bad address is normally
but not very often the gas companies
have done a tremendous job with getting
correct
addresses so these are people that just
have not cashed their
checks on page 33 this is our check ex
treatment for 2023 so since this was the
third quarter we had not exuded checks
yet and you'll remember five years ago
we had dockets that had, 1500 people on
those
dockets so we have a lot that's a
sheet a lot of checks issued but not a
total dollar amount that's very high
less than $3,000 to be a
sheet then starting on page
40 this is our balance sheet this is as
of September so this is only for the
month of September and it lists each
account number each well their beginning
market value deposits we received for
that month
interest Cedar's interest any fees
distributions and then we have the
ending balance for each individual
account excuse me just a second could
you tell us about the color code I'm
scrolling down but I haven't gotten to
that it's on the last of the balance
yeah I thought it might be I had
looked so the pinkish colored ones are
ones that closed during that
month the grayish tannish colored ones
are working interest accounts okay thank
you on page 49 this is a list of our no
w9s these are people that have oh oh
no well I saw your
BL generator
justor
y
the go get
let's just spend for 10 minutes and
see still okay Eric are you there I sure
am okay we just lost the
projector
oh it's booting back you can't see us
basically well we didn't know if we
completely lost you or we just lost
visual so I see yeah we can see you just
fine and we can
you're coming
back Mr Prather are you still on the
line yes
sir Mr
Cochin yes sir still here okay Mary
quilling still not okay I'm sorry you
may proceed
okay I need some
excitement we're on page 49 this is a
list of the no w9s these are people that
have been issued from the dockets but
they have not submitted a W9 so all they
need to do is submit a W9 to the gas
companies and they will be paid out
according to what is on this
sheet and there's a lot of names on the
list is this
public on our website yes the
spreadsheet is
we have 432 lines on the
spreadsheet so a total of a little over
$40,000 that's waiting for people to
submit a W9 to claim that
money on page 60 this is a list of the
annual
distributions that we have made since
First Banking Trust became the escrow
agent in
2010 all the way up to
today so we have royalty and working
income the amount of distributions for
the year and then the net
amount and you'll see in 2016 and
2017 there was a lot of money that out
of the account and that was the years
that we had several dockets that had
over a thousand people on those
dockets page 61 this is the investment
of the funds so at the end of
September we had over $3 million in the
IC money market account and then 2
million in various
CDs so the weighted average on the CDs
is
5.36 while the money market is at
1% and this reflects our most recent
changes most recent changes of the
investing the $2
million and I believe all of those went
out for a
year back in July yeah I see it any
question on page 62 this is a comparison
of the Cedars rates from this meeting to
the prior meeting treasury rates and The
Brokerage CD rates
and then the final page is AR range of
CD rates three months they're running
anywhere from 5.25 to
5.35 months 5.35 to
5.4 nine months 5.33 to
5.45 and then you get out to a year and
it's 5.35 to
5.65 and then the two years backs back
down to 5.05 to
5.25 questions for the
board I have a motion to accept the
financial report
right I'll make that motion to accept
the report and we have a
second any
discussion all in favor say yes yes yes
yes yes those oppos not the next item we
need to address is the renewal of the
contract
for uh the
bank uh if First Bank and Trust is
willing uh we'll ask you guys to speak
on that so this is the last renewal of
our fiveyear contract yes yes we are
wanting to renew for
2024 then it has to go out Tom for bid
2025
correct any questions is it
automatically renewed if you'll choose
to do so other words for bid after this
or after this year I think it goes out
for bid but even for
this has to be go out the new RFP but
the new one is after this fifth year is
that correct yes yes okay that's right
okay
yeah so what's the will of the board
well I certainly have no problem and
with continuing I think these folks have
done a great job is that a motion Mr
haris well I'll make that a motion thank
you do I have a second second any
discussion all those in favor of
extending the contract for First Bank
Trust Company for another year please
say yes yes yes yes those
oppose Cody you're with us for another
view thank you thank you guys you all do
a tremendous job and it's a lot of work
we got some very dedicated employees
appr
effort
okay next we have a petition from KY
Rock Energy establishment of Ky Rock
number three is sealed God
production consist of
41983
acres for drilling development and
production from cobane methane from a
sgbs sometimes referred to here in as
the subject
formation pursuant to the Virginia code
45.2 d1620 which drilling uh unit is
further described as depicted as
descript exhibit a in the
annexed here
to this is docket number VG 23-
91942 73 it was continued from the
September meeting all parties interested
please step forward introduce yourself
yes sir Freddy Mullen for KY Rock Energy
org P for K Rock Energy Aaron Davis Rock
Energy Miss Gilmer you want to swear in
the
witnesses Mr Davis Mr P you swear and
affirm that your testimony is the truth
the whole truth and nothing but the
truth
yeah you may proceed Mr Mr P could you
please state your name Morgan p and how
are you employed uh geologist at Key
Rock Energy and key Rock energy is
authorized to conduct business in the
Commonwealth Virginia is that correct
yes sir and there's a bond on file with
this department is that correct yes and
you're familiar with uh application or
petition number 4273 is that correct yes
and this is for a coed methane wheel yes
sir and the unit is located in the nor
CED gas field yes and the the how many
acres does it contain
41 983 and can you explain to the board
what KY Rock plans to do if this
application is granted uh we will permit
to drill the well drill the well and
pull gas off the SE Gob area deep mine
41 and clear that gas to generate
environmental credits and to make the
mine safer and there's a particular seam
that this coed methane would be produced
from is that correct yes the JW B SE all
right and has kyrock obtained leases for
a portion of this unit yes and have
those leases been obtained from
intervest and its various subsidiaries
yes and how is intervest informed of
this
proceeding uh certified ma return
receipt requested and that documentation
has been filed with the board is that
correct yes and is there uh what
percentage of the unit does KY Rock
guarantee have under lease as a result
of its dealings intervist Approximately
80% and how much is not under lease uh
the remaining approximate 20% and a
portion of that uh uh of that Unleashed
portion those owners are unknown is that
correct correct and how much it
percentages that
14.3 and how are these unknown Unleased
owners of this proceeding notice a
publication in the Dickson star now we
have uh some known leas owners as well
is that correct yes and uh that would be
the r track correct and how were those
gentlemen
informed uh registered mail and in
person okay and have you filed all
documentation relating to that with the
with the board yes and what percentage
of the unit are you seeking to pull
today 100% now are you requesting that
the board pull the interest of everyone
listed on exhibit B in this
application sir and are you requesting
that the board establish a procedure for
all parties listed on exhibit B3 uh have
the right uh to
elect yes and those would be three
different options is that correct and
what lease terms would you be offering
any of these owners that uh voluntarily
commit ter identical to intervest 12 a
half%
royalty the exact same and what's the
proposed depth of this well uh 1,170 ft
and what are the estimated reserves 175
mmcs and you're familiar with the
projected costs of this uh of this well
is that correct yes sir and you prepare
prepared the AFB filed with this
application yes and what's the estimated
dry hole cost approximately 200
$62,000 and are you asking the board to
create a sealed Gob drilling unit to
further pool that unit
yeah and a portion of this pooling would
be voluntary that would be the intervest
portion correct correct and a portion
would be involuntary correct and as far
as the uh escrow uh you're asking for
escrow for these unknown uh unknown
parties correct yeah and are you asking
the board to name key Rock energy is the
operator for this yes sir and in your
opinion if the board grants our
application today would it prevent waste
promote conservation and protect
correlative rights yes that would be our
evidence Mr chair any questions from the
board hearing n there was uh there was a
little concern when this m came up on
the P4 sea
well actually the
job
you
uh yes I believe that well is already
plugged we entered into an agreement uh
with intervest to assist in the plugging
operations of that
well Mr M you may proceed and that would
be all the evidence that we have uh Mr
chairman regards to uh docket number
4273 any questions from the
board Mr chair
chair I understand you're soliciting
questions from the board and I'm not a
member of the board but uh just want to
flag something under paragraph 14.1 of
the draft order which lists First Bank
and Trust as the escrow agent for
unknown or unlocatable
persons uh I understand it's been the
board's practice for unknown or
unlocatable persons to list the
Department of Treasury as the escrow
agent uh and uh just consistent with
that practice it's certainly not wrong
to uh to to list exactly the esro agent
that was done but consistent with with
practice you may want to just approve
this draft order with that revision
adding uh the Department of Treasury
division of unclaimed property
instead and Mr chair I think you may be
looking at an old version of the
proposed order that's actually in uh the
version that's currently in front of the
board the escro agent's list is the
Department of Treasury okay
great
okay anything
further none board operates on a
mo I'll make a motion for
approval we have a motion we have second
second we have a motion we have second
we have any
discussion M Gilmer will you call the
board
please yes Mr Harris yes Mr rler Iain Mr
Jansen yes Mr cofin yes Mr
pord
yes that docket item is approved as
presented thank you Mr chair next we'll
have a petition from kyrock energy for
well location exception pursuant to code
45.2 -1
16.16 this is u a well near Contour deep
m41
doet number VG 23- 091 9-42 74 is also
was continued from September and we
would ask all parties interested please
step forward Freddy bones for key Rocky
Mr chair you may all right Mr P can you
please state your name for the board
please and you are employed by kyrock
energy as a geologist is that correct
yes and KY rock is authorized to do
business in the Commonwealth of Virginia
yes sir and KY Rock has a bond on file
with this department is that correct yes
and you are familiar with this
application this dock at 4274 is that
correct yes and this involves a well
location exception for a CED methane whe
correct and is this unit located in the
nor C bed gas field yes and how many
acres does this uh unit contain
41983 acres and tck has obtained uh
leases for a portion of this unit is
that correct yes and have those been
obtained from intervest yes
sir and can you explain to the board
what KY Rock plans to do if this
application is granted we will drill a
well into the jaw bone seam into the
active mine deep mine 41 and produce gas
and generate carbon credits and how were
the the different parties named informed
of this proceeding we have some known
and some unknown uh registered mail or
certifi mail and uh Dickson star
publication and has that documentation
been filed with the board yes and what
percentage of the unit does key Rock
Energy have under lease as a result of
its dealings with inter
8.12% and so uh the B the the balance KY
Rock does not have under leas is
approximately 20% and what percentage of
of that 20% approximately 20% are
unknown
14.33 and you said these unknown
Unleased owners were informed uh by
order of publication in the decking star
yes sir all right and previously KY Rock
has has sought to pull uh 100% of this
unit today correct yes and the what is
the proposed depth of the well 1,170 ft
and the estimated reserves 475
mmcf and what is the estimated dry hole
cost of this uh well uh 200 proximately
262,000 all right and the uh previously
you said that
uh
p454 C has been plugged is that correct
I believe so all right and so the
proposed well location would also be 858
ft from uh well number VC
50342 yes and your requesting that uh
this board enter an order enabling key
Rock number three to be drilled is
depicted on the exhibit cave with the
application yes
sir and is the proposed revised well
location necessary to effectively and
efficiently dve drain a portion of the
common sources of Supply underlying the
unit the 41.3 acre unit yes and is it
your opinion that it cannot be
adequately and efficiently drained
without an exception to the distance
limitations and spacing rules
yes and that would be our evidence Mr
chair any questions from the
board anything further Mr M no
sir on a
motion I'll make a motion for approval
we have a motion we have second second
any
discussion M Gilmer will hold the board
please yes Mr Harris yes Mr Ratt obstain
Mr Jansen yes Mr
pther yes and Mr
Cochran
yes Mr Mull Miss has approved as
presented thank you Mr chair and thank
you to the board particularly Mr Jansen
who was kind enough to talk to me about
my proposed order and also to to Sarah
and Brad who have we were working as
late as 5 o'clock yesterday evening to
try to get this ready so thank you to
every Ro you all have a good
Thanksgiving thank you you all too thank
you before you guys leave uh let let's
talk about December's docket yes sir
while you're here got one item on the
docket uh we've got some
conflicts so we were going to see if you
would prer us back a
week or move it to January what are you
most comfortable
with it's the honey Camp it
is is it this for the December meeting
for the December meeting and the option
is to move it move it back a week got
some folks that's going to not be here
or move it to the January meeting do you
know what uh what would be the revised
date if we move it back over it's the
11th I December
11
well
that I think we would probably rather
move it back a week than push it to
January Mr chair not to be disagreeable
but I'm in Rono that day I'm not
available that on the 12 we
we they may not they may do better
without
me
okay now now what's
your I think you
do thank
you I I know it's not your regular day
I'm available either the 11th or the
14th uh which whichever would suit
everyone's schedule better I know we
don't like moving things
around I I don't think I can make the
11th I can't even that's pretty busy
here on the
14th the an Christmas event
for VC is board meetings that day also
so VC is board meets that second
Thursday that's however you all want to
do it but I I won't there's no way I can
be here of
12 was going to be a hard one too
yeah move it to
January afid to say that to
my
well you can always blame
me we need to write down you said
that I'm sorry what are you going to
do we were also hoping to move to the
January board the um de mine
26 slope area that we had received a
letter on uh we have that clearly
completed but in the process we found
the five favor tracks inside that unit
that we just finished title on so we
were hoping to have that submitted for
the
January what day do we need to have
submission by for
January
you know what day the meeting is in
January to dat January
16th I'm fine working with okay I'll
leave that up to you all that's going to
be it
tricky
I would still like to have it in
December if
possible
okay we move it back to the
O all right anything father and the the
day for submission for January
22nd 22nd of December it's December 15th
I told you wrong
okay
I need to
uh ask the board before we do this we
move it from the 19th to the
12th do any of the board members have
conflict that you can't be here on the
12 i' have to call in
probably Mr
Pon I have no
problems Mr
cochr I'm supposed to be um in meetings
on the 12th um I don't know with I mean
it' be a discussion with
Phil um of course now if I could remote
in I could probably do it but I had to
be in person I may have to work some
things
around St
Char you'll be gone too I'll be gone
too 11 12 10
13 to call in too so I don't know
that you may not have four here that I
I'll be available on 12 but I'll be gone
after that
I have a motion we cancel the December
meeting and move everything to the
January
document move a
motion I'll I guess I'll make that
motion since we I'm not sure we're going
have a quum yeah it doesn't sound like
staff's not g be yep I'll move that we
move the December meeting to January
okay we have
second second Motion in second M Gilmer
you po
board Mr yes Mr yes Mr yes Mr
Prather yes Mr Cochran yes okay thank
you sorry guys we thought we moved it
back we were okay but we don't have a
quorum we don't have AUM
I hope all of you have a good chral
thank you yeah thank you thank you so
are
we then for January 16th is
that the normal day yes okay thank thank
you all thank you thank
you Mr schars a petition for Pocahontas
gas LLC for dispersement of escrow funds
here to deposit in the board's escrow
agent ATT tributal ATT tracks 35 6 68
and
7 this is uh docket number VG
95-102 4-
0526 I ask all parties interested to
please come forward we have another unit
docket number two uh let me read that
into the record it's BG 92- 0721 d02
34-02 all parties interested please step
forward Mark Schwarz and Kelly Barry
good
morning good morning you make you we
need to swear Kelly in yes you squar
affirm that your testimony is the truth
the whole truth and nothing but the
truth I
do you right proce Mr Schwarz thank you
uh Kelly could you state your name for
us
please Kelly Barry uh who do you work
for Pocahontas gas LLC and are you
present this morning uh on behalf of
Pocahontas gas with regard to a
dispersement petition uh pertaining to
unit
y20 yes and what tracks are we talking
about in terms of this
dispersement uh we are requesting to
disperse tracks three five six 6A and
seven okay and
uh the what did what did you do to
notify people uh who might be interested
in this dispersement uh that we were
going to have a hearing
today uh we mailed a copy of the
petition by registered mail return
receip
requested and and when did you do
that
um good question I'm sorry I believe we
did it on
October
um 26 okay and uh did we have an an
updated address that you have
subsequently filed with the
board yes we received um correspondant
from chios
LTD um who
is a party being requested to be paid
that they have an updated address um and
they provided us with the documentation
for that updated
address okay and chos is spelled CH h i
s o correct that's correct and have you
filed uh uh a an updated exhibit double
e and and updated your table one to
reflect that
address we will ask for Miss Gilmer to
um set the petition back to us to be
able to upload those documents uh after
the hearing is over Okay so so you're
going to you're going to fix those
addresses uh so the table one is
accurate and and and exhibit dou is
accurate once we have the
hearing yes okay and at page two of the
the PDF that that the board members have
uh there's a section it's it's actually
section five which is at the bottom of
page one a factual basis for the relief
requested I thought we just review that
for a moment um with regard to uh track
three Pok onest gas is is a gas claimant
correct that's correct okay and with
regard to uh uh the company chisos that
we've talked about uh there's a royalty
split agreement pertaining to Poconos
gas and chos and Rockport oil and gas
LLC that is correct okay and is that a
50-50
agreement yes it is and then with regard
to the uh requirement that we notify uh
coal owners or or conflicting claimants
which in this case would be coal owners
have you done
that yes okay and uh and did any of them
uh respond to the notice and provide uh
documentation to support a
claim
no and then lastly um uh did you provide
have you provided within your
application we'll get to that eventually
and a detailed accounting with regard to
payments uh with regard to dispersements
uh and and a balance calculations uh to
be considered by the
board
yes uh and then in in the event that
this lastly in the event that this
application for dispersement is approved
are you requesting that the operator
wellon gas be allowed to pay the people
uh listed in all the people listed in
exhibit dou e uh directly rather than
escrowing those
funds uh no just because this is an
inactive unit and the royalty for this
unit is currently being paid under vp8
sealed Gob unit one sorry right so what
happens in the event of this
dispersement is the escro account gets
closed that's correct and and and
further production uh with regard to
this with regard to the people in this
unit uh is going is going to be under a
sealed go order that's that's uh that's
that's already paying correct yes that's
correct okay okay uh basically this this
unit as a production unit goes away and
the escro account goes away if this
petition is
approved yes okay have you provided a
table
one yes okay and and for reference I
think it's page six of the PDF that the
that the board has uh and sometimes we
have percentage uh disperse tables and
sometimes we have uh dollar amount
tables is this a percentage
table yes it
is and have you provided in table one uh
the name of everyone that we propose uh
receive a dispersement
here yes and except for chisos on on the
exhibit that the board currently has is
have you provided what you believe to be
the correct address for every
everybody yes and the address for chesus
will be updated after the hearing today
okay uh and when the escrow agent
assuming this is approved uh goes goes
to uh uh cut the checks uh what what the
what they should do is take the
percentage in the second to last column
and multiply that times the balance on
hand at the time the dispersement is
being made and that'll generate the
correct dollar amount is that true that
is correct and that although there
aren't current royalty payments
currently going into this account that
there there might be some interest
occurring and so that's that's why we
need to await the date on which the
dispersement is
made yes that's correct okay and then
you submitted a revised exhibit uh e
which is the uh escrow exhibit that's
actually page seven following table one
and you've indicated there that if these
dispersements are
approved uh the escrow account will no
longer be required so that true that's
correct okay and you provided an exhibit
double e uh which is kind of the path
forward um consistent with table one uh
in your prior uh prior payment history
uh and and except for the chisos address
that's
correct that's correct
uh and then going to uh your accounting
which is a PDF page
13 um do you have that in front of you
Kelly yes okay uh and the point of uh
well let me start back a little further
did you attempt to uh locate
documentation regarding all of the
deposits that uh the operator has
made yes and then did you compare those
deposits to the dates and amounts to the
bank
records that is correct okay and in some
instances you found differences but you
were able to uh come up with an answer
as to why it appeared to be
different uh yes okay for example on PDF
page 13 there are some dark uh darker
boxes or s uh uh around uh entries in
the in the third column and the fifth
column from the left let's take for
example um uh November 25th 1993 you've
got
$40.25 and you got
$32.49 and then if you come across to
the banks records you got one deposit of
7274 right that's correct and it
basically you concluded that there was
not a problem there because if you add
the amounts the checks to the amount of
the deposit come up with the same
number that's right okay so for
instances or differences where you that
you were able to account for those you
put the put them in Brackets and then
you've got stuff in yellow
right yes okay and and you've got a
couple of yellow entries in the third
column immediately and then a um a
yellow entry in the fifth column from
the left uh March 31st 1993 and those
yellow highlights are things that you
were not able to account
for that's correct we were not able to
reconcile our records with those of the
bank and in some instances I think we
could guess for example if you look at
1025 1994 you've got uh
4649 versus 3649 and we could guess that
maybe uh somebody put in a three instead
of a
four right but we but we don't know okay
yes uh but once we get past page 13 we
do not appear to have problems for many
years
actually correct yes okay that's correct
and then we get down to you always do a
calculation uh to to try to compare uh
the first bank balance to to balance the
calculation that you make uh and and
you've reported there that that you you
see a difference of what
amount
$176
58 that your your total is slightly in
excess of First Bank by that
amount yes previously discussed or you
previously indicated that that your
current this unit is currently paying
under vph sealed go one and you've given
us the docket number
that's
correct then I think if we
go
see and and at the very end of this uh
document you or this petition you've
included copies of the split agreements
or or other agreements that result in or
approve a split and you also uh indic
given proof with regard to your prior uh
mailings uh to the coal owners uh a
supplemental Affidavit of mailing with
regard to those owners and and you've
given an example of the of the letter
that you sent out correct yes that's
right uh Mr chairman I think that's it
with regard to this dispersement
request thank you any questions from any
member of the
board
I have
uh on the chart okay what page is
that think I'll tell
you page
six and I know it's it's only good for
that day but could we have the date
certain that that those calculations was
run it's based on percentages and we all
realize that but we've actually got
numbers there
right and I just I think somewhere on
there we need that disclaimer in case
somebody picks this up and says well you
owe me this many dollars if we had a
date
certain that that was run and it should
be pretty simple to do but
I that dat that table is generated by
eforms so there would need to be a
modification on the end of of Virginia
Department of energy to be able to add
in the date um that those funds are
accurate as
of that sounds a little more complicated
than just sticking a number in there
like my guest though ke Kelly and and
Sarah's there as well are you are are
you working off of look
here the the last date on the exhibit J
which is 731 2023 that that is the
that's the the last date that was
available um as far as escrow balances
and eforms so that would be the date
that these percentages and dollar
amounts are accurate as of okay if you
look if you look at page uh 19 Mr
chairman at the at the bottom there it
indicate it gives a balance as the July
the July 2023 first bank statement and
it gives that balance and Kelly is it is
it that balance that you use to apply
the percent percentages to generate the
the dollar AMS in table one you think
that's correct because because at the
time that I filed this petition that was
the most current escrow account
information available from the bank okay
Mr chair yes since then um First Bank
interests recently have have sent in the
new spreadsheet so we have the spread
sheets through October now but but and
Kelly submitted it they weren't
available to her okay so we just
recently got them so everything's
updated now
but okay should be okay all right any
other
questions anything further Mr Schwarz
not on this
one that doesn't sound
good board operates on a
motion motion to approve do I have a
second second have motion a second any
discussion M Gilmore will you follow the
board please Mrs S yes Mr Harris yes Mr
R yes Mr Jansen yes Mr
Prather yes Mr
Cochran
yes thank you Mr schwarts that one is
approved as presented thank you Mr
chairman next we have doet item number
petition from Pocahontas gas LLC for
disp dispersements of escro fund
deposited in the board's escrow agent
tribal to track two and a portion of
track
13 this is docket number VG o 99-
0518
0720
d02 all parties interested please come
for Mark Schwarz and Kelly Barry you may
proceed Mr Schwarz thank you sir uh
Kelly I'm going to remind you you're
under oath
okay yes and I'm going to ask you to
tell us your name again
Kelly Berry and are you appearing do you
work for and are you appearing on behalf
of Pocahontas gas LLC with regard to a
petition for dispersement pertaining to
unit V as in Victor
47 yes and what tracks does this
petition pertain
to uh we are requesting
dispersement
um
for all the remainder in escrow of track
two and a portion of track 13 okay and
in this situation though since there's a
little bit let me close the window
here and in in this instance we we're
not closing the escr account there's
still going to be a little bit of the
unit percentage wise and acreage wise in
in ESC correct that's
correct
[Music]
uh and in this instance we've got we're
also requesting an authorization to pay
directly uh to the people that that that
are are exiting the escrow account at
this point and to dismiss Some Coal
owners is that
correct
yes uh and and like like in the prior uh
docket item that we just just talked
about at page two of of your uh
application page two of the PDF you've
set forth the reasons uh why uh you you
are in in in front of the board today
asking for dispersements a reason a is
there some royalty split agreements
correct yes and the second reason is we
have some gas claimants under the uh
under the law and and and uh and we've
noticed uh the the uh the co-owners are
conflicting claimants and they have not
provided written proof of of valid
claims so the gas claims Prevail under
the law uh uh you've also indicated that
the board has already dismissed uh
co-owners uh that's section c on page
two uh but is that a fair Summary of why
we're in front of the board today
yes okay and then once again have you
provided another table one
here yes okay in table
one uh is at PDF pages eight and
nine uh and once again I ask if
uh this is a percentage table or a a a
dollar certain
table a percentage table okay and once
again then uh when the when the escrow
agent act if this is approved when the
escro agent goes to uh cut the checks uh
to the various uh owners uh should the
escrow agent use the percentage in the
second column from the right hand side
of the the table multiply that
percentage times the then balance on
hand and then that will result in in the
correct royalty number is that is that
what the escavation should
do yes okay uh and have you uh provided
the name of every uh proposed recipient
of the Distribution on table
one yes and to the best of your
knowledge have you provided a um a
correct address for those
people yes and what did you do to let
these folks know we were going to have a
hearing today
we mailed a copy of the petition by
certified mail with returned receipt
requested okay uh and then at the bottom
of table uh table one you provided as as
is customary the the the source of the
production the wells that contributed to
the escr account
right
yes and then in the event this uh is
approved obviously the people in
escrow uh are are going to change so you
provided a revised exhibit e which
starts at page PF page 10
correct
yes it continues for some
time yes it
does p page
24 yeah and let's go to page 24 for a
moment just to kind of uh summarize the
progress that you all have made in terms
of reducing the the number of people in
acres in escrow uh what's what is in the
event that this uh petition's approved
what what is the total total acreage
that's going to be in conflict or in
escrow
0.938 so less than an
acre yes and as a percentage of the unit
what percent would that
be 1.29
8% and then also if the uh application
or petition is approved we're going to
we're going to to be changing the people
that we are able to pay directly so have
you provided starting at
page uh 25 PDF page 25 a revised exhibit
e which is the payment plan going
forward
yes down to I think exhibit J which
starts
at page 59 of the
PDF we just spoke about um what you do
to prepare this in the prior uh
um in your prior testimony on on the
previous case but in in essence what you
do is you you accumulate the deposit uh
I'm sorry you accumulate the checks that
the operator has paid and you compare
the checks paid to the deposits made and
you look for differences right that's
correct and we've got a
deposit uh on September 30th uh 2001 it
looks like uh which does not relate to a
check that was issued so we we have no
idea what happened there
right right okay and then as we go down
when we get to PDF page 60 you have some
differences but they're they're
bracketed in Darker brackets and you and
you satisfy yourself that you can
account for the checks and the deposits
and they
match yes okay uh we get following pages
I don't see any differences that you've
noted and then at PDF page
64 uh you have again done uh your own
calculation to to back into a a balance
and you've compared your calcul relation
to the uh First Bank and Trust balance
and you've you you got a difference
right yes and what's the amount of the
difference uh the bank balances
$698 more more than you come up with
right yes and then as we as we work
through the rest of the the petition
here you provided the board with copies
of the um the the we at the split
agreements uh for example
um my page 66 youve got in paragraph one
an indication that it's a 50% interest
um and I think we as we go through
[Music]
here you've also got your supplemental
Affidavit of mailing with regard to Coal
owners that give them an opportunity to
file uh written written proof or
arguments with with the board uh and and
and the operator indicating that they
have a claim uh and and you previously
testified he did that and and nobody has
responded with uh with proof for
documentation is that correct that's
correct yes Mr chairman I think that
this is everything with regard to docet
item
seven thank you Mr Schwarz any questions
from members of the
board hearing on anything further Mr
schars that would do
it board operates on a
motion uh I offer a motion for approval
we have a motion we have a second second
have a motion we have a second any
discussion skimmer will you P the board
please yes Mr har yes Mr
Iain Mr jansson yes Mr
Prather yes Mr
C yes Mr Schwarz that one is approved as
presented thank you thank you so much I
hope all of you have a great
Thanksgiving holiday and apparently I
need to wish you merry Christmas as well
so talk to you after the new year thank
you you too we appreciate thank you all
bye
bye we need a
break oh I'm
okay you good we just
continue uh item number eight a petition
from intervest operations operating LLC
for well location exception located in
the pound qu quad angle uh docket
numberers VG 23-11 21- 4275 all parties
interested please come
forward Tim Scott
and we have a bad Echo uh we
do mute your computer
Tim do that okay and who you have with
you Larry
Reeds M Kilmer you want to swear Mr Reed
in Mr re you swear and affirm your
testimony is the truth the whole truth
and nothing but the
truth I
do thank you is that the only witness
you have Mr Scott yes sir yes sir that
the only W only witness you have yes sir
it is you may
proceed thank you um Mr Reese please set
your name by whom you're employed your
job description Larry Reeves employed by
interrest operating as a landman and uh
you participate with the preparation of
application is that correct yes and
we've with our application we filed an
exhibit B which with the mineral owners
uh underlying this particular unit is
that correct yes we do and those are all
the mineral owners uh who have an
interest in this unit is that also
correct yeah and who's um who operates
the will from which this well location
um is sought inter rest also and then we
we did notify the parties list on
exhibit is that correct yes we do and
how was that
accomplished um certified mail with the
return receipt requested and we provided
proof of our mailing to the board is
that correct we did okay and then uh
with regard to um why this particular
location was chosen by intervest can you
explain to the board why that
happened um due to the state roads all
the development in this area the homes
uh several cemeteries um we ended up
pulling it back just shy the the state
bacing so it if um so there's not too
much of an overlap is there so what
would be the the the number of Acres
that would be lost in the event that
this application's not uh approved
today 109.5 six acres just shy of the
112 um what's the proposed depth of this
well
6325 ft and what are the potential loss
of reserves if the application is not
granted
today
106 or 1,6 mmcf sorry and then um if the
application is approved by the board
today would it prevent waste promote
conservation and protect relative rights
yes that's all I have from Mr luk
Reed
he said that was all he had oh I'm sorry
I didn't I didn't hear SC I'm sorry yeah
that's all I have for Mr re you have
anything further for the board not on
this uh docket item no
sir any questions from the
board this board operates on a
motion motion for approval the
application I'm sorry i c y yeah that's
okay I just say of the application of a
motion we have a
second any
discussion M Gilmer will you pull the
board please
M Mr Harris yes Mr at Mr Janson yes Mr
Prather yes and Mr Cochran
yes that one is approved as presented Mr
Scott
uh next we have we have docket number
nine a petition from intervest operating
LLC for pooling unit fe-
63607 docket number is BG o
23-11 21-
4276 all interested parties please come
forward you may
begin Tim Scott and Larry Reeves for
intervest you may proceed thank you U Mr
Reeves again your name by whom you're
employeed your job description Larry
Reeves employed by anest operating as a
landman in this particular application
we're seeking to establish the unit and
force pool the individuals that's on
exhibit B3 is that correct yes we are
and is this unit subject to Statewide
spacing yes how many acres does it
contain uh 112. 69 Acres now as far as
the parties listed on exhibit B3 we have
provided revised exhibits because we've
we are efforts are ongoing is that
correct yes
okay now how was the notice of this uh
hearing provided to the party's listed
on exibit
B3 um notice was sent by certified mail
with the return seat requested and we
provided the proof of our mailing to the
board is that correct yes we have now do
we have any
unknown no no unknowns okay intervest
has authoriz the transact business in
the Commonwealth correct they are and
there's a blanket Bond on file with the
Department yes there is and if uh you
were able to reach an agreement with the
parties listed on exhibit B3 what would
be the terms you would offer for an only
gas Le for the acreage one8
royalty um $5 an acre per year for a
paid up lease
okay what does um the inter presently
have under
lease uh
3.88% and what percentage of the unit
you seeking to pull
69.1 2% and um for the board's
information we have um a similar
situation we've had in uh previous
pulling applications where there's an
issue between um Diversified production
and several of the royalty owners as to
whether or not this um their their
interest is under lease so we list them
as unleas and force pool them
accordingly
um now with regard to this unit we do
have an escort requirement as I just
indicated is that right yes and what um
what percentage of the unit and what
tract is involved in
that track n consisting of
2711 per of the unit and those conflicts
are shown on our application is that
correct yes they are okay are you
requesting the board then to pull the
Unleased parties listed on exibit B3 yes
and then intervest be named the operator
for this unit yes and if um elections
are made under any order granted by the
board what would be the address use for
making any
elections intervest operating LLC
408 West Main Street Abington Virginia
24210 attention Kevin Miller vice
president lamb and that would be the
address for all Communications regarding
an order entered by this board is that
correct yes it would and um in addition
to U the land um the land aspects of
this unit are you also familiar with the
proposed depth of this well yes and what
would that
be
6,325 ft and what are the estimated
reserves for this unit
106,000
1,6 mmcf and um okay thank you and you
uh you familiar with the the uh proposed
well cost as well yes what's the
estimated draw hole costs
$453,500 an estimated completed well
cost
$973,000 to approve we have a motion to
approve do we have a second
second and those motions are to approve
the petition that's presented corre yes
any
discussion M Gilmer will you pull the
board Please Mr yes Mr Harris yes Mr
rlin I obain Mr Jansen yes Mr
Prather yes Mr Cochran yes
thank you Mr scottt that one is approved
as
presented thank you m next we have
docket item number 10 a petition from
intervest operating LLC for pooling unit
v-
53583 docket numbers VG
23-11 21-
4278 all parties interested please come
full uh Tim Scott and Larry Reeves for
intervest operating
LLC thank you you may receed Mr Scott
thank you uh Mr Rees one more time your
name by whom you're employed in your job
description Larry Reeves employed by
intervest operating as a landman and
you're familiar with this application is
that correct yes sir and is this uh unit
located in the nor Koba gas field it is
how many acres does this contain 58.7 s
now based on our um our exhibits to the
application there's a substantial uh
number of acres in this unit under lease
to intervest presently is that correct
yes there is are we going to dismiss any
parties respondant from this application
today
no and how was um I think we just have
one party responded is that correct yes
and how was he notified of this hearing
uh he was notified by certified mail
with return receipt requested we
provided the proof of the mailing to the
board is that correct we did do we have
an escro requirement for this unit no
escro and again intervest is authorized
to transact business in the Commonwealth
correct yes and we do have a blanket
Bond on file yes we do and if you're
able to reach an agreement with the
gentleman listed on exhibit B3 what
would be the terms that you would offer
for uh for lease in this area $5 an acre
per $5 per acre per year for a one8 paid
up lease that's reasonable compensation
for a lease in this area yes sir okay
what percentage of the uh the unit you
have under lease presently
97.98% and there is there is uh some
portion of that AC that intervest owns
and Fe simple correct yes okay and what
percentage of the uh unit are you
seeking to pull today uh pulling
2.04 6649 per. asking that intervest be
named the operator for this unit yes and
um if the board grants our application
today what would be the address used by
the gentleman listed on exhibit B3 he
makes an election under an order um
entered by the board intervest operating
LLC 408 West Main Street Abington
Virginia
24210 attention Kevin Miller vice
president
land and that would be the address for
all Communications yes it okay and with
regard to um the operational aspects of
this unit are you familiar with the
proposed depth of this unit yes depth is
2,300 feet what are the estimated
reserves 700 mmcf are you also familiar
with the well cost yes and what's the
estimated dry hole cost out uh dry hole
is $
27,32 and the estimated completed well
cost completed is
$63,800 and so in your opinion if the
board grants our application today it
would promote conservation prevent waste
and protect correlative rights is that
correct yes sir that's all I have from
Mr Reeves on this stock at
item thank you Mr Scott any questions
from the
board
hearing none anything further Mr Scott
that's all I have Mr
chairman the board operates on a
motion uh motion for
approval we have a motion do we have a
second second we have a motion and a
second any
discussion Miss Gilmer will you pull the
board
please yes Mr Harris yes Mr R Iain Mr
Janson yes Mr
pther yes and Mr cauan
yes that one is approved this percentage
Mr Scott thank you for all your work
chairman thank you um Happy Thanksgiving
to you
all thank you thank you same to you I
don't know if you were on earlier but
we we will not have a December
meeting I was we were present yes sir
okay thank be January the 16th is that
correct that's correct okay perfect
thank you thank
you the board will now receive an update
from the
staff BL
yourself that's
important it is I don't have to abstain
on
that thank you thank thank everyone for
their participation and hope everyone
has a great Thanksgiving Happy
Thanksgiving good safe holiday so
appreciate everybody enjoin holidays
thank you thank you we'll now review the
September 23 uh minutes that Miss Gilmer
provided and do I have a motion to
approve the minutes as
presented I'll make a motion for
approval of the minutes we have a motion
we have second all those in
favor yes yes yes thank you we stand and
journ thank you
everyone