BEFORE THE VIRGINIA GAS AND OIL BOARD - Keyrock Energy, LLC - DOCKET NO: VGOB 25-1118-4324

VIRGINIA DEPARTMENT 

OF ENERGY: 

BEFORE THE VIRGINIA 

GAS AND OIL BOARD 

APPLICANT:  

Keyrock Energy, LLC

DIVISION OF GAS AND OIL  

 DOCKET NO: 

VGOB 25-1118-4324 

 

RELIEF SOUGHT: Creation of sealed gob drilling unit 

and Pooling 

 

LOCATION: See "Proposed Unit" 

UNIT NUMBER: 

DM 26 Powers Bridge #1 

IN DICKENSON COUNTY, 

VIRGINIA 

            
HEARING DATE:  

November 18, 2025 

PLACE: 

Virginia Dept. of Energy 

 3405 Mountain Empire Rd. 

 Big Stone Gap, VA 24219 

  TIME: 10:00 a.m. 

 

NOTICE OF HEARING 

      COMMONWEALTH OF VIRGINIA: To all persons owning or claiming an interest in oil and gas, coalbed methane gas, or other minerals and to all other persons who have or claim to have an interest in the coalbed methane underlying and within the Keyrock Energy, LLC Unit DM 26 Powers Bridge #1 and the lands described on “Exhibit A" to the Application, which is attached to this Notice, in the Contura Deep Mine 26 in Dickenson 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: 

     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. § 45.2-1600, et seq., in regard to the drilling, development, and production of coalbed methane gas from said drilling Unit DM 26 Powers Bridge #1 containing approximately 508.29 acres, for the Mined Out Lower Banner Coal Seam (hereinafter "Subject Formation"). Applicant requests that the Board issue an order providing as follows:       

    a) Creating a sealed gob drilling unit consisting of 508.29 +/- acres for the drilling, development, and production of coalbed methane gas from the sealed gob and 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 having Virginia State Plane NAD 83 South Zone grid coordinates of: N 3,589,761.20 and E 10,314,170.51; thence N 29°04'29" W 278.87 feet to a point; thence N 27°33'42" W 1154.81 feet to a point; thence N 27°35'05" W 2538.89 feet to a point; thence N 65°10'34" E 96.37 feet to a point; thence N 23°32'19" W 108.01 feet to a point; thence S 85°31'17" W 177.24 feet to a point; thence S 63°09'21" W 1458.76 feet to a point; thence N 28°49'50" W 603.32 feet to a point; thence N 27°12'22" W 1469.17 feet to a point; thence N 62°20'04" E 275.72 feet to a point; thence N 56°52'05" E 173.34 feet to a point; thence N 27°24'19" W 177.01 feet to a point; thence N 62°15'31" E 743.34 feet to a point; thence N 64°31'30" E 565.62 feet to a point; thence S 25°40'23" E 71.25 feet to a point; thence N 63°09'10" E 331.02 feet to a point; thence S 33°10'46" E 89.44 feet to a point; thence N 51°23'10" E 40.44 feet to a point; thence N 05°36'14" W 10.77 feet to a point; thence N 62°35'41" E 19.00 feet to a point; thence S 23°00'23" E 13.04 feet to a point; thence N 65°56'01" E 66.20 feet to a point; thence N 55°53'14" E 44.14 feet to a point; thence N 62°35'41" E 19.00 feet to a point; thence N 88°45'33" E 115.28 feet to a point; thence N 07°53'04" W 15.09 feet to a point; thence N 67°03'59" E 140.17 feet to a point; thence N 49°46'01" E 36.03 feet to a point; thence N 75°51'22" E 89.20 feet to a point; thence S 26°40'47" E 157.94 feet to a point; thence N 66°41'37" E 125.51 feet to a point; thence N 51°36'39" E 49.98 feet to a point; thence N 65°07'40" E 147.83 feet to a point; thence N 62°49'24" E 127.92 feet to a point; thence N 54°30'17" E 239.37 feet to a point; thence N 64°18'55" E 213.50 feet to a point; thence S 28°45'11" E 85.01 feet to a point; thence S 81°49'36" E 129.04 feet to a point; thence N 62°25'14" E 344.66 feet to a point; thence S 27°24'44" E 319.72 feet to a point; thence N 62°04'08" E 453.65 feet to a point; thence S 26°21'14" E 191.85 feet to a point; thence N 61°47'03" E 566.54 feet to a point; thence S 27°42'25" E 559.21 feet to a point; thence N 66°24'21" E 57.99 feet to a point; thence S 27°22'14" E 4043.43 feet to a point; thence S 62°45'55" W 2837.64 feet to a point; thence S 26°06'50" E 586.42 feet to a point; thence S 27°25'12" E 53.75 feet to a point; thence S 26°43'56" E 153.05 feet to a point; thence S 61°22'14" W 568.38 feet to a point; thence S 64°28'30" W 111.97 feet to a point; which is the point of  BEGINNING containing 508.29 acres, more or less. 

      b) The pooling of interests of Respondents named in Exhibit B-3 herein, and their known and unknown heirs, executors, administrators, devisees, trustees, assigns, and successors, both immediate and remote, for the drilling, development, and production of coalbed methane gas from the subject drilling unit for the Subject Formation underlying and comprised of the Subject Lands;  

     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 in “Exhibit B-3". 

    d) Designating Keyrock Energy, 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. 

   e) Making any necessary provisions for the escrow of funds pursuant to Va. Code Ann. §§ 45.1361.21 and 45.1-361.22. 

    f) Providing that the order to be entered herein shall expire two (2) years from the date of its issuance if operations have 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 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. 

   g) With respect to separately owned tracts and separately owned interests in the unit, joining all the interests within the unit for the production of coalbed methane gas so that each owner in the unit will share in all production and costs regarding the unit in the proportion that the acreage owned by each owner bears to the entire acreage in the unit. 

    h) 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   unit. Production from any well(s) drilled on, operated, or produced from any part of the   unit, no matter where located, shall for all purposes be regarded as production from each separately owned tract within the subject unit. The portion of production produced from and attributed to the unit and any separately owned tract therein, shall be deemed for all purposes to have been actually produced from such unit and tract, and development, exploration, or production operations with respect to any portion of the 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. 

    i) The Respondents listed in “Exhibit D" are lessors of the Applicant. They are joined as Respondents hereto only with regard to the creation of the sealed gob unit described in “Exhibit A". Their joinder as Respondents is necessary because the leases in question do not contemplate a unit of the size requested herein. This Application does not seek to pool leased interests in the unit on a compulsory basis, said interests are to be voluntarily pooled in the unit to be created herein. Therefore, any order entered herein need not afford leased parties, the Respondents identified at “Exhibit D", election options. 

     j) Amending all prior Board Pooling Orders entered with regard to those units located within the subject 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 L and within the Subject Drilling Unit is completed. 

     k) 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 November 18, 2025, at the offices of the Virginia Department of Energy at 3405 Mountain Empire Road, Big Stone Gap, VA 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, Virginia Department of Energy, Division of Gas and Oil, 3405 Mountain Empire Road, Big Stone Gap, Virginia 24219, or the Applicant at the address shown below. 

Dated:  October 17, 2025 

  Keyrock Energy, LLC 

By: Timothy E. Scott

Counsel for 

Keyrock Energy, LLC

135 West Main Street

Kingsport, TN 37660     

 

CERTIFICATE OF SERVICE 

     I, Timothy E. Scott, counsel for Keyrock Energy, LLC, hereby certify that I have on this 17th day of October, 2025, caused the foregoing notice and application to be served upon the parties listed herein, at their address, by certified mail, return receipt requested. 

Timothy E. Scott 

11-5-1t