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Board approves Pocahontas Gas LLC application to create sealed gob unit covering 298.43 acres
Summary
The board approved Pocahontas Gas LLC’s petition to create a sealed gob (sealed gob unit) drawn from Vent Shaft Unit 18 covering 298.43 acres; the company proposed 12.5% royalty and a $5-per-acre paid-up, 10-year lease for deemed leased interests.
The Virginia Gas and Oil Board on April 15 voted to approve Pocahontas Gas LLC’s petition to create a sealed gob unit from the first panel of Vent Shaft Unit 18, identifying the new sealed unit at 298.43 acres.
Pocahontas representative Kelly Berry testified the company had mailed certified petitions to all owners within the proposed sealed unit, published notice in the Bluefield Daily Telegraph and submitted proof of publication and mailing to the division. Exhibits to the petition included plats showing the proposed unit boundary, maps superimposing mining panels, lists of leased and unleased owners, and cost exhibits used to allocate allowable costs by affected 80-acre tracts.
The applicant provided an estimate of per-well and per-panel costs and said it had considered seal costs in its allocation. For interests deemed to be leased by the board, the applicant proposed compensation of a 12.5% royalty and a paid-up lease of $5 per acre per year for 10 years.
Board members polled in favor of approval by roll call. The board’s order will establish the sealed gob unit boundaries, allocated costs, and payment procedures as set out in the applicant’s proposed order and exhibits.
The board record shows the division will use the applicant’s submitted maps and cost allocations as the basis for the final order and future payment plans for owners and claimants within the sealed gob area.
