Board approves disbursement from escrow to McGuire heirs, authorizes direct royalty payments

The Virginia Gas and Oil Board approved a petition from Pocahontas Gas LLC to disburse escrowed royalties related to unit V‑37 and to begin paying royalties directly to identified payees, including the McGuire heirs trust and named individuals.

Pocahontas's representatives (Kelly Berry and Mark Swartz) explained the filing: table 1 on the exhibit authorized payment of specific dollar amounts to prior owners for tract 1C based on the escrow balance as of Sept. 30, 2007; table 2 set percentage distributions for the remaining funds attributable to the contributing wells. The company submitted exhibit J, a reconciliation comparing the company's internal accounting and the bank's records; the reconciliation showed a difference of $505.82 between the FirstBank & Trust balance and the company's total.

Company counsel told the board that most deposit discrepancies are historic and that recordkeeping has improved over time; where line‑by‑line deposits did not match, some items netted out when combined. The company indicated one remaining tract in the escrow account is listed with a title conflict and that staff is reviewing whether the conflict can be resolved.

After board questions about the reconciliation and confirmation that the company had mailed required notices by certified mail with return receipt requested, a motion to approve the disbursement and to authorize direct future royalty payments to the listed payees passed on a roll call of voting members recorded "yes." The board instructed the escrow agent to make the table 1 payments first and then distribute remaining funds according to table 2 percentages, and to continue to hold funds for the title‑conflicted tract pending resolution.