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Board approves Diversified operator transfer subject to affidavit; continues reconsiderations and addresses subpoenas
Summary
The board conditionally approved Diversified Production’s transfer of operator rights pending a due‑diligence affidavit, continued multiple reconsideration petitions to December/January, and quashed or limited requested subpoenas after procedural objections under 2.2‑4022.
At its Nov. 18 hearing the Virginia Gas and Oil Board granted a transfer of operator rights from Summit Appalachia LLC to Diversified Production (docket BGOB25‑0819‑4319) but conditioned final approval on receipt of an affidavit of due diligence documenting certified mailing and other notice steps.
Craig Blackburn, director of land for Diversified Energy Capital, told the board the company mailed certified notices to mineral interest holders, published the notice in the Bluefield Daily Telegraph and compared current owner lists to exhibit B to determine recipients. Blackburn acknowledged some certified mail pieces were returned as nondeliverable and said Diversified uses multiple addresses when uncertain and typically issues direct deposits to many revenue owners.
"We identified the mineral interest holders and sent certified notices to them," Blackburn said, describing publication and a supplemental owners list provided to the board.
Opposing counsel pressed Diversified on numerous returned green cards and the lack of a filed affidavit of due diligence. Board staff and members said the affidavit is required for the record and proposed making approval contingent on its submission. The board moved, seconded and polled members; the chair announced approval of the transfer "subject to" Diversified submitting the affidavit of due diligence.
Separately, Buchanan Energy and other petitioners filed a petition for reconsideration of prior board decisions. Counsel debated whether reconsideration could proceed before orders were formally recorded and how appeal periods should be calculated (decision mailing versus recorded order delivery). The board accepted advice from its attorneys and the attorney‑general’s office that reconsideration is permitted but that timing and appeal issues are complex. The board voted to continue motions for reconsideration by Buchanan and Diversified to the December hearing so parties can review recorded orders and prepare argument.
Diversified had also sought subpoenas and certain material production. Opposing counsel argued the subpoena requests were overbroad and amounted to prohibited discovery under state administrative rule 2.2‑4022. The attorney‑general’s office reviewed the statute on relevance and remedies and the board acted on a motion relating to those subpoena requests; counsel noted exceptions on the record and the board took procedural action consistent with the legal analysis presented.
Finally, after discussion of docket timing the board moved and approved continuances of several docket items (7, 8, 9, 11 and 12) to the January meeting. The board approved October meeting minutes and adjourned.
What’s next: Diversified must file the affidavit of due diligence for the board to complete its record; parties pursuing appeals or reconsideration were directed to monitor order delivery and calendar their filings accordingly.
