Gas and Oil Board approves Keyrock Energy unitization, names Keyrock operator
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Summary
The Virginia Gas and Oil Board approved Keyrock Energy’s petition to create a 508.29‑acre pooled unit, named Keyrock the operator and accepted technical and financial estimates; board members probed notice, lease percentages and carbon‑credit procedures.
The Virginia Gas and Oil Board on Nov. 18 approved a petition from Keyrock Energy LLC to create a pooled (forced‑pooling) unit covering roughly 508.29 acres and named Keyrock the unit operator.
Aaron Davis, a senior engineer at Keyrock Energy, testified the company holds about 96.25% of the unit under lease and is seeking to pool the remaining 3.75% of interests. He said the proposed well would be about 449 feet deep, with estimated reserves of "650 CF" and an estimated completed well cost of $469,576.
Davis described the project as a methane‑destruction effort in active and abandoned mine voids. "We extract methane from mine voids ... we destroy that methane on‑site through incineration and closed flare," he told the board, adding Keyrock measures destruction and converts it to carbon‑credit offsets that go through a multi‑stage verification process. He said verification can take "6 to 11 months" through the California Air Resources Board before offsets are monetized and revenues shared pro rata with gas owners.
Board members asked for clarifications about notice and mapping. Davis confirmed respondents were notified by certified mail (return‑receipt requested) and by publication (Dickinson Star on 11/05/2025), and he agreed to provide a map showing the proposed well location within the unit. He also confirmed Keyrock has an operator bond on file with the department and that no escrow was required.
After board questions, a motion to approve the petition was moved and seconded. The board polled members and the chair announced approval of the petition and appointment of Keyrock as operator.
The board did not record any conditions on the order beyond routine mapping and notice clarifications requested during the hearing. The board directed Keyrock to supply the clarified map and accepted the technical and financial disclosures presented at the hearing.
What’s next: the board’s written order will be issued following the meeting; interested parties may review the order once recorded and pursue any administrative steps available under law.
