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Virginia Gas and Oil Board renews First Bank & Trust escrow contract and approves Keyrock Energy unit
Summary
The Virginia Gas and Oil Board voted Dec. 16 to renew First Bank & Trust as the board escrow agent for 2026 and approved Keyrock Energy's petition to create a sealed gob/forced-pooling unit; the Keyrock order was approved subject to a corrected contact address and included a 12.5% royalty offer to unleased parties.
The Virginia Gas and Oil Board on Dec. 16 voted to renew First Bank & Trust as the board's escrow agent for calendar year 2026 and approved Keyrock Energy LLC's application to create a sealed gob forced‑pooling unit covering 423.66 acres.
Chair Gus Stanson said the board had received the contract materials and that First Bank & Trust had “done an exemplary job of handling their escrow account.” A motion to renew the escrow contract carried on a roll call vote.
Keyrock representatives Jim Scott and Aaron Davis testified under oath about the unit application (docket BGOB25-1118-4325). Aaron Davis described notice procedures, bonding, operator designation and the proposed payment terms. “It would be 12 and a half percent royalty,” Davis said when asked to identify terms that would be offered to unleased parties. He testified the proposed completed well cost is $492,796 and gave a proposed well depth of 475 feet and estimated reserves of 700 (unit not specified in the record).
Board members asked for one administrative correction: the address for election notices listed in Keyrock's proposed order. Counsel agreed to correct and resubmit the order before entry. The board approved the application with that condition.
Why it matters: The escrow‑agent renewal keeps the board's financial administration unchanged for the coming year. The Keyrock order establishes a forced‑pooling configuration that will permit the operator to offer participation or impose an implied lease under state pooling authority; unleased mineral owners will be offered the royalty percentage recorded in the application.
Next steps: Keyrock will provide the corrected contact information for the order; once the clerical correction is made the board's order will be entered and parties may make election decisions or seek judicial review as allowed by law.
