OIL AND GAS LEASE AND DEVELOPMENT AGREEMENT
-------------------------------------------
THIS AGREEMENT, made and entered into this 16th day of August 2000 between
Allegheny Energy, Inc., a Maryland Corporation, Monongahela Power Company, an
Ohio corporation, and West Virginia Power and Transmission Company, a West
Virginia corporation (hereinafter collectively called "Lessor"), and Energy
Corporation of America, a West Virginia Corporation (hereinafter called
"Lessee"),
W I T N E S S E T H:
- - - - - - - - - -
I.
Lessor, in consideration of Ten Dollars ($l0.00) and other good and
valuable considerations in hand paid, the receipt of which is hereby
acknowledged, of the royalties herein provided and of the agreements of Lessee
herein contained, hereby grants, leases and lets exclusively unto Lessee
(subject to each and all the other provisions here-of), for the purpose of
investigating, exploring, prospect-ing, drilling and mining for and producing,
transporting and marketing oil and gas, and for the purpose of laying
pipe-lines, building tanks, power stations, telephone lines and all other
facilities thereon necessary in conducting any of such operations on the leased
premises, those certain tracts of land situated in Tucker County, West Virginia,
more particularly described in Exhibit A attached hereto and hereby made a part
hereof for all purposes.
This lease does not cover water or minerals except water or minerals which
are produced in association with oil or gas, and there are excepted herefrom all
water (except that water injected into the leased premises by Lessee or produced
in association with the recovery of oil or gas) coal, lignite, sulphur, uranium
ores and other radioactive ores, sand, gravel, stone, fuller's earth, commercial
clays or other minerals, whether similar or dissimilar and whether or not now
known, unless produced in association with the recovery of oil or gas. Further,
this lease is subject to all presently existing and enforceable easements,
rights-of--way, leases and other grants of rights and interests affect-ing the
leased prem-ises, either of record in the Office of the Clerk of the County
Commission of Tucker County, West Virginia, or occupied on the ground, whether
or not identified in this lease, and the rights arising under said easements,
rights-of-way, leases and other grants.
For the purpose of calculating the shut in gas well payments hereinafter
provided for, the leased premises is estimated to comprise 18,520 acres, whether
it actually comprises more or less.
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II.
Subject to the other provisions hereof, this lease shall be for a term of
ten (10) years from and after the date hereof (herein called "primary term") and
as long thereafter as (a) oil or gas is produced from the leased premises, or
from acreage pooled therewith as hereinafter provided, in paying quantities or
(b) this lease is main-tained in force in any other manner hereinafter provided.
III.
The royalties to be paid by Lessee to Lessor are:
(a) On oil, nineteen percent (19%) of that produced and saved from the
leased premises, the same to be delivered free of cost at the wells to the
credit of Lessor into the pipeline or pipelines to which Lessee's wells may be
connected or, at Lessor's option, into storage provided by Lessor at its
expense; provided however that Lessee may, from time to time, purchase any
royalty oil in its possession paying the market value therefore prevailing for
the field where produced on the date of purchase and Lessee may sell any royalty
oil in its possession paying the market value reserved by Lessee for such oil
computed at the well.
(b) On gas, including casinghead gas or other gaseous substances,
produced from the leased premises and sold or used (other than for lease
operations hereunder), nineteen percent (19%) of the current price for which gas
is sold by a willing seller to a willing buyer in an arm's length transaction in
Tucker County, West Virginia, at the well at the time of delivery, free of
development and production cost; provided if the gas produced from the leased
premises is sold or delivered for processing in an absorption or extraction
plant, or other type plant or plants, whether similar or dissimilar, for the
recovery of the liquid and/or liquefiable hydrocarbons, sulphur or other
products therefrom, and if such gas is so pro-cessed, Lessor shall have and be
entitled to a royalty of nineteen percent (19%) of all plant products, and all
other hydrocarbons, sulphur and products so extracted, separated, produced and
saved from such gas (but not products subsequently manufactured therefrom), the
same to be delivered either to the credit of Lessor into the pipeline or other
carrier to which the plant or plants may be connected or into which such
products may be delivered or, at Lessor's option, at the plant or plants into
storage provided by Lessor at its expense; and, in addition thereto, Lessor
shall have and be entitled, as royalty, to nineteen percent (19%) of the current
fair market value of all residue gas sold or used (other than for lease
operations here-under) at the time of delivery, which residue gas is understood
to be the gas at the outlet side of the plant or plants after the same has been
processed for the extraction of liquid and/or liquefi-able hydrocarbons, sulphur
or other products therefrom.
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(c) Lessee agrees that all gas, including casing-head gas, produced
from the leased premises and not processed in a plant or plants as above
provided, before the same is sold or used for any purpose, shall be run through
a properly operated conventional field type separator or separators or other
comparable equip-ment at least as efficient for the purpose of separat-ing,
extracting and saving at or near the well the liquid and liquefiable
hydrocarbons recoverable from the gas by such means, unless (l) the liquid
hydrocar-bon content of such gas is so small as to make the installation and
operation of a separator or separators or other comparable equipment
unprofitable to Lessee or (2) the pressure of such gas is such that running the
same through a separator or separators or other compar-able equipment will so
reduce the pressure that Lessee will be unable to deliver the residue or
separated gas against the existing gathering system or pipeline pressures; and
on all such liquid and liquefiable hydrocarbons so separated, extracted and
saved, Lessor shall have and be entitled to a royalty of nineteen percent (19%)
of that so produced and saved, the same to be delivered either to the credit of
Lessor into the pipeline or pipelines to which the well may be connected or, at
Lessee's option, at the well into tanks provided by Lessor at its expense; and,
in addi-tion thereto, Lessor shall be paid the royalties above provided on all
such gas sold or used after the same has been run through the separator or
separators or other comparable equipment.
(d) On any substance, including water or miner-als, which is marketable
or of commercial value and which is produced from the leased premises in
associa-tion with oil or gas, nineteen percent (19%), either in kind or value at
the well, at Lessor's election, provided that Lessor shall give to Lessee
reasonable notice as to its election.
Lessee shall have the free use of gas, including casinghead gas, residue
gas or gas of any other nature or description, produced from the leased premises
for all lease operations hereunder. Lessee shall have the right to use, free of
cost, water found on the leased premises for Lessee's operations thereon. All
taxes, including ad valorem taxes, production, severance and similar taxes,
shall be borne and paid by Lessor and by Lessee on their respective interests in
the leased premises.
IV.
Subsequent to the primary term and while there is a gas well (classified as
such by any lawful governmen-tal authority having jurisdiction) on the leased
premises, or on acreage pooled therewith as hereinafter provided, capable of
producing gas in paying quantities, but gas therefrom is not being sold or used
because of lack of market or available pipeline connection therefor or because
of force majeure, subject to the provisions of Section VIII hereof, this lease
nevertheless may be maintained in force and effect as to the acreage allocable
to each such well as established by the rules of any governmental regulatory
body having jurisdiction over any such well, by Lessee paying to Lessor a
shut-in royalty equal to five dollars ($5.00) per acre, for each acre then
covered by the Lease allocable to each such well. Such payment shall be made
annually within sixty (60) days after such gas well is shut in and shall
continue annually thereafter until such well commences production. If no
applicable governmental rule or order exists which spaces the leased premises,
payment of shut-in royalties, as provided herein, shall be based upon a one
hundred and sixty (160) acre spacing, in the form of a square surrounding each
gas well.
If such payments are made or tendered, this lease shall not terminate, and
it shall be considered that gas is being produced in paying quantities during
such periods. Nothing contained in this paragraph shall operate to relieve
Lessee of its obligations diligently to seek a market for gas or from its
obligations hereunder, with respect to reasonable development for oil and gas or
with respect to protecting the leased premises from drainage.
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V.
Subject to the provisions of Sections VI and VIII hereof, Lessee at any
time or times may execute and deliver to Lessor in recordable form or place of
record in the office of the Clerk of the County Commission of Tucker County,
West Virginia (after delivering to Lessor a true copy thereof), a release or
releases covering any portion or portions of the leased premises and thereby
surrender this lease as to such portion or portions and be relieved of all
obligations as to the acreage surrendered, and thereafter any shut in royalties
payable hereunder shall be payable only on the acreage covered hereby as reduced
by said release or releases.
VI.
If at the expiration of the primary term of this lease, oil or gas is not
being produced from the leased premises and this lease is not otherwise being
maintained, but Lessee on or before that date commences the actual drilling or
reworking of a well in search of such oil or gas, then, subject to the
provisions of Section VIII hereof, this lease shall continue in force as to the
leased premises so long as such drilling or reworking operations are being
diligently prosecuted. If, as a result of any such drilling or reworking
operations, oil or gas be found and produced in paying quantities from the
leased premises or the production in paying quantities of any of same be
restored, this lease shall continue in force so long as either of them is
pro-duced in paying quantities. If oil or gas is being produced in paying
quantities from the leased premises, or from acreage pooled therewith as
hereinafter provided, at the expiration of the primary term or if such
production is obtained from the leased premises after the expiration of the
primary term hereof and such production shall for any reason cease or terminate,
Lessee shall have the right at any time within ninety (90) days from the
cessation of such production to resume actual drilling or reworking of a well in
an effort to make the leased premises again produce oil or gas in paying
quantities, in which event, this lease shall remain in force as to the leased
premises so long as such drilling or reworking operations are being diligently
prosecuted, and if they result in production of oil or gas in paying quantities,
so long thereafter as either oil or gas is produced in paying quantities.
VII.
Lessee, at its option, is hereby granted the right and power, from time to
time, subject to the limitations and upon the conditions prescribed in this
Section VII to pool or unitize, to the extent, but only to the extent, provided
in this Section VII, the prescribed portion of the leased premises as to gas,
but not as to oil, with other land, and/or other lease or leases covering land,
adjoining or contiguous to the leased premises when it is necessary or advisable
to do so in order properly to explore, or to develop and operate, the leased
premises in compliance with the rules or regulations of any lawful gov-ernmental
author-ity, federal or state, having jurisdiction, or when to do so would
promote the conservation of gas in and under, and that may be pro-duced from,
the leased premises. Anything con-tained herein to the contrary
notwithstanding, units created hereunder shall be limited to gas, shall include
the leased premises as no less than 50% of the horizontal area of each unit
unless all of the leased premises not then included in a unit or units is
included in the unit, and shall comply with the following conditions and
limitations:
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(a) no unit of more than three hundred (300) acres (plus 10% acreage
tolerance) may be created for production from subsurface depth(s), zone(s),
formation(s) or horizon(s) above the top of the Onandoga; and
(b) no unit of more than six hundred and forty (640) acres (plus 10%
acreage tolerance) may be created for production from subsurface depth(s),
zone(s), formation(s) or horizon(s) below the top of the Onandaga;
provided further that if any lawful governmental authority having jurisdiction
requires the creation of units for production of gas larger than those
prescribed in this Section VII as a condition to a maximum production allowable,
units thereafter created for production of gas pursuant to this Section VII may
conform in size to those so required by said governmental authority for a
maximum production allowable. The units formed by pooling as to any depth(s),
zone(s), formation(s) or hori-zon(s) need not conform in size or area with the
unit or units in which this lease is pooled or combined as to any other
depth(s), zone(s), formation(s) or horizon(s). The pooling in one or more
instances shall not exhaust the rights of Lessee hereunder to pool this lease
into other units conforming to the limitations and conditions pre-scribed in
this Section VII. Lessee shall file for record in the office of the Clerk of
the County Commission of Tucker County, West Virginia, an instrument describing
and designating the pooled acreage as a pooled unit. Any unit created hereunder
shall become effective upon the date the instrument designating same is filed
for record in Tucker County, West Virginia. Any unit created hereunder shall be
effective as to Lessor, its successors and assigns, irrespective of whether or
not the unit is likewise effective as to all other owners of surface, min-eral,
royalty or other interests in the lands, minerals and formations subject to such
unit. A pooled unit may include, but is not required to include, land or leases
upon which a well capable of producing gas in paying quantities has theretofore
been completed or upon which operations for the drilling of a well for gas have
theretofore been commenced. Operations for drilling on any part of the pooled
unit which includes a portion of the leased premises, regardless of whether such
operations for drilling were commenced before or after the execution of this
instrument or the instrument designating the pooled unit, shall be considered as
opera-tions for, drilling on the leased premises, and the entire acreage
constituting such unit or units, as to gas as herein provided, shall be treated
for all purposes, except the payment of royalties on production from the pooled
unit, as if the same were included in this lease within the definition of
"leased prem-ises." For the purpose of computing the royalties to which owners
of royalties and payments out of production and each of them shall be entitled
on production of gas from any pooled unit created hereunder, there shall be
allocated to the land covered by this lease and included in said unit (or to
each separate tract within the unit, if this lease covers separate tracts within
the unit) a pro rata portion of the gas produced from the pooled unit. Such
allocation shall be on an acreage basis - that is to say, there shall be
allo-cated to the acreage covered by this lease and included in the pooled unit
(or to each separate tract within the unit if this lease covers separate tracts
within the unit) that pro rata portion of the gas produced from the pooled unit
which the number of surface acres covered by this lease (or by each separate
tract) and included in the pooled unit bears to the total number of acres
included in the pooled unit. As used in this paragraph, the words "separate
tract" mean any tract with royalty ownership differing, now or hereafter, either
as to parties or amounts, from that as to any other part of the leased premises.
Royalties hereunder shall be computed on the portion of such gas production so
allocated to the land covered by this lease and included in the unit just as
though such production was from such land. Any pooled unit designated by Lessee
in accordance with the terms hereof may be dissolved by Lessee by instrument
filed for record in the office of the Clerk of the Commission of Tucker County,
West Virginia, after the completion or a dry hole or the cessation of production
from said unit.
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If any portion or portions of the leased premises are pooled or unitized
pursuant to this Section VII or pursuant to any valid and enforceable law or
regulation of any governmental body having jurisdic-tion, the portion of the
leased premises not so pooled or unitized shall for all purposes be treated as a
separate lease, and production from, or attributable to, the portion or portions
of the leased premises so pooled or unitized shall not perpetuate the portion of
the leased premises not so pooled or unitized. The portion of the leased
premises not so pooled or unitized may be maintained in force and effect by
operations on payment of shut in gas well royalty with respect to, or production
of oil or gas from wells drilled on and com-pleted under, the portion of the
leased premises not so pooled or unitized, to the extent provided by the terms
hereof.
VIII.
If at the end of the primary term hereof, oil or gas in paying quantities
has been discovered on the leased premises, or on acreage pooled therewith as
hereinabove provided, or if oil or gas in paying quantities is discov-ered on
the leased premises, or on acreage pooled therewith as hereinabove provided, so
as to continue the term of the lease, after the end of the primary term, as
provided in Section VI hereof, Lessee thereafter shall conduct diligent
operations for the drilling of successive wells on the leased premises, or on
acreage pooled therewith as hereinabove provided.
IX.
At least ten (10) days prior to commencing opera-tions for the drilling of
each and every well on the leased premises, Lessee agrees to furnish Lessor
written notice of its intent to commence such opera-tions, and within ten (10)
days after: (i) the commencement of the actual drill-ing of any well on the
leased premises; or (ii) the completion or abandonment of any well drilled on
the leased premises; Lessee agrees to furnish Lessor written notice of such
event. Lessee further agrees: (i) to furnish Lessor copies of all applications
and reports filed with any governmental authority having jurisdiction of
operations by Lessee on the leased premises and of all permits issued to Lessee
by any govern-mental authority with respect to operations on the leased
premises, within ten (10) days after such application or report is filed or such
permit is received by Lessee; and (ii) to furnish Lessor at least weekly a copy
of the drill-ing report for each well drilled on the leased prem-ises, showing
the depth to which the well has been drilled and the activities taken through
the date thereof. Lessor agrees to hold all information furnished to it under
this section confidential for one (1) year beyond the termination of this lease
or until the time such information becomes public knowledge, whichever is
earlier.
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At its sole risk, Lessor and its representatives shall have access to the
leased premises, well records and production information at all reasonable times
to inspect exploration, development and operations on the leased prem-ises, or
on acreage pooled or unitized therewith pursuant to law or regulation of a
governmental body having jurisdic-tion, including access to the derrick floor.
Samples of cores and cuttings of drilling wells shall be made available to
Lessor and its representatives at the wells. Lessee agrees to keep accurate
logs of all wells drilled by it hereunder, and Lessor shall be furnished, free
of cost and within thirty (30) days after completion of each well, with copies
of said logs, including logs of electrical surveys, if such surveys are made.
X.
Lessee agrees to indemnify and hold Lessor harmless from and against all
claims, loss and liability to third parties (including governmental authorities)
arising out of Lessee's operations hereunder.
XI.
The rights of Lessor and of Lessee may be assigned in whole or in part and the
provisions hereof shall extend to and be binding upon the respective heirs,
succes-sors, assigns and legal representatives of Lessor and Lessee; provided,
however, an assignment by a party to an assignee which is not an affiliate of
the assigning party shall not be made without the consent of the other party,
which consent shall not be unreasonably withheld or delayed; provided however
that Lessee may encumber, mortgage, pledge or assign its interest hereunder for
financing purposes without Lessor's consent. No change or division in ownership
of the leased premises or of the rentals or royalties payable here-under,
accomplished after the date of this lease, however such change or divi-sion may
be accomplished, shall operate to enlarge the obligations or diminish the rights
of Lessee, and no such change or division of such ownership shall be binding on
Lessee until thirty (30) days after Lessee shall have been furnished by
registered or certified United States Mail at Lessee's address noted herein with
a certified copy of the recorded instrument or instruments evidencing same. No
change in the ownership of the leasehold estate created hereby shall be binding
upon Lessor until Lessor shall have been furnished by registered or certified
United States Mail at Lessor's address noted herein with a certified copy of the
recorded instrument or instruments evidencing same, and Lessee shall remain
respon-sible for the undertakings and obligations of Lessee until said certified
copy of the recorded instrument or instru-ments are received by Lessor.
XII.
Lessor hereby warrants that it owns 100% of the leased premises, Lessee may
purchase or lease the rights of any party claiming any interest in the leased
premises and exercise such rights as may be obtained thereby but Lessee shall
not suffer any forfeiture nor incur any liability to Lessor by reason thereof.
Lessee, at its option and only after calling the matter to the attention of
Lessor, in order that Lessor may pay same if it desires, may discharge in whole
or in part any tax, mortgage or other lien upon the leased premises or any part
thereof, or may redeem the same form any tax sale or adjudication, and shall be
subrogated to such lien with the right to enforce same. The royalties, shut in
gas well payments and rental provided for herein are based
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upon the ownership by Lessor of the entire mineral estate in the leased
prem-ises, and if Lessor owns less than the entire mineral estate (even though
stated to be less) in all or any portion of the leased premises, such royalties,
shut in gas well payments and rentals attributable to any part of the leased
premises as to which this lease covers less than the entire mineral estate shall
be paid only in the proportion that Lessor's interest in the entire mineral
estate in the leased premises bears to the entire mineral estate therein.
XIII.
The term "force majeure" as used herein shall mean and include:
requisition, order, regulation or control by governmental authority or
commission; exercise of rights of priority or control by governmental authority
for national defense or for war purposes resulting in delay in obtaining or
inability to obtain either material, equipment or means of transportation
normally necessary in prospecting or drilling for oil or gas, or in producing,
handling or trans-porting same from the leased premises or necessary to
Les-see's operations thereon; war; acts of God; insurrection; flood; strikes;
labor disputes or other similar causes (excluding financial) which, including
those specified above, are beyond the control of Lessee.
If by reason of force majeure, as herein defined, Lessee is prevented from
or delayed in drilling, completing or producing any well or wells for oil or gas
on the leased premises, Lessee shall give written notice to Lessor, specifying
the event of force majeure on which Lessee relies as preventing or delaying the
drilling, completing or pro-ducing of such well or wells. Following Lessor's
receipt of such written notice and thereafter while Lessee is so pre-vented or
during the period of such delay, Lessee shall be relieved from all obligations,
whether express or implied, imposed on Lessee under this lease, to drill,
complete or produce such well or wells on the leased premises, and Lessee shall
not be liable in damages, and this lease shall not terminate or be subject to
cancellation for failure of Lessee to drill, complete or produce such well or
wells dur-ing the time Lessee is so prevented or delayed from perform-ing
hereunder, and the time while Lessee is so prevented or delayed shall not be
counted against Lessee, anything con-tained in this lease to the contrary
notwithstanding; pro-vided, however, that Lessee shall use reasonable diligence
to overcome, or limit the period of, such event of force majeure, and under no
circumstances shall Lessee be excused from paying or tendering any delay rental
or rentals or any other payment or payments that otherwise would be payable
hereunder.
XIV.
The primary purpose of this lease is the explora-tion and development of
the leased premises for oil and gas and the production thereof for the mutual
benefit and profit of Lessee and Lessor; and subject to all of the terms and
provisions hereof, either express or implied, Lessee shall conduct all
operations required or permitted hereunder in a good, workmanlike, prudent and
diligent manner, having in mind at all times, however, the interests of Lessor
in the leased premises as well as the interests of Lessee.
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XV.
Should the right to receive royalties, shut in gas well payments and
rentals, or any of them, under this lease, be owned in part by a party or
parties other than Lessor, such royalties and shut in gas well payments shall
be, and such rentals may be, paid or tendered, severally, to Lessor and such
other parties entitled thereto or to the credit, severally, of Lessor and such
other parties entitled thereto, all as otherwise provided herein.
XVI.
Lessor will share equally (50%) the cost of drilling the first four (4)
wells (the "Initial Wells") on the leased premises. Lessor and Lessee agree to
negotiate in good faith, promptly following the execution of this agreement and
execute an Operating Agreement substantially in the form of the 1989 Model Form
Operating Agreement. With respect to the Initial Wells, Lessor shall hold a
fifty percent (50%) working interest and shall receive the proceeds of
production attributable thereto. The royalties provided for in Section III
shall not apply to production from the Initial Wells.
If, pursuant to Section VII hereof, Lessee pools or unitizes the
leased premises with other land, and/or lease of leases covering land which is
adjoining or contiguous to the leased premises, Lessor shall share equally (50%)
in Lessee's proportionate share of the cost of drilling any well or wells on the
pooled or unitized acreage until such time as Lessor has participated in two (2)
net wells. Until such time as Lessor has participated in two (2) net wells on
acreage pooled or unitized all such wells in which Lessor has a working interest
shall be deemed to be Initial Wells and Lessor shall not be entitled to any
royalty on the production therefrom but shall be entitled to his working
interest.
XVII.
Any notice, request, consent, waiver or other communication required or
permitted to be given hereunder shall be effective only if in writing and shall
be deemed sufficiently given only if delivered in person or sent by facsimile or
by certified or registered mail, postage prepaid, return receipt requested,
addressed as follows:
If to Lessee:
--------------
Energy Corporation of America
Attn: John Mork, President and CEO
4643 South Ulster Street
Suite 1100
Denver, CO 80237
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With copies to:
----------------
Goodwin & Goodwin, LLP
Attn: Thomas R. Goodwin
1500 One Valley Square
P. O. Box 2107
Charleston, WV 25328-2107
If to Lessor:
--------------
Allegheny Energy, Inc.
Attn: Peter Dailey, Director
800 Cabin Hill Drive
Greensburg, PA 15601-1689
With copies to:
----------------
Allegheny Power
Attn: Gary A. Jack, Senior Attorney
1310 Fairmont Avenue
Fairmont, WV 26554
XVIII.
This Lease shall be governed by and construed in accordance with the laws
of the State of West Virginia.
XIX.
In the event that Lessor considers Lessee to have breached any
covenant express or implied in the Lease, Lessor shall notify Lessee in writing,
at Lessee's last known address, specifying in what respects Lessor claims Lessee
has breached the Lease. Lessee shall have sixty (60) days from the receipt of
such notice in which to cure the alleged breach. If Lessee cures the breach
within sixty (60) days of notice, it shall not be deemed in default. The giving
of such notice and the failure of Lessee to timely cure the breach shall be a
condition precedent to the filing of any legal action by Lessor. No breach by
the Lessee shall forfeit or terminate this Lease, in whole or in part, except as
expressly stated herein or as otherwise expressly provided by law.
XX.
This lease and the above-described operating agreement constitute the
entire agreement with respect to the subject mater hereof and supercede any and
all other prior understandings, contracts, agreements, representations or
warranties, oral or written, between the parties hereto with respect to the
subject matter of this Agreement.
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Pronouns, nouns and terms as used in this instrument shall include the
masculine, feminine, neuter, singular and plural forms thereof wherever
appropriate to the context.
IN WITNESS WHEREOF, this instrument is executed on the date first above written.
ALLEGHENY ENERGY, INC.
By /S/ Jay S. Pifer
--------------------------------------
MON POWER COMPANY
By /S/ Jay S. Pifer
--------------------------------------
WEST VIRGINIA POWER AND
TRANSMISSION COMPANY
By /S/ Jay S. Pifer
------------------------------------
LESSOR
ENERGY CORPORATION OF AMERICA
By /S/ Michael S. Fletcher
-----------------------------------
LESSEE
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THE STATE OF West Virginia
COUNTY OF Marion
This instrument was acknowledged before me on August 16, 2000 by
Jay S. Pifer, Senior Vice President of Allegheny Energy, Inc., a
Maryland Corporation.
Notary Public in and for
Marion County, West Virginia /S/ Twila M. West
---------------------------------
My commission expires: June 9, 2008 (SEAL)
THE STATE OF West Virginia
COUNTY OF Marion
This instrument was acknowledged before me on August 16, 2000 by
Jay S. Pifer, Senior Vice President of Monongahela Power Company, an
Ohio Corporation.
Notary Public in and for
Marion County, West Virginia /S/ Twila M. West
---------------------------------
My commission expires: June 9, 2008 (SEAL)
THE STATE OF West Virginia
COUNTY OF Marion
This instrument was acknowledged before me on August 16, 2000 by
Jay S. Pifer, Senior Vice President of West Virginia Power and Transmission
Company, a West Virginia Corporation.
Notary Public in and for
Marion County, West Virginia /S/ Twila M. West
---------------------------------
My commission expires: June 9, 2008 (SEAL)
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THE STATE OF West Virginia
COUNTY OF Kanawha
This instrument was acknowledged before me on August 16, 2000 by
Michael S. Fletcher, Chief Financial Officer, Treasurer of Energy Corporation
of America, a West Virginia Corporation.
Notary Public in and for
Kanawha County, West Virginia /S/ Kathryn S. Keene
---------------------------------
My commission expires: April 2, 2007 (SEAL)
Prepared by:
Tammy J. Owen
Goodwin & Goodwin LLP
P.O. Box 2107
Charleston, WV 25328-2107
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Exhibit A
Allegheny Power Canaan Valley Property
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LOCATION TRACT PROPERTY PRESENT OWNER FORMER OWNER DBV PG ACRES DWG NO AP DWG
NUMBER NUMBER
1* 613 D-43 WVA P&T W VA PGH RY CO 43-359
1A 613 STATE OF W VA W VA P&T
2 614 W POCAHONTAS PROP'S W M RR 46-367&156 BW-A-5138
3* 615 D-1 W VA P&T BABCOCK LUMBER & BOOM CO 47-319 BW-A-5138
4* 616 1,2 D-8, 9 W VA P&T A L HALMICK, ET AL 47-319
5* 617 W VA P&T (18 PARCELS) BW-A-5018
6* 618 1,2 D 12, 11 W VA P&T (3 PARCELS) BRANSON HARPER 46-335 39.14 BW-A-5148
7* 619-1 D-6 W VA P&T BABCOCK LUMBER & BOOM CO 43-177 13197.26 BW-A-5109 C9250001
7A* 619-2 D-10 W VA P&T RILEY HARPER 47-333 2.71 BW-A-5148 509-690
8 620 W POCAHONTAS PROP'S W M RR 4258.215 BW-A-5137 509-718
9 621 W POCAHONTAS PROP'S W M RR T2575.163 BW-A-5137 509-718
9A* 621 D-42 W VA P&T DAVIS TRUST CO 45-131 412.265 BW-A-5137 509-718
10 622 N/ VICTOR&DOC BONNER BW-A-5111 509-692
10A* 622 D-37 W VA P&T V BONNER, ET UX 45-104 71.846 BW-A-5111 509-692
10B 622 US FOREST SERVICE
11* 623 D-26 W VA P&T A L FRANCIS, ET UX 43-358 317.645 BW-A-5110 509-691
12* 624 D-67 W VA P&T E P WRIGHT, ET UX 66-499 165.789 BW-A-5126 509-707
13* 625 D-28 W VA P&T F M BILLINGSLEA, ET UX 45-89 307.029 BW-A-5126 509-707
14* 626-1 D-33 W VA P&T S M KAEMMERLING, ET VIR 47-395 478.366 BW-A-5127 509-708
15* 626-2 D-32 W VA P&T S M KAEMMERLING, ET VIR 47-395 370.851 BW-A-5125 509-706
16* 627 MONONGAHELA PWR M E HARMAN, ET VIR, ET AL 79-213 308.209 BW-A-5136 509-717
16A* 627 D-68 W VA P&T TACY CARWELL 70-465 3.987 BW-A-5136 509-717
17* 628 MONONGAHELA PWR C S HARPER, ET AL 79-414
17A* 628 D-38 W VA P&T W J TROUT BW-A-5133 509-714
17B* 628 D-38 W VA P&T W J TROUT BW-A-5133 509-714
18* 629 MONONGAHELA PWR R WILLIAMS, ET UX, ET AL 79-406 409-476
18A* 629 D-39 W VA P&T S E TURNER 45-55 BW-A-5131 509-712
18B* 629 D-39 W VA P&T S E TURNER 45-55 BW-A-5132 509-713
19* 630 D-35 W VA P&T G H JOHNSON, ET UX 45-93 231.152 BW-A-5112 509-639
20* 631 D-34 W VA P&T CHAS E JOHNSON 45-91
HANCEL MALLOW(SURF) W VA P&T
21* 632 W VA P&T(OIL, GAS) W O JOHNSON, ET UX, ET AL 47-44 ?44.084 BW-A-5113 TF551762
21A* 632 D-25 W VA P&T W O JOHNSON, ET UX, ET AL 47-44 ?105.737 BW-A-5113 509-694
22 633 MERELIN LANHAM STELLA HARMAN 80.63 BW-A-5114 509-695
22A* 633 MONONGAHELA PWR MERLIN LANHAM 71-245 1.832 BW-A-5114 509-695
23 634 HANCEL MALLOW 157.27
23A* 634 D-70 W VA P&T HANCEL MALLOW 2.221 BW-A-5114 509-695
23B8 634 D-70 W VA P&T HANCEL MALLOW 5.186 BW-A-5114 509-695
23C* 634 MONONGAHELA PWR HELEN COOK 79-27 57.457 404-893
24* 635 D-27 W VA P&T A L FRANCIS, ET UX 43-358 118.871 BW-A-5117 509-698
25* 636 D-31 W VA P&T W S COOPER, ET UX 45-102 137.5 BW-A-5118 509-699
26 637 M L COOPER W FLANNIGAN 103.142 BW-A-5119 509-700
26A* 637 MONONGAHELA PWR M L COOPER 72-1 15.95 BW-A-5119 509-700
27* 638 D-29 W VA P&T C W & ARLETTE PROPST 45-67 77.664 BW-A-5116 509-697
28* 639 D-69 W VA P&T C S TETER, ET UX 71-17 86.767 BW-A-5116 509-697
29* 640 D-36 W VA P&T BRANSON HARPER, ET UX 45-92 283.173 BW-A-5115 509-696
30* 640A MONONGAHELA PWR MARK K HEDRICK 79-244 28.692 BW-A-5115 509-696
31 641 ROSCOE BEALL BW-A-5124 509-705
31A* 641 D-40 W VA P&T G H KUYKENDALL,ET UX,ET AL 45-71 BW-A-5124 509-705
23 642 ALLEGHENY PROPS INC JASON HARMON HEAIRS BW-A-5130 509-711
33 643 A R FORD BW-A-5129 509-710
33A* 643 D-71 W VA P&T J R HARPER, ET UX,ETAL 71-185 1.83 BW-A-5129 509-710
34 644 ROSCOE BEALL A COFFMAN BW-A-5123 509-704
35 645 CARRIE HARMAN CHAS HARPER 221+ BW-A-5122 509-702
35A* 645 MONONGAHELA PWR C M HARMAN,ETVIR,ET AL 73-195 15.385 BW-A-5122 509-702
35B* 645 MONONGAHELA PWR C M HARMAN,ETVIR,ET AL 73-195 0.042 BW-A-5122 509-702
36 646 M L COOPER W VA P&T BW-A-5116 509-697
36A* 646 D-30 W VA P&T W S COOPER, ET UX 45-102 64.795 BW-A-5116 509-697
37 647 M L COOPER I C & C M BENNETT 285.614 BW-A-5120 509-701
37A* 647 MONONGAHELA PWR M L COOPER 72-1 2.236 BW-A-5120 509-701
37B* 647 MONONGAHELA PWR M L COOPER 72-1 7.055 BW-A-5120 509-701
37C* 647 MONONGAHELA PWR M L COOPER 72-1 1.217 BW-A-5120 509-701
37D* 647 MONONGAHELA PWR M L COOPER 72-1 1.942 BW-A-5120 509-701
38 648 RUTH C ALLMAN G F COOPER BW-A-5121 509-702
38A 648B MONONGAHELA PWR R C ALLMAN BW-A-5121 509-702
39 648 ELSIE L TETER, ET VIR G F COOPER BW-A-5121 509-702
39A 648A D-72 W VA P&T E L TETER,ET VIR 71-157 4.0196 BW-A-5121 GA17933B
40 W POCAHONTAS PROP'S W M RR
41 VEPCO (HERR TRACT)
42 W POCAHONTAS PROP'S W M RR
43 W POCAHONTAS PROP'S BAIRD GATZMER
<FN>
CREATED BY WPM *Monongahela Power and West Virginia Power & Transmission Company lands.
8/3/00 Non asterisked owners are not a part of this lease.
</TABLE>
Exhibit A
Map of Canaan Valley
Topographical map of Canaan Valley Property. Per legend for map, the
highlighted areas of map include: Total Oil and Gas Ownership; One-half Oil and
Gas Ownership; No Oil and Gas Ownership; Total Oil and Gas Ownership (94 acres
leased to C and A Gas Company). Parts of West Virginia State Park and
Monongahela National Forest are also shown on map.
