Wallace and Donnetta Duncan, et al. - Page 10

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                    A.  Determine the reserve volumes and classifications             
          as of December 31, 1993, for the following 16 natural gas wells             
          subject to this arbitration, all of which are located in the                
          Roaring Creek/Valley District, Randolph and Barbour Counties,               
          West Virginia:                                                              
               Anderson 1          Lamb 1              Talbott 1                      
               Flanagan 1          Ricottilli 1        Talbott 2                      
               Findley 1           Ricottilli 81-22    Talbott 3                      
               Keeley 1            Simmons 1           Thacker-Luff                   
               King 1A             Tahaney-Clark       Wilson 2                       
               King 2A                                                                
                    B.  Prepare projections of production and revenue for             
          each of the subject wells using industry standard procedures,               
          considering all technical and economic data available.                      
                    C.  Prepare summary projections of future net revenue             
          and discounted future net revenue by classification for the                 
          subject reserves.                                                           
                    D.  Determine a fair-market-value for the subject wells           
          using industry accepted guidelines and methods.                             
               3.  MATERIALS USED BY THE ARBITRATOR.  The parties agree to            
          place no limitations on the materials or sources used by the                
          Arbitrator, except that the Arbitrator’s Findings should be based           
          solely on data that would have been available as of December 31,            
          1993.  While the Arbitrator is not permitted to make any findings           
          of law, it may be necessary for the Arbitrator to refer to                  
          existing applicable law, regulations and other industry                     
          information normally relied upon and used by petroleum engineers            





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