Assets of Natural Gas Storage Services Business

Auction Sale of assets of Chowder Gas Storage Facility, LLC (“Chowder”) and Lake Shore Gas Storage, Inc. (“Lake Shore” and together with Chowder, the “Sellers”). The sale assets described as below:

• Chowder Assets: The Chowder assets are interests in approximately 142 mineral rights leases (the “Leases”)2 comprising in excess of 7,000 acres in Columbiana and Mahoning Counties. Chowder holds a 60% interest in the Leases and The Blair Group3 holds the remaining 40% interest. The Trustee is selling Chowder’s 60% interest in the Leases. The rights under the Leases consist of both shallow (generally within the Bedford, Ohio, and Olentangy Shale formations) and deep rights (below the Oriskany formation including the Utica Shale formation). Of such acres, Chesapeake Energy Corporation (“Chesapeake”), who purchased the deep rights in 2010, conducted substantial due diligence and validated deep rights in no less than 4,060 acres. The deep rights reverted back to Chowder in June of 2018;
• The Lake Shore Assets: The Lake Shore Assets (the “Lake Shore Assets” and collectively with the Leases, the “Assets”) are comprised of (i) rights under the Leases to a gas storage field located in the Oriskany Sandstone formation (the “Oriskany”), (ii) 18 gas storage wells and storage pipeline with 892 MMcf base gas and 2.3 Bcf working gas capacity in the Oriskany, and (iii) a compressor station, building and related equipment.