GeoMet Announces Appeal Accepted by Virginia Supreme Court in Pipeline Dispute

GeoMet, Inc. (NASDAQ:GMET) today announced that the Virginia Supreme Court has agreed to hear GeoMet’s appeal in its ongoing pipeline dispute with CNX Gas Company, LLC (“CNX”).

The issue arose when CNX claimed to hold the exclusive right to build and operate gas pipelines over property owned by Pocahontas Mining Company (“PMC” and the “PMC land”) in Buchanan County, Virginia, even though PMC granted an easement to GeoMet to construct its Pond Creek gathering line.

On May 26, 2006, in an attempt to resolve the dispute, GeoMet sought a declaratory judgment in the Circuit Court of Buchanan County, that the easement granted to GeoMet by PMC was valid. Three weeks later, on June 15, 2006, the Circuit Court enjoined CNX from obstructing GeoMet’s construction of its gathering line on the PMC land.

On May 23, 2007, the Circuit Court reversed its position and ruled that CNX had the exclusive right to transport gas over the PMC land. It granted CNX injunctive relief by holding that GeoMet would be allowed to continue using its Pond Creek gathering line only if GeoMet escrowed net proceeds from the sale of gas transported through the Pond Creek gathering line and posted a bond in CNX’s favor.

On June 20, 2007, the Supreme Court of Virginia overturned the injunctive portion of this ruling, which allowed GeoMet to continue using its Pond Creek gathering line without escrowing funds or posting a bond.

The decision by the Virginia Supreme Court to hear GeoMet’s appeal of the remaining portion of the lower court’s order that CNX holds the exclusive right to transport gas over the PMC land also denied all motions filed by CNX in the proceedings. At the same time, the Supreme Court accepted the appeal filed by the landowner, PMC, who also contested the lower court’s ruling on the exclusive right. The Supreme Court agreed to consider on appeal all points of error that GeoMet and PMC raised in their petitions for appeal.

GeoMet continues to transport the gas it produces from the Pond Creek field through its Pond Creek gathering line.

About GeoMet, Inc.

GeoMet, Inc. is an independent energy company engaged primarily in the exploration for and development and production of natural gas from coal seams (“coalbed methane” or “CBM”). Our principal operations and producing properties are located in the Cahaba Basin in Alabama and the Central Appalachian Basin in West Virginia and Virginia. We also control additional coalbed methane and oil and gas development rights, principally in Alabama, British Columbia, Colorado, Louisiana, Virginia, and West Virginia.

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