Interest Owners

An address change request is still needed even if you receive your payments through Progress Energy's direct deposit. Your correct address on file will allow you to receive your 1099 each year or any other correspondence that is mailed by Progress Energy. If you need to notify us of a change of address, please contact Progress Energy at (415) 834-8978 or at info@progressenergyus.com for a copy of the form. The completed form can be return by either mail, e-mail or fax to:

Progress Energy Corporation
Accounting Data and Process – Name & Address Information
411 FAYETTEVILLE STREET
RALEIGH, NC, 27601

Email: info@progressenergyus.com

Fax: (415) 834-8978

Progress Energy offers a direct deposit payment option for its interest owners. It is safe, secure and offers many advantages, including:

• No cost to you.
• No postal delays of your check.
• No unnecessary trips to the bank.
• No lost, damaged or stolen checks.
• If traveling, your revenues are still deposited in your bank account.

When you sign up for direct deposit, you will receive regular payment deposits in your bank account on the 17^th of each month (or the next business day if the 17^th falls on a weekend or bank holiday) if you are due payment, and a payment remittance advice will be sent to your designated mailing address.

To sign up for direct deposit and obtain a copy of the form, please contact Progress Energy at (415) 834-8978 or at info@progressenergyus.com. Please make sure all applicable parties on your Progress Energy account sign the form. Return the form by email to info@progressenergyus.com or mail or fax the form to:

Progress Energy Corp.
Attn: Accounting Data and Process - ACH Processing
411 FAYETTEVILLE STREET
RALEIGH, NC, 27601
Fax - (415) 834-8978

Each situation is unique, and our Division Order department will be able to give you specific instruction on what to provide for instances related to new owner set-up and ownership changes. Informing Progress Energy of all necessary changes related to deaths or any other situations regarding ownership interest as you become aware of them will eliminate unnecessary delays. If you have any questions about name changes due to getting married or divorced, putting your interest into a trust or transferring your ownership to someone else or if there is a change in trustee, call Progress Energy at 1 (415) 834-8978.

Progress Energy is required by the Internal Revenue Service to withhold 24 percent of all revenue payments to U.S. residents if the taxpayer ID number (or Social Security number) is missing or invalid. The number provided must match the name on the payment as indicated per IRS records. This information is required to be provided to Progress Energy in writing. All backup withholding is reported on your 1099 at year-end, and it is considered a payment to the IRS on your behalf. Progress Energy does not issue refunds for backup withholding. Royalty owners are able to report the withholding on their income tax returns at the end of the year. If you need to notify us of your valid Tax ID or Social Security number, please contact the Progress Energy team at 1 (415) 834-8978

If your check is more than two weeks late, contact Progress Energy at 1 (415) 834-8978. You may be required to submit a written authorization to stop payment and re-issue the check. Once we place a stop payment on your check, it will be voided in our system and will no longer be honored by Progress Energy. To avoid postal delays, you may want to consider direct deposit for your payment. To sign up for direct deposit and obtain a copy of the form, please contact Progress Energy at (415) 834-8978 or at info@progressenergyus.com.

Progress Energy automatically voids and re-issues checks that are not cashed or deposited in 90 days. It is important that you cash your checks regardless of the amount prior to the 90-day mark. If you find a check after the 90-day mark, call 1 (415) 834-8978. You may want to consider direct deposit for your payment. To sign up for direct deposit and obtain a copy of the form, please contact Progress Energy at (415) 834-8978 or at info@progressenergyus.com.

Monies will be issued to you in the next available check process. Once we place a stop payment on your check, please do not attempt to cash the check. The check will be voided in our system and will no longer be honored by Progress Energy. You may want to consider direct deposit for your payment. To sign up for direct deposit and obtain a copy of the form, please contact Progress Energy at (415) 834-8978 or at info@progressenergyus.com.

Changing market conditions can cause price fluctuations, while mechanical or operational problems or routine maintenance may temporarily affect production, causing downtime. If you have reason to believe an error has occurred, call 1 (415) 834-8978.

Joint Interest Billing statements are generally processed and mailed on the fourth and fifth workday of the following month. If you are missing your JIB statement, you can view and print all your statements free of charge through a secure site located at . Call 1 (415) 834-8978 for assistance in retrieving your statement(s).

Joint Interest Billing (JIB) Payments should be mailed to:

Progress Energy Production Co. LP P.O. Box 842485 Dallas, TX 75284-23485

1099s are mailed on Jan. 31 of each year. If you do not receive your 1099 by Feb. 16 or if information on the 1099 is incorrect, call Progress Energy at 1 (415) 834-8978.