Piney Woods Main Gathering Natural Gas Pipeline

The Piney Woods Main Gathering Natural Gas Pipeline will require an SF-299 application for a Special Use Permit.

The project will also include the Piney Woods Main Gathering Natural Gas Pipeline (main gathering line) that will allow for produced gas to be gathered from the proposed well pads and connected to an existing 3rd party pipeline located on private surface. The Piney Woods Main Gathering Natural Gas Pipeline is proposed to be up to 24” in diameter. The proposed main gathering line will be approximately

6.58 miles in length while approximately 3.09 miles is proposed on Forest Service managed surface. The pipeline right-of-way will be 75’ during construction reverting to 50’ post construction with a total approximate surface disturbance of 28.09 acres. Directional boring and bore boxes will be utilized to cross intermittent and perennial streams. Bore box locations will be determined following the Interdisciplinary Team Meeting. Bore boxes along the right-of-way will be approximately 50’ x 50’. The main gathering natural gas pipeline will require approximately seven (7) 200’ X 200’ riser stations along the route requiring a total surface disturbance of approximately 6.43 acres. These riser stations locations will be determined following IDT meeting. Total estimated surface disturbance for the Piney Woods Main Gathering Natural Gas Pipeline is approximately 32.12 acres. Any required electrical lines will be located within the proposed rights of way.

The southern portion of the main gathering line will commence in Abstract A-449 of the project area connecting to the Mekong and Columbia/Amazon well pads. Thence, traversing southeasterly and north on to private surface.

The westernmost portion of the proposed main gathering line will commence on Forest Service surface in abstract A-530 where a private pad and gathering line ties into the main line. Thence, the main gathering line will pick up natural gas from the Leon Falcon and Falcon Pads and continue east to tie-in to the north/south portion of the main gathering line abstract A-317 on private surface.

The easternmost portion of the proposed main gathering line will commence in abstract A-261 and with tie into the Thunderbird and Raptor Thunderbird secondary gathering lines.

The main gathering lines will then connect to the previously permitted natural gas pipeline that then connects to an existing 3rd party midstream line. The previously permitted gathering line traverses primarily to the north where it connects to an existing 3rd party midstream pipeline on private surface, north of the proposed Horst well pad.

The plats attached herein provide a mapped visualization of the entire project scope.

Well Pad Secondary Gathering Pipelines Associated with Well Pads

The well pad’s secondary gathering pipelines will be permitted under either a Mineral Operating Plan (MOP) or an Application for Permit to Drill (APD) through Bureau of Land Management (BLM).

Each proposed well pad will have a secondary gas gathering pipeline that will tie-into the proposed Piney Woods Natural Gas Main Gathering Pipeline. The secondary gas pipelines are proposed to be up to 24” in diameter. The right-of-way width is for the secondary gather pipelines is proposed to be 75’ during construction, reverting to a 50’ during operations. The total length of gathering pipelines on FS surface would be approximately 4.84 miles. The total surface disturbance of the gathering lines on FS surface would be approximately 44 acres of disturbance.

Water Lines

The use of water will be necessary to drill and complete the proposed wells. In this regard, this project includes proposed water lines and water pump locations on the Sam Rayburn Reservoir. The water lines and pump locations will be temporary in nature and will only be used for the drilling and completion of the wells. The water lines will be layflat hose. To mitigate surface disturbance, the layflat lines will be installed along exiting road rights-of-way. The pump locations will be installed and coordinated with the USACE local lake office. A plat depicting the proposed water line routes can be found herein. The blue line shows the proposed water lines routes. Four draw points are labeled in red on the waterline plat two utilize private ponds and two utilize Sam Rayburn reservoir. The two draw points on Sam Rayburn reservoir have already been permitted through USACE.

Project Justification

It is in the public interest to construct the proposed well pads and drill the proposed wells and associated gathering lines as well as the Piney Woods Natural Gas Main Gathering Pipeline to ensure the reliable delivery of domestically produced natural gas to the public. Ongoing energy supply constraints, combined with global geopolitical instability in major energy-producing regions, underscore the importance of strengthening U.S. energy infrastructure and reducing reliance on foreign sources. Federal policy direction, including Executive Order 14154 aimed at unleashing American energy, supports the development of critical infrastructure necessary to produce and move energy resources from production areas to markets. Without the proposed project, valuable natural gas would remain untapped, limiting

availability for public consumption and undermining energy security, affordability, and reliability. The project, therefore, serves a clear public purpose by facilitating safe, efficient production and transport of natural gas to meet current and future domestic demand.

In addition, the project is consistent with policy direction from Secretary Rollins through Secretarial memoranda emphasizing the importance of expanding domestic energy production, expediting permitting processes, and strengthening the nation’s energy security. These directives prioritize increased access to federal lands for oil and gas leasing and development, while reinforcing the need for responsible resource management and interagency coordination.

By aligning with these authorities, the Piney Woods Development contributes to a stable and secure domestic energy supply, supports job creation and local economies, and ensures that oil and gas resources are developed in an environmentally responsible manner. The Piney Woods Development reflects a balanced approach that integrates national energy priorities with stewardship obligations, ensuring long-term public benefit from both private and federal mineral resources.

Technical and Financial Ability:

Adamas Energy LLC is an upstream oil and gas operator that is participating in a large-scale development partnership with Black Stone Minerals (NYSE: BSM). It is comprised of the former core executive and operational team that was formerly Aethon Energy with extensive experience in operating wells and gathering lines within the Forest Service. Adamas is backed by a large private equity firm that is fully prepared to deploy the requisite funding for this project. Adamas intends to run a multi-rig development program with a capex budget in excess of $250MM over the next 5 years.

Summary of Financing, Reviews and Authorizations:

Financing

No federal financing will be required for this project. The project will be completely privately funded.

Federal Agency Coordination

The Federal Agencies that would be involved in this project are the U.S. National Forest, Angelina National Forest Office as the surface managing agency, the Bureau of Land Management as the minerals management agency, the U.S. Fish and Wildlife Service as the agency with oversight of Threatened and Endangered Species, and possibly the U.S. Army Corps of Engineers if wetlands are to be impacted. A portion of the proposed temporary waterline right-of-way will cross U.S.

Army Corps of Engineers flowage easement and would require a permit from USACE. The project would include any necessary coordination and permitting with local and state government as necessary, i.e state drilling permits, county road access and county road crossings.

National Environmental Policy Act (NEPA) Compliance

The Nile Volga well pad will require compliance with the National Environmental Policy Act (NEPA) due to all wells drilling into BLM mineral lease TXNM123558 and will require new construction of a well pad, lease road, and pipeline.

Total estimated surface disturbance for the Piney Woods Main Gathering Natural Gas Pipeline is approximately 32.12 acres. An Environmental Assessment will likely be required due to the overall disturbance acreage of the proposed main gathering pipeline on USFS surface. The total acreage of disturbance would exceed the threshold of a categorical exclusion (CATEX) of less than 20 acres.

The level of environmental review for the Environmental Assessment would be determined by Forest Service and could include resources such as noise, air quality, geology and soils; water resources including drainages, seeps, floodplains and wetlands; biological resources including plant and fauna, wildlife, threatened and endangered species, and special status species. The project has been designed to avoid the taking of the Red-cockaded woodpecker (RCW), a threatened species under the Endangered Species Act. The project area is considered RCW habitat, and there are many known RCW clusters in close proximity to the project area. A RCW absence/presence survey will be performed prior to the IDT meeting. The project has been designed to avoid the 500 year floodplain. This project does not fall within the mapped 500 year floodplain. Giant rivercane is not a resource of concern due to the project area not falling within the Sabine River Basin. All well pads have been designed to avoid streamside management zones. The pipeline will bore wetlands, intermittent and perennial streams.

National Historic Preservation Act Compliance

Cultural Resources is another important aspect of the project. A full cultural resources survey will be completed for all aspects of the project. Previously recorded site research has been performed at the The Texas State Historic Commission as well as independent research at the Angelina National Forest Office. The goal of the project is to avoid disturbance to any eligible or listed historic sites and sites of significance. Giant rivercane is not a resource of concern due to the project area not falling within the Sabine River Basin.

The authorizations and permits that may be required to complete the project include but are not limited to the following:

• Application for Permit to Drill (APD) from the BLM for each proposed well penetrating a BLM lease, well pad, access road and gathering pipeline. This would be a dual permitting process whereby the FS would review all documentation related to surface activities, and the BLM would review the drilling program and downhole operation of the wells. The required documentation to obtain this permit would be a biological evaluation, surface use plan of operations, drilling program, and cultural resources survey.