After reviewing numerous threads and implementing all of the recommended configurations, I was still unable to get xsane to locate a Epson network scanner. I then tried to launch sane from the command line and xsane successfully launched:
xsane epson2:net:192.168.1.10
I changed the shortcut command for xsane to the same and sane now successfully launches and locates the network printer. For some reason, sane does not seem to recognize the setting in net.conf.
Also, the same works for simple-scan:
simple-scan epson2:net:192.168.1.10