STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO                     )  Conservation Order No. 331
ALASKA, INC. for an order granting             )
an exception to spacing requirements of        )  ARCO Alaska Inc.
Title 20 AAC 25.055 to provide for the         )  Bergschrund No. 1. 
drilling of the ARCO Bergschrund               )	
No. 1 exploratory oil well.                    )
                                                  March 14, 1994
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated February 22, 1994 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the ARCO Bergschrund No. 1 exploratory oil well closer than 500 feet to a drilling unit boundary.

2. Notice of hearing was published in the Anchorage Daily News on February 24, 1994 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The ARCO Bergschrund No. 1 well as proposed will be a straight hole drilled to a bottom-hole location 2200' from the north line and 1600' from the east line of Section 32, T12N, R5E, Umiat Meridian.

2. Offset owners Chevron U.S.A. Production Company and Union Texas Petroleum Alaska Corporation have been duly notified.

3. An exception to 20 AAC 25.055(a)(1) is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the ARCO Bergschrund No. 1 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska, Inc.'s application for exception to 20 AAC 25.055 for the purpose of drilling the Bergschrund No. 1 well is approved as proposed.

DONE at Anchorage, Alaska and dated March 14, 1994.

David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index