STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF UNION                   )  Conservation Order No. 355
OIL COMPANY OF CALIFORNIA                     )
for an order granting)
an exception to spacing                       )  Union Oil Company of California
requirements of Title                         )  Granite Point State 18742 No. 52
20 AAC 25.055 to provide for                  )
the drilling of the Granite                   )
Point State 18742 No. 52                      )
development oil well.                         )
                                                 February 1, 1995
IT APPEARING THAT:

1. Union Oil Company of California (Unocal) submitted an application dated January 6, 1995 requesting exception to 20 AAC 25.055(a)(3) and Rule 2 of Conservation Order No. 76 to allow drilling the Granite Point State 18742 No. 52 development oil well to a producing location in the Granite Point Middle Kenai oil pool that is closer than 500 feet to a drilling unit boundary which delineates a change in ownership in the Granite Point Field.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on January 12, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Unocal Granite Point State 18742 No. 52 well as proposed will be a deviated hole drilled from a surface location 730' from the north line and 682' from the east line of Section 12, T10N, R12W, Seward Meridian (SM) to a bottom-hole location 1995' from the south line and 459' from the west line of Section 12, T10N, R12W SM.

2 Offset owner Mobil Oil Company has been duly notified.

3. An exception to 20 AAC 25.055(a)(3) and Rule 2 of Conservation Order No. 76 is necessary to allow drilling of this well.

CONCLUSION: Granting a spacing exception to allow drilling of the Unocal Granite Point State 18742 No. 52 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Unocal's application for exception to 20 AAC 25.055 and Rule 2 of Conservation Order No. 76 for the purpose of drilling the Granite Point State 18742 No. 52 well is approved as proposed.

DONE at Anchorage, Alaska and dated February 1, 1995.

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

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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