STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF ARCO                  )  Conservation Order No. 361
ALASKA, INC. for an order granting          )
an exception to spacing requirements of     )  ARCO Alaska Inc.
Title 20 AAC 25.055 to provide for the      )  Tabasco No. 1. 
drilling of the ARCO Tabasco No. 1          )
development oil well.                       )

                                               August 16, 1995

IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated July 25, 1995 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the ARCO Tabasco No 1 development oil well to an undefined oil pool in the Kuparuk River Unit to a producing location which is closer than 500 feet to a drilling unit boundary.

2. Notice of hearing was published in the Anchorage Daily News on July 29, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The ARCO Tabasco No. 1 well as proposed will be drilled as a deviated hole with a surface location of 240' from the south line and 556' from the west line of Section 1, T11N, R8E, Umiat Meridian (UM) and a bottomhole location of 90' from the north line and 893' from the east line of section 11, T11N, R8E, UM.

2. Offset owners BP Exploration (Alaska) Inc., Chevron U.S.A. Inc., Exxon Company U.S.A., Mobil Oil Corporation and Union Oil Company of California have been duly notified.

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

CONCLUSION:

Granting a spacing exception to allow drilling of the ARCO Tabasco 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 Tabasco No. 1 well is approved as proposed.

DONE at Anchorage, Alaska and dated August 16, 1995.

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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