STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF UNION              )  Conservation Order No. 370
OIL COMPANY OF CALIFORNIA                )
for an order granting an exception to    )  Union Oil Company of California
spacing requirements of Title            )
20 AAC 25.055 to provide for the         )  Granite Point No. 53
drilling of the Granite Point No. 53     )
development oil well.                    )
                                            February 16, 1996
IT APPEARING THAT:

1. Union Oil Company of California (Unocal) submitted an application dated January 12, 1996 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the Granite Point State No. 53 development oil well to a producing location that is closer than 500 feet to a drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on January 19, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Unocal Granite Point State No. 53 well as proposed will be a deviated hole drilled from a surface location 2855' from the south line and 3991' from the east line of Section 13, T10N, R12W, Seward Meridian (SM) to a bottom-hole location 1177' from the north line and 408' from the west line of Section 25, T10N, R12W SM.

2 Offset owner Mobil Oil Company has been duly notified.

3. 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 Unocal Granite Point No. 53 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 for the purpose of drilling the Granite Point No. 53 well is approved as proposed.

DONE at Anchorage, Alaska and dated February 16, 1996.

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

Tuckerman A. Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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