STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF ARCO                   )  Conservation Order No. 373
ALASKA, INC. for an order granting           )
granting an exception to spacing)
requirements of Title 20 AAC 25.055 to       )  ARCO Alaska, Inc.
provide for the drilling of the Neve No. 1A  )  Neve 1A
delineation oil well in the Colville Delta   )
Vicinity.                                    )
                                                February 26, 1996
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated February 5, 1996 requesting exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling the ARCO Neve No. 1A, delineation oil well to a location within 500 feet of a quarter section line in the Colville Delta vicinity of the North Slope.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on February 9, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Neve No. 1A delineation oil well as proposed will be drilled as a deviated hole with a surface location 465' from the north line and 2440' from the west line of Section 14, T11N, R4E, Umiat Meridian (UM) and a bottom-hole location 1358' from the south line and 205' from the east line of Section 15, T11N, R4E, UM.

2. Offset owners Anadarko Petroleum Corporation, Amerada Hess Corporation, Union Texas Petroleum Alaska Corporation, Artic Slope Regional Corporation, Kuukpik Corporation and the State of Alaska have been duly notified.

3. An exception to the well spacing provisions of Title 20 AAC 25.055 (3) is necessary to allow the drilling of this well.

CONCLUSION:

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

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska, Inc.'s application for exception to the well spacing provisions of Title 20 AAC 25.055 (3) for the purpose of drilling the Arco Neve No. 1A is approved.

DONE at Anchorage, Alaska and dated February 26, 1996.

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

J. David Norton, P.E., Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index