STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF ARCO          )  Conservation Order No. 380
ALASKA, INC. for an order           )
granting an exception to            )
spacing requirements of             )  ARCO Alaska, Inc.
Title 20 AAC 25.055 to              )  Temptation No. 1A
provide for the drilling            )
of the Temptation No. 1A            )
delineation oil well in             )
the Colville Delta Vicinity.        )
                                       April 23, 1996
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated April 4, 1996 requesting exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling the ARCO Temptation No. 1A, delineation oil well to a location which is 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 April 6, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Temptation No. 1A delineation oil well will be drilled as a deviated hole with a surface location 1891' from the south line and 539' from the west line of Section 16, T12N, R4E, Umiat Meridian (UM) and a proposed bottomhole location 110' from the north line and 2871' from the west line of Section 16, T12N, R4E, UM.

2. Offset owners Anadarko Petroleum 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 Temptation No. 1A well will not result in waste nor jeopardize correlative rights.

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 Temptation No. 1A is approved.

DONE at Anchorage, Alaska and dated April 23, 1996.

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

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

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