STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF ARCO                 )  Conservation Order No. 381
ALASKA, INC. for an order granting         )
an exception to spacing requirements       )
of Title 20 AAC 25.055 to                  )  ARCO Alaska, Inc.
provide for the drilling of the            )  West Niakuk No. 2
West Niakuk No. 2 delineation oil          )
well in the Prudhoe Bay Unit.              )
                                              June 4, 1996
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated May 16, 1996 requesting exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling the ARCO West Niakuk No. 2 delineation oil well to an undefined oil pool, with a producing location within 500 feet of a quarter section line, adjacent to the Niakuk Participating Area on the North Slope.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on April 18, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The West Niakuk No. 2 delineation oil well will be drilled as a deviated hole with a surface location 1258' from the south line (FSL) and 1112' from the east line (FEL) of Section 36, T12N, R15E, Umiat Meridian (UM) and a proposed producing location 2519' FSL and 2909' FEL of section 22, T12N, R15E, UM.

2. Offset owners BP Exploration (Alaska) Inc., Exxon 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 West Niakuk No. 2 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 West Niakuk No. 2 is approved.

DONE at Anchorage, Alaska and dated June 4, 1996.

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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