STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192


Re:THE APPLICATION OF               ) Conservation Order No. 395
PHILLIPS PETROLEUM CO.
for an order granting an exception
to spacing requirements of
Title 20 AAC 25.055 to provide for
the drilling of the North Cook Inlet
Unit NCIU-B Well No. 1 oil well.
                                                        July 14, 1997
IT APPEARING THAT:

1.Phillips Petroleum Company (Phillips) submitted an application
  dated June 16, 1997 requesting an exception to 20 AAC 25.055(a)(3)
  to allow drilling the North Cook Inlet Unit NCIU-B No. 1 oil well
  closer than 500 feet to a drilling unit boundary in an undefined pool.

2.Notice of hearing was published in the Anchorage Daily News on
  October 17, 1992 pursuant to 20 AAC 25.540 and the Anchorage Daily
  News on June 25, 1997.

3.No protests to the application were received.

FINDINGS:

1.As proposed, the Phillips North Cook Inlet Unit NCIU-B No. 1 oil
  well will be drilled from a surface location 1250 feet from the
  north line and 980 feet from the west line of Section 6, T11N, R9W,
  Seward Meridian (SM), to a proposed producing interval 2178 feet
  from the south line (FSL) and 2086 feet from the east line (FEL)
  of Section  7, T11N, R9W, SM and a proposed bottom hole location
  1310 feet FSL and 1860 feet FEL of Section  7, T11N, R9W, SM.

2.Offset owner ARCO Alaska, Inc. has been duly notified.

3.An exception to 20 AAC 25.055(a)(3) is necessary to allow drilling
of the well to the proposed location.

CONCLUSION:

Granting a spacing exception to allow drilling of the Phillips North
Cook Inlet Unit NCIU-B No. 1 oil well, as proposed, will not result
in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Phillips Petroleum Company's application for an exception to
20 AAC 25.055 for the purpose of drilling the Phillips North
Cook Inlet Unit NCIU-B No. 1 oil well is approved as proposed.

DONE at Anchorage, Alaska and dated July 14, 1997.


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

______________________________________________
Robert N. Christenson, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 395
July 14, 1997

Conservation Order Index