Re: THE APPLICATION OF ARCO               ) Conservation Order No. 400
    ALASKA, INC. for an order granting
    an exception to spacing requirements
    of Title 20 AAC 25.055 to provide
    for the drilling of the West Niakuk
    No. 4 delineation oil well in the
    Prudhoe Bay Unit.
                                                                 August 13, 1997
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated July 21,
   1997, requesting exception to the well spacing provisions
   of Title 20 AAC 25.055 (3) to allow drilling the ARCO
   West Niakuk No. 4 delineation oil well to an undefined
   oil pool, at a producing location that is within 500 feet
   of a quarter section line and adjacent to the northwestern
   boundary of the Niakuk Oil Pool Participating Area on the
   North Slope.

2. Notice of opportunity for public hearing was published in
   the Anchorage Daily News on July 23, 1997, pursuant to
   20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The West Niakuk No. 4 delineation oil well will be drilled
   as a deviated hole with a proposed surface location 1312'
   from the south line (FSL) and 1021' from the east line (FEL)
   of Section 36, T12N, R15E, Umiat Meridian (UM) and a proposed
   producing location 403' FSL 1565' FEL of Section 15, 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. 4 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. 4 is approved.

DONE at Anchorage, Alaska and dated August 13, 1997.

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

____________________________________
Robert N. Christenson, P.E, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 400
August 13, 1997