STATE OF ALASKA
 ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192
Re:THE APPLICATION OF PHILLIPS PETROLEUM )         Conservation Order No. 420
COMPANY(PHILLIPS) for an order granting               )
an exception to spacing requirements                        )         Phillips Petroleum Company
of Title 20 AAC 25.055 to provide                               )         North Cook Inlet Unit B No. 3
for the drilling of the North Cook Inlet                          )
Unit B No. 3 development oil well.                              )

                                                                                        April 24, 1998
IT APPEARING THAT:

1.Phillips submitted an application dated April 7, 1998, requesting exception to 20 AAC 25.055(a)(3) to allow drilling the North Cook Inlet Unit B No. 3 development oil well to a location in an undefined pool that is closer than 500 feet to a quarter section line.

2.Notice of opportunity for public hearing was published in the Anchorage Daily News on April 9, 1998, pursuant to 20 AAC 25.540.

3.No protests to the application were received.

FINDINGS:

1. The North Cook Inlet Unit B No. 3 well as proposed will be a deviated hole drilled from a surface location 4029' from the south line (FSL) and 4056' from the east line (FEL) of Section 6, T11N, R09W, Seward Meridian (SM) to a proposed producing location 4780' FSL and 3000' FEL of Section 13, T11N, R10W, SM.

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

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

CONCLUSION:

Granting a spacing exception to allow drilling of the Phillips North Cook Inlet Unit B No. 3 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Phillips Petroleum Company's application for exception to 20 AAC 25.055 for the purpose of drilling the North Cook Inlet Unit B No. 3 well is approved as proposed.

DONE at Anchorage, Alaska and dated April 24, 1998.
__________________________________________
David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission
__________________________________________
Cammy Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 420
April 24, 1998

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