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

Re: THE APPLICATION OF ARCO                         )     Conservation Order No. 428
ALASKA, INC. for an order granting                         )
an exception to spacing requirements of                   )
20 AAC 25.055(a)(3) to provide for the                     )     ARCO Alaska, Inc.
drilling of the Tarn 2N-341, 2N-337,                           )     Tarn 2N-341, 2N-337, 2N-339
2N-339 and 2N-345 oil wells to an                             ) 
and 2N-345undefined pool adjacent to the               )
 western boundary of the Kuparuk River Unit.           )     May 22, 1998

IT APPEARING THAT:

ARCO Alaska, Inc. in correspondence dated April 30, 1998 and May 5, 1998, requested exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the Tarn 2N-341, 2N-337, 2N-339 and 2N-345 oil wells to a bottomhole location that is closer than 500 feet from a quarter section line.

The Commission published notice of opportunity for public hearing in the Anchorage Daily News on May 6, 1998 pursuant to 20 AAC 25.540.

No protests to the application were received.

FINDINGS:

The Tarn 2N-341 oil well will be drilled as a directional hole from a surface location 130' from the north line (FNL), 1055' from the east line (FEL), Section 3, T9N, R7E, Umiat Meridian (UM) to a target location of 2506' from the south line (FSL), 624' from the west line (FWL), Section 4, T9N, R7E, UM, and a bottomhole location of 2161' FSL, 672' FEL, Section 5, T9N, R7E, UM.

The Tarn 2N-337 oil well will be drilled as a directional hole from a surface location 117' FNL, 997' FEL, Section 3, T9N, R7E, UM to a target location of 1032' FSL, 2421' FEL, Section 4, T9N, R7E, UM, and a bottomhole location of 572' FSL, 2047' FWL, Section 4, T9N, R7E, UM.

The Tarn 2N-339 oil well will be drilled as a directional hole from a surface location 123' FNL, 1026' FEL, Section 3, T9N, R7E, UM to a target location of 2258' FNL, 616' FEL, Section 4, T9N, R7E, UM, and a bottomhole location of 2462' FNL, 1144' FEL, Section 4, T9N, R7E, UM.

The Tarn 2N-345 oil well will be drilled as a directional hole from a surface location 144' FNL, 1113' FEL, Section 3, T9N, R7E, UM to a target location of 605' FNL, 118' FWL, Section 3, T9N, R7E, UM, and a bottomhole location of 635' FNL, 289' FEL, Section 4, T9N, R7E, UM.

Offset owners BP Exploration (Alaska) Inc., Chevron U.S.A. Inc., Mobil Oil Corporation, UNOCAL Alaska Resources and the State of Alaska have been duly notified.

An exception to the well spacing provisions of 20 AAC 25.055 (a)(3) is necessary to all the drilling of these wells.

CONCLUSION:

Granting a spacing exception to allow drilling of the Tarn 2N-341, 2N-337, 2N-339 and 2N-345 oil wells will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska's applications for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the Tarn 2N-341, 2N-337, 2N-339 and 2N-345 oil wells are approved.

DONE at Anchorage, Alaska and dated May 22, 1998.

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

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 428
May 22, 1998

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