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

Re: THE APPLICATION OF ARCO         )        Conservation Order No. 429
ALASKA, INC. for an order granting         )
an exception to spacing requirements o   )
20 AAC 25.055(a)(3) to provide for the     )         ARCO Alaska, Inc.
drilling of the 2L-329 oil well to an              )         Greater Kuparuk Area 2L-329
undefined pool adjacent to the western     )
boundary of the Kuparuk River Unit.           )
                                                                                  May 27, 1998

IT APPEARING THAT:

ARCO Alaska, Inc. in correspondence dated April 20, 1998 requested an exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the 2L-329 oil well to a producing 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 April 25, 1998 pursuant to 20 AAC 25.540.

No protests to the application were received.

FINDINGS:

The 2L-329 oil well will be drilled as a directional hole from a surface location 233' from the north line, 923' from the east line of Section 22, T10N, R7E, Umiat Meridian (UM) to a producing location of 456' from the south line and 856' from the west line of Section 15, T10N, 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 the drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the 2L-329 oil well 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 2L-329 oil well is approved.

DONE at Anchorage, Alaska and dated May 27, 1998.

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

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

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 429
May 27, 1998

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