STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF Union Oil Company             )  Conservation Order No. 447
Company of California for an order granting         )
an exception to the spacing requirements of         )  Well 1702-15DD
20 AAC 25.055(a)(2) to provide for the drilling     )  Well 1702-14CC
of the Pioneer Unit 1702-15DD and 1702-14CC         )
exploratory gas wells to an undefined gas pool in   )  Pioneer Unit
the Matanuska Valley in Southcentral Alaska)
                                                       July 13, 1999

IT APPEARING THAT:

1. Union Oil Company of California ("Unocal") by letter dated June 3, 1999, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(2). The exception would allow drilling the Pioneer Unit 1702-15DD and 1702-14CC exploratory gas wells to bottomhole locations closer than 1500 feet to a section line.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on June 9, 1999, pursuant to 20 AAC 25.540.

3. The Commission did not receive any protests to the application.

FINDINGS:

1. The Pioneer Unit 1702-15DD well will be drilled as a vertical hole from a surface location 150' from the south line (FSL), 440' from the east line, Section 15, T17N, R2W, Seward Meridian (SM).

2. The Pioneer Unit 1702-14CC well will be drilled as a vertical hole from a surface location 720' FSL, 660' from the west line, Section 14, T17N, R2W, Seward Meridian (SM).

3. The Pioneer Unit 1702-15DD and 1702-14CC wells are within 3,000 feet of each other.

4. Offset owners Cook Inlet Region, Inc.; University of Alaska; and Alaska Mental Health Trust have been duly notified.

5. An exception to the well spacing provisions of 20 AAC 25.055(a)(2) is necessary to allow the drilling of these wells.

CONCLUSION:

1. Granting a spacing exception to allow drilling of the Pioneer Unit 1702-15DD and 1702-14CC wells will not result in waste.

2. Since the wells are within 3000 feet of each other, if both wells are determined to be capable of producing from the same pool, the Commission must establish drilling units or prescribe a spacing pattern for the pool, prior to any production from either well.

NOW, THEREFORE, IT IS ORDERED:

Unocal's application for exception to the well spacing provisions of 20 AAC 25.055(a)(2) for the purpose of drilling the Pioneer Unit 1702-15DD and 1702-14CC wells is approved.

DONE at Anchorage, Alaska and dated July 13, 1999.

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

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

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

Conservation Order Index