STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage, Alaska 99501

Re: THE APPLICATION OF Unocal Alaska, ) Conservation Order No. 467
("Unocal") for an order granting )
an exception to the spacing requirements of ) Griner #1
Regulation 20 AAC 25.055 (a)(2) to provide ) Exploratory Well
for the drilling and testing of the Griner #1 )
exploratory well to a bottom hole ) March 22, 2002
location that is closer than 1500 feet to a )
property line. )

IT APPEARING THAT:

1. Unocal Alaska ("Unocal") by letter dated February 4, 2002, and received by the Commission on February 5, 2002, has requested an order allowing a spacing exception in accordance with 20 AAC 25.055 for the proposed Griner #1 exploratory well. The locations of prospective test intervals within this well may fall within 1500 feet of a property line.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on February 8, 2002, pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1) The surface location of the well is 2186' FSL, 1786' FWL, Section 3, T5S, R15W, S.M. The projected bottom hole location for this vertical well is also 2186' FSL, 1786' FWL, Section 3, T5S, R15W, S.M.

2) An exception to the well spacing provisions of 20 AAC 25.055 (a)(2) is necessary for the drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the Griner #1 exploratory well promotes efficient exploration and development, and will not result in waste nor jeopardize correlative rights.

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 and testing the Griner #1 well is approved.

The Griner #1 well may not be placed on regular production until the Commission takes additional action, upon petition, and after notice and hearing, to offset any advantage Unocal may have over other owners by reason of drilling Griner #1 to the exception location and to allow affected owners to produce their just and equitable share of hydrocarbons.

DONE at Anchorage, Alaska and dated March 22, 2002.

Cammy Oechsli Taylor, Chair
Alaska Oil and Gas Conservation Commission

Daniel T. Seamount, Jr., Commissioner
Alaska Oil and Gas Conservation Commission

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