STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Re: THE APPLICATION OF Marathon Oil ) Conservation Order No. 473
Company ("Marathon") for an order )
granting an exception to the spacing ) Wolf Lake #1RD
requirements of 20 AAC 25.055(a)(4) ) Wolf Lake Field
to provide for the drilling and completion )
of the Wolf Lake #1RD well in an ) June 19, 2002
undefined gas pool. )

IT APPEARING THAT:

1. Marathon by letter dated April 26, 2002 has requested an order allowing a spacing exception to drill and test the Wolf Lake #1RD well in accordance with 20 AAC 25.055. The proposed well will be the second well drilled to Section 29, T7N, R9W, Seward Meridian ("S.M."), and it will be closer than 3,000' to an offset gas production well.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on May 9, 2002, pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1) The surface location of this well is 994' from the south line ("FSL") and 1901' from the west line ("FWL") of Section 29, T7N, R9W, S.M. The projected bottom hole location for this well is 819' FSL, 1526' FWL, of Section 29, T7N, R9W, S.M.

2) Marathon proposes to drill the Wolf Lake #1RD to test a separate, distinct fault block in the Tyonek formation.

3) An exception to the well spacing provisions of 20 AAC 25.055 (a)(4) is necessary for the drilling of this well as it will be the second well drilled to Section 29, T7N, R9W, S.M., and it will be closer than 3,000' to offset gas production well Wolf Lake #2 within the same pool.

4) Marathon sent notice of the application for spacing exception by certified mail to all offset owners, landowners, and operators of all properties within 3000' of the proposed Wolf Lake #1RD well.

5) The Division of Governmental Coordination has determined that an ACMP consistency review is not required for this project.

CONCLUSIONS:

1) An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling and completion of the Wolf Lake #1RD well in order to test a separate, distinct fault block in the Tyonek formation.

2) Granting a spacing exception to allow drilling and completion of the Wolf Lake #1RD well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.

NOW, THEREFORE, IT IS ORDERED:

Marathon's application for exception to the well spacing provision of 20 AAC 25.055(a)(4) to drill and complete the Wolf Lake #1RD well is approved.

DONE at Anchorage, Alaska and dated June 19, 2002.

Cammy Oechsli Taylor, Chair
Alaska Oil and Gas Conservation Commission

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

Conservation Order Index