STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Re: THE APPLICATION OF Union Oil of ) Conservation Order No. 475
California ("UNOCAL") for an order )
granting an exception to the spacing ) Swanson River Field
requirements of 20 AAC 25.055(a)(4) ) Swanson River Undefined Gas Pool
to provide for the drilling and completion ) Swanson River Unit Well 213-10
of the SRU 213-10 well in an )
undefined gas pool. ) July 17, 2002

IT APPEARING THAT:

1. UNOCAL by letter dated June 3, 2002 has requested an order allowing a spacing exception to drill and test the Swanson River Unit ("SRU") 213-10 well in accordance with 20 AAC 25.055. The proposed well will be the second well drilled to Section 10, T8N, R9W, Seward Meridian ("S.M."), and it will be closer than 3,000' to an offset well capable of gas production.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News and in the Peninsula Clarion on June 14, 2002, pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1) The surface location of this well is 1725' from the north line ("FNL") and 628' from the west line ("FWL") of Section 10, T8N, R9W, S.M. The projected bottom hole location for this well is 3018' FNL, 465' FWL, of Section 10, T8N, R9W, S.M.

2) 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 10, T8N, R9W, S.M., and it will be closer than 3,000' to offset gas production well SRU 212-10 within the same pool.

3) UNOCAL 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 SRU 213-10 well.

CONCLUSIONS:

1) An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling and completion of the SRU 213-10 well.

2) Granting a spacing exception to allow drilling and completion of the SRU 213-10 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.

NOW, THEREFORE, IT IS ORDERED:

UNOCAL's application for exception to the well spacing provision of 20 AAC 25.055(a)(4) for the purpose of drilling and completing the SRU 213-10 well is approved.

DONE at Anchorage, Alaska and dated July 17, 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