STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF UNION                )  Conservation Order No. 344
OIL COMPANY OF CALIFORNIA                  )
for an order granting an                   )
exception to spacing                       )  Union Oil Company of California
requirements of Title 20 AAC               )  Trading Bay Unit M-32
25.055 to provide for the                  )
drilling of the Trading Bay                )
Unit M-32 development oil well             )
                                              November 21, 1994
IT APPEARING THAT:

1. Union Oil Company of California (Unocal) submitted an application dated October 17, 1994 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the Trading Bay Unit M-32 development oil well to a producing location in an undefined oil pool that is closer than 500 feet to a drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on October 21, 1994 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Unocal Trading Bay Unit M-32 well as proposed will be a deviated hole drilled from a surface location 969' from the north line and 527' from the west line of Section 33, T9N, R13W, Seward Meridian (SM) to a bottom-hole location 576' from the south line and 1107' from the east line of Section 21, T9N, R13W SM.

2 Offset owner Marathon Oil Company has been duly notified.

3. An exception to 20 AAC 25.055(a)(3) is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the Unocal Trading Bay Unit M-32 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Unocal's application for exception to 20 AAC 25.055 for the purpose of drilling the Trading Bay Unit M-32 well is approved as proposed.

DONE at Anchorage, Alaska and dated November 21, 1994.

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

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index