STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO                    )  Conservation Order No. 354
ALASKA, INC. for an order granting            )
an exception to spacing requirements of       )  ARCO Alaska Inc.
Title 20 AAC 25.055 to provide for the        )  Alpine No. 1
drilling of the ARCO Alpine                   )
No. 1 exploratory oil well.                   )
                                                 January 18, 1995
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated December 20, 1994 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the ARCO Alpine No. 1 exploratory oil well closer than 500 feet to a drilling unit boundary.

2. Notice of hearing was published in the Chugiak-Eagle River Alaska Star on December 31, 1994 pursuant to 20 AAC 25.540.

3. No protest to the application was received.

FINDINGS:

1. The ARCO Alpine No. 1 well as proposed will be a straight hole drilled to a bottom-hole location 925' from the south line and 2285' from the west line of Section 1, T11N, R4E, Umiat Meridian.

2. Offset owners Anadarko Petroleum Corporation, Amerada Hess Corporation and Union Texas Petroleum Alaska Corporation have been duly notified.

4. An exception to 20 AAC 25.055(a)(1) is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the ARCO Alpine No. 1 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska, Inc.'s application for exception to 20 AAC 25.055 for the purpose of drilling the Alpine No. 1 well is approved as proposed.

DONE at Anchorage, Alaska and dated January 18, 1995.

David W. Johnston, Chairman
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