STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO                      )  Conservation Order No. 357
ALASKA, INC. for an order granting              )
an exception to spacing requirements of         )  ARCO Alaska Inc.
Title 20 AAC 25.055 to provide for the          )  Bufflehead No. 1. 
drilling of the ARCO Bufflehead No. 1           )
exploratory oil well.                           )
                                                   May 11, 1995
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated April 17, 1995 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the ARCO Bufflehead No 1 exploratory oil well closer than 500 feet to a drilling unit boundary.

2. Notice of hearing was published in the Anchorage Daily News on April 22, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The ARCO Bufflehead No. 1 well as proposed will be a straight hole drilled to a bottom-hole location 2337' from the south line and 1319' from the east line of Section 3, T8N, R9W, Seward Meridian.

2. Offset owners CIRI Production Company and Union Oil Company of California 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 Bufflehead 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 Bufflehead No. 1 well is approved as proposed.

DONE at Anchorage, Alaska and dated May 11, 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

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