STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF STEWART               )  Conservation Order No. 359
PETROLEUM COMPANY for an order              )
granting an exception to the spacing        )  Stewart Petroleum Company
requirements of Title 20 AAC 25.055         )  West McArthur River Unit No. 1A
for the Stewart West McArthur River Unit    )
No. 1A development oil well.                )
                                               August 14, 1995

IT APPEARING THAT:

1. Stewart Petroleum Company submitted an application dated July 10, 1995 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the West McArthur River Unit No. 1A development oil well as the second well within a drilling unit to produce oil from the West McArthur River Oil Pool.

2. Notice of an opportunity of public hearing was published in the Anchorage Daily News on July 14, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. Stewart Petroleum's West McArthur River Unit No. 1A well as proposed will be a deviated hole drilled from a surface location 2871' from the south line and 1351' from the west line of Section 16, T8N, R14W, Seward Meridian (SM) to a bottom-hole location 1793' from the north line and 1710' from the east line of Section 10, T8N, R14W, SM.

2. Offset owner Union Oil Company of California has been duly notified.

3. An exception to 20 AAC 25.055(a)(3) is necessary to bring this well into compliance with statewide rules governing well spacing and drilling units.

CONCLUSION:

Granting a spacing exception for the West McArthur River Unit No. 1A development oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Stewart Petroleum Company's application for exception to 20 AAC 25.055 for the West McArthur River Unit No. 1A well is approved as proposed.

DONE at Anchorage, Alaska and dated August 14, 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