STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive
Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO                )  Conservation Order No. 368
ALASKA, INC. for an order granting        )
an exception to spacing requirements of   )
Title 20 AAC 25.055 to provide for        )  ARCO Alaska, Inc.
the drilling of the Nuiqsut No. 1         )  Nuiqsut No. 1 
delineation oil well in the Colville      )
Delta.                                    )
                                             January 8, 1996
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated December 14, 1995 requesting exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling the ARCO Nuiqsut No. 1 delineation oil well to a location within 500 feet of a quarter section boundary in the Colville Delta on the North Slope.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on December 21, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Nuiqsut No. 1 delineation oil well as proposed will be drilled as a straight hole at a location 2505' from the north line and 2545' from the west line of Section 8, T11N, R4E, Umiat Meridian.

2. Offset owners Anadarko Petroleum Corporation, Union Texas Petroleum Alaska Corporation, Artic Slope Regional Corporation, Kuukpik Corporation, State of Alaska and the Bureau of Land Management have been duly notified.

3. An exception to the well spacing provisions of Title 20 AAC 25.055 (3) is necessary to allow the drilling of this well.

CONCLUSION:

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

NOW, THEREFOE, IT IS ORDERED:

ARCO Alaska, Inc.'s application for exception to the well spacing provisions of Title 20 AAC 25.055 (3) for the purpose of drilling the Arco Nuiqsut No. 1 is approved.

DONE at Anchorage, Alaska and dated January 8, 1996.

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index