STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO                 )  Conservation Order No. 372
ALASKA, INC. for an order                  )
granting an exception to                   )
spacing requirements of                    )  ARCO Alaska, Inc.
Title 20 AAC 25.055 to                     )  Bergschrund 2A
provide for the drilling                   )
of the Bergschrund No. 2A                  )
delineation oil well in                    )
the Colville Delta Vicinity.               )
                                              February 21, 1996
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated February 2, 1996 requesting exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling the ARCO Bergschrund No. 2A, delineation oil well to a location which is within 500 feet of a quarter section line in the Colville Delta vicinity of the North Slope.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on February 6, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Bergschrund No. 2A delineation oil well as proposed will be drilled as a deviated hole with a surface location 964' from the north line and 1370' from the west line of Section 9, T11N, R5E, Umiat Meridian (UM) and a bottom-hole location 655' from the south line and 88' from the east line of Section 5, T11N, R5E, UM.

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 Bergschrund No. 2A well will not result in waste nor jeopardize correlative rights.

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 Bergschrund No. 2A is approved.

DONE at Anchorage, Alaska and dated February 21, 1996.

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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