STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF ARCO                 )  Conservation Order No. 376
ALASKA, INC. for an order granting         )
an exception to spacing requirements       )
of Title 20 AAC 25.055 to                  )  ARCO Alaska, Inc.
provide for the drilling of the Nanuk      )  Nanuk No. 1
No. 1 delineation oil well in the          )
Colville Delta Vicinity.                   )
                                              March 13, 1996

IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated February 22, 1996 requesting exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling the ARCO Nanuk No. 1, 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 25, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Nanuk No. 1 delineation oil well as proposed will be drilled as a straight hole at a location 2627' from the south line and 869' from the west line of Section 19, T11N, R5E, Umiat Meridian.

2. Offset owners Anadarko Petroleum Corporation, W.H. Hunt Trust Estate, Union Texas Petroleum Alaska Corporation, Artic Slope Regional Corporation, Kuukpik Corporation and the State of Alaska 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 Nanuk No. 1 well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, 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 Nanuk No. 1 is approved.

DONE at Anchorage, Alaska and dated March 13, 1996.

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

J. David Norton, Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index