STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage, Alaska 99501-3192

Re:THE APPLICATION OF ARCO                   )  Conservation Order No. 377
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              )  Bergschrund No 2A
Bergschrund No. 2A 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 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 27, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Bergschrund No. 2A delineation oil well 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 proposed bottomhole location 104' from the south line and 3242' from the west line of section 3, T11N, R5E, UM.

2. Offset owners Anadarko Petroleum Corporation, Union Texas Petroleum Alaska Corporation, Artic Slope Regional Corporation, Kuukpik Corporation, W.H. Hunt Trust Estate, Hunt Petroleum Corporation, Lamar Hunt Trust Estate, Nelson Bunker Hunt Trust Estate, Chevron U.S.A. Production Company, Texaco Producing Inc., Rosewood Resources Inc., 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 Bergschrund No. 2A 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 Bergschrund No. 2A is approved.

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

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

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index