STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF UNION             )  Conservation Order No. 378
OIL COMPANY OF CALIFORNIA               )
for an order granting an exception      )
to spacing requirements of Title        )  Union Oil Company of California
20 AAC 25.055 to provide for the        )  Baker No. 32
drilling of the Baker No. 32            )
development gas well.                   )
                                           March 26, 1996

IT APPEARING THAT:

1. Union Oil Company of California (Unocal) submitted an application dated March 6, 1996 requesting exception to 20 AAC 25.055(a)(4) to allow drilling the Granite Point State No. 54 development gas well to a producing location that is closer than 1500 feet to a drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on March 8, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Unocal Baker No. 32 well as proposed will be a deviated hole drilled from a surface location 1987' from the north line and 478' from the west line of Section 31, T9N, R12W, Seward Meridian (SM) to a bottom-hole location 824' from the south line and 1775' from the west line of Section 19, T9N, R12W SM.

2 Unocal is the owner of all off setting spacing units.

3. An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the Unocal Baker No. 32 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Unocal's application for exception to 20 AAC 25.055 for the purpose of drilling the Baker No. 32 well is approved as proposed.

DONE at Anchorage, Alaska and dated March 26, 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