STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF STEWART         )  Conservation Order No. 393
PETROLEUM COMPANY for an              )
order granting an exception           )
to spacing requirements of            )  Stewart Petroleum Company
Title20 AAC 25.055 to                 )  West McArthur River Unit No. I-1 
provide for the drilling              )
of the West McArthur River            )
Unit No. I-1 enhanced oil             )
recovery water injection well.        )
                                         April 10, 1997

IT APPEARING THAT:

1. Stewart Petroleum Company submitted an application dated March 10, 1997 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the West McArthur River Unit I-1 enhanced oil recovery service well to a location that is closer than 500 feet to a drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on March 21, 1997 pursuant to 20 AAC 25.540.

3. A petition was recieved from an interested party with concerns related to the proposed enhanced oil recovery operations at West McArthur River Unit. No substantive protests were recieved from an affected owner who may be harmed if the requested spacing exception is issued.

FINDINGS:

1. The Stewart Petroleum Company West McArthur River Unit I-1 well as proposed will be a deviated hole drilled from a surface location 1953' from the west line (FWL) and 3233' from the north line (FNL) of Section 16, T8N, R14W, Seward Meridian (SM), the proposed top of the injection interval is 2400' FWL and 600' FNL of Section 15, T8N, R14W, SM and the proposed bottom hole location is 2765' FWL and 328' FNL of Section 15, T8N, R14W, SM.

2 Offset owner Union Oil Company of California has been duly notified.

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

CONCLUSION:

Granting a spacing exception to allow drilling of the Stewart Petroleum Company West McArthur River Unit I-1 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Stewart Petroleum Company's application for exception to 20 AAC 25.055 for the purpose of drilling the West McArthur River Unit I-1 well is approved as proposed.

DONE at Anchorage, Alaska and dated April 10, 1997.

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

Mary Marshburn, Commissioner
Alaska Oil and Gas Conservation Commission

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