STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF UNION            )  Conservation Order No. 394
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       )  Swanson River Field 223-28 well
drilling of the Swanson River          )
Field 223-28 development gas well.     )
                                          May 12, 1997
IT APPEARING THAT:

1. Union Oil Company of California (Unocal) submitted an application dated April 18, 1997 requesting exception to 20 AAC 25.055(a)(4) to allow drilling the Swanson River Field 223-28 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 April 25, 1997 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Unocal Swanson River Field 223-28 well as proposed will be a deviated hole drilled from a surface location 1275' from the north line and 1500' from the west line (FWL) of Section 28, T8N, R9W, Seward Meridian (SM), the proposed top of the productive interval is 1835' from the south line (FSL) and 1489' FWL of Section 28, T8N, R9W, SM and the proposed bottom-hole location is 1241' FSL and 1719' FWL of Section 28, T8N, R9W, SM.

2 Offset owners Cook Inlet Region Inc. and Union Texas Petroleum have been duly notified.

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 Swanson River Field 223-28 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 Swanson River Field 223-28 well is approved as proposed.

DONE at Anchorage, Alaska and dated May 16, 1997.

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

Robert N. Christenson, Commissioner
Alaska Oil and Gas Conservation Commission

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