Re:THE APPLICATION OF UNION               ) Conservation Order No. 397
OIL COMPANY OF CALIFORNIA
for an order granting an exception to
spacing requirements of Title 20 AAC
25.055 to provide for the drilling of the
Granite Point No. 55 development
oil well.
                                                                  July 29, 1997
IT APPEARING THAT:

1. Union Oil Company of California (Unocal) submitted an
   application dated July 8, 1997 requesting exception to
   20 AAC 25.055(a)(3) to allow drilling the Granite Point
   State No. 55 development oil well to a producing 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 July 10, 1997.

3. No protests to the application were received.

FINDINGS:

1. The Unocal Granite Point State No. 55 well as proposed
   will be a deviated hole drilled from a surface location
   2437' from the north line (FNL) and 1303' from the west
   line (FWL) of Section 13, T10N, R12W, Seward Meridian (SM),
   the proposed top of the productive interval is 5230' FNL
   and 1100' FWL of Section 23, T10W, R12W SM, and the
   proposed bottom-hole location is 2,350' FNL and 4780' FWL
   of Section 27, T10N, R12W, SM.

2. Offset owner Mobil Oil Company 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 Unocal
Granite Point No. 55 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 Granite Point No. 55 well is approved
as proposed.

DONE at Anchorage, Alaska and dated July 29, 1997.


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


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

Conservation Order No. 397
July 29, 1997