STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO              )                           Conservation Order No. 411
    ALASKA, INC. for an order granting         )
    an exception to spacing requirements      )
    of Title 20 AAC 25.055 to provide             )
    for the drilling of the Kalubik No. 3            )
    exploration oil well in the Harrison            )
    Bay vicinity of the Beaufort Sea.              )
                                                                                             January 29, 1998

IT APPEARING THAT:

1.ARCO Alaska, Inc. submitted an application dated January 12, 1998, requesting 
exception to the well spacing provisions of Title 20 AAC 25.055 (a)(1) to allow 
drilling of the ARCO Kalubik No. 3 exploration oil well to a bottom-hole location
in an undefined oil pool within 500 feet of a quarter section line in Harrison
Bay, south of Thetus Island in the Beaufort Sea.

2.Notice of opportunity for public hearing was published in the Anchorage Daily
News on January 14, 1998 pursuant to 20 AAC 25.540.

3.No protests to the application were received.

FINDINGS:

1.The ARCO Kalubik No. 3 exploration oil well will be drilled as a straight hole
from a surface location of 423' feet from the south line and 147 feet from the
west line of Section 28, Township 14 North and Range 07 East Umiat Meridian.

2.ARCO is the sole working interest owner of the subject and all offsetting
drilling units.

3.An exception to the well spacing provisions of Title 20 AAC 25.055 (a)(1) is 
necessary to allow the drilling of this well.


CONCLUSION:

Granting a spacing exception to allow drilling of the ARCO Kalubik No. 3 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 (a)(1) for the purpose of drilling the ARCO Kalubik
No. 3 is approved.

DONE at Anchorage, Alaska and dated January 29, 1997.
________________________________________
David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission
________________________________________
Cammy Oechsli,Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 411
January 29, 1998
Return To The Conservation Orders Index