STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192

Re: THE APPLICATION OF ARCO )                                     Conservation Order No. 414
        ALASKA, INC. for an order        )
        granting an exception to                 )
        spacing requirements of                 )                                       ARCO Alaska, Inc.
        Title 20 AAC 25.055 to                )                                       Alpine CD2-35
        provide for the drilling                    )
        of the Alpine CD2-35                    )
        delineation oil well in                      )
        the Colville Delta Vicinity.              )

                                                                                                     March 12, 1998

IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated February 24, 1998 requesting exception to the well spacing provisions of Title 20 AAC 25.055(a)(3) to allow drilling the ARCO Alpine CD2-35, delineation oil well to a location which is within 500 feet of a quarter section line in the Colville Delta vicinity of the North Slope.

Notice of opportunity for public hearing was published in the Anchorage Daily News on February 26, 1998 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Alpine CD2-35 delineation oil well will be drilled as a deviated hole with a surface location 1914' from the north line (FNL) and 1520' from the east line (FEL) of Section 2, T11N R4E, Umiat Meridian (UM) to a bottomhole location 1929' FNL and 366' FEL of Section 12 T11N R4E, UM.

2. Offset owners Anadarko Petroleum Corporation, Union Texas Petroleum Alaska Corporation, Chevron USA Inc., Kuukpik Corporation, Arctic Slope Regional Corporation and the State of Alaska have been duly notified.

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

CONCLUSION:

Granting a spacing exception to allow drilling of the ARCO Alpine CD2-35 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)(3) for the purpose of drilling the Arco Alpine CD2-35 is approved.

DONE at Anchorage, Alaska and dated March 12, 1998.

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

Cammy Occhsli, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 414

March 12, 1998

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