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

Re: THE APPLICATION OF ARCO           )         Conservation Order No. 427
ALASKA, INC. for an order granting              )
an exception to spacing requirements of            )
20 AAC 25.055(a)(3) to provide for the          )         ARCO Alaska, Inc.
drilling of the 1H-Ugnu-01 oil well to an           )         1H-Ugnu-01
undefined pool in the Kuparuk River Unit.        )

                                                                                  May 22, 1998

IT APPEARING THAT:

  1. ARCO Alaska, Inc. submitted an application dated May 4, 1998 requesting exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the 1H-Ugnu-01 oil well to a bottom-hole location that is closer than 500 feet from a quarter-section line.
  2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on May 6, 1998 pursuant to 20 AAC 25.540.
No protests to the application were received.

FINDINGS:

  1. The 1H-Ugnu-01 well will be drilled as a directional hole from a surface location 469' from the north line (FNL), 805' from the east line (FEL), Section 33, T12N, R10E, Umiat Meridian (UM) to a target location of 280' from the south line, 1170' FEL, Section 28, T12N, R10E, UM, and a bottom-hole location of 874' FNL, 2153' FEL, Section 33, T12N, R10E, UM.
  2. Offset owners BP Exploration (Alaska) Inc., Chevron U.S.A. Inc., Mobil Oil Corporation, UNOCAL Alaska Resources and the State of Alaska have been duly notified.
  3. An exception to the well spacing provisions of 20 AAC 25.055 (a)(3) is necessary to allow the drilling of the well.
CONCLUSION:

Granting a spacing exception to allow drilling of the 1H-Ugnu-01 oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska, Inc.'s applications for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the 1H-Ugnu-01 oil well is approved.

DONE at Anchorage, Alaska and dated May 22, 1998.

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

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 427

May 22, 1998

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