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

        Re: THE APPLICATION OF ARCO )         Conservation Order No. 431
        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 Tarn 2N-337A oil well       )         Tarn 2N-337A
        to an undefined pool adjacent to the        )
        western boundary of the Kuparuk River  )
        Unit.                                                       )

                                                                                July 10, 1998

IT APPEARING THAT:

  1. ARCO Alaska, Inc. in correspondence dated June 16, 1998 and June 17, 1998, requested exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the Tarn 2N-337A oil well to a bottomhole 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 June 19, 1998 pursuant to 20 AAC 25.540.
  3. No protests to the application were received.
FINDINGS:
  1. The Tarn 2N-337A oil well will be drilled as a directional hole from a surface location 117' from the north line, 996' from the east line (FEL), Section 3, T9N, R7E, Umiat Meridian (UM) to a bottomhole 1827' from the south line, 2645' (FEL), Section 4, T9N, R7E, 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 the drilling of this well.
CONCLUSION:

Granting a spacing exception to allow drilling of the Tarn 2N-337A oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska's applications for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the Tarn 2N-337A oil well is approved.

DONE at Anchorage, Alaska and dated July 10, 1998.
______________________________________
David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission
______________________________________
Robert N. Christenson, Commissioner
Alaska Oil and Gas Conservation Commission
_______________________________________
Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

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