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

Re: THE APPLICATION OF Marathon )                 Conservation Order No. 433
Oil Company for an order granting              )
an exception to spacing requirements of        )                  Marathon Oil Company
20 AAC 25.055(a)(2) to re-enter the           )
ARCO Wolf Lake #2 exploratory well.        )                  Wolf Lake No. 2

                                                                                                                    July 29, 1998

IT APPEARING THAT:

  1. Marathon Oil Company in correspondence dated May 19, 1998, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(2). The exception would allow re-entry of the ARCO Wolf Lake #2 exploratory well, which is less than 1500' from a section line.
  2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on June 4, 1998 pursuant to 20 AAC 25.540.
  3. No protests to the application were received.
FINDINGS:
  1. The ARCO Wolf Lake #2 exploratory well is a straight hole located approximately 2265' from the west line and 1183' from the south line in Section 29, T7N, R9W, Seward Meridian. It is about three miles due south of the Swanson River oil field on the Kenai Peninsula.
  2. Offset owners Cook Inlet Region, Inc., ARCO Alaska, Inc., Anadarko Petroleum Corporation, Union Oil Company of California and Union Texas Alaska, LLC have been duly notified.
  3. An exception to the well spacing provisions of 20 AAC 25.055 (a)(2) is necessary to re-enter this well.
CONCLUSION:

Granting a spacing exception to allow re-entry of the ARCO Wolf Lake #2 exploratory well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Marathon Oil Company's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(2) for the purpose of re-entering the ARCO Wolf Lake #2 exploratory well is approved.

DONE at Anchorage, Alaska and dated July 29, 1998.
______________________________________
David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission
______________________________________
Robert N. Christenson, P. E., Commissioner
Alaska Oil and Gas Conservation Commission

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