STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF ARCO Alaska, Inc.             )  Conservation Order No. 441
for an order granting an exception to the spacing   )
requirements of 20 AAC 25.055(a)(1) to              )  Meltwater North #1
provide for the drilling of the Meltwater           )  Kuparuk River Unit
North #1 exploratory oil well to an undefined       )
pool south of the Kuparuk River Unit.               )
                                                       February 18, 1999
IT APPEARING THAT:

1. ARCO Alaska, Inc. (AAI) by letter dated January 19, 1999, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(1). The exception would allow drilling the Meltwater North #1 exploratory oil well to an undefined pool within 500' of a governmental quarter section line.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on January 27, 1999 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Meltwater North #1 exploratory oil well will be drilled as a straight hole from a surface location of 2351' from the north line (FNL), 1818' from the west line (FWL) of Section 20, T8N, R7E, Umiat Meridian (UM).

2. Offset owners BP Exploration (Alaska), Inc.; UNOCAL Alaska Resources; Mobil Oil Corporation and Chevron USA, Inc. and offset landowner the State of Alaska, Department of Natural Resources, have been duly notified.

3. An exception to the well spacing provisions of 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 Meltwater North #1 exploratory oil well will not result in waste nor jeopardize correlative rights.

NOW THEREFORE, IT IS ORDERED:

AAI's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(1) for the purpose of drilling the Meltwater North #1 exploratory oil well is approved.

DONE at Anchorage, Alaska and dated February 18, 1999.

Robert N. Christenson, P. E., Chairman
Alaska Oil and Gas Conservation Commission

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

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

Conservation Order Index