STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF Union Oil Company          )  Conservation Order No. 445
of California (Unocal)for an order granting      )
an exception to the spacing requirements of      )  Well #243B-4
20 AAC 25.055(a)(4) to provide for the drilling  )  Soldotna Creek Unit
of the Soldotna Creek Unit Well #243B-4 gas      )
well to an undefined gas pool.                   )
                                                    June 14, 1999
IT APPEARING THAT:

1. Union Oil Company of California (Unocal) by letter dated May 24, 1999, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(4). The exception would allow drilling the Soldotna Creek Unit (SCU) 243B-4 gas well to a bottomhole location that is closer than 1500 feet to a section line.

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

3. No protests to the application were received.

FINDINGS:

1. The SCU #243B-4 well will be drilled as a vertical hole from a surface location 1943' from the south line, 626' from the east line of Section 4, T7N, R9W, Seward Meridian.

2. Unocal is the owner and operator of all offsetting sections.

3. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) is necessary to allow the drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the SCU #243B-4 gas well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

Unocal's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(4) for the purpose of drilling the SCU ##243B-4 is approved.

DONE at Anchorage, Alaska and dated June 14, 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

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