STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Re: APPLICATION OF FOREST OIL CO. ) Conservation Order No. 450-A
(successor to Forcenergy, Inc.) for an order )
amending Conservation Order No. 450, granting )
an exception to the spacing requirements of ) West Foreland Field
20 AAC 25.055 to allow for production from )
the West Foreland #1 gas well. ) April 23, 2001

IT APPEARING THAT:

1. The Commission issued Conservation Order No. 450 on July 24, 2000, granting Forcenergy, Inc. ("Forcenergy") a temporary spacing exception to allow for gas production from the West Foreland #1 well from the 9336'to 9352' (measured depth) interval, subject to the terms and conditions set out in that order.

2. Forcenergy submitted an application dated November 30, 2000, for an order amending Conservation Order No. 450 to, among other things, revise the date by which Forcenergy must deposit funds in an escrow account. Notice of hearing on this application was published in the Anchorage Daily News on December 6, 2000, pursuant to 20 AAC 25.540. Actual notice was also given to the Department of Natural Resources ("DNR") and the Bureau of Land Management ("BLM").

3. No protests to the application were received.

4. Forest Oil Co. ("Forest") has succeeded to Forcenergy's interest in this matter.

5. A hearing was held on January 9, 2001, at which representatives of Forest appeared.

FINDINGS:

1. Lease A-035017 and Lease ADL 359112 (collectively referred to below as the "Leases") provide for royalties to be paid to the respective lessors by the last day of the month that follows the month of production. It will be administratively more practicable to use the same deadline, rather than the 10th day of the month following the month of production, for deposits into an escrow account pursuant to the provisions of Conservation Order No. 450.

2. Data gathered from gas production for a period of at least two years is likely to allow a more accurate allocation between the Leases than production for the shorter period contemplated in Conservation Order No. 450. DNR and BLM are amenable to deferring an allocation determination until after such additional data are available.

3. Forest will consider producing gas from one or more additional intervals beyond the interval described in Conservation Order No. 450.

4. Contrary to the information previously provided to the Commission, Forest is not the sole working interest owner of the Leases. Phillips Petroleum Co. or an affiliate has an interest in zones below a certain depth. That depth is not less than 9,527 feet (measured depth) in the West Foreland #1 well.

CONCLUSIONS:

1. The spacing exception granted under Conservation Order No. 450 should be extended until July 1, 2003, and should cover gas production from any interval not deeper than 9,527 feet measured depth in the West Foreland #1 well.

2. Forest should be allowed until the last day of the month to deposit funds based on the previous month's production under the escrow provisions of Conservation Order No. 450.

NOW, THEREFORE, IT IS ORDERED:

1. Conservation Order No. 450 is amended consistent with the foregoing.

2. The spacing exception granted by Conservation Order No. 450, as amended, expires July 1, 2003.

3. The spacing exception granted by Conservation Order No. 450, as amended, covers gas production from any interval not deeper than 9,527 feet measured depth in the West Foreland #1 well. Forest shall conduct appropriate production testing and provide the Commission with geologic and geophysical data and the results of the production testing to support a reasonable inference as to what proportions of the gas reserves producible from each accumulation down to that depth underlie Lease A-035017 and Lease ADL 359111.

4. The deadline for escrow deposits under Conservation Order No. 450 is changed from the 10th day to the last day of each month for production during the previous month.

DONE at Anchorage, Alaska and dated April 23, 2001.

Cammy Taylor, Chair
Alaska Oil and Gas Conservation Commission

Daniel T. Seamount, Commissioner
Alaska Oil and Gas Conservation Commission

Julie M. Heusser, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order Index