STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 W. 7th Avenue, Suite 100

Anchorage Alaska 99501

Re: THE APPLICATION OF UNOCAL ) Conservation Order No. 459
CORPORATION for an order )
granting an exception to spacing )
requirements of 20 AAC 25.055(a)(3) to ) Unocal Corporation
provide for the drilling of the Trading ) Trading Bay Field A-15RD
Bay Field A-15RD development oil )
well to a bottom hole location closer )
than 1,000' to a well capable of )
producing from the same pool. ) November 15, 2001

IT APPEARING THAT:

1. Unocal Corporation (Unocal) has requested an exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the Trading Bay Field A-15RD deviated oil well to an oil target closer than 1,000' to a well capable of producing from the same pool.

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on September 28, 2001 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Trading Bay Field A-15RD oil well will be drilled as a directional hole from a surface location 1,616' from the south line (FSL), 574' from the east line (FEL) of Section 4, T9N, R13W, Seward Meridian (SM) to a bottomhole location of 300' FSL and 2,980' FEL of Section 10, T9N, R13W, SM.

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

3. A program for logging the Trading Bay Field A-15RD oil well was not included with the permit to drill application.

CONCLUSIONS:

Granting a spacing exception to allow drilling of the Trading Bay Field A-15RD oil well promotes efficient development and will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

1. Unocal's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the Trading Bay Field A-15RD oil well is approved.

2. Because this portion of the Trading Bay Field is an important new oil production area, the Commission requests the operator acquire, at a minimum, LWD gamma ray data from the 13 3/8" casing shoe to the 7" casing shoe, and LWD gamma ray and resistivity data from the 7" casing shoe to the total depth of the well. If operating conditions permit, the Commission also requests Unocal acquire LWD neutron and density data from the 7" casing shoe to the total depth of the well.

DONE at Anchorage, Alaska and dated November 15, 2001.

Cammy Oechsli Taylor, Chair
Alaska Oil and Gas Conservation Commission

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

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