STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West Seventh Avenue, Suite 100

Anchorage Alaska 99501

Re:

THE APPLICATION OF Union Oil of California (“UNOCAL”) for an order granting an exception to the spacing requirements of 20 AAC 25.055(a)(4)to provide for the drilling of the Happy Valley No. 6 gas development.

)
)
)
)
)
)
Conservation Order No. 519.000

Happy Valley No. 6, Drilling and Testing

June 8, 2004

IT APPEARING THAT:

1. 1. UNOCAL by letter dated April 8, 2004 and received by the Alaska Oil and Gas Conservation Commission on April 12, 2004, has requested an order allowing a spacing exception to drill and produce the Happy Valley No. 6 well in accordance with 20 AAC 25.055(a)(4).

2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on April 15, 2004, pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The surface location of this proposed well is 1088 feet from the south line and 1363 feet from the east line of Section 22, T2S, R13W, Seward Meridian (“S.M.”). The projected bottom hole location for this well is 2169 feet from the north line and 0 feet from the west line, Section 28, T2S, R13W, S.M.

2. The anticipated productive interval of the Happy Valley No. 6 well is within 3,000 feet of the productive interval of the Happy Valley No. 1 well.

3. The Happy Valley No. 6 and Happy Valley No. 5 wells are located within the Deep Creek Unit.

4. The Happy Valley No. 6 well location is expected to be a structurally high crestal withdrawal point in the Happy Valley gas accumulation. The location of the well is based on seismic and subsurface well data available to Unocal at this time.

5. Unocal sent notice of the application for spacing exception by certified mail to all offset owners, landowners, and operators of all properties within 3000 feet of the anticipated productive interval of the Happy Valley No. 6 well.

6. An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling and testing of the Happy Valley No. 6 well.

CONCLUSIONS:

1. Information derived from the drilling of the Happy Valley No. 6 well is required to delineate and allow for the efficient management of Deep Creek Unit gas reserves.

2. Granting a spacing exception to allow drilling and production of the Happy Valley No. 6 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.

NOW, THEREFORE, IT IS ORDERED:

UNOCAL’s application for exception to the well spacing provision of 20 AAC 25.055(a)(4) for the purpose of drilling and producing the Happy Valley No. 6 well is approved.

By Order of the Commission at Anchorage, Alaska, this 8th day June 2004.

John K. Norman, Chair
Alaska Oil and Gas Conservation Commission

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


Conservation Order Index      Home      Webmaster