STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP               )  Conservation Order No. 346
EXPLORATION (ALASKA)                   )
INC. for an order granting             )
an exception to spacing                )  BP Exploration (Alaska) Inc.
requirements of Title                  )  Niakuk 9
20 AAC 25.055 to provide               )
for the drilling of the BP             )
Niakuk 9 development oil well          )
                                          November 21, 1994
IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated October 26, 1994 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the BP Niakuk 9 development oil well to a producing location in the Niakuk Oil Pool that is closer than 500 feet to the pool rule area boundary.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on October 29, 1994 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The BP Niakuk 9 well as proposed will be a deviated hole drilled from a surface location 3998' from the north line and 1073' from the east line of Section 36, T12N, R15E, Umiat Meridian (UM) to a proposed bottom-hole location of 2599' from the south line and 850' from the west line of Section 23, T12N, R15E, UM.

2. Offset owners Exxon USA and ARCO Alaska, Inc. have been duly notified.

3. An exception to 20 AAC 25.055(a)(3) and Rule 3 of Conservation Order No. 329 is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the BP Niakuk 9 well as proposed will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

BP Exploration (Alaska), Inc.'s application for exception to 20 AAC 25.055 for the purpose of drilling the Niakuk 9 well is approved as proposed.

DONE at Anchorage, Alaska and dated November 21, 1994.

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

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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