STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                  )  Conservation Order No. 356A
EXPLORATION (ALASKA)                      )
INC. for an order granting                )
an exception to spacing                   )  BP Exploration (Alaska), Inc.
requirements of Title                     )  Niakuk 13
20 AAC 25.055 to provide                  )
for the drilling of the BP                )
Niakuk 13 development oil well            )
                                             April 7, 1995
Amended August 9, 1996

IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated March 21, 1995 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the BP Niakuk 13 development oil well to a producing location that is closer than 500 feet to a quarter section line in an undefined pool.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on March 23, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

4. Conservation Order No. 356 granting the requested spacing exception was issued April 7, 1995.

5. BP Exploration (Alaska), Inc. submitted a revised bottom-hole location for the Niakuk 13 well on July 22, 1996. The revised bottom-hole location also requires an exception to 20 AAC 25.055 because it is closer than 500 feet to a quarter section line.

6. Notice of opportunity for public hearing for the revised bottom-hole location was published in the Anchorage Daily News on July 25, 1996 pursuant to 20 AAC 25.540.

7. No protests to the application were received.

FINDINGS:

1. The BP Niakuk 13 well as proposed will be a deviated hole drilled from a surface location 1342' from the south line (FSL) and 970' from the east line (FEL) of Section 36, T12N, R15E, Umiat Meridian (UM) to a proposed producing location 4835' FSL and 944' FWL of Section 23, T12N, R15E, UM and a bottom hole location 258' FSL and 506' FWL of Section 14, T12N, R15E UM.

2. Offset owners ARCO Alaska , Inc. and Exxon Company U.S.A. have been duly notified.

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

CONCLUSION:

Granting a spacing exception to allow drilling of the BP Niakuk 13 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 13 well is approved as proposed.

DONE at Anchorage, Alaska and dated August 9, 1996.

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

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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