STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                   )  Conservation Order No. 389
Exploration (Alaska) Inc. for an order     )
granting an exception to spacing           )  BP Exploration (Alaska) Inc.
requirements of Title 20 AAC 25.055        )  Gwydyr PW No. 1
to provide for the drilling of the         )
BP Exploration (Alaska) Inc.               )
Gwydyr PW No. 1 exploratory oil well.      )
                                              February 18, 1997
IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. submitted an application dated January 31, 1997 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the BP Gwydyr PW No. 1 exploratory oil well closer than 500 feet to a drilling unit boundary.

2. Notice of hearing was published in the Anchorage Daily News on February 1, 1997 pursuant to 20 AAC 25.540.

3. The Commission received one protest to the petition, which it rejected on the grounds that the protestor was not an owner of correlative rights within the area of possible drainage by the well.

FINDINGS:

1. The BP Gwydyr PW No. 1 well as proposed will be a deviated hole drilled from a surface location 1364' from the south line (FSL) and 2706' from the west line (FWL) of Section 15, T12N, R13E, Umiat Meridian (UM) and the proposed bottom-hole location is 400' FSL and 1250' FWL of Section 10, T12N, R13E, UM.

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

4. An exception to 20 AAC 25.055(a)(1) is necessary to allow drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the BP Exploration (Alaska) Inc., Gwydyr PW No. 1 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 Gwydyr PW No. 1 well is approved as proposed.

DONE at Anchorage, Alaska and dated February 18, 1997

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

Mary Marshburn, Commissioner
Alaska Oil and Gas Conservation Commission

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