STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192


Re:THE APPLICATION OF BP                 ) Conservation Order No. 398
EXPLORATION (ALASKA)
INC. for an order granting an exception
to spacing requirements of Title
20 AAC 25.055 to provide for the
drilling of the BP Niakuk 41ST
exploration oil well.
                                                              August 4, 1997
IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated
   July 1, 1997 requesting exception to 20 AAC 25.055(a)(1) to
   allow drilling the BP Niakuk 41ST exploration oil well to a
   location in an undefined Pool within the Ivishak Formation
   that is closer than 500 feet to a quarter-section line.

2. Notice of opportunity for public hearing was published in
   the Anchorage Daily News on July 17, 1997.

3. No protests to the application were received.

FINDINGS:

1. The BP Niakuk 41ST well as proposed will be a deviated hole
   drilled from a surface location 1474' from the south line
   (FSL) and 717' from the east line of Section 36, T12N, R15E,
   Umiat Meridian (UM) and the proposed bottomhole location is
   1121' FSL and 179' from the west line of Section 22, T12N,
   R16E, UM.

2. Offset owner ARCO Alaska, Inc. has been duly notified.

3. 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
Niakuk 41ST exploration 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 41ST
exploration well is approved as proposed.

DONE at Anchorage, Alaska and dated August 4, 1997.

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

__________________________________________
Robert N. Christenson, P.E., Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 398
August 4, 1997

Conservation Order Index