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


Re:	THE APPLICATION OF BP                   ) Conservation Order No. 404
	EXPLORATION (ALASKA)
       	INC. (BPX) for an order granting
	an exception to spacing requirements
	of Title 20 AAC 25.055 to provide
	for the drilling of the SB No. 1
	delineation oil well.

October 7, 1997

IT APPEARING THAT:

1.	BPX submitted an application dated September 5, 1997 requesting exception 
to 20 AAC 25.055(a)(3) to allow drilling the SB No. 1 delineation oil well to a 
location in an undefined pool 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 September 18, 1997 pursuant to 20 AAC 25.540.

3.	No protests to the application were received.


FINDINGS:

1.	The SB No. 1 well as proposed will be a deviated hole drilled from a  surface 
location 4301' from the south line (FSL) and 4500' from the east line (FEL) of 
Section 35, T12N, R12E, Umiat Meridian (UM) to a proposed bottomhole 
location 177' FSL and 531' FEL of Section 27, T12N, R12E, UM.

2.	Affected owners ARCO Alaska, Inc., Exxon Corporation, Mobil Alaska E&P 
Inc., and Phillips Petroleum Company 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 BPX SB 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 SB No. 1 well is approved as proposed.


DONE at Anchorage, Alaska and dated October 7, 1997.


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

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

Cammy Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

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