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

Re: THE APPLICATION OF BP          )                 Conservation Order No. 413
EXPLORATION (ALASKA) INC. for )
an order granting an exception to spacing  )
requirements of Title 20 AAC 25.055       )                  BP Exploration (Alaska), Inc.
to provide for the drilling of the BP Duck  )                   DIU 2-56/BG-01 [Eider]
Island Unit 2-56/BG-01 [Eider]               )
exploratory oil well to an undefined          )
oil pool.                                                   )
                                                                                February 26, 1998 Corrected April 7, 1998

IT APPEARING THAT:

1.BP Exploration (Alaska), Inc. submitted an application dated February 9, 1998, requesting exception to 20 AAC25.055(a)(1) to allow the drilling of the BP Duck Island Unit 2-56/BG-01 [Eider] exploratory oil well to an undefined oil pool in the northwestern portion of the Duck Island Unit on the North Slope.

 2.Notice of opportunity for public hearing was published in the Anchorage Daily News on February 11, 1998, pursuant to 20 AAC 25.540.

 3.No protests to the application were received.

 FINDINGS:

 1.The BP DIU 2-56/BG-01 [Eider] well will be a deviated hole drilled from a surface location 3193' from the south line (FSL) and 2333' from the east line (FEL) of Section36, T12N, R16E, Umiat Meridian (UM) to a proposed bottomhole location 2612' FSL and 3864' FEL of Section27, 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 the proposed completion of this well.

 CONCLUSION:

 Granting a spacing exception to allow the drilling and completion of the BP DIU 2-56/BG-01 [Eider] 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 20AAC 25.055 for the purpose of drilling and completing the Duck Island Unit 2-56/BG-01 [Eider] well as proposed is approved.

DONE at Anchorage, Alaska and dated February 26, 1998.

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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