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

    Re: THE APPLICATION OF BP         )                 Conservation Order No. 327
        EXPLORATION (ALASKA) INC.  )
        for an order granting an                        )
        exception to spacing                             )                 BP Exploration (Alaska), Inc.
        requirements of Title                             )                 Badami No. 3
        20 AAC 25.055 to provide                  )
        for the drilling of the BP                        )
        Badami No. 3 exploratory oil well         )
                                                                                      January 5, 1994

IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. submitted an application dated December 17, 1993 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the BP Badami No. 3 exploratory oil well closer than 500 feet to a drilling unit boundary.

2. Notice of opportunity for hearing was published in the Anchorage Daily News on December 21, 1993 pursuant to 20 AAC 25.540.

3. No protests to the applications were received.

FINDINGS:

1. The BP Badami No. 3 well as proposed will be a deviated hole drilled from a surface location 1251' from the north line (FNL) and 1388' from the east line (FEL) of Section 10, T9N, R20E, Umiat Meridian (UM) to a location 2416' FNL and 3688' FEL of Section 3, T9N, R20E, UM.

2. Offset owners Conoco Inc. and Petrofina Delaware Inc. have 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 Badami No. 3 exploratory oil 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 Badami No. 3 well is approved as proposed.

DONE at Anchorage, Alaska and dated January 5, 1994.

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

Russell A. Douglass, Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 327
January 5, 1994

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