STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                 )  Conservation Order No. 353
EXPLORATION (ALASKA)                     )
INC. for an order granting               )
an exception to spacing                  )  BP Exploration (Alaska), Inc.
requirements of Title                    )  Milne Point Unit E-13A
20 AAC 25.055 to provide                 )
for the drilling of the BP               )
Milne Point Unit E-13A                   )
exploratory oil well.                    )
                                            January 18, 1995
IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated December 23, 1994 requesting exception to 20 AAC 25.055(a)(1) to allow drilling the BP Milne Point Unit E-13A exploratory oil well to a producing location in an undefined oil Pool that is closer than 500 feet to a statewide drilling unit boundary.

2. Notice of opportunity for public hearing was published in the Chugiak-Eagle River Alaska Star on December 31, 1994 pursuant to 20 AAC 25.540.

3. No protest to the application was received.

FINDINGS:

1. The BP Milne Point Unit E-13A well as proposed will be a deviated hole drilled from a surface location 3778' from the south line (FSL) and 2067' from the east line (FEL) of Section 25, T13N, R10E, Umiat Meridian (UM) to a proposed bottom-hole location 489' FSL and 90' FEL of Section 15, T13N, R10E, UM.

2. Offset owner Oxy USA, 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 Milne Point Unit E-13A 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 Milne Point Unit E-13A well is approved as proposed.

DONE at Anchorage, Alaska and dated January 18, 1995.

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

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