STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF BP                    )  Conservation Order No. 356
EXPLORATION (ALASKA)                        )
INC. for an order granting                  )
an exception to spacing                     )  BP Exploration (Alaska) Inc.
requirements of Title                       )  Niakuk 13
20 AAC 25.055 to provide                    )
for the drilling of the BP                  )
Niakuk 13 development oil well              )
                                               April 17, 1995
IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. submitted an application dated March 21, 1995 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the BP Niakuk 13 development oil well to a producing 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 March 23, 1995 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The BP Niakuk 13 well as proposed will be a deviated hole drilled from a surface location 3937' from the north line (FNL) and 970' from the east line (FEL) of Section 36, T12N, R15E, Umiat Meridian (UM) to a proposed producing location 1783' FNL and 2639' FEL of Section 23, T12N, R15E, UM.

2. Offset owners Exxon USA and ARCO Alaska, Inc. 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 BP Niakuk 13 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 13 well is approved as proposed.

DONE at Anchorage, Alaska and dated April 17, 1995.

David W. Johnston
Chairman

Russell A. Douglass
Commissioner

Tuckerman Babcock
Commissioner

Conservation Order Index