STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF BP                  )  Conservation Order No. 379
EXPLORATION (ALASKA)                      )
INC. for an order granting)
an exception to spacing                   )  BP Exploration (Alaska), Inc.
requirements of Title                     )  Niakuk 14
20 AAC 25.055 to provide                  )
for the drilling of the BP                )
Niakuk 14 development oil well            )
                                             April 15, 1996

IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated March 22, 1996 requesting exception to 20 AAC 25.055(a)(3) to allow drilling the BP Niakuk 14 development oil well to a producing location in an undefined Pool within the Kuparuk River Formation 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 28, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The BP Niakuk 14 well as proposed will be a deviated hole drilled from a surface location 3921' from the north line (FNL) and 944' from the east line (FEL) of Section 36, T12N, R15E, Umiat Meridian (UM) to a proposed producing location 1388' FNL and 2397' FEL of Section 23, T12N, R15E, UM.

2. BP Exploration (Alaska) is the sole owner of all offset spacing units.

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 14 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 14 well is approved as proposed.

DONE at Anchorage, Alaska and dated April 15, 1996.

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

J. David Norton, P.E., Commissioner
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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