Re:THE APPLICATION OF BP                   ) Conservation Order No. 396
   EXPLORATION (ALASKA) INC.
   for an order granting an exception to
   spacing requirements of Title 20 AAC
   25.055 to provide for the completion of
   the BP Milne Point Unit MPJ-09
   oil well in an undefined oil pool.
                                                                July 16, 1997

IT APPEARING THAT:

1.BP Exploration (Alaska), Inc. submitted an application dated
  June 17, 1997 requesting exception to 20 AAC 25.055(a)(3) to
  allow the completion of the BP Milne Point Unit MPJ-09 oil well
  in an undefined oil pool within the Ugnu Formation closer than
  500 feet to a quarter-section line.

2.Notice of opportunity for public hearing was published in the
  Anchorage Daily News on July 1, 1997 pursuant to 20 AAC 25.540.

3.No protests to the application were received.

FINDINGS:

1.The BP MPJ-09 well is a deviated hole drilled from a surface
  location 2347' from the south line (FSL) and 2090' from the
  east line (FEL) of Section 28, T13N, R10E, Umiat Meridian (UM)
  with a proposed Ugnu Formation producing interval from 4298' FSL
  and 87' FEL of Section 29, T13N, R10E, UM to 4427' FSL and
  151 FEL of Section 29, T13N, R10E, UM.

2.Offset owner, Occidental Petroleum Corporation has been duly notified.

3.An exception to 20 AAC 25.055(a)(3) is necessary to allow the
  proposed completion of this well.

CONCLUSION:

Granting a spacing exception to allow the completion of the
BP MPJ-09 well within the Ugnu Formation undefined oil pool 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 completing the Milne Point Unit
MPJ-09 well as proposed is approved.

DONE at Anchorage, Alaska and dated July 16, 1997.

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

__________________________________________
Robert N. Christenson, Commissioner
Alaska Oil and Gas Conservation Commission

Conservation Order No. 396
July 16, 1997