Re: THE APPLICATION OF BP              )             Conservation Order No. 418
EXPLORATION (ALASKA) INC.            )
for an order granting an exception                   )
to spacing requirements of20 AAC 25.055     )             BP Exploration (Alaska), Inc.
to provide for the completion the BP               )             DIU 2-56/EI-01A
Duck Island Unit 2-56/EI-01A exploratory     )
oil well in an undefined oil pool.                       )

                                                                                    April 14, 1998
IT APPEARING THAT:

1. BP Exploration (Alaska), Inc. submitted an application dated March 23, 1998 requesting exception to 20 AAC 25.055(a)(1) to allow the completion of the BP Duck Island Unit (DIU) 2-56/EI-01A exploratory oil well in an undefined oil pool closer than 500 feet to a quarter section line.

 
2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on March 25, 1998 pursuant to 20 AAC 25.540.

 
3. No protests to the application were received.

1. The BP DIU 2-56/EI-01A well is a deviated hole drilled from a surface location 3193' from the south line (FSL) and 2333' from the east line of Section 36, T12N, R16E, Umiat Meridian (UM) to a proposed producing interval 2151' FSL and 785' FWL of Section 27, T12N, R16E, UM.

 
2. Offset owner, ARCO Alaska inc. has been duly notified.

 
3. An exception to 20 AAC 25.055(a)(1) is necessary to allow the proposed completion of this well.

Granting a spacing exception to allow the completion of the BP DIU 2-56/EI-01A well within an 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 BP DIU 2-56/EI-01A well as proposed is approved.

DONE at Anchorage, Alaska and dated April 14, 1998.

David W. Johnston, Chairman
Robert Christenson, Commissioner
Cammy Oechsli, Commissioner