STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive
Anchorage Alaska 99501-3192

Re:THE APPLICATION OF BP Exploration           )  Conservation Order No. 434
(ALASKA) INC. for an order granting            )
exception to spacing requirements of           )
20 AAC 25.055(a)(3) to provide for the         )  BP Exploration (Alaska) Inc.
drilling of the Duck Island 2-30a/EI-02        )  Duck Island 2-30a/EI-02
oil well to an undefined pool adjacent to the  )
the western boundary of the Duck Island Unit.  )
                                                     October 14, 1998

IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. (BPXA) submitted an application dated September 11, 1998, requesting exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling of the Duck Island 2-58a/E1-02 oil well to a bottom-hole location that is closer than 500 feet to a quarter section line. On October 2, 1998, BPX revised the surface and bottomhole location and changed the name to Duck Island 2-30a/E1-02.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on September 16, 1998 pursuant to 20 AAC 25.540.

3. No protests to the application were received during the comment period.

FINDINGS:

1. The Duck Island 2-30a/E1-02 development oil well will be drilled from a surface location of 3327' north of the south line (NSL) and 2245' west of the east line (WEL) of Section 36, T12N, R16E, Umiat Meridian (UM) to a bottom hole location 1139' NSL, 5122' WEL of Section 27, T12N, R16E, UM.

2. BPXA is the sole working interest owner of the subject and all offsetting drilling units.

3. An exception to the well spacing provisions of 20 AAC 25.055 (a)(3) is necessary to allow the drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the Duck Island 2-30a/E1-02 well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

BPXA's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the Duck Island 2-30a/E1-02 well is approved.

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

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

Camillé Oechsli,Commissioner
Alaska Oil and Gas Conservation Commission

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