STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re: THE APPLICATION OF BP ) Conservation Order No. 436
EXPLORATION (ALASKA) Inc. for an )
order granting an exception to spacing )
requirements of 20 AAC 25.055(a)(3) to ) BP Exploration (Alaska), Inc.
provide for the drilling of the Prudhoe Bay ) Prudhoe Bay Unit V-200
Unit V-200 deviated exploratory oil well to )
an undefined pool in the northwest portion )
of the Prudhoe Bay Unit. ) December 15, 1998

IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. (BPX) by letter dated October 26, 1998 requested an exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the Prudhoe Bay Unit V-200 exploratory oil well to a bottomhole location that is 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 October 30, 1998 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

4. By letter dated December 11, 1998, BPX corrected an error in the bottomhole location of the well contained in their application and subsequently in the hearing notice. The offset owners are not affected by this correction.

FINDINGS:

1. The Prudhoe Bay Unit V-200 exploratory oil well will be drilled as a deviated hole from a surface location of 2090' FSL and 1314' from the west line of Section 28, T12N, R12E, Umiat Meridian (UM) to a bottomhole location 2417' FSL and 1375' from the east line of Section 28, T12N, R12E, UM.

2. Offset owners ARCO Alaska, Inc. and Exxon Corporation have been duly notified.

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 Prudhoe Bay Unit V-200 exploratory oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

BPX's applications for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the Prudhoe Bay Unit V-200 exploratory oil well is approved.

DONE at Anchorage, Alaska and dated December 15, 1998.

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

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

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

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