STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192

Re:THE APPLICATION OF BP                       )  Conservation Order No. 437
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 Duck Island    ) Duck Island Unit 2-30a/E1-02
Unit well 2-30a/E1-02 deviated oil well to     )	
an undefined pool adjacent to the western)	
boundary of the Duck Island Unit.              )
                                                 December 23, 1998
IT APPEARING THAT:

1. BP Exploration (Alaska) Inc. (BPX) by letter dated December 1, 1998 requested an exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the Duck Island Unit 2-30a/E1-02 deviated oil well to an undefined pool with 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 December 5, 1998 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Duck Island Unit 2-30a/E1-02 oil well will be drilled as a deviated hole 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 bottomhole location 1124' NSL and 303' WEL, Section 28, T12N, R16E, UM.

2. Offset owners ARCO Alaska, Inc. has 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 Duck Island Unit 2-30a/E1-02 oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

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

DONE at Anchorage, Alaska and dated December 23, 1998.

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

Camillé Oechsli, Commissioner
Alaska Oil and Gas Conservation Commission

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