Game ended with bad state (exit code 1)

Minecraft randomly crashes with
Game ended with bad state (exit code 1)
A fatal error has been detected by the Java Runtime Environment:
#

1. EXCEPTION_ACCESS_VIOLATION (0xc0000005) at pc=0x00000000696691d2, pid=1420, tid=11132
   #

2. JRE version: 7.0_25-b17

3. Java VM: Java HotSpot(TM) 64-Bit Server VM (23.25-b01 mixed mode windows-amd64 compressed oops)

4. Problematic frame:

5. C [nvoglv64.DLL+0x9691d2] DrvCopyContext+0x9ab2
   #

6. Failed to write core dump. Minidumps are not enabled by default on client versions of Windows
   If you would like to submit a bug report, please visit:

7. http://bugreport.sun.com/bugreport/crash.jsp

8. The crash happened outside the Java Virtual Machine in native code.

9. See problematic frame for where to report the bug.
   #
   AL lib: (EE) alc_cleanup: 1 device not closed

It happens moe frequently when placing blocks.