New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 4 - ADJUDICATION › Section 19.15.4.12 - NOTICE REQUIREMENTS FOR SPECIFIC ADJUDICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Applications for the following
				adjudicatory hearings before the division or commission, in addition to that
				19.15.14.9 NMAC
				requires, as follows:
(1)
Compulsory
				pooling and statutory unitization.
(a)
				The applicant shall give notice to each owner of an interest in the mineral
				estate of any portion of the lands the applicant proposes to be pooled or
				unitized whose interest is evidenced by a written conveyance document either of
				record or known to the applicant at the time the applicant filed the
				application and whose interest has not been voluntarily committed to the area
				proposed to be pooled or unitized (other than a royalty interest subject to a
				pooling or unitization clause). An applicant seeking compulsory pooling of a
				standard horizontal spacing unit need not give notice to affected persons in
				adjoining spacing units or tracts unless the division so directs.
(b) When the applicant has given notice as
				required in Subsection A of
				19.15.4.9
				NMAC, of a compulsory pooling application, and those owners the applicant has
				located do not oppose the application, the applicant may file under the
				following alternative procedure. The application shall include the following:
(i) a statement that the applicant expects no
				opposition including the reasons why;
(ii) a map outlining the spacing unit to be
				pooled, showing the ownership of each separate tract in the proposed unit and
				the proposed well's location;
(iii)
				the names and last known addresses of the interest owners to be pooled and the
				nature and percent of their interests and an attestation that the applicant has
				conducted a diligent search of all public records in the county where the well
				is located and of phone directories, including computer searches;
(iv) the names of the formations and pools to
				be pooled;
(v) a statement as to
				whether the pooled unit is for gas or oil production or both;
(vi) written evidence of attempts the
				applicant made to gain voluntary agreement including but not limited to copies
				of relevant correspondence;
(vii)
				proposed overhead charges (combined fixed rates) to be applied during drilling
				and production operations along with the basis for such charges;
(viii) the location and proposed depth of the
				well to be drilled on the pooled units; and
(ix) a copy of the AFE the applicant, if
				appointed operator, will submit to the well's interest owners.
(c) Applicants shall provide with
				all submittals sworn and notarized statements by those persons who prepared
				submittals, attesting that the information is correct and complete to the best
				of their knowledge and belief.
(d)
				The division shall set unopposed pooling applications for hearing. If the
				division finds the application complete, the information submitted with the
				application shall constitute the record in the case, and the division shall
				issue an order based on the record.
(e) At an interested person's request or upon
				the division's own initiative, the division shall set a pooling application for
				full hearing with oral testimony by the applicant.