reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 12 - POOLS › Section 19.15.12.9 - SEGREGATION OF PRODUCTION FROM DIFFERENT POOLS OR LEASES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Pool segregation required. An operator
				shall produce each pool as a single common source of supply and complete, case,
				maintain and operate wells in the pool so as to prevent communication within
				the well bore with other pools. An operator shall at all times segregate oil or
				gas produced from each pool. The combination commingling of production, before
				marketing, with production from other pools without division approval is
				prohibited.
B. Lease segregation
				required. An operator shall not transport oil or gas from a lease until it has
				been accurately measured or determined by other methods acceptable to the
				division. An operator shall at all times segregate production from each lease.
				The combination or commingling of production, before marketing, with production
				from other leases without division approval is prohibited.
C. Exceptions. The division may permit
				exceptions to Subsections A and B of 19.15.12.9 NMAC for surface commingling,
				downhole commingling and off-lease storage or measurement pursuant to
				19.15.12.10 NMAC, 19.15.12.11 NMAC and 19.15.12.12 NMAC, respectively.
				Exceptions granted by previous division orders remain in effect in accordance
				with their terms and conditions.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 12 - POOLS › Section 19.15.12.10 - SURFACE COMMINGLING - OIL, GAS OR OIL AND GAS

Current through Register Vol. 35, No. 13, July 16, 2024
A. To prevent waste, to promote conservation
				and to protect correlative rights, the division may grant exceptions to permit
				the surface commingling of oil or gas in common facilities from two or more
				pools, two or more leases or combinations of pools and leases provided that:
(1) the division shall approve the method the
				applicant uses to allocate the production to the various leases or pools to be
				commingled;
(2) if state, federal
				or tribal lands are involved, the operator has notified the state land office
				or BLM, as applicable, of the proposed commingling; and
(3) the operator has met the other applicable
				requirements in 19.15.12.10 NMAC.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 12 - POOLS › Section 19.15.12.11 - DOWNHOLE COMMINGLING

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				director may grant an exception to 19.15.12.9 NMAC to permit the commingling of
				multiple producing pools in existing or proposed well bores when the following
				conditions are met.
(1) The fluids from each
				pool are compatible and combining the fluids will not damage the
				pools.
(2) The commingling will not
				jeopardize the efficiency of present or future secondary recovery operations in
				the pools to be commingled.
(3) The
				bottom perforation of the lower zone is within 150 percent of the depth of the
				top perforation in the upper zone and the lower zone is at or below normal
				pressure with normal pressure assumed to be 0.433 psi per foot of depth. If the
				pools to be commingled are not within this vertical interval, then evidence is
				required to demonstrate that commingling will not result in shut-in or flowing
				well bore pressures in excess of any commingled pool's fracture parting
				pressure. The fracture parting pressure is assumed to be 0.65 psi per foot of
				depth unless the applicant submits other measured or calculated pressure data
				acceptable to the division.
(4) The
				commingling will not result in the permanent loss of reserves due to cross-flow
				in the well bore.
(5)
				Fluid-sensitive formations that may be subject to damage from water or other
				produced liquids are protected from contact with the liquids produced from
				other pools in the well.
(6) If any
				of the pools being commingled is prorated, or the well's production has been
				restricted by division order in any manner, the allocated production from each
				producing pool in the commingled well bore shall not exceed the top oil or gas
				allowable rate for a well in that pool or rate restriction applicable to the
				well.
(7) The commingling will not
				reduce the value of the total remaining production.
(8) Correlative rights will not be
				violated.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.13 NMAC applies to persons engaged in oil and gas
				  development and production within New Mexico.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.13 NMAC is adopted pursuant to the Oil and Gas Act,
				  NMSA 1978, Section
				  70-2-6,
				  Section
				  70-2-11,
				  Section
				  70-2-12
				  and Section
				  70-2-17.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
December 1, 2008, unless a later date is cited at the end of
				  a section.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To establish requirements for implementation of the
				  division's statutory authority to pool interests in oil and gas spacing
				  units.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Infill well"
				means a well in a compulsory pooled proration or spacing unit to be completed
				in a pool in which an existing well drilled pursuant to the compulsory pooling
				order has been completed and not plugged and abandoned.
B. "Operator", for the purposes of 19.15.13
				NMAC, means the division or commission appointed operator of a compulsory
				pooled proration or spacing unit, or its successor.
C. "Pooled working interest" means a working
				interest or unleased mineral interest that is pooled by division or commission
				order and not by voluntary agreement of the owner of the interest, except for
				an unleased mineral interest on federal, state or tribal lands.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.8 - CHARGE FOR RISK

Current through Register Vol. 35, No. 13, July 16, 2024
A. General
				rule. Compulsory pooling orders the division enters pursuant to NMSA 1978,
				Section
				70-2-17,
				as amended, may provide for the recovery, out of the share of production
				allocable to the working interest of a party that elects not to pay its
				proportionate share of well costs in advance, in addition to reasonable well
				costs and costs of supervision and management, of a charge for risk associated
				with the drilling, completion or working over and re-completion of each unit
				well for which the order provides. Unless otherwise ordered pursuant to
				Subsection D of 19.15.13.8 NMAC, the charge for risk is 200 percent of well
				costs.
B. Well costs shall include
				the reasonable costs of drilling, reworking, diverting, deepening, plugging
				back and testing the well; completing the well in a formation pooled by the
				order; and equipping the well for production.
(1) If, however, a well was previously
				completed in another formation or bottom hole location, or was previously
				abandoned without completion, well costs as to that well shall mean only the
				reasonable costs of re-entering, reworking, diverting, deepening, plugging back
				or testing the well; completion in the pooled formation or formations and; if
				necessary, reequipping the well for production, unless the division determines
				that allowance of all or some portion of historical costs of drilling is just
				and reasonable due to particular circumstances.
(2) If a well is completed in two or more
				formations having diverse ownership or a different risk charge percentage, the
				order shall provide for allocation of well costs between the
				formations.
(3) As to an interest
				owner who elects not to pay its share of well costs associated with a specific
				well in advance, as provided in the applicable order, well costs shall include
				costs of a subsequent operation undertaken to secure or enhance production from
				a formation pooled by the order prior to the time that the entire amount of the
				non-consenting owner's share of well costs and applicable risk charge have been
				recovered from the non-consenting owner's share of the well's production. The
				costs shall include expenses for reworking, diverting, deepening, plugging
				back, testing, completion or recompletion and equipping for production, but not
				ordinary operating expenses.
(4)
				Well costs shall also include reasonable costs of drilling, testing, completing
				and equipping a substitute well if, in the drilling of a well pursuant to a
				compulsory pooling order, the operator loses the hole or encounters mechanical
				difficulties rendering it impracticable to drill to the objective depth and the
				substitute well is located within 330 feet of the original well and the
				operator commences drilling within 10 days of the original well's
				abandonment.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.9 - INFILL WELLS

Current through Register Vol. 35, No. 13, July 16, 2024
Whenever 19.15.15 NMAC or an applicable pool order authorizes
				  one or more infill wells within a proration or spacing unit pooled by division
				  or commission order pursuant to NMSA 1978, Section
				  70-2-17,
				  either the operator or an owner of a pooled working interest may, at any time
				  after completion of the initial well provided in the pooling order, propose
				  drilling of an infill well.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.10 - PROPOSAL BY THE OPERATOR

Current through Register Vol. 35, No. 13, July 16, 2024
A. If
				the operator proposes an infill well, it shall notify each pooled working
				interest owner of the proposal by certified mail, return receipt requested,
				specifying the proposed well's location and depth and including a schedule of
				estimated well costs and a statement of each pooled working interest owner's
				gross working interest percentage.
B. Each pooled working interest owner may
				elect to participate in the proposed infill well by notice in writing to the
				operator within 30 days after the owner receives the proposal, provided that
				the election to participate shall not be effective unless the owner so electing
				pays to the operator the amount of the owner's share of estimated well costs
				within 30 days after the date of transmission of its notice of election to
				participate.
C. A pooled working
				interest owner not electing to participate in the proposed infill well shall be
				deemed to have elected to become a non-consenting owner with respect to the
				infill well. The operator shall withhold from the proceeds of the well's
				production accruing to the working interest of a non-consenting owner the
				non-consenting owner's share of costs, as defined in 19.15.13 NMAC, of the
				infill well, together with a risk charge computed at the same rate as provided
				in the pooling order with respect to the initial well. The operator shall
				distribute the amounts withheld from the non-consenting owner's share of
				production for well costs and risk charges proportionately to the persons who
				have advanced the infill well's cost.
D. Unless it withdraws the proposal the
				operator shall commence drilling of the proposed infill well no later than 120
				days after the expiration of the initial notice period of 30 days. The director
				may extend the time for commencement of drilling once for not more than an
				additional 120 days, upon showing of good cause for the extension, without
				notice or hearing. If the operator has not commenced drilling within the time
				provided no election previously made shall be binding on a party. If the
				operator still desires to drill the infill well, it shall resubmit written
				notice proposing the well as if no prior proposal had been made.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.11 - PROPOSAL BY POOLED WORKING INTEREST OWNER

Current through Register Vol. 35, No. 13, July 16, 2024
A. If a pooled working interest owner
				proposes an infill well, it shall notify the operator of the proposal by
				certified mail, return receipt requested, specifying the proposed well's
				location and depth and including a schedule of estimated well costs. The
				proposing owner shall mail a copy of the proposal to each of the other pooled
				working interest owners, or their successors in title as identified by
				documents of record in the office of the clerk of the county where the proposed
				well will be located, at the same time that it mails the proposal to the
				operator.
B. The operator shall,
				within 60 days after receipt of such notice, either propose an infill well at
				the specified location and depth as an operator proposal pursuant to
				19.15.13.10 NMAC, or notify the owner proposing the well that it declines to do
				so.
(1) If the operator proposes the well and
				fewer than all working interest owners elect to participate, the operator may
				withdraw the proposal unless the originally proposing owner, within 30 days of
				receipt of notice of such occurrence, advances the share of estimated well
				costs allocable to all non-consenting owners of pooled working
				interests.
(2) If the operator
				proposes the well and all owners consent to the well or the originally
				proposing owner advances the share of well costs allocable to an otherwise
				unsubscribed interest, the operator shall commence drilling the proposed infill
				well within 120 days after it receives notice that either condition has
				occurred. The director may extend the time for commencement of drilling once
				for not more than an additional 120 days, upon showing of good cause for the
				extension, without notice or hearing. Well costs applicable to a non-consenting
				owner of a pooled working interest, together with the risk charge provided in
				the original pooling order, shall be recoverable out of the non-consenting
				owner's share of production as in other cases.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.12 - REFUND OF MONEY ADVANCED

Current through Register Vol. 35, No. 13, July 16, 2024
If the operator does not commence an infill well proposed
				  pursuant to
				  19.15.13.10
				  NMAC within the time provided, including an extension the division allows, it
				  shall refund amounts it received from a pooled party as advance payment of well
				  costs for the well within 10 days after the expiration of the time provided for
				  commencement of drilling, together with interest on the amount received
				  calculated at the rate of bank of America prime plus three percentage
				  points.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 13 - COMPULSORY POOLING › Section 19.15.13.13 - DETERMINATION OF REASONABLE COSTS

Current through Register Vol. 35, No. 13, July 16, 2024
The provision of the applicable compulsory pooling order
				  regarding reporting of actual well costs to the division and to pooled working
				  interest owners, opportunity for objections to those costs, determinations of
				  reasonableness of well costs and adjustment of the amount paid to a
				  participating pooled working interest owner to reflect reasonable well costs
				  shall apply to a well drilled pursuant to
				  19.15.13.10
				  NMAC or
				  19.15.13.11
				  NMAC.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.14 NMAC applies to persons engaged in drilling oil and
				  gas wells within New Mexico.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.14 NMAC is adopted pursuant to the Oil and Gas Act,
				  NMSA 1978, Section
				  70-2-6,
				  Section
				  70-2-11
				  and Section
				  70-2-12.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To require an operator to obtain a permit prior to commencing
				  drilling, deepening or re-entry operations or before plugging a well back to a
				  different pool or completing or re-completing a well in an additional pool and
				  to establish procedures for application for and approval or denial of the
				  permit.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.8 - PERMIT TO DRILL, DEEPEN OR PLUG BACK

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Permit required.
An operator
				is required to obtain a permit approved by the division prior to commencing
				drilling, deepening or re-entry operations, commencing an additional lateral,
				plugging a well back to a different pool, or completing or re-completing a well
				in an additional pool.
B.
Mineral owner or working interest owner consent required.
(1) An operator shall not file an application
				for permit to drill nor commence drilling operations until the operator has
				either:
(a) received the consent of at least
				one working interest owner or owner of an unleased mineral interest at the
				proposed bottom hole location; or
(b) obtained a compulsory pooling order from
				the division.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.9 - APPLICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
An operator shall file a complete form C-101 and complete
				  form C-102 with the division and meet the following requirements, if
				  applicable:
A. an applicant for a
				permit to drill a well within the corporate limits of a city, town or village
				shall give notice to the duly constituted governing body of the city, town or
				village or its duly authorized agent and certify on form C-101 that it gave
				such notice;
B. an applicant for a
				permit to drill in a quarter-quarter section containing an existing well or
				wells operated by another operator shall concurrently file a plat or other
				acceptable document locating and identifying the well or wells, furnish a copy
				of the application to the other operator or operators in the quarter-quarter
				section and certify on form C-101 that it furnished the copies; and
C. an applicant for a permit to operate a
				well in a spacing or proration unit containing an existing well or wells
				operated by another operator shall also comply with Subsection B of 19.15.15.12
				NMAC.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.10 - APPROVAL OR DENIAL OF A PERMIT TO DRILL, DEEPEN OR PLUG BACK

Current through Register Vol. 35, No. 13, July 16, 2024
A. The director or
				the director's designee may deny a permit to drill, deepen or plug back if the
				applicant is not in compliance with Subsection A of 19.15.5.9 NMAC. In
				determining whether to grant or deny the permit, the director or the director's
				designee shall consider such factors as whether the non-compliance with
				Subsection A of 19.15.5.9 NMAC is caused by the operator not meeting the
				financial assurance requirements of 19.15.8 NMAC, being subject to a division
				or commission order finding the operator to be in violation of an order
				requiring corrective action, having a penalty assessment that has been unpaid
				for more than 70 days since the issuance of the order assessing the penalty or
				having more than the allowed number of wells out of compliance with 19.15.25.8
				NMAC. If the non-compliance is caused by the operator having more than the
				allowed number of wells not in compliance with 19.15.25.8 NMAC, the director or
				director's designee shall consider the number of wells not in compliance, the
				length of time the wells have been out of compliance and the operator's efforts
				to bring the wells into compliance.
B. The division may impose conditions on an
				approved permit to drill, deepen or plug back.
C. If the division denies the permit it shall
				return the form C-101 to the applicant with the cause for rejection
				stated.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 14 - DRILLING PERMITS › Section 19.15.14.11 - APPROVED FORM C-101 AT WELL SITE

Current through Register Vol. 35, No. 13, July 16, 2024
The operator shall keep a copy of the approved form C-101 at
				  the well site during drilling operations.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.15 NMAC applies to persons engaged in drilling oil and
				  gas wells within New Mexico.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.15 NMAC is adopted pursuant to the Oil and Gas Act,
				  Section
				  70-2-6,
				  Section
				  70-2-11
				  and Section
				  70-2-12
				  NMSA 1978, which authorizes the division to establish well
				  spacing.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
December 1, 2008, unless a later date is cited at the end of
				  a section.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To classify wells and establish well location and well
				  acreage requirements and procedures for multiple operators within a spacing
				  unit, obtaining approval of unorthodox well locations and for pooling or
				  communitizing small acreage oil lots.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
[RESERVED]
[See
				  19.15.2.7
				  NMAC for definitions.]
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.8 - CLASSIFICATION OF WELLS: WILDCAT AND DEVELOPMENT WELLS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Wildcat well.
(1) In San Juan, Rio Arriba, Sandoval and
				McKinley counties, a wildcat well is a well to be drilled the spacing unit of
				which is a distance of two miles or more from:
(a) the outer boundary of a defined pool that
				has produced oil or gas from the formation to which the well is projected to be
				drilled; and
(b) a well that has
				produced oil or gas from the formation to which the proposed well is projected
				to be drilled.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.9 - OIL WELL ACREAGE AND WELL LOCATION REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A wildcat well that the operator projects
				to drill as an oil well to a formation and in an area that in the division's
				opinion may reasonably be presumed to produce oil rather than gas, and each
				development well for a defined oil pool unless otherwise provided in special
				pool orders, shall be located on a spacing unit consisting of approximately 40
				contiguous surface acres, substantially in the form of a square that is a legal
				subdivision of the United States public land surveys and is a governmental
				quarter-quarter section or lot, and shall be located no closer than 330 feet to
				a boundary of the unit. Unless otherwise provided in applicable special pool
				order, a 40-acre oil spacing unit may contain up to four wells. Only those
				40-acre spacing units committed to active secondary recovery projects shall be
				permitted more than four wells.
B.
				If a well drilled as an oil well is completed as a gas well but does not
				conform to the applicable gas well location requirements, the operator shall
				apply for administrative approval for a non-standard location before the well
				can produce. The director may set the application for hearing.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.10 - GAS WELL ACREAGE AND WELL LOCATION REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A wildcat well that the operator projects to drill as a gas
				  well to a formation and in an area that in the division's opinion may
				  reasonably be presumed to produce gas rather than oil and each development well
				  for a defined gas pool, unless otherwise provided in special pool orders, shall
				  be spaced and located as follows.
A.
				640-acre spacing applies to a deep gas well in Rio Arriba, San Juan, Sandoval
				or McKinley county that is projected to be drilled to a gas producing formation
				older than the Dakota formation or is a development well within a gas pool
				created and defined by the division after June 1, 1997 in a formation older
				than the Dakota formation, which formation or pool is located within the
				surface outcrop of the pictured cliffs formation (
i.e
., the
				San Juan basin). The well shall be located on a spacing unit consisting of 640
				contiguous surface acres, more or less, substantially in the form of a square
				that is a section and legal subdivision of the United States public land
				surveys and shall be located no closer than:
(1) 1200 feet to an outer boundary of the
				spacing unit;
(2) 130 feet to a
				quarter section line; and
(3) 10
				feet to a quarter-quarter section line or subdivision inner boundary.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.11 - Acreage Assignment

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Well tests and classification.
The operator of a wildcat or
				development gas well to which more than 40 acres has been dedicated shall
				conduct a potential test within 30 days following the well's completion and
				file the test with the division within 45 days following the test's completion.
				(See
				19.15.19.8
				NMAC.)
(1) The completion date for a gas well
				is the date of the conclusion of active completion work on the well.
(2) If the division determines that a well
				should not be classified as a gas well, the division shall reduce the acreage
				dedicated to the well to the standard acreage for an oil well.
(3) The operator's failure to file the test
				within the specified time subjects the well to the acreage reduction.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.12 - Special rules for multiple operators within a spacing unit

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Allowable
				production.
If an operator completes a well in an oil pool or prorated
				gas pool, located within a proration unit containing an existing well or wells
				producing from that pool and operated by a different operator, unless all
				operators of wells producing from that proration unit agree, the allowable
				production from the newly completed well shall not exceed the difference
				between the allowable production for the proration unit and the actual
				production from the pool of the existing well or wells within the proration
				unit. The division may authorize exceptions to Subsection A of 19.15.15.12 NMAC
				after hearing following appropriate notice.
B.
Notice requirements.
(1) An operator who intends to operate a well
				in a spacing or proration unit containing an existing well or wells operated by
				another operator shall, prior to filing the application for permit to drill,
				deepen or plug back for the well, furnish written notification of its intent to
				the operator of each existing well, and, if the unit includes state, federal or
				tribal minerals, to the state land office or BLM, as applicable; provided that
				separate notification to the BLM is not required if the operator will file the
				application with the BLM pursuant to
				19.15.7.11
				NMAC.
(2) The operator shall send
				the notices by certified mail, return receipt requested, and shall specify the
				proposed well's location and depth.
(3) The applicant shall submit with its
				application for permit to drill, deepen or plug back either
(a) a statement attesting that, at least 20
				days before the date that the application was submitted to the division, the
				applicant sent notices to the designated parties, by certified mail, return
				receipt requested, advising them that if they have an objection they must
				deliver a written statement of objection to the proposing operator within 20
				days of the date the operator mailed the notice, and that it has received no
				such objection; or
(b) written
				waivers from all persons required to be notified (the BLM's approval of the
				application being deemed equivalent to waiver by that agency); in event of
				objection, the division may approve the application only after
				hearing.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.13 - Unorthodox Locations

Current through Register Vol. 35, No. 13, July 16, 2024
A. Well
				locations within a secondary recovery, tertiary recovery or pressure
				maintenance project for producing wells or injection wells that are unorthodox
				based on
				19.15.15.9
				NMAC's requirements and are necessary for an efficient production and injection
				pattern are authorized, provided that the unorthodox location within the
				project is no closer than the required minimum distance to the outer boundary
				of the lease or unitized area, and no closer than 10 feet to a quarter-quarter
				section line or subdivision inner boundary. These locations only require such
				prior approvals as are necessary for an orthodox location.
B. The director may grant an exception to the
				well location requirements of
				19.15.15.9
				NMAC,
				19.15.15.10
				NMAC and
				19.15.16.15
				NMAC or special pool orders after notice and opportunity for hearing when the
				exception is necessary to prevent waste or protect correlative
				rights.
C. The operator shall
				submit applications for administrative approval pursuant to Subsection B of
				19.15.15.13 NMAC to the division's Santa Fe office accompanied by a plat
				showing the spacing unit, the proposed unorthodox well location and the
				adjoining spacing units and wells; a list of affected persons entitled to
				notice pursuant to Paragraph (2) of Subsection A of
				19.15.4.12
				NMAC; and information evidencing the need for the exception. The division shall
				give notice as required in
				19.15.4.9
				NMAC and the operator shall give notice as required by Paragraph (2) of
				Subsection A of
				19.15.4.12
				NMAC.
D. The applicant shall submit
				a statement attesting that the applicant, on or before the date that the
				applicant submitted the application to the division, sent notification to the
				affected persons by furnishing a copy of the application, including a copy of
				the plat described in Subsection C of 19.15.15.13 NMAC, by certified mail,
				return receipt requested, advising them that if they have an objection they
				shall file it in writing with the division within 20 days from the date the
				division receives the application. The director may approve the unorthodox
				location upon receipt of waivers from all the affected persons or if no
				affected person has filed an objection within the 20-day period.
E. The director may set for hearing an
				application for administrative approval of an unorthodox location.
F. Whenever the division approves an
				unorthodox location, it may order any action necessary to offset an advantage
				of the unorthodox location.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.14 - EFFECT OF NON-STANDARD UNITS ON ALLOWABLES

Current through Register Vol. 35, No. 13, July 16, 2024
A. If the drilling tract is within a
				prorated/allocated oil pool or is subsequently placed within the pool and the
				drilling tract consists of less than 391/2 acres or more than 401/2 acres, the
				top proration unit allowable for the well shall be increased or decreased in
				the proportion that the number of acres in the drilling tract bears to
				40.
B. If the drilling tract is
				within a prorated/allocated gas pool or is subsequently placed within the pool
				and the drilling tract consists of less than 158 acres or more than 162 acres
				in 160-acre pools, less than 316 acres or more than 324 acres in 320-acre pools
				or less than 632 acres or more than 648 acres in 640-acre pools, the top
				allowable for the well shall be decreased or increased in the proportion that
				the number of acres in the drilling tract bears to a standard spacing unit for
				the pool.
C. In computing acreage
				under Subsections A and B of 19.15.15.14 NMAC, less than one quarter acre shall
				not be counted but one-half acre or more shall count as one acre.
D. The provisions of Subsections A and B of
				19.15.15.14 NMAC apply only to wells completed after January 1, 1950.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.15 - Division-Initiated Exceptions

Current through Register Vol. 35, No. 13, July 16, 2024
To prevent waste, the division may, after hearing, set
				  different spacing requirements and require different acreage for drilling
				  tracts in a defined oil or gas pool.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 15 - WELL SPACING AND LOCATION › Section 19.15.15.16 - Pooling Or Communitization Of Small Oil Lots

Current through Register Vol. 35, No. 13, July 16, 2024
A. The division may approve the pooling or
				communitization of fractional oil lots of 20.49 acres or less with a contiguous
				oil spacing unit when the ownership is common and the tracts are part of the
				same lease with the same royalty interests if the following requirements are
				satisfied:
(1) the operator applies to the
				division's Santa Fe office for administrative approval with an application
				accompanied by:
(a) a plat showing the
				dimensions and acreage involved, the acreage's ownership, the location of
				existing and proposed wells and adjoining spacing units;
(b) a list of affected persons in the oil
				lots and the contiguous spacing unit to be pooled or communitized;
				and
(c) a statement discussing the
				reasons for the pooling or communitization; and
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.16 NMAC applies to persons engaged in the drilling and
				  production of oil and gas wells within New Mexico.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
19.15.16 NMAC is adopted pursuant to the Oil and Gas Act,
				  Section
				  70-2-6,
				  Section
				  70-2-11
				  and Section
				  70-2-12
				  NMSA 1978.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
December 1, 2008, unless a later date is cited at the end of
				  a section.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
These definitions apply specifically to 19.15.16 NMAC. For
				  additional definitions that may apply see 19.15.2 NMAC.
A.
"Azimuth"
means the deviation
				in the horizontal plane of a well bore expressed in terms of compass
				degrees.
B.
"Completed
				interval"
means that portion of a well bore or lateral that is:
(1) cased, cemented and perforated;
(2) an open hole; or
(3) isolated by a packer or other
				non-permeable means and open to the formation.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.8 - SIGN ON WELLS

Current through Register Vol. 35, No. 13, July 16, 2024
A. An operator
				shall identify wells and related facilities the division regulates by a sign,
				which shall remain in place until the operator plugs and abandons the well and
				closes the related facilities.
B.
				For drilling wells, the operator shall post the sign on the derrick or not more
				than 20 feet from the well.
C. The
				sign shall be of durable construction and the lettering shall be legible and
				large enough to be read under normal conditions at a distance of 50
				feet.
D. The wells on each lease or
				property shall be numbered in non-repetitive, logical and distinctive
				sequence.
E. An operator shall have
				90 days from the effective date of an operator name change to change the
				operator name on the well sign unless the division grants an extension of time,
				for good cause shown along with a schedule for making the changes.
F. Each sign shall show the:
(1) well number;
(2) property name;
(3) operator's name;
(4) location by footage, quarter-quarter
				section, township and range (or unit letter can be substituted for the
				quarter-quarter section); and
(5)
				API number.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.9 - SEALING OFF STRATA

Current through Register Vol. 35, No. 13, July 16, 2024
A. During the
				drilling of an oil well, injection well or other service well, the operator
				shall seal and separate the oil, gas and water strata above the producing or
				injection horizon to prevent their contents from passing into other
				strata.
B. The operator shall
				ensure that fresh waters and waters of present or probable value for domestic,
				commercial or stock purposes are confined to their respective strata and are
				adequately protected by division-approved methods. The operator shall take
				special precautions by methods satisfactory to the division in drilling and
				abandoning wells to guard against loss of artesian water from the strata in
				which it occurs, and the contamination of artesian water by objectionable
				water, oil or gas.
C. The operator
				shall ensure that water is shut off and excluded from the various oil- and
				gas-bearing strata that are penetrated. The operator shall ordinarily make
				water shut-offs by cementing casing.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.11 - DEFECTIVE CASING OR CEMENTING

Current through Register Vol. 35, No. 13, July 16, 2024
If a well appears to have a defective casing program or
				  faultily cemented or corroded casing that will permit or may create underground
				  waste or contamination of fresh waters, the operator shall give written notice
				  to the division within five working days and proceed with diligence to use the
				  appropriate method and means to eliminate the hazard. If the hazard of waste or
				  contamination of fresh water cannot be eliminated, the operator shall properly
				  plug and abandon the well.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.12 - BLOWOUT PREVENTION

Current through Register Vol. 35, No. 13, July 16, 2024
(See Subsection B of 19.15.10 NMAC also)
A. The operator shall install and maintain
				blowout preventers in good working order on drilling rigs operating in areas of
				known high pressures at or above the projected depth of the well and in areas
				where pressures that will be encountered are unknown, and on workover rigs
				working on wells in which high pressures are known to exist.
B. The operator shall install and maintain
				blowout preventers in good working order on drilling rigs and workover rigs
				operating within the corporate limits of a city, town or village, or within
				1320 feet of habitation, a school or a church, wherever located.
C. An operator, when filing form C-101 or
				form C-103 for an operation requiring blowout prevention equipment in
				accordance with Subsections A and B of 19.15.16.12 NMAC, shall submit a
				proposed blowout prevention program for the well. The district supervisor may
				modify the program as submitted if, in the district supervisor's judgment,
				modification is necessary.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.13 - PULLING OUTSIDE STRINGS OF CASING

Current through Register Vol. 35, No. 13, July 16, 2024
In pulling outside strings of casing from an oil or gas well,
				  the operator shall keep and leave the space outside the casing left in the hole
				  full of mud-laden fluid or cement of adequate specific gravity to seal off
				  fresh and salt water strata and strata bearing oil or gas not
				  producing.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.14 - DEVIATION TESTS AND WELLBORE SURVEYS; VERTICAL, DEVIATED AND DIRECTIONAL WELLS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Vertical and deviated well bores.
(1)
Deviation tests required.
An
				operator shall test a vertical or deviated well that is drilled or deepened at
				reasonably frequent intervals to determine the deviation from the vertical. The
				operator shall make the tests at least once each 500 feet or at the first bit
				change succeeding 500 feet. The operator shall file with the division along
				with its form C-104 a tabulation of deviation tests run that is sworn to and
				notarized.
(2)
Excessive
				deviation.
When the deviation averages more than five degrees in a
				500-foot interval, the operator shall include the calculations of the hole's
				maximum possible horizontal displacement. When the maximum possible horizontal
				displacement exceeds the distance to the appropriate unit's nearest outer
				boundary line the operator shall run a directional survey to establish the
				location of the well's completed interval.
(3)
Unorthodox well locations.
If the results of the directional survey of a vertical or deviated well
				indicate that the completed interval is more than 50 feet from the approved
				surface location and closer than the minimum setback requirements to the
				applicable unit's outer boundary, then the well is considered unorthodox. To
				obtain authority to produce the well, the operator shall file an application
				with the division's Santa Fe office, and shall follow the process outlined in
				Subsection C of
				19.15.15.13
				NMAC to obtain approval of the unorthodox well location.
(4)
Directional survey
				requirements.
Upon the director's request, the operator shall
				directionally survey a vertical or deviated well. The operator shall file
				directional surveys run on a well, in division-approved format, with the
				division upon the well's completion. The division shall not approve a form
				C-104 for the well until the operator has filed the directional
				surveys.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 16 - DRILLING AND PRODUCTION › Section 19.15.16.15 - HORIZONTAL WELLS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
General provisions.
(1) An
				operator shall not file an application for permit to drill nor commence the
				drilling of a horizontal oil or gas well until the operator has either:
(a) received the consent of at least one
				working interest owner or unleased mineral interest owner of each tract (in the
				target pool or formation) in which any part of the horizontal oil or gas well's
				completed interval will be located; or
(b) obtained a compulsory pooling order from
				the division for an appropriate horizontal spacing unit.