New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 27 - VENTING AND FLARING OF NATURAL GAS › Section 19.15.27.9 - STATEWIDE NATURAL GAS CAPTURE REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Statewide natural gas capture
				requirements.
Commencing April 1, 2022, the operator shall reduce the
				annual volume of vented and flared natural gas in order to capture no less than
				ninety-eight percent of the natural gas produced from its wells in each of two
				reporting areas, one north and one south of the Township 10 North line, by
				December 31, 2026. The division shall calculate and publish on the division's
				website each operator's baseline natural gas capture rate based on the
				operator's fourth quarter 2021 and first quarter 2022 quarterly reports as per
				Paragraph (2) of Subsection G of 19.15.27.8 NMAC. In each calendar year between
				January 1, 2022 and December 31, 2026, the operator shall increase its annual
				percentage of natural gas captured in each reporting area in which it operates
				based on the following formula: (baseline loss rate minus two percent) divided
				by five, except that for 2022 only, an operator's percentage of natural gas
				captured shall not be less than seventy-five percent of the annual gas capture
				percentage increase (2022 baseline loss rate minus two percent divided by five
				times 0.75), and the balance shall be captured in 2023.
(1) The following table provides examples of
				the formula based on a range of baseline natural gas capture rates.
Baseline Natural Gas Capture Rate
Minimum
						  Required Annual Natural Gas Capture Percentage Increase
90-98%
0-1.6%
80-89%
>1.6-3.6%
70-79%
>3.6-5.6%
0-69%
>5.6-19.6%
(2)
				If the operator's baseline capture rate is less than sixty percent, the
				operator shall submit by the specified date to the division for approval a plan
				to meet the minimum required annual capture percentage increase.
(3) An operator's acquisition or saleof one
				or more wells from another operator shall not affect its annual natural gas
				capture requirements. No later 60 days following the acquisition or sale, the
				operator may file a written request to the division requesting to modify its
				gas capture percentage requirements for good cause based on its acquisition or
				sale. The division may approve, approve with conditions, or deny the request in
				its sole discretion.
(4) No later
				than March 30 following the reporting year, an operator that has not met its
				annual natural gas capture requirement for the previous year shall submit to
				the division a compliance plan demonstrating its ability to comply with its
				annual gas capture requirement for the current year. If the division
				determines, after a reasonable opportunity to meet with the operator, that the
				compliance plan does not demonstrate the operator's ability to comply with its
				annual gas capture requirement for the current year the operator's approved
				APDs for wells that have not been spud shall be suspended pending a division
				hearing to be held no later than 30 days after the determination. Nothing in
				this subparagraph shall prevent the division from taking any other action
				authorized by law for the operator's failure to comply with its annual gas
				capture requirement, including shutting in wells and assessing civil penalties.