New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 15 - OIL AND GAS › Part 21 - GAS PRORATION AND ALLOCATION › Section 19.15.21.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Acreage factor"
				means a GPU's acreage factor determined to the nearest hundredth of a unit by
				dividing the acreage assigned to the GPU by a number equal to the number of
				acres in a standard GPU for the pool. However, the acreage tolerance provided
				in Subparagraph (b) of Paragraph (1) of Subsection A of 19.15.8.21.12 NMAC
				shall apply.
B. "AD factor" means
				an acreage multiplied by the deliverability factor is calculated in pools in
				which acreage and deliverability are proration factors. The product obtained by
				multiplying the acreage factor by the calculated deliverability (expressed as
				MCF per day) for that GPU is known as the AD factor for that GPU. The AD factor
				is computed to the nearest whole unit.
C. "Allocation hearing" means a hearing the
				division holds twice each year to determine pool allocations for the ensuing
				allocation period.
D. "Allocation
				period" means a six-month period beginning at 7:00 a.m. April 1 and October 1
				of each year.
E. "Balancing date"
				means the date beginning at 7:00 a.m. April 1 of each year; the 12 months
				following this date is the gas proration period.
F. "Broker" means a third party who
				negotiates contracts for purchase and resale.
G. "Classification period" means a three
				month period beginning at 7:00 a.m. on April 1, July 1, October 1 and January 1
				of each year.
H. "Deliverability
				pressure" means the designated delivery pressure at which pipeline companies
				can accept gas from gas wells depending on the pipeline's capacity.
I. "Gas pool" means a pool that the division
				has designated as a gas pool after notice and hearing.
J. "Gas proration unit (GPU)" means the
				acreage allocated to a well, or in the case of an infill well or wells to a
				group of wells, for purposes of spacing and proration. A GPU may be either of a
				standard or nonstandard size as provided in 19.15.21 NMAC.
K. "Gas purchaser" means the purchaser (where
				the producer first exchanges ownership of the gas to the purchaser for an
				agreed value) of the gas from a gas well or GPU.
L. "Gas transporter" means a taker of gas,
				the party servicing the well meter or the party responsible for measuring the
				gas sold from the well or beneficially used off-lease. This could be at the
				wellhead, at any other point on the lease or at a division-authorized point
				where connection is made for gas transportation or utilization (other than is
				necessary for maintaining the well's producing ability). The gas transporter
				can be the gatherer, transporter, producer or a delegate of one of those
				parties. The gas transporter shall be identified on form C-115 and shall be
				responsible for creating and maintaining form C-111 as required under
				19.15.7.21 NMAC's provisions.
M.
				"Infill well" means an additional producing well on a GPU that serves as a
				companion well to an existing well on the GPU.
N. "Marginal GPU" means a proration unit that
				is incapable of producing or has not produced the non-marginal allowable based
				on pool allocation factors. Marginal GPUs do not accrue over or
				underproduction.
O. "Non-marginal
				GPU" means a proration unit receiving an allowable based upon pool allocation
				factors. Non-marginal proration units accrue over or underproduction.
P. "Overproduction" means the volume of gas
				produced on a GPU in a month greater than the assigned non-marginal allowable
				(does not include gas used in maintaining the GPU's wells' producing ability).
				Overproduction accumulates month to month during the proration
				period.
Q. "Prorated gas pool"
				means a gas pool in which, after notice and hearing, the division allocates
				production according to 19.15.21 NMAC and any applicable special pool
				orders.
R. "Proration period" means
				the 12-month period beginning April 1 of each year.
S. "Shadow allowable" means the gas volume
				calculated for a marginal GPU that is equal to the allowable assigned to a
				non-marginal GPU in the same pool of the same A (acreage) or A and AD (acreage
				deliverability) factors as the marginal GPU.
T. "Underproduction" means the volume of
				assigned non-marginal allowable not produced on a GPU. Underproduction
				accumulates month to month during the proration period.