Opinion ID: 1122635
Heading Depth: 1
Heading Rank: 5

Heading: Reimbursement to HEYCO for Costs and Risk Charges.

Text: The application before the Commission not only requested that the designated mineral interests be pooled, but also that HEYCO be named operator and be entitled to recover the pro rata share of well costs and compensation for risk out of production from any nonconsenting working interest owner. Reimbursement of costs and risk charges is authorized by NMSA 1978, Section 70-2-17, which mandates that provision be made for payment from production of well costs for any owner or owners who elects not to pay his proportionate share in advance. This section further allows the inclusion of a charge for the risk involved in the drilling of such well, which charge shall not exceed 200% of the nonconsenting working interest owner's or owners' pro rata share of the cost of drilling and completing the well. The granting or refusal to grant forced pooling of multiple zones with an election to participate in less than all zones, the amount of costs to be reimbursed to the operator, and the percentage risk charge to be assessed, if any, are determinations to be made by the Commission on a case-to-case basis and upon the particular facts in each case. Based upon the record in this case, we find that there was substantial evidence to support the findings made and conclusions reached by the Commission, and that the Commission's Order is not arbitrary, capricious, or contrary to law. The judgment of the district court is reversed. The order of the Commission is affirmed. IT IS SO ORDERED. RIORDAN and STOWERS, JJ., concur.