Current through Register Vol. 35, No. 6, March 26, 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.
B.
Non-standard spacing
units. An operator shall not produce a well that does not have the
required amount of acreage dedicated to it for the pool or formation in which
it is completed until the division has formed and dedicated a standard spacing
unit for the well or approved a non-standard spacing unit.
(1) Division district offices may approve
non-standard spacing units without notice when the unorthodox size or shape is
necessitated by a variation in the legal subdivision of the United States
public land surveys or consists of an entire governmental section, and the
non-standard spacing unit is not less than seventy percent or more than one
hundred-thirty percent of a standard spacing unit. The operator shall obtain
division approval of form C-102 showing the proposed non-standard spacing unit
and the acreage contained in the unit.
(2) The director may approve administratively
an application for non-standard spacing units after notice and opportunity for
hearing when the unorthodox size or shape is necessitated by a variation in the
legal subdivision of the United States public land surveys or the following
facts exist:
(a) the non-standard spacing
unit consists of a single quarter-quarter section or lot or quarter-quarter
sections or lots joined by a common side; and
(b) the non-standard spacing unit lies wholly
within a single quarter section if the well is completed in a pool or formation
for which 40, 80 or 160 acres is the standard spacing unit size; a single half
section if the well is completed in a pool or formation for which 320 acres is
the standard spacing unit size; or a single section if the well is completed in
a pool or formation for which 640 acres is the standard spacing unit
size.
(3) An operator
shall file an application for administrative approval of a non-standard spacing
unit pursuant to Paragraph (2) of Subsection B of 19.15.15.11 NMAC or Paragraph
(5) of Subsection B of
19.15.16.15
NMAC, with the division's Santa Fe office that is accompanied by:
(a) a plat showing the spacing unit and an
applicable standard spacing unit for that pool or formation, the proposed well
dedications and all adjoining spacing units;
(b) a list of affected persons entitled to
notice of the application; and
(c)
a statement discussing the reasons for the formation of the non-standard
spacing unit.
(4) The
applicant shall submit a statement attesting that the applicant, on or before
the date the applicant submitted the application to the division, notified the
affected persons identified on the list described in Paragraph (3) of
Subsection B of 19.15.15.11 NMAC by sending a copy of the application,
including a copy of the plat described in Paragraph (3) of Subsection B of
19.15.15.11 NMAC, by certified mail, return receipt requested, advising them
that if they have an objection they must file the objection in writing with the
division within 20 days from the date the division receives the application.
The director may approve the application without hearing upon receipt of
waivers from all the notified persons or if no person has filed an objection
within the 20-day period.
(5) The
director may set for hearing an application for administrative
approval.
C.
Exceptions to number of wells per spacing unit. The director may
permit exceptions to 19.15.15 NMAC or special pool orders concerning the number
of wells allowed per spacing unit only after notice and opportunity for
hearing. An applicant for an exception shall notify all affected persons in
adjoining spacing units in the same pool or in adjoining tracts not included in
such spacing units.
