New Mexico Administrative Code
Title 19 - NATURAL RESOURCES AND WILDLIFE
Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION
Part 100 - RELATING TO OIL AND GAS LEASES
Section 19.2.100.53 - COMMINGLING AND OFF-LEASE STORAGE OF OIL AND GAS ON STATE TRUST LANDS
Universal Citation: 19 NM Admin Code 19.2.100.53
Current through Register Vol. 35, No. 18, September 24, 2024
A. Commingling prohibited: Unless approved pursuant to Subsection B of 19.2.100.53 NMAC, the commingling, confusion or the intercommunication of oil or gas production from any state well with any production from any other well, whether state or non-state, by the use of common tankage facilities or central delivery points, is strictly prohibited.
B. Commingling allowed - off-lease storage:
(1)
Commingling of oil and gas production, including downhole commingling, if
properly metered or allocated and accounted for, may be permitted within the
discretion of the commissioner only after the commissioner's receipt of a
written application containing the information specified in Subsection C of
19.2.100.53 NMAC and an application fee as set forth in the schedule of
fees.
(2) Off-lease storage of
production may be permitted if properly metered or allocated and accounted for,
within the discretion of the commissioner only after the commissioner's receipt
of a written application containing the information specified in Subsection C
of 19.2.100.53 NMAC and an application fee as set forth in the schedule of
fees.
C. Application for permission to commingle or off-lease store production. Applications for permission to commingle or off-lease store production shall be directed to the commissioner and shall include:
(1) formal
application stating the type of permission desired and the reasons therefor,
accompanied by an application fee as set forth in the schedule of
fees;
(2) plat showing the location
of leases, wells, flow lines, metering facilities and common tankage. All plats
and diagrams should differentiate between surface and underground
pipe;
(3) a list of the involved
leases arranged by their state land office lease number, their legal
description and including state beneficiaries;
(4) a designation of the pool from which each
well produces;
(5) an economic
analysis of proposed operation showing profit or loss to the state of New
Mexico;
(6) schematic diagram of
entire system from production manifold to pipeline connection showing position
of all components of flow stream;
(7) description of the operating sequence
explaining the complete operation;
(8) the applicant's proposal for allocating
or metering production so that all production is properly accounted for at the
well; and
(9) any other pertinent
data that will assist the commissioner in deciding upon the
application.
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