New Mexico - Oil Gas

摘要

This is an update regarding the recent changes to the horizontal well and project area regulations and cases at the New Mexico Oil Conservation Division (NMOCD). See N.M. Code R. §19.15.16. The new regulations pertaining to horizontal wells and project areas became effective February 15, 2012. Only time would tell how the NMOCD would implement these new regulations. The latest NMOCD orders for non-standard spacing and proration units and for compulsory pooling (Orders) have included the following language: Should the proposed well not be drilled and completed within 120 days after commencement thereof, then Ordering Paragraphs (1) and (2) (regarding establishment of non-standard spacing/project area and force pooling) shall be of no further effect, and the Unit created by this order shall terminate, unless operator appears before the Division Director and obtains an extension of the time for completion of the proposed well for good cause shown by satisfactory evidence.