Cases Scheduled for Commission Regular Meeting [rescheduled from 5-14-26]

Below is a preliminary list of cases scheduled to be heard at this OCC hearing. If you are an individual with a disability who is in need of a reader, amplifier, qualified sign language interpreter, or any other form of auxiliary aid or service to attend or participate in the hearing, please contact Sheila Apodaca at (505) 699-8358 or through the New Mexico Relay Network at 1-800-659-1779, no later than seven (7) business days prior to the hearing.

Case No. Description
1. 26060 request to reopen cases on grounds of 19.15.4.12 D to reopen cases 24674, 25137 24837, 22536, 24963 25233 and further request as motion for the joinder of the cases 24674, 25137 24837, 22536, 24963 25233 for being under
Rule 18 Joinder of Claims, the joinder of the mentioned cases that involve the same parties
in different pooled units of the same project areas that share the same legal actions or
transaction, as allowed under federal rules of civil procedure.
This enables efficient resolution of related matters.
2. 26053

This appeal concerns whether a groundwater-right holder whose agricultural operations depend on
the aquifer underlying the township in which high-volume produced water disposal wells are proposed
may be categorically excluded from the permitting process without any opportunity to present evidence
regarding its protectable groundwater interests.
Desert Ram sought to intervene in proceedings involving four proposed saltwater disposal wells
that will inject large volumes of produced water, collectively up to 80,000 barrels per day, into shallow
formations, all in the same township where Desert Ram operates ranching and agricultural operations
dependent on groundwater.
The Hearing Examiner struck Desert Ram’s intervention on grounds that Desert Ram is not an
“affected person” within the Division’s notice radius and therefore lacks standing.
1
That ruling rests on three fundamental legal errors:
1. the Order collapses the Division’s notice provisions into a categorical standing rule not
contained in the Division’s regulations;
2. the Order resolves disputed factual issues regarding Desert Ram’s groundwater interests
without permitting any evidentiary record; and
3. the Order effectively requires Desert Ram to prove hydrogeologic connectivity and subsurface
impact before being allowed to participate in the proceeding designed to evaluate those
technical questions.
Each of these errors independently warrants reversal of the standing determination.
After issuance of the Order, Desert Ram submitted sworn evidence identifying its groundwater
wells and water rights and requested a limited evidentiary hearing on standing, but the Hearing Examiner
declined to allow any factual development on the issue. The Commission should reverse the Order or, at
minimum, allow a limited evidentiary hearing so that the standing question may be resolved based on a
complete factual record.
3. 26082 This appeal concerns whether an active same-formation saltwater disposal operator may be categorically excluded from participation in disposal-well proceedings without any opportunity to present evidence regarding formation-level pressure constraints, cumulative injection burden, and resulting impacts on its existing operations. Pilot Water Solutions SWD, LLC sought to participate in proceedings involving four proposed high-volume saltwater disposal wells targeting the same Delaware Mountain Group (“DMG”) formation in which Pilot actively operates and has documented reservoir-pressure constraints. Pilot alleged that approval of the proposed wells could adversely affect its existing disposal operations through pressure communication, reduced injection capacity, operational interference, and related regulatory consequences.

The Hearing Examiner struck Pilot’s participation and denied reconsideration on the ground that Pilot is not an “affected person” entitled to mandatory notice and lacks a sufficient interest under the Division’s rules. Pilot contends that ruling rests on multiple legal errors warranting reversal, including: (1) conflating the Division’s notice radius with a categorical bar to participation not contained in the rules; (2) failing to apply the independent intervention standard in 19.15.4.11(C) NMAC, which permits participation where an intervenor’s participation will contribute substantially to the prevention of waste, protection of correlative rights, or protection of public health or the environment; and (3) resolving disputed formation-specific factual issues against Pilot on a paper record without allowing any evidentiary development.

After issuance of the strike ruling, Pilot submitted a motion for reconsideration supported by sworn statements and regulatory records showing that Pilot operates in the same DMG formation, that Ross SWD 5 experienced a prolonged shut-in associated with elevated reservoir pressure, that Pilot’s injection authority was later reduced by regulatory amendment, and that Pilot’s participation would materially assist the agency’s evaluation of cumulative disposal impacts in the shared formation. The Hearing Examiner nevertheless declined to permit any factual development and left Pilot excluded from the proceedings.

The Commission should reverse the denial of Pilot’s participation and permit Pilot to appear as a party in the underlying proceedings. At minimum, the Commission should order a limited evidentiary hearing so that the participation question may be resolved on a complete factual record rather than on an incomplete and disputed paper submission.

4. 25875 APPLICATION OF OIL CONSERVATION
DIVISION TO ADOPT 19.15.41, 19.15.42, and
19.15.43 NMAC; STATEWIDE
5. 24683 Application for Rulemaking, to amend 19.15.2, 19.15.2, 19.15.5, 19.15.8, 19.15.9, and 19.15.25 NMAC
6. 25694 American written application involving case no 25166 to reopen and de novo hearing before the commission and stay of division orders.
7. 25695 Written application for de novo hearing and emergency stay of division order in case no 25496 and order no r-23989
8. 25696 Written application for de novo hearing and emergency stay of division order in case no 25495 and order no r-23977
9. 23614 Application of Goodnight Midstream Permian, LLC for Approval of a Saltwater Disposal Well, Lea County, New Mexico. Applicant in the above-styled cause seeks an order authorizing it to drill and operate an injection well for purposes of disposing produced salt water to be named the Doc Gooden SWD #1 Well (API No. pending), which will be located 1,596 feet from the south line and 1,334 feet from the east line (Unit J) in Section 3, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. Injection will be into the San Andres formation [SWD; San Andres (Pool Code 96121)] between approximately 4,200 feet and 4,900 feet below the ground through a perforated completion. Disposal fluid will be produced water from producing oil and gas wells in the area. Estimated average surface injection pressure is expected to be approximately 537 psi. The maximum surface injection pressure will be 840 psi. The subject well will be located approximately 7 miles northwest of Eunice, N.M.
10. 23615 Application of Goodnight Midstream Permian, LLC for Approval of a Saltwater Disposal Well, Lea County, New Mexico. Applicant in the above-styled cause seeks an order authorizing it to drill and operate an injection well for purposes of disposing produced salt water to be named the Hernandez SWD #1 Well (API No. pending), which will be located 326 feet from the south line and 793 feet from the east line (Unit P) in Section 10, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. Injection will be into the San Andres formation [SWD; San Andres (Pool Code 96121)] between approximately 4,200 feet and 5,300 feet below the ground through a perforated completion. Disposal fluid will be produced water from producing oil and gas wells in the area. Estimated average surface injection pressure is expected to be approximately 537 psi. The maximum surface injection pressure will be 840 psi. The subject well will be located approximately 7 miles northwest of Eunice, N.M.
11. 23616 Application of Goodnight Midstream Permian, LLC for Approval of a Saltwater Disposal Well, Lea County, New Mexico. Applicant in the above-styled cause seeks an order authorizing it to drill and operate an injection well for purposes of disposing produced salt water to be named the Hodges SWD #1 Well (API No. pending), which will be located 2,833 feet from the north line and 1,620 feet from the west line (Lot 11) in Section 4, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. Injection will be into the San Andres formation [SWD; San Andres (Pool Code 96121)] between approximately 4,100 feet and 5,200 feet below the ground through a perforated completion. Disposal fluid will be produced water from producing oil and gas wells in the area. Estimated average surface injection pressure is expected to be approximately 500 psi. The maximum surface injection pressure will be 820 psi. The subject well will be located approximately 10 miles northwest of Eunice, N.M.
12. 23617 Application of Goodnight Midstream Permian, LLC for Approval of a Salt Water Disposal Well, Lea County, New Mexico. Applicant in the above-styled cause seeks an order authorizing it to drill and operate an injection well for purposes of disposing produced salt water to be named the Seaver SWD #1 Well (API No. pending), which will be located 1,809 feet from the south line and 1,428 feet from the west line (Unit K) in Section 10, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. Injection will be into the San Andres formation [SWD; San Andres (Pool Code 96121)] between approximately 4,200 feet and 5,300 feet below the ground through a perforated completion. Disposal fluid will be produced water from producing oil and gas wells in the area. Estimated average surface injection pressure is expected to be approximately 537 psi. The maximum surface injection pressure will be 840 psi. The subject well will be located approximately 7 miles northwest of Eunice, N.M.
13. 24018 Application of Empire New Mexico LLC to Revoke the Injection Authority Granted Under Order No. R-22026 for the Andre Dawson SWD #001 Operated by Goodnight Midstream Permian LLC, Lea County, New Mexico. Applicant in the above-styled cause seeks an order revoking the injection authority granted by Order No. R-22026, SWD-2403, issued in Case No. 21569 on February 7, 2022, to dispose of produced water in the Andre Dawson SWD #1 well, API# 30-025-50634 (“Well”), a produced water disposal well located 1105’ FSL and 244’ FEL (Unit P) of Section 17, Township 21 South, Range 36 East, in Lea County, NM. The approved injection zone is the San Andres formation, an interval which is potentially productive of hydrocarbons since the advent of horizontal drilling. The Well is located approximately 6.5 miles Northwest of Eunice City, New Mexico
14. 24019 Application of Empire New Mexico LLC to Revoke the Injection Authority Granted Under Order No. R-22027 for the Ernie Banks SWD #001 Operated by Goodnight Midstream Permian LLC, Lea County, New Mexico. Applicant in the above-styled cause seeks an order revoking the injection authority granted by Order No. R-22027, issued in Case No. 21570 on February 7, 2022, to dispose of produced water in the Ernie Banks SWD #1 well, API# 30-025-50633 (“Well”), a produced water disposal well located 395 feet from the North line and 1203 feet from the West line (Unit D) of Section 17, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. The approved injection zone is the San Andres formation, an interval which is potentially productive of hydrocarbons since the advent of horizontal drilling. The Well is located approximately 8.4 miles Northwest of Eunice City, New Mexico.
15. 24020 Application of Empire New Mexico LLC to Revoke the Injection Authority Granted Under Administrative Order No. SWD-2307 for the Ryno SWD #001 f/k/a Snyder SWD Well Operated by Goodnight Midstream Permian LLC, Lea County, New Mexico. Applicant in the above-styled cause seeks an order revoking the injection authority granted by Administrative Order No. SWD-2307, issued on November 2, 2017, to dispose of produced water in the Ryno SWD #001 f/k/a Snyder SWD Well No. 1, API# 30-025-43901 (“Well”), a produced water disposal well located 1450 feet from the North line and 708 feet from the East line (Unit H) of Section 17, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. The approved injection zone is the San Andres formation, an interval which is potentially productive of hydrocarbons since the advent of horizontal drilling. The Well is located approximately 7.7 miles Northwest of Eunice City, New Mexico.
16. 24025 Application of Empire New Mexico LLC to Revoke the Injection Authority Granted Under Order No. R-21190 for the Sosa SA 17 SWD Well No. 2 Operated by Goodnight Midstream Permian LLC, Lea County, New Mexico. Applicant in the above-styled cause seeks an order revoking the injection authority granted by Order No. R-21190, issued in Case No. 20721 on March 2, 2020, to dispose of produced water in the Sosa SA 17 SWD Well No. 2, API# 30-025-47947 (“Well”), a produced water disposal well located 470 feet from the South line and 1815 feet from the West line (Unit N) of Section 17, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. The approved injection zone is the San Andres formation, an interval which is potentially productive of hydrocarbons since the advent of horizontal drilling. The Well is located approximately 7.3 miles Northwest of Eunice City, New Mexico.
17. 23775 Application of Goodnight Midstream Permian, LLC to Amend Order No. R-22026/SWD-2403 to Increase the Approved Injection Rate in its Andre Dawson SWD #1, Lea County, New Mexico. Applicant in the above-styled cause seeks an order authorizing it to increase the rate of injection through its Andre Dawson SWD # 1 (API 30-025-50634) from 25,000 to 40,000 barrels per day. The well is located 1,105 feet from the South line and 244 feet from the East line (Unit P) of Section 17, Township 21 South, Range 36 East, NMPM, Lea County, New Mexico. All other conditions of the approved permit are proposed to remain the same. The well is approved as a produced water disposal well under Order No. R-2206 and SWD-2403 to inject into the San Andres formation through a perforated interval from approximately 4,287 feet to 5,590 feet below the surface at maximum surface injection pressure of 857 psi. The subject well is located approximately 8 miles west of Eunice, N.M.
18. 24123 APPLICATION OF GOODNIGHT PERMIAN MIDSTREAM, LLC FOR APPROVAL OF A SALTWATER DISPOSAL WELL, LEA COUNTY, NEW MEXICO. Goodnight Permian Midstream, LLC, a party adversely affected by Order No. R-22869-A, and hereby applies for a hearing de novo before the full Commission, pursuant to NMSA 1978, Section 70-2-13.
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