OCD Permitting

PRELIMINARY DOCKET: Special Examiner's Hearing set for August 26, 2025

For hearings by affidavit: presenting parties are required to submit a pre-hearing statement no later than the Thursday before the hearing. The pre-hearing statement shall include: 1) a list of disputed facts and issues; 2) identification of witnesses and their qualifications; and 3) all exhibits and written testimony a party intends to enter into evidence at the hearing and a full narrative for each.

For contested matters: pre-hearing statements shall be filed no later than 9:00 a.m., 4 business days prior to the hearing and in addition to the requirements of 19.15.4.13.B(1) NMAC, shall include: all evidentiary exhibits, documents, affidavits, and full-written testimony of any witness a party offers at the hearing. Exhibits must be sequentially marked on every page.

Failure to timely file a complete pre-hearing statement may cause the Hearing Examiner to continue the hearing and/or impose sanctions up to and including the exclusion of late-filed evidence. Evidentiary objections must be filed no later than 48 hours before the hearing. Rulings on the objections will be addressed as a preliminary matter when the case is called.

If you are an individual with a disability who needs a reader, amplifier, qualified sign language interpreter, or other form of auxiliary aid or service to attend or participate in a hearing, contact Freya.Tschantz@emnrd.nm.gov, or the New Mexico Relay Network at 1-800-659-1779, no later than 10 days prior to the hearing.

NOTICE: The hearing examiner may call the following cases in any order at their discretion.

Case No. Description
1. 25321 Application of 3R Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted interests in the Wolfcamp formation underlying an 800-acre, more or less, standard horizonal spacing unit comprised of N/2 of Sections 2 and 3 and the NE/4 of Section 4, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 701H well (“Well”), which will be drilled from a surface hole location in the SW/4 NE/4 (Unit G) of Section 4 to a bottom hole location in the NE/4 NE/4 (Unit A) of Section 2. The completed interval of the Well will be orthodox. Also to be considered will be the cost of drilling and completing the Well and the allocation of the costs, the designation of Applicant as the operator of the Well, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 7 miles East of Whites City, New Mexico.
2. 25323 Application of 3R Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted interests in the Wolfcamp formation 640-acre, more or less, standard horizonal spacing unit comprised of N/2 of Sections 34 and 35, Township 24 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the McMuffin 34 35 Fed Com 701H well (“Well”), which will be drilled from a surface hole location in the NE/4 NE/4 (Unit A) of Section 33 to a bottom hole location in the NE/4 NE/4 (Unit A) of Section 35. The completed interval of the Well will be orthodox. Also to be considered will be the cost of drilling and completing the Well and the allocation of the costs, the designation of Applicant as the operator of the Well, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 7 miles East of Whites City, New Mexico.
3. 25324 Application of 3R Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted interests in the Wolfcamp formation 640-acre, more or less, standard horizonal spacing unit comprised of S/2 of Sections 34 and 35, Township 24 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the McMuffin 34 35 Fed Com 703H well (“Well”), which will be drilled from a surface hole location in the SE/4 SE/4 (Unit P) of Section 33 to a bottom hole location in the NE/4 SE/4 (Unit I) of Section 35. The completed interval of the Well will be orthodox. Also to be considered will be the cost of drilling and completing the Well and the allocation of the costs, the designation of Applicant as the operator of the Well, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 7 miles East of Whites City, New Mexico.
4. 25376 Application of Spur Energy Partners LLC for Compulsory Pooling and Approval of Overlapping Spacing Unit, Eddy County, New Mexico. Applicant seeks an order pooling all uncommitted interests from approximately 3,935’ MD to 5,110’ MD, underlying a 320-acre, more or less, standard, overlapping horizontal spacing unit comprised of the S/2 of Section 29, Township 17 South, Range 28 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the following wells (“Wells”): Smithdale 29 Federal Com 50H well (API No. 30-015-56423), which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 30 to a bottom hole location in the NE/4 SE/4 (Unit I) of Section 29; Smithdale 29 Federal Com 70H well (API No. 30-015-56424), which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 30 to a bottom hole location in the NE/4 SE/4 (Unit I) of Section 29; Smithdale 29 Federal Com 71H well (API No. 30-015-56425), which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 30 to a bottom hole location in the SE/4 SE/4 (Unit P) of Section 29; Smithdale 29 Federal Com 90H well (API No. 30-015-56427), which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 30 to a bottom hole location in the NE/4 SE/4 (Unit I) of Section 29; and Smithdale 29 Federal Com 91H well (API No. 30-015-56428), which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 30 to a bottom hole location in the SE/4 SE/4 (Unit P) of Section 29. The completed intervals of the Wells will be orthodox. The completed interval of the Smithdale 29 Federal Com 50H well will be located within 330’ of the quarter-quarter section line separating the N/2 S/2 and the S/2 S/2 of Section 29 to allow for the creation of a 320-acre standard horizontal spacing unit. Applicant seeks only to pool those uncommitted interests from the top of the Blinebry at a stratigraphic equivalent depth of approximately 3,935’ MD, as found in the Schlumberger Outlaw State #12 (API No. 30-015-42562) Compensated Neutron LithoDensity log, to 5,110’ MD. The Wells partially overlap with the spacing units for the following wells, which produce from the Artesia; Glorieta-Yeso (O) pool (Code 96830): Williams A Federal #002Q (API No. 30-015-32459); Williams A Federal #001Z (API No. 30-015-32554); Williams A Federal #004T (API No. 30-015-33130); Williams A Federal #005 (API No. 30-015-33232); Red Lake 29 I State #001 (API No. 30-015-33579); Red Lake 29 I State #002 (API No. 30-015-34003); Williams A Federal #006 (API No. 30-015-34200); Williams A Federal #003 (API No. 30-015-34614); Williams A Federal #007 (API No. 30-015-36512); Williams A Federal #008 (API No. 30-015-36513); Williams A Federal #010 (API No. 30-015-40480); Williams A Federal #012 (API No. 30-015-41890); Williams A Federal #014 (API No. 30-015-41891); Williams A Federal #015 (API No. 30-015-41892); Williams A Federal #011 (API No. 30-015-41983); Williams A Federal #016 (API No. 30-015-42116); Williams A Federal #013 (API No. 30-015-42303); Outlaw State #002 (API No. 30-015-42554); Outlaw State #005 (API No. 30-015-42555); Outlaw State #006 (API No. 30-015-42556); Outlaw State #007 (API No. 30-015-42557); Outlaw State #008 (API No. 30-015-42558); Outlaw State #009 (API No. 30-015-42559); Outlaw State #010 (API No. 30-015-42560); Outlaw State #011 (API No. 30-015-42561); Outlaw State #012 (API No. 30-015-42562); Outlaw State #001 (API No. 30-015-42563); Outlaw State #003 (API No. 30-015-42564); and Outlaw State #004 (API No. 30-015-42565). Also to be considered will be the cost of drilling and completing the Wells, the allocation of the costs, the designation of Applicant as operator of the Wells and the Unit, and a 200% charge for the risk involved in drilling and completing the Wells. The Wells are located approximately 12.5 miles east-southeast of Artesia, New Mexico.
5. 25499 Application of BTA Oil Producers, LLC to Expand the Grama Ridge; Bone Springs, West Pool (Code 28432), Lea County, New Mexico. BTA Oil Producers, LLC seeks to expand the Grama Ridge; Bone Springs, West Pool (Code 28432) to include all of Sections 9 and 16, Township 22 South, Range 34 East, Lea County, New Mexico. The New Mexico State Land Office approved Applicant’s Communitization Agreement for the Grama 8817 16-9 Federal Com #004H well (API 30-025-43870), which communitized the Bone Spring formation underlying the W/2 E/2 and E/2 W/2 of Sections 9 and 16, Township 22 South, Range 34 East, Lea County, New Mexico (“Communitized Area”). The Communitized Area includes two (2) pools – the Grama Ridge; Bone Springs, West Pool (Code 28432) and the WC-025 G-06 S223421L; Bone Spring Pool (Code 97922). Applicant proposes to expand the limits of the Grama Ridge; Bone Springs, West Pool (Code 28432) to include all of Sections 9 and 16 so that it encompasses the entire Communitized Area. The Communitized Area is located approximately 18 miles East of Eunice, New Mexico.
6. 25480 Application of Frontier Field Services, LLC for Authorization to Inject, Eddy County, New Mexico. Frontier Field Services, LLC (“Frontier”) (OGRID No. 221115) seeks authorization to inject treated acid gas (“TAG”) from Frontier’s Kings Landing Gas Plant (“Plant”) into the proposed Kings Landing AGI No. 1 well and Kings Landing AGI No. 2 well (“Wells”), which will be located in Section 15, Township 19 South, Range 31 East, Eddy County, New Mexico. The Wells will be drilled as vertical wells: Kings Landing AGI No. 1 will have a surface location approximately 2,176’ from the north line (FNL) and 384’ from the west line (FWL) of Section 15; Kings Landing AGI No. 2 will have a surface location approximately 1,876’ FNL and 735’ FWL of Section 15. The Wells will inject TAG into the Siluro-Devonian formations, including the Thirtyone, Wristen, and Fusselman groups, plus the Montoya Formation, at depths of approximately 13,215’ to 14,415’ in the Kings Landing AGI No. 1 well, and 13,240’ to 14,440’ in the Kings Landing AGI No. 2 well. The Wells are designed to each inject up to 20 million cubic feet per day (MMcf/D) of TAG. Frontier is requesting a combined allowable maximum daily injection rate of 20 MMcf/D to be shared between the two wells. The Wells’ maximum surface injection pressure will not exceed 3,991 pounds per square inch gauge. The Wells are located approximately 12.5 miles southeast of Loco Hills, New Mexico.
7. 25507 Application of Cimarex Energy Co. of Colorado for compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit, Eddy County, New Mexico. Applicant seeks an order from the Division pooling all uncommitted interests within a 640-acre, more or less, Wolfcamp horizontal spacing unit comprised of the S/2 of Sections 3 and 4, Township 25 South, Range 26 East, NMPM, Eddy County, New Mexico. This spacing unit will be dedicated to the following wells: Ringer 4-3 Federal Com 5H and Ringer 4-3 Federal Com 6H wells with proposed surface hole locations in the SW/4 NW/4 (Unit E) of Section 4 and proposed bottom hole locations in the NE/4 SE/4 (Unit I) of Section 3; and Ringer 4-3 Federal Com 7H and Ringer 4-3 Federal Com 8H wells with proposed surface hole locations in the SW/4 NW/4 (Unit E) of Section 4 and proposed bottom hole locations in the SE/4 SE/4 (Unit P) of Section 3. The wells will be located within the Purple Sage Wolfcamp Gas Pool (Code 98220), which is subject to special pool rules that establish 330-foot setback requirements. Applicant will administratively apply for non-standard location approvals for the wells’ first and last take points. Applicant also seeks, to the extent necessary, approval of an overlapping spacing unit. The proposed unit will partially overlap with an existing unit dedicated to the Ringer Federal Com 12H (API #30-015-39760), operated by Coterra Operating Co. and producing from the Purple Sage; Wolfcamp Pool, dedicated to the S/2 of Section 3, Township 25S, Range 26 East. Also to be considered will be the cost of drilling, completing, and equipping said wells, the allocation of these costs as well as the actual operating costs and charges for supervision while drilling and after completion, designation of Cimarex Energy Co. of Colorado as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 4.1 miles from Whites City, New Mexico.
8. 25506 Application of Cimarex Energy Co. of Colorado for compulsory pooling, Eddy County, New Mexico. Applicant seeks an order from the Division pooling all overriding royalty interest owners within a 640-acre, more or less, Wolfcamp horizontal spacing unit comprised of the N/2 of Sections 3 and 4, Township 25 South, Range 26 East, NMPM, Eddy County, New Mexico. This spacing unit will be dedicated to the following wells: Ringer 4-3 Federal Com 1H and Ringer 4-3 Federal Com 2H wells with proposed surface hole locations in the SW/4 NW/4 (Unit E) of Section 4 and proposed bottom hole locations in in the NE/4 NE/4 (Unit A) of Section 3, Township 25 South, Range 26; Ringer 4-3 Federal Com 3H and Ringer 4-3 Federal Com 4H wells with proposed surface hole locations in the SW/4 NW/4 (Unit E) of Section 4 and proposed bottom hole locations in in the SE/4 NE/4 (Unit H) of Section 3, Township 25 South, Range 26. The wells will be located within the Purple Sage Wolfcamp Gas Pool (Code 98220), which is subject to special pool rules that establish 330-foot setback requirements. Applicant will administratively apply for non-standard location approvals for the wells’ first and last take points. Also to be considered will be the designation of Cimarex Energy Co. of Colorado as operator of the wells. Said area is located approximately 4.1 miles from Whites City, New Mexico.
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