PRELIMINARY DOCKET:
OCD Special Hearing for August 20, 2024
Applications for hearing shall be filed at least thirty (30) days in advance of the hearing date.
A party who intends to present evidence shall file a pre-hearing statement no later than the close of
business on the Thursday prior to the hearing date and serve a copy on the other parties, if any. The
hearing examiner will dismiss the application if the applicant does not file and serve a pre-hearing
statement as specified above. A party desiring to use projection equipment at the hearing shall contact
Florene Davidson, OCD Clerk, no later than seven (7) business days prior to the hearing.
NOTICE: The hearing examiner may call the following cases in any order in his or her discretion.
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1.
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24544
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Application of Avant Natural Resources, LLC for Compulsory and Approving a Non-Standard Horizontal Spacing Unit and Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order from the Division: (1) approving a 1,280-acre, more or less, non-standard horizontal spacing and proration unit composed of all of Sections 25 and 36, Township 18 South, Range 33 East, N.M.P.M.; and (2) pooling all uncommitted mineral interests in the Bone Spring Formation, designated as an oil pool, underlying said unit. The proposed wells to be dedicated to the horizontal spacing unit are Royal Oak 25 Fed Com #501H, which is an oil well that will be horizontally drilled from a surface location in the NW/4NW/4 (Unit D) of Section 25 to a bottom hole location in the Bone Spring Formation in the SW/4SW/4 (Unit M) of Section 36; Royal Oak 25 Fed Com #502H, which is an oil well that will be horizontally drilled from a surface location in the NW/4NW/4 (Unit D) of Section 25 to a bottom hole location in the Bone Spring Formation in the SE/4SW/4 (Unit N) of Section 36; Royal Oak 25 Fed Com #301H and Royal Oak 25 Fed Com #601H, which are oil wells that will be horizontally drilled from a surface location in the NE/4NW/4 (Unit C) of Section 25 to a bottom hole location in the Bone Spring Formation in the SW/4SW/4 (Unit M) of Section 36; Royal Oak 25 Fed Com #302 and Royal Oak 25 Fed Com #602H, which are oil wells that will be horizontally drilled from a surface location in the NE/4NW/4 (Unit C) of Section 25 to a bottom hole location in the Bone Spring Formation in the SE/4SW/4 (Unit N) of Section 36; Royal Oak 25 Fed Com #303H, Royal Oak 25 Fed Com #503H, and Royal Oak 25 Fed Com #603H, which are oil wells that will be horizontally drilled from a surface location in in the NW/4NE/4 (Unit B) of Section 25 to a bottom hole location in the Bone Spring Formation in the SE/4SW/4 (Unit O) of Section 36; and Royal Oak 25 Fed Com #304H, Royal Oak 25 Fed Com #504H, and Royal Oak 25 Fed Com #604H, which are oil wells that will be horizontally drilled from a surface location in in the NW/4NE/4 (Unit B) of Section 25 to a bottom hole location in the Bone Spring Formation in the SE/4SE/4 (Unit P) of Section 36. The wells are orthodox in location, and the take points and laterals comply with Statewide Rules for setbacks. Also to be considered will be the cost of drilling and completing the wells and the allocation of the costs thereof; actual operating costs and charges for supervision; the designation of the Applicant as Operator of the wells and unit; and a 200% charge for the risk involved in drilling and completing the wells. The wells and lands are located approximately 28 miles west from Hobbs, New Mexico.
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