OCD Permitting

PRELIMINARY DOCKET: Special Examiner's Hearing set for January 28, 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. 24941 Application of Read & Stevens, Inc. for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling all uncommitted interests in a portion of the Bone Spring formation, from the top of the Bone Spring formation to the base of the Second Bone Spring formation, underlying a standard 320-acre, more or less, horizontal well spacing unit comprised of the S/2 N/2 of Sections 14 and 15, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Slim Jim 14-15 Fed Com 122H and Slim Jim 14-15 Fed Com 123H wells, both to be horizontally drilled from a surface location in the SE/4 NE/4 (Unit H) of Section 14, with a first take point in the SE/4 NE/4 (Unit H) of Section 14, and a last take point in the SW/4 NW/4 (Unit E) of Section 15. Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Permian Resources Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 8.5 miles southwest of Maljamar, New Mexico.
2. 24942 Application of Read & Stevens, Inc. for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling all uncommitted interests in a portion of the Bone Spring formation, from the top of the Bone Spring formation to the base of the Second Bone Spring formation, underlying a standard 640-acre, more or less, horizontal well spacing unit comprised of the S/2 of Sections 14 and 15, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Slim Jim 14-15 Fed Com 124H and Slim Jim 14-15 Fed Com 125H wells, both to be horizontally drilled from a surface location in the NE/4 SE/4 (Unit I) of Section 14, with a first take point in the NE/4 SE/4 (Unit I) of Section 14, and a last take point in the NW/4 SW/4 (Unit L) of Section 15; and Slim Jim 14-15 Fed Com 126H well, to be horizontally drilled from a surface location in the NE/4 SE/4 (Unit I) of Section 14, with a first take point in the SE/4 SE/4 (Unit P) of Section 14, and a last take point in the SW/4 SW/4 (Unit M) of Section 15. Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Permian Resources Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 8.5 miles southwest of Maljamar, New Mexico.
3. 24994 Application of V-F Petroleum Inc. for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order from the Division pooling all uncommitted mineral interests in the Bone Spring formation, designated as an oil pool, underlying a standard 320-acre, more or less, spacing unit comprised of the S/2 S/2 of Sections 16 and 15, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico. The proposed wells to be dedicated to the horizontal spacing unit are the Rainier 16-15 Fed Com #221H Well, an oil well, to be horizontally drilled from a surface location in the NW/4 SW/4 (Unit L) of Section 16 to a bottom hole location in the SE/4 SE/4 (Unit P) of Section 15; and the Rainier 16-15 Fed Com #231H Well, an oil well, to be horizontally drilled from a surface location in the NW/4 SW/4 (Unit L) of Section 16 to a bottom hole location in the SE/4 SE/4 (Unit P) of Section 15. The proposed wells will be orthodox, and their take points and completed intervals will comply with the setback requirements under statewide Rules. 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 31 miles southeast of Artesia, New Mexico.
4. 24995 Application of V-F Petroleum Inc. for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order from the Division pooling all uncommitted mineral interests in the Bone Spring formation, designated as an oil pool, underlying a standard 320-acre, more or less, spacing unit comprised of the N/2 S/2 of Sections 16 and 15, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico. The proposed wells to be dedicated to the horizontal spacing unit are the Rainier 16-15 Fed Com #222H Well, an oil well, to be
horizontally drilled from a surface location in the NW/4 SW/4 (Unit L) of Section 16 to a bottom hole location in the NE/4 SE/4 (Unit I) of Section 15; and the Rainier 16-15 Fed Com #232H Well, an oil well, to be horizontally drilled from a surface location in the NW/4 SW/4 (Unit L) of
Section 16 to a bottom hole location in the NE/4 SE/4 (Unit I) of Section 15. The proposed wells will be orthodox, and their take points and completed intervals will comply with the setback requirements under statewide Rules. 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 31 miles southeast of Artesia, New Mexico.
5. 25116 Application of V-F Petroleum Inc. for Compulsory Pooling, Eddy County, New Mexico.
Applicant in the above-styled cause seeks an order from the Division pooling all uncommitted
mineral interests in the First and Second Bone Spring formations, designated as an oil pool, from
the top of the First Bone Spring formation, at an approximate depth of 6,048’ beneath the surface,
to the base of the Second Bone Spring formation, at an approximate depth of 8,913’ beneath the
surface, as shown in that certain Dual Lateralog, Micro Laterlog, Gamma Ray well log in the
Tamano 15 Fed Com #2 well (API # 30-015-33398), located in Sec. 15, Township 18 South, Rage
31 East, Eddy County, New Mexico, underlying a standard 320-acre, more or less, spacing unit
comprised of the S/2 N/2 of Sections 16 and 15, Township 18 South, Range 31 East, NMPM, Eddy
County, New Mexico. The proposed well to be dedicated to the horizontal spacing unit is the
Rainier 16-15 Fed Com #223H Well, an oil well, to be horizontally drilled from a surface location
in the NW/4 NW/4 (Unit D) of Section 16 to a bottom hole location in the SE/4 NE/4 (Unit H) of
Section 15. The proposed well will be orthodox, and its take points and completed interval will
comply with the setback requirements under statewide rules. 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 31 miles southeast of Artesia, New Mexico.
6. 24977 Application of Fasken Oil and Ranch, Ltd. to Extend the Drilling Deadline Under Order Nos. R-21922 and R-21922-B, Lea County, New Mexico. Applicant in the above-styled cause seeks to amend Order No. R-21922 and Order No. R-21922-B to extend by one year, through December 7, 2025, the time to commence drilling the Thai Curry Fed Com 223H and the Thai Curry Fed Com 224H wells, proposed to be drilled into the Bone Spring formation (SALT LAKE; BONE SPRING [53560]) in a standard 560-acre, more or less, horizontal spacing and proration unit with proximity tracts, comprised of the E/2 of Section 22 and NE/4 and N/2 SE/4 of Section 27, Township 20 South, Range 32 East, NMPM, in Lea County, New Mexico. The wells and lands are located approximately twenty-seven miles northeast of Loving, New Mexico.
7. 24978 Application of Fasken Oil and Ranch, Ltd. to Extend the Drilling Deadline Under Order Nos. R-21923 and R-21923-B, Lea County, New Mexico. Applicant in the above-styled cause seeks to amend Order Nos. R-21923 and R-21923-B to extend by one year, through December 7, 2024, the time to commence drilling the Thai Curry Fed Com 433H and the Thai Curry Fed Com 434H wells, proposed to be drilled into the Wolfcamp formation (SALT LAKE; WOLFCAMP [53570]) in a standard 560-acre, more or less, horizontal spacing and proration unit with proximity tracts, underlying the E/2 of Section 22 and NE/4 and N/2 SE/4 of Section 27, Township 20 South, Range 32 East, NMPM, in Lea County, New Mexico. The wells and lands are located approximately twenty-seven miles northeast of Loving, New Mexico.
8. 24231 Application of Marathon Oil Permian LLC 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 mineral interests within a standard 960-acre, more or less, Bone Spring horizontal spacing unit underlying the S/2 of Sections 8 and 7, Township 23 South, Range 28 East, and the S/2 of Section 12, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. This spacing unit will be dedicated to the Silver Snake Federal Com 301H and Silver Snake Federal Com 501H wells to be horizontally with first take points in the SE/4 SE/4 (Unit P) of Section 8 and last take points in the SW/4 SW/4 (Unit M) of Section 12; and the Silver Snake Federal Com 302H and Silver Snake Federal Com 502H wells to be horizontally drilled with first take points in the NE/4 SE/4 (Unit I) of Section 8 and last take points in the NW/4 SW/4 (Unit L) of Section 12. The producing area for the wells is expected to be orthodox. The completed intervals for the Silver Snake Federal Com 302H and Silver Snake Federal Com 501H wells are expected to be less than 330 feet from the adjoining tracts thereby allowing for the inclusion of the proximity tracts within the proposed spacing unit. Applicant also seeks, to the extent necessary, approval of an overlapping spacing unit. This proposed horizontal spacing unit will overlap with a 160-acre horizontal spacing unit comprised of the N/2 S/2 of Section 8, Township 23 South, Range 28 East, dedicated to OXY USA WTP Limited Partnership’s Villa A Fee Com #002H well (API 30-015-42284). Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Marathon as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 9 miles southwest of Carlsbad, New Mexico.
9. 24481 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 320-acre, more or less, horizontal well spacing unit in the Bone Spring formation comprised of the N2N2 of Sections 11 and 12, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Brenda Schulte Fee 111H, Brenda Schulte Fee 121H and Brenda Schulte Fee 131H wells to be horizontally drilled from a surface location in the NW4 of Section 11, with first take points in the NW4NW4 (Unit D) of Section 11 and last take points in the NE4NE4 (Unit A) of Section 12. Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the proposed spacing unit, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 10 miles southwest of Carlsbad, New Mexico.
10. 24484 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 320-acre, more or less, horizontal well spacing unit in the Bone Spring formation comprised of the S2S2 of Sections 11 and 12, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Brenda Schulte Fee 114H, Brenda Schulte Fee 124H and Brenda Schulte Fee 134H wells to be horizontally drilled from a surface location in the SW4 of Section 11, with first take points in the SW4SW4 (Unit M) of Section 11 and last take points in the SE4SE4 (Unit P) of Section 12. Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the proposed spacing unit, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 10 miles southwest of Carlsbad, New Mexico.

11. 24482 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 320-acre, more or less, horizontal well spacing unit in the Bone Spring formation comprised of the S2N2 of Sections 11 and 12, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Brenda Schulte Fee 112H, Brenda Schulte Fee 122H and Brenda Schulte Fee 132H wells to be horizontally drilled from a surface location in the NW4 of Section 11, with first take points in the SW4NW4 (Unit E) of Section 11 and last take points in the SE4NE4 (Unit H) of Section 12. Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the proposed spacing unit, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 10 miles southwest of Carlsbad, New Mexico.
12. 24483 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 320-acre, more or less, horizontal well spacing unit in the Bone Spring formation comprised of the N2S2 of Sections 11 and 12, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Brenda Schulte Fee 113H, Brenda Schulte Fee 123H and Brenda Schulte Fee 133H wells to be horizontally drilled from a surface location in the SW4 of Section 11, with first take points in the NW4SW4 (Unit L) of Section 11 and last take points in the NE4SE4 (Unit I) of Section 12. Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the proposed spacing unit, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 10 miles southwest of Carlsbad, New Mexico.
13. 24232 Application of Marathon Oil Permian LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant seeks an order from the Division pooling all uncommitted mineral interests within a standard 960-acre, more or less, Bone Spring horizontal spacing unit underlying the N/2 of Sections 8 and 7, Township 23 South, Range 28 East, and the N/2 of Section 12, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. This spacing unit will be dedicated to the Purple Parrot Federal Com 301H and Purple Parrot Federal Com 501H wells to be horizontally drilled with first take points in the SE/4 NE/4 (Unit H) of Section 8 and last take points in the SW/4 NW/4 (Unit E) of Section 12; and the Purple Parrot Federal Com 302H and Purple Parrot Federal Com 502H wells to be horizontally drilled with first take points in the NE/4 NE/4 (Unit A) of Section 8 and last take points in the NW/4 NW/4 (Unit D) of Section 12. The producing area for the wells is expected to be orthodox. The completed intervals for the Purple Parrot Federal Com 302H and Purple Parrot Federal Com 501H wells are expected to be less than 330 feet from the adjoining tracts thereby allowing for the inclusion of the proximity tracts within the proposed spacing unit. Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Marathon as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 9 miles southwest of Carlsbad, New Mexico.
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