OCD Permitting

PRELIMINARY DOCKET: OCD Status Conference Docket for April 16, 2026

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. 25727 Application of Spur Energy Partners LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant seeks an order pooling all uncommitted interests in the Yeso formation underlying a 120-acre, more or less, standard horizontal spacing unit comprised of the N/2 SE/4 and the NE/4 SW/4 of Section 17, Township 17 South, Range 31 East, Eddy County, New Mexico (“Unit”). Applicant seeks to dedicate the Unit to the Garrison 17 Fed 20H, Garrison 17 Fed 70H, and Garrison 17 Fed 90H wells (“Wells”), to be drilled from surface hole locations in the NW/4 SW/4 (Unit L) of Section 16 to bottom hole locations in the NE/4 SW/4 (Unit K) of Section 17. Also to be considered will be the cost of drilling and completing the Wells and the allocation of the costs, the designation of Applicant as the operator of the Wells, and a 200% charge for the risk involved in drilling and completing the Wells. The Wells are located approximately 6.87 miles west and 1.67 miles south of Maljamar, New Mexico.
2. 25886 Application of Tap Rock Operating, LLC for Approving a Standard Horizontal Spacing Unit and Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order from the Division: (1) approving a 320-acre, more or less, standard horizontal spacing and proration unit composed of the W/2 E/2 of Sections 18 and 19, Township 26 South, Range 26 East, N.M.P.M, Eddy County, New Mexico, and (2) pooling all uncommitted mineral interests in the WC-015 G-04 S262619C; Bone Spring [98005] Pool, designated as an oil pool, underlying said unit. The proposed well to be dedicated to the horizontal spacing unit is the: Coors Fed Com 153H (API No. Pending), which is an oil well that will be horizontally drilled from a surface location in the SE/4 SW/4 (Unit N) of Section 20, Township 26 South, Range 26 East, to a bottom hole location in the WC-015 G-04 S262619C; Bone Spring Pool in the NW/4 NE/4 (Unit B) of Section 18, Township 26 South, Range 26 East. The well is orthodox in location, and the take points and lateral comply with Statewide Rules for setbacks. The well and lands are located approximately 11.12 miles southeast of Whites City, New Mexico.
3. 25887 Application of Tap Rock Operating, LLC for Approving a Standard Horizontal Spacing Unit and Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order from the Division: (1) approving a 320-acre, more or less, standard horizontal spacing and proration unit composed of the E/2 E/2 of Sections 18 and 19, Township 26 South, Range 26 East, N.M.P.M, Eddy County, New Mexico, and (2) pooling all uncommitted mineral interests in the WC-015 G-04 S262619C; Bone Spring [98005] Pool, designated as an oil pool, underlying said unit. The proposed well to be dedicated to the horizontal spacing unit is the: Coors Fed Com 154H (API No. Pending), which is an oil well that will be horizontally drilled from a surface location in the SE/4 SW/4 (Unit N) of Section 20, Township 26 South, Range 26 East, to a bottom hole location in the WC-015 G-04 S262619C; Bone Spring Pool in the NE/4 NE/4 (Unit A) of Section 18, Township 26 South, Range 26 East. The well is orthodox in location, and the take points and lateral comply with Statewide Rules for setbacks. The well and lands are located approximately 11.12 miles southeast of Whites City, New Mexico.
4. 25912 Application of Greyhound Resources, LLC for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 480-acre, more or less, horizontal well spacing unit in the Pennsylvanian formation underlying the W/2 W/2 of Sections 10, 15 and 22, Township 15 South, Range 36 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Janie Nelson State Com 241H well, to be horizontally drilled from a surface location in the SW/4 SW/4 (Unit M) of Section 22, with a first take point in the SW/4 SW/4 (Unit M) of Section 22, and a last take point in the NW/4 NW/4 (Unit D) of Section 10. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 23 miles northwest of Hobbs, New Mexico.
5. 25913 Application of Greyhound Resources, LLC for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 480-acre, more or less, horizontal well spacing unit in the Pennsylvanian formation underlying the E/2 W/2 of Sections 10, 15 and 22, Township 15 South, Range 36 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Janie Nelson State Com 242H well, to be horizontally drilled from a surface location in the SE/4 SW/4 (Unit N) of Section 22, with a first take point in the SE/4 SW/4 (Unit N) of Section 22, and a last take point in the NE/4 NW/4 (Unit C) of Section 10. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 23 miles northwest of Hobbs, New Mexico.
6. 25914 Application of Greyhound Resources, LLC for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 480-acre, more or less, horizontal well spacing unit in the Pennsylvanian formation underlying the W/2 E/2 of Sections 10, 15 and 22, Township 15 South, Range 36 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Janie Nelson State Com 243H well, to be horizontally drilled from a surface location in the SW/4 SE/4 (Unit O) of Section 22, with a first take point in the SW/4 SE/4 (Unit O) of Section 22, and a last take point in the NW/4 NE/4 (Unit B) of Section 10. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 23 miles northwest of Hobbs, New Mexico.
7. 25915 Application of Greyhound Resources, LLC for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 480-acre, more or less, horizontal well spacing unit in the Pennsylvanian formation underlying the E/2 E/2 of Sections 10, 15 and 22, Township 15 South, Range 36 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Janie Nelson State Com 244H well, to be horizontally drilled from a surface location in the SE/4 SE/4 (Unit P) of Section 22, with a first take point in the SE/4 SE/4 (Unit P) of Section 22, and a last take point in the NE/4 NE/4 (Unit A) of Section 10. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 23 miles northwest of Hobbs, New Mexico.
8. 26005 Application of MRC Permian Company for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 320-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the W/2 W/2 of Sections 11 and 14, Township 17 South, Range 37 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Monika 1411 Com 131H well, to be horizontally drilled from a surface location in the S/2 SW/4 of Section 14, with a first take point in the SW/4 SW/4 (Unit M) of Section 14, and a last take point in the NW/4 NW/4 (Unit D) of Section 11. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 10 miles northwest of Hobbs, New Mexico.
9. 26006 Application of MRC Permian Company for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 320-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the E/2 W/2 of Sections 11 and 14, Township 17 South, Range 37 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Monika 1411 Com 132H well, to be horizontally drilled from a surface location in the S/2 SW/4 of Section 14, with a first take point in the SE/4 SW/4 (Unit N) of Section 14, and a last take point in the NE/4 NW/4 (Unit C) of Section 11. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 10 miles northwest of Hobbs, New Mexico.
10. 26008 Application of MRC Permian Company for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling the uncommitted interest owners in a standard 640-acre, more or less, horizontal well spacing unit in the Wolfcamp formation underlying the W/2 of Sections 11 and 14, Township 17 South, Range 37 East, NMPM, Lea County, New Mexico. Applicant seeks to initially dedicate the above-referenced spacing unit to the proposed Monika 1411 Com 202H well, to be horizontally drilled from a surface location in the S/2 SW/4 of Section 14, with a first take point in the SW/4 SW/4 (Unit M) of Section 14, and a last take point in the NW/4 NW/4 (Unit D) of Section 11.     The completed interval of the Monika 1411 Com 202H well is expected to remain within 330 feet of the adjoining quarter-quarter section (or equivalent) tracts to allow inclusion of these proximity tracts within the proposed horizontal well spacing unit under 19.15.16.15.B(1)(b) NMAC. Also, to be considered will be the cost of drilling and completing the well and the allocation of the costs 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 the proposed well. The subject area is located approximately 10 miles northwest of Hobbs, New Mexico.
11. 26009 Application of OXY USA, INC. for Approval of a Non-standard Horizontal Well Spacing Unit and Compulsory Pooling, Eddy County, New Mexico. Applicant seeks an order (a) approving a non-standard 1,920- acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying regular Sections 22, 27, and 34, Township 24 South, Range 29 East, Eddy County, New Mexico, and (b) pooling all uncommitted mineral owners in this acreage. This spacing unit will be initially dedicated to the following proposed horizontal wells:

•    Sapphire CC 22 34 Federal Com #71H [API 30-015-57499] to be horizontally drilled from a surface location 397 feet from the North Line of Section 22 and 2,149 feet from the West Line of Section 22, and a bottom location located 20 feet from the South Line of Section 34 and 330 feet from the West Line of Section 34.
•    Sapphire CC 22 34 Federal Com #72H [API 30-015-57501] to be horizontally drilled from a surface location 427 feet from the North Line of Section 22 and 2,154 feet from the West Line of Section 22, and a bottom location located 20 feet from the South Line of Section 34 and 1,210 feet from the West Line of Section 34.
•    Sapphire CC 22 34 Federal Com #73H [API 30-015-57502] to be horizontally drilled from a surface location 708 feet from the North Line of Section 22 and 2,156 feet from the East Line of Section 22, and a bottom location located 20 feet from the South Line of Section 34 and 1,430 feet from the East Line of Section 34.
•    Sapphire CC 22 34 Federal Com #74H [API 30-015-57504] to be horizontally drilled from a surface location 708 feet from the North Line of Section 22 and 2,126 feet from the East Line of Section 22, and a bottom location located 20 feet from the South Line of Section 34 and 550 feet from the East Line of Section 34.
•    Sapphire CC 22 34 Federal Com #75H [API 30-015-57505] to be horizontally drilled from a surface location 456 feet from the North Line of Section 22 and 2,159 feet from the West Line of Section 22, and a bottom location located 20 feet from the South Line of Section 34 and 2,090 feet from the West Line of Section 34.
•    Sapphire CC 22 34 Federal Com #76H [API 30-015-57506] to be horizontally drilled from a surface location 708 feet from the North Line of Section 22 and 2,186 feet from the East Line of Section 22, and a bottom location located 20 feet from the South Line of Section 34 and 2,310 feet from the East Line of Section 34.

Also, to be considered will be the necessity of the non-standard spacing unit, the cost of drilling and completing the wells and the allocation of the costs thereof, operating costs and charges for supervision, the designation of applicant as operator, and a 200% charge for risk involved in drilling and completing the wells. Said area is approximately 26 miles southeast of Carlsbad, New Mexico.
12. 26010 CASE______:     Application of OXY USA, INC. for Approval of a Non-standard Horizontal Well Spacing unit and Compulsory Pooling, Eddy County, New Mexico. Applicant seeks an order (a) approving a non-standard 1920-acre, more or less, horizontal well spacing unit in the Bone Spring Formation underlying regular Sections 21, 28, and 33, Township 24 South, Range 29 East, Eddy County, New Mexico, and (b) pooling all uncommitted mineral owners in this acreage. This spacing unit will be initially dedicated to the following proposed horizontal wells:

•    Emerald CC 21 33 Federal Com #31H to be horizontally drilled from a surface location 1,915 feet from the North Line of Section 21 and 1,304 feet from the West Line of Section 21, and a bottom location located 20 feet from the South Line of Section 33 and 330 feet from the West Line of Section 33.
•    Emerald CC 21 33 Federal Com #32H to be horizontally drilled from a surface location 1,916 feet from the North Line of Section 21 and 1,334 feet from the West Line of Section 21, and a bottom location located 20 feet from the South Line of Section 33 and 940 feet from the West Line of Section 33.
•    Emerald CC 21 33 Federal Com #111H to be horizontally drilled from a surface location 1,916 feet from the North Line of Section 21 and 1,364 feet from the West Line of Section 21, and a bottom location located 20 feet from the South Line of Section 33 and 1,550 feet from the West Line of Section 33.
•    Emerald CC 21 33 Federal Com #112H to be horizontally drilled from a surface location 1,916 feet from the North Line of Section 21 and 1,394 feet from the West Line of Section 21, and a bottom location located 20 feet from the South Line of Section 33 and 2,510 feet from the East Line of Section 33.
•    Emerald CC 21 33 Federal Com #113H to be horizontally drilled from a surface location 422 feet from the North Line of Section 21 and 670 feet from the East Line of Section 21, and a bottom location located 20 feet from the South Line of Section 33 and 1,900 feet from the East Line of Section 33.
•    Emerald CC 21 33 Federal Com #114H to be horizontally drilled from a surface location 392 feet from the North Line of Section 21 and 670 feet from the East Line of Section 21, and a bottom location located 20 feet from the South Line of Section 33 and 1,290 feet from the East Line of Section 33.

Also, to be considered will be the necessity of the non-standard spacing unit, the cost of drilling and completing the wells and the allocation of the costs thereof, operating costs and charges for supervision, the designation of applicant as operator, and a 200% charge for risk involved in drilling and completing the wells. Said area is approximately 26 miles southeast of Carlsbad, New Mexico.
13. 26026 Application of XTO Holdings, LLC to Re-Open Longfellow Energy, L.P. Case No. 25903, Eddy County, New Mexico. XTO Holdings, LLC (“Applicant”) seeks to re-open Longfellow Energy, L.P. (“Longfellow”) Case No. 25903 due to defective notice. The Division issued Order No. R-24217 in Case No. 25903, pooling uncommitted interests in the Yeso formation underlying Yeso formation underlying a 320 acre, more or less, standard horizontal spacing unit comprised of the N/2 of Section 33, Township 16 South, Range 31 East, in Eddy County, New Mexico; dedicating the unit to the Van Halen 33AB Fed Com 001H, Van Halen 33AB Fed Com 002H, Van Halen 33AB Fed Com 003H, Van Halen 33AB Fed Com 004H, Van Halen 33AB Fed Com 005H, Van Halen 33AB Fed Com 006H, Van Halen 33AB Fed Com 007H, and Van Halen 33AB Fed Com 008H wells; and designating Longfellow as operator of the unit and wells. Applicant requests that the Division reopen Case No. 25903 to remedy Longfellow’s failure to provide XTO with notice of the hearing and allow XTO to exercise its option to participate in Longfellow’s development. The wells are located approximately 6 miles west of Maljamar, New Mexico.
14. 25996     CASE NO. : Application of Avant Operating II, LLC for approval of a non-standard horizontal unit and compulsory pooling, Lea County, New Mexico. Applicant seeks an order pooling all uncommitted interests in the Bone Spring formation, from the top of the Bone Spring formation to the base of the Second Bone Spring formation at an approximate depth of 9,338’, within a non-standard 960-acre, more or less, horizontal spacing unit comprised of the S/2 of Section 8, and all of Section 17, Township 18 South, Range 35 East, N.M.P.M., Lea County, New Mexico. This spacing unit will be dedicated to the following wells: the Moonwatch 17 8 State Com #501H well with a proposed surface hole location in the SW/4 SW/4 (Unit M) of Section 17, and a proposed last take point in the NW/4 SW/4 (Unit L) of Section 8; the Moonwatch 17 8 State Com #502H well with a proposed surface hole location in the SW/4 SW/4 (Unit M) of Section 17, and a proposed last take point in the NE/4 SW/4 (Unit K) of Section 8; the Moonwatch 17 8 State Com #503H well with a proposed surface hole location in the SW/4 SE/4 (Unit O) of Section 17, and a proposed last take point in the NW/4 SE/4 (Unit J) of Section 8; and the Moonwatch 17 8 State Com #504H well with a proposed surface hole location in the SW/4 SE/4 (Unit O) of Section 17, and a proposed last take point in the NE/4 SE/4 (Unit I) of Section 8. The wells will be drilled at orthodox locations.. 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 Avant Operating II, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 20 miles west of Hobbs, New Mexico.
15. 26025 Application of Paloma Permian AssetCo, LLC for approval of a non-standard spacing unit, compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit, Lea County, New Mexico. Applicant seeks an order from the Division approving a non-standard spacing unit and pooling all uncommitted interests within a 1600-acre, more or less, Bone Spring horizontal spacing unit comprised of the S/2 of Section 32, Township 18 South, Range 32 East, and Sections 5 and 8, Township 19 South, Range 32 East, NMPM, Lea County, New Mexico. This spacing unit will be dedicated to: Desert Harvest 32-5-8 Fed Com 301H and Desert Harvest 32-5-8 Fed Com 601H wells with first take points in the NW/4SW/4 (Unit L) of Section 32 and last take points in the SW/4SW/4 (Unit M) of Section 8; Desert Harvest 32-5-8 Fed Com 302H and Desert Harvest 32-5-8 Fed Com 602H wells with first take points in the NE/4SW/4 (Unit K) of Section 32 and last take points in the SE/4SW/4 (Unit N) of Section 8; Desert Harvest 32-5-8 Fed Com 303H; Desert Harvest 32-5-8 Fed Com 503H; and Desert Harvest 32-5-8 Fed Com 603H wells with first take points in the NW/4SE/4 (Unit J) of Section 32 and last take points in the SW/4SE/4 (Unit O) of Section 8; Desert Harvest 32-5-8 Fed Com 304H; Desert Harvest 32-5-8 Fed Com 504H; and Desert Harvest 32-5-8 Fed Com 604H wells with first take points in the NE/4SE/4 (Unit I) of Section 32 and last take points in the SE/4SE/4 (Unit P) of Section 8; Desert Harvest 32-5-8 Fed Com 501H well with a first take point in the NW/4SW/4 (Unit L) of Section 32 and a last take point in the SW/4SW/4 (Unit M) of Section 5; and Desert Harvest 32-5-8 Fed Com 502H well with a first take point in the NE/4SW/4 (Unit K) of Section 32 and a last take point in the SE/4NW/4 (Unit F) of Section 5. The producing area for the wells is expected to be orthodox. This unit will partially overlap: A 40-acre spacing unit dedicated to the North Lusk 32 State 1 well (API No. 30-025-35748) in the NW/4SW/4 of Section 32, Township 18 South, Range 32 East operated by Oxy USA Inc. (Oxy); A 40-acre spacing unit dedicated to the North Lusk 32 State 3 well (API No. 30-025-36953) in the NE/4 SW/4 of Section 32, Township 18 South, Range 32 East operated by Oxy; An 80-acre spacing unit dedicated to the Lear State #2H (API No. 30-025-38866) in the SE/SW/4 and SW/SW/4 of Section 32, Township 18 South, Range 32 East operated by COG Operating LLC (COG); A 40-acre spacing unit dedicated to the North Lusk 32 State 2 well (API No. 30-025-36982) in the SW/4SW/4 of Section 32, Township 18 South, Range 32 East and operated by Oxy; A 160-acre spacing unit dedicated to the North Lusk 32 State 1 well (API No. 30-025-35748) in the SW/4 of Section 32, Township 18 South, Range 32 East operated by Oxy; An 80-acre spacing unit dedicated to the Patterson B-52 Federal 4H well (API No. 30-025-39289) in the W/2SW/4 of Section 5, Township 19 South, Range 32 East operated by COG; An 80-acre spacing unit dedicated to the Patterson B-52 Federal 3H well (API No. 30-025-39638) in the W/2SE/4 of Section 5, Township 19 South, Range 32 East operated by COG; An 80-acre spacing unit dedicated to the Patterson B-52 Federal 5H well (API No. 30-025-38970) in the E/2SE/4 of Section 5, Township 19 South, Range 32 East operated by COG; A 120-acre spacing unit dedicated to the King Air Federal 1H well (API No. 30-025-38897) and the King Air Federal 2H well (API 30-025-38905) in the N/2N/E and the SW/4NE/4 of Section 8, Township 19 South, Range 32 East operated by COG; A 160-acre spacing unit dedicated to the King Air Federal 4H well (API No. 30-025-42200) in the W/2W/2 of Section 8, Township 19 South, Range 32 East operated by COG; A 40-acre spacing unit dedicated to the Lusk 8 Federal 1well (API No. 30-025-37256) in the SE/4NW/4 of Section 8, Township 19 South, Range 32 East operated by COG; An 80-acre spacing unit dedicated to the Beechcraft Federal 1H well (API No. 30-025-38816) in the E/2SE/4 of Section 8, Township 19 South, Range 32 East operated by COG; A 160-acre spacing unit dedicated to the Citation X Federal Com 1H well (API No. 30-025-39960) in the SW/4SW/4 of Section 8, Township 19 South, Range 32 East and the W/2NE/4 of Section 17, Township 19 South, Range 32 East operated by COG; A 240-acre spacing unit dedicated to the King Air Federal Com 3H well (API No. 30-025-41476) in the E/2W/2 of Section 8, Township 19 South, Range 32 East and E/2SW/4 of Section 5, Township 19 South, Range 32 East operated by COG. 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 Paloma Permian AssetCo, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 26 miles southwest of Lovington, New Mexico.
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