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.
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1.
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24849
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Application of Avant Operating, LLC for approval of a non-standard spacing unit and compulsory pooling, Lea County, New Mexico. Applicant seeks an order from the Division approving a non-standard spacing unit and pooling all uncommitted interests within a 1280-acre, more or less, Bone Spring horizontal spacing unit comprised of Sections 14 and 23, Township 19 South, Range 33 East, N.M.P.M., Lea County, New Mexico. This spacing unit will be dedicated to the following wells: the Sapphire 14 Federal Com #301H, Sapphire 14 Federal Com #302H, Sapphire 14 Federal Com #501H, Sapphire 14 Federal Com #502H, Sapphire 14 Federal Com #601H, and Sapphire 14 Federal Com #602H wells with proposed surface hole locations in the NW/4 NW/4 (Unit D) of Section 14 and proposed bottom hole locations in the SW/4 SW/4 (Unit M) of Section 23; Sapphire 14 Federal Com #303H and Sapphire 14 Federal Com #603H wells with proposed first take points in the NE/4 NW/4 (Unit C) of Section 14 and proposed last take points in the SE/4 SW/4 (Unit N) of Section 23; Sapphire 14 Federal Com #513H well with a proposed surface hole location in the NW/4 NW/4 (Unit D) of Section 14 and a proposed bottom hole location in the SE/4 SW/4 (Unit N) of Section 23; Sapphire 14 Federal Com #304H, and Sapphire 14 Federal Com #604H wells with proposed surface hole locations in the NE/4 NE/4 (Unit A) of Section 14 and proposed bottom hole locations in the SW/4 SE/4 (Unit O) of Section 23; Sapphire 14 Federal Com #514H well with a proposed surface hole location in the NW/4 NE/4 (Unit B) of Section 14 and a proposed bottom hole location in the SW/4 SE/4 (Unit O) of Section 23; Sapphire 14 Federal Com #505H, and Sapphire 14 Federal Com #506H wells with proposed surface hole locations in the NW/4 NE/4 (Unit B) of Section 14 and proposed bottom hole locations in the SE/4 SE/4 (Unit P) of Section 23; and the Sapphire 14 Federal Com #305H, Sapphire 14 Federal Com #306H, Sapphire 14 Federal Com #605H, and Sapphire 14 Federal Com #606H wells with proposed surface hole locations in the NE/4 NE/4 (Unit A) of Section 14 and proposed bottom hole locations in the SE/4 SE/4 (Unit P) of Section 23. The wells will be drilled at orthodox locations. The pool and pool code for Sections 14 and 23 is the Gem; Bone Spring, East Pool (Code 27230), which is an oil pool. 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, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 23 miles west of Hobbs, New Mexico.
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2.
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25312
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Application of Pride Energy Company for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order from the Oil Conservation Division pooling all uncommitted mineral interests in the Bone Spring formation (AVALON; BONE SPRING, EAST [3713]) in a standard 640-acre, more or less, horizontal spacing and proration unit (“HSU”), including proximity tracts, comprised of the W/2 W/2 of Sections 15 and 22, all in Township 21 South, Range 34 East, in Lea County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: (1) South Berry State Com #91H well, to be horizontally drilled from a surface hole location approximately 635’ FWL and 220’ FNL of Section 15, T21S-R34E, to a bottom hole location approximately 330’ FWL and 100’ FSL of Section 22, T21S-R34E; (2) South Berry State Com #92H well, to be horizontally drilled from a surface hole location approximately 660’ FWL and 250’ FNL of Section 15, T21S-R34E, to a bottom hole location approximately 990’ FWL and 100’ FSL of Section 22, T21S-R34E; (3) South Berry State Com #101H well, to be horizontally drilled from a surface hole location approximately 660’ FWL and 220’ FNL of Section 15, T21S-R34E, to a bottom hole location approximately 660’ FWL and 100’ FSL of Section 22, T21S-R34E; (4) South Berry State Com #201H well, to be horizontally drilled from a surface hole location approximately 685’ FWL and 220’ FNL of Section 15, T21S-R34E, to a bottom hole location approximately 990’ FWL and 100’ FSL of Section 22, T21S-R34E.; (5) South Berry State Com #202H well, to be horizontally drilled from a surface hole location approximately 635’ FWL and 250’ FNL of Section 15, T21S-R34E, to a bottom hole location approximately 330’ FWL and 100’ FSL of Section 22, T21S-R34E; and (6) South Berry State Com #301H well, to be horizontally drilled from a surface hole location approximately 685’ FWL and 250’ FNL of Section 15, T21S-R34E, to a bottom hole location approximately 990’ FWL and 100’ FSL of Section 22, T21S-R34E. The completed intervals and first and last take points will meet the setback requirements set forth in the statewide rules for horizontal oil wells. Additional considerations will be the cost of drilling and completing the wells and allocation of such costs, the designation of Applicant as operator of the HSU and wells to be drilled thereon, and a 200% charge for the risk involved in drilling and completing the wells. The wells and lands are located approximately 17 miles West of Eunice, New Mexico.
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3.
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25455
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Application of EOG Resources, Inc. for Approval of a Non-Standard Overlapping Spacing Unit and Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order (a) approving a non-standard 1280-acre, more or less, overlapping horizontal well spacing unit in the Bone Spring formation underlying Sections 15 and 22, Township 21 South, Range 34 East NMPM, Lea County, New Mexico, and (b) pooling the uncommitted mineral owners in this acreage. This spacing unit will be initially dedicated to the following proposed wells to be horizontally drilled from surface locations in the N2N2 of Section 15:
• Sour Grapes 15 State Com 201H, Sour Grapes State Com 301H and Sour Grapes State Com 501H, with first take points in the NW4NW4 (Unit D) of Section 15 and last take points in the SW4SW4 (Unit M) of Section 22;
• Sour Grapes 15 State Com 302H with a first take point in the NE4NW4 (Unit C) of Section 15 and a last take point in the SE4SW4 (Unit N) of Section 22;
• Sour Grapes 15 State Com 202H, Sour Grapes State Com 303H and Sour Grapes State Com 502H, with first take points in the NW4NE4 (Unit B) of Section 15 and last take points in the SW4SE4 (Unit O) of Section 22; and
• Sour Grapes 15 State Com 203H, Sour Grapes State Com 304H and Sour Grapes State Com 503H, with first take points in the NE4NE4 (Unit A) of Section 15 and last take points in the SE4SE4 (Unit P) of Section 22.
This proposed horizonal well spacing unit will overlap the following existing spacing units in the Bone Spring formation (Berry; Bone Spring, South Pool (96660)):
• A 240-acre spacing unit comprised of the W2SE4 of Section 15 and the W2E2 of Section 22, dedicated to the Lychee BWS State Com 1H (30-025-42445), operated by COG Operating; and
• A 320-acre spacing unit comprised of the E2W2 of Sections 15 and 22, dedicated to the Lychee State Com 3H (30-025-45256) and the Lychee State Com 503H (30-025-46423) operated by COG Operating.
Also, to be considered will be the cost of drilling and completing the wells and the allocation of the costs thereof, the 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. The subject area is located approximately 17 miles west of Eunice, New Mexico.
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4.
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25470
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Application of Paloma Permian AssetCo, LLC for approval compulsory pooling, Lea County, New Mexico. Applicant seeks an order from the Division pooling all uncommitted interests within a 320-acre, more or less, Wolfcamp horizontal spacing unit comprised of the E/2 of Section 8, Township 26 South, Range 33 East, NMPM, Lea County, New Mexico. This spacing unit will be dedicated to the following wells: Fat Chicken 8 Fed Com 701H, Fat Chicken 8 Fed Com 751H, and Fat Chicken 8 Fed Com 801H wells with proposed first take points in the SW/4SE/4 (Unit O) of Section 8 and proposed last take points in the NW/4NE/4 (Unit B) of Section 8; and Fat Chicken 8 Fed Com 702H, Fat Chicken 8 Fed Com 703H, Fat Chicken 8 Fed Com 752H, and Fat Chicken 8 Fed Com 802H wells with proposed first take points in the SE/4SE/4 (Unit P) of Section 8 and proposed last take points in the NE/4NE/4 (Unit A) of Section 8. The producing area for the wells is expected to be orthodox. The completed interval for the Fat Chicken 8 Fed Com 702H well is 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, 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 as 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 24 miles southwest of Jal, New Mexico.
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5.
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25496
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Application of Alpha Energy Partners II, LLC, for Compulsory Pooling, Eddy County, New
Mexico. Alpha Energy Partners II, LLC, as the Applicant, (“Alpha” or “Applicant”), in
conjunction with Paloma Permian AssetCo (“Paloma”), OGRID No. 332449, as the designated
operator, seeks an order from the Division in the above-styled cause pooling all uncommitted
mineral interests in the Bone Spring formation, designated as an oil pool, underlying a standard
316.92-acre, more or less, horizontal spacing and proration unit comprised of the S/2 N/2 Sections
17 and 18 in Township 22 South, Range 27 East, Eddy County, New Mexico. The proposed wells
to be dedicated to the horizontal spacing unit are the Hollywood Star 17-18 Fee 503H 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 Lot 2 (SW/4 NW/4) of Section 18; and the Hollywood Star 17-18
Fee 553H 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 Lot 2 (SW/4 NW/4) of Section 18. The proposed
wells will be orthodox, and their take points and completed intervals will comply with statewide
rules. Applicant will be designating Paloma Permian AssetCO, LLC, as the operator of the wells
and unit. 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 1.5 miles south-
southeast from Carlsbad, New Mexico.
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6.
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25508
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Application of Coterra Energy Operating Co. to Amend Order No. R-23302, Lea County, New Mexico. Coterra Energy Operating Co. seeks an order amending Order No. R-23302 to extend the deadline to commence drilling the initial well under the Order. Order R-23302 pooled uncommitted interest owners in standard 640-acre, more or less, Bone Spring horizontal spacing unit comprised of the E/2 of Sections 15 and 22, Township 19 South, Range 33 East, NMPM, Lea County, New Mexico. Said area is located approximately 24 miles west of Hobbs, New Mexico.
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7.
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25506
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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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8.
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25507
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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.
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