OCD Permitting

PRELIMINARY DOCKET: OCD Special Hearing for August 29, 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.

Case No. Description
1. 24605 Application of FAE II Operating, LLC for Enhanced Oil Recovery Project and to Qualify the Project for the Recovered Oil Tax Rate Lea County, New Mexico. Applicant is a working interest owner in the proposed North Jal Unit (the "Unit Area"), which comprises 3,154.37 acres of the following federal, state, and fee lands located in Lea County, New Mexico:

Township 24 South, Range 36 East, N.M.P.M.

Section 25: S/2
Section 26: E2SE
Section 35: E2NE
Section 36: ALL

Township 24 South, Range 37 East, N.M.P.M.

Section 19: E/2
Section 20: SW/4, SWNW
Section 29: W/2
Section 30: NE/4, S/2
Section 31: N2NW

Township 25 South, Range 36 East, N.M.P.M.

Section 1: All

The unitized interval extends from the top of the Yates Formation to a lower limit at the base of the Queen Formation. Among the matters to be considered at hearing, pursuant to the New Mexico Statutory Unitization Act, NMSA 1978, §§ 70-7-1 et seq., will be: the necessity of unit operations; the determination of horizontal and vertical limits of the unit area; the determination of the fair, reasonable, and equitable allocation of production and costs of production, including capital investments, to each of the tracts in the unit area; the determination of credits and charges to be made among the working interest owners in the unit area for their investment in wells and equipment; and such other matters as may be necessary and appropriate.. The unit area is centered approximately 5 miles North of Jal, New Mexico.
2. 24606 Application of FAE II Operating, LLC for Statutory Unitization, Lea County, New Mexico. Applicant is a working interest owner in the proposed North Jal Unit (the "Unit Area"), which comprises 3,154.37 acres of the following federal, state, and fee lands located in Lea County, New Mexico:

Township 24 South, Range 36 East, N.M.P.M.

Section 25: S/2
Section 26: E2SE
Section 35: E2NE
Section 36: ALL

Township 24 South, Range 37 East, N.M.P.M.

Section 19: E/2
Section 20: SW/4, SWNW
Section 29: W/2
Section 30: NE/4, S/2
Section 31: N2NW

Township 25 South, Range 36 East, N.M.P.M.

Section 1: All

The unitized interval extends from the top of the Yates Formation to a lower limit at the base of the Queen Formation. Among the matters to be considered at hearing, pursuant to the New Mexico Statutory Unitization Act, NMSA 1978, §§ 70-7-1 et seq., will be: the necessity of unit operations; the determination of horizontal and vertical limits of the unit area; the determination of the fair, reasonable, and equitable allocation of production and costs of production, including capital investments, to each of the tracts in the unit area; the determination of credits and charges to be made among the working interest owners in the unit area for their investment in wells and equipment; and such other matters as may be necessary and appropriate.. The unit area is centered approximately 5 miles North of Jal, New Mexico.
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