OCD Permitting

PRELIMINARY DOCKET: Examiner Hearing for May 22, 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. 25218 Application of Mewbourne Oil Company for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted mineral interests in the Wolfcamp formation underlying a 1,281.32-acre, more or less, non-standard horizontal spacing unit comprised of Sections 31 and 32, Township 21 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the following wells (“Wells”): G W Buffalo 32/31 Fed Com #711H, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the NW/4 NW/4 (Unit D) of Section 31; G W Buffalo 32/31 Fed Com #713H, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the SW/4 NW/4 (Unit E) of Section 31; G W Buffalo 32/31 Fed Com #716H, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the NW/4 SW/4 (Unit L) of Section 31; and G W Buffalo 32/31 Fed Com #718H and, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the SW/4 SW/4 (Unit M) of Section 31.The completed intervals of the Wells will be orthodox. 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 3 miles west of Carlsbad, New Mexico.
2. 25217 Application of Mewbourne Oil Company for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted mineral interests in the Bone Spring formation underlying a 1,281.32-acre, more or less, non-standard horizontal spacing unit comprised of Sections 31 and 32, Township 21 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the following wells (“Wells”): G W Buffalo 32/31 Fed Com #521H, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the NW/4 NW/4 (Unit D) of Section 31; G W Buffalo 32/31 Fed Com #523H, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the SW/4 NW/4 (Unit E) of Section 31; G W Buffalo 32/31 Fed Com #525H, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the NW/4 SW/4 (Unit L) of Section 31; and G W Buffalo 32/31 Fed Com #527H and, which will be drilled from a surface hole location in the NE/4 SE/4 (Unit I) of Section 32 to a bottom hole location in the SW/4 SW/4 (Unit M) of Section 31.The completed intervals of the Wells will be orthodox. 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 3 miles west of Carlsbad, New Mexico.
3. 25222 Application of Oxy USA Inc. for Approval of Injection Authority for the Mesa Verde Bone Spring Resource Development Unit for Enhanced Oil Recovery, Eddy and Lea Counties, New Mexico. Applicant seeks an order authorizing the injection of water, produced gas and carbon dioxide for purposes of enhanced oil recovery (“EOR”) within the Unitized Interval of the Mesa Verde Bone Spring Resource Development Unit area. The Project Area is comprised of the following federal and state lands in Eddy and Lea County, New Mexico:
TOWNSHIP 24 SOUTH, RANGE 31 EAST, N.M.P.M.
Section 13: ALL

TOWNSHIP 24 SOUTH, RANGE 32 EAST, N.M.P.M.
Section 7: SE/4, E/2 of NE/4
Section 8: ALL
Section 9: W/2
Section 16: W/2
Section 17: ALL
Section 18: ALL

The unitized interval consists of the Bone Spring formation as identified by the Gamma Ray log run in the Heavy Metal 14 Federal 1 well (API: 30-015-29603) located in the NE/4 of SE/4 of Section 14, Township 24 South, Range 31 East, Eddy County, New Mexico, with the top of the unitized interval being found at a depth of 8,445 feet below the surface and the base of the unitized interval being found at a depth of 11,830 feet below the surface. The Unit has twenty-nine (29) active horizontal wells completed in the Bone Spring formation. Oxy seeks to convert fifteen (15) of these producing horizontal wells into injection wells to implement a “huff and puff” enhanced oil recovery project. Oxy requests authorization for injection to occur within two (2) years of approval. Oxy seeks approval to inject produced gas, water, and carbon dioxide within the Unitized Interval at up to the following maximum surface injection pressures in the respective Bone Spring zones of the Avalon, First Bone Spring Sand (“1BSS”), Second Bone Spring Sand (“2BSS”), Third Bone Spring Sand (“3BSS”), and Third Bone Spring Lime (“3BSL”):
    Maximum Surface Injection Pressure (psi)
Zone    Hydrocarbon Gas    Water    CO2
Avalon    4,510    1,813    2,490
1BSS    4,810    1,949    2,630
2BSS    4,980    2,022    2,700
3BSS & 3BSL    5,700    2,361    3,080
Oxy seeks authority to inject at the following maximum and average rates:
Injectant    Maximum Rate    Average Rate
Hydrocarbon Gas    50 MMSCFPD    22 MMSCFPD
Water    10,000 bwpd    5,000 bwpd
CO2    50 MMSCFPD    22 MMSCFPD
The Mesa Verde Bone Spring Resource Development Unit is approximately 5 miles west of Jal, New Mexico.
4. 25225 Application of Oxy USA Inc. for Approval of Injection Authority for the Mesa Verde Wolfcamp Resource Development Unit for Enhanced Oil Recovery, Eddy and Lea Counties, New Mexico. Applicant seeks an order authorizing the injection of water, produced gas and carbon dioxide for purposes of enhanced oil recovery (“EOR”) within the Unitized Interval of the Mesa Verde Wolfcamp Resource Development Unit area. The Project Area is comprised of the following federal and state lands in Eddy and Lea County, New Mexico:
TOWNSHIP 24 SOUTH, RANGE 31 EAST, N.M.P.M.
Section 13: ALL

TOWNSHIP 24 SOUTH, RANGE 32 EAST, N.M.P.M.
Section 7: SE/4, E/2 of NE/4
Section 8: ALL
Section 9: W/2
Section 16: W/2
Section 17: ALL
Section 18: ALL

The unitized interval consists of the Wolfcamp formation as identified by the Gamma Ray log run in the Jack Tank 8 Federal 2 well (API: 30-025-32192) located in the SW/4 of NE/4 of Section 8, Township 24 South, Range 32 East, Lea County, New Mexico, with the top of the unitized interval being found at a depth of 11,882 feet below the surface and the base of the unitized interval being found at a depth of 13,400 feet below the surface. The Unit has twenty-one (21) active horizontal wells completed in the Wolfcamp formation. Oxy seeks to convert fifteen (15) of these producing horizontal wells into injection wells to implement a “huff and puff” enhanced oil recovery project. Oxy requests authorization for injection to occur within two (2) years of approval. Oxy requests authority to inject produced gas, water, and carbon dioxide within the Unitized Interval up to the following maximum surface injection pressures in the respective Wolfcamp zones of the Wolfcamp XYA (“WCXYA”) and Wolfcamp B/C (“WCB/C”):
    Maximum Surface Injection Pressure (psi)
Zone    Hydrocarbon Gas    Water    CO2
WCXYA    5,700    2,361    3,080
WCB/C    6,190    2,570    3,340
Oxy seeks authority to inject at the following maximum and average rates:
Injectant    Maximum Rate    Average Rate
Hydrocarbon Gas    50 MMSCFPD    22 MMSCFPD
Water    10,000 bwpd    5,000 bwpd
CO2    50 MMSCFPD    22 MMSCFPD
The Mesa Verde Wolfcamp Resource Development Unit is approximately 5 miles west of Jal, New Mexico.
5. 25247 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 480-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the N2N2 of Sections 27, 28 and 29, Township 22 South Range 28 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Dick and Donna 2729 Fed Com 121H well to be horizontally drilled from a surface location in the NW4 of Section 26, with a first take point in the NE4NE4 (Unit A) of Section 27 and a last take point in the NW4NW4 (Unit D) of Section 29. Also to be considered will be the cost of drilling and completing the well and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the well, and a 200% charge for risk involved in drilling the well. The subject area is located approximately 5 miles north of Loving, New Mexico.
6. 25248 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 480-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the S2N2 of Sections 27, 28 and 29, Township 22 South Range 28 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Dick and Donna 2729 Fed Com 122H well to be horizontally drilled from a surface location in the NW4 of Section 26, with a first take point in the SE4NE4 (Unit H) of Section 27 and a last take point in the SW4NW4 (Unit E) of Section 29. Also to be considered will be the cost of drilling and completing the well and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the well, and a 200% charge for risk involved in drilling the well. The subject area is located approximately 5 miles north of Loving, New Mexico.
7. 25250 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 960-acre, more or less, horizontal well spacing unit in the Wolfcamp formation underlying the N2 of Sections 27, 28 and 29, Township 22 South Range 28 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the following proposed wells to be drilled from a surface location in the NW4 of Section 26:
•    Dick and Donna 2729 Fed Com 201H, with a first take point in the NE4NE4 (Unit A) of Section 27 and a last take point in the NW4NW4 (Unit D) of Section 29, and
•    Dick and Donna 2729 Fed Com 202H, with a first take point in the SE4NE4 (Unit H) of Section 27 and a last take point in the SW4NW4 (Unit E) of Section 29.
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 wells, and a 200% charge for risk involved in drilling the wells. The subject area is located approximately 5 miles north of Loving, New Mexico.

8. 25252 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 480-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the N2S2 of Sections 27, 28 and 29, Township 22 South Range 28 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Warrior 2729 Fed Com 123H well to be horizontally drilled from a surface location in the SW4 of Section 26, with a first take point in the NE4SE4 (Unit I) of Section 27 and a last take point in the NW4SW4 (Unit L) of Section 29. Also to be considered will be the cost of drilling and completing the well and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the well, and a 200% charge for risk involved in drilling the well. The subject area is located approximately 5 miles north of Loving, New Mexico.
9. 25253 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 480-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the S2S2 of Sections 27, 28 and 29, Township 22 South Range 28 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the proposed Warrior 2729 Fed Com 124H well to be horizontally drilled from a surface location in the SW4 of Section 26, with a first take point in the SE4SE4 (Unit P) of Section 27 and a last take point in the SW4SW4 (Unit M) of Section 29. Also to be considered will be the cost of drilling and completing the well and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Matador Production Company as operator of the well, and a 200% charge for risk involved in drilling the well. The subject area is located approximately 5 miles north of Loving, New Mexico.

10. 25254 Application of MRC Permian Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 960-acre, more or less, horizontal well spacing unit in the Wolfcamp formation underlying the S2 of Sections 27, 28 and 29, Township 22 South Range 28 East, NMPM, Eddy County, New Mexico. Said unit will be initially dedicated to the following proposed wells to be drilled from a surface location in the SW4 of Section 26:
•    Warrior 2729 Fed Com 203H, with a first take point in the NE4SE4 (Unit I) of Section 27 and a last take point in the NW4SW4 (Unit L) of Section 29, and
•    Warrior 2729 Fed Com 204H, with a first take point in the SE4SE4 (Unit P) of Section 27 and a last take point in the SW4SW4 (Unit M) of Section 29.
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 wells, and a 200% charge for risk involved in drilling the wells. The subject area is located approximately 5 miles north of Loving, New Mexico.
11. 25321 Application of 3R Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted interests in the Wolfcamp formation underlying an 800-acre, more or less, standard horizonal spacing unit comprised of N/2 of Sections 2 and 3 and the NE/4 of Section 4, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 701H well (“Well”), which will be drilled from a surface hole location in the SW/4 NE/4 (Unit G) of Section 4 to a bottom hole location in the NE/4 NE/4 (Unit A) of Section 2. The completed interval of the Well will be orthodox. Also to be considered will be the cost of drilling and completing the Well and the allocation of the costs, the designation of Applicant as the operator of the Well, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 7 miles East of Whites City, New Mexico.
12. 25322 Application of 3R Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant applies for an order pooling all uncommitted interests in the Wolfcamp formation underlying an 800-acre, more or less, standard horizonal spacing unit comprised of the S/2 of Sections 2 and 3 and the SE/4 of Section 4, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 703H well (“Well”), which will be drilled from a surface hole location in the NW/4 SE/4 (Unit J) of Section 4 to a bottom hole location in the SE/4 SE/4 (Unit P) of Section 2. The completed interval of the Well will be orthodox. Also to be considered will be the cost of drilling and completing the Well and the allocation of the costs, the designation of Applicant as the operator of the Well, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 7 miles East of Whites City, New Mexico.
13. 25228 Application of Mewbourne Oil Company for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a non-standard 960-acre, more or less, horizontal well spacing unit in the Bone Spring formation underlying the E/2 of Section 35 and all of Section 36, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico. This spacing unit will be initially dedicated to the proposed Lead Belly 36/35 Fed Com #521H well, with a surface location in the NE/4 SE/4 (Unit I) of Section 36 and bottomhole location in the NW/4 NE/4 (Unit B) of Section 35; Lead Belly 36/35 Fed Com #523H and Lead Belly 36/35 Fed Com #624H well, with a surface location in the NE/4 SE/4 (Unit I) of Section 36 and bottomhole location in the SW/4 NE/4 (Unit G) of Section 35; Lead Belly 36/35 Fed Com #525H and Lead Belly 36/35 Fed Com #626H well, with a surface location in the NE/4 SE/4 (Unit I) of Section 36 and bottomhole location in the NW/4 SE/4 (Unit J) of Section 35; and Lead Belly 36/35 Fed Com #527H, Lead Belly 36/35 Fed Com #622H, and Lead Belly 36/35 Fed Com #628H well, with a surface location in the NE/4 SE/4 (Unit I) of Section 36 and bottomhole location in the SW/4 SE/4 (Unit O) of Section 35. 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 of the proposed spacing unit, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 30 miles northeast of Carlsbad, New Mexico.
14. 25301 Application of PBEX Operations, LLC for Compulsory Pooling and Approval of an Overlapping Spacing Unit, Eddy County and Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 960 acre, more or less, horizontal well spacing unit in the Bone Spring formation comprised of NE/4 of Section 35 and the N/2 of Section 36, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico and the N/2 of Section 31 and NW/4 of Section 32, Township 18 South, Range 32 East, NMPM, Lea County, New Mexico initially dedicated to the proposed Dr. Vogel N 35-32 Fed Com 101H, 102H, 103H, and the Dr. Vogel N 35-23 Fed Com 201H, 203H, and 205H wells to be horizontally drilled as follows:
•    Dr. Vogel N 35-32 Fed Com 101H, which will be drilled from a surface hole location the NE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 330’ from the North Line and 2540’ from the West Line of Section 32 (Unit C), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel N 35-32 Fed Com 102H, which will be drilled from a surface hole location the NE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 1254’ from the North Line and 2540’ from the West Line of Section 32 (Unit C), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel N 35-32 Fed Com 103H, which will be drilled from a surface hole location the NE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 2200’ from the North Line and 2540’ from the West Line of Section 32 (Unit F), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel N 35-32 Fed Com 201H, which will be drilled from a surface hole location the NE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 330’ from the North Line and 2540’ from the West Line of Section 32 (Unit C), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel N 35-32 Fed Com 203H, which will be drilled from a surface hole location the NE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 1254’ from the North Line and 2540’ from the West Line of Section 32 (Unit C), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel N 35-32 Fed Com 205H, which will be drilled from a surface hole location the NE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 2200’ from the North Line and 2540’ from the West Line of Section 32 (Unit F), Township 18 South, Range 32 East, in Lea County, New Mexico.

The spacing unit for these wells will overlap with the spacing units for the: Nervous Horz Com #2H (API No. 30-015-37143) in the E/2 E/2 of Section 36, Township 18 South, Range 31 East; Nervous Horz Com #4H (API No. 30-015-37146) in the W/2 W/2 of Section 36, Township 18 South, Range 31 East; Nervous Horz Com #3H (API No. 30-015-37145) in the W/2 E/2 of Section 36, Township 18 South, Range 31 East; EGL Fed #1 (API No. 30-025-35690) in the NE/NE of Section 31, Township 18 South, Range 32 East; LPC 31 Fed #3 (API No. 30-025-37859) in the SENW of Section 31, Township 18 South, Range 32 East; Hulkster #1 (API No. 30-025-38446) in the NWNEW of Section 36, Township 18 South, Range 21 East; N Lusk 32 St #1 (API No. 30-025-35747) in the NENW of Section 36 in Township 18 South, Range 21 East; SDL Fed Com #1H (API No. 30-025-39537) in the N2NW and NWNE of Section 31, Township 18 South, Range 32 East; LPC 31 Fed #4 (API No. 30-025-38109) in the SWNW of Section 31, Township 18 South, Range 32 East; LPC 31 Fed #2 (API No. 30-025-37857) in the SWNE of Section 31, Township 18 South, Range 32 East; Hulkster #2 (API No. 30-025-38844) in the SWNW of Section 32 in Township 18 South, Range 32 East; Watkins 32 St #1 (API No. 30-025-31735) in the SENW of Section 32, Township 18 South, Range 32 East. Applicant requests approval of the overlapping spacing unit. 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 PBEX Operations, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 30.4 miles Northeast of Carlsbad, New Mexico.
15. 25303 Application of PBEX Operations, LLC for Compulsory Pooling and Approval of an Overlapping Spacing Unit, Eddy County and Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 642.79 acre, more or less, horizontal well spacing unit in the Bone Spring formation comprised of the SE/4 of Section 35 and the S/2 of Section 36, Township 18 South, Range 31 East, NMPM, Eddy County, New Mexico and lots 3-4, E/2 SW/4 of Section 31, Township 18 South, Range 32 East, NMPM, Lea County, New Mexico initially dedicated to the proposed Dr. Vogel SW 35-31 Fed Com 104H, 105H, 106H, and the Dr. Vogel SW 35-31 Fed Com 207H, 209H, and 211H wells to be horizontally drilled as follows:
•    Dr. Vogel SW 35-31 Fed Com 104H, which will be drilled from a surface hole location the SE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 2230’ from the South Line and 2540’ from the West Line of Section 31 (Unit K), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel SW 35-31 Fed Com 105H, which will be drilled from a surface hole location the SE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 1254’ from the South Line and 2540’ from the West Line of Section 31 (Unit N), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel SW 35-31 Fed Com 106H, which will be drilled from a surface hole location the SE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 330’ from the South Line and 2540’ from the West Line of Section 31 (Unit N), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel SW 35-31 Fed Com 207H, which will be drilled from a surface hole location the SE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 2230’ from the South Line and 2540’ from the West Line of Section 31 (Unit K), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel SW 35-31 Fed Com 209H, which will be drilled from a surface hole location the SE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 1254’ from the South Line and 2540’ from the West Line of Section 31 (Unit N), Township 18 South, Range 32 East, in Lea County, New Mexico.
•    Dr. Vogel SW 35-31 Fed Com 211H, which will be drilled from a surface hole location the SE/4 of Section 35, Township 18 South, Range 31 East, in Eddy County New Mexico to a bottom hole located 330’ from the South Line and 2540’ from the West Line of Section 31 (Unit N), Township 18 South, Range 32 East, in Lea County, New Mexico.

The spacing unit for these wells will overlap with the spacing units for the: Nervous Horz Com #2H (API No. 30-015-37143) in the E/2 E/2 of Section 36, Township 18 South, Range 31 East; Nervous Horz Com #4H (API No. 30-015-37146) in the W/2 W/2 of Section 36, Township 18 South, Range 31 East; Nervous Horz Com #3H (API No. 30-015-37145) in the W/2 E/2 of Section 36, Township 18 South, Range 31 East; Lusk 31 Fed #2 (API No. 30-025-39079) in the NESW of Section 31, Township 18 South, Range 32 East; Eddy JP St Com #1 (API No. 30-015-23504) in the SESW of Section 36, Township 18 South, Range 31 East. Applicant requests approval of the overlapping spacing unit. 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 PBEX Operations, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 30.1 miles Northeast of Carlsbad, New Mexico.
16. 25312 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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