PRELIMINARY DOCKET: Special OCD Examiner's Hearing set for July 28, 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.	25996	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.
2.	26129	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 base of the Second Bone Spring formation at an approximate depth of 9,338’ to the base of the Bone Spring formation, 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 #601H 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 #602H 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; the Moonwatch 17 8 State Com #603H 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 #604H well with a proposed surface hole location in the SE/4 SE/4 (Unit P) 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. This proposed horizontal spacing unit will overlap the following existing spacing units in the Bone Spring formation: a 40-acre spacing unit in the NW/4 SW/4 of Section 17, and dedicated to the Deep Jack 1 well (API 30-025-41499) [Pool code 97930]; a 40-acre spacing unit in the SWSE of Section 17, and dedicated to the Barbara State 2 well (API 30-025-41757) [Pool code 97930]; and a 40-acre spacing unit in the SESW of Section 17, and dedicated to the Hustle State 1 well (API 30-025-53096) [Pool code 97930]. 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.
3.	26130	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 Cisco formation, 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 #801H 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 #802H 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 Moonwatch 17 8 State Com #831H well with a proposed surface hole location in the SE/4 SE/4 (Unit P) of Section 17, and a proposed last take point in the NE/4 SE/4 (Unit I) of Section 8; and the Moonwatch 17 8 State Com #832H well with a proposed surface hole location in the SE/4 SW/4 (Unit N) of Section 17, and a proposed last take point in the NE/4 SW/4 (Unit K) of Section 8. The wells will be drilled at orthodox locations. This proposed horizontal spacing unit will overlap the following existing spacing units in the Cisco formation: a 40-acre spacing unit in the SESE of Section 8, and dedicated to the Mid Vac 8 State 1 well (API 30-025-42457) [Pool code 61780]; and a 40-acre spacing unit in the SWSE of Section 8, and dedicated to the State AF 2 well (API 30-025-20979) [Pool code 61780]. 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.
4.	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.
5.	26010	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.