OCD Permitting

PRELIMINARY DOCKET: Examiner Hearing for April 24, 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. 25035 Application of MRC Permian Company for Approval of an Overlapping Horizontal Well Spacing Unit and Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order (a) approving a standard 799.19-acre, more or less, overlapping horizontal well spacing unit in the Bone Spring formation underlying the E2 of Sections 3 and 10, Township 21 South, Range 32 East, NMPM, Lea County, New Mexico, and (b) pooling the uncommitted mineral owners therein. Said unit will be initially dedicated to the following proposed wells:
•    Electra Special 0310 Fed Com 123H and Electra Special 0310 Fed Com 137H wells to be horizontally drilled from a surface location in the NE4 of Section 3, with first take points in the NW4NE4 (Lot 2) of irregular Section 3 and last take points in the SW4SE4 (Unit O) of Section 10; and
•    Electra Special 0310 Fed Com 124H, Electra Special 0310 Fed Com 133H and Electra Special 0310 Fed Com 138H wells to be horizontally drilled from a surface location in the NE4 of Section 3, with first take points in the NE4NE4 (Lot 1) of irregular Section 3 and last take points in the SE4SE4 (Unit P) of Section 10.
The completed interval of the Electra Special 0310 Fed Com 133H well is expected to remain within 330 feet of the offsetting quarter-quarter sections or equivalent tracts to allow inclusion of this acreage in a standard horizontal well spacing unit. This proposed horizonal well spacing unit will overlap an existing spacing unit in the Bone Spring formation underlying the E2E2 of Section 10 dedicated to the Hat Mesa 10 Fed Com 2H (30-025-40365) well currently operated by Cimarex Energy Company of Colorado. 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 33 miles northeast of Carlsbad, New Mexico.
2. 25037 Application of MRC Permian Company for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 399.73-acre, more or less, horizontal well spacing unit in the Wolfcamp formation underlying the W2E2 of Sections 3 and 10, Township 21 South, Range 32 East, NMPM, Lea County, New Mexico. Said unit will be initially dedicated to the following proposed Electra Special 0310 Fed Com 203H well to be horizontally drilled from a surface location in the NE4 of Section 3, with a first take point in the NW4NE4 (Lot 2) of irregular Section 3 and a last take point in the SW4SE4 (Unit O) of Section 10. 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 33 miles northeast of Carlsbad, New Mexico.
3. 25038 Application of MRC Permian Company for Compulsory Pooling, Lea County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 399.46-acre, more or less, horizontal well spacing unit in the Wolfcamp formation underlying the E2E2 of Sections 3 and 10, Township 21 South, Range 32 East, NMPM, Lea County, New Mexico. Said unit will be initially dedicated to the proposed Electra Special 0310 Fed Com 204H well to be horizontally drilled from a surface location in the NE4 of Section 3, with a first take point in the NE4NE4 (Lot 1) of irregular Section 3 and a last take point in the SE4SE4 (Unit P) of Section 10. 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 33 miles northeast of Carlsbad, New Mexico.

4. 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.
5. 25272 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 1,920-acre, more or less, standard horizontal spacing and proration unit composed of all of Section 34, Township 25 South, Range 25 East, N.M.P.M., and all of Sections 3 and 10, Township 26 South, Range 25 East, N.M.P.M.; and (2) pooling all uncommitted mineral interests in the Purple Sage-Wolfcamp Gas Pool, designated as a gas pool, underlying said unit. The proposed wells to be dedicated to the horizontal spacing unit are the: PBR Fed Com 202H (API No. Pending), which is a gas well that will be horizontally drilled from a surface location in the NW/4 NE/4 (Unit B) of Section 34, Township 25 South, Range 25 East, to a bottom hole location in the Purple Sage-Wolfcamp Gas Pool in the SE/4 SW/4 (Unit N) of Section 10, Township 26 South, Range 25 East; the PBR Fed Com 204H (API No. Pending), which is a gas well that will be horizontally drilled from a surface location in the NW/4 NE/4 (Unit B) of Section 34, Township 25 South, Range 25 East, to a bottom hole location in the Purple Sage-Wolfcamp Gas Pool in the SE/4 SE/4 (Unit P) of Section 10, Township 26 South, Range 25 East; the PBR Fed Com 211H (API No. Pending), which is a gas well that will be horizontally drilled from a surface location in the NW/4 NE/4 (Unit B) of Section 34, Township 25 South, Range 25 East, to a bottom hole location in the Purple Sage-Wolfcamp Gas Pool in the SW/4 SW/4 (Unit M) of Section 10, Township 26 South, Range 25 East, and; the PBR Fed Com 213H (API No. Pending), which is a gas well that will be horizontally drilled from a surface location in the NW/4 NE/4 (Unit B) of Section 34, Township 25 South, Range 25 East, to a bottom hole location in the Purple Sage-Wolfcamp Gas Pool in the SW/4 SE/4 (Unit O) of Section 10, Township 26 South, Range 25 East. The wells are orthodox in location, and the take points and laterals comply with Statewide Rules for setbacks. The wells and lands are located approximately 6 miles southwest from Whites City, New Mexico.
6. 25263 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 a 400-acre, more or less, standard horizonal spacing unit comprised of the N/2 NE/4 of Section 4, and the N/2 N/2 of Sections 2 and 3, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 701H and Boudin 4 2 Fed Com 801H wells (“Wells”), which will be drilled from surface hole locations in the SW/4 NE/4 (Unit G) of Section 4 to bottom hole locations in the NE/4 NE/4 (Unit A) of Section 2. 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 7 miles East of White City, New Mexico.
7. 25264 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 a 400-acre, more or less, standard horizonal spacing unit comprised of the N/2 SE/4 of Section 4, and the N/2 S/2 of Sections 2 and 3, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 703H and Boudin 4 2 Fed Com 803H wells (“Wells”), which will be drilled from surface hole locations in the NW/4 SE/4 (Unit J) of Section 4 to bottom hole locations in the NE/4 SE/4 (Unit I) of Section 2. 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 7 miles East of Whites City, New Mexico.
8. 25265 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 a 400-acre, more or less, standard horizonal spacing unit comprised of the S/2 NE/4 of Section 4, and the S/2 N/2 of Sections 2 and 3, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 702H and Boudin 4 2 Fed Com 802H wells (“Wells”), which will be drilled from surface hole locations in the SW/4 NE/4 (Unit G) of Section 4 to bottom hole locations in the SE/4 NE/4 (Unit H) of Section 2. 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 7 miles East of Whites City, New Mexico.
9. 25266 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 a 400-acre, more or less, standard horizonal spacing unit comprised of the S/2 SE/4 of Section 4, and the S/2 S/2 of Sections 2 and 3, Township 25 South, Range 26 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Boudin 4 2 Fed Com 704H and Boudin 4 2 Fed Com 804H wells (“Wells”), which will be drilled from surface hole locations in the NW/4 SE/4 (Unit J) of Section 4 to bottom hole locations in the SE/4 SE/4 (Unit P) of Section 2. 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 7 miles East of Whites City, New Mexico.
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