OCD Permitting

PRELIMINARY DOCKET: Special Examiner Hearing for January 14, 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. 24798 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy 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 in a standard 320-acre, more or less, horizontal spacing and proration unit (“HSU”) comprised of the S/2 N/2 of Sections 14 and 13, T22S-R26E, in Eddy County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: Outlaw 14 Fed Com 122H well (SBSG), to be horizontally drilled from an approximate surface hole location within the E/2 NE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 1650’ FNL of Section 13, T22S-R26E; and Outlaw 14 Fed Com 132H well (TBSG), to be horizontally drilled from an approximate surface hole location within the E/2 NE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 1650’ FNL of Section 13, T22S-R26E. 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 1 mile West of Carlsbad, New Mexico.
2. 24800 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy 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 in a standard 320-acre, more or less, horizontal spacing and proration unit (“HSU”) comprised of the N/2 N/2 of Sections 14 and 13, T22S-R26E, in Eddy County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: Outlaw 14 Fed Com 121H well (SBSG), to be horizontally drilled from an approximate surface hole location within the E/2 NE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 330’ FNL of Section 13, T22S-R26E; and Outlaw 14 Fed Com 131H well (TBSG), to be horizontally drilled from an approximate surface hole location within the E/2 NE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 330’ FNL of Section 13, T22S-R26E. 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 1 mile West of Carlsbad, New Mexico.
3. 24803 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy 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 in a standard 320-acre, more or less, horizontal spacing and proration unit (“HSU”) comprised of the S/2 S/2 of Sections 14 and 13, T22S-R26E, in Eddy County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: Outlaw 14 Fed Com 124H well (SBSG), to be horizontally drilled from an approximate surface hole location within the E/2 SE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 990’ FSL of Section 13, T22S-R26E; and Outlaw 14 Fed Com 134H well (TBSG), to be horizontally drilled from an approximate surface hole location within the E/2 SE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 990’ FSL of Section 13, T22S-R26E. 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 1 mile West of Carlsbad, New Mexico.
4. 24804 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy 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 in a standard 320-acre, more or less, horizontal spacing and proration unit (“HSU”) comprised of the N/2 S/2 of Sections 14 and 13, T22S-R26E, in Eddy County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: Outlaw 14 Fed Com 123H well (SBSG), to be horizontally drilled from an approximate surface hole location within the E/2 SE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 2310’ FSL of Section 13, T22S-R26E; and Outlaw 14 Fed Com 133H well (TBSG), to be horizontally drilled from an approximate surface hole location within the E/2 SE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 2310’ FSL of Section 13, T22S-R26E. 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 1 mile West of Carlsbad, New Mexico.
5. 24805 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy 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 in a standard 640-acre, more or less, horizontal spacing and proration unit (“HSU”) comprised of the N/2 of Sections 14 and 13, T22S-R26E, in Eddy County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: Outlaw 14 Fed Com 221H well, to be horizontally drilled from an approximate surface hole location within the E/2 NE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 990’ FNL of Section 13, T22S-R26E; and Outlaw 14 Fed Com 222H well, to be horizontally drilled from an approximate surface hole location within the E/2 NE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 2310’ FNL of Section 13, T22S-R26E. 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 1 mile West of Carlsbad, New Mexico.
6. 24806 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy 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 in a standard 640-acre, more or less, horizontal spacing and proration unit (“HSU”) comprised of the S/2 of Sections 14 and 13, T22S-R26E, in Eddy County, New Mexico. Applicant proposes to drill the following 2-mile wells in the HSU: Outlaw 14 Fed Com 223H well, to be horizontally drilled from an approximate surface hole location within the E/2 SE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 1650’ FSL of Section 13, T22S-R26E; and Outlaw 14 Fed Com 224H well, to be horizontally drilled from an approximate surface hole location within the E/2 SE/4 of Section 15, T22S-R26E, to an approximate bottom hole location 100’ FEL and 330’ FSL of Section 13, T22S-R26E. 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 1 mile West of Carlsbad, New Mexico.
7. 24945 Application of Avant Operating, LLC for approval of a non-standard unit, compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit, Lea County, New Mexico. Applicant seeks an order from the Division (a) approving a non-standard 640-acre spacing unit; (b) pooling all uncommitted interests within a 640-acre, more or less, Bone Spring horizontal spacing unit comprised of the N/2 of Sections 32 and 33, Township 18 South, Range 32 East, N.M.P.M., Lea County, New Mexico in the LUSK;BONE SPRING, NORTH (41450) pool; and (c) to the extent necessary, approving an overlapping spacing unit. This spacing unit will be dedicated to the Lobo Loco 34 Fed Com 303H, Lobo Loco 34 Fed Com 503H, and Lobo Loco 34 Fed Com 603H wells with proposed surface hole locations in the NE/4 NW/4 (Unit C) of Section 34 and proposed bottom hole locations in the SW/4 NW/4 (Unit E) of Section 32; and the Lobo Loco 34 Fed Com 301H, Lobo Loco 34 Fed Com 302H, Lobo Loco 34 Fed Com 501H, Lobo Loco 34 Fed Com 502H, Lobo Loco 34 Fed Com 601H,and Lobo Loco 34 Fed Com 602H wells with proposed surface hole locations in the NE/4 NW/4 (Unit C) of Section 34 and proposed bottom hole locations in the NW/4 NW/4 (Unit D) of Section 32. The wells will be drilled at orthodox locations. This proposed spacing unit will overlap the following existing spacing units operated by Raybaw Operating, LLC:
•    A 40-acre spacing unit comprised of the NE4NE4 of Section 32 dedicated to the Hulkster No. 4 (30-025-39571);
•    A 40-acre spacing unit comprised of the NW4NE4 of Section 32 dedicated to the Hulkster No. 3 (30-025-39570);
•    A 40-acre spacing unit comprised of the NE4NW4 of Section 32 dedicated to the N. Lusk 32 State No. 1 (30-025-35747);
•    A 40-acre spacing unit comprised of the NW4NW4 of Section 32 dedicated to the Hulkster No. 1 (30-025-38446);
•    A 40-acre spacing unit comprised of the SW4NW4 of Section 32 dedicated to the Hulkster No. 2 (30-025-38844);
•    A 40-acre spacing unit comprised of the SE4NW4 of Section 32 dedicated to the Watkins 32 State No. 1 (30-025-31735);
•    A 40-acre spacing unit comprised of the SW4NE4 of Section 32 dedicated to the Max State No. 1 (30-025-26754); and
•    A 40-acre spacing unit comprised of the SE4NE4 of Section 32 dedicated to the Hulkster No. 5 (30-025-39572).
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 10 miles south of Maljamar, New Mexico.
8. 24946 Application of Avant Operating, LLC for approval of a non-standard unit, compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit, Lea County, New Mexico. Applicant seeks an order from the Division (a) approving a non-standard 640-acre spacing unit; (b) pooling all uncommitted interests within a 640-acre, more or less, Bone Spring horizontal spacing unit comprised of the S/2 of Sections 32 and 33, Township 18 South, Range 32 East, N.M.P.M., Lea County, New Mexico in the LUSK;BONE SPRING, NORTH (41450) pool; and (c) to the extent necessary, approving an overlapping spacing unit. This spacing unit will be dedicated to the Lobo Loco 34 Fed Com 304H, Lobo Loco 34 Fed Com 305H, Lobo Loco 34 Fed Com 504H and Lobo Loco 34 Fed Com 604H wells with proposed surface hole locations in the SE/4 SW/4 (Unit N) of Section 34 and proposed bottom hole locations in the NW/4 SW/4 (Unit L) of Section 32; and the Lobo Loco 34 Fed Com 306H, Lobo Loco 34 Fed Com 505H, Lobo Loco 34 Fed Com 506H, Lobo Loco 34 Fed Com 605H, and Lobo Loco 34 Fed Com 606H wells with proposed surface hole locations in the SE/4 SW/4 (Unit N) of Section 34 and proposed bottom hole locations in the SW/4 SW/4 (Unit M) of Section 32. The wells will be drilled at orthodox locations. This proposed spacing unit will overlap the following existing spacing units:
•    A 40-acre spacing unit comprised of the NW/4 SW/4 of Section 32 dedicated to OXY USA Inc’s North Lusk 32 State #001 (30-025-35748);
•    A 40-acre spacing unit comprised of the SW/4 SW/4 of Section 32 dedicated to OXY USA Inc’s North Lusk 32 State #005 (30-025-36982);
•    A 40-acre spacing unit comprised of the NE/4 SW/4 of Section 32 dedicated to OXY USA Inc’s North Lusk 32 State #003 (30-025-36953);
•    An 80-acre spacing unit comprised of the SE/4 SW/4 and the SW/4 SE/4 of Section 32 dedicated to COG Operating LLC’s Lear State #002H (30-025-38866);
•    An 80-acre spacing unit comprised of the E/2 SE/4 of Section 32 dedicated to COG Operating LLC’s Lear State #001H (30-025-38865);
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 10 miles south of Maljamar, New Mexico.
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