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. 26133 Application of High Plains Natural Resources, LLC for Compulsory Pooling and Approval of Overlapping Spacing Unit, Lea County, New Mexico. Applicant seeks an order pooling all uncommitted interests in the San Andres formation, underlying a 320-acre, more or less, standard horizontal spacing unit comprised of all the W/2 E/2 of irregular Sections 11 and 14, Township 13 South, Range 38 East, Lea County, New Mexico (“Unit”). The Unit will be dedicated to the Gale-Fring Federal Com 3H well (“Well”), which will produce from a first take point in the NW/4 NE/4 (Unit B) of Section 11 to a last take point in the SW/4 SE/4 (Unit O) of Section 14. The completed interval of the Well will be orthodox. The Unit will partially overlap with the spacing unit for the Gale Federal #002H well (API No. 30-025-52292), which is located in the E/2 of irregular Section 11, Township 13 South, Range 38 East, Lea County, and produces from the Bronco; San Andres, South Pool (Code 7500). The Unit will also partially overlap with the spacing unit for the Fring Federal #2H well (API No. 30-025-50202), which is located in the W/2 E/2 and Lots 1, 2, 3, and 4 of irregular Section 14, Township 13 South, Range 38 East, Lea County, and produces from the Bronco; San Andres, South Pool (Code 7500). Applicant further requests that the Division designate Burk Royalty Co., LTD (OGRID No. 3053) as the operator of the Unit and the Well. Also to be considered will be the cost of drilling and completing the Well, the allocation of the costs, the designation of Applicant as operator of the Well and the Unit, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 14.8 miles southeast of Tatum, New Mexico.
2. 26157 Application of Permian Resources Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant seeks an order pooling all uncommitted interests in the Second Bone Spring Interval of the Bone Spring formation underlying a 480-acre, more or less, standard horizontal spacing unit comprised of the N/2 of Section 15, and N/2 N/2 of Section 16, Township 20 South, Range 28 East, Eddy County, New Mexico (“Unit”). The Unit will be dedicated to the Fosters 16-15 Fed Com 131H j-turn well (“Well”), which will produce from a first take point in the NW/4 NW/4 (Unit D) of Section 16 to a last take point in the SW/4 NW/4 (Unit E) of Section 15. The completed interval of the Well will be orthodox. Applicant seeks to pool only those uncommitted interests from the top of the Second Bone Spring Interval of the Bone Spring Formation, at a stratigraphic equivalent of approximately 6,591’ TVD, to the base of the Second Bone Spring Interval, at a stratigraphic equivalent of approximately 7,543’ TVD, as shown on the Oxy Bulldog State #1 (API No. 30-015-2934) well log. Also to be considered will be the cost of drilling and completing the Well and the allocation of the cost, the designation of Applicant as operator of the Well, and a 200% charge for the risk involved in drilling and completing the Well. The Well is located approximately 10 miles northeast of Carlsbad, New Mexico.
3. 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.
4. 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.
5. 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.
6. 26062 Application of Coterra Energy Operating Co. for Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order pooling all uncommitted interest within the Bone Spring formation, underlying a 560-acre, more or less, standard horizontal well spacing unit comprised of the W/2 W/2 of Sections 17, 20, and 29, and the W/2 SW/4 of Section 8, located in Township 18 South, Range 35 East, NMPM, Lea County, New Mexico (the “Unit”). The Unit will be dedicated to the following wells (the “Wells”): Ball State Com 501H well, which will be horizontally drilled from a surface hole location in the SW/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 850’ FWL of Section 8, Township 18 South, Range 35 East; Ball State Com 601H well, which will be horizontally drilled from a surface hole location in the SW/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 360’ FWL of Section 8, Township 18 South, Range 35 East, NMPM, Lea County, New Mexico. The completed interval 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 cost, the designation of Applicant as the operator of the Wells and Unit, and a 200% charge for the risk involved in drilling and completing the Wells against any working interest owner who does not voluntarily participate. The Wells are located approximately 20 miles west of Hobbs, New Mexico.
7. 26063 Application of Coterra Energy Operating Co. for Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order pooling all uncommitted interest within the Bone Spring formation, underlying a 560-acre, more or less, standard horizontal well spacing unit comprised of the E2W2 of Sections 17, 20, and 29 and the E/2 SW/4 of Section 8, located in Township 18 South, Range 35 East, NMPM, Lea County, New Mexico (the “Unit”). The Unit will be dedicated to the following wells (the “Wells”): Ball State Com 502H well, which will be horizontally drilled from a surface hole location in the SW/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 2025’ FWL of Section 8, Township 18 South, Range 35 East; Ball State Com 602H well, which will be horizontally drilled from a surface hole location in the SW/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 1690’ FWL of Section 8, Township 18 South, Range 35 East. Also, to be considered will be the cost of drilling and completing the Wells and the allocation of the cost, the designation of Applicant as the operator of the Wells and Unit, and a 200% charge for the risk involved in drilling and completing the Wells against any working interest owner who does not voluntarily participate. The Wells are located approximately 20 miles west of Hobbs, New Mexico.
8. 26064 Application of Coterra Energy Operating Co. for Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order pooling all uncommitted interest within the Bone Spring formation, underlying a 560-acre, more or less, standard horizontal well spacing unit comprised of the E/2 E/2 of Sections 17, 20, and 29, and the E/2 SE/4 of Section 8, located in Township 18 South, Range 35 East, NMPM, Lea County, New Mexico (the “Unit”). The Unit will be dedicated to the following wells (the “Wells”): Ball State Com 504H well, which will be horizontally drilled from a surface hole location in the SE/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 360’ FEL of Section 8, Township 18 South, Range 35 East; Ball State Com 604H well, which will be horizontally drilled from a surface hole location in the SE/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 925’ FEL of Section 8, Township 18 South, Range 35 East. Also, to be considered will be the cost of drilling and completing the Wells and the allocation of the cost, the designation of Applicant as the operator of the Wells and Unit, and a 200% charge for the risk involved in drilling and completing the Wells against any working interest owner who does not voluntarily participate. The Wells are located approximately 20 miles west of Hobbs, New Mexico.
9. 26065 Application of Coterra Energy Operating Co. for Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order pooling all uncommitted interest within the Bone Spring Formation, underlying a 560-acre, more or less, standard horizontal well spacing unit comprised of the W/2 E/2 of Sections 17, 20, and 29, and the W/2 SE/4 of Section 8, located in Township 18 South, Range 35 East, NMPM, Lea County, New Mexico (the “Unit”). The Unit will be dedicated to the following wells (the “Wells”): Ball State Com 503H well, which will be horizontally drilled from a surface hole location in the SE/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 1780’ FEL of Section 8, Township 18 South, Range 35 East; Ball State Com 603H well, which will be horizontally drilled from a surface hole location in the SE/4 of Section 29, Township 18 South, Range 35 East, to a bottom hole location 2540’ FSL and 2290’ FEL of Section 8, Township 18 South, Range 35 East. Also to be considered will be the cost of drilling and completing the Wells and the allocation of the cost, the designation of Applicant as the operator of the Wells and Unit, and a 200% charge for the risk involved in drilling and completing the Wells against any working interest owner who does not voluntarily participate. The Wells are located approximately 20 miles west of Hobbs, New Mexico.
10. 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.
11. 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.
12. 25894 Unresolved Alleged Violations of: 19.15.29.8, 19.15.29.11, 19.15.29.12, 19.15.29.16 and 19.15.5.11 NMAC
13. 25895 Unresolved Alleged Violations of: 19.15.27.8, 19.15.29.8, 19.15.29.9, 19.15.29.10, 19.15.34.20 and 19.15.25.8(B) NMAC
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