N.M. Admin. Code § 19.15.15.9 - OIL WELL ACREAGE AND WELL LOCATION REQUIREMENTS
A. A wildcat well that the operator projects
to drill as an oil well to a formation and in an area that in the division's
opinion may reasonably be presumed to produce oil rather than gas, and each
development well for a defined oil pool unless otherwise provided in special
pool orders, shall be located on a spacing unit consisting of approximately 40
contiguous surface acres, substantially in the form of a square that is a legal
subdivision of the United States public land surveys and is a governmental
quarter-quarter section or lot, and shall be located no closer than 330 feet to
a boundary of the unit. Unless otherwise provided in applicable special pool
order, a 40-acre oil spacing unit may contain up to four wells. Only those
40-acre spacing units committed to active secondary recovery projects shall be
permitted more than four wells.
B.
If a well drilled as an oil well is completed as a gas well but does not
conform to the applicable gas well location requirements, the operator shall
apply for administrative approval for a non-standard location before the well
can produce. The director may set the application for
hearing.
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