N.M. Admin. Code § 19.15.22.9 - APPLICATION FOR HARDSHIP GAS WELL CLASSIFICATION

A. An operator shall apply for hardship gas well classification in the form the division prescribes and shall include the following:

(1) a narrative description of the problems that lead the applicant to believe that underground waste will occur if the well is shut-in or curtailed below its ability to produce;

(2) documentation that the applicant has made all reasonable and economic attempts to eliminate or correct the problem or an explanation and justification as to why the applicant did not make such attempts;

(3) a well bore sketch;

(4) historical data such as permanent loss of productivity after shut-in, frequency and actual costs of swabbing after shut-in or curtailment including length of swab time required, actual cost figures showing the inability to continue operations without special relief or other data that would show that shut-in or curtailment would cause underground waste;

(5) if failure to obtain a hardship gas well classification would result in the well's premature abandonment, a calculation of the reserves that would be lost by the failure;

(6) the minimum sustainable producing rate as determined by a minimum flow or log-off test or documentation of well production history;

(7) a plat or map showing the proration unit dedicated to the well and the offsetting acreage's ownership;

(8) the name of the authorized transporter (and purchaser if different) of gas; and

(9) other data the applicant considers relevant.

B. The operator shall file an application for hardship gas well classification with the division's Santa Fe office and send a copy to the appropriate division district office.

C. In addition, the applicant shall notify the transporter and purchaser of gas from the well and all offset operators of the application and the requested minimum producing rate and shall so certify to the division in the application.

Notes

N.M. Admin. Code § 19.15.22.9

19.15.22.9 NMAC - Rp, 19.15.6.409 NMAC, 12/1/08