N.M. Admin. Code § 19.15.9.9 - CHANGE OF OPERATOR
A. A
change of operator occurs when the entity responsible for a well or a group of
wells changes. A change of operator may result from a sale, assignment by a
court, a change in operating agreement or other transaction. Under a change of
operator, wells are moved from the OGRID number of the operator of record with
the division to the new operator's OGRID number.
B. The operator of record with the division
and the new operator shall apply for a change of operator by jointly filing a
form C-145 using the division's web-based online application. If the operator
of record with the division is unavailable, the new operator shall apply to the
division for approval of change of operator without a joint application. The
operator shall make such application in writing and provide documentary
evidence of the applicant's right to assume operations. The new operator shall
not commence operations until the division approves the application for change
of operator.
C. The director or the
director's designee may deny a change of operator if:
(1) the new operator is not in compliance
with Subsection A of
19.15.5.9 NMAC; or
(2) the new operator is acquiring wells,
facilities or sites subject to a compliance order requiring remediation or
abatement of contamination, or compliance with
19.15.25.8 NMAC, and the new
operator has not entered into an agreed compliance order setting a schedule for
compliance with the existing order.
D. In determining whether to grant or deny a
change of operator when the new operator is not in compliance with Subsection A
of 19.15.5.9 NMAC, the director or
the director's designee shall consider such factors as whether the
non-compliance with Subsection A of
19.15.5.9 NMAC is caused by the
operator not meeting the financial assurance requirements of 19.15.8 NMAC,
being subject to a division or commission order finding the operator to be in
violation of an order requiring corrective action, having a penalty assessment
that has been unpaid for more than 70 days since the issuance of the order
assessing the penalty or having more than the allowed number of wells out of
compliance with
19.15.25.8 NMAC. If the
non-compliance is caused by the operator having more than the allowed number of
wells not in compliance with
19.15.25.8 NMAC, the director or
director's designee shall consider the number of wells not in compliance, the
length of time the wells have been out of compliance and the operator's efforts
to bring the wells into compliance.
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