N.M. Admin. Code § 19.2.100.53 - COMMINGLING AND OFF-LEASE STORAGE OF OIL AND GAS ON STATE TRUST LANDS

A. Commingling prohibited: Unless approved pursuant to Subsection B of 19.2.100.53 NMAC, the commingling, confusion or the intercommunication of oil or gas production from any state well with any production from any other well, whether state or non-state, by the use of common tankage facilities or central delivery points, is strictly prohibited.

B. Commingling allowed - off-lease storage:

(1) Commingling of oil and gas production, including downhole commingling, if properly metered or allocated and accounted for, may be permitted within the discretion of the commissioner only after the commissioner's receipt of a written application containing the information specified in Subsection C of 19.2.100.53 NMAC and an application fee as set forth in the schedule of fees.

(2) Off-lease storage of production may be permitted if properly metered or allocated and accounted for, within the discretion of the commissioner only after the commissioner's receipt of a written application containing the information specified in Subsection C of 19.2.100.53 NMAC and an application fee as set forth in the schedule of fees.

C. Application for permission to commingle or off-lease store production. Applications for permission to commingle or off-lease store production shall be directed to the commissioner and shall include:

(1) formal application stating the type of permission desired and the reasons therefor, accompanied by an application fee as set forth in the schedule of fees;

(2) plat showing the location of leases, wells, flow lines, metering facilities and common tankage. All plats and diagrams should differentiate between surface and underground pipe;

(3) a list of the involved leases arranged by their state land office lease number, their legal description and including state beneficiaries;

(4) a designation of the pool from which each well produces;

(5) an economic analysis of proposed operation showing profit or loss to the state of New Mexico;

(6) schematic diagram of entire system from production manifold to pipeline connection showing position of all components of flow stream;

(7) description of the operating sequence explaining the complete operation;

(8) the applicant's proposal for allocating or metering production so that all production is properly accounted for at the well; and

(9) any other pertinent data that will assist the commissioner in deciding upon the application.

Notes

N.M. Admin. Code § 19.2.100.53

19.2.100.53 NMAC - Rn, SLO Rule 1, Sections 1.053, 1.054, 1.055, 12/13/2002, Adopted by New Mexico Register, Volume XXVII, Issue 12, June 30, 2016, eff. 6/30/2016, Amended by New Mexico Register, Volume XXX, Issue 11, June 11, 2019, eff. 6/11/2019