SUMMARY Why d y does NM h have an n Oil & & Gas - - PowerPoint PPT Presentation
SUMMARY Why d y does NM h have an n Oil & & Gas Commission a and nd R Rul ules? Cle leanup a and stre reamli line exist sting ru rule les. s. (Desi signer D r Dri riven) Facil ilit itat ate d diagonal nal
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y does NM h have an n Oil & & Gas Commission a and nd R Rul ules?
leanup a and stre reamli line exist sting ru rule les.
signer D r Dri riven)
ilit itat ate d diagonal nal horizont ntal al p projects ( (Trans nsverse).
educe h e heel eel a and toe s e setbacks.
minate allo llowable les.
rease se f fle lexi xibi bili lity.
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med in 1935 to em empo power mem member s states c collectively t to s set pr production quotas us using ng sup upply & & demand d data ta f fur urni nished by f y federal g government
lahoma, Texas, s, New Mexico, I , Illi llinois, C s, Colo lora rado, K , Kansas i s initial membe bers a s and 24 ad addit itional states h have s sin ince jo join ined
gas by t the he p prevention of
waste th thereof from a any y caus use
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s far a as i s it i is p s practicable to
wner of
prop
in a poo
to
without w wast ste t the own wner’s j just st a and eq equitabl able e shar are e of t the e oil or g gas as in t the p e pool, bei being an an am amount, so f far ar as as can an be be prac actical ally deter ermined ed, an and so far ar as as can an be be prac acticabl bly o
btai ained w without w was aste, e, substa tanti tially i in th the proporti tion th that t th the quantity ty o
f recoverable o
the property b bears t s to t
total recoverable oi
gas s in t the p poo
and f for
the p purpose to u
se the o
wner’s just st and equitable sh share of
the r rese servoir e energy.
ste: 1 1) underground ( (rese servoir) wast ste: t the inefficient, excess ssive or
use se or
dissi ssipation of
rese servoir energy i including gas s energy and w water d drive, of
a poo
and the lo locating, s spa pacing, d drilli lling, e equi uipping, o
perating o
producing o
ll or wells lls in n a manner to
to
the total q quantity of
s ultimately recovered from a a pool, a and d the inefficient u unde dergr ground s d storage ge of ga gas. 2) su surface wast ste: the unnecessary or
ssive su surface loss
struction wi without beneficial u use se.
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an n und underground nd reservoir c cont ntaini ning a a common a accumulation o
unit: th the a area a allocated to a a well und under a a well s spacing o
ule.
tion n uni unit: th the area i in n a pool th that can b n be e effectively a and nd e efficiently y draine ned by y
e wel ell as deter ermined ed by t the d e division o
mmission; t the e area ea a assigned t to a an indivi vidual well f ll for r the purpose ses o s of allo llocating allo llowable le p production p pursuant t to proratio ioni ning ng or
for
the he p pool
llowabl ble production: n : numbe ber r of barre rrels o ls of oil l or r cubi bic f feet o
the divisi sion author
to b
prod
from
ratio: the r e ratio o
the c e casinghead g gas pr produced i in standard c cubic f fee eet t to t the e num number o
ncurrently p y produc uced d dur uring ng any y sta tated p period.
1 mile Pool Buffer Discovery Well: State NPA #1 Scharb Bone Springs Oil Pool Rules - Order R-2589 (10.30.1963):
more or less, has been filed if no objections from offset affected parties occur within 30 days of receipt of said application
section, and all wells shall be located within 200 feet of the center of a governmental quarter-quarter section
allowable per 80 acre standard proration unit Order - R-2589-C (04.13.1983):
Original Scharb Bone Springs Oil Pool
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660' 1320' 2640' 2640' #1 well #4H well 330' 330' #2 well 60 640 640 33 33 33 3 l
Non-Standard Spacing / Proration Unit: 40 acres versus 80 acres would require exception / NMOCD approval Non-Standard Spacing / Proration Unit & Non-Standard Location: FTP: 330' FNL & 330' FEL; LTP: 330' FSL & 330' FEL: would have to apply for Non-Standard Spacing / Proration Unit and Non-Standard Location exception and subject to protest from offsets and interested parties
POOL DEPTH RANGE 40 ACRES 80 ACRES 160 ACRES 0 - 4999' 80 160 5000 - 5999' 107 187 347 6000 - 6999' 142 222 382 7000 - 7999' 187 267 427 8000 - 8999' 230 310 470 9000 - 9999' 275 355 515 10,000 - 10,999' 320 400 560 11,000 - 11,999' 365 445 605 12,000 - 12,999' 410 490 650 13,000 - 13,999' 455 535 695 14,000 - 14,999' 500 580 740 15,000 - 15,999' 545 625 785 16,000 - 16,999' 590 670 830 17,000 and deeper 635 715 875 DEPTH BRACKET ALLOWABLE
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~1,120’ of additional treated lateral in 2 mile wells
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ct means “a legal subdivision of the United States public survey substantially in the form of a square or rectangle.”
nitized ed A Area ea means “any area where ownership of production from relevant pool or formation is consolidated pursuant to an agreement, whether voluntary and filed in the county land records, or approved by federal or state authority…”
l Horizontal W Well ll means “a horizontal well the completed interval or intervals of which are located wholly within the horizontal spacing unit dedicated to a previously drilled horizontal well completed in the same pool and that the operator designates as an infill horizontal well on form C-102.”
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cted P d Persons” (19.15.2.7(A)(8)) means: – The operator, or – Each working interest owner, or – Each mineral interest owner, and – BLM and/or SLO (if applicable).
ineral I Interest O Owner” means: “a working interest owner, or an owner of a right to explore for and develop oil and gas that is not subject to an existing lease.”
atio ion U Unit it” means: the area in a pool that can be effectively and efficiently drained by one well… (deleted language: “All proration units are spacing units but not all spacing units are proration units.”)
Interest Owner” means: “the owner of an interest in oil and gas that does not presently entitle the owner to explore, drill or otherwise develop those minerals.”
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logic
ace T Topograp aphy
rilli lling
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– No longer required to form a Non-Standard Spacing Unit. – No longer required to notify operators adjoining the project area (aka spacing unit).
Factors c conside dered: d:
*Com
evidence as it relates t to t
he p prop
loca
the po e potential o
each pr propo posed pr prospect t to ef efficiently rec ecover o
and g gas r res eser erves
risk a k associated w with t the pa e parties’ res espe pective pr propo posal for E E&D o &D of t the e pr proper perty
e neg egotiations b between the c e competing pa parties & & good faith ef efforts
ability to pr prudently o
perate the pr e proper perty a and pr prevent w waste
ison o
the d dif ifferences in in AF AFEs
mineral i inter erest o
ership h p hel eld by ea each pa party at the e time me t the e application w was heard
y to ti timely l locate well s sites a and nd t to o
n th the s sur urface ( (Sur urface Factor)
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Asce cent:
100% S 0% SE/4
rger r acre reage p posi sition
the surr rrou
area, o
ration
including surfa face facil ility u utiliz izatio ion
lowe wer
locati tions a and ability t to get t timely d drill lling g locati tions Centenni ennial:
100% NE 0% NE/4
r developm
more c consi sistent w with t the a ava vailable geol
evidence
reat e experi rience i in drilling and c compl pleting H HZ wells i s in this a s area, e especially N New M Mexico
highe gher
locati tions a and ability t to get t timely d drill lling g locati tions
tring at the t the t top o
the W WC ; ; prudence in p pla lan
r latera rals; s; o
4 NSL SL perm rmits = s =460 extra ra f feet of compl pleted i interval 49
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John
homas Produc uction n and nd A Asset M Mana nager Robe bert L.
ss, Producer r LL LLC jthomas@rlb lbayle less.c .com (303) (303) 382 382-0914 914 Jeff L Lie ierly, C CPL One neEne nergy Partners, LL rs, LLC jlierly@ y@one neene nergyp ypar artners.com (713) 7 ) 714-648 6485 Beth Rya yan, n, S Senior C Couns nsel Conch cho R Resource ces Inc. c. eryan@co conch cho.co com (505) (505) 780 780-8009