New
Mexico Register / Volume XXIX, Issue 24 / December 27, 2018
This is an amendment
to 19.15.26 NMAC, amending Sections 1 through 3, 6 through 8 and 12 and 13, effective
12/27/2018.
19.15.26.1 ISSUING AGENCY: [Energy, Minerals and Natural Resources Department,
Oil Conservation Division] Oil Conservation Commission.
[19.15.26.1 NMAC - Rp, 19.15.9.1 NMAC, 12/1/2008; A, 12/27/2018]
19.15.26.2 SCOPE: 19.15.26 NMAC applies
to persons [engaged for secondary or other enhanced recovery of oil or gas; pressure
maintenance; salt water disposal and underground storage of oil or gas.] constructing,
operating or closing an injection well under the Oil and Gas Act. 19.15.26 NMAC does not apply to other classes
of injection wells regulated under the Water Quality Act, the Geothermal
Resources Development Act or the Surface Mining Act.
[19.15.26.2 NMAC - Rp, 19.15.9.2 NMAC, 12/1/2008; A, 12/27/2018]
19.15.26.3 STATUTORY AUTHORITY: 19.15.26 NMAC is adopted pursuant to the Oil
and Gas Act, [NMSA 1978,] Section 70-2-6, Section 70-2-11 and [Section 70-2-12
which authorizes the division to permit the injection of gas or other
substances into a pool for repressuring, cycling, pressure maintenance,
secondary or other enhanced recovering operations; and to regulate the
disposition of water produced or used in connection with drilling for or
producing oil or gas and to direct subsurface disposal of the water] Paragraphs
(13), (14), (15), (21) and (22) of Subsection B of Section 70-2-12 NMSA 1978.
[19.15.26.3 NMAC - Rp, 19.15.9.3 NMAC, 12/1/2008; A, 12/27/2018]
[19.15.26.6 NMAC - Rp, 19.15.9.6 NMAC, 12/1/2008; A, 12/27/2018]
19.15.26.7 DEFINITIONS:
[ A. “Affected person”
means the division designated operator; in the absence of an operator, a lessee
whose interest is evidence by a written conveyance document either of record or
known to the applicant as of the date the applicant files the application; or
in the absence of an operator or lessee, a mineral interest owner whose
interest is evidenced by a written conveyance document either of record or
known to the applicant as of the date the applicant filed the application for
permit to inject.
B. “Pressure maintenance project” means a
project in which an operator injects fluids into the producing horizon in an
effort to build up or maintain the reservoir pressure in an area that has not
reached the advanced or stripper state of depletion.
C. “Water flood project” means a project
in which an operator injects water into a producing horizon in sufficient
quantities and under sufficient pressure to stimulate oil production from other
wells in the area, and is limited to those areas in which the wells have
reached an advanced state of depletion and are regarded as what is commonly
referred to as stripper wells].
“Fluid” means any material or
substance which flows or moves whether in a semisolid, liquid, sludge, gas or
any other form or state.
19.15.26.7 NMAC - Rp, 19.15.9.701 NMAC, 12/1/2008; A, 12/27/2018]
19.15.26.8 INJECTION OF FLUIDS INTO RESERVOIRS:
A. Permit for injection
required. [An operator shall not
inject gas, liquefied petroleum gas, air, water or other fluid into a reservoir
or formation to maintain reservoir pressure or for secondary or other enhanced
recovery or for storage or inject water into a formation for disposal except
pursuant to a permit the division has granted after notice and hearing, or that
the division has granted by administrative order as authorized in 19.15.26.8
NMAC. The division shall grant a permit
for injection under 19.15.26.8 NMAC only to an operator who is in compliance
with Subsection A of 19.15.5.9 NMAC. The
division may revoke a permit for injection issued under 19.15.26.8 NMAC after
notice and hearing if the operator is not in compliance with Subsection A of
19.15.5.9 NMAC.]
(1) A
permit is required under 19.15.26 NMAC for any injection wells that inject:
(a) produced water
or other fluids that are brought to the surface in connection with natural gas
storage operations or conventional oil or natural gas production and may be
commingled with waste waters from gas plants that are an integral part of
production operations, unless those waters are classified as a hazardous waste
at the time of injection;
(b) fluids for
enhanced recovery of oil or natural gas; and
(c) fluids for
storage of hydrocarbons that are liquid at standard temperature and pressure.
B. Method of making application.
(1) The operator shall apply for
authority to [inject gas, liquefied petroleum gas, air, water or other
medium into a formation for any reason, including the establishment of or the expansion
of water flood projects, enhanced recovery projects, pressure maintenance
projects or salt water disposal,] construct and operate an injection
well by submitting form C-108 complete with all attachments to the division.
(2) The applicant shall furnish, by
certified or registered mail, a copy of the application to each owner of the land
surface on which each injection or disposal well is to be located and to each
leasehold operator [or] and other affected [person] persons,
as defined in Subsection A of 19.15.2.7 NMAC, within any tract wholly or
partially contained within one-half mile of the well.
C. Administrative approval.
(1) If the application is for administrative approval rather than for a hearing, it shall be accompanied by a copy of a legal notice the applicant published in a newspaper of general circulation in the county in which the proposed injection well is located. The legal notice shall include:
(a) the applicant’s name, address, phone number and contact party;
(b) the injection well’s intended purpose, with the exact location of single wells or the section, township and range location of multiple wells;
(c) the formation name and depth with expected maximum injection rates and pressures; and
(d) a notation that interested parties shall file objections or requests for hearing with the division within 15 days.
(2) The division shall not approve an application for administrative approval until 15 days following the division’s receipt of form C-108 complete with all attachments including evidence of mailing as required under Paragraph (2) of Subsection B of 19.15.26.8 NMAC and proof of publication as required by Paragraph (1) of Subsection C of 19.15.26.8 NMAC.
(3) If the division does not receive an objection within the 15-day period, and a hearing is not otherwise required, the division may approve the application administratively.
D. Hearings. If a written objection to an application for administrative approval of an injection well is filed within 15 days after receipt of a complete application, if 19.15.26.8 NMAC requires a hearing or if the director deems a hearing advisable, the division shall set the application for hearing and give notice of the hearing.
E. Produced water disposal wells.
(1) The director may grant an application for a produced water disposal well administratively, without hearing, only when the waters to be disposed of are mineralized to such a degree as to be unfit for domestic, stock, irrigation or other general use and when the waters are to be disposed of into a formation older than Triassic (Lea county only) and the division receives no objections pursuant to Subsection C of 19.15.26.8 NMAC.
(2) The division shall not permit disposal into zones containing waters having total dissolved solids concentrations of 10,000 mg/1 or less except after public notice and hearing, provided that the division may, by order issued after public notice and hearing, establish exempted aquifers for such zones where the division may administratively approve the injection.
(3) Notwithstanding the provisions of Paragraph (2) of Subsection E of 19.15.26.8 NMAC, the director may authorize disposal into such zones administratively if the waters to be disposed of are of higher quality than the native water in the disposal zone.
F. [Pressure maintenance projects.
(1) The division shall set applications
for establishment of pressure maintenance projects for hearing. The division shall
fix the project area and the allowable formula for a pressure
maintenance project on an individual basis after notice and hearing.
(2) The division may authorize an
operator to expand a pressure maintenance project and place additional wells on
injection after hearing or administratively, subject to the notice requirements
of Subsection B of 19.15.26.8 NMAC.
(3) The director may grant an
exception to the hearing requirements of Subsection A of 19.15.26.8 NMAC for
the conversion to injection of additional wells within a project area provided
that the wells are necessary to develop or maintain efficient pressure
maintenance within the project and provided that the division receives no
objections pursuant to Subsection C of 19.15.26.8 NMAC.
(4) An established pressure
maintenance project shall have only one designated operator. The division shall set an application for
exception for hearing.
G. Water flood projects.] Pressure maintenance, secondary recovery and enhanced oil recovery injection
projects.
(1) The division shall set applications
for establishment of [water flood] pressure maintenance, secondary
recovery and enhanced oil recovery injection projects for hearing. The division shall fix the project area and
the allowable formula for an injection project on an individual basis after
notice and hearing.
(2) The project area of [a water
flood] an injection project shall comprise the spacing or proration
units a given operator owns or operates upon which injection wells are located
plus spacing or proration units the same operator owns or operates that
directly or diagonally offset the injection tracts and have producing wells
completed on them in the same formation; provided however, that the division
may include in the project area additional spacing or proration units
not directly or diagonally offsetting an injection tract if, after notice and
hearing, the operator establishes that the additional units have wells
completed on the unit that have experienced a substantial response to water
injection.
(3) The allowable the division
assigns to wells in [a water flood] an injection project area
shall equal the wells’ ability to produce and is not subject to the depth bracket
allowable for the pool or to the market demand percentage factor.
(4) Nothing in Subsection [G] F
of 19.15.26.8 NMAC shall prohibit the division’s assignment of special
allowables to wells in buffer zones after notice and hearing. The division may assign special allowables in
the limited instances where it is established at a hearing that it is
imperative for the protection of correlative rights to do so.
(5) The division [shall] may
authorize the expansion of [water flood] injection projects and
the placement of additional wells on injection after hearing or administratively,
subject to the notice requirements of Subsection B of 19.15.26.8 NMAC.
(6) The director may grant an
exception to the hearing requirements of Subsection A of 19.15.26.8 NMAC for
conversion to injection of additional wells provided that the [well is] wells
are necessary to develop or maintain thorough and efficient [water flood]
injection operations for an authorized project and provided that the
division does not receive an objection pursuant to Subsection C of 19.15.26.8
NMAC.
(7) An established [water flood]
injection project shall have only one designated operator. The division shall set for hearing an application
for exception.
[H.] G. Storage
wells.
(1) The director may grant
administratively, without hearing, an application for the underground storage
of liquefied petroleum gas or liquid hydrocarbons in secure caverns within
massive salt beds, [and] provided the applicant has complied with the
notice provisions of Subsection B of 19.15.26.8 NMAC and the division receives
no objections pursuant to Subsection C of 19.15.26.8 NMAC.
(2) In addition to the filing requirements
of Subsection B of 19.15.26.8 NMAC, the applicant for approval of a storage
well under Subsection [H] G of 19.15.26.8 NMAC shall file the
following:
(a) with the director, financial assurance in accordance with the provisions of 19.5.8 NMAC; and
(b) with the appropriate division district office:
(i) form C-101;
(ii) form C-102; and
(iii) form C-105.
[19.15.26.8 NMAC - Rp, 19.15.9.701 NMAC, 12/1/2008; A, 12/27/2018]
19.15.26.12 COMMENCEMENT, DISCONTINUANCE AND ABANDONMENT OF INJECTION OPERATIONS:
A. The following
provisions apply to injection projects, storage projects, [salt] produced
water disposal wells and special purpose injection wells.
B. Notice of commencement and discontinuance.
(1) Immediately upon the commencement of injection operations in a well, the operator shall notify the division of the date the operations began.
(2) Within 30 days after permanent cessation of gas or liquefied petroleum gas storage operations or within 30 days after discontinuance of injection operations into any other well, the operator shall notify the division of the date of the discontinuance and the reasons for the discontinuance.
(3) Before temporarily abandoning or plugging an injection well, the operator shall obtain approval from the appropriate division district office in the same manner as when temporarily abandoning or plugging oil and gas wells or dry holes.
C. Abandonment of injection operations.
(1) Whenever
there is a continuous [one year] one-year period of non-injection
into all wells in an injection or storage project or into a [salt] produced
water disposal well or special purpose injection well, the division shall
consider the project or well abandoned, and the authority for injection shall
automatically terminate ipso facto.
(2) For good cause shown, the director may grant an administrative extension or extensions of injection authority as an exception to Paragraph (1) of Subsection C of 19.15.26.12 NMAC, provided that any such extension may be granted only prior to the end of one year or continuous non-injection, or during the term of a previously granted extension.
[19.15.26.12 NMAC - Rp, 19.15.9.705 NMAC, 12/1/2008; A, 12/27/2018]
19.15.26.13 RECORDS AND REPORTS:
A. The operator of
an injection well or project for secondary or other enhanced recovery, pressure
maintenance, gas storage, [salt] produced water disposal or
injection of other fluids shall keep accurate records and shall report monthly
to the division gas or fluid volumes injected, stored or produced as required
on the appropriate form listed below:
(1) secondary or other enhanced recovery on form C-115;
(2) pressure maintenance on form C-115 and as otherwise prescribed by the division;
(3) [salt]
produced water disposal not regulated by 19.15.36 NMAC on form C-115;
(4) [salt]
produced water disposal at surface waste management facilities regulated
by 19.15.36 NMAC on form C-120-A;
(5) gas storage on form C-131-A; and
(6) injection of other fluids on a division-prescribed form.
B. The operator of a liquefied petroleum gas storage project shall report to the division annually on form C-131-B.
[19.15.26.13 NMAC - Rp, 19.15.9.706 NMAC, 12/1/2008; A, 12/27/2018]