{"id":625327,"date":"2018-09-12T07:10:48","date_gmt":"2018-09-12T13:10:48","guid":{"rendered":"http:\/\/nmpolitics.net\/index\/?p=625327"},"modified":"2018-09-12T07:12:46","modified_gmt":"2018-09-12T13:12:46","slug":"state-will-consider-boosting-gas-well-density-in-northern-nm","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2018\/09\/state-will-consider-boosting-gas-well-density-in-northern-nm\/","title":{"rendered":"State will consider boosting gas well density in northern NM"},"content":{"rendered":"<div id=\"attachment_625331\"  class=\"wp-caption module image alignnone\" style=\"max-width: 771px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-625331\" src=\"http:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2018\/09\/IMG_2270-771x514.jpg\" alt=\"A gas well in Rio Arriba County\" width=\"771\" height=\"514\" srcset=\"https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2018\/09\/IMG_2270-771x514.jpg 771w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2018\/09\/IMG_2270-336x224.jpg 336w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2018\/09\/IMG_2270-768x512.jpg 768w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2018\/09\/IMG_2270-1170x780.jpg 1170w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2018\/09\/IMG_2270.jpg 1200w\" sizes=\"auto, (max-width: 771px) 100vw, 771px\" \/><p class=\"wp-media-credit\">Laura Paskus \/ New Mexico Political Report<\/p><p class=\"wp-caption-text\">A gas well in Rio Arriba County.<\/p><\/div>\n<p>At its meeting on Thursday, the New Mexico Oil Conservation Committee will hear from an energy company that wants to double the density of gas wells in northwestern New Mexico.<\/p>\n<p>Hilcorp Energy Company is asking the state to amend well density requirements in what\u2019s called the Blanco-Mesaverde Gas Pool in San Juan and Rio Arriba counties.<\/p>\n<p>Under the current rules, companies can drill four wells within the designated 320-acre spacing units, and only two can be drilled within each 160-acre section. Companies can also ask the state to increase the density of wells on a case-by-case basis, something Hilcorp notes in its application New Mexico has allowed it to do in 62 instances this year.<\/p>\n<p>Rather than continuing to file individual applications, each with its own public notice and hearing, the company is now asking New Mexico to change the spacing rules for the entire Blanco-Mesaverde pool.<\/p>\n<aside class=\"module align-left half type-aside\">\n<h3>About this article<\/h3>\n<p>This article comes from\u00a0<a href=\"http:\/\/nmpoliticalreport.com\/876098\/state-will-consider-boosting-gas-well-density-in-northern-nm-en\/\" target=\"_blank\" rel=\"noopener noreferrer\">New Mexico Political Report<\/a>,\u00a0a nonprofit news organization\u00a0focused on promoting a greater public understanding of politics and policy in New Mexico.<\/p>\n<\/aside>\n<p>In its application, attorneys for the company point out that the rules adopting the 320-acre units were established in 1949 \u201con the assumption that one well would adequately drain and develop 320-acres.\u201d Over time, the Oil Conservation Division has increased the well density. And the company says it should do so again to \u201cprevent waste and drain unrecovered gas reserves.\u201d<\/p>\n<p>The state makes the density rules on all leases, even if they are on federal lands. Then the relevant agency, such as the U.S. Bureau of Land Management, approves or denies applications for permits to drill.<\/p>\n<p>According to the company\u2019s application, it currently operates 5,239 wells within the Blanco-Mesaverde Gas Pool.<\/p>\n<p>In 2017, ConocoPhillips<a href=\"http:\/\/www.conocophillips.com\/news-media\/story\/conocophillips-announces-agreement-to-sell-san-juan-basin-assets\/\" target=\"_blank\" rel=\"noopener\">\u00a0sold its San Juan Basin assets<\/a>\u00a0to Hilcorp Energy Company. Earlier this summer, the<a href=\"https:\/\/www.chron.com\/business\/energy\/article\/Houston-s-Hilcorp-paying-over-1B-for-San-Juan-13116301.php\" target=\"_blank\" rel=\"noopener\">\u00a0<i>Houston Chronicle<\/i><\/a>\u00a0reported that an affiliate of Hilcorp, Harvest Midstream, was buying gas pipeline and processing facilities in the San Juan from Williams Partners. That $1.1 billion sale included more than 3,700 miles of pipeline, two gas processing plants and one carbon dioxide treatment facility.<\/p>\n<h3><strong>Group calls for state to delay decision<\/strong><\/h3>\n<p>Mike Eisenfeld of the San Juan Citizens Alliance was one of the people who spotted Hilcorp\u2019s legal notice in the back of\u00a0<i>The Farmington Daily Times<\/i>\u00a0on Aug. 23 and 24. He said that the change could mean up to 7,500 new wells in the two counties.<\/p>\n<p>Eisenfeld\u2019s group wants the state to delay its decision and have \u201cmore active and robust hearings\u201d on the change. They\u2019re planning to file a request for a continuance, or deferral, at Thursday\u2019s meeting. That would allow interested parties to prepare an intervention or provide testimony on issues such as environmental impacts, he explained, and also give residents and landowners more time to plan to attend the hearing in Santa Fe.<\/p>\n<p>Although the rule change would apply to only two counties, Eisenfeld thinks it could have larger implications.<!--more--><\/p>\n<p>\u201cThis would be a major rule-making and would open to the door to all sorts of formations [in addition to the Blanco-Mesaverde pool],\u201d Eisenfeld said. \u201cIt would slaughter the places that have oil and gas.\u201d<\/p>\n<p>One local landowner,\u00a0Don Schreiber, is\u00a0worried the Oil Conservation Commission will approve the change.<\/p>\n<p>\u201cIf it\u2019s two wells per 640 acres, as it was originally, then we\u2019re talking multiple use,\u201d he said, referring to a mandate for public lands, which allows for various uses on one plot of land, whether that\u2019s oil and gas drilling, livestock grazing, recreation or other uses. \u201cIf it is 16 wells per 640 acres as is proposed, then we\u2019re talking an 11,000-square mile industrial zone.\u201d<\/p>\n<p>He also called the timing of the request a \u201clast-ditch, lame-duck gift to industry by two ex-oil company executives as they leave.\u201d<\/p>\n<p>Two top officials with the New Mexico Energy, Minerals and Natural Resources Department came to state service from the oil and gas industry. Secretary\u00a0Ken McQueen retired as San Juan vice president from WPX Energy shortly before his appointment by Gov. Susana Martinez in late 2016. WPX Energy is a subsidiary of<a href=\"https:\/\/www.tulsaworld.com\/business\/energy\/williams-cos-splits-off-exploration-production-subsidiary-wpx\/article_9ce51c09-8cae-5441-8908-d82682ae7eee.html\" target=\"_blank\" rel=\"noopener\">\u00a0Williams Companies<\/a>. The current director of the Oil Conservation Division is Heather Riley, who was formerly WPX\u2019s senior regulatory specialist in New Mexico.<\/p>\n<p>\u201cOn their way out the door, McQueen and Riley are trying to make another big payoff to the oil industry; doubling the drilling in the majority of the San Juan Basin and forever removing New Mexico citizens, or their federal representatives, from participating in the critical process of determining just how many wells an oil company can drill,\u201d said Schreiber, who owns a ranch in the area and has been a vocal opponent of increased drilling.<\/p>\n<p>When asked if the commission will issue a decision at Thursday\u2019s meeting or just collect information about the application, a spokesperson for the department pointed out that the agenda states the \u201chearing may continue to following days if not completed.\u201d If the hearing is completed, the commission \u201cmay deliberate at the end of the hearing,\u201d she said.<\/p>\n<p>Meanwhile, in southern New Mexico earlier this week, the U.S. Bureau of Land Management conducted an online lease sale of 142 parcels. The sale revenues totaled $972,483,619.50.<\/p>\n<p>Thursday morning, the U.S. Department of the Interior issued a<a href=\"https:\/\/www.doi.gov\/pressreleases\/they-said-it-couldnt-be-done-trump-admin-dominates-billion-dollar-oil-and-gas-sale\" target=\"_blank\" rel=\"noopener\">\u00a0press release<\/a>\u00a0about the record-breaking lease sale, which the department called a \u201ctestament to the Trump Administration\u2019s America First Energy Plan.\u201d<\/p>\n<p>The release also included a statement from Interior Secretary Ryan Zinke: \u201cCritics of the Administration\u2019s American Energy Dominance policy often falsely claim there is little to no interest in Federal oil and gas leases,\u201d he said. \u201cToday they are eating their words and once again President Trump\u2019s policies are bearing fruit for the American people. The people of New Mexico will see about a half a billion dollars of this right back into their roads, schools and public services.\u201d<\/p>\n<p>The Oil Conservation Commission hearing is<a href=\"http:\/\/www.emnrd.state.nm.us\/OCD\/documents\/9-13OCCHEARING.pdf\" target=\"_blank\" rel=\"noopener\">\u00a0scheduled<\/a>\u00a0for 9 a.m. on Sept. 13 at the Wendell Chino Building in Santa Fe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At its meeting on Thursday, the New Mexico Oil Conservation Committee will hear from an energy company that wants to double the density of gas wells in northwestern New Mexico.<\/p>\n","protected":false},"author":1,"featured_media":625331,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[119,147,107],"class_list":["post-625327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-energy-policy","tag-environment","tag-roundhouse"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/625327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=625327"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/625327\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media\/625331"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=625327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=625327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=625327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}