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New Mexico “land of enchantment” and … communitizations!

Watch the recording of our May 7, 2019, webinar for valuable insights into the intricate landscape of the Permian basin in New Mexico. Spanning approximately 5,400 square miles of Federal, 3,800 square miles of State, and 3,600 square miles of Private mineral acreage, this region presents unique regulatory challenges for E&P Operators seeking to develop and produce in the state. One of the paramount regulatory considerations Operators must confront is the concept of “forced pooling.” This practice allows Operators, lacking voluntary agreements with all interest holders in a specific area, to legally amalgamate those interests without the holder’s consent, all in pursuit of drilling a well.

In this inaugural Oseberg information webinar, we delve into the nuances of Compulsory Pooling in New Mexico, covering the following key aspects:

1. Understanding Timing and Regulatory Flow: Delve into the lifecycle of a new well, encompassing Pooling Applications and Orders, and the regulatory processes that govern them.

2. Cost Allocation and Non-Consent Penalties: Gain insight into how costs are assigned and non-consent penalties are determined in the state. Explore how these charges mirror the relative cost of operations.

3. The Significance of Respondents: Learn about the role of Respondents and how they provide detailed information on Working Interest (WI), Mineral Interest (MI), and Overriding Royalty Interest (ORRI) contacts in Pooled areas.

4. Federal & State Communitization Agreements: Explore the world of Federal and State Communitization Agreements and discover the advantages they offer.

Throughout our New Mexico webinar series, we provide practical examples of how leveraging regulatory filings can empower you to:

– Anticipate Drilling Activity: Gain the ability to predict drilling activities well in advance—often five months before the issuance of a drilling permit.

– Estimate Cost of Operations: Accurately estimate the relative cost of operations for your competitors, allowing for informed decision-making.

– Efficiently Map and Determine Leaseholders: Easily map and answer the critical question of “Who Has What Where?” concerning operator leasehold.

– Identify Pughed-Out Acreage Opportunities: Recognize Pughed-out acreage opportunities within Fee lease areas.

– Visualize Well Directions: Use ‘well stick’ maps to visualize horizontal well directions and understand their spatial orientation.

By exploring these themes, we offer a comprehensive guide for industry professionals looking to navigate the complex regulatory landscape of the New Mexico oil and gas sector. Understanding these intricacies can significantly impact business decisions, enhance competitiveness, and provide a proactive approach to the challenges posed by this dynamic environment.