The New Mexico Oil Conservation Division (“OCD”) recently provided advance notice to industry and operators regarding the staggered implementation of new policy requirements.
In total, three Notices propose to change OCD requirements for the following processes:
(1) Changes to the Hearing Submission Process,
(2) Procedure for Deviation from Orders, and
(3) Evidentiary Requirements for Compulsory Pooling Applications.
Importantly, the effective dates for the Notices are staggered, with two Notices—Changes to the Hearing Submission Process and the Procedure for Deviation from Orders—is November 1, 2025, while the effective date of the Notice regarding Evidentiary Requirements for Compulsory Pooling Applications is December 1, 2025.
Notice: Changes to the Hearing Submission Process – Effective Date: November 1, 2025
To allow for more efficient caseload and hearing management among OCD staff, the OCD will require additional information when submitting a request for hearing via the online filing system. Examples of additional information requirements include:
- Submission Contact Details
- Case Types
- Wells and Pending Wells
- Pools
- Facilities
- Formations
- Locations
Additionally, new e-filing system prompts will require specific information to be provided upfront depending on the case type. OCD intends the new requirements to help streamline its application review process and to improve efficiency in docket management.
Notice: Procedure for Deviation from Orders – Effective Date: November 1, 2025
For uncontested applications containing minor deviations from development plans associated with Compulsory Pooling orders, the OCD will allow operators to proceed without hearing when the following steps are followed:
- Notice is provided to Affected Parties and OCD,
- Operators must monitor for objections, and
- The application is submitted to the OCD with all required documentation.
Upon the successful satisfaction of the three steps outlined above, OCD will issue an amended order without a hearing.
Notably, this option is only available for circumstances involving minor deviations from development plans to either: (1) accommodate scheduling issues with drilling or completion schedules or (2) to remove less than 20% of proposed wells from an already approved development plan.
This Notice clarifies a previous OCD Notice from 2024 to align with historical practices where amendments did not require a hearing unless protested.
Notice: Clarification of Evidentiary Requirements for Compulsory Pooling Applications – Effective Date: December 1, 2025
Upon the effective date, all applicants for compulsory pooling hearings must provide a new exhibit detailing the notice provided by uncommitted owners. This exhibit is in addition to existing requirements for compulsory pooling applications.
The new exhibit must show a table that lists all owners within the proposed unit and provides the following:
- Owner Name
- Ownership Status
- Commitment Type
- Notice Type Provided
In effectuating the change, OCD is ensuring that proper notice is provided to all owners whose interests have not been committed voluntarily. OCD hopes the change will assist in systematically verifying notice has been completed by the applicant.
For more information contact Jacob Everhart, Miguel Suazo, or James Parrot.
