New Mexico § 70-2-12 - Enumeration of powers

§ 70-2-12. Enumeration of powers

A. The oil conservation division of the energy, minerals and natural resources department

may: (1) collect data; (2) make investigations and inspections; (3) examine properties, leases, papers, books and records; (4) examine, check, test and gauge oil and gas wells, tanks, plants, refineries and

all means and modes of transportation and equipment; (5) hold hearings; (6) provide for the keeping of records and the making of reports and for the checking

of the accuracy of the records and reports; (7) limit and prorate production of crude petroleum oil or natural gas or both as

provided in the Oil and Gas Act; and (8) require either generally or in particular areas certificates of clearance or tenders

in connection with the transportation of crude petroleum oil or natural gas or any

products of either or both oil and products or both natural gas and products. B. The oil conservation division may make rules and orders for the purposes and with

respect to the subject matter stated in this subsection: (1) to require dry or abandoned wells to be plugged in a way so as to confine the

crude petroleum oil, natural gas or water in the strata in which it is found and to

prevent it from escaping into other strata; pursuant to Section 70-2-14 NMSA 1978 , the division shall require financial assurance conditioned for the performance of

the rules; (2) to prevent crude petroleum oil, natural gas or water from escaping from strata

in which it is found into other strata; (3) to require reports showing locations of all oil or gas wells and for the filing

of logs and drilling records or reports; (4) to prevent the drowning by water of any stratum or part thereof capable of producing

oil or gas or both oil and gas in paying quantities and to prevent the premature and

irregular encroachment of water or any other kind of water encroachment that reduces

or tends to reduce the total ultimate recovery of crude petroleum oil or gas or both

oil and gas from any pool; (5) to prevent fires; (6) to prevent “blow-ups” and “caving” in the sense that the conditions indicated

by such terms are generally understood in the oil and gas business; (7) to require wells to be drilled, operated and produced in such manner as to prevent

injury to neighboring leases or properties; (8) to identify the ownership of oil or gas producing leases, properties, wells, tanks,

refineries, pipelines, plants, structures and all transportation equipment and facilities; (9) to require the operation of wells with efficient gas-oil ratios and to fix such

ratios; (10) to fix the spacing of wells; (11) to determine whether a particular well or pool is a gas or oil well or a gas

or oil pool, as the case may be, and from time to time to classify and reclassify

wells and pools accordingly; (12) to determine the limits of any pool producing crude petroleum oil or natural

gas or both and from time to time redetermine the limits; (13) to regulate the methods and devices employed for storage in this state of oil

or natural gas or any product of either, including subsurface storage; (14) to permit the injection of natural gas or of any other substance into any pool

in this state for the purpose of repressuring, cycling, pressure maintenance, secondary

or any other enhanced recovery operations; (15) to regulate the disposition, handling, transport, storage, recycling, treatment

and disposal of produced water during, or for reuse in, the exploration, drilling,

production, treatment or refinement of oil or gas, including disposal by injection

pursuant to authority delegated under the federal Safe Drinking Water Act, in a manner

that protects public health, the environment and fresh water resources; (16) to determine the limits of any area containing commercial potash deposits and

from time to time redetermine the limits; (17) to regulate and, where necessary, prohibit drilling or producing operations for

oil or gas within any area containing commercial deposits of potash where the operations

would have the effect unduly to reduce the total quantity of the commercial deposits

of potash that may reasonably be recovered in commercial quantities or where the operations

would interfere unduly with the orderly commercial development of the potash deposits; (18) to spend the oil and gas reclamation fund and do all acts necessary and proper

to plug dry and abandoned oil and gas wells and to restore and remediate abandoned

well sites and associated production facilities in accordance with the provisions

of the Oil and Gas Act, the rules adopted under that act and the Procurement Code,

including disposing of salvageable equipment and material removed from oil and gas

wells being plugged by the state; (19) to make well price category determinations pursuant to the provisions of the

federal Natural Gas Policy Act of 1978 or any successor act and, by regulation, to

adopt fees for such determinations, which fees shall not exceed twenty-five dollars

($25.00) per filing. Such fees shall be credited to the account of the oil conservation division by the

state treasurer and may be expended as authorized by the legislature; (20) to regulate the construction and operation of oil treating plants and to require

the posting of bonds for the reclamation of treating plant sites after cessation of

operations; (21) to regulate the disposition of nondomestic wastes resulting from the exploration,

development, production or storage of crude oil or natural gas to protect public health

and the environment; and (22) to regulate the disposition of nondomestic wastes resulting from the oil field

service industry, the transportation of crude oil or natural gas, the treatment of

natural gas or the refinement of crude oil to protect public health and the environment,

including administering the Water Quality Act as provided in Subsection E of Section 74-6-4 NMSA 1978 .