New Mexico Upstream Oil and Gas Regulation: Overview
A Practice Note providing an overview of the regulatory framework for upstream oil and gas development in New Mexico. This Practice Note discusses the roles and responsibilities of key state and federal agencies, including the New Mexico Oil Conservation Commission (OCC), Oil Conservation Division (OCD), State Land Office (SLO), and the Bureau of Land Management (BLM). It addresses core operational and compliance topics such as operator registration, financial assurance requirements, and the well permitting process. The guidance details regulations for well spacing, including the specific requirements for vertical and horizontal wells under the Horizontal Well Rule, and outlines the process for obtaining compulsory pooling orders and navigating competing applications. Furthermore, this Practice Note explores critical compliance and enforcement issues, such as the Methane Waste Rule, release reporting under the Spill Rule, and regulations for Class II injection wells, including protocols for induced seismicity. It also examines the disposition of produced water under the Produced Water Act and surface access and compensation rights under the Surface Owners Protection Act (SOPA).