N.M. Admin. Code § 19.15.21.7
Current through Register Vol. 35, No. 24, December 23, 2024
Section 19.15.21.7 - DEFINITIONSA. "Acreage factor" means a GPU's acreage factor determined to the nearest hundredth of a unit by dividing the acreage assigned to the GPU by a number equal to the number of acres in a standard GPU for the pool. However, the acreage tolerance provided in Subparagraph (b) of Paragraph (1) of Subsection A of 19.15.8.21.12 NMAC shall apply.B. "AD factor" means an acreage multiplied by the deliverability factor is calculated in pools in which acreage and deliverability are proration factors. The product obtained by multiplying the acreage factor by the calculated deliverability (expressed as MCF per day) for that GPU is known as the AD factor for that GPU. The AD factor is computed to the nearest whole unit.C. "Allocation hearing" means a hearing the division holds twice each year to determine pool allocations for the ensuing allocation period.D. "Allocation period" means a six-month period beginning at 7:00 a.m. April 1 and October 1 of each year.E. "Balancing date" means the date beginning at 7:00 a.m. April 1 of each year; the 12 months following this date is the gas proration period.F. "Broker" means a third party who negotiates contracts for purchase and resale.G. "Classification period" means a three month period beginning at 7:00 a.m. on April 1, July 1, October 1 and January 1 of each year. H. "Deliverability pressure" means the designated delivery pressure at which pipeline companies can accept gas from gas wells depending on the pipeline's capacity.I. "Gas pool" means a pool that the division has designated as a gas pool after notice and hearing.J. "Gas proration unit (GPU)" means the acreage allocated to a well, or in the case of an infill well or wells to a group of wells, for purposes of spacing and proration. A GPU may be either of a standard or nonstandard size as provided in 19.15.21 NMAC.K. "Gas purchaser" means the purchaser (where the producer first exchanges ownership of the gas to the purchaser for an agreed value) of the gas from a gas well or GPU.L. "Gas transporter" means a taker of gas, the party servicing the well meter or the party responsible for measuring the gas sold from the well or beneficially used off-lease. This could be at the wellhead, at any other point on the lease or at a division-authorized point where connection is made for gas transportation or utilization (other than is necessary for maintaining the well's producing ability). The gas transporter can be the gatherer, transporter, producer or a delegate of one of those parties. The gas transporter shall be identified on form C-115 and shall be responsible for creating and maintaining form C-111 as required under 19.15.7.21 NMAC's provisions.M. "Infill well" means an additional producing well on a GPU that serves as a companion well to an existing well on the GPU.N. "Marginal GPU" means a proration unit that is incapable of producing or has not produced the non-marginal allowable based on pool allocation factors. Marginal GPUs do not accrue over or underproduction.O. "Non-marginal GPU" means a proration unit receiving an allowable based upon pool allocation factors. Non-marginal proration units accrue over or underproduction.P. "Overproduction" means the volume of gas produced on a GPU in a month greater than the assigned non-marginal allowable (does not include gas used in maintaining the GPU's wells' producing ability). Overproduction accumulates month to month during the proration period.Q. "Prorated gas pool" means a gas pool in which, after notice and hearing, the division allocates production according to 19.15.21 NMAC and any applicable special pool orders.R. "Proration period" means the 12-month period beginning April 1 of each year.S. "Shadow allowable" means the gas volume calculated for a marginal GPU that is equal to the allowable assigned to a non-marginal GPU in the same pool of the same A (acreage) or A and AD (acreage deliverability) factors as the marginal GPU.T. "Underproduction" means the volume of assigned non-marginal allowable not produced on a GPU. Underproduction accumulates month to month during the proration period.N.M. Admin. Code § 19.15.21.7
19.15.21.7 NMAC - Rp, 19.15.8.7 NMAC, 12/1/08