N.M. Admin. Code § 19.15.27.7

Current through Register Vol. 36, No. 1, January 14, 2025

Section 19.15.27.7 - DEFINITIONS

Terms shall have the meaning specified in 19.15.2 NMAC except as specified below.

A."ALARM" means advanced leak and repair monitoring technology for detecting natural gas leaks or releases that is not required by applicable state or federal law, rule, or regulation, and which the division has approved as eligible to earn a credit against the reported volume of lost natural gas pursuant to Paragraph (4) of Subsection B of 19.15.27.9 NMAC.

B."Average daily well production" means the number derived by dividing the total volume of natural gas produced from a single well in the preceding 12 months by the number of days that natural gas was produced from the well during the same period.

C."Average daily facility production" means, for a facility receiving production from two or more wells, the number derived by dividing the total volume of natural gas produced from all wells at the facility during the preceding 12 months by the number of days, not to exceed 365, that natural gas was produced from one or more wells during the same period.

D."AVO" means audio, visual and olfactory.

E."Completion operations" means the period that begins with the initial perforation of the well in the completed interval and concludes at the end of separation flowback.

F."Drilling operations" means the period that begins when a well is spud and concludes when casing and cementing has been completed and casing slips have been set to install the tubing head.

G."Exploratory well" means a well located in a spacing unit the closest boundary of which is two miles or more from:

(1) the outer boundary of a defined pool that has produced oil or gas from the formation to which the well is or will be completed; and

(2) an existing gathering pipeline as defined in 19.15.28 NMAC.

H."Emergency" means a temporary, infrequent, and unavoidable event in which the loss of natural gas is uncontrollable or necessary to avoid a risk of an immediate and substantial adverse impact on safety, public health, or the environment, but does not include an event arising from or related to:

(1) the operator's failure to install appropriate equipment of sufficient capacity to accommodate the anticipated or actual rate and pressure of production;

(2) except as provided in Subparagraph (4), the operator's failure to limit production when the production rate exceeds the capacity of the related equipment or natural gas gathering system as defined in 19.15.28 NMAC, or exceeds the sales contract volume of natural gas;

(3) scheduled maintenance;

(4) venting or flaring of natural gas for more than eight hours after notification that is caused by an emergency, unscheduled maintenance, or malfunction of a natural gas gathering system;

(5) the operator's negligence;

(6) recurring equipment failure 4 or more times within a single reporting area pursuant to Subsection A of 19.15.27.9 experienced by the operator within the preceding 30 days; or

(7) Four or more emergencies within a single reporting area, pursuant to Subsection A of 19.15.27.9 NMAC, experienced by the operator within the preceding 30 days, unless the division determines the operator could not have reasonably anticipated the current event and it was beyond the operator's control.

I."Flare" or "Flaring" means the controlled combustion of natural gas in a device designed for that purpose.

J."Flare stack" means a device equipped with a burner used to flare natural gas.

K."Gas-to-oil ratio (GOR)" for purposes of 19.15.27 NMAC means the ratio of natural gas to oil in the production stream expressed in standard cubic feet of natural gas per barrel of oil.

L."Initial flowback" means the period during completion operations that begins with the onset of flowback and concludes when it is technically feasible for a separator to function.

M."Malfunction" means a sudden, unavoidable failure or breakdown of equipment beyond the reasonable control of the operator that substantially disrupts operations, but does not include a failure or breakdown that is caused entirely or in part by poor maintenance, careless operation, or other preventable equipment failure or breakdown.

N."N₂" means nitrogen gas.

O."Natural gas" means a gaseous mixture of hydrocarbon compounds, primarily composed of methane, and includes both casinghead gas and gas as those terms are defined in 19.15.2 NMAC.

P."Production operations" means the period that begins on the earlier of31 days following the commencement of initial flowback or following completion of separation flowback and concludes when the well is plugged and abandoned.

Q."Producing in paying quantities" mean the production of a quantity of oil and gas that yields revenue in excess of operating expenses.

R."Separation flowback" means the period during completion operations that begins when it is technically feasible for a separator to function and concludes no later than 30 days after the commencement of initial flowback.

S."Vent" or "Venting" means the release of uncombusted natural gas to the atmosphere.

N.M. Admin. Code § 19.15.27.7

Adopted by New Mexico Register, Volume XXXII, Issue 10, May 25, 2021, eff. 5/25/2021