N.M. Stat. § 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 [13-1-28 to 13-1-199 NMSA 1978], 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 [Chapter 74, Article 6 NMSA 1978] as
provided in Subsection E of Section 74-6-4 NMSA 1978.