Friday, July 18, 2008

Oil Conservation Division Cancels A Permit to Drill in Rio Arriba County

New Mexico Energy Natural Resources Department News Release:

"SANTA FE, NM – The Oil Conservation Division today issued an Order of the Division in two related cases concerning drilling permits in Rio Arriba County. In one case, the Board of County Commissioners of Rio Arriba County challenged four permits issued to Approach Operating, LLC. In the second case, Approach Operating, LLC sought approval of six additional permits.


In the first case, the Order of the Division cancels one previously approved application for permit to drill issued to Approach Operating, LLC, and suspends three previously approved applications to drill, referring them to a hearing before the Oil Conservation Commission.


Approach Operating, LLC was issued a permit to drill a well named the Woolley Family LP #001, API No. 30-39-30397, on October 18, 2007, based in part on representations from the operator that the proposed location was more than 100 feet from ground water and more than 1,000 feet from the nearest surface water. Evidence at the recent hearing revealed that the proposed location is within a wetland and approximately 40 feet from surface water sources; therefore, the Oil Conservation Division cancelled the permit. The three other previously approved applications are suspended and referred to the Oil Conservation Commission.


In the second case, Approach Operating, LLC voluntarily withdrew an outstanding application to drill, a well named Benjamin Trujillo #001 and the division has dismissed it. The five remaining unprocessed applications, which have not yet been evaluated or approved, will also be referred to the Oil Conservation Commission for hearing.

The Oil Conservation Commission meets once a month and these hearings will be scheduled for the next available docket."

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