BEFORE THE OIL CONSERVATION COMMISSION
OF THE STATE OF NEW MEXICO

IN THE MATTER OF THE HEARING CALLED BY THE OIL CONSERVATION COMMISSION UPON ITS OWN MOTION TO CONSIDER THE REVISION OF PARAGRAPH (1) OF ORDER NO. R-3221, TO PROVIDE THAT THE EFFECTIVE DATE FOR THE PROHIBITION OF SURFACE DISPOSAL OF PRODUCED WATER FROM THE NORTH BAGLEY-UPPER PENNSYLVANIAN, NORTH BAGLEY-MIDDLE PENNSYLVANIAN, NORTH BAGLEY-LOWER PENNSYLVANIAN, NORTH BAGLEY-WOLFCAMP, AND NORTHEAST BAGLEY-WOLFCAMP POOLS, LEA COUNTY, NEW MEXICO, OR WITHIN ONE MILE THEREOF, BE CHANGED FROM NOVEMBER 1, 1967, TO SOME EARLIER DATE.

CASE No. 3644
Order No. R-3221-A

ORDER OF THE COMMISSION

BY THE COMMISSION:

This cause came on for hearing at 9 a.m. on August 30, 1967, at Santa Fe, New Mexico, before the Oil Conservation Commission of New Mexico, hereinafter referred to as the "Commission."

NOW, on this 31st day of August, 1967, the Commission, a quorum being present, having
considered the testimony presented and the exhibits received at said hearing, and being fully advised in the premises,

FINDS:

(1) That due public notice having been given as required by law, the Commission has jurisdiction of this cause and the subject matter thereof.

(2) That effective November 1, 1967, Order (1) of Order No. R-3221 forbids the disposal of water produced in conjunction with the production of oil or gas, or both, from the North Bagley Upper Pennsylvanian, North Bagley-Middle Pennsylvanian, North Bagley-Lower Pennsylvanian, North Bagley-Wolfcamp, and Northeast Bagley-Wolfcamp Pools, Lea County, New Mexico, or within one mile thereof, on the surface of the ground, or in any pit, pond, lake, depression, draw, streambed, or arroyo, or in any watercourse, or in any other place or in any manner which will constitute a hazard to any fresh water supplies in that area encompassed by Lea, Eddy, Chaves, and Roosevelt Counties, New Mexico.

(3) That upon considering the evidence presented in Case No. 3551 which resulted in the issuance of Order No. R-3221, the Commission found the production of salt water in the North Bagley Field to be so great as to constitute an imminent threat to the fresh water supplies designated by the state engineer and found that it would be necessary to prohibit surface disposal of said salt water no later than November 1, 1967, in order to afford reasonable protection against contamination of said fresh water supplies.

(4) That the evidence presented in Case No. 3644 establishes that the volume of salt water being produced in conjunction with the production of oil or gas, or both, in the North Bagley Field greatly exceeds the volume of produced salt water anticipated by the Commission when it issued Order No. R-3221.

(5) That the evidence presented in Case No. 3644 establishes that the excessive amounts of water being produced in conjunction with the production of oil or gas, or both, in the North Bagley Field constitute an even more immediate threat to the fresh water supplies than anticipated by the Commission at the time Order No. R-3221 was issued.

(6) That the testimony presented in Case No. 3644 indicates that all salt water disposal systems in the North Bagley Area heretofore authorized by the Commission can be in operation by approximately the middle of October, 1967.

(7) That the aforesaid salt water disposal systems will be capable of handling all salt water being produced in the North Bagley Field in mid-October.

(8) That the prohibition of water produced in conjunction with the production of oil or gas, or both, in the North Bagley Field, or within one mile thereof, on the surface of the ground, or in any pit, pond, lake, depression, draw, streambed, or arroyo, or in any watercourse, or in any other place or in any manner which will constitute a hazard to any fresh water supplies on or after November 1, 1967, in the area encompassed by Lea, Eddy, Chaves, and Roosevelt Counties, New Mexico, will not afford reasonable protection against contamination of fresh water supplies designated by the state engineer.

(9) That in order to afford reasonable protection against contamination of fresh water supplies designated by the state engineer, Order (1) of Order No. R-3221 should be amended to prohibit the surface disposal of water produced in conjunction with the production of oil or gas, or both, in the North Bagley Field, or within one mile thereof, on or after October 16, 1967.


IT IS THEREFORE ORDERED:

(1) That Order (1) of Order No. R-3221, dated May 1, 1967, is hereby amended to read in its entirety as follows:

"(1) That effective October 16, 1967, the disposal of water produced in conjunction with the
production of oil or gas, or both, from the North Bagley-Upper Pennsylvanian, North Bagley-Middle Pennsylvanian, North Bagley-Lower Pennsylvanian, North Bagley Wolfcamp, and Northeast Bagley-Wolfcamp Pools, Lea County, New Mexico, or within one mile thereof, on the surface of the ground, or in any pit, pond, lake, depression, draw, streambed, or arroyo, or in any watercourse, or in any other place or in any manner which will constitute a hazard to any fresh water supplies, is hereby prohibited in that area encompassed by Lea, Eddy, Chaves, and Roosevelt Counties, New Mexico."

(2) That jurisdiction of this cause is retained for the entry of such further orders as the Commission may deem necessary.

DONE at Santa Fe, New Mexico, on the day and year hereinabove designated.


STATE OF NEW MEXICO
OIL CONSERVATION COMMISSION

Signed by

DAVID F. CARGO, Chairman

Signed by

GUYTON B. HAYS, Member

Signed by

A. L. PORTER, Jr., Member & Secretary

SEAL

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