1. A. Subject to the market demand percentage factor determined pursuant to 19.15.20.10 NMAC, the daily oil allowable for each oil pool in the state shall equal the appropriate depth bracket allowable below. The depth of the casing shoe or the top perforation in the casing, whichever is higher, in the first well completed in the pool shall determine the pool’s depth classification. Daily oil allowables for each of the several ranges of depth and spacing patterns are as follows, shown in barrels:

   POOL DEPTH RANGE DEPTH BRACKET ALLOWABLE 40 Acres 80 Acres 160 Acres 0 to 4999 feet 80 160 5000 to 5999 107 187 347 6000 to 6999 142 222 382 7000 to 7999 187 267 427 8000 to 8999 230 310 470 9000 to 9999 275 355 515 10,000 to 10,999 320 400 560 11,000 to 11,999 365 445 605 12,000 to 12,999 410 490 650 13,000 to 13,999 455 535 695 14,000 to 14,999 500 580 740 15,000 to 15,999 545 625 785 16,000 to 16,999 590 670 830 17,000 and deeper 635 715 875

   POOL DEPTH RANGE

   DEPTH BRACKET ALLOWABLE

   40 Acres

   80 Acres

   160 Acres

   0 to 4999 feet

   80

   160

   5000 to 5999

   107

   187

   347

   6000 to 6999

   142

   222

   382

   7000 to 7999

   187

   267

   427

   8000 to 8999

   230

   310

   470

   9000 to 9999

   275

   355

   515

   10,000 to 10,999

   320

   400

   560

   11,000 to 11,999

   365

   445

   605

   12,000 to 12,999

   410

   490

   650

   13,000 to 13,999

   455

   535

   695

   14,000 to 14,999

   500

   580

   740

   15,000 to 15,999

   545

   625

   785

   16,000 to 16,999

   590

   670

   830

   17,000 and deeper

   635

   715

   875

2. B. The 40-acre depth bracket allowables apply to all undesignated wells not governed by special pool orders and to all pools developed on the normal 40-acre statewide spacing unit.
3. C. The 80-acre and 160-acre depth bracket allowables apply to wells governed by applicable special pool orders the division issues as an exception to the normal 40-acre statewide spacing unit.
4. D. The division may, where deemed appropriate, assign to a given pool a special depth bracket allowable at variance to the depth bracket allowable normally assigned to a pool of similar depth and spacing. The special allowable may be more or less than the regular depth bracket allowable and shall be assigned only after notice and hearing.
5. E. In assigning a lesser than regular depth bracket allowable, the division may consider, among other pertinent factors, reservoir damage, casinghead gas production and disposition, water production and disposition, transportation facilities, the prevention of surface or underground waste and the protection of correlative rights.
6. F. The division shall assign a greater than regular depth bracket allowable only after sufficient reservoir information is available to ensure that the allowable can be produced without damage to the reservoir and without causing surface or underground waste. The division shall also consider the availability of oil transportation and marketing facilities; casinghead gas transportation, processing and marketing facilities; water disposal facilities; the protection of correlative rights; and other pertinent factors.

[19.15.20.12 NMAC - Rp, 19.15.7.505 NMAC, 12/1/08]