1. A. Liquid hydrocarbons produced incidental to the authorized production of gas from a well the division has classified as a gas well are legal production.

2. B. For purposes of 19.15.24.11 NMAC the division shall consider gas produced from a gas well to be authorized production with the following exceptions:

   (1) when the operator produces the well without an approved form C-104, designating the gas transporter and the oil or condensate transporter for the well; or

   (2) when the division has directed the operator to shut-in the well.

3. C. In the event the division directs an operator to shut-in a gas well, the operator and the division shall immediately notify both the gas transporter and oil transporter.

[19.15.24.11 NMAC - Rp, 19.15.10.803 NMAC, 12/1/08]