1. A. A person engaged in purchasing from one or more producers, gas produced from gas wells or casinghead gas produced from oil wells shall be a common purchaser of gas within each common supply source from which it purchases, and shall purchase gas lawfully produced from gas wells or casinghead gas produced from oil wells with which its gas transportation facilities are connected in the pool and other gas lawfully produced within the pool and tendered to a point on its gas transportation facilities.
2. B. The common purchaser shall make purchases without unreasonable discrimination in favor of one producer against another in the price paid, the quantities purchased, the bases of measurement or the gas transportation facilities afforded for gas of like quantity, quality and pressure available from the wells.

3. C. In the event the common purchaser is also a producer, the common purchaser shall not discriminate in favor of the common purchaser on production from gas wells or casinghead gas produced from oil wells in which the common purchaser has an interest, direct or indirect, as against other production from gas wells or casinghead gas produced from oil wells in the same pool. For the purposes of 19.15.24.12 NMAC, reasonable differences in prices paid or facilities afforded, or both, do not constitute unreasonable discrimination if the differences bear a fair relationship to differences in quality, quantity or pressure of the gas available or to the relative lengths of time during which the gas will be available to the purchaser. The provisions of Subsection C of 19.15.24.12 NMAC shall not apply to:

   (1) a well or pool used for storage and withdrawal from storage of gas originally produced not in violation of division rules or orders;

   (2) a person purchasing gas principally for use in the recovery or production of oil or gas; or

   (3) a well that the division designates a hardship well.

4. D. A common purchaser taking gas produced from gas wells or casinghead gas produced from oil wells from a common source of supply shall take ratably under division rules and orders, concerning quantity, as the division or commission promulgates consistent with 19.15.24.12 NMAC. The division or commission, in promulgating the rules and orders may consider the gas’ quality and the deliverability, the gas’ pressure at the point of delivery, acreage attributable to the well, market requirements in the case of unprorated pools and other pertinent factors.

5. E. Nothing in 19.15.24.12 NMAC requires, directly or indirectly, a common purchaser to purchase gas of a quality, under a pressure or under other condition by reason of which the common purchaser cannot economically and satisfactorily use the gas by means of the common purchaser’s gas transportation facilities then in service.

   HISTORY of 19.15.24 NMAC:

   History of Repealed Material: 19.15.6 NMAC, Natural Gas Production Operating Practice (filed 11/29/2001); 19.15.10 NMAC, Oil Purchasing and Transporting (filed 4/16/2003) and 19.15.11 NMAC, Gas Purchasing and Transporting (filed 09/10/2003) repealed 12/1/08.

   NMAC History:

   Those applicable portions of 19.15.6 NMAC, Natural Gas Production Operating Practice (Section 414) (filed 11/29/2001); 19.15.10 NMAC, Oil Purchasing and Transporting (Sections 801 - 803) (filed 4/16/2003) and 19.15.11 NMAC, Gas Purchasing and Transporting (Sections 901 and 902) (filed 09/10/2003) were all replaced by 19.15.24 NMAC, Illegal Sale and Ratable Take, effective 12/1/08.

[19.15.24.12 NMAC - Rp, 19.15.11.902 NMAC, 12/1/08]