University of Colorado at Boulder
BMP of Oil and Gas Development

View BMP

BMP ID: 5809
Title: All the lands in this lease are subject to drainage by wells location adjacent to this lease.
Text: NM-10 DRAINAGE STIPULATION FOR FEDERAL LANDS: "All, or part, of the lands contained in this lease are subject to drainage by well(s) located adjacent to this lease. The lessee shall be required within 6 months of lease issuance to submit to the AO plans for protecting the lease from drainage. Compensatory royalty will be assessed effective the expiration of this 6-month period if no plan is submitted. The plan must include either an Application for Permit to Drill (APD) a protective well, or an application to communitize the lease so that it is allocated production from a protective well off the lease. Either of these options may include obtaining a variance to State-spacing for the area. In lieu of this plan, the lessee shall be required to demonstrate that a protective well would have little or no chance of encountering oil and gas in quantities sufficient to pay in excess the costs of protecting the lease from drainage or an acceptable justification why a protective well would be uneconomical, the lessee shall be obligated to pay compensatory royalty to the Minerals Management Service at a rate to be determined by the AO."
Source Publication Name: Farmington Resource Management Plan with Record of Decision
Citation Section: APPENDIX B OIL AND GAS LEASING STIPULATIONS APPLIED TO NEW LEASES IN PLANNING AREA
Citation Page: B-11
Supplemental Documents:  
Usage Type: Required
Timing: • Production / Operation / Maintenance
Oil / Gas Field:  
Surface Ownership: • Federal
Mineral Ownership: • Federal
Primary Contact: BLM - Farmington Field Office
1235 La Plata Highway, Suite A
Farmington, New Mexico  87401  United States
Phone:(505) 599-8900     Alt. Phone:
Fax:     E-mail: 
Alternate Contact:  
 
Categories: Land Surface Disturbance
Vegetation
Location: New Mexico
Species:
Vegetation Types:
General Comments:
Cost-Benefit Analysis:
BMP Efficacy:
Date Entered: 2009-06-26 10:14 UTC
Last Updated: 2009-06-26 10:14 UTC