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Last updated: September 28, 2023 | Reading Time: 2 minutes

New Mexico, Texas Team Up to Regulate Permian Basin Oil and Gas Wells Crossing State Line

Permian Basin Oil and Gas Wells

Oil and gas operations in the Permian Basin – shared by southeast New Mexico and West Texas – boomed in recent years with wells sprouting up around the state line between the two states.

Wells even crossed state lines, being drilled horizontally from origin points in either New Mexico or Texas and stretching up to 10 miles across the border.

They are ensuring such wells follow the regulations of both states. New Mexico’s Oil Conservation Division (OCD) and the Texas Railroad Commission (RRC) signed an agreement. They will regulate interstate oil and gas facilities in tandem.

A memorandum of understanding (MOA) was signed by the two regulators last month. This is to require they both get adequate reporting and compliance from oil and gas operators that cross the state’s border.

It arose from a 2021 case where an operator sought to permit a cross-border well. It is what the OCD said required collaboration between the two agencies.

The MOA was intended to clarify how production from such wells would be allocated. Along with it is permitting and reporting the requirements across the two jurisdictions.

OCD Director Adrienne Sandoval said the deal was needed during record-breaking growth in oil production in the Permian Basin.

Now the U.S. is the most active fossil fuel region producing about 5 million barrels per day. Remember that it is about 11 million barrels produced daily across the U.S.

Click here to read the full article 

Source: Carlsbad Current-Argus

If you have further questions about the topic related to Permian Basin Oil and Gas Wells, feel free to contact us here.

 

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