This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
New Mexico Plugging Requirements are regulations imposed by the New Mexico Oil Conservation Division (OCD) to ensure proper abandonment of oil and gas wells. These requirements are designed to protect the environment, prevent the migration of fluids, and maintain public safety. There are two main types of New Mexico Plugging Requirements: 1. Plugging and Abandonment Requirements: These requirements emphasize the abandonment of oil and gas wells that are no longer productive, viable, or economically feasible. Operators are responsible for plugging all wells in compliance with the OCD's technical guidelines. This process involves the proper sealing of well bores with various materials, such as cement, to prevent any leakage or contamination of underground formations. 2. Surface Restoration Requirements: In addition to well plugging, New Mexico Plugging Requirements also dictate the restoration of the surface areas around abandoned wells. Operators are required to remove or properly cap all surface equipment, tanks, and pipelines. They must also restore the land to its original condition or perform reclamation activities, including erosion control, reseeding, and reclamation of disturbed areas, to ensure the land is safe and aesthetically pleasing. New Mexico Plugging Requirements include the following key aspects: 1. Plugging Methods: The OCD specifies the plugging techniques and materials to be used, such as cement, to properly seal off well bores. The methods vary depending on factors like well depth, well type (vertical or horizontal), and specific geological conditions. 2. Documentation and Reporting: Operators must submit comprehensive documentation to the OCD, including plugging plans, cementing reports, and completion notifications. These reports provide proof that the plugging requirements have been successfully met. 3. Inspections and Compliance: The OCD conducts regular inspections to ensure compliance with the plugging requirements. Operators need to adhere to all guidelines and promptly rectify any non-compliance issues identified during inspections. 4. Financial Assurance: To cover the cost of plugging and surface restoration, operators must provide financial assurances, such as surety bonds, letters of credit, or cash deposits. This ensures that abandoned wells are properly plugged and reclaimed, even if operators become financially insolvent. 5. Well Site Safety: New Mexico Plugging Requirements also include provisions for ensuring the safety of personnel and the surrounding communities during the plugging and surface restoration activities. By implementing and enforcing these New Mexico Plugging Requirements, the OCD aims to prevent potential environmental contamination, protect groundwater resources, and leave abandoned well sites in a safe and visually pleasing condition.
