American Oil and Gas Reporter - September 2017 - 111

ministration has prioritized efficient permitting. "When I took office, there were
boxes and boxes containing hundreds of
permits being requested by the industry,"
she related. "What better way to destroy an
industry than to never give an answer; to
never to say yes or no to your permit application? We quickly pulled together a team
and worked on all those backlogs, while
making sure we also were working on
permit requests that were walking in the
door. Now, it takes us eight days or fewer
to process an APD and give you an answer.
We understand that time is money."
Similarly, Commissioner Dunn said
the SLO was processing right-of-way
permits in a fraction of the time they
once required.
"When I came into office, we had
more than 500 rights of way pending; it
was taking more than 300 days to get a
right of way from the State Land Office,"
he recalled. "Now we can turn around a
right of way in 41 days. And if you want
to pay three times the money, we can do
it in seven days. We have brought a business sense into the land office, and we
are able to turn things around and get
people back to work."

Water Priorities
Among less encouraging developments,
Dunn predicted the hornshell mussel soon
would receive a threatened or endangered
classification under the Endangered
Species Act. He said its New Mexico
habitat covered 400,000 acres, 90,000 of
which were state lands.
"It probably is going to be listed, and
it is going to have a big effect," he
allowed. "The SLO entered into its own
conservation agreement."
Dunn also told IPANM that he was
seeking to end oil and gas producers'
practice of sourcing hydraulic fracturing
water from the Ogallala Aquifer. He indicated the city of Portales in Roosevelt
County was running out of water from
the Ogallala.
"We have 289 (water) wells," he related. "The majority of them are in the
Ogallala. We have 70 applications for
renewal and are saying that, based on the
technology available, we would like to
stop using the Ogallala for fracturing.
"Municipal use is important and we
need to focus on that," he added. "Somehow, we have to figure out a way to
phase out using the Ogallala for fracturing.
We have gotten a lot of push back, but I
think it is the right thing to do."
Also on the topic of water, Balch from
New Mexico Tech's PRRC noted that
researchers there were exploring ways to
deal with produced water. He held that
New Mexico lacked disposal capacity

Cracking the code for proļ¬table production
in the San Juan Basin's Mancos Shale
and innovative solutions for dealing with
produced water are two or the major subjects being pursued by the Petroleum Recovery Research Center at the New Mexico
Institute of Mining and Technology, reports
PRRC Director Robert Balch. Balch encouraged any interested stakeholders to
participate in the center's research.

adequate for the amount of produced
water the state would yield during the
next couple decades.
"New Mexico is an arid, desert state;
we don't have as much water as we
would like," he continued. "In 2016, New
Mexico produced 36 million gallons of
water and most of it went back into a
hole. That is the cheapest way to deal
with it, but perhaps there is something
we can do to make it cost-effective to
turn that liability into an asset by making
freshwater. There are regulatory and technical hurdles, but I think we are positioned
to start talking about it because we are
going to have a problem with water
during the next decade or so.
"New Mexico Tech does a lot of intellectual property-based work," he added.
"Most of that is in instrumentation or
produced water purification. We are pretty
well placed to start this discussion. I
invite everyone to participate and hopefully
give us some direction."
Other areas of study in which Balch
indicated PRRC was interested included
the most economic ways to produce from
the Mancos Shale. "We are trying to
figure out ways to take some of this shale
success to other parts of the state and
other parts of plays," he described. "Certainly, the Mancos is an ongoing puzzle.
How do we turn that into the next shale
play? We are looking for stakeholders
interested in getting involved in this
process."

Tale Of Two Industries
According to Mullins, president and
principal at Synergy Operating in Farmington, N.M., the contrast between the
types of projects that typify New Mexico's
producing provinces is distinct as ever.
"New Mexico has dual industries,"
he assessed. "In the San Juan Basin, we
are heavily weighted toward natural gas.
Our economy has struggled. Then, you
move down to Southeast New Mexico,
which is predominantly oil production,
and it is another world.
"One portion of New Mexico basically
is manufacturing oil and gas," Mullins
continued. "There has been discussion
about operators drilling as many as 15
horizontal wells in a half section. The
improvements in hydraulic fracturing technology and longer laterals are delivering
tremendous performance in some of these
wells. And you need only one midstream
gas gathering line instead of 15."
Mullins said it was imperative for
IPANM and its allies to remind policymakers about the differences between
new wells from resource plays and marginal wells from mature ones. "We need
to really encourage our legislators and
regulators to think about grandfathering
many of these regulatory provisions so
they do not affect older wells," he urged.
Otherwise, he warned, "We are accelerating the premature abandonment of
a large amount of production. We need a
regulatory structure that supports the continued development of new wells, which
are phenomenal, while balancing that
(with marginal wells), which is going to
be the challenge."

State Rules
Among the regulatory subjects Mullins
discussed were a couple rules on which
he said state regulators were working.
One is a regulation to deal more efficiently with New Mexico's horizontal
wells. "It is important to have an administratively efficient way to drill longerlateral wells, put the various spacing units
together, and pool that acreage in a timely
way," he stated. "IPANM and regulators
recognize we need to improve that process.
We are on draft six of the recommended
rule change, which will come to our
membership in the near future."
Mullins also mentioned the New Mexico
Oil Conservation Division's rules for oil
spill cleanup. "There has been quite a bit
of concern about chlorides, in particular,"
he explained. "Chloride, itself, is not a
contaminant. It tends to be a tracer for the
metals (such as) salt, sodium or calcium.
The real concern is the metal, but it is
more cost-effective to track the chlorides."
Although New Mexico's existing rule
SEPTEMBER 2017 111



American Oil and Gas Reporter - September 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - September 2017

Contents
American Oil and Gas Reporter - September 2017 - 1
American Oil and Gas Reporter - September 2017 - 2
American Oil and Gas Reporter - September 2017 - 3
American Oil and Gas Reporter - September 2017 - Contents
American Oil and Gas Reporter - September 2017 - 5
American Oil and Gas Reporter - September 2017 - 6
American Oil and Gas Reporter - September 2017 - 7
American Oil and Gas Reporter - September 2017 - 8
American Oil and Gas Reporter - September 2017 - 9
American Oil and Gas Reporter - September 2017 - 10
American Oil and Gas Reporter - September 2017 - 11
American Oil and Gas Reporter - September 2017 - 12
American Oil and Gas Reporter - September 2017 - 13
American Oil and Gas Reporter - September 2017 - 14
American Oil and Gas Reporter - September 2017 - 15
American Oil and Gas Reporter - September 2017 - 16
American Oil and Gas Reporter - September 2017 - 17
American Oil and Gas Reporter - September 2017 - 18
American Oil and Gas Reporter - September 2017 - 19
American Oil and Gas Reporter - September 2017 - 20
American Oil and Gas Reporter - September 2017 - 21
American Oil and Gas Reporter - September 2017 - 22
American Oil and Gas Reporter - September 2017 - 23
American Oil and Gas Reporter - September 2017 - 24
American Oil and Gas Reporter - September 2017 - 25
American Oil and Gas Reporter - September 2017 - 26
American Oil and Gas Reporter - September 2017 - 27
American Oil and Gas Reporter - September 2017 - 28
American Oil and Gas Reporter - September 2017 - 29
American Oil and Gas Reporter - September 2017 - 30
American Oil and Gas Reporter - September 2017 - 31
American Oil and Gas Reporter - September 2017 - 32
American Oil and Gas Reporter - September 2017 - 33
American Oil and Gas Reporter - September 2017 - 34
American Oil and Gas Reporter - September 2017 - 35
American Oil and Gas Reporter - September 2017 - 36
American Oil and Gas Reporter - September 2017 - 37
American Oil and Gas Reporter - September 2017 - 38
American Oil and Gas Reporter - September 2017 - 39
American Oil and Gas Reporter - September 2017 - 40
American Oil and Gas Reporter - September 2017 - 41
American Oil and Gas Reporter - September 2017 - 42
American Oil and Gas Reporter - September 2017 - 43
American Oil and Gas Reporter - September 2017 - 44
American Oil and Gas Reporter - September 2017 - 45
American Oil and Gas Reporter - September 2017 - 46
American Oil and Gas Reporter - September 2017 - 47
American Oil and Gas Reporter - September 2017 - 48
American Oil and Gas Reporter - September 2017 - 49
American Oil and Gas Reporter - September 2017 - 50
American Oil and Gas Reporter - September 2017 - 51
American Oil and Gas Reporter - September 2017 - 52
American Oil and Gas Reporter - September 2017 - 53
American Oil and Gas Reporter - September 2017 - 54
American Oil and Gas Reporter - September 2017 - 55
American Oil and Gas Reporter - September 2017 - 56
American Oil and Gas Reporter - September 2017 - 57
American Oil and Gas Reporter - September 2017 - 58
American Oil and Gas Reporter - September 2017 - 59
American Oil and Gas Reporter - September 2017 - 60
American Oil and Gas Reporter - September 2017 - 61
American Oil and Gas Reporter - September 2017 - 62
American Oil and Gas Reporter - September 2017 - 63
American Oil and Gas Reporter - September 2017 - 64
American Oil and Gas Reporter - September 2017 - 65
American Oil and Gas Reporter - September 2017 - 66
American Oil and Gas Reporter - September 2017 - 67
American Oil and Gas Reporter - September 2017 - 68
American Oil and Gas Reporter - September 2017 - 69
American Oil and Gas Reporter - September 2017 - 70
American Oil and Gas Reporter - September 2017 - 71
American Oil and Gas Reporter - September 2017 - 72
American Oil and Gas Reporter - September 2017 - 73
American Oil and Gas Reporter - September 2017 - 74
American Oil and Gas Reporter - September 2017 - 75
American Oil and Gas Reporter - September 2017 - 76
American Oil and Gas Reporter - September 2017 - 77
American Oil and Gas Reporter - September 2017 - 78
American Oil and Gas Reporter - September 2017 - 79
American Oil and Gas Reporter - September 2017 - 80
American Oil and Gas Reporter - September 2017 - 81
American Oil and Gas Reporter - September 2017 - 82
American Oil and Gas Reporter - September 2017 - 83
American Oil and Gas Reporter - September 2017 - 84
American Oil and Gas Reporter - September 2017 - 85
American Oil and Gas Reporter - September 2017 - 86
American Oil and Gas Reporter - September 2017 - 87
American Oil and Gas Reporter - September 2017 - 88
American Oil and Gas Reporter - September 2017 - 89
American Oil and Gas Reporter - September 2017 - 90
American Oil and Gas Reporter - September 2017 - 91
American Oil and Gas Reporter - September 2017 - 92
American Oil and Gas Reporter - September 2017 - 93
American Oil and Gas Reporter - September 2017 - 94
American Oil and Gas Reporter - September 2017 - 95
American Oil and Gas Reporter - September 2017 - 96
American Oil and Gas Reporter - September 2017 - 97
American Oil and Gas Reporter - September 2017 - 98
American Oil and Gas Reporter - September 2017 - 99
American Oil and Gas Reporter - September 2017 - 100
American Oil and Gas Reporter - September 2017 - 101
American Oil and Gas Reporter - September 2017 - 102
American Oil and Gas Reporter - September 2017 - 103
American Oil and Gas Reporter - September 2017 - 104
American Oil and Gas Reporter - September 2017 - 105
American Oil and Gas Reporter - September 2017 - 106
American Oil and Gas Reporter - September 2017 - 107
American Oil and Gas Reporter - September 2017 - 108
American Oil and Gas Reporter - September 2017 - 109
American Oil and Gas Reporter - September 2017 - 110
American Oil and Gas Reporter - September 2017 - 111
American Oil and Gas Reporter - September 2017 - 112
American Oil and Gas Reporter - September 2017 - 113
American Oil and Gas Reporter - September 2017 - 114
American Oil and Gas Reporter - September 2017 - 115
American Oil and Gas Reporter - September 2017 - 116
American Oil and Gas Reporter - September 2017 - 117
American Oil and Gas Reporter - September 2017 - 118
American Oil and Gas Reporter - September 2017 - 119
American Oil and Gas Reporter - September 2017 - 120
American Oil and Gas Reporter - September 2017 - 121
American Oil and Gas Reporter - September 2017 - 122
American Oil and Gas Reporter - September 2017 - 123
American Oil and Gas Reporter - September 2017 - 124
https://www.nxtbook.com/nxtbooks/aogr/202404
https://www.nxtbook.com/nxtbooks/aogr/202403
https://www.nxtbook.com/nxtbooks/aogr/202402
https://www.nxtbook.com/nxtbooks/aogr/202401
https://www.nxtbook.com/nxtbooks/aogr/202312
https://www.nxtbook.com/nxtbooks/aogr/202311
https://www.nxtbook.com/nxtbooks/aogr/pbios_202310
https://www.nxtbook.com/nxtbooks/aogr/202309
https://www.nxtbook.com/nxtbooks/aogr/202308
https://www.nxtbook.com/nxtbooks/aogr/202307
https://www.nxtbook.com/nxtbooks/aogr/202306
https://www.nxtbook.com/nxtbooks/aogr/202305
https://www.nxtbook.com/nxtbooks/aogr/202304
https://www.nxtbook.com/nxtbooks/aogr/202303
https://www.nxtbook.com/nxtbooks/aogr/202302
https://www.nxtbook.com/nxtbooks/aogr/202301
https://www.nxtbook.com/nxtbooks/aogr/202212
https://www.nxtbook.com/nxtbooks/aogr/202211
https://www.nxtbook.com/nxtbooks/aogr/202210
https://www.nxtbook.com/nxtbooks/aogr/202209
https://www.nxtbook.com/nxtbooks/aogr/202208
https://www.nxtbook.com/nxtbooks/aogr/202207
https://www.nxtbook.com/nxtbooks/aogr/202206
https://www.nxtbook.com/nxtbooks/aogr/202205
https://www.nxtbook.com/nxtbooks/aogr/202204
https://www.nxtbook.com/nxtbooks/aogr/202203
https://www.nxtbook.com/nxtbooks/aogr/202202
https://www.nxtbook.com/nxtbooks/aogr/202201
https://www.nxtbook.com/nxtbooks/aogr/202112
https://www.nxtbook.com/nxtbooks/aogr/202111
https://www.nxtbook.com/nxtbooks/aogr/pbios_202110
https://www.nxtbook.com/nxtbooks/aogr/202109
https://www.nxtbook.com/nxtbooks/aogr/202108
https://www.nxtbook.com/nxtbooks/aogr/202107
https://www.nxtbook.com/nxtbooks/aogr/202106
https://www.nxtbook.com/nxtbooks/aogr/202105
https://www.nxtbook.com/nxtbooks/aogr/202104
https://www.nxtbook.com/nxtbooks/aogr/202103
https://www.nxtbook.com/nxtbooks/aogr/202102
https://www.nxtbook.com/nxtbooks/aogr/202101
https://www.nxtbook.com/nxtbooks/aogr/202012
https://www.nxtbook.com/nxtbooks/aogr/202011
https://www.nxtbook.com/nxtbooks/aogr/202010
https://www.nxtbook.com/nxtbooks/aogr/202009
https://www.nxtbook.com/nxtbooks/aogr/202008
https://www.nxtbook.com/nxtbooks/aogr/202007
https://www.nxtbook.com/nxtbooks/aogr/202006
https://www.nxtbook.com/nxtbooks/aogr/202005
https://www.nxtbook.com/nxtbooks/aogr/202004
https://www.nxtbook.com/nxtbooks/aogr/202003
https://www.nxtbook.com/nxtbooks/aogr/202002
https://www.nxtbook.com/nxtbooks/aogr/202001
https://www.nxtbook.com/nxtbooks/aogr/201912
https://www.nxtbook.com/nxtbooks/aogr/201911
https://www.nxtbook.com/nxtbooks/aogr/201910
https://www.nxtbook.com/nxtbooks/aogr/201909
https://www.nxtbook.com/nxtbooks/aogr/201908
https://www.nxtbook.com/nxtbooks/aogr/201907
https://www.nxtbook.com/nxtbooks/aogr/201906
https://www.nxtbook.com/nxtbooks/aogr/201905
https://www.nxtbook.com/nxtbooks/aogr/201904
https://www.nxtbook.com/nxtbooks/aogr/201903
https://www.nxtbook.com/nxtbooks/aogr/201902
https://www.nxtbook.com/nxtbooks/aogr/201901
https://www.nxtbook.com/nxtbooks/aogr/201812
https://www.nxtbook.com/nxtbooks/aogr/201811
https://www.nxtbook.com/nxtbooks/aogr/201810
https://www.nxtbook.com/nxtbooks/aogr/pbios_201810
https://www.nxtbook.com/nxtbooks/aogr/201809
https://www.nxtbook.com/nxtbooks/aogr/201808
https://www.nxtbook.com/nxtbooks/aogr/201807
https://www.nxtbook.com/nxtbooks/aogr/201806
https://www.nxtbook.com/nxtbooks/aogr/201805
https://www.nxtbook.com/nxtbooks/aogr/201804
https://www.nxtbook.com/nxtbooks/aogr/201803
https://www.nxtbook.com/nxtbooks/aogr/201802
https://www.nxtbook.com/nxtbooks/aogr/201801
https://www.nxtbook.com/nxtbooks/aogr/201712
https://www.nxtbook.com/nxtbooks/aogr/201711
https://www.nxtbook.com/nxtbooks/aogr/201710
https://www.nxtbook.com/nxtbooks/aogr/201709
https://www.nxtbook.com/nxtbooks/aogr/201708
https://www.nxtbook.com/nxtbooks/aogr/201707
https://www.nxtbook.com/nxtbooks/aogr/201706
https://www.nxtbook.com/nxtbooks/aogr/201705
https://www.nxtbook.com/nxtbooks/aogr/201704
https://www.nxtbook.com/nxtbooks/aogr/201703
https://www.nxtbook.com/nxtbooks/aogr/201702
https://www.nxtbook.com/nxtbooks/aogr/201701
https://www.nxtbook.com/nxtbooks/aogr/201612
https://www.nxtbook.com/nxtbooks/aogr/201611
https://www.nxtbook.com/nxtbooks/aogr/201610
https://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
https://www.nxtbook.com/nxtbooks/aogr/201609
https://www.nxtbook.com/nxtbooks/aogr/201608
https://www.nxtbook.com/nxtbooks/aogr/201607
https://www.nxtbook.com/nxtbooks/aogr/201606
https://www.nxtbook.com/nxtbooks/aogr/201605
https://www.nxtbook.com/nxtbooks/aogr/201604
https://www.nxtbook.com/nxtbooks/aogr/201603
https://www.nxtbook.com/nxtbooks/aogr/201602
https://www.nxtbook.com/nxtbooks/aogr/201601
https://www.nxtbook.com/nxtbooks/aogr/201512
https://www.nxtbook.com/nxtbooks/aogr/201511
https://www.nxtbook.com/nxtbooks/aogr/201510
https://www.nxtbook.com/nxtbooks/aogr/201509
https://www.nxtbook.com/nxtbooks/aogr/201508
https://www.nxtbook.com/nxtbooks/aogr/201507
https://www.nxtbook.com/nxtbooks/aogr/201506
https://www.nxtbook.com/nxtbooks/aogr/201505
https://www.nxtbook.com/nxtbooks/aogr/201504
https://www.nxtbook.com/nxtbooks/aogr/201503
https://www.nxtbook.com/nxtbooks/aogr/201502
https://www.nxtbook.com/nxtbooks/aogr/201501
https://www.nxtbook.com/nxtbooks/aogr/201412
https://www.nxtbook.com/nxtbooks/aogr/201411
https://www.nxtbook.com/nxtbooks/aogr/201410
https://www.nxtbook.com/nxtbooks/aogr/201409
https://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
https://www.nxtbook.com/nxtbooks/aogr/201408
https://www.nxtbook.com/nxtbooks/aogr/201407
https://www.nxtbook.com/nxtbooks/aogr/201406
https://www.nxtbook.com/nxtbooks/aogr/201405
https://www.nxtbook.com/nxtbooks/aogr/201404
https://www.nxtbook.com/nxtbooks/aogr/201403
https://www.nxtbook.com/nxtbooks/aogr/201402
https://www.nxtbook.com/nxtbooks/aogr/201401
https://www.nxtbook.com/nxtbooks/aogr/201312
https://www.nxtbook.com/nxtbooks/aogr/201311
https://www.nxtbook.com/nxtbooks/aogr/201310
https://www.nxtbook.com/nxtbooks/aogr/201309
https://www.nxtbook.com/nxtbooks/aogr/201308
https://www.nxtbook.com/nxtbooks/aogr/201307
https://www.nxtbook.com/nxtbooks/aogr/201306
https://www.nxtbook.com/nxtbooks/aogr/201305
https://www.nxtbook.com/nxtbooks/aogr/201304
https://www.nxtbook.com/nxtbooks/aogr/201303
https://www.nxtbook.com/nxtbooks/aogr/201302
https://www.nxtbook.com/nxtbooks/aogr/201301
https://www.nxtbook.com/nxtbooks/aogr/201212
https://www.nxtbook.com/nxtbooks/aogr/201211
https://www.nxtbook.com/nxtbooks/aogr/201210
https://www.nxtbook.com/nxtbooks/aogr/201209
https://www.nxtbook.com/nxtbooks/aogr/2012_pbios
https://www.nxtbook.com/nxtbooks/aogr/201208
https://www.nxtbook.com/nxtbooks/aogr/201207
https://www.nxtbook.com/nxtbooks/aogr/201206
https://www.nxtbook.com/nxtbooks/aogr/201205
https://www.nxtbook.com/nxtbooks/aogr/201204
https://www.nxtbook.com/nxtbooks/aogr/201203
https://www.nxtbook.com/nxtbooks/aogr/201202
https://www.nxtbook.com/nxtbooks/aogr/201201
https://www.nxtbook.com/nxtbooks/demo/aogr_clone
https://www.nxtbook.com/nxtbooks/aogr/201112
https://www.nxtbookmedia.com