As everyone should be aware by now the State Land Office is pushing for approval of their new initiatives, including Pore Space Density, Proposed Cultural Properties Rule and the Disposal Wells Bonding amounts. Jim has already given the details for each initiative, I wanted to just touch base on some concerns for Operators in the SE.
Pore Space Density
- Questionable legality since the laws about who owns the pore space is not clearly defined.
- Will create hurdles between Operators and ranchers and private land owners, since they will certainly be interested in receiving payment for “damages” to their pore space as well.
- SLO is trying (and succeeding) to get Operators to settle on a discounted amount from their valuation table, in return the SLO will not challenge a SWD application at the OCD hearing. This potentially creates a precedent that can be used against objections to this rule later.
Proposed Cultural Properties Rule
- This can kill industry by extending the time is takes for any action on state lands.
- Creates incentive for backdoor dealing with tribes.
Disposal Well Bonding amounts
- Ridiculously high amount for Deep well Reclamation bond ($250,000).
- Operators will prematurely plug wells that have value.
Don’t forget we will be having the IPANM Southeast Christmas Party on December 18th at the Liberty in Roswell. We will get a chance to meet Spur Energy Partners’ CEO Jay Graham!
I also want to pass along some sad news about a passing of a longtime member and Landman. John Michael Richardson passed away swiftly and unexpectedly on November 6th, 2019 from a sudden cardiac arrest. I hope everyone will keep him and his family in your prayers, he was truly a good man and he will be missed.