This is significant news for the oil and gas industry in Eddy and Lea County, NM. The cancellation of 75 Devonian/Silurian Salt Water Disposal (SWD) applications by the OCD (Oil Conservation Division) reflects a proactive approach to addressing seismic activity concerns in the area.
Key Points:
- Effective Immediately: The cancellations take effect immediately, impacting both pending and protested applications.
- Injection Authority Restrictions: The injection authority of UIC Class II wells for Devonian and Silurian disposal within the SRA is restricted if they are only authorized under a UIC Permit and do not have an approved Application for Permit to Drill (APD).
- Operator Rebuttal: Operators can demonstrate that their SWDs will not contribute to seismicity to potentially have the cancellations reversed.
Implications:
- Operational Delays: Immediate cancellations could lead to operational delays for companies planning to use these SWD wells.
- Seismicity Monitoring: This move indicates a heightened focus on monitoring and mitigating seismic activity in the region.
- Regulatory Scrutiny: Operators may face increased scrutiny and may need to provide more detailed seismic impact assessments for future applications.
This development will likely prompt discussions and strategic adjustments among operators in the region.
