State oil board approves increase in San Juan well density

Texas company’s request had drawn opposition from environmentalists

The state Oil Conservation Commission approved a request this week by Texas-based Hillcorp Energy Co. to double well density limits in the San Juan Basin in northwest New Mexico.

The decision allows oil and gas operators to drill up to eight wells instead of four within each 320-acre tract above the BlancoMesaverde gas pool, an underground formation beneath San Juan and Rio Arriba counties.

The three-member commission approved the request despite impassioned objections from public officials and environmentalists, according to the Santa Fe New Mexican. U.S. Congresswoman and now gov.-elect Michelle Lujan Grisham sent a letter asking the OCC to postpone deliberations until environmental impacts are evaluated. U.S. Sens. Tom Udall and Martin Heinrich, and U.S. Rep. Ben Ray Lujan, also sent letters.

“The oil and gas industry is a cornerstone of the New Mexican economy, but it is imperative that we balance this key economic driver with health, safety and environmental considerations,” Lujan Grisham wrote.

Attorney General Hector Balderas vowed to review the OCC decision because of concerns about transparency and inadequate public input.

Industry representatives said the rule change will allow more operational efficiency as companies recomplete existing wells rather than build new ones to draw more hydrocarbons from the Blanco-Mesaverde gas pool.