Section 7-29A-2 - Definitions.
7-29A-2. Definitions.
As used in the Enhanced Oil Recovery Act [7-29A-1 NMSA 1978]:
A. "crude oil" means oil and other liquid hydrocarbons removed from natural gas at or near the wellhead;
B. "division" means the oil conservation division of the energy, minerals and natural resources department;
C. "enhanced recovery project" means the use or the expanded use of any process for the displacement of crude oil from an oil well or pool classified by the division pursuant to Paragraph (11) of Subsection B of Section 70-2-12 NMSA 1978 other than a primary recovery process, including but not limited to the use of a pressure maintenance process, a water flooding process, an immiscible, miscible, chemical, thermal or biological process or any other related process;
D. "expansion or expanded use" means a significant change or modification, as determined by the oil conservation division in:
(1) the technology or process used for the displacement of crude oil from an oil well or pool classified by the division pursuant to Paragraph (11) of Subsection B of Section 70-2-12 NMSA 1978; or
(2) the expansion, extension or increase in size of the geologic area or adjacent geologic area that could reasonably be determined to represent a new or unique area of activity;
E. "operator" means the person responsible for the actual physical operation of an enhanced recovery project;
F. "person" means any individual, estate, trust, receiver, business trust, corporation, firm, copartnership, cooperative, joint venture, association or other group or combination acting as a unit, and the plural as well as the singular number;
G. "positive production response" means that the rate of oil production from the wells or pools affected by an enhanced recovery project is greater than the rate that would have occurred without the project;
H. "primary recovery" means the displacement of crude oil from an oil well or pool classified by the division pursuant to Paragraph (11) of Subsection B of Section 70-2-12 NMSA 1978 into the well bore by means of the natural pressure of the oil well or pool, including but not limited to artificial lift;
I. "recovered oil tax rate" means that tax rate, as set forth in Paragraph (3) of Subsection A of Section 7-29-4 NMSA 1978, on crude oil produced from an enhanced recovery project;
J. "secondary recovery project" means an enhanced recovery project that:
(1) occurs subsequent to the completion of primary recovery and is not a tertiary recovery project;
(2) involves the application, in accordance with sound engineering principles, of carbon dioxide miscible fluid displacement, pressure maintenance, water flooding or any other secondary recovery method accepted and approved by the division pursuant to the provisions of Paragraph (14) of Subsection B of Section 70-2-12 NMSA 1978 that can reasonably be expected to result in an increase, determined in light of all facts and circumstances, in the amount of crude oil that may ultimately be recovered; and
(3) encompasses a pool or portion of a pool the boundaries of which can be adequately defined and controlled;
K. "severance" means the taking from the soil of any product in any manner whatsoever;
L. "termination" means the discontinuance of an enhanced recovery project by the operator; and
M. "tertiary recovery project" means an enhanced recovery project that:
(1) occurs subsequent to the completion of a secondary recovery project;
(2) involves the application, in accordance with sound engineering principles, of carbon dioxide miscible fluid displacement, pressure maintenance, water flooding or any other tertiary recovery method accepted and approved by the division pursuant to the provisions of Paragraph (14) of Subsection B of Section 70-2-12 NMSA 1978 that can reasonably be expected to result in an increase, determined in light of all facts and circumstances, in the amount of crude oil that may ultimately be recovered; and
(3) encompasses a pool or portion of a pool the boundaries of which can be adequately defined and controlled.