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XII-iS Combined Area Gas Cash Flow E(NPV) 10% Discount Rate 250 $140 million N u m b e r 0 f 200 150 0 b s e r 100 v a t 1 0 n s 50 o ‎0oooooס‎15‎ ‎0oooooס‎10‎ ‎0oooooס‎5‎ E($NPV) ‎0oooooס‎25‎ ‎0oooooס‎20‎ Information Only Figure 8
Oil Simulation Example XII-16 Year 1995 1996 19971 1998 1999 2000 2001 New Wells 22 22 20' 20 20 20 10 ... _-'. 1nj Wells I 107 9 Total Wells i 22 44 64 84 104 123 115 Invesunem i 8998097 9193738 8185529 8167825 8290645 8112665 4172372 Total Prod 'I 733099 1172687 1404920 1538256 1612839 1654706 1287398 Sec Recovery I Pricelbbl I 18 15.91 18.47 20.36 20.55 17.35 16.72 Total Op Revs I 13195782 18657450 25948872 31318892 33143841 28709149 21525295 Total 00 Cost i 561652 1311552 2078536 2190214 2148598 2591786 3530624 Severance Taxi 287008 405800 564388 681186 720879 624424 468175 Depreciaton 0 1285828 3517419 4977030 5885278 6552139 7248799 Royalties 659789 932873 1297444 1565945 1657192 1435457 1076265 NI BefDeol I 11687333 14721397 18491085 21904517 22731894 17505343 9201432 Depletion 1979367 2798618 3892331 4697834 4971576 4306372 3228794 Taxable Inc 9707966 11922779 14598754 17206683 17760318 13198971 5972638 State Tax 1297805 1466131 1669505 1867708 1909784 1563122 1013920 Corp Tax 3300708 4U53745 4963576 5850272 6038508 4487650 2030697 Net Income 5109453 6402903 7965673 9488703 9812026 7148199 2928021 1 CashAow -1909277 2492794 9185987 13793089 15928677 13973282 11601782 MonthlyPV 11.07931197 9.544922546 8.223032863 7.084213533 6.103110886 5.257882518 4.529711009 QuarterlyPV 3.651384127 3.1514114 2.719898392 2.347471124 2.026039169 1.748619896 1.509186786 PVRev 12183349 14840326 17781536 18489143 1685671 j 12579111 8125280 PVCAow -1762790 1982794 6294723 8142766 8101207 6122490 4379393 PV SevTax 261994 319711 383770 399766 365132 272970 176641 PV StateTax 1184696 1155095 1135221 1096098 967324 683327 382549 PV CorpTax 3U13038 3J93755 3375106 3433336 3058563 1961799 766175 PVRoyal 602286 734967 882229 919003 839384 627517 406071 Information Only Table 1
Page 1 and 2:
FINAL REpORT Evaluation of Mineral
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EXECUTIVE SUMMARY E-l The Waste Iso
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E-3 Resources and reserves of the 1
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£-5 Expected Net Present Values fo
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E-7 Expected revenue present values
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E-9 VOLUME 1 Chapter I POTENTIAL IN
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E-11 VOLUME 1 Chapter II ENVIRONMEN
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E-13 VOLUME 2 Chapter III OVERVIEW
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E-15 VOLUME 2 Chapter IV . FUTURE M
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E-17 VOLUME 2 Chapter VI MINING TEC
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E-19 VOLUME 2 Chapter VII METHOD OF
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Information Only E-21 Figure 28. Th
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E-23 VOLUME 2 Chapter VIII VALUATIO
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E-25 VOLUME 3 Chapter IX REGULATION
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M atnx · aCI'd" IZmg . . . . . . .
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E-29 PROJECTED FUTURE OIL AND GAS P
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E-31 Figure 27. Casing program of t
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Information Only E-33 Figure 58. Ty
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E-35 Table 15E. Los Medanos Bone Sp
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E-37 Table 5. Expected Net Present
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Evaluation of Mineral Resources at
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I-I POTENTIAL INDUSTRIAL MINERAL RE
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The report, authored by C. M. Nethe
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With full access to the surface, th
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occurrences in the WIPP site for th
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depth of 1000 ft. Rustler gypsum un
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is 320 acres, (3) drilling restrict
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1120 acres. Based on hydrocarbon re
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ls of the crude oil (43%), 211 BCF
Page 59 and 60:
obtained by use of a planimeter. Th
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1-19 Keesey, 1.1., 1979. (See Sipes
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Sipes, Williamson, and Aycock, 1977
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Table I. Evaluation of mineral reso
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Table I. (conL) Quantity present Pr
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1-27 Table 3. Effect of allowing th
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II-i TABLE OF CONTENTS ENVIRONMENTA
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II-ii New Mexicp Water Quality Act
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the Federal Register, National Arch
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II-4 U.S. Environmental Protection
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II-6 U.S. Environmental Protection
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• • • • Filing and other ad
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0-10 • Transfers (43 CFR 3106)
Page 85 and 86:
Operations that involve subsurface
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Pennits. special reports. and fees
Page 89 and 90:
RCRA Subtitle D - Solid Waste RCRA
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• National secondary drinking wat
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the withdrawal area that are leased
Page 95 and 96:
• Notification requirements when
Page 97 and 98:
New Mexico Naroral Resources Depamn
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Permits, special repons, and fees I
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II-28 Permits. special reports. and
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II-30 Operations that extract oil a
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industrial, commercial, mining, and
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• Prohibition on disposing of any
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References New Mexico Game and Fish
Page 111 and 112:
Clean Air Act TABLE 1 hnpact level
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TABLE 1 hnpact level of statutes an
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TABLE 2 Impact level of statutes an
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FINAL REPORT Evaluation of Mineral
Page 119 and 120:
Page 121 and 122:
Table 2. K 2 0 equivalent wt. % of
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The United States ranked fourth in
Page 125 and 126:
have extensive sections of laminate
Page 127 and 128:
poor potash deposits probably preci
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followed by froth flotation (Fig. 6
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Information Only III-ll Hayes P. T.
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III-13 Fig.!. Location of the Carls
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III-IS Figure 3. Diagrammatic north
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Fig. 5. Vertical cyclic sequences i
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Fig. 7. Simplified potash crystalli
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1lI-21 Table 2. KzO Equivalent wt.
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llI-23 Table 4. Potash Statistics f
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m-25 Table 6. General Mineralogy an
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Page 149 and 150:
IV-l FUTURE MI~lNG TECHNOLOGY Georg
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Along with the improvements listed
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Saskatchewan and in thick but highl
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V-i TABLE OF CONTENTS Introduction
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Flotation chemistry Recently, non-e
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tures resulting in high salt solubi
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VI-ii Table 8. Case 1 - 4th ore zon
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Vl-2 of these three chemicals plus
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shows barrier pillars, but their us
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maintenance, and periodic replaceme
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Therefore, the engineering economic
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_J"L LJ::L.J DO DO ~ LJ L '"-':-:1.
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II IK'~II II Ṇ ... , ~ > . VI '-
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Vl-14 Table 1. Carlsbad Potash Prod
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Table 3. Salient potash l statistic
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Table 5. Case 1 - 4th ORE ZONE CASH
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Page 185 and 186:
Page 187 and 188:
u j u ~ uu iTIm!.g!c!~y•. ( j ~,t
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Table 13. Case 3 - 4th ORE ZONE CAS
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Table 15. Case 3 • 10th ORE ZONE
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_------._._ Table 17. Summary of En
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Table 19. Mining Life Versus Cut-of
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VII-i TABLE OF CONTENTS FORMULATION
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Information Only VII-iii Figure 32.
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VII-l MEmOD OF POTASH RESERVE EVALU
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Information Only VII-3 As mentioned
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VII-5 DEFINITIONS OF ORE RESERVES V
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Vll-7 hole records. That method can
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VII-9 tonnage factor equal to 14.8
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VlI-ll consistent with the known st
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VII-13 REFERENCES John, C. B., Chee
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VII-15 Table 2 Resources and reserv
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Table 4. In-ulace resources for oth
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Vll-19 2 6 5 4 3 2 ~..\d..J-.·· :
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VII-21 2 1 6 5 4 3 2 1 1 ·····
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0 -l: 0.0-0.5 0.5-1.0 1.0-1.5 1.5-2
Page 225 and 226:
~ :::r ~o _. a. (1) .... C:::N ~o _
Page 227 and 228:
Information Only :e =r »Q Q.CD --
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Information Only _. ~-:T >Q c.co cN
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Information Only 0.0-0.5 0.5-1.0 1.
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Information Only :e :::r ;x>° cN .
Page 235 and 236:
Information Only 0.0-0.5 0.5-1.0 1.
Page 237 and 238:
Figure 20 4th Ore Zone Equivalent L
Page 239 and 240:
- L_' ••__1 ---' ~ .....__ I 16
Page 241 and 242:
- I.-... __J __J k. _ 14 12 --- ---
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VTI-43 2 6 5 4 3 2 ,, , 2 M..,..---
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Vll-45 2 6 5 4 3 2 , 3 35 '36 •
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VII-47 2 6 5 4 3 2 , 4 25 -374 ~"1
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Information Only 6v-IlA o- ..... »
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Information Only o- ..... »::r .£
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0 - I\:l >< )( )( - - 0 0 0- CAl 0
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Information Only .... 9 >::T' .9:0
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Information Only -'" o »~ -enCl) .
Page 259 and 260:
Information Only ~ a »st .9:0 -c:
Page 261 and 262:
Information Only -L o »:T .Q;o c::
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Information Only ..... o »g. .9:0
Page 265 and 266:
L.... I _ - , .. __J _....... -~ 25
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L . . ----.. - ___~J ~. J I ....,--
Page 269 and 270:
Vll-69 2 6 5 4 3 2 • '34 .·--·
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Vll-71 2 6 5 4 3 2 '_'_,~L::~--L·~
Page 273 and 274:
Vll-73 2 6 5 4 3 2 ~ l ----- ~~.~~~
Page 275 and 276:
Vll·75 2 6 5 4 3 2 - --~';~_:~~~'"
Page 277 and 278:
o Tons of Ore ~ N Co) ~ C1l en 0 0
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Information Only ~ =so CD ~ _'::J O
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Information Only (0-:T o.... CD _N
Page 283 and 284:
Information Only
Page 285 and 286:
Information Only ~ =r o.., co N o ~
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Information Only to-:T ọ .... CD
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L... ..- .. .J , ---' , ...-.. 30 2
Page 291 and 292:
Page 293 and 294:
VIII-I VIII VALUATION OF POTASH RES
Page 295 and 296:
VIII-3 With respect to actual explo
Page 297 and 298:
VIII-5 the simulation include: All
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Information Only VIII-7 data were u
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VIII-9 Potash Simulation Example Ye
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Table 2. Expected revenue present v
Page 305 and 306:
VIII-13 APPENDIX This Appendix cont
Page 307 and 308:
VIII-IS Scenario 2, 15 % discount r
Page 309 and 310:
VIII-17 Lang WIPP Site Data, Case 1
Page 311 and 312:
VIII-19 Lang WIPP Site Data. Case 2
Page 313 and 314:
Page 315 and 316:
VIII-23 Lang WIPP Site Dala, Case 1
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
VIII-29 Sylvite WIPP Site Data, Sce
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VIII-31 Sylvite WIPP Site Data, Sce
Page 325 and 326:
VIII-33 Lang Combined Area Data, Ca
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vm·35 Lang Combined Area Data, Cas
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
VIII-41 Lang Combined Data, Case 1,
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Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
VIII-51 Sylvite Combined Area Data,
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VIII-53 Sylv~e Combined Area Data,
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VIII-55 Sylvite Combined Area Data,
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VIII-57 Lang Additional Area Data,
Page 351 and 352:
VIII-59 Lang Addnional Area Data, C
Page 353 and 354:
VIlI-61 Lang Additional Area Data,
Page 355 and 356:
VIII-63 Lang Addition Data, Case 1,
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
VIlI-69 Sylvite Additional Area Dat
Page 363 and 364:
VIII-71 Sylvite Additional Area Dat
Page 365 and 366:
Certificatioll _ We certify under p
Page 367 and 368:
IX-i TABLE OF CONTENTS REGULATIONS
Page 369 and 370:
egulations for drilling oil and gas
Page 371 and 372:
IX-4 characteristics must be favora
Page 373 and 374:
IX-6 ENERGY, STATE OF NEW MEX ICO M
Page 375 and 376:
IX-8 -3- Case No. 9316 Order No. R-
Page 377 and 378:
IX-lO -seaseNo. 931 6 Order No. R-I
Page 379 and 380:
IX-12 -7- ea s e No. 9316 O~de~ No.
Page 381 and 382:
IX-14 -9- Case No. 9316 Order No. R
Page 383 and 384:
IX-16 -11 - Case No. 9316 Order No.
Page 385 and 386:
IX-I8 -13- Ca s e No. 9316 Order No
Page 387 and 388:
In attempting to accomplish. this,
Page 389 and 390:
IX-22 provided by applicable laws a
Page 391 and 392:
IX-24 the depth of the ore plus ten
Page 393 and 394:
IX-26 IV. LQcation Qf Wells· and N
Page 395 and 396:
IX-28 C. In the event the increased
Page 397 and 398:
IX-30 -2- EXHIBIT "A" con'd Section
Page 399 and 400:
IX-32 -u- EXHIBIT "A" eon'd LEA COU
Page 401 and 402:
IX-34 -6- EXHIBIT "A" eon'd T~VNSHI
Page 403 and 404:
IX-36 -7- EXHIBIT "A" eon"d EDDY CO
Page 405 and 406:
J ' , IX-38 ( Friday November 18. 1
Page 407 and 408:
- IX-40 . , '. Of: .m~la c ,.lha O.
Page 409 and 410:
-_...:-- IX-42 Federal Regisler I V
Page 411 and 412:
_-- -_.. ----_ ..-- ----- IX-44 , .
Page 413 and 414:
- ( ( Fedenl ltagistu / Vol. s.1. N
Page 415 and 416:
IX-48 Federal R~ster " Vol. 53, No,
Page 417 and 418:
IX-50 i 1 I ""'""", Federal Ret-ste
Page 419 and 420:
I IX-52 Federal Register I Vol. 53.
Page 421 and 422:
•• .w :"-=~},~0\;!!'.I&4 ••
Page 423 and 424:
IX-56 CHECKLIST for ADMINISTRATIVE
Page 425 and 426:
IX-58 Chapter IX REGULATIONS PERTAI
Page 427 and 428:
'" IX-60 2 ehe U.S. !DVlro~t&l lro
Page 429 and 430:
IX-62 Chapter IX REGULATIONS PERTAI
Page 431 and 432:
IX-64 TABLE OF CONTENrS STATEMENT O
Page 433 and 434:
IX-66 C. Wildlife The BLM shall: 1.
Page 435 and 436:
IX-68 of the DOE (the contributing
Page 437 and 438:
~ ". ~ ~. ._ f - IX-70 ,. ,. If 9-
Page 439 and 440:
IX-72 MEMORANDUM OF UNDERSTANDING B
Page 441 and 442:
IX-74 c. Use avoidance as the prima
Page 443 and 444:
IX-76 and oilleasts adjacent to the
Page 445 and 446:
IX-78 2. The DOr ail"ee3 to: a. For
Page 447 and 448:
Page 449 and 450:
THE PAST-DECADE DEVELOPJ.\ilENTS At
Page 451 and 452:
The POC bits and POC cutter blank m
Page 453 and 454:
X-5 Other applications are explorat
Page 455 and 456:
X-7 optimum production, completion,
Page 457 and 458:
Cement additives Research during th
Page 459 and 460:
1994). The productivity of a fractu
Page 461 and 462:
Hydraulic fracturing - acidizing Th
Page 463 and 464:
X-IS Concluding remarks Technology
Page 465 and 466:
X-17 PennWell Books, Tulsa, OK, p.
Page 467 and 468:
low-friction gauge PDC bits: Societ
Page 469 and 470:
XI-i TABLE OF COl'iiENTS SUMMARY OF
Page 471 and 472:
XI-iii Figure 14 Designated oil poo
Page 473 and 474:
Xl·v and boundaries of designated
Page 475 and 476:
Information Only XI-vii TABLES Tabl
Page 477 and 478:
XI-2 will be produced from the deep
Page 479 and 480:
Definitions Several basic definitio
Page 481 and 482:
CCcJ.. From these projections. esti
Page 483 and 484:
ea"ons often do not yield a product
Page 485 and 486:
Information Only XI-IO made it poss
Page 487 and 488:
XI-12 Canyon production is in the T
Page 489 and 490:
Information Only XI-14 the east. In
Page 491 and 492:
Information Only XI-16 (Fig. 25). U
Page 493 and 494:
discovery wells . Developmentdrilli
Page 495 and 496:
the middle part of the Cherry Canyo
Page 497 and 498:
Information Only XI-22 of approxima
Page 499 and 500:
The sucker rods move vertic;i"y up
Page 501 and 502:
Information Only XI-26 The authigen
Page 503 and 504:
XI-28 fore, stratigraphic traps str
Page 505 and 506:
interbedded with dark basinal shale
Page 507 and 508:
(Fig. 51, Table 2) with probable re
Page 509 and 510:
XI-34 Two wells have drilled throug
Page 511 and 512:
Xl-36 that no such structure, and h
Page 513 and 514:
XI-38 REFERENCES Anderson, R., 1977
Page 515 and 516:
Xl-40 Guidebook 44, pp. 175-184. Kl
Page 517 and 518:
Worthington, R. E., 1994, East Shug
Page 519 and 520:
Figure 12. Annual number of oil and
Page 521 and 522:
XI-46 response of oil production to
Page 523 and 524:
XI-48 additional study area. Separa
Page 525 and 526:
XI-50 Producing provi~ce. "'" Nonpr
Page 527 and 528:
XI-52 'f!'
Page 529 and 530:
1 '
Page 531 and 532:
XI-56 A I I ,I . J- ~ 1 o eo 111Unt
Page 533 and 534:
XI-58 A no"" mIl o 0 Tubb t marl -
Page 535 and 536:
!I r--;-----;---"/"--:;--A;r:-;,...
Page 537 and 538:
300 "C CD 1i) 0.200 E o U tn 1.00 .
Page 539 and 540:
.... XI-64 ~45' 104·45' ·r·--·-
Page 541 and 542:
XI-66 t t t t slope into basin FEED
Page 543 and 544:
XI-68 ~'r-~·'--,-----,--,--,4-r--"
Page 545 and 546:
XI-70 · · . ! ! i =:! .. , I .. ,
Page 547 and 548:
XI-n • + o ", .- .:.... • • .
Page 549 and 550:
XI-74 ~r_-':'-- " ,---.,.--.,...--r
Page 551 and 552:
'D tō-:>< Oil: Los Medanos-8and Du
Page 553 and 554:
XI-78 --'~r--'--"T--..,..--r--'i'--
Page 555 and 556:
XI-80 o 133/8" @ 600 fl 2,000 ! .c:
Page 557 and 558:
Paduca (Delaware) Field Annual Oil
Page 559 and 560:
~._- XI-84 Delaware Basin Northwest
Page 561 and 562:
XI-86 .,' . . 1-; ~. ~. / ./ 'jl .
Page 563 and 564:
XI-88 23 11 8 o o I .5 1ml ! ---- I
Page 565 and 566: XI-90 • ft. _.. iJ ~ -t .... l..1
Page 567 and 568: Cabin Lake Strawn; Phillips Petrole
Page 569 and 570: XI-94 - I · · - . I · · · · "
Page 571 and 572: XI..96 o 13·/.'@650ft 2,000 4,000
Page 573 and 574: Los Medanos Atoka (Gas); Bass Enter
Page 575 and 576: Los Medanos Morrow (Gas); Conoco, I
Page 577 and 578: XI-102 . · . -, , .. 01''' I I " "
Page 579 and 580: Los Medanos-Sand Dunes-Ingle Wells
Page 581 and 582: Quahada Ridge Southeast (Lower Brus
Page 583 and 584: Strawn Projected Future Annual Gas
Page 585 and 586: Morrow Projected Future Annual Gas
Page 587 and 588: TABLE 6. Surface and bottom-hole lo
Page 589 and 590: Table 15A. Livingston Ridge Delawar
Page 591 and 592: Table 15C. Cabin Lake Delaware pool
Page 593 and 594: Table 15E. Los Medanos Bone Spring
Page 595 and 596: TABLE 15F. (Continued) XI-131 Year
Page 597 and 598: ~ TABLE 15G. (Continued) XI~133 Yea
Page 599 and 600: Table 16. Projected future annual o
Page 601 and 602: XII-i TABLE OF CONTENTS SUMMARY RES
Page 603 and 604: XII-2 additional area gas reserves
Page 605 and 606: Key assumptions and features associ
Page 607 and 608: contribute te alterations in the se
Page 609 and 610: XII-8 160 Combined Area Oil Revenue
Page 611 and 612: XII-IO 120 Combined Area Oil Revenu
Page 613 and 614: XII-12 Combined Area Oil Cash Flow
Page 615: XII-14 160 I 140 --r- I Combined Ar
Page 619 and 620: XII-18 Table 6. Expected revenue pr
Page 621 and 622: XII-20 WIPP Site Gas. 10% discount
Page 623 and 624: XII-22 WIPP Area Gas, 12.5% Royalti
Page 625 and 626: XII-24 Additional Area Gas, 12.5% R
Page 627 and 628: XIl-26 Combined Area Gas. 12.5% Roy
Page 629 and 630: XII-28 WIPP Area Gas, 12.5% Royalti
Page 631 and 632: XII-30 Additional Area Gas, 12.5% R
Page 633 and 634: XII-32 Combined Area Gas. 12.5% Roy
Page 635 and 636: XII-34 W1PP Site Gas Data, discount
Page 637 and 638: XIl-36 Additional Area Gas Data, di
Page 639 and 640: XII-38 Combined Area Gas Data, disc
Page 641 and 642: XII-40 W1PP Site Gas Data. discount
Page 643 and 644: XII-42 Additional Area Gas Data, di
Page 645 and 646: XII-44 Combined Area Gas Data. disc
Page 647: Information Only XII-46
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