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Commission approves Hillcorp Energy’s new Mesa Verde–Dakota well; city to receive 12.5% Dakota royalty under 1954 lease
Summary
The commission voted to approve Hillcorp Energy’s OG26‑01 Rota Abrams 2P well inside city limits after a staff presentation; Hillcorp said the pad construction will be brief and that the city holds a 12.5% royalty interest in the Dakota formation under a 1954 lease (book 248, page 96).
The Aztec City Commission approved Hillcorp Energy Company’s application to drill a new Mesa Verde–Dakota well (OG26‑01 Rota Abrams 2P) inside city limits on March 10 after a staff presentation and applicant remarks.
Ramon Hancock, senior landman for Hillcorp Energy, described the proposed pad as a twinning of the existing Abrams No. 1 pad and said construction work would be short (staff estimated a 4‑day build and about 7 days of drilling). Hancock said the rig was expected to move on site around March 20 and that standard mitigations — fencing around the pad after completion, flaggers for brief access impacts, and notification to the school district if bus routes were affected — were planned.
Hancock told the commission that, under a lease signed in 1954, the city holds a 12.5% royalty interest from the Dakota formation. He referenced the county record for the lease (book 248, page 96) for anyone seeking the written lease document. A resident, William “Bill” Albert, spoke in support of the project. After public testimony closed, the commission moved to approve the application; the transcript records a commission action described as "Commission passes 4 2 0." The motion carried and the staff and applicant will proceed with the permit and schedule coordination.
Next steps: Hillcorp will coordinate traffic notifications and flagging, provide school-district notices if needed, and proceed with rig mobilization and drilling subject to any final permits and conditions.
