NM Stat § 70-2-6 (2021)
2021 New Mexico Statutes|Chapter 70 - Oil and Gas|Article 2 - Oil Conservation Commission; Division;|Section 70-2-6 - Commission's and division's powers and duties.

A. The division shall have, and is hereby given, jurisdiction and authority over all matters relating to the conservation of oil and gas and the prevention of waste of potash as a result of oil or gas operations in this state. It shall have jurisdiction, authority and control of and over all persons, matters or things necessary or proper to enforce effectively the provisions of this act or any other law of this state relating to the conservation of oil or gas and the prevention of waste of potash as a result of oil or gas operations. B. The commission shall have concurrent jurisdiction and authority with the division to the extent necessary for the commission to perform its duties as required by law. In addition, any hearing on any matter may be held before the commission if the division director, in his discretion, determines that the commission shall hear the matter. History: Laws 1935, ch. 72, § 4; 1941 Comp., § 69-205; Laws 1949, ch. 168, § 4; 1953 Comp., § 65-3-5; Laws 1965, ch. 58, § 2; 1977, ch. 255, § 41; 1979, ch. 175, § 1. ANNOTATIONSCompiler's notes. — The term "this act," referred to in this section, means Laws 1935, ch. 72, §§ 1 to 24, which appear as 70-2-2 to 70-2-4, 70-2-6 to 70-2-11, 70-2-15, 70-2-16, 70-2-21 to 70-2-25, 70-2-27 to 70-2-30, 70-2-33 NMSA 1978. Cross references. — For powers and duties under Statutory Unitization Act, see 70-7-3 NMSA 1978. For the Natural Gas and Crude Oil Production Incentive Act, see Chapter 7, Article 29B NMSA 1978. Basis of commission's powers. — Commission is a creature of statute, expressly defined, limited and empowered by laws creating it. It has jurisdiction over matters related to conservation of oil and gas in New Mexico, but the basis of its powers is founded on the duty to prevent waste and to protect correlative rights. Prevention of waste is its paramount power, inasmuch as this is an integral part of the definition of correlative rights. Sims v. Mechem, 1963-NMSC-103, 72 N.M. 186, 382 P.2d 183. Judicial powers. — Commission was acting in a judicial capacity when it approved a proposed unitization plan; its decision was therefore entitled to preclusive effect. Amoco Prod. Co. v. Heimann, 904 F.2d 1405 (10th Cir. 1990), cert. denied, 498 U.S. 942, 111 S. Ct. 350, 112 L. Ed. 2d 314 (1990). Authority held not exceeded. — When an oil well was located so that it could produce oil from the top portion of the pool, thereby avoiding waste that would have occurred unless the well was allowed, but the well was located so that it could effectively drain the entire pool, and the oil conservation commission, charged with the protection of correlative rights of the other lease owners in the pool, placed a production penalty on the well to protect these rights, the commission did not exceed the broad statutory authority granted by the Oil and Gas Act. Santa Fe Exploration Co. v. Oil Conservation Comm'n, 1992-NMSC-044, 114 N.M. 103, 835 P.2d 819. Restrictions on commission's powers. — The power and authority of the commission is general in nature but commission is restricted to the end that it cannot act arbitrarily, unlawfully or capriciously in carrying out administrative functions imposed upon it. 1959 Op. Att'y Gen. No. 59-186. Use of rental funds for commission's aircraft. — Commission, when it rents its department aircraft to other state agencies, may retain rental payments, when made, in a fund to be used by commission to defray expense of continued operation of the aircraft by placing rental payments in a working capital fund set up in department for the purpose of defraying operating expenses of aircraft. 1959 Op. Att'y Gen. No. 59-186. Law reviews. — For note, "State Regulation of Oil and Gas Pools on State, Federal, Indian and Fee Lands," see 2 Nat. Res. J. 355 (1962). For article, "Constitutional Limitations on the Exercise of Judicial Functions by Administrative Agencies," see 7 Nat. Res. J. 599 (1967). Am. Jur. 2d, A.L.R. and C.J.S. references. — 38 Am. Jur. 2d Gas and Oil §§ 145 to 163. 58 C.J.S. Mines and Minerals § 229.