reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-16 - Validation of existing leases and permits; renewals of permits prohibited.

All prospecting permits and leases issued prior to the effective date of this act which have not expired, or which have not been canceled legally for nonperformance, are hereby declared to be valid and existing contracts with the state of New Mexico according to their terms and provisions, and the commissioner is hereby directed to accept and recognize all such permits and leases according to their terms and provisions. Provided, further, that no such existing prospecting permits shall be extended, renewed or otherwise prolonged or enlarged as to length of term.
History:
1953 Comp., § 7-9-19, enacted by Laws 1955, ch. 53, § 3.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-17 - Relinquishment of permits for conversion.

Any legal owner and holder of any placer prospecting permit issued by the commissioner prior to the effective date of this act, if not in default of any of the provisions thereof, may relinquish the same to the state and, upon application filed at the time of filing such relinquishment, the commissioner shall issue a lease in accordance with the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978].
History:
1953 Comp., § 7-9-20, enacted by Laws 1955, ch. 53, § 4.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-18 - Term of leases.

All leases issued under the provisions of Sections 19-8-14 through 19-8-33 NMSA 1978 shall be for a primary term of three years and as long thereafter as any mineral or minerals in paying quantities be produced or mined from the lands, subject to the continued payment of annual rentals.
If lessee shall fail to discover and produce minerals in paying quantities during the primary term of the lease, the lessee may continue the lease in full force and effect for an additional or secondary term of two years and as long thereafter as any mineral or minerals in paying quantities be produced or mined from the leased land, by paying each year in advance ten times the rental provided in the primary term.
Provided, however, if the lessee shall fail to discover and produce minerals in paying quantities during the secondary term of the lease, the lessee of record or the record owner of an approved assignment may continue the lease, as to the portion held by him, in full force and effect for an additional or tertiary term of five years and so long thereafter as any mineral or minerals in paying quantities by [be] produced or mined from the leased land, by paying each year in advance three dollars ($3.00) per acre per year as rental.
If the lessee shall fail to discover and produce minerals in paying quantities during the tertiary term of the lease, the lessee of record or the record owner of an approved assignment may continue the lease, as to the portion held by him, in full force and effect for an additional or quarternary [quaternary] term of five years and so long thereafter as any mineral or minerals in paying quantities be produced or mined from the leased land, by paying each year in advance of the lease anniversary date ten dollars ($10.00) per acre per year as rental, plus a sum as advance royalty computed as follows:
for the 11th year, ten dollars ($10.00) per acre per year;
for the 12th year, twenty dollars ($20.00) per acre per year;
for the 13th year, thirty dollars ($30.00) per acre per year;
for the 14th year, forty dollars ($40.00) per acre per year; and
for the 15th year, fifty dollars ($50.00) per acre per year. Provided, however, upon the commencing of the production of minerals in paying quantities, the principal sum so paid as advance royalty for the lease year in which the mineral is produced and the advance royalty paid for the two previous years shall be credited against the royalty payable hereunder to the lessor.
History:
1953 Comp., § 7-9-21, enacted by Laws 1955, ch. 53, § 5; 1959, ch. 42, § 1; 1977, ch. 147, § 1.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Relief against forfeiture of lease for nonpayment of rent, 31 A.L.R.2d 321.
Termination: rights of lessee to minerals extracted during the lease but remaining on the premises after its termination, 51 A.L.R.2d 1121.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-19 - [Terms of leases; stipulation of conditions under statute; filing and recording.]

The record owners or owner of any mineral lease or approved assignment thereof heretofore issued by the commissioner and maintained in good standing may enter into a stipulation with the commissioner of public lands making the terms and conditions of this act [19-8-18, 19-8-19 NMSA 1978] a part of any such existing lease, the same as if said provisions had been a part of said lease when issued. The commissioner may charge a fee not to exceed ten dollars ($10.00) for the filing and recording of such stipulation.
Provided, further, that if for any reason beyond the control of the lessee production of minerals in paying quantities shall cease after the secondary term has expired, the producing lessee may, with the written permission of the commissioner, continue said lease in operation and effect from year to year for an additional period not to exceed three (3) years by continued payment in advance of annual rentals at the rate provided in the secondary term of the lease.
History:
1953 Comp., § 7-9-21.1, enacted by Laws 1959, ch. 42, § 2.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For subsequent provisions dealing with terms of leases, stipulation of conditions under statute and filing and recording,
see
19-8-20 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-19.1 - Suspension of lease requirement; authorization by commissioner; causes; duration.

A. In all cases where the lessee of a valid lease issued under the provisions of Sections 19-8-14 through 19-8-33 NMSA 1978, or the record owner of an approved assignment of such lease, provides to the commissioner of public lands proof of discovery on such lease of an ore body containing valuable mineral deposits deemed to be of merchantable quality and quantity, the commissioner of public lands upon proper application by the lessee or the record owner and after notice and hearing shall authorize a suspension of the lease during either the primary, secondary, tertiary, quaternary or indeterminable terms of such lease for such period as may be fixed by him if the commissioner is satisfied that:
(1) marketing conditions beyond the control of the lessee are such that the lease cannot be mined and the ore marketed except at a loss; or
(2) temporary conditions exist beyond the control of the lessee, with regard to the leased land then being mined, which would operate to prevent the mining of the maximum minable ore in keeping with safe mining practices.
B. A suspension authorized by the commissioner pursuant to the provisions of Subsection A of this section shall take effect as of the date of the commissioner's decision and shall suspend the lease for the period of such suspension, but in no event shall any single suspension be for a period longer than five years.
C. All obligations of the lessee under a lease suspended pursuant to the provisions of this section shall be suspended, including the payment of rentals and advance royalties; provided, however, that the lessee shall pay an annual rental of sixty dollars ($60.00) per acre per year for each year of suspension.
D. A suspension authorized by the commissioner pursuant to this section shall not subject the suspended lease to the provisions of Section 19-8-20 NMSA 1978.
History:
1978 Comp., § 19-8-19.1, enacted by Laws 1983, ch. 3, § 1.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-20 - Leases; stipulation; rental.

The record owners or owner of any mineral lease or approved assignment thereof heretofore issued by the commissioner, which lease has not expired by its own terms, which has not been canceled by the commissioner and which has otherwise been maintained in good standing, may enter into a stipulation with the commissioner of public lands making the terms and conditions of Sections 19-8-14 through 19-8-33 NMSA 1978 a part of any such existing lease, the same as if said provisions had been a part of said lease when issued. In such case, the basic royalty payable to the lessor on production thereafter obtained from the stipulated lease or portion thereof shall be at the rate set in new leases then being issued by the lessor. The commissioner may charge a fee not to exceed ten dollars ($10.00) for the filing and recording of such stipulation. If production in paying quantities be had during any of the aforesaid set terms and thereafter ceases before all of the set terms would have expired, the lease shall be deemed to be a nonproducing lease from that date and lessee shall have the unexpired portion of said set term and any subsequent terms within which to resume production in paying quantities. When such production is resumed, the term of the lease shall continue for so long thereafter as minerals in paying quantities be produced or mined from the leased land. In such cases, the rental rate for the lease or the portion thereof, shall be the rental provided in the term in which such production is resumed; the new rental shall be payable on the anniversary date next following the date production is resumed.
Provided, further, that if for any reason beyond the control of the lessee production of minerals in paying quantities shall cease after all of the set terms have expired, the producing lessee may, with the written permission of the commissioner, continue said lease in operation and effect from year to year for an additional period not to exceed three years by continued payment in advance of annual rentals at the rate provided in the final term of the lease.
History:
1953 Comp., § 7-9-21.2, enacted by Laws 1977, ch. 147, § 2.
ANNOTATIONS
Cross references.
— For antecedent provisions dealing with terms of leases, stipulation of conditions under statute and filing and recording,
see
19-8-19 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-21 - Rentals.

All leases issued by the commissioner shall provide for an annual rental to be paid by the lessee in advance, the amount thereof to be fixed by the commissioner, but in no case shall the same be less than five cents (5 ) per acre for the primary term nor less than fifty cents (50 ) per acre for the secondary term; provided that the annual rental for any one lease shall not be less than ten dollars ($10.00).
History:
1953 Comp., § 7-9-22, enacted by Laws 1955, ch. 53, § 6.
ANNOTATIONS
Cross references.
— For interest on delinquent payments of rental,
see
19-1-3 NMSA 1978.
Law reviews.
— For comment, "Taxation of the Uranium Industry: An Economic Proposal," see 7 N.M. L. Rev. 69 (1976-77).
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-22 - Royalty.

In addition to the annual rental, lessee shall be required to pay to the commissioner a royalty of not less than two percent (2%) of the gross returns from the smelter, mill, reduction process or other sale, less reasonable transportation and smelting or reduction charges, if any, of all ores or materials mined and extracted from the land. In addition, lessee shall pay to the commissioner as royalty not less than two percent (2%) of any and all premiums and bonuses received in connection with the discovery, production or marketing. Provided that on deposits of rare earths, precious stones or semi-precious stones, and on uranium, thorium, plutonium or any other materials which have been or may hereafter be determined by the atomic energy commission to be peculiarly essential to the production of fissionable materials, lessee shall pay a royalty to be agreed upon by the lessee and the commissioner, but not less than five percent (5%) of the gross returns from the smelter, mill, reduction process or other sale, less reasonable transportation and smelting or reduction charges, if any, of all ores or materials mined and extracted from the land. In addition, lessee shall pay to the commissioner as royalty not less than five percent (5%) of any and all premiums and bonuses received in connection with the discovery, production or marketing of such ores or materials.
Accounting for all royalties shall be made on the twentieth (20th) day of the month following the month of sale or receipt of premium or bonus.
History:
1953 Comp., § 7-9-23, enacted by Laws 1955, ch. 53, § 7.
ANNOTATIONS
Compiler's notes.
— Under former 72-6-7, 1953 Comp., relating to valuation of mineral interests for tax purposes, where a sub-lessee was the producing operator and paid royalties to the state, he and not the original lessee should be allowed royalty-payment deductions.
Law reviews.
— For comment, "Taxation of the Uranium Industry: An Economic Proposal," see 7 N.M. L. Rev. 69 (1976-77).
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Real or personal property, solid mineral royalty as, 68 A.L.R.2d 728.
Payment of stipulated minimum royalties or annual rental under solid mineral lease as precluding lessor's claim of forfeiture or abandonment, 87 A.L.R.2d 1076.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-23 - Covenants to market and develop.

All leases issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall contain provisions requiring the lessees to market the mineral or minerals within a reasonable time after production is had. In addition, said leases shall contain provisions requiring the lessees to use reasonable diligence, after production is had, in prospecting for and developing all commercial deposits of mineral or minerals.
The commissioner may cancel leases for violation of such marketing and developing provisions only after notice and in the manner as provided in Section 12 [19-8-27 NMSA 1978] of this act, and in all cases of controversy arising out of such cancellation the lessee shall have the burden of proof by a preponderance of the evidence that further development is not warranted, or is unreasonable, or that a market is not available, as the case may be.
History:
1953 Comp., § 7-9-24, enacted by Laws 1955, ch. 53, § 8.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Marketing: duty of lessee or assignee of solid mineral lease as regards marketing of mineral products, 77 A.L.R.2d 1058.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-24 - Bonds.

Before any lessee of minerals shall commence development or operations upon the lands, such lessee shall execute and file with the commissioner a good and sufficient bond or undertaking in an amount to be fixed by the said commissioner, but not less than five thousand dollars ($5,000), in favor of the state of New Mexico, for the benefit of any surface lessee, patentee or contract purchaser, to secure the payment for such damage to the livestock, water, crops or other tangible improvements on such lands as may be suffered by reason of development, use and occupation of such lands by the said mining lessee. Provided in lieu thereof any lessee owning one or more mining leases may file a blanket bond in an amount to be fixed by the commissioner, but not less than ten thousand dollars ($10,000), covering all leases then owned or thereafter acquired by him.
Provided, further, that if any such surface lessee, patentee or contract purchaser shall file with the commissioner a waiver duly executed and acknowledged by him of his right to require such bond, such development, occupation and use of the lands by a mineral lessee may be permitted without the bond herein required.
In addition, lessee may be required to furnish a bond in a reasonable amount to be set by the commissioner to guarantee payment of royalties to become due under the lease.
History:
1953 Comp., § 7-9-25, enacted by Laws 1955, ch. 53, § 9; 1957, ch. 42, § 1.
ANNOTATIONS
Cross references.
— For bond required of mineral lessee of lands sold on deferred payment plan with reservation of minerals,
see
19-10-26 NMSA 1978.
For bond filed by person leasing state lands for geothermal resource development,
see
19-13-18 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-25 - Inspection of records; reports.

The commissioner or his representative shall have the right to inspect all records, books or accounts pertaining to the mining, extraction, transportation and returns of ores taken from such leased lands, and at the request of the commissioner the lessee shall furnish such reports, samples, logs, assays or cores within reasonable bounds as he may deem to be necessary to the proper administration of the lands under lease.
History:
1953 Comp., § 7-9-26, enacted by Laws 1955, ch. 53, § 10.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-26 - Relinquishment of leases.

With the consent of the commissioner, any lease issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] may be relinquished in whole or in part to the state of New Mexico; provided, however, the commissioner shall not approve any relinquishment of an undivided interest therein nor less than a legal subdivision.
History:
1953 Comp., § 7-9-27, enacted by Laws 1955, ch. 53, § 11.
ANNOTATIONS
Cross references.
— For relinquishment of lease of state lands with written consent of commissioner,
see
19-7-36 NMSA 1978.
For relinquishment of lease issued under Geothermal Resources Act,
see
19-13-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-27 - Violation of lease; notice; forfeiture for noncompliance with demand.

The commissioner is authorized to cancel any lease issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] for nonpayment of rentals, for nonpayment of royalties or for violation of any of the terms, covenants or conditions thereof, but before any such cancellation shall be made, the commissioner must mail to the lessee or assignee, by registered or certified mail, addressed to the post-office address of the lessee or assignee as shown by the records of the office of the commissioner, a notice of intention to cancel the lease, specifying the default for which the lease is subject to cancellation. No proof of receipt of notice shall be necessary, and thirty days after the mailing the commissioner may enter cancellation unless the lessee shall have sooner remedied the default.
History:
1953 Comp., § 7-9-28, enacted by Laws 1955, ch. 53, § 12; 1971, ch. 97, § 1.
ANNOTATIONS
Cross references.
— For forfeiture of lease for failure to pay rent,
see
19-7-34 NMSA 1978.
For grounds of forfeiture of agricultural or grazing lease,
see
19-7-35 NMSA 1978.
For forfeiture procedure on violation of lease or other written instrument,
see
19-7-50 NMSA 1978.
For forfeiture for defrauding state of royalties,
see
19-8-1 NMSA 1978.
For forfeiture on failure to develop and operate mineral lands in a workmanlike manner,
see
19-8-13 NMSA 1978.
For forfeiture of coal lease for failure to comply with terms thereof,
see
19-9-13 NMSA 1978.
For cancellation of oil and gas lease,
see
19-10-20 NMSA 1978.
For forfeiture of lease under Geothermal Resources Act,
see
19-13-23 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
Mistake, accident, inadvertence, etc., as ground for relief from termination or forfeiture of oil or gas lease for failure to complete well, start drilling or pay rent on time, 5 A.L.R.2d 993.
Relief against forfeiture of lease for nonpayment of rent, 31 A.L.R.2d 321.
Payment of stipulated minimum royalties or annual rental under solid mineral lease as precluding lessor's claim of forfeiture or abandonment, 87 A.L.R.2d 1076.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-29 - Improvements removable upon termination of lease.

Upon termination of any lease issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] by reason of forfeiture, surrender, expiration of term or for any other reason, lessee may remove all improvements and equipment as can be removed without material injury to the premises; provided, however, that all rents and royalties have been paid and that such removal is accomplished within two years from the termination date or before such earlier date as the commissioner may set upon thirty (30) days' written notice to the lessee. All improvements and equipment remaining upon the premises after the removal date as set in accordance with this section shall be forfeited to the state of New Mexico without compensation.
History:
1953 Comp., § 7-9-30, enacted by Laws 1955, ch. 53, § 14.
ANNOTATIONS
Cross references.
— For right, in general, of owner of improvements on state lands to be compensated for same by purchaser or subsequent lessee,
see
19-7-14 NMSA 1978.
For payment for value of improvements by purchaser or subsequent oil and gas lessee to owner thereof,
see
19-10-28 NMSA 1978.
For oil and gas lessee's right to remove certain improvements upon cancellation or forfeiture of lease,
see
19-10-29 NMSA 1978.
For removal by lessee under Geothermal Resources Act of removable improvements, and forfeiture of others without compensation,
see
19-13-24 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
What constitutes improvements, alterations or additions within lease provisions permitting or prohibiting tenant's removal thereof at termination of lease, 30 A.L.R.3d 998.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-30 - Area of lease.

Leases issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall cover a specified area conforming to a legal subdivision or subdivisions and shall not exceed sixteen (16) subdivisions, being 640 [six hundred and forty acres] more or less, all of which shall be contiguous; provided, however, that leases issued in exchange for existing permits as provided by Section Four [19-8-17 NMSA 1978] of this act need not be contiguous if all legal subdivisions be situate and lie within the same township and range.
History:
1953 Comp., § 7-9-31, enacted by Laws 1955, ch. 53, § 15.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-31 - Posting of open acreage; simultaneous applications.

When newly acquired acreage is posted to the tract books, or when other acreage is designated upon the tract books to be open acreage after having been previously leased or after having been withdrawn from leasing by the commissioner, all applications for mineral lease filed thereon within three (3) land office work days after such posting or designation shall be considered as simultaneous applications.
History:
1953 Comp., § 7-9-32, enacted by Laws 1955, ch. 53, § 16.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-32 - Rules and regulations authorized.

The commissioner shall be, and he is hereby, authorized and empowered to adopt such uniform and reasonable rules and regulations as he may deem necessary to carry out the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] and not inconsistent therewith, said rules to be posted in a conspicuous place in the state land office for a period of at least ten consecutive days.
History:
1953 Comp., § 7-9-33, enacted by Laws 1955, ch. 53, § 17.
ANNOTATIONS
Cross references.
— For State Rules Act,
see
Chapter 14, Article 4 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 8 - Lease of Mineral Lands › Section 19-8-33 - Withholding of lands from lease authorized; lease by competitive bidding authorized.

Nothing contained in this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall be construed as requiring the commissioner to offer any tract or tracts of land for lease, but the commissioner shall have power to withhold any tract or tracts from leasing for said mineral purposes, if, in his opinion, the best interests of the state would be served by so doing, and nothing contained in this act shall be construed as prohibiting the commissioner from rejecting any application at any time prior to approval and offering acreage embraced therein for lease upon competitive bidding by sealed bids or at public auction to the bidder offering the highest bonus in addition to the annual rentals as set by the commissioner. Provided, however, that notice of such public sale shall be given by posting in a conspicuous place in the state land office, not less than ten (10) days before the date of sale, a notice of same, specifying the day and hour when, and the place where, the sale will be held, giving a description of the lands in each tract to be offered for lease. The notice shall also state whether the sale shall be conducted through sealed bids or at public auction and any other such information as the commissioner may deem necessary.
Where two or more sealed bids are received making the same offer on the same tract, the commissioner shall award the lease thereon in accordance with such regulations as he may prescribe.
History:
1953 Comp., § 7-9-34, enacted by Laws 1955, ch. 53, § 18.
ANNOTATIONS
Cross references.
— For publication of legal notice,
see
14-11-1 NMSA 1978 et seq.
Severability.
— Laws 1955, ch. 53, § 19, provided for the severability of the act if any provision thereof is held invalid.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-1 to 19-9-8 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1989, ch. 200, § 9 repealed 19-9-1 to 19-9-8 NMSA 1978, as enacted by Laws 1912, ch. 82, §§ 24 to 31, relating to lease of coal lands, effective July 1, 1989. For comparable provisions,
see
19-9-9 to 19-9-16 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-9 - Coal leases; authorization; competitive bids.

The commissioner of public lands may execute and issue leases for the exploration, development and production of coal from state trust lands. Leases shall be issued only to the highest bidder either by sealed bid or at public auction; provided, however, the commissioner may in his discretion withhold any tract from leasing and may reject all bids offered for any tract if he determines that withholding or rejection is in the best interest of the trust beneficiaries.
History:
Laws 1989, ch. 200, § 1.
ANNOTATIONS
Cross references.
— For lease of mineral lands,
see
19-8-1 NMSA 1978.
For lease of oil and gas lands,
see
19-10-1 NMSA 1978.
For reservation by state in mineral lease of purchase rights,
see
19-14-1 NMSA 1978.
For sale and lease of lands generally,
see
19-7-1 NMSA 1978 et seq.
For reservation of mineral deposits in agricultural and grazing leases,
see
19-7-28 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-10 - Coal leases; provisions.

Any coal lease issued by the commissioner of public lands shall:
A. provide for a primary term of five years;
B. provide that, if, at the end of the primary term, the lessee has submitted a mine plan to the commissioner of public lands for approval delineating how and when the leased land will be developed and has either incorporated the leased land with adjacent land into a logical mining unit which can be developed and operated as a single operation or has shown to the satisfaction of the commissioner that the adjacent land is federal land which has not been available for coal leasing but that the lessee has incurred substantial costs in developing the leased land, then the coal lease shall not expire at the end of the primary term but shall continue for a secondary term of an additional five years;
C. provide that, if, at the end of the secondary term, the lessee is producing coal at an average annual rate of either one percent of the estimated recoverable reserves from the leased lands or one percent of the estimated recoverable reserves from the logical mining unit, then the lease shall not expire but shall continue as long as the one percent average production is maintained over any consecutive three year period;
D. provide that, in lieu of any actual production requirement, expiration of the lease may be prevented by payment of an advance royalty equal to an estimated royalty obligation as contemplated by the approved mine plan and commercial production criteria. Any credit later taken for advance royalties against actual production royalties due shall not exceed fifty percent of the total royalty due and the lease shall not be extended for more than ten years by payment of advance royalties;
E. provide for a royalty of twelve and one-half percent of the proceeds received from the sale of all surface-mined coal or, at the option of the commissioner, the market value of the surface-mined coal and eight percent of the proceeds received from the sale of all underground-mined coal or, at the option of the commissioner, the market value of the underground-mined coal. The royalty rate may be reduced by the commissioner upon a showing that the leases for the nonstate lands in the same logical mining unit provide for a lower rate or that the leased lands will be bypassed and not mined without a rate reduction;
F. provide for an annual rental rate of five dollars ($5.00) per acre of the leased lands, to be paid throughout the effective period of the lease;
G. provide that, except for small incidental quantities which may be vented or flared to achieve access to the coal, any coalbed methane gas is excluded and reserved from the coal lease. A coal lessee may engage in in situ coal gasification provided that such gasification does not disturb or diminish commercial quantities of coalbed methane gas; and
H. contain other provisions prescribed by regulation of the commissioner.
History:
Laws 1989, ch. 200, § 2.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-11 - Authority to enter; inspect books; prior lien.

The commissioner of public lands or his authorized representative shall have the right to enter any leased lands for the purpose of measuring the cubical contents of every opening from which coal has been extracted and to otherwise inspect the leased lands to ensure that proper royalties have been paid. The commissioner or his representative shall have the right to inspect all records, books or accounts pertaining to the mining, extraction, transportation and returns of coal produced from the leased lands and, at the request of the commissioner, the lessee shall furnish reports, samples, logs, assays or cores within reasonable bounds as the commissioner may determine to be necessary to the proper administration of the lands under lease. The value of any unpaid royalty shall become a prior lien upon the production from the leased lands and the improvements situated thereon.
History:
Laws 1989, ch. 200, § 3.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-12 - Performance bond.

Before commencing operations or development upon leased lands, a lessee shall execute and file with the commissioner of public lands a good and sufficient bond or other appropriate surety in an amount to be fixed by the commissioner to:
A. guarantee the performance of all covenants and obligations under the coal lease, including the obligation to pay royalties;
B. ensure that all aspects of mining operations and reclamation operations are conducted in conformity with the approved mining plan; and
C. ensure compensation for damage to the surface or surface improvements in the absence of an agreement between the coal lessee and any surface owner.
The commissioner, in his discretion, may allow a bond filed with the mining and minerals division of the energy, minerals and natural resources department pursuant to the Surface Mining Act [Chapter 69, Article 25A NMSA 1978] to satisfy the requirements of this section.
History:
Laws 1989, ch. 200, § 4.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-13 - Forfeiture for noncompliance.

The commissioner of public lands may cancel any coal lease for nonpayment of rentals, for nonpayment of royalties or for noncompliance with any of the terms or covenants of the lease, but before the cancellation is made, the commissioner shall mail to the lessee by registered or certified mail a notice of intention to cancel the lease, specifying the default for which the lease is subject to cancellation. If the lessee does not pay the rentals or royalties or begin to substantially remedy the other default within thirty days after mailing the notice of intention to cancel the commissioner may cancel the lease.
History:
Laws 1989, ch. 200, § 5.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-14 - Relinquishment.

With the consent of the commissioner of public lands any coal lease may be relinquished in whole or in part provided that the commissioner shall not approve any relinquishment of an undivided interest in any coal lease nor less than a legal subdivision.
History:
Laws 1989, ch. 200, § 6.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-15 - Rules and regulations authorized.

After notice to all existing coal lessees and other interested parties the commissioner may adopt rules and regulations as he deems necessary to carry out the provisions of this act [19-9-9 to 19-9-16 NMSA 1978]. The inadvertent failure to notify any coal lessee or other interested party shall not invalidate a rule or regulation.
History:
Laws 1989, ch. 200, § 7.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 9 - Lease of Coal Lands › Section 19-9-16 - Existing lessees; right to a new lease.

Notwithstanding any provision of this act [19-9-9 to 19-9-16 NMSA 1978] requiring competitive bidding, the owner of any coal lease that is issued by the commissioner of public lands before the effective date of this section and maintained in good standing according to the terms and conditions of the coal lease and all applicable statutes and regulations shall, upon the expiration of the coal lease and in accordance with regulations prescribed by the commissioner, be entitled to a new lease for the leased lands. The terms and provisions of the new lease shall be consistent with the requirements of this act and any regulations of the commissioner.
History:
Laws 1989, ch. 200, § 8.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-2 - Definitions.

The words "natural gas," as used in Sections 19-10-1 through 19-10-52 NMSA 1978 shall be construed to cover and include carbon dioxide gas and helium gas as well as gas of the hydrocarbon kind.
History:
Laws 1941, ch. 137, § 1; 1941 Comp., § 8-1102; 1953 Comp., § 7-11-2; Laws 1963, ch. 151, § 1.
ANNOTATIONS
Meaning of "gas".
— "Gas" as used in the oil and gas lease form signifies "natural gas" as defined in this section and includes carbon dioxide, but not hydrogen or nitrogen. 1945 Op. Att'y Gen. No. 45-4681.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-3 - Classification of state lands for oil and gas leasing.

A. For the purpose of issuing oil and gas leases thereon, all state lands under the jurisdiction of the commissioner shall be classified as either nonrestricted or restricted. Those lands placed within a restricted district pursuant to Section 19-10-16 NMSA 1978 shall be classified as restricted lands. All other lands owned by the state under the jurisdiction of the commissioner shall be classified as nonrestricted lands. Before leasing any tract of restricted land, it shall be further categorized as either regular or premium based upon the following factors relating to the tract:
(1) oil and gas trends;
(2) oil and gas traps;
(3) reservoir volume and recovery rating;
(4) lease bonus rating; and
(5) exploration and activity.
A percentage of zero percent to twenty percent shall be allocated to each factor. If the total percentages of all factors for a tract of land to be leased is less than seventy-five percent, the tract shall be categorized as regular. If the total percentage of all factors for a tract of land to be leased is seventy-five percent or more, the tract shall be categorized as premium.
B. After notice and hearing, the commissioner shall promulgate regulations specifying criteria to be used in categorizing tracts pursuant to Subsection A of this section.
History:
1978 Comp., § 19-10-3, enacted by Laws 1985, ch. 195, § 1.
ANNOTATIONS
Repeals and reenactments.
— Laws 1985, ch. 195, § 1, repealed former 19-10-3 NMSA 1978, as amended by Laws 1972, ch. 70, § 1, relating to the term and form of an oil and gas lease, and enacted a new section. For present comparable provisions,
see
19-10-4.1, 19-10-4.2 and 19-10-4.3 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-4 - Authorization to lease; lease provisions.

In issuing oil and gas leases, the commissioner shall:
A. use the exploratory lease form as set forth in Section 19-10-4.1 NMSA 1978 for oil and gas leases of tracts classified as nonrestricted lands under Section 19-10-3 NMSA 1978;
B. use the discovery lease form as set forth in Section 19-10-4.2 NMSA 1978 or the exploratory lease form for oil and gas leases of tracts classified as restricted lands and categorized as regular under Section 19-10-3 NMSA 1978; and
C. use the development lease form as set forth in Section 19-10-4.3 NMSA 1978, the discovery lease form or the exploratory lease form for oil and gas leases of tracts classified as restricted lands and categorized as premium under Section 19-10-3 NMSA 1978; provided that in using the development lease form for a tract receiving less than ninety total percentage points under Section 19-10-3 NMSA 1978, the royalty rate shall not exceed three-sixteenths.
History:
1978 Comp., § 19-10-4, enacted by Laws 1985, ch. 195, § 2.
ANNOTATIONS
Repeals and reenactments.
— Laws 1985, ch. 195, § 2, repealed former 19-10-4 NMSA 1978, as enacted by Laws 1977, ch. 298, § 1, relating to the term and form of an oil and gas lease notwithstanding the provisions of 19-10-3 NMSA 1978, and enacted a new section. For present comparable provisions,
see
19-10-4.1, 19-10-4.2, 19-10-4.3 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-5 - Existing leases; stipulation.

A. The owners of any oil and gas lease issued by the commissioner of public lands before the effective date of this section, other than a five year lease, and maintained in good standing according to the terms and conditions thereof and all applicable statutes and regulations, may, in accordance with regulations prescribed by the commissioner, enter into a stipulation making the terms and conditions of the lease form prescribed by Section 19-10-4.1 NMSA 1978, a part of any such existing lease, the same as if the lease form had been the original; provided, however, that no such stipulation shall be effective or binding on any of the parties until each and every working interest owner and record owner of the original lease or approved assignment thereof has signed the stipulation.
B. The owners of any five year oil and gas lease issued by the commissioner of public lands before the effective date of this section and maintained in good standing according to the terms and conditions thereof and all applicable statutes and regulations, may, in accordance with regulations prescribed by the commissioner, enter into a stipulation making the terms and conditions of the lease form prescribed by Section 19-10-4.2 NMSA 1978 a part of any such existing lease, the same as if the lease form had been the original; provided, however, that no such stipulation shall be effective or binding on any of the parties until each and every working interest owner and record owner of the original lease or approved assignment has signed the stipulation.
History:
1978 Comp., § 19-10-5, enacted by Laws 1985, ch. 195, § 6.
ANNOTATIONS
Repeals and reenactments.
— Laws 1985, ch. 195, § 6, repealed former 19-10-5 NMSA 1978, as enacted by Laws 1967, ch. 189, § 2, and enacted a new section.
Effective dates.
— The effective date of Laws 1985, ch. 195, § 6 was June 14, 1985.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-6 - Shut-in oil wells; conditions.

A. If, after notice and public hearing, the commissioner finds that because of a severe reduction in the price of oil the beneficiaries of state trust lands are ultimately better served if oil wells are allowed to be temporarily shut in rather than produced at a low price, he may promulgate a regulation which allows such wells to be shut in.
B. Any regulation promulgated under Subsection A of this section shall automatically expire two years from its effective date unless it is either extended by the commissioner after a subsequent notice and public hearing or terminated sooner by a subsequent regulation of the commissioner after finding that the price of oil is no longer severely reduced; provided, that any such termination shall not be effective until thirty days after the commissioner has by certified mail sent notice of the prospective termination to each lessee whose lease is being extended by the operation of this section.
C. Any oil and gas lease issued by the commissioner of public lands and maintained in good standing according to the terms and conditions thereof and all applicable statutes and regulations shall not expire if:
(1) there is, currently in effect, a regulation promulgated under Subsection A of this section;
(2) there is a well capable of producing oil located upon some part of the lands included in the lease and such well is shut in because of the severe reduction in the price of oil;
(3) the lessee timely notifies the commissioner in writing within thirty days of the date the well is first shut in; and
(4) the lessee timely pays an annual shut-in royalty within ninety days from the date the well was first shut in and thereafter before each anniversary of the date the well was first shut in. The amount of the shut-in royalty shall be twice the annual rental due by the lessee under the terms of the lease but not less than three hundred twenty dollars ($320) per well per year. If the other requirements of this subsection are satisfied, the timely payment of the shut-in royalty shall be considered for all purposes the same as if oil were being produced in paying quantities until the next anniversary of the date the well was first shut in.
History:
1978 Comp., § 19-10-6, enacted by Laws 1987, ch. 173, § 1.
ANNOTATIONS
Compiler's notes.
— Laws 1985, ch. 195, § 9 repealed former 19-10-6 NMSA 1978, as enacted by Laws 1972, ch. 70, § 2, relating to the applicability of the lease form in 19-10-3 NMSA 1978, effective June 14, 1985.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-7 - Exploratory form of lease; different term of years.

A. When issuing an oil and gas lease on the exploratory lease form, if the conditions of the tract subject to the lease are such that a different term of years for the lease is warranted, the commissioner in his discretion may issue the lease for a primary term of five years with no secondary term.
B. Any deviations from the lease form set forth in Section 19-10-4.1 NMSA 1978 pursuant to Subsection A of this section shall be specified in the notice of the lease sale as required under Section 19-10-17 NMSA 1978.
History:
1978 Comp., § 19-10-7, enacted by Laws 1987, ch. 173, § 2.
ANNOTATIONS
Repeals.
— Laws 1985, ch. 195, § 9 repealed former 19-10-7 NMSA 1978, as enacted by Laws 1977, ch. 298, § 2, relating to the applicability of the lease form in 19-10-4 NMSA 1978, effective June 14, 1985.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-8 - [Extension of terms of leases.]

In all cases where public lands under the jurisdiction of the commissioner of public lands are under lease for oil and gas and are concurrently leased for other minerals, and exploration or development operations under the oil and gas lease are incompatible with the exploration or mining operations under the mining lease and will result in waste of either oil and gas or minerals unless operations under the oil and gas lease are temporarily suspended, the commissioner of public lands may, from time to time, as to all or part of the lands, by legal subdivisions, waive compliance with the express or implied exploratory, drilling, development or production requirements, or may extend the term of the oil and gas lease for a period of time sufficient to permit the removal of the minerals and for subsidence of the ground if necessary.
Provided, however, no waiver or extension of term of the lease shall be for more than five years at any one time and shall be effective only upon written order of the commissioner of public lands. Provided, further, the order shall specify the oil and gas and mineral lease numbers and the legal subdivision affected and shall not be effective until posted on the official land office bulletin board for a period of at least fifteen days.
History:
1953 Comp., § 7-11-3.2, enacted by Laws 1961, ch. 93, § 1.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-9 - [Existing leases; stipulation to bring helium gas within terms.]

Any owner of an oil and gas lease heretofore issued by the commissioner of public lands and maintained in good standing according to the terms and conditions thereof and all applicable statutes and regulations may, in accordance with regulations prescribed by the commissioner of public lands, enter into a stipulation bringing helium gas within the terms of any such existing lease, the same as if helium gas had been covered by the lease agreement from the date it was first entered into.
History:
1953 Comp., § 7-11-3.3, enacted by Laws 1963, ch. 151, § 2.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
Cross references.
— For definition of "natural gas" as used in 19-10-1 to 19-10-52 NMSA 1978, now being construed to include helium gas,
see
19-10-2 NMSA 1978.
2023 New Mexico Statutes › Chapter 19 - Public Lands › Article 10 - Lease of Oil and Gas Lands › Section 19-10-10 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1985, ch. 195, § 9, repealed 19-10-10 NMSA 1978, as enacted by Laws 1945, ch. 111, § 2, relating to amending existing leases, effective June 14, 1985. For stipulation of existing leases,
see
19-10-5 NMSA 1978.