reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 5 - Liquefied and Compressed Gases › Section 70-5-21 - Misdemeanor.

Any person violating any provision of the LPG and CNG Act or the rules, regulations or orders of the bureau or the commission issued pursuant to that act is guilty of a misdemeanor and shall be punished pursuant to Subsection A of Section 31-19-1 NMSA 1978.
History:
1941 Comp., § 71-825, enacted by Laws 1947, ch. 214, § 22; 1953 Comp., § 65-7-22; Laws 1957, ch. 221, § 10; 1963, ch. 7, § 1; 1973, ch. 362, § 21; 1977, ch. 245, § 142; 1989, ch. 6, § 64; 1993, ch. 186, § 18; 2017, ch. 57, § 2.
ANNOTATIONS
The 2017 amendment,
effective June 16, 2017, increased the potential penalty for violating any provision of the LPG and CNG Act or the rules, regulations or orders of the liquefied petroleum and compressed gas bureau or the construction industries commission issued pursuant to that act; after "shall be punished", deleted "by a fine levied in a magistrate court of not less than fifty dollars ($50.00) or more than five hundred dollars ($500) or by imprisonment for not more than ninety days or both" and added "pursuant to Subsection A of Section 31-19-1 NMSA 1978".
The 1993 amendment,
effective July 1, 1993, inserted "and CNG".
The 1989 amendment,
effective July 1, 1989, substituted "commission" for "committee" and made minor stylistic changes.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 5 - Liquefied and Compressed Gases › Section 70-5-22 - Administrative penalty assessments.

The bureau may charge an administrative penalty for any violation of the LPG and CNG Act or the rules, regulations, codes or orders of the bureau.
History:
1953 Comp., § 65-7-23, enacted by Laws 1973, ch. 362, § 22; 1977, ch. 245, § 143; 1993, ch. 186, § 19.
ANNOTATIONS
Repeals and reenactments.
— Laws 1973, ch. 362, § 22, repealed former 65-7-23, 1953 Comp., pertaining to penalty assessments, and enacted a new 70-5-22 NMSA 1978.
The 1993 amendment,
effective July 1, 1993, substituted "may charge an administrative penalty for any violation of the LPG and CNG Act or the rules, regulations, codes or orders" for "may charge a reasonable fee for failure to file any written report or other document required by law or by the rules, regulations, or orders".
Act to include all installations, sales of liquefied petroleum appliances.
— There is no substantial difference between installation of heating equipment in a house trailer and installation of liquefied petroleum gas equipment in permanent residence. The danger to the occupants is present in a house trailer, and if anything, is more pronounced therein than in a permanent domestic residence. Sections 70-5-1 to 70-5-22 NMSA 1978 were emergency acts passed by the legislature for protection of health and safety of the people of New Mexico. The act intended to include all persons engaged in the sale of liquefied petroleum appliances and installations regardless of manner in which those appliances were sold. 1953 Op. Att'y Gen. No. 53-5627.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 5 - Liquefied and Compressed Gases › Section 70-5-23 - Containers to be filled only by owner or upon the owner's authorization; emergency exception; list of customers.

A. As used in this section:
(1) "emergency" means a situation in which the state, a county or municipality or a tribal government issues a declaration finding in whole or in part that a lack of LP gas for heating, cooling or refrigeration is endangering customers' health or safety; and
(2) "LP gas dispenser" means a person that delivers LP gas to an ultimate consumer for consumption only.
B. Except as provided in Subsection C of this section, an LP gas container shall be filled only by the owner or upon the owner's authorization.
C. When the bureau receives customer complaints about nondelivery of LP gas, the bureau shall contact the LP gas dispenser to determine the reason for the nondelivery and shall work with the LP gas dispenser to ensure timely delivery to customers. In an emergency, the bureau may require the LP gas dispenser that owns the containers used by customers to deliver LP gas within twenty-four hours or authorize one or more other LP gas dispensers to deliver and fill the owner's containers that are leased to customers; provided that if there is not enough LP gas to fill all containers, the bureau and the LP gas dispensers shall determine priorities and proportional deliveries, as appropriate. The LP gas dispenser shall provide its customer list to the bureau and the delivering LP gas dispenser. The customer list is not a public document subject to the provisions of the Inspection of Public Records Act [Chapter 14, Article 2 NMSA 1978].
D. If a container holds LP gas for which a customer has paid either the owner or another dispenser, the owner of the container shall not remove the fuel or remove the container from a customer's premises without paying the customer the fair market price of the LP gas.
History:
1978 Comp., § 70-5-23, enacted by Laws 1993, ch. 186, § 20; 2022, ch. 34, § 1.
ANNOTATIONS
The 2022 amendment,
effective March 2, 2022, provided an emergency exception to an existing provision stating that an LP gas container may be filled only by the owner or upon the owner's authorization; in the section heading, added "emergency exception; list of customers"; added a new Subsection A and new subsection designation "B."; in Subsection B, added "Except as provided in Subsection C of this section, an"; and added Subsections C and D.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-1 - Public interest and welfare.

The underground storage of natural gas which promotes conservation thereof, which permits the building of reserves for orderly withdrawal in periods of peak demand, which makes more readily available our natural gas resources to the domestic, commercial and industrial consumers of this state, and which provides a better year-round market to the various gas fields, is hereby declared to be in the public interest and welfare of this state and the citizens hereof.
History:
1953 Comp., § 65-9-1, enacted by Laws 1963, ch. 139, § 1.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Rights and liabilities with respect to natural gas reduced to possession and subsequently stored in natural reservoir, 94 A.L.R.2d 543.
58 C.J.S. Mines and Minerals § 229.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-2 - Definitions.

As used in Chapter 70, Article 6 NMSA 1978:
A. "underground storage" means storage of natural gas in a subsurface stratum or formation of the earth;
B. "natural gas" means natural gas either while in its original state after withdrawal from the earth or after it has been processed by removal of component parts not essential to its use for light and fuel;
C. "native gas" means gas that has not been previously withdrawn from the earth;
D. "division" means the oil conservation division of the energy, minerals and natural resources department;
E. "commission" means the oil conservation commission;
F. "natural gas company" means any person, firm or corporation engaged in the distribution, sale or furnishing of natural gas to or for the public and subject to regulation by the New Mexico public utility commission under the Public Utility Act or any person, firm or corporation engaged in the business of transporting natural gas and subject to regulation by the federal energy regulatory commission under the Natural Gas Act; and
G. "public body" means the state or any department, board, commission, bureau, institution, public agency, county or political subdivision thereof, including bodies corporate, bodies politic, municipal corporations, school districts, conservancy districts and quasi-municipal corporations of all kinds.
History:
1953 Comp., § 65-9-2, enacted by Laws 1963, ch. 139, § 2; 1977, ch. 255, § 68; 1987, ch. 234, § 66; 1993, ch. 282, § 42.
ANNOTATIONS
The 1993 amendment,
effective June 18, 1993, substituted "that" for "which" in Subsection C and "New Mexico public utility commission" for "New Mexico public service commission" in Subsection F.
The 1987 amendment,
effective July 1, 1987, in the opening clause, substituted "Chapter 70, Article 6 NMSA 1978" for "this act"; in Subsection D, substituted "energy, minerals and natural resources" for "energy and minerals"; in Subsection F, substituted "federal energy regulatory commission" for "federal power commission"; and made minor changes in language throughout the section.
Public Utility Act.
—
See
62-13-1 NMSA 1978 and notes thereto.
Natural Gas Act.
— The federal Natural Gas Act is codified as 15 U.S.C. § 717 et seq.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-3 - Acquisition of lands for purposes of underground natural gas storage; lands controlled by public body, executor, administrator, guardian, receiver or trustee.

Any natural gas company desiring to make use of a formation or stratum as a reservoir for the underground storage of natural gas shall attempt to acquire by option, lease, conveyance or other negotiated means, such formation or stratum prior to resorting to the exercise of the power of eminent domain as hereinafter granted. Any public body and any executor, administrator, guardian, receiver or trustee shall be authorized to grant to any such natural gas company rights for underground storage of natural gas in lands subject to its or his control in the same manner as provided by law for entering into oil and gas leases, or if any such public body, executor, administrator, guardian, receiver or trustee shall not be specifically authorized by law to make oil and gas leases, then in the manner provided by law for lease by such public body, executor, administrator, guardian, receiver or trustee of interests in land, or if any such public body, executor, administrator, guardian, receiver or trustee shall not be specifically authorized by law to make oil and gas leases or leases for interests in land, then in the manner provided by law for the sale by such public body, executor, administrator, guardian, receiver or trustee of interests in land.
History:
1953 Comp., § 65-9-3, enacted by Laws 1963, ch. 139, § 3.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-4 - Appropriation of underground storage facilities; limitations.

By eminent domain proceedings, any natural gas company may appropriate for underground storage of natural gas any subsurface stratum or formation in any land which the division shall have found to be suitable for the underground storage of natural gas, and in connection therewith may appropriate such other interests in the land as may be required to maintain and operate facilities for such underground storage; provided, however, that the right to appropriate underground formations and strata shall be limited as follows:
A. no formation or stratum which is producing or which is capable of producing oil in paying quantities, through any known recovery method, shall be subject to appropriation hereunder;
B. no formation or stratum that contained native gas producible in paying quantities shall be subject to appropriation hereunder, unless the recoverable volumes of native gas originally in place therein shall be substantially depleted, and unless such formation or stratum has a greater value or utility as a gas storage reservoir for the purpose of insuring an adequate supply of natural gas, or for the conservation of natural gas, than for the production of the relatively small volumes of native gas which remain therein;
C. no formation or stratum underlying lands which contain known commercial deposits of potash shall be subject to appropriation hereunder;
D. no formation or stratum shall be subject to appropriation hereunder if its use for underground storage purposes would cause injury to surface or underground water resources;
E. no rights or interest in existing underground gas reservoirs, being used for the injection, storage and withdrawal of natural gas, owned or operated by others than the condemner, shall be subject to appropriation;
F. no dwelling, barn, store, warehouse or other building shall be subject to appropriation hereunder; and
G. the right of appropriation hereby granted shall be without prejudice to the rights of the owner of said lands or of other rights or interests therein to drill through the underground stratum or formation so appropriated in such manner as shall comply with orders, rules and regulations of the division issued for the purpose of protecting underground storage strata or formations against pollution and against the escape of natural gas therefrom and shall be without prejudice to the rights of the owner of said lands or other rights or interests therein as to all other uses thereof.
History:
1953 Comp., § 65-9-4, enacted by Laws 1978, ch. 59, § 1.
ANNOTATIONS
Repeals and reenactments.
— Laws 1978, ch. 59, § 1, repealed 65-9-4, 1953 Comp. (former 70-6-4 NMSA 1978), relating to appropriation of underground storage facilities and limitations, and enacted a new section.
Cross references.
— For eminent domain,
see
N.M. Const., art. II, § 20 and 42A-1-1 NMSA 1978 et seq.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 26 Am. Jur. 2d Eminent Domain § 79.
29A C.J.S. Eminent Domain § 48.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-5 - Findings of oil conservation division.

Any natural gas company desiring to exercise the right of eminent domain as to any land for underground storage of natural gas shall, as a conditional [condition] precedent to the filing of its petition in the district court, obtain from the division a decision finding:
A. that the underground stratum or formation sought to be acquired is suitable for the underground storage of natural gas;
B. that the underground stratum or formation sought to be acquired is incapable of producing oil in paying quantities through any known recovery method;
C. that the formation or stratum sought to be acquired is not underlying lands which contain known commercial deposits of potash;
D. that injury will not be caused to surface or underground water resources;
E. that the underground stratum or formation sought to be acquired, if it contained native gas capable of production in paying quantities, is substantially depleted of recoverable native gas, and that such formation or stratum has a greater value or utility as a gas storage reservoir than for the production of the remaining volumes of native gas therein;
F. the extent of the horizontal limits of the reservoir expected to be penetrated by displaced or injected gas; and
G. that no portion of the formation or stratum sought to be acquired has been appropriated or is being utilized for the injection, storage and withdrawal of natural gas by others.
History:
1953 Comp., § 65-9-5, enacted by Laws 1963, ch. 139, § 5; 1977, ch. 255, § 70.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-6 - Commission or division procedure.

The laws, rules and regulations relating to commission or division action in matters pertaining to conservation of oil and gas shall be applicable to commission or division proceedings under this act [70-6-1 to 70-6-8 NMSA 1978].
History:
1953 Comp., § 65-9-6, enacted by Laws 1963, ch. 139, § 6; 1977, ch. 255, § 71.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-7 - Exercise of right of eminent domain.

Any natural gas company having first obtained a decision from the division may proceed to appropriate for underground storage of natural gas subsurface strata or formations and such other interests in the property as may be required to maintain and operate facilities for such underground storage in the manner provided by the Eminent Domain Code [42A-1-1 to 42A-1-33 NMSA 1978].
History:
1953 Comp., § 65-9-7, enacted by Laws 1963, ch. 139, § 7; 1977, ch. 255, § 72; 1981, ch. 125, § 53.
ANNOTATIONS
Cross references.
— For telegraph and telephone companies' right of eminent domain,
see
42A-2-2 to 42A-2-4 NMSA 1978.
For railroads' right of eminent domain,
see
42A-2-3 and 42A-2-4 NMSA 1978.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 6 - Underground Storage of Natural Gas › Section 70-6-8 - Ownership of injected gas.

All natural gas which has previously been reduced to possession, and which is subsequently injected into underground storage in any strata or formation shall at all times be deemed the property of the injector, his heirs, successors or assigns; and in no event shall such gas be subject to the right of the owner of the surface of said lands or of any mineral interest therein, under which said strata or formation lie, or of any person other than the injector, his heirs, successors and assigns, to produce, take, reduce to possession, waste or otherwise interfere with or exercise any control thereover, provided that the injector, his heirs, successors and assigns shall have no right to gas in any stratum, formation or portion thereof, in which storage rights have not been acquired pursuant to this act [70-6-1 to 70-6-8 NMSA 1978], or otherwise purchased.
History:
1953 Comp., § 65-9-8, enacted by Laws 1963, ch. 139, § 8.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Rights and liabilities with respect to natural gas reduced to possession and subsequently stored in natural reservoir, 94 A.L.R.2d 543.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-1 - Purpose of act.

The legislature finds and determines that it is desirable and necessary under the circumstances and for the purposes hereinafter set out to authorize and provide for the unitized management, operation and further development of the oil and gas properties to which the Statutory Unitization Act is applicable, to the end that greater ultimate recovery may be had therefrom, waste prevented, and correlative rights protected of all owners of mineral interests in each unitized area. It is the intention of the legislature that the Statutory Unitization Act apply to any type of operation that will substantially increase the recovery of oil above the amount that would be recovered by primary recovery alone and not to what the industry understands as exploratory units.
History:
1953 Comp., § 65-14-1, enacted by Laws 1975, ch. 293, § 1.
ANNOTATIONS
Law reviews.
— For article, "On an Institutional Arrangement for Developing Oil and Gas in the Gulf of Mexico," see 26 Nat. Res. J. 717 (1986).
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-2 - Short title.

This act [70-7-1 to 70-7-21 NMSA 1978] may be cited as the "Statutory Unitization Act."
History:
1953 Comp., § 65-14-2, enacted by Laws 1975, ch. 293, § 2.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-3 - Additional powers and duties of the oil conservation division.

Subject to the limitations of the Statutory Unitization Act, the oil conservation division of the energy, minerals and natural resources department, hereinafter referred to as the "division", is vested with jurisdiction, power and authority and it shall be its duty to make and enforce such orders and do such things as may be necessary or proper to carry out and effectuate the purposes of the Statutory Unitization Act.
History:
1953 Comp., § 65-14-3, enacted by Laws 1975, ch. 293, § 3; 1977, ch. 255, § 109; 1987, ch. 234, § 67.
ANNOTATIONS
The 1987 amendment,
effective July 1, 1987, substituted "energy, minerals and natural resources" for "energy and minerals" and made minor changes in language.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-4 - Definitions.

For the purposes of the Statutory Unitization Act, unless the context otherwise requires:
A. "pool" means an underground reservoir containing a common accumulation of crude petroleum oil or natural gas or both. Each zone of a general structure, which zone is completely separate from any other zone in the structure, is covered by the word pool as used herein. Pool is synonymous with "common source of supply" and with "common reservoir";
B. "oil and gas" means crude oil, natural gas, casinghead gas, condensate or any combination thereof;
C. "waste," in addition to its meaning in Section 70-2-3 NMSA 1978, shall include both economic and physical waste resulting, or that could reasonably be expected to result, from the development and operation separately of tracts that can best be developed and operated as a unit;
D. "working interest" means an interest in unitized substances by virtue of a lease, operating agreement, fee title or otherwise, excluding royalty owners, owners of overriding royalties, oil and gas payments, carried interests, mortgages and lien claimants but including a carried interest, the owner of which is primarily obligated to pay, either in cash or out of production or otherwise, a portion of the unit expense; however, oil and gas rights that are free of lease or other instrument creating a working interest shall be regarded as a working interest to the extent of seven-eighths thereof and a royalty interest to the extent of the remaining one-eighth thereof;
E. "working interest owner" or "lessee" means a person who owns a working interest;
F. "royalty interest" means a right to or interest in any portion of the unitized substances or proceeds thereof other than a working interest;
G. "royalty owner" means a person who owns a royalty interest;
H. "unit operator" means the working interest owner, designated by working interest owners under the unit operating agreement or the division to conduct unit operations, acting as operator and not as a working interest owner;
I. "basic royalty" means the royalty reserved in the lease but in no event exceeding one-eighth; and
J. "relative value" means the value of each separately owned tract for oil and gas purposes and its contributing value to the unit in relation to like values of other tracts in the unit, taking into account acreage, the quantity of oil and gas recoverable therefrom, location on structure, its probable productivity of oil and gas in the absence of unit operations, the burden of operation to which the tract will or is likely to be subjected, or so many of said factors, or such other pertinent engineering, geological, operating or pricing factors, as may be reasonably susceptible of determination.
History:
1953 Comp., § 65-14-4, enacted by Laws 1975, ch. 293, § 4; 1977, ch. 255, § 110.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-5 - Requisites of application for unitization.

Any working interest owner may file an application with the division requesting an order for the unit operation of a pool or any part thereof. The application shall contain:
A. a description of the proposed unit area and the vertical limits to be included therein with a map or plat thereof attached;
B. a statement that the reservoir or portion thereof involved in the application has been reasonably defined by development;
C. a statement of the type of operations contemplated for the unit area;
D. a copy of a proposed plan of unitization which the applicant considers fair, reasonable and equitable;
E. a copy of a proposed operating plan covering the manner in which the unit will be supervised and managed and costs allocated and paid; and
F. an allegation of the facts required to be found by the division under Section 70-7-6 NMSA 1978.
History:
1953 Comp., § 65-14-5, enacted by Laws 1975, ch. 293, § 5; 1977, ch. 255, § 111.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 38 Am. Jur. 2d Gas and Oil §§ 164, 172.
Compulsory pooling or unitization statute or ordinance requiring owners or lessees of oil and gas lands to develop their holdings as a single drilling unit and the like, 37 A.L.R.2d 434.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-6 - Matters to be found by the division precedent to issuance of unitization order.

A. After an application for unitization has been filed with the division and after notice and hearing, all in the form and manner and in accordance with the procedural requirements of the division, and prior to reaching a decision on the petition, the division shall determine whether or not each of the following conditions exists:
(1) that the unitized management, operation and further development of the oil or gas pool or a portion thereof is reasonably necessary in order to effectively carry on pressure maintenance or secondary or tertiary recovery operations, to substantially increase the ultimate recovery of oil and gas from the pool or the unitized portion thereof;
(2) that one or more of the said unitized methods of operations as applied to such pool or portion thereof is feasible, will prevent waste and will result with reasonable probability in the increased recovery of substantially more oil and gas from the pool or unitized portion thereof than would otherwise be recovered;
(3) that the estimated additional costs, if any, of conducting such operations will not exceed the estimated value of the additional oil and gas so recovered plus a reasonable profit;
(4) that such unitization and adoption of one or more of such unitized methods of operation will benefit the working interest owners and royalty owners of the oil and gas rights within the pool or portion thereof directly affected;
(5) that the operator has made a good faith effort to secure voluntary unitization within the pool or portion thereof directly affected; and
(6) that the participation formula contained in the unitization agreement allocates the produced and saved unitized hydrocarbons to the separately owned tracts in the unit area on a fair, reasonable and equitable basis.
B. If the division determines that the participation formula contained in the unitization agreement does not allocate unitized hydrocarbons on a fair, reasonable and equitable basis, the division shall determine the relative value, from evidence introduced at the hearing, taking into account the separately owned tracts in the unit area, exclusive of physical equipment, for development of oil and gas by unit operations, and the production allocated to each tract shall be the proportion that the relative value of each tract so determined bears to the relative value of all tracts in the unit area.
C. When the division determines that the preceding conditions exist, it shall make findings to that effect and make an order creating the unit and providing for the unitization and unitized operation of the pool or portion thereof described in the order, all upon such terms and conditions as may be shown by the evidence to be fair, reasonable, equitable and which are necessary or proper to protect and safeguard the respective rights and obligations of the working interest owners and royalty owners.
History:
1953 Comp., § 65-14-6, enacted by Laws 1975, ch. 293, § 6; 1977, ch. 255, § 112.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-8 - Ratification or approval of plan by owners.

A. No order of the division providing for unit operations shall become effective unless and until the plan for unit operations prescribed by the division has been approved in writing by those persons who, under the division's order, will be required initially to pay at least seventy-five percent of the costs of the unit operations, and also by the owners of at least seventy-five percent of the production or proceeds thereof that will be credited to interests which are free of cost such as royalties, overriding royalties and production payments, and the division has made a finding either in the order providing for unit operations or in a supplemental order that the plan for unit operations has been so approved. Notwithstanding any other provisions of this section, if seventy-five percent or more of the unit area is owned, as to working interest, by one working interest owner, such working interest owner must be joined by at least one other working interest owner in ratifying and approving the plan of unit operations, unless such working interest owner is the owner of one hundred percent of the working interest in said unit area; provided, however, if a single owner is one who, under the division's order will be required initially to pay at least twenty-five percent, but not more than fifty percent, of the costs of unit operation, such owner must be joined by at least one other owner of the same type interest in disapproving, or failure to approve, the plan of unit operations to defeat the plan.
B. If one owner is the owner of at least twenty-five percent, but not more than fifty percent, of the production or proceeds thereof that will be credited to interests which are free of costs, such owner must be joined by at least one other owner of the same type interest in disapproving, or failure to approve, the plan of unit operations to defeat the plan.
C. If the persons owning the required percentage of interest in the unit area do not approve the plan for unit operations within a period of six months from the date on which the order providing for unit operations is made, such order shall cease to be of further force and effect and shall be revoked by the division, unless the division shall extend the time for ratification for good cause shown.
D. When the persons owning the required percentage of interest in the unit area have approved the plan for unit operations, the interests of all persons in the unit are unitized whether or not such persons have approved the plan of unitization in writing.
History:
1953 Comp., § 65-14-8, enacted by Laws 1975, ch. 293, § 8; 1977, ch. 255, § 114.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-9 - Amendment of plan of unitization.

An order providing for unit operations may be amended by an order made by the division in the same manner and subject to the same conditions as an original order providing for unit operations, provided:
A. if such an amendment affects only the rights and interests of the working interest owners, the approval of the amendment by the royalty owners shall not be required; and
B. no such amendment shall change the percentage for the allocation of oil and gas as established for any separately owned tract by the original order, except with the consent of all working interest owners and royalty owners in such tract, or change the percentage for the allocation of costs as established for any separately owned tract by the original order, except with the consent of all working interest owners in such tract.
History:
1953 Comp., § 65-14-9, enacted by Laws 1975, ch. 293, § 9; 1977, ch. 255, § 115.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-10 - Previously established units.

The division, by order, may provide for the unit operation of a pool or parts thereof that embrace a unit area established by a previous order of the division. Such order, in providing for the allocation of unit production, shall first treat the unit area previously established as a single tract, and the portion of the unit production allocated thereto shall then be allocated among the separately owned tracts included in such previously established unit area in the same proportions as those specified in the previous order.
History:
1953 Comp., § 65-14-10, enacted by Laws 1975, ch. 293, § 10; 1977, ch. 255, § 116.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-11 - Unit operations of less than an entire pool.

An order may provide for unit operation on less than the whole of a pool where the unit area is of such size and shape as may be reasonably suitable for that purpose, and the conduct thereof will have no adverse effect upon other portions of the pool.
History:
1953 Comp., § 65-14-11, enacted by Laws 1975, ch. 293, § 11.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 38 Am. Jur. 2d Gas and Oil §§ 164, 172.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-12 - Operation; expressed or implied covenants.

All operations, including but not limited to, the commencement, drilling or operation of a well upon any portion of the unit area shall be deemed for all purposes the conduct of such operations upon each separately owned tract in the unit area by the several owners thereof. The portions of the unit production allocated to a separately owned tract in a unit area shall, when produced, be deemed, for all purposes, to have been actually produced from such tract by a well drilled thereon. Operations conducted pursuant to an order of the division providing for unit operations shall constitute a fulfillment of all the express or implied obligations for each lease or contract covering lands in the unit area to the extent that compliance with such obligations cannot be had because of the order of the division.
History:
1953 Comp., § 65-14-12, enacted by Laws 1975, ch. 293, § 12; 1977, ch. 255, § 117.
ANNOTATIONS
Communitization agreement entered into with permission of prior fee owner
supports implied surface access right over land subject to that agreement but not over land that is not subject to agreement.
Kysar v. Amoco Prod. Co.
, 2004-NMSC-025, 135 N.M. 767, 93 P.3d 1272.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-13 - Income from unitized substances.

The portion of the unit production allocated to any tract, and the proceeds from the sale thereof, shall be the property and income of the several persons to whom, or to whose credit, the same are allocated or payable under the order providing for unit operations.
History:
1953 Comp., § 65-14-13, enacted by Laws 1975, ch. 293, § 13.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-14 - Lien for costs.

Subject to such reasonable limitations as may be set out in the plan of unitization, the unit shall have a first and prior lien upon the leasehold estate and other oil and gas rights (exclusive of a one-eighth royalty interest or exclusive of the interest provided in the unit operating plan which allocates costs, if it is different than one-eighth) in and to each separately owned tract, the interest of the owners thereof in and to the unit production and all equipment in the possession of the unit, to secure the payment of the amount of the unit expense charged to and assessed against such separately owned tract.
History:
1953 Comp., § 65-14-14, enacted by Laws 1975, ch. 293, § 14.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-15 - Liability for expenses.

The obligation or liability of each working interest owner in the several separately owned tracts in the unit for the payment of unit expense at all times shall be several and not joint or collective, and a working interest owner shall not be chargeable with, obligated or liable for, directly or indirectly, more than the amount apportioned, assessed or otherwise charged to his interest in the separately owned tract pursuant to the order of unitization.
History:
1953 Comp., § 65-14-15, enacted by Laws 1975, ch. 293, § 15.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-16 - Division orders.

A. No division order or other contract relating to the sale or purchase of production from a separately owned tract shall be terminated by the order providing for unit operations, but shall remain in force and apply to oil and gas allocated to such tract until terminated in accordance with the provisions thereof.
B. For purposes of this section, "division order" shall mean a contract of sale to the purchaser of oil and gas.
History:
1953 Comp., § 65-14-16, enacted by Laws 1975, ch. 293, § 16; 1977, ch. 255, § 118.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-17 - Property rights.

Except to the extent that the parties affected so agree, no order providing for unit operations shall be construed to result in a transfer of all or any part of the title of any person to the oil and gas rights in any tract in the unit area. All property, whether real or personal, that may be acquired in the conduct of unit operations hereunder shall be acquired for the account of the working interest owners within the unit area, and shall be the property of such working interest owners in the proportion that the costs of unit operations are charged.
History:
1953 Comp., § 65-14-17, enacted by Laws 1975, ch. 293, § 17.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-18 - Existing rights, rights in unleased land and royalties and lease burdens.

Property rights, leases, contracts and other rights or obligations shall be regarded as amended and modified only to the extent necessary to conform to the provisions and requirements of the Statutory Unitization Act and to any valid order of the division providing for the unit operation of a pool or a part thereof, but otherwise shall remain in full force and effect. A one-eighth part of the production allocated to each tract under an order providing for the unit operation of a pool or a part thereof shall in all events be and remain free and clear of any cost or expense of developing or operating the unit and of any lien therefor as an encumbered [unencumbered] source from which to pay the royalties or other cost-free obligations due or payable with respect to the production from such tract. If a lease or other contract pertaining to a tract or interest stipulates a royalty, overriding royalty, production payment or other obligation in excess of one-eighth of the production or proceeds therefrom, then the working interest owner subject to such excess payment or other obligation shall bear and pay the same.
History:
1953 Comp., § 65-14-18, enacted by Laws 1975, ch. 293, § 18; 1977, ch. 255, § 119.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-19 - Agreements not violative of laws governing monopolies or restraint of trade.

No agreement between or among lessees or other owners of oil and gas rights in oil and gas properties entered into pursuant hereto or with a view or for the purpose of bringing about the unitized development or operation of such properties shall be held to violate any of the statutes of this state prohibiting monopolies or acts, arrangements, agreements, contracts, combinations or conspiracies in restraint of trade or commerce.
History:
1953 Comp., § 65-14-19, enacted by Laws 1975, ch. 293, § 19.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-20 - Evidence of unit to be recorded.

A copy of each unit agreement shall be recorded in the office of the county clerk of the county or counties in which the unit is situated.
History:
1953 Comp., § 65-14-20, enacted by Laws 1975, ch. 293, § 20.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 7 - Statutory Unitization Act › Section 70-7-21 - Unlawful operation.

From and after the date designated by the division that a unit plan shall become effective, the operation of any well producing from the pool within the area subject to said unit plan, by persons other than persons acting under the authority of the unit plan, or except in the manner and to the extent provided in such unit plan, shall be unlawful and is hereby prohibited.
History:
1953 Comp., § 65-14-21, enacted by Laws 1975, ch. 293, § 21; 1977, ch. 255, § 120.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-1 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-1 NMSA 1978 has been recompiled as 12-12-10 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-2 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-2 NMSA 1978 has been recompiled as 12-12-11 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-3 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-3 NMSA 1978 has been recompiled as 12-12-12 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-4 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-4 NMSA 1978 has been recompiled as 12-12-13 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-5 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-5 NMSA 1978 has been recompiled as 12-12-14 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-5.1 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-5.1 NMSA 1978 has been recompiled as 12-12-15 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 8 - Emergency Petroleum Products Supplies (Recompiled.) › Section 70-8-6 - Recompiled.

ANNOTATIONS
Recompilation.
— The Emergency Petroleum Products Supply Act has been recompiled by Laws 2005, ch. 22, § 4 as part of the Chapter 12, Article 12 NMSA 1978. Former Section 70-8-6 NMSA 1978 has been recompiled as 12-12-16 NMSA 1978, effective July 1, 2005.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 9 - Petroleum Recovery Research Center › Section 70-9-1 - New Mexico petroleum recovery research center.

There is hereby established a "New Mexico petroleum recovery research center" which shall be a division of the New Mexico institute of mining and technology and under the direction of its board of regents.
History:
1953 Comp., § 73-27-28, enacted by Laws 1977, ch. 143, § 1.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 9 - Petroleum Recovery Research Center › Section 70-9-2 - New Mexico petroleum recovery research center; duties.

The objectives and duties of the New Mexico petroleum recovery research center shall be as follows:
A. to engage in theoretical and practical research into the recovery of petroleum and other energy resources;
B. to disseminate the knowledge acquired;
C. to assist, in all legal ways, persons and entities in the state in their efforts to effect additional recovery of petroleum and other energy resources from the state;
D. to perform any and all tasks in the area of petroleum recovery and other energy research as directed by the board of regents of the New Mexico institute of mining and technology; and
E. to cooperate with all other state and federal agencies as may be beneficial in carrying out the work of the New Mexico petroleum recovery research center.
History:
1953 Comp., § 73-27-29, enacted by Laws 1977, ch. 143, § 2.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 9 - Petroleum Recovery Research Center › Section 70-9-3 - Reports.

A. The board of regents shall cause to be prepared such reports showing the progress and condition of the center as the board may deem necessary or useful.
B. The reports of the center shall be printed as the board of regents may direct and the reports may be distributed or sold by the board as the interest of the state or science may demand and the money obtained by the sale of the reports shall be paid into the account of the New Mexico institute of mining and technology.
History:
1953 Comp., § 73-27-30, enacted by Laws 1977, ch. 143, § 3.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 9 - Petroleum Recovery Research Center › Section 70-9-4 - Sources of income.

The center may receive appropriations from the state directly or through the board of regents and may receive any or other items of value from public or private sources.
History:
1953 Comp., § 73-27-31, enacted by Laws 1977, ch. 143, § 4.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 10 - Oil and Gas Proceeds Payments › Section 70-10-1 - Short title.

This act [70-10-1 to 70-10-3, 70-10-4, 70-10-5 NMSA 1978] may be cited as the "Oil and Gas Proceeds Payment Act".
History:
Laws 1985, ch. 55, § 1.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 38 Am. Jur. 2d Gas and Oil §§ 77, 86, 91, 141, 189 et seq.
Oil and gas royalty as real or personal property, 56 A.L.R.4th 539.
58 C.J.S. Mines and Minerals §§ 185 to 192, 213 to 219, 239.
2023 New Mexico Statutes › Chapter 70 - Oil and Gas › Article 10 - Oil and Gas Proceeds Payments › Section 70-10-2 - Definitions.

As used in the Oil and Gas Proceeds Payment Act:
A. "oil and gas" means crude oil, natural gas, casinghead gas, condensate or any other related hydrocarbons;
B. "oil and gas proceeds" means all payments derived from oil and gas production from any well located in New Mexico, whether royalty interest, overriding royalty interest, production payment interest or working interest, expressed as a right to a specified interest in the cash proceeds received from the sale of oil and gas produced thereunder or the cash value thereof, subject to all taxes withheld therefrom pursuant to law, but excluding "net profits interests", and other types of interest the extent of which cannot be determined with reference to a specified share of such proceeds; and
C. "payor" means the party who undertakes to distribute oil and gas proceeds to the parties entitled thereto, including, but not limited to, the first purchaser of such production or as operator of the well from which such production was obtained or as lessee under the lease on which royalty is due.
History:
Laws 1985, ch. 55, § 2; 1991, ch. 235, § 1.
ANNOTATIONS
The 1991 amendment,
effective June 14, 1991, substituted "including, but not limited to" for "whether as" in Subsection C.