New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 3 - LEASING OF POTASSIUM, SULPHUR, SODIUM, PHOSPHORUS AND SIMILAR MINERALS AND THEIR SALTS AND COMPOUNDS EXCEPT SODIUM CHLORIDE › Section 19.2.3.15 - SPECIAL AREA REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
The following requirements, applicable only to the area
				  hereinafter named, shall be in addition to, and not in exclusion of, any other
				  rule.
A. Mining of minerals held in
				solution in the natural brines shall be permitted within the area west of the
				Pecos river south of the south boundary of township 20 south, east of the east
				boundary of range 21 east, and north of the state line.
B. Any wells drilled upon leases issued
				pursuant to the rules herein, which wells lie within any declared underground
				water basin, shall, in addition to said rules, conform to the requirements of
				the state engineer.
C. Location,
				drilling and well record reports will be required to be submitted to the New
				Mexico state land office on all wells drilled. The standard forms of the New
				Mexico oil conservation commission shall be used in submitting these
				reports.
D. An analysis of the
				brine, or solution, found in each well must be submitted upon completion of the
				well, and annually on the anniversary date of the lease thereafter; provided,
				however, that such an analysis may be required to be submitted more often if
				deemed necessary by the commissioner.
E. Production reports showing the number of
				gallons of solution produced by each well in each month shall be submitted
				monthly in connection with royalty reports showing mineral production, amount
				sold and the sale price. Such reports shall be submitted no later than the
				twentieth (20th) day of the next succeeding month.
F. In all cases, there shall be reserved to
				the state a royalty of not less than five percent (5%) of the amount of value
				of the minerals produced, such royalty to be computed upon the value of said
				minerals delivered at the nearest or most accessible railroad shipping point.
				After the primary term of the lease, royalty shall be at the rate of eight
				percent (8%) of the next sale price, computed as above.
G. The minimum rental charge for leases will
				be ten cents ($.10) per acre, payable annually in advance, but the minimum
				rental shall be no less than one hundred dollars ($100.00) in any event. An
				application fee as set forth in the schedule of fees will be charged in
				addition thereto for each application.
H. A good and sufficient bond as provided in
				19.2.3.17 NMAC shall be filed before a lease may be issued; provided, however,
				that such bond shall be conditioned to conform with all the provisions of the
				lease including but not limited to drilling and plugging
				requirements.
I. A lease that
				includes land held under purchase contract(s), or previously patented with
				reservation of the minerals to the State, shall comply with additional bond
				requirements as provided by law.
J.
				A minimum of one (1) well must be drilled for each three hundred twenty (320)
				acres or fraction thereof encompassed in the lease, must be drilled at the rate
				of one (1) well the first (1st) year, two (2) the second (2nd) year, and four
				(4) per year thereafter until the minimum number of wells shall have been
				drilled. A well, in order to be included in the calculation of minimum
				requirements, shall be drilled to a depth of seven hundred fifty (750) feet, or
				through the brine horizon.
K. The
				term of the lease contemplated herein shall be for a five (5) year definite
				term, and so long thereafter as said minerals or any of them, in paying
				quantities, are produced by the lessee from the lands embraced in such lease,
				subject to all of their terms and conditions as set forth in such
				lease.