New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 6 - RELATING TO COAL LEASES ON STATE LAND › Section 19.2.6.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
As used in 19.2.6 NMAC and state coal leases:
A. Logical mining unit - means an area under
				the effective control of a single operator, which is capable of being developed
				and operated in an efficient, economical and orderly manner as a single
				operation;
B. Market value - means
				the amount a knowledgeable and willing buyer would pay a knowledgeable and
				willing seller for equivalent coal FOB at the minemouth under an arm's-length
				sales contract. Market value can be determined by examining comparable
				arm's-length sales in the same coal field, by examining arm's-length sales of
				coal in other fields and making adjustments for differences, or by determining
				a downstream value for the subject coal or coal product and netting back actual
				and reasonable costs to arrive at a FOB minemouth value;
C. Mine plan - means a brief summary of how
				and when the leased lands will be developed. The plan should include
				anticipated dates for obtaining the necessary permits, commencing mining
				operations, and completing operations; should state anticipated annual
				production levels from the opening of the mine until its closing; should
				identify anticipated markets; and should show the planned progression and time
				frames for mining and reclaiming each tract within the logical mining
				unit;
D. Proceeds - means the total
				consideration accruing to the coal seller, without deduction of any kind. It
				includes but is not limited to: reimbursements, payments or credits for
				advanced prepaid reserve payments subject to recoupment through reduced prices
				in later sales; advanced exploration or mine development costs that are subject
				to recoupment through reduced prices in later sales; any other consideration
				given to the seller or any action taken or not taken in exchange for reduced
				prices; take-or-pay payments; and tax reimbursements. It is the intent of this
				Rule that lessees act as prudent operators in obtaining the maximum possible
				prices. Therefore, "proceeds" shall equal the highest price a prudent operator
				may receive under its contract. Also, if the operator fails to take proper or
				timely action to receive price increases to which it is entitled, and which
				action would have been taken by a prudent operator, then "proceeds" shall equal
				that obtainable price; and
E.
				Recoverable reserves - means the commercially mineable reserve base excluding
				all coal that will be left such as in pillars, fenders and property barriers.
				Generally, recoverable reserves will be based on quantities identified in the
				mine plan; however, with the concurrence of the commissioner, the amount of
				recoverable reserves may be changed as new information is developed.
F.
"Schedule of fees"
-
means a list of fees that must be paid for performance of
				certain administrative functions. The schedule of fees shall be published on
				the state land office website and is subject to change at the discretion of the
				commissioner. Unless otherwise noted in the schedule of fees or in this rule,
				the fee shall be non-refundable.