New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 100 - RELATING TO OIL AND GAS LEASES › Section 19.2.100.23 - SURETY TO PROTECT SURFACE PURCHASER AND LESSEE - WAIVERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Before any
				lessee shall commence development or operations, including any and all
				prospecting activities upon the lands, such lessee or operator shall execute
				and file with the commissioner a good and sufficient bond or other surety, in
				an amount to be fixed by the commissioner but not less than ten thousand
				dollars ($10,000) in favor of the state of New Mexico for the benefit of the
				appropriate trust beneficiary and the state's contract purchasers, patentees
				and surface lessees, to secure payment to the extent allowed by law for such
				damage to their interests and tangible improvements upon such lands as may be
				suffered by reason of development, use and occupation of the lands by the oil
				and gas lessee.
B. A bond or other
				surety in the minimum amount of ten thousand dollars ($10,000) for each lease
				shall be deemed sufficient unless and until the commissioner determines, or one
				or more surface lessees or purchasers show the commissioner, that such an
				amount is not adequate in a given case. Provided, however, that if a lessee
				holds more than one oil and gas lease, a blanket bond or other surety in the
				amount of twenty thousand dollars ($20,000) will be acceptable unless and until
				the commissioner determines, or one or more surface lessees or purchasers show
				the commissioner, that such an amount is not adequate in a given case. Provided
				further, that if any purchaser, patentees or surface lessees shall file with
				the commissioner a waiver duly executed and acknowledged by the purchaser,
				patentee or surface lessee of the purchaser's, patentee's or surface lessee's
				right to require such bond or other surety pursuant to Section
				19-10-26
				NMSA 1978 the development, occupation and use of the lands by the oil and gas
				lessee may in the discretion of the commissioner be permitted without said
				surety.
C. With the approval of the
				commissioner, in lieu of the single and blanket bonds for oil and gas lessees,
				a twenty-five thousand dollar ($25,000) bond or other surety may be used at the
				option of lessee for the use and benefit of the commissioner, to secure surface
				improvement damage and the performance of the lessee under one or more state
				leases or permits for minerals, oil and gas, coal or geothermal resources or as
				holder under one or more state rights of way or easements which the lessee has
				executed with the commissioner. The lessee will be obligated to perform and
				keep all terms, covenants, conditions and requirements of all state leases for
				minerals, oil and gas, coal or geothermal resources and of all state rights of
				way and easements executed with the commissioner, including the payment of
				royalties when due and compliance with all established mining plans and
				reclamation requirements.