reglab/statecodes huggingface dataset:
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 19.2.3.9 - APPLICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Each application for lease shall be made with ink or with
				  typewriter, in duplicate, upon forms to be prescribed and furnished by the
				  commissioner, which application shall be acknowledged, shall be accompanied by
				  an application fee as set forth in the schedule of fees, and shall be
				  accompanied by the first (1st) year's rental. In addition, it shall be
				  accompanied by an appraisal, under oath, of the lands and minerals made by some
				  disinterested party upon forms furnished by the New Mexico state land
				  office.
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 19.2.3.10 - TERM

Current through Register Vol. 35, No. 13, July 16, 2024
Leases will be made upon forms prescribed and furnished by
				  the commissioner and ordinarily will be for a term of 10 years and so long
				  thereafter as said minerals or any of them are produced in paying quantities
				  from the lands. The commissioner reserves the right to issue leases for a
				  lesser primary or fixed term than 10 years when under the circumstances the
				  commissioner deems a shorter term to be in the best interests of the trust.
				  (See
				  19.2.3.14
				  NMAC for extension of term by suspension of production).
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 19.2.3.11 - RENTAL

Current through Register Vol. 35, No. 13, July 16, 2024
The rental charge for such leases will be negotiated but
				  shall in no event be less than ten cents ($.10) per acre, or fraction thereof,
				  payable annually in advance, but the minimum first (1st) year's rental will be
				  one hundred dollars ($100.00) in any event as provided by Section
				  19-8-4
				  NMSA 1978.
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 19.2.3.12 - ROYALTIES; REDUCTION IN MINIMUM ROYALTIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Royalties will be established by the
				commissioner on a negotiated basis and such royalty shall be computed on the
				gross value of the product after processing, without deductions of any kind,
				regardless of the place of sale. The minimum royalty rates for potassium
				chlorides and sulphates shall be as follows:
(1) POTASSIUM CHLORIDES* ROYALTY RATE
(Grade of Ore Mined)
10.00% K20 or less 2.00%
** **
17.09% K20 or more 5.00%
*(Mined by conventional methods and based on the
				  K20 grade, as sylvite.)
**Intervening ore grade increments are to be proportioned to
				  the foregoing royalty rate limits and royalty rate to be computed according to
				  the formula:
Royalty rate = 2.00% + [(% K20 grade
				  mined - 10.00% K2O) x 0.423077], the
				  K2O grade mined and royalty rate to be determined to the
				  nearest 0.00 percent.
(2)
				SULPHATES ROYALTY RATE
Langbeinite 2.50%
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 19.2.3.13 - OPERATIONS BEFORE DISCOVERY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Leases will require the lessee, within twelve (12) months from date of lease,
				unless extension be granted, to begin actual drilling upon the leased lands
				with machinery and equipment suitable for taking and preserving a core and to
				prosecute such drilling with reasonable diligence to a prescribed depth or to a
				depth as may be necessary to penetrate the formations containing the minerals
				for which the lease has been issued.
B. Upon completion of the first (1st) test
				bore, it will be required that an additional test bore shall be drilled each
				year thereafter until the number of bores completed shall equal the number of
				sections of land contained in the lease. Should fractions of sections be
				involved, a minor fraction of a section shall be disregarded and a major
				fraction shall be treated as a full section.
C. Leases shall provide, however, that where
				the deposits of the minerals are so situated that prospecting work may
				effectually be carried on by shafts, tunnels, open cuts or in any manner other
				than by drilling testbores, such prospecting work may be accepted in lieu of
				drilling.
D. In cases where there
				has been discovery of minerals in commercial quantities on the lands, or any
				production of any such minerals on such state land on a commercial basis has
				begun, any lease may provide for a specified minimum annual production of such
				minerals in lieu of the requirements of this Rule.
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 19.2.3.14 - OPERATIONS AFTER DISCOVERY

Current through Register Vol. 35, No. 13, July 16, 2024
If minerals in commercial quantities shall be discovered on
				  the leased lands, the lessee shall be required to develop and produce the same
				  in commercial quantities with reasonable diligence; provided, however, the
				  commissioner may, after hearing, authorize the suspension of production on such
				  lease or leases for a period not to exceed five (5) years at any one (1) time
				  and in no event shall any suspension be for more than ten (10) years from the
				  date on which the term of the lease would have expired in the absence of
				  suspension of production. Suspensions under this Rule will not be granted
				  unless the commissioner finds:
A.
				Temporary conditions exist, with regard to the leased land being mined, which
				would operate to prevent the mining of the maximum mineable ore in keeping with
				safe mining practices;
B. Separate
				parts of the lands covered by the lease are so situated with respect to other
				lands owned or leased by the lessee that lessee should be allowed a reasonable
				time to reach and mine the various parts of the lands covered by the lease in
				keeping with an orderly mining program and with a view to the proper
				development and mining of the entire area of which various parts of the lands
				covered by the lease and other lands are an integral part; or
C. Temporary marketing conditions are such
				that the lease cannot be mined and operated except at a loss. Suspensions
				hereunder extend the term of the lease to coincide with the term of the
				suspension.
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 19.2.3.16 - REPORTS AND INSPECTION

Current through Register Vol. 35, No. 13, July 16, 2024
Monthly reports of operations, production and sale of
				  minerals or materials will be required of lessee to be filed with the
				  commissioner on or before the 20th day of the month following the end of the
				  calendar month of production upon forms prescribed and furnished by the
				  commissioner. The records, books of account and operations pertaining to the
				  mining, extraction, transportation, production, returns, and sales of all ores
				  or minerals taken from the leased lands shall be open and available for field
				  audit and for inspection by the commissioner or the commissioner's authorized
				  agents at all reasonable times.
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 19.2.3.17 - SURETY

Current through Register Vol. 35, No. 13, July 16, 2024
A. A corporate
				surety lease performance and surface users improvement damage bond or other
				surety shall be filed with the commissioner before a lease shall be issued.
				Such bond shall be in the amount of not less than five hundred dollars
				($500.00) for each section or fraction thereof under lease to the same lessee.
				Under this rule, 16 legal subdivisions, whether or not included in the same
				numbered lease, shall be considered a section. Standard bond forms will be
				furnished by the commissioner upon request.
B. Once production is had upon any land
				leased to a lessee, whether upon one or more leases, such lessee shall file
				with the commissioner either a new lease performance bond or other surety or
				shall increase the lessee's existing bond or surety to the sum of ten thousand
				dollars ($10,000.00). Provided, however, the commissioner from time to time,
				for good cause shown, may increase the amount of such lease performance bond to
				an amount which the commissioner deems necessary to protect the interests of
				the trust.
C. With the approval of
				the commissioner, a twenty-five thousand dollar ($25,000.00) 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 as 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.
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 19.2.3.18 - ASSIGNMENT AND RELINQUISHMENT

Current through Register Vol. 35, No. 13, July 16, 2024
No assignment of a lease or any portion thereof will be made
				  except with the approval of the commissioner upon such terms and conditions as
				  the commisioner may require. All assignments shall be upon forms prescribed and
				  furnished by the commissioner, which shall recite, among other things, the
				  consideration received for the assignment. In the event a lessee desires to
				  transfer a portion of the lease, the lessee may do so with the approval of the
				  commissioner by relinquishing that portion to the commissioner in order that a
				  new and separate lease may be issued to the third party. Any lease in good
				  standing may, with the approval of the commissioner and the payment of a fee as
				  set forth in the schedule of fees, be relinquished to the state of New
				  Mexico.
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 19.2.3.19 - CANCELLATION

Current through Register Vol. 35, No. 13, July 16, 2024
Leases may be canceled for breach or violation of any of the
				  terms or conditions of the lease or of these rules and regulations; provided,
				  however, that before any such cancellation shall be made, the commissioner
				  shall mail to the lessee, by registered mail addressed to the post office
				  address of such lessee as shown by the records, a thirty (30) day notice of
				  intention to cancel said lease, specifying the default for which the lease is
				  subject to cancellation. Thirty (30) days after such mailing the commissioner
				  may enter cancellation unless the lessee shall have sooner remedied the default
				  to the satisfaction of the commissioner.
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 19.2.3.20 - RESERVATION OF RIGHT TO PURCHASE PRODUCTION

Current through Register Vol. 35, No. 13, July 16, 2024
The commissioner reserves a continuing option to purchase at
				  any time, and from time to time, at the market price prevailing in the area on
				  the date of purchase, all or part of the minerals that may be produced from the
				  lands embraced in all leases issued on or after June 11, 1973. The commissioner
				  may waive this reservation by following the statutory procedure set out in
				  Section
				  19-14-2
				  NMSA 1978.
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 19.2.3.21 - RESERVED

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Commissioner of Public Lands, New Mexico State Land Office,
				  310 Old Santa Fe Trail, P. O. Box 1148, Santa Fe, New Mexico 87501, Phone:
				  (505) 827-5713
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This Rule pertains to all sodium chloride or common salt on
				  those lands held in trust by the commissioner of public lands under the terms
				  of the Enabling Act and subsequent legislation (trust lands). This Rule governs
				  the lessees of such trust lands entered into subsequent to the date of this
				  Rule.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
The commissioner's authority to manage the trust lands is
				  found in N.M. Const., art. XIII, and in Section
				  19-1-1
				  NMSA 1978. The authority to promulgate this Rule is found in Section
				  19-1-2
				  NMSA 1978.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.4 - DURATION

Current through Register Vol. 35, No. 13, July 16, 2024
Permanent.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
January 20, 1984, unless a later date is cited at the end of
				  a section.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective 19.2.4 NMAC is to provide for the orderly and
				  lawful administration, and the appropriate development of sodium chloride or
				  common salt resources on trust lands.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
"
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.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.8 - LANDS SUBJECT TO LEASE

Current through Register Vol. 35, No. 13, July 16, 2024
Application to lease will be considered only for such lands
				  as may be shown to be open for leasing upon the tract books of the New Mexico
				  state land office and, although priority in time of filing ordinarily will
				  determine the preference right to lease, the commissioner reserves the right to
				  reject all applications at any time before lease issues, and to withhold from
				  leasing or to offer the lease to the highest bidder therefor.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.9 - APPLICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Each application for lease shall be made with ink, or with
				  typewriter, in duplicate, upon forms to be prescribed and furnished by the
				  commissioner. The application shall be acknowledged, shall be accompanied by
				  the fee as set forth in the schedule of fees (nonrefundable), and shall be
				  accompanied by the first (1st) year's rental as prescribed by
				  19.2.4.12 NMAC.
				  In addition, the application shall be accompanied by an appraisal of the land
				  and minerals made under oath by some disinterested party familiar with the land
				  upon forms prescribed and furnished by the New Mexico state land
				  office.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.10 - TERM

Current through Register Vol. 35, No. 13, July 16, 2024
Leases will be made upon forms prescribed and furnished by
				  the commissioner and ordinarily will be for a term of 10 years and as long
				  thereafter as salt in paying quantities shall be produced from the leased land.
				  The commissioner reserves the right to issue leases for a primary or fixed term
				  less than 10 years when under the circumstances the commissioner deems a
				  shorter term to be in the best interest of the trust.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.11 - ROYALTY

Current through Register Vol. 35, No. 13, July 16, 2024
Royalties shall be determined through negotiation, but shall
				  not be less than ten (10) percent of the actual sale price of the salt at the
				  place of extraction. The royalty shall be paid quarterly and the commissioner
				  may prescribe advance royalty to be paid annually on or before the anniversary
				  date of the lease in such sums as the commissioner may determine in each case
				  before issuance of the lease. Royalty accruing for the lease year for which
				  such advance royalty payments are made will be credited against the advance
				  royalty payment made for that year.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.12 - RENTAL

Current through Register Vol. 35, No. 13, July 16, 2024
In lieu of advance royalty as provided in
				  19.2.4.11
				  NMAC, the lease may provide for payment of an annual payment at a negotiated
				  rate, but not less than twenty-five dollars ($25.00) for each legal subdivision
				  of forty (40) acres, more or less.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.13 - REPORTS AND INSPECTION

Current through Register Vol. 35, No. 13, July 16, 2024
Quarterly reports of operation, production and sale of salt
				  shall be filed by the lessee on or before the 20th day of the month following
				  the last day of the reporting quarter. Such reports shall be upon forms
				  prescribed and furnished by the commissioner. The records, books of account,
				  and operations pertaining to mining, extraction, transportation, production,
				  returns and sales of all salt shall be open and available for field audit and
				  inspection by the commissioner or the commissioner's authorized agents at all
				  reasonable times.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.14 - SURETY

Current through Register Vol. 35, No. 13, July 16, 2024
A. A corporate
				surety, performance and improvement damage bond in such sum as the commissioner
				in each case may prescribe (minimum of five hundred dollars $500.00 for a
				single lease bond and one thousand dollars $1,000.00 for a multiple lease or
				blanket bond) executed by the lessee with satisfactory surety shall be executed
				by the lessee before a lease is issued.
B. With the approval of the commissioner, a
				twenty-five thousand dollar ($25,000.00) 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 as lessee under
				one (1) or more state leases or permits for minerals, oil and gas, coal or
				geothermal resources or as holder under one (1) or more state rights of way or
				easements which the lessee or its successors or assigns 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.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.15 - ASSIGNMENT AND RELINQUISHMENT

Current through Register Vol. 35, No. 13, July 16, 2024
No lease may be assigned or relinquished without the written
				  approval of the commissioner upon such terms and conditions as the commissioner
				  may require and the payment of the fee as set forth in the schedule of fees.
				  All assignments shall be upon forms prescribed by the commissioner and shall
				  recite, among other things, the consideration received for the
				  assignment.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.16 - CANCELLATION

Current through Register Vol. 35, No. 13, July 16, 2024
Leases may be canceled for breach or violation of any of the
				  terms or conditions of the lease or of these rules; provided, however, that
				  before any such cancellation shall be made, the commissioner shall mail to the
				  lessee, by registered mail, addressed to the post office address of such lessee
				  as shown by the New Mexico state land office records, a thirty (30) day notice
				  of intention to cancel said lease, specifying the default for which the lease
				  is subject to cancellation. Thirty (30) days after such mailing, the
				  commissioner may enter cancellation unless the lessee shall have sooner
				  remedied the default to the satisfaction of the commissioner.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.17 - RESERVATION OF RIGHT TO PURCHASE PRODUCTION

Current through Register Vol. 35, No. 13, July 16, 2024
The commissioner reserves a continuing option to purchase at
				  any time, and from time to time, at the market price prevailing in the area on
				  the date of purchase, all or part of the minerals that may be produced from the
				  lands embraced in all leases issued on or after June 11, 1973. The commissioner
				  may waive this reservation by following the statutory procedure set out in
				  Section
				  19-14-2
				  NMSA 1978.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 4 - RELATING TO LEASING OF STATE LANDS FOR SODIUM CHLORIDE OR COMMON SALT › Section 19.2.4.18 - RESERVED

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Commissioner of Public Lands, New Mexico State Land Office,
				  310 Old Santa Fe Trail, Santa Fe, New Mexico 87501
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
Current and future lessees of state trust
				  lands.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
NMSA sections 1978
				  19-1-23
				  and
				  19-8-12.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.4 - DURATION

Current through Register Vol. 35, No. 13, July 16, 2024
Permanent.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
May 14, 1999, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
To provide the general terms and conditions for the mining of
				  caliche, gypsum, clay, sand, gravel, stone, shale, perlite, volcanic deposits
				  and borrow dirt on trust lands. Mining for caliche may be by short-term permit
				  or long-term lease.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
"
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.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.8 - LANDS AND MINERALS SUBJECT TO LEASE OR PERMIT

Current through Register Vol. 35, No. 13, July 16, 2024
A. Leases may be issued for the extraction of
				caliche, gypsum, clay, sand, gravel, stone, shale, perlite, volcanic deposits,
				and borrow dirt only for those lands shown to be open for leasing of that
				mineral by the tract books of the state land office.
B. The commissioner may issue permits, which
				are expected to last no more than fifteen (15) days, for removal of caliche on
				lands with existing pit sites ("community pit") and for the removal of other
				minerals listed in this Rule.
C. An
				oil and gas lessee may use caliche necessarily disturbed from acreage under the
				oil and gas lease only pursuant to 19.2.5.11 NMAC or may obtain a lease for
				caliche.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.9 - LEASES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Application to
				lease.
(1) Applications for lease shall be
				submitted in duplicate upon forms prescribed by the commissioner and shall
				contain the following:
(a) a nonrefundable
				application fee in the amount set forth in the schedule of fees;
(b) a legal description of the location of
				the lands to be leased;
(c) an
				approximation of the amount of material to be removed during the term of the
				lease;
(d) the necessary
				surety;
(e) the required rental
				payment as set forth in the rent schedule;
(f) a signed and completed environmental
				questionnaire; and
(g) a plat
				(prepared by the applicant or designated agents) which is drawn to scale
				showing the location of the area of the pit site or the area to be mined, if
				requested by the commissioner.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.10 - PERMITS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Application for
				community caliche pit permit.
(1) Application
				for community caliche pit permits may be obtained either by directly contacting
				the oil, gas and minerals division of the state land office in Santa Fe or by
				filing an application with the Hobbs field office for sites in Roosevelt,
				Chaves, Eddy, and Lea counties. All payments made at the Hobbs field office
				shall be by check or money order, including application and permit fees,
				purchase payment, rentals and sureties.
(2) Each application for a community caliche
				pit permit must contain the following:
(a) a
				nonrefundable application fee set forth in the schedule of fees;
(b) a legal description of the location of
				the land to be mined or the pit site number (if known);
(c) the necessary surety required by
				Paragraph (2) of Subsection B of
				19.2.5.12
				NMAC; and
(d) either an advance
				payment or performance bond, as follows:
(i)
				advance payment of ten percent of market value, as determined by the
				commissioner, if the total amount due under Subsection C of 19.2.5.10 NMAC will
				exceed two thousand dollars ($2,000.00) with the remaining amount due upon
				completion of the project; or
(ii)
				a performance bond in the amount of two thousand dollars ($2,000.00);
(e) once the application is
				completed and the availability of the pit site is confirmed, the permit shall
				be issued by the Hobbs field office or by the Santa Fe office; the permit must
				be in the possession of the permittee at all times at the pit site location and
				while the extractions are taking place or the permittee may be subject to
				payment of double the amount due.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.11 - USE OF NECESSARILY DISTURBED CALICHE FROM OIL AND GAS LEASE ACREAGE

Current through Register Vol. 35, No. 13, July 16, 2024
The commissioner shall make no charge for caliche necessarily
				  moved within the roadbed or within the perimeter of a specific well pad while
				  in the process of developing oil and natural gas under a state oil and gas
				  lease, subject to the following conditions:
A. Only caliche derived from the cellar and
				reserve pit or cut and fill, which is necessarily disturbed in the process of
				building an access road and/or that oil and gas well location, may be used
				without charge.
B. Caliche
				necessarily disturbed during construction must remain within the boundaries of
				the oil and gas lease. If excess caliche exists from a necessary disturbance,
				that caliche may only be moved from that location to another well site within
				the lease once an operator or lessee of record obtains a permit and compensates
				the commissioner pursuant to the terms of a community caliche pit
				permit.
C. Only caliche excavated
				during cut and fill construction of a well pad or roads built to 19.2.20 NMAC
				standards will be considered necessarily disturbed.
New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION › Part 5 - RELATING TO LEASES AND PERMITS FOR CALICHE, GYPSUM, CLAY, SAND, GRAVEL, STONE, SHALE, PERLITE, VOLCANIC DEPOSITS, AND BORROW DIRT › Section 19.2.5.12 - GENERAL TERMS FOR ALL LEASES AND PERMITS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Performance reports, reclamation and
				inspection for leases, community caliche pit and other mineral permits.
(1) Upon termination of a lease or permit,
				the lessee or permittee shall submit a final report, on the forms prescribed by
				the commissioner, which shall specify the amount produced under the lease or
				permit and other information on the operations required by the commissioner.
				These forms shall be returned to the commissioner along with the final purchase
				payment.
(2) For areas disturbed by
				mineral operations, reclamation will be required; however, the commissioner may
				waive such requirements if it is determined to be in the best interest of the
				trust to keep the pit open.
(3) The
				records, books of account and operations pertaining to mining, extraction,
				transportation, production and sales of minerals taken from leased and
				permitted lands shall be open and available for inspection or field audit by
				the commissioner or the commissioner's authorized agents at all reasonable
				times.
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 19.2.6.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Commissioner of Public Lands, New Mexico State Land Office,
				  310 Old Santa Fe Trail, P. 0. Box 1148, Santa Fe, New Mexico 87501, Phone:
				  (505) 827-5713
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 19.2.6.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This Rule pertains to all coal resources on those lands held
				  in trust by the commissioner of public lands under the terms of the Enabling
				  Act and subsequent legislation (trust lands). This Rule governs lessees of such
				  trust lands entered into subsequent to the date of this Rule.
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 19.2.6.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
The commissioner's authority to manage the trust lands is
				  found in N.M., Const. art. XIII, and in Section
				  19-1-1
				  NMSA 1978. The authority to promulgate this Rule is found in Section
				  19-1-2
				  NMSA 1978.
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 19.2.6.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
August 23, 1989, unless a later date is cited at the end of
				  a section.
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 19.2.6.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of 19.2.6 NMAC is to provide for the orderly
				  and lawful administration, and the appropriate development of coal resources on
				  trust lands by implementing House Bill 433 of the First Session of the
				  Thirty-Ninth Legislature (Laws 1989, Chapter 200) and to specify, by
				  regulation, provisions to be included in all coal leases issued by the
				  commissioner of public lands after the effective date of this
				  Rule.
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 19.2.6.8 - LANDS SUBJECT TO LEASE-COMPETITIVE BID

Current through Register Vol. 35, No. 13, July 16, 2024
Coal mining leases may be issued upon acreage shown to be
				  open upon the New Mexico state land office tract books. Leases shall be issued
				  only to the highest bidder either by sealed bid or at public auction; provided,
				  however, the commissioner may in the commissioner's discretion withhold any
				  tract from leasing and may reject all bids offered for any tract, if the
				  commissioner determines that withholding or rejection is in the best interests
				  of the trust.
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 19.2.6.9 - APPLICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Applications for coal leases shall be made in ink or
				  typewritten, in duplicate, upon forms to be prescribed by the commissioner. The
				  application shall be acknowledged and shall be accompanied by a minimum initial
				  charge of five hundred dollars ($500.00) or the first (1st) year rental,
				  whichever is greater, plus a nonrefundable application fee as set forth in the
				  schedule of fees.
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 19.2.6.10 - NOTICE OF SALE

Current through Register Vol. 35, No. 13, July 16, 2024
On or before twenty (20) days prior to the date of any coal
				  lease sale, notice of the sale shall be posted in a conspicuous place in the
				  New Mexico state land office in Santa Fe specifying the place, date, and hour
				  of sale and containing a description of the lands to be offered for lease, with
				  a statement of the minimum bid which will be accepted and whether the lands
				  will be offered by sealed bid or by public auction. In addition, the notice
				  shall be mailed by regular mail to all persons requesting notice of coal lease
				  sales.
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 19.2.6.11 - ACCEPTANCE OF BIDS

Current through Register Vol. 35, No. 13, July 16, 2024
Up to the hour set for such sale, the commissioner will
				  receive sealed bids for a coal lease upon any tract of land described in the
				  posted notice. All sealed bids submitted will be opened at the hour mentioned
				  in the notice and, if the tract is designated in the notice of sale as being
				  offered for sealed bid, then the lease will be awarded to the highest and best
				  sealed bid. If the tract is designated in the notice of sale as being offered
				  for sale at public auction, then any sealed bid received will be considered as
				  the first (1st) oral bid for the subject
				  tract.
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 19.2.6.12 - TIE BIDS

Current through Register Vol. 35, No. 13, July 16, 2024
When two or more sealed highest and best bids received for
				  the same tract of land are equal and if such highest and best bidders are
				  present and cannot agree, by stipulation in writing, on how the tract shall be
				  awarded, the commissioner or the commissioner's designee shall call such equal
				  highest and best bidders before the commissioner on the same day the bids are
				  opened, and again offer such tract at auction to such bidders only, and grant
				  such lease to the highest and best bidder. If such bidders are not present when
				  the bids are opened, then the commissioner will notify the bidders to submit
				  sealed proposals within 10 days next following the date of the
				  sale.
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 19.2.6.13 - LIMITATIONS TO NOT MORE THAN TWO (2) PERSONS OR LEGAL ENTITIES - WAIVER

Current through Register Vol. 35, No. 13, July 16, 2024
As a matter of administration and without affecting property
				  rights in coal leases, whenever more than two (2) persons or legal entities
				  apply for the issuance of a coal lease, the commissioner shall grant the lease
				  in the names of no more than two (2) persons acting as attorneys-in-fact for
				  all potential interest owners. In the case of a trust, the trust must be
				  express and a copy of the creating document filed with the commissioner. If
				  more than two (2) trustees are named, a lease shall be granted in the names of
				  no more than two (2) trustees acting as attorneys-in-fact for all trustees. The
				  limitations in this Rule may be waived by the commissioner for good
				  cause.
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 19.2.6.14 - TERM OF LEASE

Current through Register Vol. 35, No. 13, July 16, 2024
State coal leases shall be issued for the following
				  terms:
A. A primary of five (5)
				years;
B. If, at the end of the
				primary term, the lessee has submitted a mine plan, which is not subsequently
				disapproved by the commissioner within three (3) months after submission, and
				the lessee has either incorporated the leased land with adjacent land (if
				necessary) into a logical mining unit or has shown to the satisfaction of the
				commissioner that adjacent land, needed to form the logical mining unit, 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 (5) years; and
C. If, at the end of the secondary term, the
				lessee is producing coal at an average annual rate of either one percent (1%)
				of the estimated recoverable reserves from the leased lands or one percent (1%)
				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 (1%)
				production is maintained. Provided, that, for purposes of determining if the
				one percent (1%) annual production has been maintained during any year after
				the end of the second (2nd) year following the
				beginning of production, the annual production, averaged over the previous
				three (3) years, shall be used. For purposes of this provision, annual rates of
				production shall be measured from lease anniversary date to lease anniversary
				date.