New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 7 - MINING - GENERAL PROVISIONS › Part 3 - CONSOLIDATION OF MINING PROPERTIES › Section 19.7.3.9 - KERR-MCGEE ORDER OF CONSOLIDATION

Current through Register Vol. 35, No. 13, July 16, 2024
In the matter of the application of Kerr-McGee Corporation
				  for consolidation of all small tracts or interests in Section 19, Township 14
				  North, Range 9 West, New Mexico Principal Meridian, McKinley County, New
				  Mexico, pursuant to Chapter 33, New Mexico Laws of 1967.
A. This cause came on for hearing at 9:30
				a.m. on March 19, 1968, at Santa Fe, New Mexico, upon the Application of
				Kerr-McGee Corporation (hereinafter called "Kerr-McGee") praying for an order
				of consolidation of all small tracts or interests in Section 19, Township 14
				North, Range 9 West, N.M.P.M., McKinley County, New Mexico (hereinafter called
				"Section 19"), pursuant to Chapter 33 of the New Mexico Laws of 1967.
B. After an examination of the files in said
				cause, the undersigned finds said Application was filed with the undersigned on
				the 19th day of December, 1967, and that on said date the undersigned set the
				Application for hearing at 9:30 a.m. on March 19, 1968, at Santa Fe, New
				Mexico; that due notice of this hearing has been given by publication in the
				Gallup Independent on February 7, 14, 21, and 28, 1968, as shown by affidavit
				of publication filed herein, and by mailing, as shown by affidavit of mailing
				filed herein.
C. The undersigned,
				having heard and considered the evidence concerning the said application, and
				being fully advised in the premises, Finds:
(1) The state geologist of the state of New
				Mexico (appointed pursuant to Section
				65-3-1 New
				Mexico Statutes Annotated, 1953 Compilation) has jurisdiction of this cause and
				the subject matter thereof.
(2)
				Kerr-McGee is a corporation organized under the laws of the state of Delaware,
				qualified to do business in the state of New Mexico, and is presently engaged
				in the exploration, development, mining and processing of ore, and the
				production and marketing of uranium in concentrate, in the Ambrosia lake area
				of McKinley county, New Mexico.
(3)
				Section 19, containing 645.50 acres, is comprised wholly of contiguous small
				tracts, each containing two acres or less. Such small tracts were created by
				the subdivision of Section 19 by a plat of subdivision filed with the county
				clerk of McKinley county, New Mexico, on November 30, 1933, as Reception No.
				2162, and recorded in Book 6 of Miscellaneous Records, page 586.
(4) Kerr-McGee has made extensive, diligent
				and good faith effort to identify and locate every person owning an interest in
				each small tract in Section 19, and, as to each owner who has been identified
				and located, has made extensive, diligent and good faith effort to purchase,
				lease or otherwise acquire mining rights covering such interest for the purpose
				of exploring, developing, mining, producing, marketing and/or processing
				uranium and uranium ore. As a result of these efforts, Kerr-McGee presently
				holds mining rights covering in excess of 85 percent of the entire mineral
				estate in Section 19. Despite the efforts that have been made by Kerr-McGee to
				identify, locate and acquire mining rights from all owners of interest in
				Section 19, there remain owners of small tracts or interests therein whose
				addresses are unknown, or from whom Kerr-McGee has not acquired mining
				rights.
(5) The lack of exploration
				and development on Section 19 up to the present time makes it impossible to
				ascertain that all or any portion of Section 19, or any small tract therein,
				definitely contains uranium ore on all sides of Section 19, and other geologic
				evidence, indicates that each small tract in Section 19 probably will be
				productive of uranium ore. The entirety of Section 19 therefore composes an
				appropriate unit for consolidation.
(6) Kerr-McGee proposes to conduct
				exploratory operations on, and to develop, mine, produce, save, remove, market
				or process uranium ore and other associated minerals mined therewith from
				Section 19. The proposed operations are feasible and in accord with good
				industry practices.
(7) The
				exploration and mineral development of the small tracts in Section 19 on a
				separate and individual basis would be uneconomic and impractical, and the
				consolidation of Section 19 is needed to induce mineral exploration and
				potential mineral development in order to avoid waste of natural resources and
				to protect the correlative rights of all owners in Section 19.
(8) Due to the diversity of ownership of the
				small tracts in Section 19, and due to the inability of Kerr-McGee to obtain
				mining rights from some of the owners, and in order to insure the development
				of Section 19, all small tracts or interests in said Section 19 should be
				ordered consolidated in the manner provided by Chapter 33, New Mexico Laws of
				1967.