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Form a Business

Sale and Lease of Lands

NMSA 1978 ch. 19, art. 7
in effect

NMSA 1978, § 19-7-1 [Application for lease or purchase; appraisement.]

19-7-1. [Application for lease or purchase; appraisement.] Applications to lease or purchase state lands shall be made under oath, and applicants to lease shall, at their own expense, procure appraisements thereof to be made under oath by some disinterested and creditable person or persons familiar therewith. All statements contained in such appraisements, except as to the true value of the land appraised, must be based upon personal knowledge and not upon information and belief. No such appraisement shall be conclusive upon the commissioner. Laws 1912, ch. 82, § 17; Code 1915, § 5194; C.S. 1929, § 132-117; 1941 Comp., § 8-801; 1953 Comp., § 7-8-1.

NMSA 1978, § 19-7-2 Formal requirements for applications; state officers and employees prohibited from acting as, or procuring, agents or attorneys

19-7-2. Formal requirements for applications; state officers and employees prohibited from acting as, or procuring, agents or attorneys All applications for the purchase of state lands and all applications for leases, whether for grazing, oil and gas, mining or other purposes, shall be made with ink or with typewriter using a record ribbon, upon forms to be prescribed by the commissioner of public lands. All applications shall be signed by original applicant or his agent or attorneys authorized by written power of attorney, shall be acknowledged before an officer authorized to administer oaths and shall be accompanied by application fees for oil and gas, mining, business leases, grazing leases and other purposes, as appropriate, in amounts set by the commissioner of public lands by regulation. The fees shall be deposited in the state lands maintenance fund. No state officer or employee of the state land office shall act as agent or attorney or procure another to act as agent or attorney for any application, but this act [19-1-23, 19-7-2 to 19-7-6 NMSA 1978] shall not be construed so as to prevent the commissioner of public lands or any employee of the state land office from assisting applicants to make out their applications without pay. Laws 1921, ch. 174, § 1; C.S. 1929, § 111-301; 1941 Comp., § 8-802; Laws 1947, ch. 95, § 1; 1953 Comp., § 7-8-2; Laws 1971, ch. 95, § 1.

NMSA 1978, § 19-7-3 [Numbering and dating applications upon receipt.]

19-7-3. [Numbering and dating applications upon receipt.] All applications shall be stamped immediately upon their receipt by the land office with ink or with some device indicating correctly the date, hour and minute of such receipt, and such applications shall have stamped thereon a serial number in the order of their receipt. Laws 1921, ch. 174, § 2; C.S. 1929, § 111-302; 1941 Comp., § 8-803; 1953 Comp., § 7-8-3.

NMSA 1978, § 19-7-4 [Deposit of funds; rejection of application without deposit.]

19-7-4. [Deposit of funds; rejection of application without deposit.] All applications mentioned in Section One (1) [19-7-2 NMSA 1978] hereof shall be accompanied by the proper fees and moneys as required by law or by the rules and regulations of the land commissioner and the amount of money deposited shall be entered in ink upon said applications; provided, however, that checks not certified shall be deposited in or sent to a bank for collection immediately upon their receipt. All applications not accompanied by the proper deposit shall be immediately stamped "rejected, no deposit," and shall not be deemed proper applications. Minor defects in the wording of said applications shall not be deemed fatal to their validity, but the same may be corrected; provided, however, that the descriptions of land therein set forth shall be substantially correct so that said lands can be identified. All applications rejected for any reason shall have written thereon in ink or with typewriter using a record ribbon the reason for such rejection and the date thereof, and shall be preserved in the files of the office open to public inspection. Laws 1921, ch. 174, § 3; C.S. 1929, § 111-303; 1941 Comp., § 8-804; 1953 Comp., § 7-8-4.

NMSA 1978, § 19-7-5 [Simultaneous applications.]

19-7-5. [Simultaneous applications.] All published or posted rules and regulations of the land office shall prescribe and define what shall constitute simultaneous applications and shall also set forth an equitable method of determining the rights of applicants in such contingency. Laws 1921, ch. 174, § 5; C.S. 1929, § 111-305; 1941 Comp., § 8-805; 1953 Comp., § 7-8-5.

NMSA 1978, § 19-7-6 [Offenses by officers or employees of land office; penalty.]

19-7-6. [Offenses by officers or employees of land office; penalty.] It shall be unlawful for any officers or employe [employee] of the state land office to act as agent or attorney for any applicant for the purchase or leasing of public lands of this state or to wilfully [willfully] withhold or conceal any such application, in order to give any applicant priority or advantage over another, or to receive any money or thing of value as a gift or compensation for aiding, or conniving or conspiring to aid, in procuring priority of application or directly or indirectly to aid or conspire to aid one applicant as against another by any fraudulent means whatever, or to receive any money or thing of value as a gift, compensation or otherwise from any person applying for the lease or purchase of public lands, and upon conviction thereof the offender shall be punished by a fine of not less than one hundred ($100) dollars nor more than one thousand ($1,000) dollars or by imprisonment in the state penitentiary for a term of not less than six months nor more than three years or by both such fine and imprisonment in the discretion of the court. Laws 1921, ch. 174, § 6; C.S. 1929, § 111-306; 1941 Comp., § 8-806; 1953 Comp., § 7-8-6.

NMSA 1978, § 19-7-7 [False swearing in application or appraisement.]

19-7-7. [False swearing in application or appraisement.] Any person or persons applying to lease or purchase state lands, or acting as appraiser or appraisers thereof, who shall knowingly and willfully swear falsely as to any material matter contained in any application to lease or purchase any such lands, or in any appraisement thereof, shall be deemed guilty of perjury, and upon conviction thereof shall be punished by a fine of not more than five hundred dollars [($500)], or by imprisonment for not more than five years, or by both such fine and imprisonment. Laws 1912, ch. 82, § 18; Code 1915, § 5195; C.S. 1929, § 132-118; 1941 Comp., § 8-807; 1953 Comp., § 7-8-7.

NMSA 1978, § 19-7-8 [Cancellation of lease or contract obtained by fraud or mistake; notice to show cause; appeal.]

19-7-8. [Cancellation of lease or contract obtained by fraud or mistake; notice to show cause; appeal.] The commissioner shall have power to cancel any lease, contract or other instrument executed by him which shall have been obtained by fraud or executed through mistake or without authority of law. In such case he shall serve upon the party or parties in interest notice, as prescribed by Section 19-7-50 NMSA 1978 to show cause before him, upon a date to be fixed in such notice, why such instrument shall not be canceled in accordance with the rules and regulations of the state land office. From the decision rendered by the commissioner upon such hearing an appeal shall lie as provided by this chapter in cases of contest. Laws 1912, ch. 82, § 75; Code 1915, § 5253; C.S. 1929, § 132-187; 1941 Comp., § 8-808; 1953 Comp., § 7-8-8.

NMSA 1978, § 19-7-9 Sale and lease of state lands; conveyance for term of years; terms and conditions

19-7-9. Sale and lease of state lands; conveyance for term of years; terms and conditions Any state lands offered for sale by the commissioner may be sold at the commissioner's discretion for cash or upon payment of not less than one-tenth of the purchase price in cash and payment of the balance in amortized installments for any period up to thirty years with interest on the principal balance at a rate to be set by the commissioner in the notice of auction pertaining to the particular sale in advance. Additional payments on the principal may be made at any time, but such payments shall not be effective for credit until the date the next installment is due. The purchase contract shall be upon a form prescribed by the commissioner prior to publication of the notice of auction and shall contain the terms and conditions the commissioner may deem to be in the best interest of the state and consistent with law. Should a purchaser die before completing the contract, the due date of the next installment payment shall, upon written application, be deferred by the commissioner for one year. In addition, the commissioner is authorized to convey for any period of time state lands under the commissioner's jurisdiction having value for commercial development or public use purposes, provided that: A. all of the requirements for the disposition of lands set forth in the constitution of New Mexico and the New Mexico Enabling Act are complied with, including but not limited to those pertaining to appraisal at true value, advertising and public auction; B. the term and nature of the estate to be conveyed is set forth in the public notice of auction pertaining to the particular conveyance; and C. if the conveyance is a business lease for real estate planning or development purposes, then, notwithstanding the term of the lease, it shall only be issued after notice and competitive bid. 1953 Comp., § 7-8-9, enacted by Laws 1971, ch. 93, § 1; 1981, ch. 278, § 1; 1989, ch. 179, § 1; 2009, ch. 219, § 1.

NMSA 1978, § 19-7-9.1 State land office; public notice; public meetings

19-7-9.1. State land office; public notice; public meetings A. Prior to taking final agency action, the commissioner of public lands shall publish notice of and hold a public meeting to receive public comment regarding the following activities: (1) land sales; (2) land exchanges; (3) right-of-way permits for electrical transmission lines in excess of two hundred thirty kilovolts situated on state trust land; and (4) right-of-way permits for oil or gas pipelines in excess of twenty-four inches in diameter and at least ten contiguous miles in length situated on state trust land. B. A notice of a proposed land sale, land exchange or right-of-way permit as set forth in Subsection A of this section shall be published on the state land office website and in a newspaper of general circulation published in Santa Fe and in a newspaper of general circulation published near the general geographic location of the proposed activity. C. The notice required in this section shall contain: (1) a description of the state trust land offered for sale or exchange or on which the right of way is to be located; (2) a summary of the effect or potential effect of the proposed transaction or right of way on surrounding lands; (3) the time, place and location for the public meeting on the sale, exchange or right-of-way permit; and (4) the name of a person to contact at the state land office for additional information on the sale, exchange or right-of-way permit and the subject state trust land. D. The public meeting required pursuant to Subsection A of this section shall be held in the same general geographic location as the proposed activity. E. The requirement for a hearing is waived if public input has been solicited pursuant to another state process or federal law. The commissioner of public lands shall by rule establish the procedures for a hearing held pursuant to this section. F. No provisions of this section shall alter, change, restrict or diminish the rights, powers and duties of the commissioner of public lands in the administration, management, care and control of state trust lands as provided for by the Enabling Act for New Mexico and applicable state statutes. Laws 2019, ch. 115, § 1.

NMSA 1978, § 19-7-10 [Restrictions on deferred payments.]

19-7-10. [Restrictions on deferred payments.] At any time after sale and prior to the expiration of thirty years from the date of the contract, the purchaser or his successor in interest may pay all or any part of the purchase price due on any contract for purchase of state lands, but no payment shall be accepted, other than the first payment, for less than one-thirtieth of ninety-five per centum of the purchase price, nor be effective for credit on any date other than the anniversary of the date of the contract next following the date of tender. Laws 1917, ch. 52, § 2; C.S. 1929, § 132-159; 1941 Comp., § 8-810; 1953 Comp., § 7-8-10.

NMSA 1978, § 19-7-12 [Outstanding contracts may be canceled and new contracts granted; conditions.]

19-7-12. [Outstanding contracts may be canceled and new contracts granted; conditions.] That contracts for the purchase of state lands now outstanding shall, upon application of the holders thereof and payment of a fee of four dollars [($4.00)] for each contract of one section or less, and ten cents [($.10)] for each additional section or fraction thereof, be canceled, and new contracts issued under the provisions of this act [19-7-10, 19-7-12 NMSA 1978], in lieu of such outstanding contracts. Provided, that the provisions of this act shall not be applicable to lands selected for the benefit of the Santa Fe and Grant county railroad bond fund, but such lands shall be sold as provided by Section 19-7-13 [repealed] NMSA 1978, and outstanding contracts for such lands shall not be subject to the provisions of this section. Laws 1917, ch. 52, § 4; C.S. 1929, § 132-161; 1941 Comp., § 8-812; 1953 Comp., § 7-8-12.

NMSA 1978, § 19-7-14 Owner of improvements compensated by purchaser or by subsequent lessee

19-7-14. Owner of improvements compensated by purchaser or by subsequent lessee Whenever any state lands are sold or leased to a person other than the holder of an existing surface lease and upon which lands there are improvements belonging to such lessee or to another person, the purchaser or subsequent lessee, as the case may be, shall pay to the commissioner of public lands for the benefit of the owner of the improvements the value thereof as determined by an appraisal made by the commissioner of public lands. In lieu of such payment, a subsequent purchaser or lessee may file with the commissioner a bill of sale or waiver of payment signed by the owner of the improvements. 1953 Comp., § 7-8-19.1, enacted by Laws 1963, ch. 237, § 1.

NMSA 1978, § 19-7-15 Definition of improvements

19-7-15. Definition of improvements The word "improvements" herein shall include appurtenant water rights and all improvements placed upon the land in compliance with Section 19-7-51 NMSA 1978, and shall include those appurtenant water rights and improvements placed upon the land prior to March 1, 1955, whether or not the value be in excess of the amount prescribed by Section 19-7-51 NMSA 1978. Appurtenant water rights and improvements placed upon the land after March 1, 1955 but prior to March 1, 1975 may be included by the commissioner in accordance with rules and regulations adopted by the commissioner. 1953 Comp., § 7-8-19.2, enacted by Laws 1963, ch. 237, § 2; 1975, ch. 111, § 1.

NMSA 1978, § 19-7-16 Cost of appraisal

19-7-16. Cost of appraisal Reasonable costs and expenses of appraising improvements on state lands and other costs of sale shall be paid by the purchaser or subsequent lessee. 1953 Comp., § 7-8-19.3, enacted by Laws 1963, ch. 237, § 3.

NMSA 1978, § 19-7-17 Appeal

19-7-17. Appeal A person in interest aggrieved by the decision of the commissioner in fixing the value of improvements or in collecting costs may appeal to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. 1953 Comp., § 7-8-19.4, enacted by Laws 1963, ch. 237, § 4; 1998, ch. 55, § 27; 1999, ch. 265, § 28.

NMSA 1978, § 19-7-18 Bond required

19-7-18. Bond required No contract, patent or lease shall be issued until the value of improvements shall be paid unless a good and sufficient corporate or cash bond is filed with the commissioner to insure [ensure] payment upon final determination of value. 1953 Comp., § 7-8-19.5, enacted by Laws 1963, ch. 237, § 5.

NMSA 1978, § 19-7-19 [Failure to comply with contract; forfeiture at option of commissioner.]

19-7-19. [Failure to comply with contract; forfeiture at option of commissioner.] Failure by a purchaser of state lands to comply with the terms and conditions of his contract of purchase shall, at the option of the commissioner, work a forfeiture of such contract after notice as prescribed by Section 19-7-50 NMSA 1978. In case of forfeiture all monies theretofore paid on any such contract shall remain the property of the state. Laws 1912, ch. 82, § 60; Code 1915, § 5238; C.S. 1929, § 132-163; 1941 Comp., § 8-820; 1953 Comp., § 7-8-20.

NMSA 1978, § 19-7-20 [Assignment of contracts not in default; certified copy to be filed with commissioner.]

19-7-20. [Assignment of contracts not in default; certified copy to be filed with commissioner.] Any purchaser of state lands under deferred payment contract, not in default as to any payment, may assign all right, title and interest under any such contract; provided, certified copy of the assignment shall be filed with the commissioner before same shall become effective. Laws 1912, ch. 82, § 61; Code 1915, § 5239; C.S. 1929, § 132-164; 1941 Comp., § 8-821; 1953 Comp., § 7-8-21.

NMSA 1978, § 19-7-21 [Townsite lands; subdivision.]

19-7-21. [Townsite lands; subdivision.] Whenever any of the state lands shall be valuable or desirable for townsite purposes, the commissioner may cause or permit the same to be subdivided into suitable tracts, or surveyed into lots and blocks, with the usual reservations for streets, alleys and public purposes, and shall cause appraisement of such lands to be made and prescribe rules and regulations for the use and occupancy thereof, and may lease or sell such lots, blocks and subdivisions in accordance with law. Laws 1912, ch. 82, § 62; Code 1915, § 5240; C.S. 1929, § 132-174; 1941 Comp., § 8-822; 1953 Comp., § 7-8-22.

NMSA 1978, § 19-7-22 [Cemetery or school site lands; subdivision and sale.]

19-7-22. [Cemetery or school site lands; subdivision and sale.] Should any state lands be valuable or desirable for cemetery or school site purposes, the commissioner may subdivide and sell such lands for such purposes in accordance with law. Laws 1912, ch. 82, § 63; Code 1915, § 5241; C.S. 1929, § 132-175; 1941 Comp., § 8-823; 1953 Comp., § 7-8-23.

NMSA 1978, § 19-7-23 [School section used for cemeteries; not to be sold.]

19-7-23. [School section used for cemeteries; not to be sold.] Where a school section of the state or any part thereof has been used for cemeteries or cemetery purposes prior to January 6, 1912, that part of said section, not exceeding one hundred and sixty (160) acres may be set aside by the commissioner of public lands and forever reserved for such cemetery purposes and no sale thereof shall be made by the commissioner of public lands. Laws 1913, ch. 30, § 1; Code 1915, § 561; C.S. 1929, § 20-102; 1941 Comp., § 8-824; 1953 Comp., § 7-8-24.

NMSA 1978, § 19-7-24 [Management of cemeteries on school sections; sale of lots; cemetery association.]

19-7-24. [Management of cemeteries on school sections; sale of lots; cemetery association.] Where a school section or any part thereof is used for cemetery purposes under the provisions of the preceding section [19-7-23 NMSA 1978], the management and control thereof is hereby given to the governing body of the city, town or village now using the same for such purpose, but said governing body shall not be authorized to sell any portion of such lands, except for cemetery lots or other purposes directly connected with cemetery purposes. That sales of said lands for cemetery purposes shall be made by such governing body and the money received from the sale thereof shall be converted into a fund which shall be used only for the care and maintenance of said cemetery. Said cemetery may be managed and controlled by a cemetery association created or authorized by the governing body of such city, town or village. Laws 1913, ch. 30, § 2; Code 1915, § 562; C.S. 1929, § 20-103; 1941 Comp., § 8-825; 1953 Comp., § 7-8-25.

NMSA 1978, § 19-7-25 [Reservation from sale of saline, mineral and oil and gas lands; leasing authorized.]

19-7-25. [Reservation from sale of saline, mineral and oil and gas lands; leasing authorized.] State saline lands and state lands known to contain valuable minerals, petroleum or natural gas in paying quantities, and sections of state lands adjoining lands upon which there are producing mines, oil wells or gas wells, or which are known to contain valuable minerals, petroleum or natural gas in paying quantities, shall not be sold, but may be leased as provided in this chapter. Laws 1912, ch. 82, § 40a; Code 1915, § 5218; C.S. 1929, § 132-141; 1941 Comp., § 8-826; 1953 Comp., § 7-8-26.

NMSA 1978, § 19-7-26 State irrigable lands; sale; conveyance to United States

19-7-26. State irrigable lands; sale; conveyance to United States No lands belonging to the state, within the areas to be irrigated from works constructed or controlled by the United States, or its duly authorized agencies, shall hereafter be sold except in conformity with the classification of farm units by the United States, and the title to such lands shall not pass from the state until the applicant therefor shall have fully complied with the provisions of the laws of the United States and the regulations thereunder concerning the acquisition of the right to use water from such works and shall produce the evidence thereof duly issued. After the withdrawal of lands by the United States for any irrigation project, no application for the purchase of state lands within the limits of such withdrawal shall be accepted, except upon the conditions prescribed in this section. Any state lands needed by the United States for irrigation works shall be conveyed to the United States in consideration of the conveying by the United States, from its public lands or domain, lands of equal quality or value. Laws 1907, ch. 49, § 55; Code 1915, § 5713; C.S. 1929, § 151-166; Laws 1941, ch. 126, § 22; 1941 Comp., § 8-827; 1953 Comp., § 7-8-27.

NMSA 1978, § 19-7-27 [Lands subject to lease.]

19-7-27. [Lands subject to lease.] All lands owned by the state of New Mexico shall be subject to lease as provided by law; provided, however, that the commissioner of public lands must give first preference in all cases to any department of the state which has been authorized by the legislature to acquire lands for the purpose of erecting thereon buildings for state use. Laws 1912, ch. 82, § 12; Code 1915, § 5189; C.S. 1929, § 132-112; 1941 Comp., § 8-828; Laws 1951, ch. 108, § 1; 1953 Comp., § 7-8-28.

NMSA 1978, § 19-7-28 [Grazing and agricultural leases; reservation of mineral deposits, products and easements.]

19-7-28. [Grazing and agricultural leases; reservation of mineral deposits, products and easements.] In all leases of state lands for grazing or agricultural purposes there shall be inserted a clause reserving the right to execute leases for mining purposes thereon, or for the extraction of petroleum, natural gas, salt or other deposit therefrom, and the right to sell or dispose of any other natural surface products of such lands other than grazing, agricultural or horticultural products; also a clause reserving the right to grant rights-of-way and easements for any of the purposes mentioned in Section 19-7-57 NMSA 1978. Laws 1912, ch. 82, § 55; Code 1915, § 5233; C.S. 1929, § 132-156; 1941 Comp., § 8-829; 1953 Comp., § 7-8-29.

NMSA 1978, § 19-7-29 [Grazing leases; rental rates; annual rental; appraisal of land.]

19-7-29. [Grazing leases; rental rates; annual rental; appraisal of land.] The commissioner of public lands of the state of New Mexico shall determine the annual rental to be charged for grazing lands belonging to the state, and such rentals shall be based upon the classification and valuation herein provided for and upon the appraisal required by the act of congress granting the lands to the state. The commissioner shall, as soon as practicable, classify and determine the value of all grazing lands belonging to the state, and in such determination, shall take into consideration the carrying capacity of such lands; that is, the number of livestock such lands will reasonably carry per annum without injury to such lands. In determining such carrying capacity, the commissioner may take into consideration the determination by the grazing service of the bureau of land management, by the soil conservation service, by the forest service or by any other federal agency, of the carrying capacity of similar lands, and may also take into consideration the carrying capacity of similar patented lands as determined by the New Mexico state tax commission [property tax division of the taxation and revenue department] or other taxing authorities. In determining such capacity, five sheep shall be considered the equivalent of one cow, and the commissioner may determine such carrying capacity by counties or some natural division instead of by individual sections or leases. All appraisals of state grazing land hereafter made shall set out the opinion of the appraiser as to the average carrying capacity of the land appraised. The commissioner shall at all times take into consideration economic conditions in arriving at the value of grazing lands for leasing purposes, and shall have the power, in renewing any lease, to reduce the minimum rentals hereinafter set out by not more than thirty-three and one-third percent, if severe drouth or economic conditions, in his judgment, require such reduction. All leases for grazing purposes entered into for any period beginning after the effective date of this act [section] shall carry a minimum annual rental per acre as follows: Number of cows the land will carry per section Annual rental 5 head and less 3 cents per acre 6 head 4 cents per acre 7 head 5 cents per acre 8 head 6 cents per acre 9 head 7 cents per acre 10 head 8 cents per acre 11 head 9 cents per acre 12 head 10 cents per acre 13 head 11 cents per acre 14 head 12 cents per acre 15 head 13 cents per acre 16 head 14 cents per acre 17 head 15 cents per acre 18 head 16 cents per acre 19 head 17 cents per acre 20 head 18 cents per acre 21 head 19 cents per acre 22 head 20 cents per acre 23 head 21 cents per acre 24 head and over 22 cents per acre Any state grazing leases which, at the time of the passage and approval of this act [section], are subject to any civil action by the government of the United States or are subject to any supplemental agreement with the United States government in any land acquisition program by the United States in the establishment of military reservations within this state, shall not be subject to the minimum rates established by this act [section], but shall be at the rate established and ordered by the commissioner of public lands. Laws 1912, ch. 82, § 13; Code 1915, § 5190; Laws 1915, ch. 73, § 2; 1921, ch. 14, § 1; C.S. 1929, § 132-113; 1941 Comp., § 8-830; Laws 1951, ch. 123, § [1]; 1953 Comp., § 7-8-30; Laws 1961, ch. 38, § 1.

NMSA 1978, § 19-7-30 Grazing or agricultural leases; maximum term; method of payment

19-7-30. Grazing or agricultural leases; maximum term; method of payment All leases for grazing or agricultural purposes shall be for a term of not exceeding five years except as provided in this chapter. All rents are payable cash in advance or, if the lessee so elects, may be divided into five equal annual payments as follows: one-fifth in advance, the remainder to be evidenced by four equal joint and several promissory notes of even date with the lease, signed by the lessee and by two other persons satisfactory to the commissioner, due in one, two, three and four years respectively, but the commissioner may by regulation provide for waiving the promissory note requirement and may also by regulation provide for acceptance of a surety bond in lieu of promissory notes. All leases shall terminate on the thirtieth of September. Laws 1912, ch. 82, § 14; Code 1915, § 5191; C.S. 1929, § 132-114; 1941 Comp., § 8-831; 1953 Comp., § 7-8-31; Laws 1971, ch. 90, § 1.

NMSA 1978, § 19-7-31 [Power of commissioner to reject grazing lease application by a previous lessee when land is located within Taylor grazing allotment of another.]

19-7-31. [Power of commissioner to reject grazing lease application by a previous lessee when land is located within Taylor grazing allotment of another.] At the expiration of any lease issued for grazing purposes only, the commissioner of public lands in his discretion and after investigation of facts may withhold approval of application to lease any land filed by a previous lessee, which land is located within the duly permitted individual Taylor grazing allotment of another where the land is not being used by prior lessee; provided, however, the holder of such grazing allotment has made timely and proper application to lease such land. 1941 Comp., § 8-831a, enacted by Laws 1947, ch. 177, § 1; 1953 Comp., § 7-8-32.

NMSA 1978, § 19-7-32 [Open and unleased land within Taylor grazing allotment of another.]

19-7-32. [Open and unleased land within Taylor grazing allotment of another.] The commissioner of public lands in his discretion and after investigation of the facts may withhold approval of application to lease any land which at any time is open and unleased for grazing purposes, whether now owned, or hereafter acquired, by the state of New Mexico, which land is located within the duly permitted individual Taylor grazing allotment of another; provided, however, that the holder of such allotment permit, after reasonable notice, shall make application therefor. 1941 Comp., § 8-831b, enacted by Laws 1947, ch. 177, § 2; 1953 Comp., § 7-8-33.

NMSA 1978, § 19-7-33 [Right of relinquishment not restricted.]

19-7-33. [Right of relinquishment not restricted.] Nothing herein [19-7-31 to 19-7-33 NMSA 1978] shall be construed as restricting the right of relinquishment. 1941 Comp., § 8-831c, enacted by Laws 1947, ch. 177, § 3; 1953 Comp., § 7-8-34.

NMSA 1978, § 19-7-34 [Rent lien; attachment; forfeiture.]

19-7-34. [Rent lien; attachment; forfeiture.] Rentals shall constitute a first lien on any and all improvements and crops upon the land leased, prior and superior to any other lien or encumbrance whatsoever whether created with or without notice of the lien for rental due or to become due. When any rental is due and unpaid the commissioner may forthwith attach, without attachment bond, all improvements and crops upon the land leased, or so much thereof as may be sufficient to pay such rental together with all costs necessarily incurred in the enforcement of such lien, and the enforcement of such lien shall work a forfeiture of such lease. The failure of any lessee of state land to pay the rental therefor when due or to furnish additional security for any deferred payment, when required by the commissioner, shall be sufficient cause for declaring any such lease forfeited. Laws 1912, ch. 82, § 16; Code 1915, § 5193; C.S. 1929, § 132-116; 1941 Comp., § 8-833; 1953 Comp., § 7-8-36.

NMSA 1978, § 19-7-35 [Cancellation or forfeiture of agricultural or grazing leases restricted; sale of leased land.]

19-7-35. [Cancellation or forfeiture of agricultural or grazing leases restricted; sale of leased land.] That no lease of state lands for agricultural or grazing purposes shall be canceled or forfeited by the commissioner of public lands, before the expiration of the full term thereof, without the written consent of the lessee, except for fraud, collusion, mutual mistake or default of the lessee, and the right to cancel or forfeit such lease without cause, based on any agreement or consent contained in such lease is hereby waived. All sales of state lands embraced within such lease shall be made subject to all the terms and provisions thereof, except the right of the lessee to a renewal at the end of the term. Provided that nothing in this act [section] shall prevent the commissioner from granting right-of-way [rights-of-way] and easements over, across or upon the land embraced in the lease for public highways, railroads, tramways, telegraph, telephone and power lines, irrigation works, mining, logging and business leases. Laws 1935, ch. 130, § 1; 1941 Comp., § 8-834; 1953 Comp., § 7-8-37.

NMSA 1978, § 19-7-36 [Assignment or relinquishment of lease; consent of commissioner required.]

19-7-36. [Assignment or relinquishment of lease; consent of commissioner required.] With the consent of the commissioner any lessee may assign all his right, title and interest in his lease, or relinquish the same to the state, whereupon his lease shall be canceled. Any assignment or relinquishment without the written consent of the commissioner shall be null and void. Laws 1912, ch. 82, § 19; Code 1915, § 5196; Laws 1915, ch. 73, § 3; C.S. 1929, § 132-119; 1941 Comp., § 8-835; 1953 Comp., § 7-8-38.

NMSA 1978, § 19-7-37 Assignment of grazing or agricultural lease or purchase contract as collateral; approval of commissioner; effect

19-7-37. Assignment of grazing or agricultural lease or purchase contract as collateral; approval of commissioner; effect Any lease of state lands for grazing or agricultural purposes and any contract for the purchase of state lands may be assigned as collateral security, with the approval of the commissioner of public lands; and after such approval such assignment shall have the effect of giving the assignee a lien on any lease or purchase contract so assigned, or any renewal or renewals thereof by assignor and all rights of renewal of any such lease, together with the improvements thereon, to secure the indebtedness specified in such assignment and any further advances or expenditures authorized to be made by the assignee by the terms of such assignment; and after any such assignment shall be approved by the commissioner of public lands, and while same is in force and effect as hereinafter provided, no relinquishment or assignment of a lease or transfer of a state purchase contract, or portions thereof, embraced in such assignment shall be accepted or approved for filing respectively by the commissioner of public lands, unless the holder of such collateral assignment shall release in writing any collateral assignment held by him covering such lease or contract being transferred, assigned or relinquished or, in case of assignment only, unless the assignee agrees in writing to assume or take the lease or contract subject to the rights of any collateral assignee. The preference right of renewal of any lease held under collateral assignment shall be vested in the holder of such assignment, subject only to the right of renewal of the lessee at the date of expiration of said lease, and to all the provisions of law now in effect or hereinafter enacted; provided, however, that any renewal lease issued to subsequent collateral assignees, under the preference right of renewal provided for herein, shall be subject to the rights of the holders of the prior assignments of record in the state land office. Laws 1933, ch. 126, § 1; 1937, ch. 51, § 1; 1939, ch. 48, § 1; 1953, ch. 69, § 3; 1941 Comp., § 8-836; 1953 Comp., § 7-8-39; Laws 1971, ch. 94, § 1.

NMSA 1978, § 19-7-38 [Presenting assignment to commissioner; indexing; filing; public inspection.]

19-7-38. [Presenting assignment to commissioner; indexing; filing; public inspection.] All such assignments shall be presented to the commissioner of public lands for his approval, and, after approval by the commissioner, shall be indexed in a book kept for that purpose and filed in a suitable place provided by the commissioner. The commissioner is authorized and directed to provide and install, as soon as possible after the passage of this act [19-7-37 to 19-7-45 NMSA 1978], a full and complete system for the indexing and filing in his office of such assignments, as is necessary for carrying out the provisions of this act, and such indexes and files shall be open for inspection by the public during business hours of the office of the commissioner of public lands, under such reasonable rules and regulations as may be prescribed by the commissioner. Laws 1933, ch. 126, § 2; 1939, ch. 48, § 2; 1941 Comp., § 8-837; 1953 Comp., § 7-8-40.

NMSA 1978, § 19-7-39 [Form of assignment; contents; acknowledgment; constructive notice; recording waived.]

19-7-39. [Form of assignment; contents; acknowledgment; constructive notice; recording waived.] Such assignments shall be executed on forms to be prescribed by the commissioner of public lands, which forms shall specify the number of the lease or purchase contract assigned, the description of the land embraced in such lease or purchase contract, the date of the expiration of the lease assigned, the name of the assignee and the amount of the indebtedness which the assignment is given to secure, and may provide for further advances by the assignee up to a specific amount. Such assignments shall be acknowledged by the assignor in the manner provided by law for the acknowledgment of conveyances affecting real estate, and, when filed in the office of the commissioner of public lands and approved by him, shall be constructive notice to all persons of the contents of such assignments from the date of such approval, and it shall not be necessary to record such instruments in the county where the lands affected thereby are located. Provided, that when more than one lease or purchase contract is assigned to secure the same indebtedness, any and all such leases or purchase contracts shall be assigned by separate instrument. Laws 1933, ch. 126, § 3; 1935, ch. 47, § 1; 1937, ch. 51, § 2; 1941 Comp., § 8-838; 1953 Comp., § 7-8-41.

NMSA 1978, § 19-7-40 [Assignments not filed and approved; effect.]

19-7-40. [Assignments not filed and approved; effect.] Any such assignment not filed in the office of the commissioner of public lands and approved by him shall be void as to subsequent assignees, whether for collateral security or otherwise, and as to holders of subsequent relinquishments, without notice, as to judgment or attaching creditors, from the date of the entry of such judgment or levy of such attachment, as to trustees in bankruptcy, from the date of the adjudication in bankruptcy, as to receivers, from the date of filing of the order of appointment and as to assignees for the benefit of creditors, from the date of the recording of the assignment. Laws 1933, ch. 126, § 4; 1941 Comp., § 8-839; 1953 Comp., § 7-8-42.

NMSA 1978, § 19-7-41 [Foreclosure of assignments; rights of purchaser.]

19-7-41. [Foreclosure of assignments; rights of purchaser.] The collateral assignments of record in the state land office upon grazing leases may be foreclosed in the manner provided by law for the foreclosure of chattel mortgages, and the collateral assignments of record in the state land office upon state purchase contracts may be foreclosed in the manner provided by law for the foreclosure of mortgages on real estate, and the purchaser at any sale under such foreclosure, if otherwise qualified to lease or purchase state land, as the case may be, on the filing with the commissioner of public lands of the transfer to him of any such lease or purchase contract, pursuant to any such foreclosure sale, and the payment of all delinquent payments on the lease or purchase contract so transferred, shall be entitled to a new lease or purchase contract on his compliance with all the conditions governing the lease or purchase of state lands, now or hereafter provided by law, or by regulation of the commissioner of public lands; provided, however, that in the event the collateral assignment foreclosed was subject to or inferior to a prior assignment, a purchaser at such foreclosure sale shall take such new lease or purchase contract subject to all prior assignments filed and approved in accordance with this act [19-7-37 to 19-7-45 NMSA 1978]. Any purchaser at such foreclosure sale shall also be entitled to the improvements on the lands covered by the lease or purchase contract purchased by him and to all rights of renewal of any such lease held by the original lessee; subject, however, to the rights of the holders of any prior assignments of record in the state land office. Laws 1933, ch. 126, § 6; 1937, ch. 51, § 3; 1939, ch. 48, § 4; 1941 Comp., § 8-841; 1953 Comp., § 7-8-43.

NMSA 1978, § 19-7-42 [Release of assignments; recording.]

19-7-42. [Release of assignments; recording.] Such assignments may be released by the execution by the assignee of a release in form to be prescribed by the commissioner, and any such release shall likewise be recorded in the books hereinabove prescribed. Laws 1933, ch. 126, § 7; 1941 Comp., § 8-842; 1953 Comp., § 7-8-44.

NMSA 1978, § 19-7-43 [Conditions for approval; right of cancellation reserved; preference of state liens.]

19-7-43. [Conditions for approval; right of cancellation reserved; preference of state liens.] No such assignment shall be approved by the commissioner of public lands until all delinquent payments on the lease or purchase contract so assigned have been paid; and nothing herein contained shall prevent the commissioner of public lands from canceling any lease or purchase contract so assigned because of the failure to make any payments due thereon, or for any noncompliance with the provisions of said lease or purchase contract. None of the provisions of this act [19-7-37 to 19-7-45 NMSA 1978] shall be held to give any assignee or purchaser any preference or priority over the lien or claim of the state on any lease or purchase contract so assigned, or the improvements thereon, as now or hereafter provided by law; and any such assignment and any rights acquired on any foreclosure thereof shall be subject to the lien and claim of the state on such lease or purchase contract and the improvements thereon. Laws 1933, ch. 126, § 8; 1937, ch. 51, § 4; 1941 Comp., § 8-843; 1953 Comp., § 7-8-45.

NMSA 1978, § 19-7-44 [Rules and regulations; filing and recording fee.]

19-7-44. [Rules and regulations; filing and recording fee.] The commissioner of public lands is authorized to make, publish and enforce all necessary and reasonable rules and regulations for carrying out the purposes and provisions of this act [19-7-37 to 19-7-45 NMSA 1978], and shall collect a uniform fee of one dollar [($1.00)] for the filing and recording of any instrument under the provisions hereof, which fees shall be covered into the maintenance fund of his office. Laws 1933, ch. 126, § 9; 1935, ch. 47, § 2; 1941 Comp., § 8-844; 1953 Comp., § 7-8-46.

NMSA 1978, § 19-7-45 [Construction of act; prior assignments and mortgages.]

19-7-45. [Construction of act; prior assignments and mortgages.] This act [19-7-37 to 19-7-45 NMSA 1978] shall not be construed to affect any assignment, mortgage or other instrument covering any purchase contract or lease of state lands for grazing or agricultural purposes or improvements thereon heretofore given for the purpose of securing any indebtedness and any such instrument or a certified copy thereof may be filed in the office of the commissioner of public lands and when so filed shall be constructive notice to all persons of the contents thereof and the lien created thereby may be foreclosed in accordance with the provisions of this act. Provided, however, the provisions of this act prescribing forms or requiring the approval of assignments by the commissioner of public lands shall not apply to such instruments. Laws 1933, ch. 126, § 10; 1937, ch. 51, § 5; 1941 Comp., § 8-845; 1953 Comp., § 7-8-47.

NMSA 1978, § 19-7-46 [Satisfaction of debt for which assignment of grazing or agricultural lease or purchase contracts given as security; filing of release.]

19-7-46. [Satisfaction of debt for which assignment of grazing or agricultural lease or purchase contracts given as security; filing of release.] When any lease debt or evidence of debt secured by an assignment for collateral security of grazing or agricultural leases of state lands or purchase contracts shall have been fully satisfied, it shall be the duty of the mortgagee, trustee or the assignee of such debt or evidence or [of] debt as the case may be to cause the full satisfaction thereof, to be entered of record in the office of the state commissioner of public lands. 1941 Comp., § 8-836b, enacted by Laws 1953, ch. 69, § 1; 1953 Comp., § 7-8-48.

NMSA 1978, § 19-7-47 [Violation; penalty; civil liability.]

19-7-47. [Violation; penalty; civil liability.] Any person who shall be guilty of violating the preceding section [19-7-46 NMSA 1978], upon conviction before any justice of the peace [magistrate court] or district court having jurisdiction of the same shall be punished by a fine of not less than ten [dollars] ($10.00) nor more than twenty-five dollars ($25.00), and shall be liable in a civil action for all costs of clearing the title to said property including a reasonable attorney's fee. 1941 Comp., § 8-836c, enacted by Laws 1953, ch. 69, § 2; 1953 Comp., § 7-8-49.

NMSA 1978, § 19-7-48 [Existing collateral assignments ratified; application of act thereto.]

19-7-48. [Existing collateral assignments ratified; application of act thereto.] All existing collateral assignments heretofore filed and approved by the commissioner of public lands covering either state leases or state land purchase contracts are hereby ratified and the provisions of this act [19-7-37, 19-7-46 to 19-7-48 NMSA 1978] are hereby made applicable thereto. 1941 Comp., § 8-836a, enacted by Laws 1953, ch. 69, § 4; 1953 Comp., § 7-8-50.

NMSA 1978, § 19-7-49 [New grazing lease; time for filing application; prior lessee preferred.]

19-7-49. [New grazing lease; time for filing application; prior lessee preferred.] Every grazing lessee who desires a new lease on the same lands for a term not exceeding five years shall make and file with the commissioner his application for such new lease on or before August 1st next preceding the expiration of his existing lease; and any and all other applicants for a like lease on such land shall make and file with the commissioner their applications on or before September 1st next preceding the expiration date of such existing lease. If more than one such application to lease be filed as herein provided, one of which shall be that of the holder of the existing lease, the commissioner shall lease such land to the bona fide applicant offering the highest annual rental therefor, if to anyone; except that the commissioner, before so doing, if another bona fide applicant shall offer a higher rental than that offered by the holder of the existing lease, shall give written notice to the holder of the existing lease, immediately after September 1st next preceding the expiration of such lease, of the name and address of the applicant offering the highest annual rental and the amount of such offer, and if the holder of the existing lease, on or before September 30th next ensuing, shall meet such offer and has, in good faith, complied with all the requirements of his existing lease, the lease shall be awarded to him, if to anyone. Laws 1937, ch. 42, § 2; 1941 Comp., § 8-846; 1953 Comp., § 7-8-51.

NMSA 1978, § 19-7-50 [Violation of lease or instrument covering state lands; notice; forfeiture for noncompliance with demand.]

19-7-50. [Violation of lease or instrument covering state lands; notice; forfeiture for noncompliance with demand.] The violation of any of the terms, covenants or conditions of any lease or instrument in writing executed by the commissioner covering state lands, or the nonpayment by any lessee of such lands of rental when due, shall, at the option of the commissioner, work a forfeiture of any such lease or instrument in writing after thirty days' notice thereof to the lessee and the holders of any collateral assignments by registered mail, addressed to his or their last known post-office address of record in the state land office; provided, if within said thirty days the lessee or the holders of any collateral assignments shall comply with the demand made in any such notice, cancellation shall not be made. Laws 1912, ch. 82, § 21; Code 1915, § 5198; Laws 1921, ch. 8, § 1; C.S. 1929, § 132-121; Laws 1939, ch. 64, § 1; 1941 Comp., § 8-847; 1953 Comp., § 7-8-52.

NMSA 1978, § 19-7-51 [Improvement on grazing or agricultural lease; restrictions.]

19-7-51. [Improvement on grazing or agricultural lease; restrictions.] Except by the express written consent of the commissioner, improvements upon leased state lands held under one lease shall be limited as follows: upon those leased for grazing purposes, fences only, at a cost not exceeding one hundred and fifty dollars ($150) per mile, and necessary corrals, at a cost not exceeding two hundred dollars ($200); upon those leased for agricultural purposes, fences at a cost not exceeding one hundred and fifty dollars ($150) per mile for exterior boundaries and seventy-five dollars ($75) per mile for inside cross-fences; barns, dwellings and all other buildings, at a total cost not exceeding six hundred dollars ($600); wells and irrigation systems at a total cost not exceeding one thousand dollars ($1,000); and for improvements to the land, such as orchards, plowed land, crops, etc., the amount allowed shall be only the amount added to the natural value of the land by such improvement, but in no case to exceed a total of ten dollars ($10.00) per acre for lands actually so improved. For the purposes of this chapter fences and growing crops shall be considered as movable improvements, and all other improvements as permanent improvements. Laws 1912, ch. 82, § 22; Code 1915, § 5199; C.S. 1929, § 132-122; 1941 Comp., § 8-848; 1953 Comp., § 7-8-53.

NMSA 1978, § 19-7-52 Excessive permanent improvements become part of realty

19-7-52. Excessive permanent improvements become part of realty Twenty-five percent of all permanent improvements in excess of the amount specified in Section 19-7-51 NMSA 1978 shall be and remain a part of the real estate so offered for sale, except as provided in this and the preceding section. Laws 1913, ch. 29, § 3; Code 1915, § 5259; C.S. 1929, § 132-200; 1941 Comp., § 8-851; 1953 Comp., § 7-8-56; Laws 1975, ch. 111, § 2.

NMSA 1978, § 19-7-53 [Preferences in leasing; occupants of land acquired by state; persons or firms domiciled or paying taxes in state.]

19-7-53. [Preferences in leasing; occupants of land acquired by state; persons or firms domiciled or paying taxes in state.] Any person, association of persons or corporation authorized to transact business in the state, occupying any lands the title to which is acquired by the state by operation of law, shall have a preference right to lease same in accordance with the provisions of this chapter; provided application so to do is made within thirty days from and after the acquisition of such title. Persons, associations of persons or corporations having domicile or paying taxes in the state, applying to lease state lands, shall in all cases be given preference provided the rental or royalty offered to be paid be at least equal to that otherwise obtainable. Laws 1912, ch. 82, § 23; Code 1915, § 5200; C.S. 1929, § 132-123; 1941 Comp., § 8-852; 1953 Comp., § 7-8-57.

NMSA 1978, § 19-7-54 Municipalities leasing lands within five miles of limits; uses; term

19-7-54. Municipalities leasing lands within five miles of limits; uses; term Wherever any lands belonging to the state or under the supervision of the commissioner are situate within five miles of any municipality and the municipality may have use for the state lands for airports, parks, swimming pools, fairgrounds, playgrounds, economic development or other municipal purposes, the municipality is authorized and empowered to lease the lands or so much thereof as may be reasonably necessary for such purpose from the commissioner, and upon receipt of a request for such a lease, the commissioner is authorized and empowered to enter into such a lease for a term not exceeding forty years upon such reasonable terms and conditions as may be prescribed by the commissioner. Laws 1929, ch. 53, § 1; C.S. 1929, § 132-601; 1941 Comp., § 8-853; 1953 Comp., § 7-8-58; 2020, ch. 21, § 1.

NMSA 1978, § 19-7-55 Counties and school districts leasing state lands; uses; term

19-7-55. Counties and school districts leasing state lands; uses; term A. Any county or school district within the state that may have use for any state lands for any purpose incidental to the powers of the county or school district shall have the right and power to lease the lands or so much thereof as may be reasonably necessary for such purpose from the commissioner, and upon receipt of a request for such a lease, the commissioner is authorized and empowered to enter into such a lease for a term not exceeding forty years upon such reasonable terms and conditions as may be prescribed by the commissioner. B. In setting the terms and conditions of any lease to a school district, the commissioner shall, upon the request of the governing body of the school district, provide that the rental costs for the lease be paid from the school district's share of the current school fund established in Article 12, Section 4 of the constitution of New Mexico, or the common school current fund created in Section 19-1-17 NMSA 1978. C. The necessary documentation to achieve this appropriation shall be submitted to the state treasurer by the commissioner. The appropriation made hereby is a continuing appropriation. Laws 1929, ch. 53, § 2; C.S. 1929, § 132-602; 1941 Comp., § 8-854; 1953 Comp., § 7-8-59; Laws 1985 (1st S.S.), ch. 2, § 1; 2020, ch. 21, § 2.

NMSA 1978, § 19-7-56 [Preference right of municipality, county or school district; payment for prior improvements.]

19-7-56. [Preference right of municipality, county or school district; payment for prior improvements.] Any such municipality, county or school district, shall at all times have a preference right to lease said state lands, and the commissioner of public lands shall prefer the application of said municipality, county or school district over any other application for lease upon the same land. Provided, nevertheless, that before any such lease is granted the lessee shall be required to pay the reasonable value of any improvements placed upon said state lands by a former lessee for the use of the owner of said improvements. Laws 1929, ch. 53, § 3; C.S. 1929, § 132-603; 1941 Comp., § 8-855; 1953 Comp., § 7-8-60.

NMSA 1978, § 19-7-57 Commissioner; powers; easements; rights of way

19-7-57. Commissioner; powers; easements; rights of way The commissioner may grant rights of way and easements over, upon or across state lands for public highways, railroads, tramways, telegraph, telephone and power lines, irrigation works, mining, logging and other purposes upon payment by the grantee of the price fixed by the commissioner, which shall not be less than the minimum price for the lands, used, as fixed by law. The commissioner may grant a right of way or easement over, upon or across state lands for oil, hazardous liquid and gas pipelines if the right-of-way grant or easement requires compliance with the Pipeline Safety Act, Section 70-3-11, et seq., NMSA 1978, and rules adopted pursuant to that act and provides for regulatory and agencies' access to records of compliance. Laws 1912, ch. 82, § 53; Code 1915, § 5231; C.S. 1929, § 132-154; 1941 Comp., § 8-856; 1953 Comp., § 7-8-61; 2001, ch. 298, § 1.

NMSA 1978, § 19-7-58 [Rights-of-way; interference with roads or highways.]

19-7-58. [Rights-of-way; interference with roads or highways.] The location of any right-of-way through any canyon, pass or defile shall not cause the disuse of any wagon [road] or other public highway now located therein, nor prevent the location through the same of any such wagon road or highway, where such road or highway may be necessary for the public accommodation; and where any change in the location of such wagon road is necessary to permit the use of such right-of-way or easement, the user of such right-of-way or easement, shall before entering upon the ground occupied by such wagon road, cause the same to be reconstructed at his own expense in the most favorable location, and in as perfect a manner as the original road. Laws 1912, ch. 82, § 54; Code 1915, § 5232; C.S. 1929, § 132-155; 1941 Comp., § 8-857; 1953 Comp., § 7-8-62.

NMSA 1978, § 19-7-59 Repayment of money erroneously paid on lease or purchase contract after distribution

19-7-59. Repayment of money erroneously paid on lease or purchase contract after distribution A. The duties, responsibilities and activities of the commissioner of public lands and lessees of state trust land and minerals set out in this section shall be performed in a timely manner. B. Money erroneously paid on account of a lease or sale of state lands, which money is not carried in a suspense fund but has been distributed to the proper income or permanent fund, shall be repaid in the manner prescribed in this section. C. If the money erroneously paid was for royalty due under a lease, then, subject to a subsequent audit by the commissioner of public lands or the commissioner's agent, the lessee may either request a refund or may recoup the money by deducting an equivalent amount from subsequent royalty payments due for the same lease and any other lease with the same trust beneficiary; provided that if the amount erroneously paid pursuant to this subsection is greater than fifty thousand dollars ($50,000) for a lease, no deduction from subsequent payments shall be made without the prior approval of the commissioner of public lands; and, provided further that, no initial claim for recoupment shall be made after six years from the date on which the initial royalty obligation became due. D. If the amount of money erroneously paid is less than ten thousand dollars ($10,000), then, after a claim for a refund has been filed pursuant to Section 19-7-60 NMSA 1978 and approved by the commissioner of public lands, no court action shall be necessary and a refund shall be made under Section 19-7-62 or 19-7-63 NMSA 1978. E. All other money erroneously paid shall be refunded pursuant to the provisions of Sections 19-7-60 through 19-7-63 NMSA 1978. Laws 1931, ch. 99, § 1; 1941 Comp., § 8-858; 1953 Comp., § 7-8-63; Laws 1979, ch. 234, § 1; 1989, ch. 11, § 1; 1994, ch. 102, § 1; 2007, ch. 61, § 1.

NMSA 1978, § 19-7-60 Claim for refund; contents; time limit; notice of erroneous payment; limitation of action

19-7-60. Claim for refund; contents; time limit; notice of erroneous payment; limitation of action A person claiming a refund under the provisions of Sections 19-7-59 through 19-7-63 NMSA 1978 shall file with the commissioner of public lands a written claim for refund, stating the amount claimed to have been erroneously paid and the reasons why such payment was erroneously made. All claims for refund of money shall be filed within ninety days after notice. If an erroneous payment of any money is discovered by the commissioner of public lands, notice of the discovery shall be given by the commissioner of public lands, as soon after the discovery as possible, by registered mail to the last recorded address of the person making the erroneous payment. A claim for a refund that is not filed with the commissioner of public lands within six years from the date the erroneous payment was made shall be forever barred; provided that if notice of an erroneous payment is given less than ninety days before the end of the six-year limitation, the period of time to file a claim shall be extended beyond the six-year limitation for the number of days necessary to provide ninety days to file the claim. Laws 1931, ch. 99, § 2; 1941 Comp., § 8-859; 1953 Comp., § 7-8-64; Laws 1979, ch. 234, § 2; 2007, ch. 61, § 2.

NMSA 1978, § 19-7-61 [Endorsement of claims; filing in district court of Santa Fe county; notice to claimant; procedure; judgment; appeal; costs.]

19-7-61. [Endorsement of claims; filing in district court of Santa Fe county; notice to claimant; procedure; judgment; appeal; costs.] Within sixty days after the filing of any application for refund, the commissioner of public lands shall investigate the facts and shall endorse thereon his approval or disapproval of said claim, in whole or in part, together with such other statement of facts as to him may seem advisable. The commissioner of public lands shall file each such claim, together with his endorsement as herein provided, in the district court of Santa Fe county, New Mexico. Such claim, when so filed, shall be considered as the institution of a proceeding for the determination of the validity of the claim for refund by each such claimant against the commissioner of public lands of the state of New Mexico. Upon the filing of any such claim in said district court, the commissioner of public lands shall notify the claimant, by ordinary mail, at his post-office address shown in the claim for refund, of the fact of the filing of said claim in the district court, and shall at the same time transmit to such claimant a copy of the endorsement of the commissioner on such claim. Within thirty days from the date of said notice, the claimant may file in the district court such additional statement of facts, under oath, relative to the validity of the claim for refund, as he may deem advisable, and shall serve a copy of any such statement so filed, on the commissioner of public lands. It shall be the duty of the district court of Santa Fe county to set a date for the hearing of all claims so filed and such hearing shall be governed by the Rules of Civil Procedure. The district court of Santa Fe county is hereby given jurisdiction to hear and determine all such claims for refund, and it shall make such determination as speedily as possible and without the intervention of jury. Said court shall make findings of fact and conclusions of law and shall set out in its judgment the amount, or amounts, which the claimant is entitled to have refunded to him, and the fund or funds to which the money ordered refunded was credited. Appeal from any final determination in such cases may be taken to the supreme court of the state, as in ordinary civil action, by either the claimant or the commissioner of public lands, within twenty days from the date of the entry of the judgment from which such appeal is taken. No costs or fees shall be required for the filing of such claims in the district court, the entry of judgment thereon, or for the filing of any appeal in the supreme court of the state. In no event shall any costs of any nature be taxed against the commissioner of public lands. When any judgment entered hereunder shall become final, a certified copy thereof shall be filed with the commissioner of public lands. Laws 1931, ch. 99, § 3; 1941 Comp., § 8-860; 1953 Comp., § 7-8-65.

NMSA 1978, § 19-7-62 Annual appropriation for refunds; payment from state lands maintenance fund

19-7-62. Annual appropriation for refunds; payment from state lands maintenance fund There is appropriated annually out of the state lands maintenance fund created by Section 19-1-11 NMSA 1978 the sum of five hundred thousand dollars ($500,000) or such part thereof as may be necessary for the purpose of making refunds of payments determined in the manner provided by Sections 19-7-59 through 19-7-63 NMSA 1978 to have been erroneously collected; provided, however, that any refund of money paid into any fund other than the state lands maintenance fund shall be made only out of that part of the state lands maintenance fund distributable to the fund into which such payment was erroneously made, under the provisions of Section 19-1-13 NMSA 1978. Laws 1931, ch. 99, § 4; 1941 Comp., § 8-861; 1953 Comp., § 7-8-66; Laws 1979, ch. 234, § 3; 2007, ch. 61, § 3.

NMSA 1978, § 19-7-63 Erroneous distribution to permanent fund

19-7-63. Erroneous distribution to permanent fund Refunds shall be made hereunder, of any money erroneously distributed to any permanent fund, only out of that part of the state lands maintenance fund distributable to that beneficiary into whose permanent fund the erroneous distribution was made. Provided, however, in the event the fund distributable to a beneficiary for the current fiscal year is insufficient to pay an approved refund, a temporary loan may be made to that beneficiary from that part of the maintenance fund as represents receipts for fees and copies. Such loans are repayable from distributable funds allocated to the beneficiary for the following fiscal year. 1978 Comp., § 19-7-63, enacted by Laws 1979, ch. 234, § 4.

NMSA 1978, § 19-7-64 [Contesting rights to state lands; rules and regulations.]

19-7-64. [Contesting rights to state lands; rules and regulations.] Any person, association of persons or corporation claiming any right, title, interest or priority of claim, in or to any state lands, covered by any lease, contract, grant or any other instrument executed by the commissioner, shall have the right to initiate a contest before the commissioner who shall have the power to hear and determine same. The commissioner shall prescribe appropriate rules and regulations to govern the practice and procedure of such contests. Laws 1912, ch. 82, § 69; Code 1915, § 5247; C.S. 1929, § 132-181; 1941 Comp., § 8-863; 1953 Comp., § 7-8-68.

NMSA 1978, § 19-7-65 [Commissioner's power relative to oaths, witnesses and documents.]

19-7-65. [Commissioner's power relative to oaths, witnesses and documents.] In such contests, the commissioner shall have the same power as conferred by law upon referees relative to the administration of oaths, examination of witnesses and production of books, documents and other papers. Laws 1912, ch. 82, § 70; Code 1915, § 5248; C.S. 1929, § 132-182; 1941 Comp., § 8-864; 1953 Comp., § 7-8-69.

NMSA 1978, § 19-7-66 [Perjury in contest proceedings; penalty.]

19-7-66. [Perjury in contest proceedings; penalty.] Every person who shall knowingly and willfully swear falsely, concerning any material matter or thing, respecting which he shall be required to depose in any such contest, shall be deemed guilty of perjury, and upon conviction thereof shall be punished by imprisonment for not more than five years, nor less than two years. Laws 1912, ch. 82, § 71; Code 1915, § 5249; C.S. 1929, § 132-183; 1941 Comp., § 8-865; 1953 Comp., § 7-8-70.

NMSA 1978, § 19-7-67 Contest; commissioner; appeal to district court

19-7-67. Contest; commissioner; appeal to district court A person aggrieved by a decision of the commissioner may appeal to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. Laws 1912, ch. 82, § 72; Code 1915, § 5250; C.S. 1929, § 132-184; 1941 Comp., § 8-866; 1953 Comp., § 7-8-71; Laws 1998, ch. 55, § 28; 1999, ch. 265, § 29.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18519/index.doFetched: 10/20/2026

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