Consolidation of Small Tracts for Mineral Development

NMSA 1978 ch. 69, art. 9

in effect

NMSA 1978, § 69-9-1 Declaration of policy

69-9-1. Declaration of policy It is hereby declared to be in the public interest to provide a method whereby small tracts of land, which cannot economically be separately explored and mined, may be consolidated for the purposes of exploring, mining and conserving the natural resources of this state under those circumstances where the mineral development of such tracts and the recovery and conservation of the natural resources of this state therein contained cannot otherwise be practically accomplished. 1953 Comp., § 63-32-1, enacted by Laws 1967, ch. 33, § 1.

NMSA 1978, § 69-9-2 Excluded lands and minerals

69-9-2. Excluded lands and minerals No lands owned by the United States of America or the state of New Mexico or lying within the corporate limits of an incorporated village, city or town or held under patented or unpatented mining claim, and no allotted or tribal Indian lands shall be subject to the provisions of this act [69-9-1 to 69-9-10 NMSA 1978]. Neither shall this act be applicable to or affect rights to produce, mine or remove from the land oil, gas, coal or other hydrocarbons, or other materials mined primarily for their nonmetallic constituents such as potassium, phosphate, sodium or salt. 1953 Comp., § 63-32-2, enacted by Laws 1967, ch. 33, § 2.

NMSA 1978, § 69-9-3 Definitions

69-9-3. Definitions As used in Chapter 69, Article 9 NMSA 1978: A. "small tract" means a tract of land comprising two acres or less. Where contiguous tracts of two acres or less are owned in common, as for example common ownership of contiguous lots created by platting, each tract is nevertheless a small tract within this definition; B. "ore" means uranium exclusively with the exception of associated minerals mined therewith; C. "owner" means a person having an interest in or right to ore in place, or the mining and removal thereof, in or on a small tract included in the area covered by an application for consolidation under Chapter 69, Article 9 NMSA 1978; D. "mining rights" means the right to explore for, mine, remove, own and dispose of ore; and E. "secretary" means the secretary of energy, minerals and natural resources. 1953 Comp., § 63-32-3, enacted by Laws 1967, ch. 33, § 3; 1977, ch. 255, § 20; 1987, ch. 234, § 52.

NMSA 1978, § 69-9-4 Administration

69-9-4. Administration The secretary shall be vested with jurisdiction over the administration of this act [69-9-1 to 69-9-10 NMSA 1978] and shall have the power and the duty to make such rules, regulations and orders as may be necessary or proper to effectuate its purposes. 1953 Comp., § 63-32-4, enacted by Laws 1967, ch. 33, § 4; 1977, ch. 255, § 21.

NMSA 1978, § 69-9-5 Application for consolidation

69-9-5. Application for consolidation Any person, corporation or other legal entity seeking consolidation of an area comprised wholly of small tracts and holding mining rights with respect to interests equal in the aggregate to at least sixty percent of the entire mineral estate (insofar as it pertains to ore) in such area, may make written application for such consolidation to the secretary, which application shall include the following: A. a plat of the area to be consolidated, which area shall consist of contiguous small tracts and shall not comprise more than a total of 660 acres; B. a designation (which may be by showing such information on aforesaid plat) of the small tracts or interest therein, within the area with respect to which applicant holds mining rights and the terms and conditions of such rights; a copy of the form of mining lease on which applicant has obtained its leases or a majority thereof within the area to be attached as an exhibit to the application; C. a designation respectively of the small tracts, or interests therein, within the area with respect to which: (1) the owners' names are known but their addresses are unknown; (2) the owners are unknown; and (3) the owners' names and addresses are known but on whose interests applicant has not obtained mining rights; stating such owners' names and addresses so far as known to applicant; D. an affidavit by the applicant or by an officer of the applicant if it be a corporation setting forth the following particulars: (1) the efforts made to locate the owners within the area whose names or addresses are alleged to be unknown; and (2) the efforts made to obtain mining rights with respect to the interest of each owner in the area whose name and address is known but from whom the applicant has not obtained such rights; E. a statement concerning the proposed operations, their objects and the methods to be utilized; F. a statement concerning the need for the proposed consolidation. 1953 Comp., § 63-32-5, enacted by Laws 1967, ch. 33, § 5; 1977, ch. 255, § 22.

NMSA 1978, § 69-9-6 Hearing; notice; expenses

69-9-6. Hearing; notice; expenses Upon receiving an application for consolidation under this act [69-9-1 to 69-9-10 NMSA 1978], the secretary shall set a date for hearing evidence with respect to such application. Notice of the hearing shall be given to all owners by publication once a week for four consecutive weeks in a newspaper of general circulation published in the county where the area to be consolidated is situated and, as to those owners for whom applicant has an address, by mailing by certified mail return receipt requested within five days after the date of first publication a copy of the notice as published to such owners at their respective addresses reflected in applicant's records. The last publication shall be at least ten days prior to the date set for the hearing. The notice shall describe the area sought to be consolidated, giving the section and the township, range and county and shall state generally the nature of the proceeding and the objects thereof. In the event there is no newspaper of general circulation published in the county where the area to be consolidated is situated, notice shall be given in such manner as the secretary shall direct. The applicant shall pay all expenses incurred by the secretary in connection with an application for consolidation under this act. 1953 Comp., § 63-32-6, enacted by Laws 1967, ch. 33, § 6; 1977, ch. 255, § 23.

NMSA 1978, § 69-9-7 Findings prerequisite to consolidation

69-9-7. Findings prerequisite to consolidation The secretary shall order consolidation of an area comprised of small tracts pursuant to application filed under this act [69-9-1 to 69-9-10 NMSA 1978] if he finds that: A. proper notice of said hearing has been given as required by this act; B. mineral development of the small tracts in the area to be consolidated on a separate and individual basis would be uneconomic and impractical; C. the area set out in the application or such other area as determined by the secretary comprises an appropriate unit for the purposes set out herein; D. consolidation of the area is needed to induce mineral exploration and potential mineral development of the area, will avoid waste of natural resources and will protect the correlative rights of all who have interests in the area; E. the proposed operations are feasible and in accord with good industry practices; F. the applicant has made diligent and good faith effort to locate all owners in the area and to obtain mining rights as to their interests but despite the applicant's efforts, there remain owners in the area who are unknown or whose addresses are unknown or from whom applicant has not obtained mining rights; and G. the applicant holds mining rights with respect to interests equal in the aggregate to at least sixty percent of the entire mineral estate (so far as it pertains to ore) in the area. 1953 Comp., § 63-32-7, enacted by Laws 1967, ch. 33, § 7; 1977, ch. 255, § 24.

NMSA 1978, § 69-9-8 Effect of order

69-9-8. Effect of order An order of consolidation entered by the secretary pursuant to this act [69-9-1 to 69-9-10 NMSA 1978] shall, as to each small tract or interest therein, within the consolidated area on which applicant does not otherwise hold the mining rights, effectuate a mining lease to applicant from the owner of such tract, or interest therein, granting applicant mining rights thereon effective as of the date of the first publication of the notice of hearing on the application for consolidation. The terms and provisions of the leases so granted to applicant shall be stated in the order and shall correspond to those contained in the form of mining lease attached to the application, except for such changes therefrom as the secretary may in his order determine to be required in order to effectuate the intents and purposes of this act, and provided that for purposes of such leases: A. if operations are being conducted anywhere on the consolidated area, it shall be considered that operations are being conducted on each tract within the consolidated area; B. if ore is produced from any part of the consolidated area (ore produced, saved and removed from the consolidated area being hereinbelow called "area production"), it shall be considered as though production of ore is had from each tract within the consolidated area and there shall be allocated to each such tract, as its share of area production, that part of the area production which bears the same ratio to the whole amount of such area production as the ratio that the number of surface acres in said tract bears to the total number of surface acres in the consolidated area; and unless the secretary shall determine and make another allocation which is more equitable in the protection of the correlative rights of the interested parties; and C. each owner in a small tract within the consolidated area whose interest is under lease granted pursuant to this act shall receive in lieu of any other royalties a royalty as the same shall be fixed by the terms of the lease. 1953 Comp., § 63-32-8, enacted by Laws 1967, ch. 33, § 8; 1977, ch. 255, § 25.

NMSA 1978, § 69-9-9 Approval by district court

69-9-9. Approval by district court The order of the secretary shall be effective when approved by the district court for the county in which the consolidated area is located. Notice of hearing in the district court shall be given in the same manner as required for notice of hearing before the secretary, as specified in Section 69-9-6 NMSA 1978. 1953 Comp., § 63-32-9, enacted by Laws 1967, ch. 33, § 9; 1977, ch. 255, § 26.

NMSA 1978, § 69-9-10 Money placed in suspense; escheat

69-9-10. Money placed in suspense; escheat Any money payable to unknown owners or to owners whose addresses are unknown under leases effectuated by an order of consolidation pursuant to this act [69-9-1 to 69-9-10 NMSA 1978] shall be placed in suspense with the state treasurer who shall hold said money for payment upon demand and proof of ownership. Any money held in suspense for a period of ten years or longer shall be handled pursuant to the Uniform Disposition of Unclaimed Property Act [repealed]. 1953 Comp., § 63-32-10, enacted by Laws 1967, ch. 33, § 10.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18572/index.doFetched: 10/20/2026