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Form a Business

Lease of Mineral Lands

NMSA 1978 ch. 19, art. 8
in effect

NMSA 1978, § 19-8-1 [Concealment of returns; defrauding state of royalty; penalty.]

19-8-1. [Concealment of returns; defrauding state of royalty; penalty.] Any lessee of mineral lands under this chapter who shall conceal, or attempt to conceal any of such returns, or who shall in any manner defraud, or attempt to defraud, the state out of any such royalty shall be deemed guilty of a felony, and upon conviction thereof shall be punished by a fine of not more than one thousand dollars, or by imprisonment for not more than three years, or both; and his lease shall be forfeited in the manner hereinbefore provided in this chapter. Laws 1912, ch. 82, § 37; Code 1915, § 5214; C.S. 1929, § 132-137; 1941 Comp., § 8-906; 1953 Comp., § 7-9-6.

NMSA 1978, § 19-8-2 [Inspection of lessee's books by commissioner.]

19-8-2. [Inspection of lessee's books by commissioner.] The commissioner, or his representative, shall have the right to inspect all records or books of account pertaining to the mining, extraction, transportation, reduction and returns of all ores taken from such leased lands. Laws 1912, ch. 82, § 38; Code 1915, § 5215; C.S. 1929, § 132-138; 1941 Comp., § 8-907; 1953 Comp., § 7-9-7.

NMSA 1978, § 19-8-3 [Lessee's preferential right to renew or purchase; notice to vacate when another purchases.]

19-8-3. [Lessee's preferential right to renew or purchase; notice to vacate when another purchases.] Any lessee of such mineral lands, or the heirs, successors or assigns of such lessee, shall have a preferential right to a renewal lease, or to purchase during the life of such lease, provided all terms and conditions of the expiring lease shall have been fully performed. In case of purchase by another, one year's notice to vacate shall be given to the lessee. Laws 1912, ch. 82, § 39; Code 1915, § 5216; C.S. 1929, § 132-139; 1941 Comp., § 8-908; 1953 Comp., § 7-9-8.

NMSA 1978, § 19-8-4 Leases for certain minerals; rentals; royalty

19-8-4. Leases for certain minerals; rentals; royalty The commissioner is authorized to issue leases for the development, exploration and production of potassium, sodium, phosphorus and other minerals of similar occurrence and their salts and compounds, including chlorides, sulphates, carbonates, borates, silicates, nitrates and any and all other salts and compounds of the minerals on any lands of the state upon such terms and conditions as he may deem to be for the best interests of the state and conformable to Sections 19-8-4 through 19-8-7 NMSA 1978. The minimum first year's rental for such leases shall be one hundred dollars ($100), and in all cases there shall be reserved to the state a royalty to be established by regulation issued under the provisions of Section 19-8-7 NMSA 1978. The commissioner may amend any lease in existence on the effective date of this amendment to reflect any regulation in effect at the time of the amendment to the lease. Laws 1929, ch. 140, § 1; C.S. 1929, § 111-501; 1941 Comp., § 8-909; 1953 Comp., § 7-9-9; Laws 1984, ch. 13, § 1.

NMSA 1978, § 19-8-5 [Term of lease.]

19-8-5. [Term of lease.] Leases under this act [19-8-4 to 19-8-7 NMSA 1978] may be made for a term of ten years or less and as long thereafter as said minerals, or any of them, in paying quantities shall be produced from the leased lands. Laws 1929, ch. 140, § 2; C.S. 1929, § 111-502; 1941 Comp., § 8-910; 1953 Comp., § 7-9-10.

NMSA 1978, § 19-8-6 [Salt lease statutes excepted.]

19-8-6. [Salt lease statutes excepted.] There is expressly excepted from the provisions of this act [19-8-4 to 19-8-7 NMSA 1978], chloride of sodium, usually called and known as common salt, and this act shall not be construed as modifying, altering, repealing or in any wise changing the existing statutes relating to the leasing of state lands for the production of chloride of sodium, or common salt. Laws 1929, ch. 140, § 3; C.S. 1929, § 111-503; 1941 Comp., § 8-911; 1953 Comp., § 7-9-11.

NMSA 1978, § 19-8-7 [Rules and regulations authorized.]

19-8-7. [Rules and regulations authorized.] The commissioner of public lands shall prescribe and promulgate from time to time all necessary rules and regulations for carrying out the provisions hereof. Laws 1929, ch. 140, § 4; C.S. 1929, § 111-504; 1941 Comp., § 8-912; 1953 Comp., § 7-9-12.

NMSA 1978, § 19-8-8 [Suspension of production; authorization by commissioner of public lands; causes; duration.]

19-8-8. [Suspension of production; authorization by commissioner of public lands; causes; duration.] In all cases where production of potassium, sodium, phosphorus and other minerals of similar occurrence, and their salts and compounds has been obtained by the lessee in paying quantities upon lands covered by any valid lease heretofore or hereafter issued by the commissioner of public lands under the provisions of Sections 19-8-4 to 19-8-7 NMSA 1978, the commissioner of public lands may authorize a suspension of production on such lease during either the primary, or fixed term, or during the secondary, or indeterminable term, of such lease for such period as may be fixed by him, from time to time, where: A. temporary conditions exist, with regard to the leased land then being mined, which would operate to prevent the mining of the maximum minable 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 the various parts of the lands covered by the lease and other lands are an integral part; or C. marketing conditions are such that the lease cannot be mined and operated except at a loss. No suspension authorized by the terms of this act [19-8-8, 19-8-9 NMSA 1978] shall be for a period of more than five years and in no event shall any suspension of production under any lease be for a period longer than ten years from the date on which the term of the lease would have expired in the absence of suspension of production. 1953 Comp., § 7-9-12.1, enacted by Laws 1959, ch. 178, § 1.

NMSA 1978, § 19-8-9 [Suspension of production; authorization by commissioner of public lands; extension of primary term of lease; secondary term of lease not determined by.]

19-8-9. [Suspension of production; authorization by commissioner of public lands; extension of primary term of lease; secondary term of lease not determined by.] Provided the lessee complies with all other terms and conditions of the lease, a suspension of production authorized by the commissioner of public lands shall: A. if it occurs during the fixed or primary term of such lease, extend the term of such lease for a period of time equal to the period of such suspension; or B. if it occurs during the indeterminable or secondary term of such lease, prevent the lease from determining in accordance with the limitation of such lease. 1953 Comp., § 7-9-12.2, enacted by Laws 1959, ch. 178, § 2.

NMSA 1978, § 19-8-10 [Saline leases; royalties; record of sales; conditions.]

19-8-10. [Saline leases; royalties; record of sales; conditions.] The commissioner may execute leases for the extraction of salt from the saline lands and lakes belonging to the state. Such leases shall provide for a royalty on all salt extracted therefrom of not less than ten percent of the actual sale price at the place of extraction. Said royalties shall be paid quarterly and accurate record shall be kept of all sales made. All leases made hereunder shall contain such conditions and shall provide for the cancellation of the lease by the commissioners for the breach thereof. Laws 1912, ch. 82, § 41; Code 1915, § 5219; Laws 1923, ch. 99, § 1; C.S. 1929, § 132-142; Laws 1939, ch. 81, § 1; 1941, ch. 16, § 1; 1941 Comp., § 8-913; 1953 Comp., § 7-9-13.

NMSA 1978, § 19-8-11 [Term of saline lease; extension.]

19-8-11. [Term of saline lease; extension.] Leases under this act [19-8-10, 19-8-11 NMSA 1978] may be made for a term of ten years or less and as long thereafter as said salt in paying quantities shall be produced from the leased lands; provided that as to any saline leases existing at the effective date of this act the commissioner of public lands may in his discretion extend the term of any such leases for an additional term of five years and as long thereafter as salt is being produced in paying quantities from the leased lands. Laws 1941, ch. 16, § 2; 1941 Comp., § 8-914; 1953 Comp., § 7-9-14.

NMSA 1978, § 19-8-12 [Shale, clay, natural deposit or product lease; conditions; improvement mortgages void.]

19-8-12. [Shale, clay, natural deposit or product lease; conditions; improvement mortgages void.] The commissioner may also execute leases for the mining, extraction or disposition of shale, clay or other natural deposits in or upon, or products of, state lands, not otherwise provided for in this chapter, upon such terms and conditions as he may deem for the best interests of the state, not repugnant to law. Any mortgage upon improvements on any such lands so leased shall be void. Laws 1912, ch. 82, § 42; Code 1915, § 5220; C.S. 1929, § 132-143; 1941 Comp., § 8-915; 1953 Comp., § 7-9-15.

NMSA 1978, § 19-8-13 [Mineral lands; development.]

19-8-13. [Mineral lands; development.] All lands under lease for extraction of coal or other deposits, shall be developed and operated in a workmanlike manner and with a view to development of the whole area tributary to the shafts, drifts, tunnels or other openings made, and failure of the lessee or his assigns to observe this provision shall be cause for cancellation and forfeiture of the lease thereon in the manner hereinbefore provided in this chapter. Laws 1912, ch. 82, § 43; Code 1915, § 5221; C.S. 1929, § 132-144; 1941 Comp., § 8-916; 1953 Comp., § 7-9-16.

NMSA 1978, § 19-8-14 Issuance of mineral leases authorized; minerals not included

19-8-14. Issuance of mineral leases authorized; minerals not included The commissioner of public lands, hereinafter referred to as the "commissioner," is hereby authorized to execute and issue in the name of the state of New Mexico, as lessor, leases for the sole and exclusive purpose of prospecting, exploration and mining of all minerals other than common salt, oil and gas, coal, shale, clay, gravel, building stone and building materials, potassium, sodium, phosphorus and other minerals of similar occurrence, and their salts and compounds upon or from any public lands over which the commissioner has jurisdiction, direction, control, care and disposition under the constitution and laws of the state of New Mexico, such leases to be issued upon such terms and conditions as the commissioner may deem to be to the best interests of the state of New Mexico and not inconsistent with the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978]. 1953 Comp., § 7-9-17, enacted by Laws 1955, ch. 53, § 1.

NMSA 1978, § 19-8-15 Minerals, lessees, legal subdivision defined

19-8-15. Minerals, lessees, legal subdivision defined The term "minerals" as used in this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall be construed to include all mineral deposits, whether the same be lode, placer or otherwise, and unless otherwise specifically indicated the term "lessee" as used in this act shall be construed to include an assignee under an assignment approved pursuant to Section 13 [19-8-28 NMSA 1978] of this act. The term "legal subdivision" as used in this act shall be construed in its ordinary sense, as used and recognized by the general land office of the United States and the state land office of the state of New Mexico. 1953 Comp., § 7-9-18, enacted by Laws 1955, ch. 53, § 2.

NMSA 1978, § 19-8-16 Validation of existing leases and permits; renewals of permits prohibited

19-8-16. Validation of existing leases and permits; renewals of permits prohibited All prospecting permits and leases issued prior to the effective date of this act which have not expired, or which have not been canceled legally for nonperformance, are hereby declared to be valid and existing contracts with the state of New Mexico according to their terms and provisions, and the commissioner is hereby directed to accept and recognize all such permits and leases according to their terms and provisions. Provided, further, that no such existing prospecting permits shall be extended, renewed or otherwise prolonged or enlarged as to length of term. 1953 Comp., § 7-9-19, enacted by Laws 1955, ch. 53, § 3.

NMSA 1978, § 19-8-17 Relinquishment of permits for conversion

19-8-17. Relinquishment of permits for conversion Any legal owner and holder of any placer prospecting permit issued by the commissioner prior to the effective date of this act, if not in default of any of the provisions thereof, may relinquish the same to the state and, upon application filed at the time of filing such relinquishment, the commissioner shall issue a lease in accordance with the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978]. 1953 Comp., § 7-9-20, enacted by Laws 1955, ch. 53, § 4.

NMSA 1978, § 19-8-18 Term of leases

19-8-18. Term of leases All leases issued under the provisions of Sections 19-8-14 through 19-8-33 NMSA 1978 shall be for a primary term of three years and as long thereafter as any mineral or minerals in paying quantities be produced or mined from the lands, subject to the continued payment of annual rentals. If lessee shall fail to discover and produce minerals in paying quantities during the primary term of the lease, the lessee may continue the lease in full force and effect for an additional or secondary term of two years and as long thereafter as any mineral or minerals in paying quantities be produced or mined from the leased land, by paying each year in advance ten times the rental provided in the primary term. Provided, however, if the lessee shall fail to discover and produce minerals in paying quantities during the secondary term of the lease, the lessee of record or the record owner of an approved assignment may continue the lease, as to the portion held by him, in full force and effect for an additional or tertiary term of five years and so long thereafter as any mineral or minerals in paying quantities by [be] produced or mined from the leased land, by paying each year in advance three dollars ($3.00) per acre per year as rental. If the lessee shall fail to discover and produce minerals in paying quantities during the tertiary term of the lease, the lessee of record or the record owner of an approved assignment may continue the lease, as to the portion held by him, in full force and effect for an additional or quarternary [quaternary] term of five years and so long thereafter as any mineral or minerals in paying quantities be produced or mined from the leased land, by paying each year in advance of the lease anniversary date ten dollars ($10.00) per acre per year as rental, plus a sum as advance royalty computed as follows: for the 11th year, ten dollars ($10.00) per acre per year; for the 12th year, twenty dollars ($20.00) per acre per year; for the 13th year, thirty dollars ($30.00) per acre per year; for the 14th year, forty dollars ($40.00) per acre per year; and for the 15th year, fifty dollars ($50.00) per acre per year. Provided, however, upon the commencing of the production of minerals in paying quantities, the principal sum so paid as advance royalty for the lease year in which the mineral is produced and the advance royalty paid for the two previous years shall be credited against the royalty payable hereunder to the lessor. 1953 Comp., § 7-9-21, enacted by Laws 1955, ch. 53, § 5; 1959, ch. 42, § 1; 1977, ch. 147, § 1.

NMSA 1978, § 19-8-19 [Terms of leases; stipulation of conditions under statute; filing and recording.]

19-8-19. [Terms of leases; stipulation of conditions under statute; filing and recording.] The record owners or owner of any mineral lease or approved assignment thereof heretofore issued by the commissioner and maintained in good standing may enter into a stipulation with the commissioner of public lands making the terms and conditions of this act [19-8-18, 19-8-19 NMSA 1978] a part of any such existing lease, the same as if said provisions had been a part of said lease when issued. The commissioner may charge a fee not to exceed ten dollars ($10.00) for the filing and recording of such stipulation. Provided, further, that if for any reason beyond the control of the lessee production of minerals in paying quantities shall cease after the secondary term has expired, the producing lessee may, with the written permission of the commissioner, continue said lease in operation and effect from year to year for an additional period not to exceed three (3) years by continued payment in advance of annual rentals at the rate provided in the secondary term of the lease. 1953 Comp., § 7-9-21.1, enacted by Laws 1959, ch. 42, § 2.

NMSA 1978, § 19-8-19.1 Suspension of lease requirement; authorization by commissioner; causes; duration

19-8-19.1. Suspension of lease requirement; authorization by commissioner; causes; duration A. In all cases where the lessee of a valid lease issued under the provisions of Sections 19-8-14 through 19-8-33 NMSA 1978, or the record owner of an approved assignment of such lease, provides to the commissioner of public lands proof of discovery on such lease of an ore body containing valuable mineral deposits deemed to be of merchantable quality and quantity, the commissioner of public lands upon proper application by the lessee or the record owner and after notice and hearing shall authorize a suspension of the lease during either the primary, secondary, tertiary, quaternary or indeterminable terms of such lease for such period as may be fixed by him if the commissioner is satisfied that: (1) marketing conditions beyond the control of the lessee are such that the lease cannot be mined and the ore marketed except at a loss; or (2) temporary conditions exist beyond the control of the lessee, with regard to the leased land then being mined, which would operate to prevent the mining of the maximum minable ore in keeping with safe mining practices. B. A suspension authorized by the commissioner pursuant to the provisions of Subsection A of this section shall take effect as of the date of the commissioner's decision and shall suspend the lease for the period of such suspension, but in no event shall any single suspension be for a period longer than five years. C. All obligations of the lessee under a lease suspended pursuant to the provisions of this section shall be suspended, including the payment of rentals and advance royalties; provided, however, that the lessee shall pay an annual rental of sixty dollars ($60.00) per acre per year for each year of suspension. D. A suspension authorized by the commissioner pursuant to this section shall not subject the suspended lease to the provisions of Section 19-8-20 NMSA 1978. 1978 Comp., § 19-8-19.1, enacted by Laws 1983, ch. 3, § 1.

NMSA 1978, § 19-8-20 Leases; stipulation; rental

19-8-20. Leases; stipulation; rental The record owners or owner of any mineral lease or approved assignment thereof heretofore issued by the commissioner, which lease has not expired by its own terms, which has not been canceled by the commissioner and which has otherwise been maintained in good standing, may enter into a stipulation with the commissioner of public lands making the terms and conditions of Sections 19-8-14 through 19-8-33 NMSA 1978 a part of any such existing lease, the same as if said provisions had been a part of said lease when issued. In such case, the basic royalty payable to the lessor on production thereafter obtained from the stipulated lease or portion thereof shall be at the rate set in new leases then being issued by the lessor. The commissioner may charge a fee not to exceed ten dollars ($10.00) for the filing and recording of such stipulation. If production in paying quantities be had during any of the aforesaid set terms and thereafter ceases before all of the set terms would have expired, the lease shall be deemed to be a nonproducing lease from that date and lessee shall have the unexpired portion of said set term and any subsequent terms within which to resume production in paying quantities. When such production is resumed, the term of the lease shall continue for so long thereafter as minerals in paying quantities be produced or mined from the leased land. In such cases, the rental rate for the lease or the portion thereof, shall be the rental provided in the term in which such production is resumed; the new rental shall be payable on the anniversary date next following the date production is resumed. Provided, further, that if for any reason beyond the control of the lessee production of minerals in paying quantities shall cease after all of the set terms have expired, the producing lessee may, with the written permission of the commissioner, continue said lease in operation and effect from year to year for an additional period not to exceed three years by continued payment in advance of annual rentals at the rate provided in the final term of the lease. 1953 Comp., § 7-9-21.2, enacted by Laws 1977, ch. 147, § 2.

NMSA 1978, § 19-8-21 Rentals

19-8-21. Rentals All leases issued by the commissioner shall provide for an annual rental to be paid by the lessee in advance, the amount thereof to be fixed by the commissioner, but in no case shall the same be less than five cents (5¢) per acre for the primary term nor less than fifty cents (50¢) per acre for the secondary term; provided that the annual rental for any one lease shall not be less than ten dollars ($10.00). 1953 Comp., § 7-9-22, enacted by Laws 1955, ch. 53, § 6.

NMSA 1978, § 19-8-22 Royalty

19-8-22. Royalty In addition to the annual rental, lessee shall be required to pay to the commissioner a royalty of not less than two percent (2%) of the gross returns from the smelter, mill, reduction process or other sale, less reasonable transportation and smelting or reduction charges, if any, of all ores or materials mined and extracted from the land. In addition, lessee shall pay to the commissioner as royalty not less than two percent (2%) of any and all premiums and bonuses received in connection with the discovery, production or marketing. Provided that on deposits of rare earths, precious stones or semi-precious stones, and on uranium, thorium, plutonium or any other materials which have been or may hereafter be determined by the atomic energy commission to be peculiarly essential to the production of fissionable materials, lessee shall pay a royalty to be agreed upon by the lessee and the commissioner, but not less than five percent (5%) of the gross returns from the smelter, mill, reduction process or other sale, less reasonable transportation and smelting or reduction charges, if any, of all ores or materials mined and extracted from the land. In addition, lessee shall pay to the commissioner as royalty not less than five percent (5%) of any and all premiums and bonuses received in connection with the discovery, production or marketing of such ores or materials. Accounting for all royalties shall be made on the twentieth (20th) day of the month following the month of sale or receipt of premium or bonus. 1953 Comp., § 7-9-23, enacted by Laws 1955, ch. 53, § 7.

NMSA 1978, § 19-8-23 Covenants to market and develop

19-8-23. Covenants to market and develop All leases issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall contain provisions requiring the lessees to market the mineral or minerals within a reasonable time after production is had. In addition, said leases shall contain provisions requiring the lessees to use reasonable diligence, after production is had, in prospecting for and developing all commercial deposits of mineral or minerals. The commissioner may cancel leases for violation of such marketing and developing provisions only after notice and in the manner as provided in Section 12 [19-8-27 NMSA 1978] of this act, and in all cases of controversy arising out of such cancellation the lessee shall have the burden of proof by a preponderance of the evidence that further development is not warranted, or is unreasonable, or that a market is not available, as the case may be. 1953 Comp., § 7-9-24, enacted by Laws 1955, ch. 53, § 8.

NMSA 1978, § 19-8-24 Bonds

19-8-24. Bonds Before any lessee of minerals shall commence development or operations upon the lands, such lessee shall execute and file with the commissioner a good and sufficient bond or undertaking in an amount to be fixed by the said commissioner, but not less than five thousand dollars ($5,000), in favor of the state of New Mexico, for the benefit of any surface lessee, patentee or contract purchaser, to secure the payment for such damage to the livestock, water, crops or other tangible improvements on such lands as may be suffered by reason of development, use and occupation of such lands by the said mining lessee. Provided in lieu thereof any lessee owning one or more mining leases may file a blanket bond in an amount to be fixed by the commissioner, but not less than ten thousand dollars ($10,000), covering all leases then owned or thereafter acquired by him. Provided, further, that if any such surface lessee, patentee or contract purchaser shall file with the commissioner a waiver duly executed and acknowledged by him of his right to require such bond, such development, occupation and use of the lands by a mineral lessee may be permitted without the bond herein required. In addition, lessee may be required to furnish a bond in a reasonable amount to be set by the commissioner to guarantee payment of royalties to become due under the lease. 1953 Comp., § 7-9-25, enacted by Laws 1955, ch. 53, § 9; 1957, ch. 42, § 1.

NMSA 1978, § 19-8-25 Inspection of records; reports

19-8-25. Inspection of records; reports The commissioner or his representative shall have the right to inspect all records, books or accounts pertaining to the mining, extraction, transportation and returns of ores taken from such leased lands, and at the request of the commissioner the lessee shall furnish such reports, samples, logs, assays or cores within reasonable bounds as he may deem to be necessary to the proper administration of the lands under lease. 1953 Comp., § 7-9-26, enacted by Laws 1955, ch. 53, § 10.

NMSA 1978, § 19-8-26 Relinquishment of leases

19-8-26. Relinquishment of leases With the consent of the commissioner, any lease issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] may be relinquished in whole or in part to the state of New Mexico; provided, however, the commissioner shall not approve any relinquishment of an undivided interest therein nor less than a legal subdivision. 1953 Comp., § 7-9-27, enacted by Laws 1955, ch. 53, § 11.

NMSA 1978, § 19-8-27 Violation of lease; notice; forfeiture for noncompliance with demand

19-8-27. Violation of lease; notice; forfeiture for noncompliance with demand The commissioner is authorized to cancel any lease issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] for nonpayment of rentals, for nonpayment of royalties or for violation of any of the terms, covenants or conditions thereof, but before any such cancellation shall be made, the commissioner must mail to the lessee or assignee, by registered or certified mail, addressed to the post-office address of the lessee or assignee as shown by the records of the office of the commissioner, a notice of intention to cancel the lease, specifying the default for which the lease is subject to cancellation. No proof of receipt of notice shall be necessary, and thirty days after the mailing the commissioner may enter cancellation unless the lessee shall have sooner remedied the default. 1953 Comp., § 7-9-28, enacted by Laws 1955, ch. 53, § 12; 1971, ch. 97, § 1.

NMSA 1978, § 19-8-28 Assignment of leases; form; approval; effect; lands in production

19-8-28. Assignment of leases; form; approval; effect; lands in production All leases issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall be assignable in whole or in part; provided, however, that no assignment of an undivided interest in the lease or any part thereof, or any assignment of less than a legal subdivision, shall be recognized or approved by the commissioner. The assignments provided for herein shall be executed and acknowledged in the manner prescribed for conveyance of real estate in this state and shall be filed in triplicate in the office of the commissioner, who shall retain two (2) copies of the said assignment in his office as a public record and shall record one (1) of same in permanent form in his office as a public record and shall return one (1) of the duplicate copies to the person entitled thereto. The approval of the commissioner shall be noted upon all copies of the said assignment. The commissioner shall prescribe the form to be used for such assignments and shall fix a reasonable fee for the filing, recording and approval of same. The commissioner shall have the right to refuse approval of any assignment not executed in proper form or by the proper person or persons, or when the lease is not in good standing as to the assigned tracts, or when litigation is pending affecting the lease or the interest of any person therein. Upon approval by the commissioner of an assignment the assignor shall stand relieved from all obligations to the state with respect to the lands embraced in the assignment and the state shall likewise be relieved from all obligations to the assignor as to such tract or tracts, and thereupon the assignee shall succeed to all of the rights and privileges of the assignor with respect to such tracts and shall be held to have assumed all of the duties and obligations of the assignor to the state as to such tracts. Provided, however, the record owner of any mineral lease may enter into any contract for the development of the leasehold premises or any portion thereof, or may create overriding royalties or obligations payable out of production, or enter into any other agreements with respect to the development of the leasehold premises or disposition of the production therefrom, and it shall not be necessary for any such contracts, agreements or other instruments to be approved by the commissioner of public lands; but nothing herein contained shall relieve the record title owner of such lease from complying with any of the terms or provisions thereof, and the commissioner shall look solely and only to such record owner for compliance therewith, and in any controversy respecting any such contracts, agreements or other instruments entered into by such lessee with other persons the state of New Mexico or the commissioner of public lands shall not be a necessary party. All such contracts and other instruments may be filed either in the office of the commissioner of public lands or recorded in the office of the county clerk of the county where the lands are situated, and the filing or recording thereof shall constitute notice to all the world of the existence and contents of the instruments so filed or recorded. The commissioner may prescribe a reasonable fee for the filing of such instruments in the office of the commissioner of public lands. The production of minerals upon any lands embraced in any mineral lease shall continue such lease as to all of the lands embraced therein for as long thereafter as any mineral or minerals in paying quantities are being produced in accordance with the provisions thereof, regardless of any assignment of all or a portion of the lease which may have been made prior or subsequent to the production. 1953 Comp., § 7-9-29, enacted by Laws 1955, ch. 53, § 13.

NMSA 1978, § 19-8-29 Improvements removable upon termination of lease

19-8-29. Improvements removable upon termination of lease Upon termination of any lease issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] by reason of forfeiture, surrender, expiration of term or for any other reason, lessee may remove all improvements and equipment as can be removed without material injury to the premises; provided, however, that all rents and royalties have been paid and that such removal is accomplished within two years from the termination date or before such earlier date as the commissioner may set upon thirty (30) days' written notice to the lessee. All improvements and equipment remaining upon the premises after the removal date as set in accordance with this section shall be forfeited to the state of New Mexico without compensation. 1953 Comp., § 7-9-30, enacted by Laws 1955, ch. 53, § 14.

NMSA 1978, § 19-8-30 Area of lease

19-8-30. Area of lease Leases issued under the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall cover a specified area conforming to a legal subdivision or subdivisions and shall not exceed sixteen (16) subdivisions, being 640 [six hundred and forty acres] more or less, all of which shall be contiguous; provided, however, that leases issued in exchange for existing permits as provided by Section Four [19-8-17 NMSA 1978] of this act need not be contiguous if all legal subdivisions be situate and lie within the same township and range. 1953 Comp., § 7-9-31, enacted by Laws 1955, ch. 53, § 15.

NMSA 1978, § 19-8-31 Posting of open acreage; simultaneous applications

19-8-31. Posting of open acreage; simultaneous applications When newly acquired acreage is posted to the tract books, or when other acreage is designated upon the tract books to be open acreage after having been previously leased or after having been withdrawn from leasing by the commissioner, all applications for mineral lease filed thereon within three (3) land office work days after such posting or designation shall be considered as simultaneous applications. 1953 Comp., § 7-9-32, enacted by Laws 1955, ch. 53, § 16.

NMSA 1978, § 19-8-32 Rules and regulations authorized

19-8-32. Rules and regulations authorized The commissioner shall be, and he is hereby, authorized and empowered to adopt such uniform and reasonable rules and regulations as he may deem necessary to carry out the provisions of this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] and not inconsistent therewith, said rules to be posted in a conspicuous place in the state land office for a period of at least ten consecutive days. 1953 Comp., § 7-9-33, enacted by Laws 1955, ch. 53, § 17.

NMSA 1978, § 19-8-33 Withholding of lands from lease authorized; lease by competitive bidding authorized

19-8-33. Withholding of lands from lease authorized; lease by competitive bidding authorized Nothing contained in this act [19-8-14 to 19-8-18, 19-8-21 to 19-8-33 NMSA 1978] shall be construed as requiring the commissioner to offer any tract or tracts of land for lease, but the commissioner shall have power to withhold any tract or tracts from leasing for said mineral purposes, if, in his opinion, the best interests of the state would be served by so doing, and nothing contained in this act shall be construed as prohibiting the commissioner from rejecting any application at any time prior to approval and offering acreage embraced therein for lease upon competitive bidding by sealed bids or at public auction to the bidder offering the highest bonus in addition to the annual rentals as set by the commissioner. Provided, however, that notice of such public sale shall be given by posting in a conspicuous place in the state land office, not less than ten (10) days before the date of sale, a notice of same, specifying the day and hour when, and the place where, the sale will be held, giving a description of the lands in each tract to be offered for lease. The notice shall also state whether the sale shall be conducted through sealed bids or at public auction and any other such information as the commissioner may deem necessary. Where two or more sealed bids are received making the same offer on the same tract, the commissioner shall award the lease thereon in accordance with such regulations as he may prescribe. 1953 Comp., § 7-9-34, enacted by Laws 1955, ch. 53, § 18.
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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