Part 2. LEASING FOR GENERAL MINING, version 2 (§ 19.2.2.1 to 19.2.2.80)

Mineral leasing under 19.2.2 NMAC will be considered only in areas shown as open for general mining upon the tract books of the NMSLO. The commissioner may designate areas for mineral leasing based upon the recommendations of the commissioner's staff or upon nomination submitted …

Notwithstanding any other provision of 19.2.2 NMAC, and at any time prior to execution of a mineral lease, the commissioner may, at the commissioner's discretion, withhold from mineral leasing any area subject to the commissioner's jurisdiction.

Prior to holding a competitive bid sale for mineral leasing under 19.2.2 NMAC, the commissioner will provide notice to the public. The notice will set forth the place, date and time of the sale. The notice will describe the area to be covered by the mineral lease and the royalty …

When the commissioner decides to offer a mineral lease for sale, the commissioner will auction the lease by requesting sealed or oral bids in accordance with the notice of sale. Persons shall bid by offering to pay a bonus for the mineral lease. Unless the commissioner declares t…

If the commissioner decides to conduct the public auction by sealed bid, this section shall govern the bidding process. A. Bidders shall submit their bid to the commissioner in a sealed envelope pursuant to the instructions provided in the notice of sale. The sealed envelope shal…

If the commissioner decides to conduct the public auction by oral bid, this section shall govern the bidding process. A. Bidders shall register with NMSLO and obtain an identification number pursuant to the instructions in the notice of sale. B. Bidders shall make their bids oral…

In the event the sale is by sealed bids and two or more bidders submit the highest bonus, then the commissioner may provide written notice of a tie to all bidders for the tract. Such notice may request the bidders to offer an additional bonus in the manner specified in the notifi…

A. Within fifteen days of being notified that it is the highest bidder, the highest bidder shall either submit a new disclosure statement to NMSLO or supplement an active disclosure statement previously submitted to NMSLO under 19.2.2.21 NMAC. B. A person with personal knowledge …

Pursuant to Article XIII, Section 2, of the New Mexico State Constitution, the commissioner has jurisdiction over all lands and related resources that the United States granted and confirmed to the state of New Mexico under the New Mexico Enabling Act. This rule, 19.2.2 NMAC, gov…

The highest bidder shall provide the following information in its disclosure statement: A. identity of the highest bidder's predecessor and parent organizations and affiliates, if any; B. description of the highest bidder's previous mining experience, including a list of mines cu…

Any person may apply to become pre-qualified to be eligible to obtain a mineral lease by submitting a disclosure statement to the commissioner. Unless submitted for the purpose of obtaining the commissioner's approval for assignment of a particular lease, the disclosure statement…

Prior to execution of a lease, the commissioner may determine that the mineral sale is not in the best interest of the trust and declare the sale void. The commissioner may declare a sale void if the commissioner determines that the bids are too low, not in accordance with law or…

A. Unless the commissioner declares the sale void or withholds the lands from mining, the commissioner and the highest bidder shall enter into a mineral lease. The commissioner shall prepare a proposed mineral lease in accordance with this rule, in triplicate, and mail all three …

Notwithstanding the issuance of a mineral lease, no mining activity shall be conducted on trust surface estate except in accordance with a written reclamation plan approved by the commissioner. Reclamation plans consist of the mining permit or other authorizations issued by the p…

A. The lessee shall apply for a permit from the permitting agency in accordance with the New Mexico Mining Act or comparable law, whichever applies. The lessee shall submit copies of its permit application and all supporting documents to the commissioner at the same time that it …

A. After the lessee obtains the permit or other final authorization from the permitting agency in accordance with 19.2.2.25 NMAC, the lessee shall submit a complete and accurate copy of the permit or other authorization to the commissioner. The commissioner will review the permit…

After the permitting agency issues the mining permit or other authorization and commissioner reviews the permit and approves any supplemental requirements, the commissioner will prepare a reclamation plan. The reclamation plan will consist of the permit or other authorization iss…

The lessee shall conduct mining activity in strict compliance with an approved reclamation plan. The reclamation plan in effect at any given time authorizes only such mining activity as is authorized under the permit or other authorization issued by the permitting agency and expr…

The lessee shall obtain an additional reclamation plan before conducting any mining activity that is not authorized under its existing reclamation plan. The lessee shall obtain the additional reclamation plan to cover the new mining activity by following the procedure set out in …

N. M. Const. Art. XIII; Section 19-1-1 et seq. NMSA 1978; Section 19-6-1 et seq. NMSA 1978; Section 19-7-1 et seq. NMSA 1978; Section 19-8-1 et seq. NMSA 1978; Section 19-14-1 et seq. NMSA 1978.

The lessee's obligation to reclaim the trust surface estate in accordance with the reclamation plan in effect at the time the mineral lease is suspended, relinquished or otherwise terminated for any reason shall survive such suspension, relinquishment or termination and continue …

No minerals shall be produced except in substantial compliance with a written mine development plan approved by the commissioner. The mine development plan shall provide for efficient and orderly development of mineral reserves and prevention of waste. The mine development plan s…

The lessee shall submit a proposed mine development plan to the commissioner, who shall review the plan and thereafter notify the lessee, in writing, of any deficiencies. The lessee shall then submit a modified proposal addressing the deficiencies and any other issues raised by t…

If the lessee determines that it is no longer feasible or economically prudent to follow the approved mine development plan, the lessee shall submit a proposed modification of the plan to the commissioner, together with the reasons that modification is required. The lessee shall …

No permanent pit, pile, impoundment or any other permanent manmade feature or improvement shall be placed on trust surface estate unless specifically approved by the commissioner. The commissioner may refuse to approve any such permanent feature or improvement that would prevent …

A mineral lease issued under this rule grants the lessee the right to enter the premises for mining purposes, together with the right to use and occupy so much of the premises as may be necessary or convenient to carry out such mining purposes. A mineral lease does not authorize …

Unless waived by the commissioner in writing, and before the commencement of mining activity, the lessee shall provide financial assurance to guarantee payment of royalties and to comply with the terms and conditions of the mineral lease other than reclamation, which is covered u…

Before commencement of mining activity, the lessee shall execute and provide financial assurance to secure payment for potential injuries to tangible improvements upon the trust surface estate covered by a mineral lease that may result from the lessee's mining activity. The commi…

Lessees having multiple leases with the commissioner may, with the approval of the commissioner, provide one instrument to fulfill their total financial assurance obligations under all such leases regarding the protection of tangible surface improvements. The commissioner shall f…

The financial assurance required under 19.2.2.36 NMAC, 19.2.2.37 NMAC and 19.2.2.38 NMAC is in addition to that which the permitting agency may require pursuant the New Mexico Mining Act or comparable law, whichever applies. If the commissioner determines that the amount or cover…

Permanent.

Forms for all financial assurance instruments required by the commissioner shall either be prescribed by the commissioner or be in a form approved by the commissioner. In addition, the permitting agency must approve the form of financial assurance required for reclamation in acco…

A. The commissioner has the right to inspect all records and books of account pertaining to the operations under a mineral lease, including records and books relating to mining, production, extraction, processing, transportation, reduction, returns and reclamation. At the request…

All mineral leases made under 19.2.2 NMAC shall include and be subject to the statutory covenants to operate and develop the premises and minerals under lease in a workmanlike manner, as set forth at Section 19-8-13 NMSA 1978 and to market and develop, as set forth at Section 19-…

The lessee shall be responsible for compliance with all laws, regulations, rules, ordinances, permits, licenses and other requirements applicable to the leasehold estate and the operations thereon. Upon receiving notice from a government agency of an actual, potential or alleged …

A. All mineral leases shall be for a primary term of three years and so long thereafter as minerals are produced or mined in paying quantities. B. Annual rent during the primary term shall be one dollar per acre, which amount shall be paid in advance each year.

A. If minerals are not produced or mined in paying quantities during the primary term, then the lessee may continue the lease in full force and effect through a secondary term. The secondary term shall be two years and so long thereafter as minerals are produced or mined in payin…

A. If minerals are not produced or mined in paying quantities during the primary or secondary term, then the lease may be continued into the tertiary term. The tertiary term shall be five years and so long thereafter as minerals are produced or mined in paying quantities. B. Annu…

A. If minerals are not produced or mined in paying quantities during the primary, secondary or tertiary term, then the lease may be continued into the quaternary term. The quaternary term shall be five years and so long thereafter as minerals are produced or mined in paying quant…

A. In the eleventh year of the lease, the lessee shall pay, in addition to rent, ten dollars per acre as an advance royalty. B. In the twelfth year of the lease, the lessee shall pay, in addition to rent, twenty dollars per acre as an advance royalty. C. In the thirteenth year of…

Upon the commencement of production of minerals in paying quantities, the principal sum paid as an advance royalty for the year in which such production commences, and the principal sums so paid for the two previous years, shall be credited against the royalty otherwise payable t…

March 14, 2001, unless a later date is cited at the end of a section.

If production in paying quantities commences during the primary or any subsequent term and thereafter ceases before the quaternary term would have expired had there been no such production, then the lease shall be deemed a "non-producing" lease on the date that production in payi…

If for any reason beyond the lessee's control, production in paying quantities ceases after the quaternary term would have expired, then the lessee may, with the written approval of the commissioner, continue the lease from year to year for an additional period not to exceed thre…

After notice and hearing, the commissioner shall suspend a mineral lease for a period not exceeding five years if the commissioner finds: A. the lessee is not in default; B. suspension of the lease will not affect compliance with safety, reclamation or environmental requirements;…

All lease obligations, including the obligation to pay rent and royalties, shall be suspended during the period the mineral lease is suspended. Provided, however, that the lessee shall pay the annual rental required in Section 19-8-19.1 NMSA 1978 for each year of suspension. Susp…

Within five days after commencing production, the lessee shall notify the commissioner of such production in writing, giving the date that production commenced, and stating specifically the legal subdivision, section, township and range where production occurred. The lessee shall…