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

The commissioner will approve an assignment of mineral lease, in whole or in part, if the commissioner finds: A. the assignment does not create an undivided interest in the lease or any part thereof; B. the assigned portion of the premises is not less than a legal subdivision; C.…

Assignments of mineral leases shall be upon forms prescribed and furnished by the commissioner. The commissioner's approval of an assignment shall be noted on all copies of the assignment. Assignments shall be executed and acknowledged in the same manner prescribed for conveyance…

The objectives of 19.2.2 NMAC are to obtain revenues from production of minerals; to assure protection and maintenance of trust surface estate and minerals; to provide standard lease terms and conditions; and to provide an efficient process for mineral leasing.

The non-refundable fee for filing an assignment of a mineral lease shall be set forth in the schedule of fees.

Upon approval by the commissioner of a valid mineral lease assignment, the assignor shall stand relieved from all lease obligations to the commissioner with respect to the state trust resources embraced in the assignment. The state shall likewise be relieved from all obligations …

Production of minerals in paying quantities from anywhere on the premises, as defined by the original lease, will continue the term of the lease and all assignments thereof.

The lessee shall not sublease the mineral lease.

Notwithstanding any other provision herein, side agreements that do not constitute assignments but which define or set out the various interests of other parties in a mineral lease may be filed with the commissioner as miscellaneous instruments upon payment of the filing fee set …

To transfer an interest in a lease owned by a deceased resident of New Mexico to the decedent's heirs or devisees, proper probate proceedings must be held in accordance with the New Mexico Probate Code. Certified copies of such proceedings showing proper legal authority to transf…

To transfer an interest in a lease owned by a nonresident decedent (a person who was not a resident of New Mexico at the time of the person's death) to the decedent's heirs or devisees, the decedent's estate must be probated in the state of such decedent's residence and ancillary…

The commissioner may cancel any mineral lease for non-payment of rentals, non-payment (or underpayment) of royalties and for violation of any of the terms, covenants or conditions of the mineral lease. However, before any such cancellation shall be made, the commissioner shall ma…

With the consent of the commissioner, a mineral lease in good standing may be relinquished, in whole or in part, upon approval of the commissioner and payment of the non-refundable filing fee in accordance with the schedule of fees. However, the commissioner will not approve reli…

All rights not expressly granted under the mineral lease are reserved to the commissioner. Notwithstanding the issuance of a mineral lease, the commissioner specifically reserves the right to: A. lease the premises for grazing, agricultural or commercial purposes; B. lease the pr…

As used in 19.2.2 NMAC, the following terms have the meaning set forth in this section unless otherwise indicated in the text of this rule. A. "arm's-length sales price" means the sales price resulting from a good faith sale of minerals between an unaffiliated seller and buyer wh…

The commissioner may, at the commissioner's discretion, agree not to exercise one or more of the rights reserved under 19.2.2.69 NMAC upon payment of additional consideration determined by the commissioner.

The commissioner has the right to purchase at any time and from time to time, at the market price prevailing in the area on the date of purchase, all or part of the minerals that may be produced from the premises. (The commissioner may waive this reservation by following the proc…

Lessees shall comply with the requirements for development and closure of roads set forth in 19.2.20 NMAC.

Lessees shall protect the premises and mineral estate from waste or trespass in accordance with Sections 19-6-1 et seq. NMSA 1978.

The lessee shall obtain and exercise water rights on the premises only as approved in writing by the commissioner, in a manner consistent with the mineral lease, the rules issued by the commissioner and New Mexico water law.

All legal actions regarding mineral leases issued under 19.2.2 NMAC shall be brought in the First Judicial District, Santa Fe, New Mexico. New Mexico law shall govern.

Where two persons are both lessees under the same mineral lease, they shall be jointly and severally liable for all obligations imposed by such lease.

The delay of the commissioner in asserting any right of the state under the mineral lease shall under no circumstances constitute a waiver of such right.

Lessee shall pay interest at the rate of one percent per month on any late payment of rents, royalties or other payments required under the mineral lease. If the lessee fails to pay the entire amount owed, then interest shall accrue on the unpaid portion. Interest shall begin to …

Upon termination of the mineral lease by reason of forfeiture, surrender, expiration of term or for any other reason, lessee may, pursuant to Section 19-8-29, remove all improvements and equipment as can be removed without material injury to the premises; provided, however, that …

A. No person shall explore for, extract or produce minerals unless authorized by a mineral lease issued under this rule. B. Notwithstanding the issuance of a mineral lease or special use permit, no person shall conduct any mining activity unless such activity is authorized under …

The commissioner may include in any mineral lease additional terms and conditions not set out in this rule, as the commissioner deems appropriate.

The NMSLO constitutes a "land management agency" within the meaning of the regulations promulgated under the New Mexico Mining Act by the mining and minerals division.