New Mexico Administrative Code
Title 19 - NATURAL RESOURCES AND WILDLIFE
Chapter 15 - OIL AND GAS
Part 8 - FINANCIAL ASSURANCE
Section 19.15.8.11 - ADDITIONAL REQUIREMENTS FOR LETTERS OF CREDIT
Current through Register Vol. 35, No. 18, September 24, 2024
A. The division may accept irrevocable letters of credit issued by national or state-chartered banking associations.
B. Letters of credit shall be irrevocable for a term of not less than five years, unless the applicant shows good cause for a shorter time period.
C. Letters of credit shall provide for automatic renewal for successive, like terms upon expiration, unless the issuer has notified the division in writing of non-renewal at least 30 days prior to expiration.
D. The division may forfeit and collect a letter of credit if not replaced by an approved financial assurance at least 30 days before the expiration date.
E. Authorized representatives of the operator and the depository institution shall execute a document evidencing the letter of credit's terms and conditions.
