New Mexico Administrative Code
Title 19 - NATURAL RESOURCES AND WILDLIFE
Chapter 2 - STATE TRUST LANDS PART 24 CULTURAL PROPERTIES PROTECTION
Part 3 - LEASING OF POTASSIUM, SULPHUR, SODIUM, PHOSPHORUS AND SIMILAR MINERALS AND THEIR SALTS AND COMPOUNDS EXCEPT SODIUM CHLORIDE
Section 19.2.3.15 - SPECIAL AREA REQUIREMENTS

A. Mining of minerals held in solution in the natural brines shall be permitted within the area west of the Pecos river south of the south boundary of township 20 south, east of the east boundary of range 21 east, and north of the state line.

B. Any wells drilled upon leases issued pursuant to the rules herein, which wells lie within any declared underground water basin, shall, in addition to said rules, conform to the requirements of the state engineer.

C. Location, drilling and well record reports will be required to be submitted to the New Mexico state land office on all wells drilled. The standard forms of the New Mexico oil conservation commission shall be used in submitting these reports.

D. An analysis of the brine, or solution, found in each well must be submitted upon completion of the well, and annually on the anniversary date of the lease thereafter; provided, however, that such an analysis may be required to be submitted more often if deemed necessary by the commissioner.

E. Production reports showing the number of gallons of solution produced by each well in each month shall be submitted monthly in connection with royalty reports showing mineral production, amount sold and the sale price. Such reports shall be submitted no later than the twentieth (20th) day of the next succeeding month.

F. In all cases, there shall be reserved to the state a royalty of not less than five percent (5%) of the amount of value of the minerals produced, such royalty to be computed upon the value of said minerals delivered at the nearest or most accessible railroad shipping point. After the primary term of the lease, royalty shall be at the rate of eight percent (8%) of the next sale price, computed as above.

G. The minimum rental charge for leases will be ten cents ($.10) per acre, payable annually in advance, but the minimum rental shall be no less than one hundred dollars ($100.00) in any event. An application fee as set forth in the schedule of fees will be charged in addition thereto for each application.

H. A good and sufficient bond as provided in 19.2.3.17 NMAC shall be filed before a lease may be issued; provided, however, that such bond shall be conditioned to conform with all the provisions of the lease including but not limited to drilling and plugging requirements.

I. A lease that includes land held under purchase contract(s), or previously patented with reservation of the minerals to the State, shall comply with additional bond requirements as provided by law.

J. A minimum of one (1) well must be drilled for each three hundred twenty (320) acres or fraction thereof encompassed in the lease, must be drilled at the rate of one (1) well the first (1st) year, two (2) the second (2nd) year, and four (4) per year thereafter until the minimum number of wells shall have been drilled. A well, in order to be included in the calculation of minimum requirements, shall be drilled to a depth of seven hundred fifty (750) feet, or through the brine horizon.

K. The term of the lease contemplated herein shall be for a five (5) year definite term, and so long thereafter as said minerals or any of them, in paying quantities, are produced by the lessee from the lands embraced in such lease, subject to all of their terms and conditions as set forth in such lease.