New Mexico Administrative Code
Title 19 - NATURAL RESOURCES AND WILDLIFE
Chapter 8 - COAL MINING
Part 34 - EXEMPTION FOR COAL EXTRACTION INCIDENTAL TO THE EXTRACTION OF OTHER MINERALS
Section 19.8.34.3407 - STOCKPILING OF MINERALS
Universal Citation: 19 NM Admin Code 19.8.34.3407
Current through Register Vol. 35, No. 24, December 23, 2024
A. Coal. Coal extracted and stockpiled may be excluded from the calculation of cumulative production until the time of its sale, transfer to a related entity or use:
(1) up to an amount equaling a
12-month supply of the coal required for future sale, transfer or use as
calculated based upon the average annual sales, transfer and use from the
mining area over the two preceding years; or
(2) for a mining area where coal has been
extracted for a period of less than two years, up to an amount that would
represent a 12-month supply of the coal required for future sales, transfer or
use as calculated based on the average amount of coal sold, transferred or used
each month.
B. Other minerals.
(1) The director shall disallow all
or part of an operator's tonnages of stockpiled other minerals for purposes of
meeting the requirements of this part if the operator fails to maintain
adequate and verifiable records of the mining area of origin, the disposition
of stockpiles or if the disposition of the stockpiles indicates the lack of
commercial use or market for the minerals.
(2) The director may only allow an operator
to utilize tonnages of stockpiled other minerals for purposes of meeting the
requirements of this part if:
(a) the
stockpiling is necessary to meet market conditions or is consistent with
generally accepted industry practices; and
(b) except as provided in Paragraph (3) of
Subsection B of
19.8.34.3407 NMAC, the stockpiled
other minerals do not exceed a 12-month supply of the mineral required for
future sales as approved by the director on the basis of the exemption
application.
(3) The
director may allow an operator to utilize tonnages of stockpiled other minerals
beyond the 12-month limit established in Paragraph (2) of Subsection B of
19.8.34.3407 NMAC if the operator
can demonstrate to the director's satisfaction that the additional tonnage is
required to meet future business obligations of the operator, such as may be
demonstrated by a legally binding agreement for future delivery of the
minerals.
(4) The director may
periodically revise the other mineral stockpile tonnage limits in accordance
with the criteria established by Paragraphs (2) and (3) of Subsection B of
19.8.34.3407 NMAC based on
additional information available to the director.
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