There is hereby created a restricted district comprising townships 3 to 15 south inclusive, ranges 34 to 39 east inclusive; townships 16 to 20 south inclusive, ranges 28 to 39 east inclusive; and townships 21 to 26 south inclusive, ranges 34 to 39 east inclusive, N.M.P.M. No oil and gas leases upon any state lands within said restricted district shall be made except upon competitive bidding by sealed bids or at public auction as hereinafter provided. No lands within the boundaries of said restricted district shall be eliminated therefrom by the commissioner, but the commissioner may, from time to time, when in his judgment the interest of the state requires such action, extend the boundaries thereof and create other restricted districts, or areas, within which oil and gas leases may be made only upon competitive bidding by sealed bids or at public auction. Notice of the extension of the boundaries of said district, or of the creation of other districts, shall be given in the same manner as provided for giving notice of change in rental districts, as provided by Section 4 [19-10-15 NMSA 1978] of this act. Nothing contained in this act [19-10-1, 19-10-12, 19-10-15 to 19-10-18, 19-10-22 NMSA 1978] shall be construed as requiring a uniform annual rental to prevail over the entire area embraced in any restricted district. The commissioner may, when it is deemed for the best interests of the state, fix the annual rental to be paid under the terms of each lease covering lands in any restricted district at the time notice of sale thereof is given, as hereinafter provided, without regard to the rental prevailing in the district in which the lands offered for lease are situated, and in such cases the provisions of Section 4 [19-10-15 NMSA 1978] hereof, except those relating to the maximum and minimum rental, shall not apply.
History: Laws 1929, ch. 125, § 7; C.S. 1929, § 132-407; Laws 1931, ch. 18, § 5; 1941 Comp., § 8-1109; 1953 Comp., § 7-11-10.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Purpose of competitive bidding. — Competitive bidding was introduced as a means of obtaining the greatest returns from the leases. Atlantic Oil Producing Co. v. Crile, 1930-NMSC-040, 34 N.M. 650, 287 P. 696.
Effect of high bid on preference right holder. — This section is a "rule of the state land office" within terms of oil and gas lease executed in 1924, and the holder of a preference right under that form of lease must meet the bonus offered by the highest bidder at such auction to be entitled to exercise his right and take the lease. State ex rel. Malone v. Crile, 1929-NMSC-095, 34 N.M. 520, 284 P. 762.
Withdrawal of lands from restricted districts. — By necessary implication the land commissioner has authority to rescind orders promulgated by him adding lands to restricted districts for oil and gas leasing, and the procedure to be followed in withdrawing any lands from a restricted district is substantially the same as set out in Section 19-10-15 NMSA 1978. 1952 Op. Att'y Gen. No. 52-5604.
Structure 2021 New Mexico Statutes
Article 10 - Lease of Oil and Gas Lands
Section 19-10-1 - [Issuance of leases authorized; lands subject; carbon dioxide leases exempted.]
Section 19-10-2 - Definitions.
Section 19-10-3 - Classification of state lands for oil and gas leasing.
Section 19-10-4 - Authorization to lease; lease provisions.
Section 19-10-4.2 - Discovery form of lease; regular restricted or premium restricted lands.
Section 19-10-4.3 - Development form of lease; premium restricted land.
Section 19-10-5 - Existing leases; stipulation.
Section 19-10-5.1 - Amendment of lease to lower royalty rate for oil wells under certain conditions.
Section 19-10-6 - Shut-in oil wells; conditions.
Section 19-10-7 - Exploratory form of lease; different term of years.
Section 19-10-8 - [Extension of terms of leases.]
Section 19-10-9 - [Existing leases; stipulation to bring helium gas within terms.]
Section 19-10-12 - [New lease or extension where no discovery made; preference right; conditions.]
Section 19-10-13 - [Assignment of leases; procedure; effect.]
Section 19-10-14 - [Application for lease; form; deposit; appraisement.]
Section 19-10-16 - [Restricted districts; method of leasing; added area; notice; rental.]
Section 19-10-18 - No bids made; subsequent lease.
Section 19-10-19 - [Withholding lands from lease authorized.]
Section 19-10-21 - [Rules and regulations; amendment; rescission; effective date.]
Section 19-10-23 - Appeal of commissioner's decision.
Section 19-10-24 - [Contesting claims; jurisdiction of district court; appeal and error.]
Section 19-10-25 - [Proof of commissioner's records.]
Section 19-10-28 - [Lessee to purchase prior improvements on lands; proof of payment.]
Section 19-10-29 - [Removal of certain improvements on cancellation or forfeiture of lease.]
Section 19-10-30 - [Rules and regulations authorized.]
Section 19-10-32 - [Acknowledgments required; commissioner excepted.]
Section 19-10-33 - [Contracts relating to oil and gas rights; filing for record in land office.]
Section 19-10-34 - [System of records; indexing; public inspection.]
Section 19-10-35 - [Tract book system for oil and gas lands.]
Section 19-10-36 - [Rules and regulations; protection of instruments and records.]
Section 19-10-37 - [Filing and recording fees; disposition; expenses payable from maintenance fund.]
Section 19-10-38 - [Repeal and saving clause.]
Section 19-10-42 - [Distribution of suspense funds after litigation is completed.]
Section 19-10-43 - [Suit by state to determine rights.]
Section 19-10-44 - [Intervention in pending litigation by attorney general.]
Section 19-10-46 - [Cooperative agreements; requisites for approval.]
Section 19-10-47 - [Amendment of leases to conform with cooperative agreements.]
Section 19-10-49 - [Validating act.]
Section 19-10-50 - Oil, gas and mineral leases on state park lands.
Section 19-10-53 - [State participation in pooling and communitization agreements authorized.]
Section 19-10-55 - [Validation of oil and gas leases.]
Section 19-10-57 - Rules; regulations; notice; hearing.
Section 19-10-58 - Rules; regulations; record; filing with supreme court librarian.
Section 19-10-59 - Reporting and rendition forms to be adopted by rule or regulation.
Section 19-10-61 - [Sale or exchange of royalty gas taken in kind.]
Section 19-10-63 - [Validation of oil and gas leases; 1967 act.]
Section 19-10-64 - [Royalties paid in oil; sale of;] purpose of act.
Section 19-10-65 - Definitions.
Section 19-10-66 - Payment of royalties of the state in oil on demand.
Section 19-10-67 - Sale of state oil royalties; preference; authority of commissioner.
Section 19-10-68 - Application for preference in sale of royalty oil; requirements.
Section 19-10-69 - Grant of preference based upon application.
Section 19-10-70 - Advertising for bids; priority of bidders; award of oil.