For the purpose of more properly conserving the oil and gas resources of the state, the commissioner of public lands may consent to and approve the development or operation of state lands under agreements made by lessees of state land jointly or severally with other lessees of state lands, with lessees of the United States or with others, including the consolidation or combination of two or more leases of state lands held by the same lessee. The agreements may provide for one or more of the following: for the cooperative or unit operation or development of part or all of any oil or gas pool, field or area; for reduction of gas-oil ratios; for repressuring or secondary recovery operations, or for the storing of gas regardless of where such gas is produced, including the use of wells on state lands as input wells; for the allocation of production and the sharing of proceeds from the whole or any specified part of the area covered by the agreement on an acreage or other basis, regardless of the particular tract from which production is obtained or proceeds are derived; for considering for all purposes the drilling or operation of a well on any part of the area included in the agreement, as being drilled or operated on each tract included in the agreement; for the payment of advance royalties in such sum or sums as shall be fixed by the commissioner; or for commingling of oil or gas from a well or wells or from one or more leases.
History: 1941 Comp., § 8-1138, enacted by Laws 1943, ch. 88, § 1; 1953 Comp., § 7-11-39; Laws 1961, ch. 176, § 1.
Cross references. — For state participation in pooling and communitization agreements, see 19-10-53 NMSA 1978.
For cooperative development or operation of geothermal resources lands, see 19-13-14 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references. — Secondary recovery of oil and gas, 19 A.L.R.4th 1182.
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.