A. Before any person commences development or operations of geothermal resources under a lease, including any prospecting activity on the leased land, the person holding the lease shall execute and file with the commissioner, a bond or undertaking in an amount fixed by the commissioner which shall not be less than five thousand dollars ($5,000) in favor of the state of New Mexico for the benefit of the state's contract purchaser, patentee or surface lessee. The purpose of the bond or undertaking shall be to secure payment for damages to the tangible improvements on the leased land as may be suffered by reason of the development and operations on the land by the person holding the lease.
B. The commissioner may, at any time, require a person holding a lease to furnish a bond in a reasonable amount to guarantee payment of royalties to become due the state if, in his judgment, such is necessary to protect the interest of the state.
C. The commissioner shall, by regulations, establish the standards and the forms for any bonds or undertakings required pursuant to this section.
History: 1953 Comp., § 7-15-18, enacted by Laws 1967, ch. 158, § 18.
Cross references. — For filing by mineral lessee of bond securing payment for damage to the surface, and bond guaranteeing payment of royalties, see 19-8-24 NMSA 1978.
For bond required of mineral lessee of lands sold on deferred payment plan with reservation of minerals, see 19-10-26 NMSA 1978.
Structure 2021 New Mexico Statutes
Article 13 - Lease of Geothermal Resources on State Lands
Section 19-13-1 - Short title.
Section 19-13-2 - Definitions.
Section 19-13-3 - Administration of act.
Section 19-13-4 - Geothermal resources of commercial value.
Section 19-13-5 - Leases; applications; limitations.
Section 19-13-6 - Known geothermal resources fields.
Section 19-13-7 - Leases; terms; rentals and royalties.
Section 19-13-8 - Leases; relinquishment.
Section 19-13-9 - Rent or royalties; waiver; suspension; reduction.
Section 19-13-10 - Suspension of operation and production.
Section 19-13-11 - Leases; duration.
Section 19-13-11.1 - Leases; stipulation; rental; royalty.
Section 19-13-11.2 - Validation of geothermal resource leases.
Section 19-13-12 - Combining geothermal resources.
Section 19-13-13 - Reinjecting geothermal resources.
Section 19-13-14 - Cooperative development or operation.
Section 19-13-15 - Posting of open acreage; simultaneous applications.
Section 19-13-16 - State land sales and leases; reservations.
Section 19-13-17 - Use of the surface.
Section 19-13-18 - Bonds; surface damage; performance.
Section 19-13-19 - State lands; jurisdictions.
Section 19-13-20 - General mining lease; lease preference.
Section 19-13-21 - Transferability.
Section 19-13-22 - Inspection of records; reports.
Section 19-13-23 - Violation of lease; notice; forfeiture.
Section 19-13-24 - Removing improvements upon termination of lease.
Section 19-13-25 - Regulations.
Section 19-13-26 - Withholding state lands from lease; lease by competitive bids.