A. In all cases where the lessee of a valid lease issued under the provisions of Sections 19-8-14 through 19-8-33 NMSA 1978, or the record owner of an approved assignment of such lease, provides to the commissioner of public lands proof of discovery on such lease of an ore body containing valuable mineral deposits deemed to be of merchantable quality and quantity, the commissioner of public lands upon proper application by the lessee or the record owner and after notice and hearing shall authorize a suspension of the lease during either the primary, secondary, tertiary, quaternary or indeterminable terms of such lease for such period as may be fixed by him if the commissioner is satisfied that:
(1) marketing conditions beyond the control of the lessee are such that the lease cannot be mined and the ore marketed except at a loss; or
(2) temporary conditions exist beyond the control of the lessee, with regard to the leased land then being mined, which would operate to prevent the mining of the maximum minable ore in keeping with safe mining practices.
B. A suspension authorized by the commissioner pursuant to the provisions of Subsection A of this section shall take effect as of the date of the commissioner's decision and shall suspend the lease for the period of such suspension, but in no event shall any single suspension be for a period longer than five years.
C. All obligations of the lessee under a lease suspended pursuant to the provisions of this section shall be suspended, including the payment of rentals and advance royalties; provided, however, that the lessee shall pay an annual rental of sixty dollars ($60.00) per acre per year for each year of suspension.
D. A suspension authorized by the commissioner pursuant to this section shall not subject the suspended lease to the provisions of Section 19-8-20 NMSA 1978.
History: 1978 Comp., § 19-8-19.1, enacted by Laws 1983, ch. 3, § 1.
Structure 2021 New Mexico Statutes
Article 8 - Lease of Mineral Lands
Section 19-8-1 - [Concealment of returns; defrauding state of royalty; penalty.]
Section 19-8-2 - [Inspection of lessee's books by commissioner.]
Section 19-8-4 - Leases for certain minerals; rentals; royalty.
Section 19-8-5 - [Term of lease.]
Section 19-8-6 - [Salt lease statutes excepted.]
Section 19-8-7 - [Rules and regulations authorized.]
Section 19-8-10 - [Saline leases; royalties; record of sales; conditions.]
Section 19-8-11 - [Term of saline lease; extension.]
Section 19-8-13 - [Mineral lands; development.]
Section 19-8-14 - Issuance of mineral leases authorized; minerals not included.
Section 19-8-15 - Minerals, lessees, legal subdivision defined.
Section 19-8-16 - Validation of existing leases and permits; renewals of permits prohibited.
Section 19-8-17 - Relinquishment of permits for conversion.
Section 19-8-18 - Term of leases.
Section 19-8-19 - [Terms of leases; stipulation of conditions under statute; filing and recording.]
Section 19-8-20 - Leases; stipulation; rental.
Section 19-8-23 - Covenants to market and develop.
Section 19-8-25 - Inspection of records; reports.
Section 19-8-26 - Relinquishment of leases.
Section 19-8-27 - Violation of lease; notice; forfeiture for noncompliance with demand.
Section 19-8-28 - Assignment of leases; form; approval; effect; lands in production.
Section 19-8-29 - Improvements removable upon termination of lease.
Section 19-8-30 - Area of lease.
Section 19-8-31 - Posting of open acreage; simultaneous applications.