Property rights, leases, contracts and other rights or obligations shall be regarded as amended and modified only to the extent necessary to conform to the provisions and requirements of the Statutory Unitization Act and to any valid order of the division providing for the unit operation of a pool or a part thereof, but otherwise shall remain in full force and effect. A one-eighth part of the production allocated to each tract under an order providing for the unit operation of a pool or a part thereof shall in all events be and remain free and clear of any cost or expense of developing or operating the unit and of any lien therefor as an encumbered [unencumbered] source from which to pay the royalties or other cost-free obligations due or payable with respect to the production from such tract. If a lease or other contract pertaining to a tract or interest stipulates a royalty, overriding royalty, production payment or other obligation in excess of one-eighth of the production or proceeds therefrom, then the working interest owner subject to such excess payment or other obligation shall bear and pay the same.
History: 1953 Comp., § 65-14-18, enacted by Laws 1975, ch. 293, § 18; 1977, ch. 255, § 119.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Structure New Mexico Statutes
Article 7 - Statutory Unitization Act
Section 70-7-1 - Purpose of act.
Section 70-7-3 - Additional powers and duties of the oil conservation division.
Section 70-7-5 - Requisites of application for unitization.
Section 70-7-6 - Matters to be found by the division precedent to issuance of unitization order.
Section 70-7-7 - Division orders.
Section 70-7-8 - Ratification or approval of plan by owners.
Section 70-7-9 - Amendment of plan of unitization.
Section 70-7-10 - Previously established units.
Section 70-7-11 - Unit operations of less than an entire pool.
Section 70-7-12 - Operation; expressed or implied covenants.
Section 70-7-13 - Income from unitized substances.
Section 70-7-14 - Lien for costs.
Section 70-7-15 - Liability for expenses.
Section 70-7-16 - Division orders.
Section 70-7-17 - Property rights.
Section 70-7-18 - Existing rights, rights in unleased land and royalties and lease burdens.
Section 70-7-19 - Agreements not violative of laws governing monopolies or restraint of trade.