N.M. Admin. Code § 19.2.10.15 - CONSIDERATION

A. For telecommunications, electric line, and pipeline easements and rights-of-way, consideration for the grant of a right of way or easement shall be in an amount determined by the applicable price schedule unless the commissioner, in the commissioner's discretion, elects to establish the price through separate field inspection or appraisal, and/or subsequent negotiation, taking into account the circumstances and damage to remaining lands; for all others, consideration shall be determined by field inspection or appraisal, and/or subsequent negotiation, or such other method as the commissioner in the commissioner's discretion deems best. In each case however, unless a credit is allowed pursuant to Subsection B of 19.2.10.15 NMAC below, consideration shall not be less than the fair market value of the interest to be granted. This Section 19.2.10.15 applies to all federal, state, county, municipal, or other governmental agencies, as well as quasi-governmental bodies or organizations, as if they were private parties.

B. For gathering pipelines, salt water disposal pipelines and other pipelines not used for main transmission, the commissioner may authorize a credit of up to thirty percent of the fair market value of the interest to be granted if, after a written showing by the applicant, the commissioner, in the commissioner's sole discretion, determines:

1) that the grant of an easement or right of way, with a credit, will enhance oil and gas production from trust lands;

2) that the royalties resulting from the enhanced oil and gas production will far exceed any benefits derived from receiving fair market value from the grant of easement or right of way; and

3) that granting the credit is in the best interests of the trust. If such a credit is authorized, the grantee shall pay the fair market value less the amount of the credit.

C. An applicant for an easement or right of way may apply to use an existing right of way or easement. The application must be accompanied by:

a) the written consent of the existing user for the proposed second use, if different from the applicant; and

b) if a discount is being requested, an appraisal, satisfactory to the commissioner, comparing the damage to trust lands that will result from the proposed easement or right of way and the damage that would be caused by that same right of way or easement if located adjacent to the proposed one. Other factors supporting a discount may be included for the commissioner's consideration. In cases where a second use is approved by the commissioner within an existing right-of-way or easement, the commissioner may, based upon the approved appraisal, and if the commissioner deems it in the best interests of the trust, discount the consideration for the second grant by no more than twenty percent.

D. No applicant may have both the Subsection B of 19.2.10.15 credit and the Subsection C of 19.2.10.15 discount above. If both are applied for, the commissioner in the commissioner's discretion will determine which, if any, will be allowed.

Notes

N.M. Admin. Code § 19.2.10.15

19.2.10.15 NMAC - Rp, 19.2.10.15 NMAC, 06/30/04, Amended by New Mexico Register, Volume XXX, Issue 11, June 11, 2019, eff. 6/11/2019