N.M. Admin. Code § 19.2.5.12 - GENERAL TERMS FOR ALL LEASES AND PERMITS
A. Performance reports, reclamation and
inspection for leases, community caliche pit and other mineral permits.
(1) Upon termination of a lease or permit,
the lessee or permittee shall submit a final report, on the forms prescribed by
the commissioner, which shall specify the amount produced under the lease or
permit and other information on the operations required by the commissioner.
These forms shall be returned to the commissioner along with the final purchase
payment.
(2) For areas disturbed by
mineral operations, reclamation will be required; however, the commissioner may
waive such requirements if it is determined to be in the best interest of the
trust to keep the pit open.
(3) The
records, books of account and operations pertaining to mining, extraction,
transportation, production and sales of minerals taken from leased and
permitted lands shall be open and available for inspection or field audit by
the commissioner or the commissioner's authorized agents at all reasonable
times.
B. Surety for
leases, community caliche pit and other mineral permits.
(1) Leases: The following bonds are required
for each lease issued under this rule
(a) a
performance bond or other surety in an amount set by the commissioner;
and
(b) a minimum damage bond or
other surety of at least five thousand dollars ($5,000.00).
(2) Community caliche pit and
other mineral permits. A permittee under this rule must submit the following
bonds:
(a) a minimum damage bond or other
surety of at least five thousand dollars ($5,000.00); and
(b) when the estimated purchase price exceeds
two thousand dollars ($2,000.00), and the permittee did not pay ten percent of
market value upon application for a permit, the permittee must provide a
performance bond in the amount of two thousand dollars ($2,000.00); the
commissioner or the commissioner's authorized agent may, in the commissioner's
discretion, waive the requirement for surety upon a showing by the applicant
that the permit will be used for the removal of a small, incidental amount of
materials.
(3) The
required sureties shall be filed at the time of execution of the permit or
lease unless a different filing date is allowed by the commissioner.
(4) A surety for damage on purchase contract
or patented surface land shall not be less than five thousand dollars
($5,000.00) for a single lease or not less than ten thousand dollars
($10,000.00) for multiple leases.
(5) Sureties shall be either bonds issued by
a bonding company acceptable to the commissioner or letters of credit or other
surety acceptable to the commissioner.
(6) Megabond. With the approval of the
commissioner, in lieu of the separate surface improvement damage and
performance bonds or other surety, a twenty-five thousand dollar ($25,000.00)
bond or other surety may be used at the option of lessee for the use and
benefit of the commissioner, to secure surface improvement damage and the
performance of the lessee as lessee under one or more state leases or permits
for minerals, oil and gas, coal or geothermal resources, or as holder under one
or more state rights of way or easements which the lessee or its successors or
assigns has executed with the commissioner. The lessee will be obligated to
perform and keep all terms, covenants, conditions and requirements of all state
leases or permits for minerals, oil and gas, coal or geothermal resources and
of all state rights of way or easements executed with the commissioner,
including the payment of royalties when due and compliance with all established
mining plans and reclamation requirements.
C. Surface operations and reclamation for
leases, community caliche pit and other mineral permits. Surface trash and
waste disposal:
(1) Lessees and permittees
shall remove all surface trash and debris caused by their operations from the
lease and permit area and shall keep the lease and permit premises free and
clear of trash and debris. The commissioner may require the lessee or permittee
to fence the lease or permit area.
(2) Hazardous or toxic wastes or petroleum
products may not be disposed of on the lease or permit premises, and all such
materials used in the operations must be removed from the lease area
immediately upon termination of the lease or permit. Due care shall be used to
prevent leaks and spills of such materials; clean up of any spills and
reclamation of the area shall be performed in consultation with the
commissioner.
Notes
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