Section 19-10-54 - Existing pooling and communitization agreements confirmed and validated; segregation of leases in accordance with prior agreement. - New Mexico Statutes

19-10-54. [Existing pooling and communitization agreements confirmed and validated; segregation of leases in accordance  with prior agreement.]

In all cases where the commissioner of public lands has heretofore approved agreements made by oil  and gas lessees of state lands with other oil and gas lessees of state lands or with oil and gas lessees of the United States  or with lessees or mineral owners of fee or privately owned lands or oil and gas lessees of tribal or allotted Indian lands for the purpose of forming a proration unit or portion thereof, or well spacing unit in conformity with any order, rule or regulation of the New Mexico oil conservation commission, or for the purpose of forming a cooperative or unit agreement in  the interest of conservation and the prevention of waste of oil and gas, and where all rentals have been paid in accordance with the terms of such leases embracing state lands and have been accepted by the commissioner of public lands and such leases have not been canceled for nonperformance by the lessee or any assignee of the terms or conditions thereof or any of the terms or conditions of such pooling, communitization, cooperative or unit agreement, and have been recognized by the commissioner of public lands as being in good standing, such leases are hereby declared to be valid and existing contracts with the state of New Mexico according to their terms and provisions and the obligation of the state and of the commissioner  of public lands to observe and conform to the terms and provisions thereof, are hereby recognized and such leases and the  approval of such pooling, communitization, cooperative or unit agreements are hereby validated and such leases shall continue  in full force and effect according to their terms and conditions as modified, extended or amended by such pooling,  communitization, cooperative or unit agreements as to all of the lands embraced in each such lease; provided, however, in any case where a cooperative or unit agreement heretofore approved by the commissioner of public lands contains a provision segregating any lease committed to such agreement as to lands within and without the cooperative or unit area so as to  constitute separate leases as to such portions of said lands, such lease shall be segregated according to the provisions of  the cooperative or unit agreement.