Section 19-10-61 - Sale or exchange of royalty gas taken in kind. - New Mexico Statutes

19-10-61. [Sale or exchange of royalty gas taken in kind.]

The  commissioner of public lands shall have the authority to negotiate and enter into agreements for the sale or exchange of  royalty gas taken in kind under oil and gas leases issued by the state. Provided, however, he shall not dispose of said gas  for a net consideration of less than that being received at the time of exercising the option. In selling or exchanging the gas, the commissioner of public lands shall be entitled to use the lessee's gathering, processing and compression facilities provided that reasonable compensation is made to the lessee for such use.