Section 19-13-11.1 - Leases; stipulation; rental; royalty. - New Mexico Statutes

19-13-11.1. Leases; stipulation; rental; royalty.

The owner or owners of any geothermal resources lease or approved assignment thereof, heretofore issued by the commissioner, which lease has not automatically expired by its own terms or which has not been canceled after proper notice by the commissioner and which has otherwise been maintained in good standing, may enter into a stipulation with the commissioner of public lands making the terms and conditions of Sections 19-13-7 and 19-13-11 NMSA 1978 a part of such existing lease, the same as if the provisions had been a part of the lease when issued. In such case, the rentals, royalties and fees shall be computed as follows:   

A.     rentals shall be computed for the remainder of the primary term of the lease at one dollar ($1.00) per acre or fraction thereof per year, payable in advance, and for the secondary term of the lease at five dollars ($5.00) per acre or fraction thereof per year, payable in advance;   

B.     royalties shall be payable as provided in the lease being stipulated; provided, however, if at the time of entering into the stipulation the acreage has been included in a known geothermal resource field and if the commissioner has established a higher rate for such area, then the royalties shall be payable at the higher rates so established; and   

C.     the commissioner may charge a fee of ten dollars ($10.00) for the approval, filing and recording of such stipulation.