N.M. Admin. Code § 19.2.2.50
Current through Register Vol. 35, No. 23, December 10, 2024
If production in paying quantities commences during the primary or any subsequent term and thereafter ceases before the quaternary term would have expired had there been no such production, then the lease shall be deemed a "non-producing" lease on the date that production in paying quantities ceases. Notwithstanding such cessation of production in paying quantities, a non-producing lease shall not expire if the lessee continues to pay rent and, if the lease is in its quaternary term, advanced royalties. The lessee may maintain the mineral lease in effect under this section until the end of the quaternary term and so long thereafter as minerals are produced in paying quantities.
N.M. Admin. Code § 19.2.2.50