N.M. Admin. Code § 19.2.2.7

Current through Register Vol. 35, No. 23, December 10, 2024

Section 19.2.2.7 - DEFINITIONS

As used in 19.2.2 NMAC, the following terms have the meaning set forth in this section unless otherwise indicated in the text of this rule.

A. "arm's-length sales price" means the sales price resulting from a good faith sale of minerals between an unaffiliated seller and buyer who have comparable negotiating power, the seller being under no obligation to sell and the buyer being under no obligation to purchase. Where minerals are not actually sold in an arm's-length transaction, the arm's-length sales price shall be estimated by the lessee, using methods approved by the commissioner, in accordance with Sections 55-2-723 & 724, NMSA 1978 of the New Mexico Uniform Commercial Code or other comparable method.

B. "commissioner" means the commissioner of public lands. The commissioner is the executive officer of the NMSLO and may delegate to NMSLO staff the performance of duties required of the commissioner under this rule.

C. "comparable law" means a federal, state or local regulatory program that the commissioner determines, in writing, is applicable to mining activity and which will, as a practical matter, assure reclamation of trust surface estate to substantially the same standard required under the New Mexico Mining Act. The issue of whether a given regulatory program constitutes comparable law will arise only where the mining activity in question is not regulated under the New Mexico Mining Act.

D. "contiguous" means adjoining and having at least one common side or boundary.

E. "financial assurance" means a bond, surety, letter of credit, certificate of deposit or other instrument obtained for the purpose of guarantying performance of an obligation.

F. "lease or mineral lease" means a lease issued under this 19.2.2 NMAC that must be obtained prior to exploring for, extracting or producing minerals.

G. "legal subdivision" means legal subdivision as used and recognized by the federal bureau of land management and the NMSLO, ordinarily consisting of forty acres, more or less, or one sixteenth part of a standard section, including lots as designated by the U.S. survey plats.

H. "lessee" means the persons who, according to the records of the NMSLO, are contractually obligated to the commissioner under a mineral lease. "Lessee" includes the lessee's successors in interest and approved assignees of the lease.

I. "mine developmentplan" means a written plan that provides for the efficient and orderly development of mineral reserves and prevention of waste of surface and subsurface resources within the commissioner's jurisdiction.

J. "minerals" means all natural substances within the commissioner's jurisdiction that can be extracted, taken or otherwise derived from the earth, except as expressly excluded hereunder. Exclusions: For purposes of 19.2.2 NMAC, "mineral" does not include potassium, sodium, sulfur, phosphorus, common salt, oil and gas, coal, shale, clay, gravel, building stone, and building materials, including gypsum, timber or any material leased or disposed of under another rule issued by the commissioner.

K. "mining activity" means, except as excluded hereunder, any activity that satisfies the following two-part test. First, the activity physically or chemically disturbs or alters lands, minerals or other resources within the commissioner's jurisdiction. Second, the purpose of the activity is to explore for, extract and/or produce minerals, or the activity is incidental to or related to such exploration, extraction and/or production. Exclusions: "mining activity" does not include any activity authorized and carried out pursuant to other rules issued by the commissioner.

L. "mining and minerals division or MMD" means the mining and minerals division of the New Mexico department of energy, minerals and natural resources, or any successor agency that may become responsible for enforcing the New Mexico Mining Act.

M. "New Mexico Mining Act or Mining Act" means the New Mexico Mining Act, Section 69-36-1et seq. NMSA 1978.

N. "NMSLO" means the state land office created by Section 19-1-1 NMSA 1978, the executive officer of which is the commissioner.

O. "paying quantities" means the quantity of minerals that must be produced from the premises and sold in a given lease year to carry on a profitable mining operation on the premises. For purposes of this rule, "paying quantities" does not include minerals extracted from outside the premises, even though such lands may comprise part of the same overall mining operation.

P. "permitting agency" means MMD or, if the New Mexico Mining Act is not applicable to the mine site at issue, the government agency or agencies responsible for enforcing comparable law, if any.

Q. "premises" means the lands encumbered by the mineral lease as originally issued and described therein.

R. "production" means any extraction of minerals by any means whatsoever, except as expressly excluded hereunder. Exclusions: "production" does not include: (1) the extraction of minerals for the purpose of exploring, testing or sampling, unless these minerals are beneficially used or sold or otherwise disposed of for value; or (2) the removal of overburden, waste rock, matrix or host rock, soil or the like, unless minerals derived from these materials are beneficially used, sold or otherwise disposed of for value.

S. "reclamation plan" means a written document approved by the commissioner that consists of: (1) the mining permit(s) issued by the permitting agency, and (2) any additional requirements deemed necessary by the commissioner. As used herein, "reclamation plan" includes the original reclamation plan and any additional plans approved by the commissioner.

T. "Schedule of fees" means a list of fees that must be paid for performance of certain administrative functions . The schedule of fees shall be published on the state land office website and is subject to change at the discretion of the commissioner. Unless otherwise noted in the schedule of fees or in this rule, the fee shall be non-refundable.

U. "special minerals" means rare earth minerals, precious and semi-precious stones, uranium, thorium or any other minerals which have been or may hereafter be determined to be essential to the production of fissionable materials.

V. "trust" means the trust created by congress under the New Mexico Enabling Act of June 20, 1910, and accepted by the state of New Mexico under Articles XIII and XIV of the New Mexico Constitution.

W. "trust surface estate" means "public lands of the state," as identified in Article XIII, Section 1 of the New Mexico Constitution, in which the state holds legal title to the surface estate. "Trust surface estate" includes "public lands of the state" that are subject to a purchase contract until the commissioner issues the patent conveying the state's legal interest therein to the contract purchaser.

N.M. Admin. Code § 19.2.2.7

19.2.2.7 NMAC - N, 3/14/2001, Amended by New Mexico Register, Volume XXVII, Issue 12, June 30, 2016, eff. 6/30/2016