N.M. Admin. Code § 19.2.3.12

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

Section 19.2.3.12 - ROYALTIES; REDUCTION IN MINIMUM ROYALTIES

A. Royalties will be established by the commissioner on a negotiated basis and such royalty shall be computed on the gross value of the product after processing, without deductions of any kind, regardless of the place of sale. The minimum royalty rates for potassium chlorides and sulphates shall be as follows:

(1) POTASSIUM CHLORIDES* ROYALTY RATE

(Grade of Ore Mined)

10.00% K₂0 or less 2.00%

** **

17.09% K₂0 or more 5.00%

*(Mined by conventional methods and based on the K₂0 grade, as sylvite.)

**Intervening ore grade increments are to be proportioned to the foregoing royalty rate limits and royalty rate to be computed according to the formula:

Royalty rate = 2.00% + [(% K₂0 grade mined - 10.00% K₂O) x 0.423077], the K₂O grade mined and royalty rate to be determined to the nearest 0.00 percent.

(2) SULPHATES ROYALTY RATE

Langbeinite 2.50%

B. At the discretion of the commissioner and upon the showing of good cause, the royalties set out above in subsection A of 19.2.3.12 NMAC may be reduced. The lessee must submit a written request to the commissioner outlining the expenses and costs of operating the entire lease, the income from the sale of any leased products and all facts tending to show whether the mines can be successfully operated upon the royalty fixed in the lease.

N.M. Admin. Code § 19.2.3.12

12/31/99; 19.2.3.12 NMAC - Rn, 19 NMAC 3. SLO 3.12, 09/30/02