N.M. Admin. Code § 19.2.3.14

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

Section 19.2.3.14 - OPERATIONS AFTER DISCOVERY

If minerals in commercial quantities shall be discovered on the leased lands, the lessee shall be required to develop and produce the same in commercial quantities with reasonable diligence; provided, however, the commissioner may, after hearing, authorize the suspension of production on such lease or leases for a period not to exceed five (5) years at any one (1) time and in no event shall any suspension be for more than ten (10) years from the date on which the term of the lease would have expired in the absence of suspension of production. Suspensions under this Rule will not be granted unless the commissioner finds:

A. Temporary conditions exist, with regard to the leased land being mined, which would operate to prevent the mining of the maximum mineable ore in keeping with safe mining practices;

B. Separate parts of the lands covered by the lease are so situated with respect to other lands owned or leased by the lessee that lessee should be allowed a reasonable time to reach and mine the various parts of the lands covered by the lease in keeping with an orderly mining program and with a view to the proper development and mining of the entire area of which various parts of the lands covered by the lease and other lands are an integral part; or

C. Temporary marketing conditions are such that the lease cannot be mined and operated except at a loss. Suspensions hereunder extend the term of the lease to coincide with the term of the suspension.

N.M. Admin. Code § 19.2.3.14

12/31/99; 19.2.3.14 NMAC - Rn, 19 NMAC 3. SLO 3.14, 09/30/02