N.M. Admin. Code § 19.2.4.14

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

Section 19.2.4.14 - SURETY

A. A corporate surety, performance and improvement damage bond in such sum as the commissioner in each case may prescribe (minimum of five hundred dollars $500.00 for a single lease bond and one thousand dollars $1,000.00 for a multiple lease or blanket bond) executed by the lessee with satisfactory surety shall be executed by the lessee before a lease is issued.

B. With the approval of the commissioner, a twenty-five thousand dollar ($25,000.00) bond or other surety may be used at the option of lessee for the use and benefit of the commissioner, to secure surface improvement damage and the performance of the lessee as lessee under one (1) or more state leases or permits for minerals, oil and gas, coal or geothermal resources or as holder under one (1) or more state rights of way or easements which the lessee or its successors or assigns has executed with the commissioner. The lessee will be obligated to perform and keep all terms, covenants, conditions and requirements of all state leases for minerals, oil and gas, coal, or geothermal resources and of all state rights of way and easements executed with the commissioner including the payment of royalties when due and compliance with all established mining plans and reclamation requirements.

12/31/99; 19.2.4.14 NMAC - Rn, 19 NMAC 3. SLO 4.14, 09/30/02