N.M. Admin. Code § 19.2.6.16
Current through Register Vol. 35, No. 23, December 10, 2024
In lieu of the actual production requirement, expiration of a lease may be prevented by the timely payment of an advance royalty equal to the estimated royalty obligation which would be due if one percent (1%) of the recoverable reserves of the leased land were produced. Payment of the advance royalty on or before a lease anniversary date will act to extend the lease until the next ensuing anniversary date; provided, however, that the lease shall not be extended for more than ten (10) years by payment of advance royalties. Any credit later taken for advance royalties against actual production royalties due shall not exceed fifty percent (50%) of the total royalty due for any single reporting period.
N.M. Admin. Code § 19.2.6.16