N.M. Admin. Code § 19.2.6.19
Any lease in good standing may, with the written approval of the commissioner, upon such terms and conditions as the commissioner may require, and payment of the fee as set forth in the schedule of fees, be assigned or sublet to third persons; provided, however, no assignment of an undivided interest nor any assignment or sublease of less than a legal subdivision shall be recognized or approved. Provided further, however, the record owner of any coal lease may enter into any contract for the development of the leasehold premises or any portion thereof, or may create overriding royalties or obligations payable out of production, or enter into any other agreements with respect to the development of the leasehold premises or disposition of the production therefrom, and it shall not be necessary for any such contracts, agreements or other instruments to be approved by the commissioner; but nothing herein shall relieve the record title owner of such lease from complying with any of the terms or provisions thereof. All assignments shall be formally executed by the proper parties upon forms prescribed and furnished by the commissioner and shall recite, among other things, the consideration received for the assignment. Assignments shall be filed in triplicate in the New Mexico state land office in Santa Fe. The original copy of each assignment will be recorded and filed as a public record in the New Mexico state land office and one copy will be returned to the person entitled to the same. Ordinarily, leases shall be transferred or assigned in the names of no more than two persons or legal entities as provided in 19.2.6.13 NMAC.
N.M. Admin. Code § 19.2.6.19