N.M. Admin. Code § 19.2.8.17

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

Section 19.2.8.17 - AGRICULTURAL IMPROVEMENTS

A. Improvements shall not be placed, made or developed on state trust land without the express written consent of the commissioner unless the cost of the improvement and its placement is within the cost limitations prescribed by Section 19-7-51 NMSA 1978. Improvements shall be placed, made or developed on state trust land only by the lessee of the land on which the improvements are to be located.

B. Applications to place, make or develop improvements on state trust lands held by an agricultural lease shall be made by the lessee upon forms and in the manner prescribed by the commissioner prior to initiation of placement or construction. Each application to place improvements shall:

(1) set forth the type and kind of improvements to be placed, made or developed and their estimated cost;

(2) specify the legal subdivisions on which the improvements are to be located; and

(3) be accompanied by the filing fee specified in the schedule of fees.

C. Inclusion of unauthorized improvements on any appraisal or listing of improvements submitted to the commissioner for any purpose shall not serve as an application to make, place or develop improvements on state trust lands or be construed as approval of those improvements by the commissioner.

D. Upon completion of an authorized improvement, the lessee shall, by sworn affidavit, notify the commissioner of the improvement's actual cost of acquisition, construction or placement.

E. Removal:

(1) All authorized improvements other than fences and growing crops shall be deemed permanent improvements and shall be removed only upon those terms and conditions to which the commissioner has agreed in writing prior to removal.

(2) All unauthorized improvements placed, made or developed on state trust lands by one acting in the capacity of the lessee of the land on which they are located shall be removed unless the lessee applies for, and the commissioner grants, approval of the improvements. The removal of such unauthorized improvements shall be pursuant to terms and conditions established by the commissioner and shall be solely at the expense of the lessee.

(3) Unauthorized improvements placed, made or developed on state trust land by one not acting in the capacity of the lessee of the lands on which the improvements are located shall be subject to removal, sale or other disposition at the commissioner's discretion.

F. Compensation: A purchaser or lessee of state trust lands on which authorized improvements are located shall provide to the commissioner:

(1) a bill of sale or waiver of payment signed by the holder of the right to improvement compensation; or

(2) payment of the value of such improvements as determined by the commissioner's appraisal. Payment of the value of authorized improvements received by the commissioner shall be remitted to the holder of the right to improvement compensation.

(3) Except as provided below, the commissioner shall recognize the compensability at one hundred (1.00) percent of value for authorized improvements.

(4) The commissioner shall recognize the compensability of all or any of the unauthorized improvements placed on state trust lands by one acting in the capacity of the lessee at any percentage of value, including zero (0.00) percent, but in no case more than seventy-five (.75) percent of value.

(5) The compensability of unauthorized improvements placed, made or developed on state trust lands by one not acting in the capacity of the lessee of the lands on which the improvements are located may be recognized at any percentage of value by the commissioner, including zero percent of value.

(6) In any instance when a lessee's improvements have been cost-shared with a government entity or through a grant, the lessee's compensation shall be equal to the percent, if any, of the original cost paid by the lessee, which percent shall be applied to the value described in Subsection F of 19.2.8.17 NMAC above.

N.M. Admin. Code § 19.2.8.17

3/11/81, 1/20/84, 9/30/85, 11/4/88, 8/8/89, 12/1/92, 6/29/96; 19.2.8.17 NMAC - Rn, 19 NMAC 3 SLO 8.17, 09/30/02; A, 04/15/10