In issuing oil and gas leases, the commissioner shall:
A. use the exploratory lease form as set forth in Section 19-10-4.1 NMSA 1978 for oil and gas leases of tracts classified as nonrestricted lands under Section 19-10-3 NMSA 1978;
B. use the discovery lease form as set forth in Section 19-10-4.2 NMSA 1978 or the exploratory lease form for oil and gas leases of tracts classified as restricted lands and categorized as regular under Section 19-10-3 NMSA 1978; and
C. use the development lease form as set forth in Section 19-10-4.3 NMSA 1978, the discovery lease form or the exploratory lease form for oil and gas leases of tracts classified as restricted lands and categorized as premium under Section 19-10-3 NMSA 1978; provided that in using the development lease form for a tract receiving less than ninety total percentage points under Section 19-10-3 NMSA 1978, the royalty rate shall not exceed three-sixteenths.
History: 1978 Comp., § 19-10-4, enacted by Laws 1985, ch. 195, § 2.
ANNOTATIONSRepeals and reenactments. — Laws 1985, ch. 195, § 2, repealed former 19-10-4 NMSA 1978, as enacted by Laws 1977, ch. 298, § 1, relating to the term and form of an oil and gas lease notwithstanding the provisions of 19-10-3 NMSA 1978, and enacted a new section. For present comparable provisions, see 19-10-4.1, 19-10-4.2, 19-10-4.3 NMSA 1978.