The commissioner of public lands hereinafter referred to as the "commissioner" is hereby authorized to execute and issue in the name of the state of New Mexico, as lessor, leases for the exploration, development and production of oil and natural gas, from any lands belonging to the state of New Mexico, or held in trust by the state under grants from the United States of America, and including lands which have been or may hereafter be sold by the state with reservations of minerals in the land, such leases to be issued upon such terms and conditions as the commissioner may deem to be for the best interests of the state, and not inconsistent with the provisions of Chapter 125, of the Session Laws of 1929 [19-10-1, 19-10-12 to 19-10-25 NMSA 1978], and amendments thereto, provided that this act [19-10-1, 19-10-2 NMSA 1978] shall be effective only as to such leases issued subsequent to the effective date of this act; and, provided further, that nothing in this act shall affect or disturb valid existing rights as to any carbon dioxide lease heretofore issued under the provisions of Chapter 177, of the New Mexico Session Laws of 1937.

History: Laws 1929, ch. 125, § 1; C.S. 1929, § 132-401; Laws 1931, ch. 18, § 1; 1941, ch. 137, § 2; 1941 Comp., § 8-1101; 1953 Comp., § 7-11-1.

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

Compiler's notes. — Laws 1937, ch. 177, referred to in this section, was repealed by Laws 1941, ch. 137, § 3.

Cross references. — For reservation from sale of saline, mineral and oil and gas lands known to contain such, and authorization of lease of same, see 19-7-25 NMSA 1978.

For reservation of mineral deposits in grazing and agricultural leases, see 19-7-28 NMSA 1978.

For lease of mineral lands, see 19-8-1 NMSA 1978 et seq.

For lease of coal lands, see 19-9-9 NMSA 1978 et seq.

For reservation by state in mineral lease of purchase rights, see 19-14-1 NMSA 1978.

Form of lease. — Commissioner of public lands under Laws 1929, ch. 125, § 1, could adopt such form as he desired for oil and gas leases. Atlantic Oil Producing Co. v. Crile, 1930-NMSC-040, 34 N.M. 650, 287 P. 696.

Commissioner of public lands could insert in oil and gas leases matters of substance not inconsistent with the provisions of the act. Atlantic Oil Producing Co. v. Crile, 1930-NMSC-040, 34 N.M. 650, 287 P. 696.

Public policy to promote production. — It is the public policy as shown by the oil and gas leasing laws to promote development and production of oil and gas and it was not contemplated by the legislature that a lessee be deprived of his right to develop fully a well begun in good faith merely because he was attempting to determine the extent of the production possible at a depth less than he contemplated drilling in order to test the productivity of the area. 1953 Op. Att'y Gen. No. 53-5650.

Commissioner's leasing authority not exclusive. — This section does not grant the commissioner of public lands the exclusive authority to issue all oil and gas leases on any lands owned by the state. 1980 Op. Att'y Gen. No. 80-10.

Royalty provision. — Commissioner may advertise, offer and lease oil and gas lands upon a basis of the state receiving more than one-eighth royalty from the highest and best bidder as he may deem for the best interests of the state. 1945 Op. Att'y Gen. No. 45-4750.

Law reviews. — For student article, "Preventing the Extinction of Candidate Species: The Lesser Prairie-Chicken in New Mexico", see 49 Nat. Resources J. 525 (2009).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 38 Am. Jur. 2d Gas and Oil § 283.

Right of co-lessor in community oil or gas lease to lessen production and royalties under such lease by operations on land not covered thereby or released therefrom, 167 A.L.R. 1225.

Rights and remedies of owner or lessee of oil or gas land or mineral or royalty interests therein, in respect of waste of oil or gas through operations on other lands, 4 A.L.R.2d 198.

What constitutes oil or gas "royalty" or "royalties" within language of conveyance, exception, reservation, devise or assignment, 4 A.L.R.2d 492.

Mistake, accident, inadvertence, etc., as ground for relief from termination or forfeiture of oil and gas lease for failure to complete well, commence drilling, or pay rental, strictly on time, 5 A.L.R.2d 993.

Abandonment of oil or gas lease by parol declaration, 13 A.L.R.2d 951.

Rights of tenants for years and remaindermen inter se in royalties or rent, under oil or gas lease, 18 A.L.R.2d 98.

Liability for injury to property occasioned by oil, water, or the like flowing from well, 19 A.L.R.2d 1025.

Surface owners' right of access to solid mineral seam or vein conveyed to another, or through the space left by its removal to reach underlying oil or gas, 25 A.L.R.2d 1250.

Right of mineral lessee to deposit top soil, waste materials and the like upon lessor's additional land not being mined, 26 A.L.R.2d 1453.

Construction and effect of provision in mineral lease excusing payment of minimum rent or royalty, 28 A.L.R.2d 1013.

Prohibiting or regulating removal or exploitation of oil and gas, minerals, soil or other natural products within municipal limits, 10 A.L.R.3d 1226.

Gas and oil lease force majeure provisions: construction and effect, 46 A.L.R.4th 976.

Duty of oil or gas lessee to restore surface of leased premises upon termination of operations, 62 A.L.R.4th 1153.

58 C.J.S. Mines and Minerals § 129.