There is hereby created a restricted district comprising townships 3 to 15 south inclusive, ranges 34 to 39 east inclusive; townships 16 to 20 south inclusive, ranges 28 to 39 east inclusive; and townships 21 to 26 south inclusive, ranges 34 to 39 east inclusive, N.M.P.M. No oil and gas leases upon any state lands within said restricted district shall be made except upon competitive bidding by sealed bids or at public auction as hereinafter provided. No lands within the boundaries of said restricted district shall be eliminated therefrom by the commissioner, but the commissioner may, from time to time, when in his judgment the interest of the state requires such action, extend the boundaries thereof and create other restricted districts, or areas, within which oil and gas leases may be made only upon competitive bidding by sealed bids or at public auction. Notice of the extension of the boundaries of said district, or of the creation of other districts, shall be given in the same manner as provided for giving notice of change in rental districts, as provided by Section 4 [19-10-15 NMSA 1978] of this act. Nothing contained in this act [19-10-1, 19-10-12, 19-10-15 to 19-10-18, 19-10-22 NMSA 1978] shall be construed as requiring a uniform annual rental to prevail over the entire area embraced in any restricted district. The commissioner may, when it is deemed for the best interests of the state, fix the annual rental to be paid under the terms of each lease covering lands in any restricted district at the time notice of sale thereof is given, as hereinafter provided, without regard to the rental prevailing in the district in which the lands offered for lease are situated, and in such cases the provisions of Section 4 [19-10-15 NMSA 1978] hereof, except those relating to the maximum and minimum rental, shall not apply.

History: Laws 1929, ch. 125, § 7; C.S. 1929, § 132-407; Laws 1931, ch. 18, § 5; 1941 Comp., § 8-1109; 1953 Comp., § 7-11-10.

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

Purpose of competitive bidding. — Competitive bidding was introduced as a means of obtaining the greatest returns from the leases. Atlantic Oil Producing Co. v. Crile, 1930-NMSC-040, 34 N.M. 650, 287 P. 696.

Effect of high bid on preference right holder. — This section is a "rule of the state land office" within terms of oil and gas lease executed in 1924, and the holder of a preference right under that form of lease must meet the bonus offered by the highest bidder at such auction to be entitled to exercise his right and take the lease. State ex rel. Malone v. Crile, 1929-NMSC-095, 34 N.M. 520, 284 P. 762.

Withdrawal of lands from restricted districts. — By necessary implication the land commissioner has authority to rescind orders promulgated by him adding lands to restricted districts for oil and gas leasing, and the procedure to be followed in withdrawing any lands from a restricted district is substantially the same as set out in Section 19-10-15 NMSA 1978. 1952 Op. Att'y Gen. No. 52-5604.