All leases for grazing or agricultural purposes shall be for a term of not exceeding five years except as provided in this chapter. All rents are payable cash in advance or, if the lessee so elects, may be divided into five equal annual payments as follows: one-fifth in advance, the remainder to be evidenced by four equal joint and several promissory notes of even date with the lease, signed by the lessee and by two other persons satisfactory to the commissioner, due in one, two, three and four years respectively, but the commissioner may by regulation provide for waiving the promissory note requirement and may also by regulation provide for acceptance of a surety bond in lieu of promissory notes. All leases shall terminate on the thirtieth of September.

History: Laws 1912, ch. 82, § 14; Code 1915, § 5191; C.S. 1929, § 132-114; 1941 Comp., § 8-831; 1953 Comp., § 7-8-31; Laws 1971, ch. 90, § 1.

Cross references. — For bidding requirements for leases of greater than five years' duration, see § 10 of the Enabling Act. For the Enabling Act, see the New Mexico Territorial Laws and Treaties on NMOneSource.com.

Renewal of lease. — C.S. 1929, § 132-120, which gave to good-faith lessee of state lands preferred right to renew lease, applied to leases under this section. State ex rel. McElroy v. Vesely, 1935-NMSC-096, 40 N.M. 19, 52 P.2d 1090, explained in Ellison v. Ellison, 1944-NMSC-012, 48 N.M. 80, 146 P.2d 173.

Lease relinquishment and consolidation. — Allowing relinquishment of a lessee's several existing leases on grazing or agricultural lands subject to the Enabling Act and permitting application for a new consolidated lease, with the net result being a lease of more than five years' duration without the opportunity for competitive bidding or adverse applications as provided by law is beyond the discretion of the commissioner of public lands. 1969 Op. Att'y Gen. No. 69-67.

Law reviews. — For comment, "Grazing Rights: Time for a New Outlook," see 32 Nat. Resources J. 623 (1992).

Am. Jur. 2d, A.L.R. and C.J.S. references. — Agricultural leases, construction and effect of statutes limiting duration of, 17 A.L.R.2d 566.