Leases and other contracts, reserving a royalty to the state, for the development and production of any and all minerals or for the development and operation of geothermal steam and waters on lands granted or confirmed to the state of New Mexico by the act of congress of June 20, 1910, entitled "An act to enable the people of New Mexico to form a constitution and state government and be admitted into the union on an equal footing with the original states," may be made under such provisions relating to the necessity or requirement for or the mode and manner of appraisement, advertisement and competitive bidding, and containing such terms and provisions, as may be provided by act of the legislature; the rentals, royalties and other proceeds therefrom to be applied and conserved in accordance with the provisions of said act of congress for the support or in aid of the common schools, or for the attainment of the respective purposes for which the several grants were made. (As added November 6, 1928; as amended November 7, 1967.)

ANNOTATIONS

The 1967 amendment, which was proposed by H.J.R. No. 17 (Laws 1967) and adopted at a special election held on November 7, 1967, with a vote of 37,897 for and 14,765 against, inserted "or for the development and operation of geothermal steam and waters" after "all minerals" near the beginning of the section.

The 1928 amendment to the constitution, which was proposed by H.J.R. No. 8 (Laws 1927) and adopted by the people at the general election held on November 6, 1928, by a vote of 40,650 for and 9,774 against, added this section as Article XXIV.

"Act of congress". — The statute referred to in this section is the Enabling Act for New Mexico (June 20, 1910, 36 Stat. 557, ch. 310), which is set out in Pamphlet 3.

State properly reserved mineral rights. — State, through commissioner of public lands, properly reserved minerals and mineral rights in selling and issuing its patent to school and asylum lands granted to it by government, and patentee was not entitled to ejectment against state's lessee of oil and gas rights. Terry v. Midwest Ref. Co., 64 F.2d 428 (10th Cir., 1933), cert. denied, 290 U.S. 660, 54 S. Ct. 74, 78 L. Ed. 571 (1933).

Rulemaking authority of commissioner of public lands limited. — The commissioner of public lands has no authority to promulgate rules or regulations inconsistent with legislative enactments governing mineral leases on public lands. Harvey E. Yates Co. v. Powell, 98 F.3d 1222 (10th Cir. 1996).

The commissioner of public lands exceeded his authority and usurped a legislative function in promulgating the definition of "proceeds" in a rule so that it would require state lessees to pay royalties even when gas was not extracted from the leased premises. Harvey E. Yates Co. v. Powell, 98 F.3d 1222 (10th Cir. 1996).

Legislature may authorize changes in contract terms. — Legislature may authorize commissioner of public lands to change terms and provisions of mineral leases and other contracts, thereby authorizing unitization agreements relative to state lands. 1943-44 Op. Att'y Gen. No. 43-4210.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 53A Am. Jur. 2d Mines and Minerals § 33 et seq.; 63A Am. Jur. 2d Public Lands §§ 113, 121.

Improvements placed on land by adverse claimant, right of grantee to, 6 A.L.R. 95.

Escheat of land granted to alien, necessity of judicial proceeding, 23 A.L.R. 1247, 79 A.L.R. 1364.

Crops on public lands, rights in respect of, as between persons neither of whom have any authority from the government, 153 A.L.R. 508.

"Royalty" on oil or gas production within language of conveyance, exception or reservation, what constitutes, 4 A.L.R.2d 492.

Oil and gas as "minerals" within deed, lease or license, 37 A.L.R.2d 1440.

Solid mineral royalty as real or personal property, 68 A.L.R.2d 728.

Expenses and taxes deductible by lessee in computing lessor's oil and gas royalty or other return, 73 A.L.R.2d 1056.

Clay, sand or gravel as "minerals" within deed, lease or license, 95 A.L.R.2d 843.

Construction of oil and gas lease as to the lessee's right and duty of geophysical or seismograph exploration or survey, 28 A.L.R.3d 1426.

73B C.J.S. Public Lands § 197.