A. Application for community caliche pit permit.

1. (1) Application for community caliche pit permits may be obtained either by directly contacting the oil, gas and minerals division of the state land office in Santa Fe or by filing an application with the Hobbs field office for sites in Roosevelt, Chaves, Eddy, and Lea counties. All payments made at the Hobbs field office shall be by check or money order, including application and permit fees, purchase payment, rentals and sureties.

2. (2) Each application for a community caliche pit permit must contain the following:

   1. (a) a nonrefundable application fee set forth in the schedule of fees;
   2. (b) a legal description of the location of the land to be mined or the pit site number (if known);
   3. (c) the necessary surety required by Paragraph (2) of Subsection B of 19.2.5.12 NMAC; and

   4. (d) either an advance payment or performance bond, as follows:

      1. (i) advance payment of ten percent of market value, as determined by the commissioner, if the total amount due under Subsection C of 19.2.5.10 NMAC will exceed two thousand dollars ($2,000.00) with the remaining amount due upon completion of the project; or
      2. (ii) a performance bond in the amount of two thousand dollars ($2,000.00);
   5. (e) once the application is completed and the availability of the pit site is confirmed, the permit shall be issued by the Hobbs field office or by the Santa Fe office; the permit must be in the possession of the permittee at all times at the pit site location and while the extractions are taking place or the permittee may be subject to payment of double the amount due.

C. Payment for caliche under a community caliche pit permit.

1. (1) The purchase price to be assessed on the community caliche pit permits shall be negotiated and based on market value as determined by the commissioner, but, shall be no less than those on the following schedule: caliche:

   1. (a) southern Lea county (township 16 south through 20 south, range 32 east through 39 east; and township 21 south through 26 south, range 32 east through 38 east.):

      Amount Minimum purchase price

      first 7,000 cu. yds. $1.45/loose cu. yd.

      next 3,000 cu. yds. $1.00/loose cu. yd.

      amounts over 10,000 cu. yds. $ .55/loose cu. yd.

   2. (b) all other areas:

      Amount Minimum purchase price

      first 7,000 cu. yds. $ .85/loose cu. yd.

      amounts over 7,000 cu. yds. $ .55/loose cu. yd.

2. (2) The payment due on permits shall be made within 30 days after expiration of the permit.

D. Term of community caliche pit permit and other mineral permits.

1. (1) The term of each permit shall be determined by the commissioner based upon such considerations as the length of time required by the applicant, the demand for the pit site, as well as other relevant factors; provided, however, that, except as provided in Paragraph (2) of Subsection D of 19.2.5.10 NMAC, no permit shall be issued for longer than 15 days.
2. (2) If delays beyond the control of the permittee are incurred in the removal of the minerals, or if the permittee can show that the permittee will diligently mine the mineral for a longer period, then the commissioner may, in the commissioner’s discretion, extend a permit period beyond 15 days.

F. Cancellation, revocation of a community caliche pit and other mineral permits. A permit may be cancelled or revoked at any time by the commissioner for breach or violation of the terms or covenants of the permit or these rules and regulations. A cancellation or revocation does not relieve the permittee of any reclamation duties.

[5/14/1999; 19.2.5.10 NMAC - Rn, 19 NMAC 3. SLO 5.10, 9/30/2002; A, 6/11/2019]