A. Performance reports, reclamation and inspection for leases, community caliche pit and other mineral permits.

1. (1) Upon termination of a lease or permit, the lessee or permittee shall submit a final report, on the forms prescribed by the commissioner, which shall specify the amount produced under the lease or permit and other information on the operations required by the commissioner. These forms shall be returned to the commissioner along with the final purchase payment.
2. (2) For areas disturbed by mineral operations, reclamation will be required; however, the commissioner may waive such requirements if it is determined to be in the best interest of the trust to keep the pit open.
3. (3) The records, books of account and operations pertaining to mining, extraction, transportation, production and sales of minerals taken from leased and permitted lands shall be open and available for inspection or field audit by the commissioner or the commissioner's authorized agents at all reasonable times.

B. Surety for leases, community caliche pit and other mineral permits.

1. (1) Leases: The following bonds are required for each lease issued under this rule

   1. (a) a performance bond or other surety in an amount set by the commissioner; and
   2. (b) a minimum damage bond or other surety of at least five thousand dollars ($5,000.00).

2. (2) Community caliche pit and other mineral permits. A permittee under this rule must submit the following bonds:

   1. (a) a minimum damage bond or other surety of at least five thousand dollars ($5,000.00); and
   2. (b) when the estimated purchase price exceeds two thousand dollars ($2,000.00), and the permittee did not pay ten percent of market value upon application for a permit, the permittee must provide a performance bond in the amount of two thousand dollars ($2,000.00); the commissioner or the commissioner's authorized agent may, in the commissioner’s discretion, waive the requirement for surety upon a showing by the applicant that the permit will be used for the removal of a small, incidental amount of materials.
3. (3) The required sureties shall be filed at the time of execution of the permit or lease unless a different filing date is allowed by the commissioner.
4. (4) A surety for damage on purchase contract or patented surface land shall not be less than five thousand dollars ($5,000.00) for a single lease or not less than ten thousand dollars ($10,000.00) for multiple leases.
5. (5) Sureties shall be either bonds issued by a bonding company acceptable to the commissioner or letters of credit or other surety acceptable to the commissioner.
6. (6) Megabond. With the approval of the commissioner, in lieu of the separate surface improvement damage and performance bonds or other surety, a twenty-five thousand dollar ($25,000.00) bond or other surety may be used at the option of lessee for the use and benefit of the commissioner, to secure surface improvement damage and the performance of the lessee as lessee under one or more state leases or permits for minerals, oil and gas, coal or geothermal resources, or as holder under one or more state rights of way or easements which the lessee or its successors or assigns has executed with the commissioner. The lessee will be obligated to perform and keep all terms, covenants, conditions and requirements of all state leases or permits for minerals, oil and gas, coal or geothermal resources and of all state rights of way or easements executed with the commissioner, including the payment of royalties when due and compliance with all established mining plans and reclamation requirements.

C. Surface operations and reclamation for leases, community caliche pit and other mineral permits. Surface trash and waste disposal:

1. (1) Lessees and permittees shall remove all surface trash and debris caused by their operations from the lease and permit area and shall keep the lease and permit premises free and clear of trash and debris. The commissioner may require the lessee or permittee to fence the lease or permit area.

2. (2) Hazardous or toxic wastes or petroleum products may not be disposed of on the lease or permit premises, and all such materials used in the operations must be removed from the lease area immediately upon termination of the lease or permit. Due care shall be used to prevent leaks and spills of such materials; clean up of any spills and reclamation of the area shall be performed in consultation with the commissioner.

   [5/14/1999; 19.2.5.12 NMAC - Rn, 19 NMAC 3. SLO 5.12, 9/30/2002; A, 6/11/2019]

   HISTORY OF 19.2.5 NMAC:

   Pre-NMAC History: The material in this part was derived from that previously filed with the State Records Center and Archives under:

   Rule 5, Rules Relating To Leases For Gypsum, Clay, Sand, Gravel, Caliche, Stone, Shale, And Other Forms Of Bedded Deposits Including Pumice, Perlite And Forms Of Volcanic Deposits Used In The Manufacture of Building Blocks, Filed 3/11/1981;

   SLO Rule 5, Relating To Leases For Gypsum, Clay, Sand, Gravel, Caliche, Stone, Shale, And Other Forms Of Bedded Deposits Including Pumice, Perlite And Forms Of Volcanic Deposits Used In The Manufacture Of Building Blocks, Filed 1/20/1984;

   SLO Rule 5, Relating To Leases For Gypsum, Clay, Sand, Gravel, Stone, Shale, Perlite, Volcanic Deposits, And The Granting Of Permits For Caliche, Filed 8/7/1985;

   SLO Rule 5, Relating To Leases And Permits For Caliche, Gypsum, Clay, Sand, Gravel, Stone, Shale, Perlite, Volcanic Deposits, And Borrow Dirt, Filed 9/3/1992.

   History of Repealed Material: [Reserved]