N.M. Code R. § 19.2.7.37 – Surety to Protect Surface Lessee Waivers

A. Before any lessee shall commence development or operations, including any and all prospecting activities upon the lands, such lessee shall execute and file with the commissioner a sufficient bond or other surety, in an amount to be fixed by the commissioner, but not less than five thousand dollars ($5,000.00), in favor of the state of New Mexico, for the benefit of the state, its contract purchaser, patentee, or surface lessee, to secure payment for any damages to the leased land or tangible improvements upon the leased land as may be suffered by reason of development and operations upon the land by the lessee.
B. The bond may be either a corporate or individual surety bond and such sureties may be required to furnish proof that their net worth free and clear of all indebtedness or claims equals or exceeds the amount of the obligation. In lieu of said bond, with the commissioner's consent, the lessee may file with the commissioner a waiver of bond or other surety duly executed and acknowledged by the applicable surface owner or holders owning improvements.
[12/31/1999; 19.2.7.37 NMAC - Rn, 19 NMAC 3. SLO 7.37, 9/30/2002]