N.M. Stat. Ann. § 7-32-6
The department may determine the value of products severed from a production unit when:
C. products are severed and removed from a production unit and a value as defined in the Oil and Gas Ad Valorem Production Tax Act is not established for such products.
The value determined by the department shall be commensurate with the actual price received for products of like quality, character and use which are severed in the same field or area.
History: 1953 Comp., § 72-22-6, enacted by Laws 1959, ch. 55, § 6; 1978 Comp., § 7-32-6, 2025, ch. 130, § 133.
The 2025 amendment, effective July 1, 2025, replaced each occurrence of "commission" with "department" throughout the section.
Determination of value. — The statute does not mandate the way in which the department must calculate processing costs, whether by a comparable value or by some other method. Rather, the final value of natural gas calculated by the department must be commensurate with similar products. Chevron U.S.A., Inc. v. State ex rel. Taxation and Revenue Dep't, 2006-NMCA-050, 139 N.M. 498, 134 P.3d 785, cert. denied, 2006-NMCERT-005, 139 N.M. 567, 136 P.3d 568.