The COVID Project
The record
- Jurisdiction
- New Mexico (State trust lands) · New Mexico
- Level
- Sector regulator
- Authority
- NMSA 1978, §§ 19-10-6 and 14-4-5.6; 19.2.16.14 NMAC (emergency rulemaking)
- Issued
- 2020-04-21 Apr. 21, 2020
- Effective
- 2020-04-21 ('effective immediately upon filing') (read as 2020-04-21)
- End
- Thirty days unless the commissioner commenced ordinary rulemaking (which she did; hearings Apr. 2020 and June 12, 2020), then 'in no event... more than 120 days' (about Aug. 19, 2020); replaced by the permanent rule adopted after the June 12, 2020 hearing (adoption date not verified) (read as 2020-06-12)
- In force
- Apr. 21, 2020 to June 12, 2020
- Quarters
- 2020 Q22020 Q3
2020 Q22020 Q32020 Q42021 Q12021 Q22021 Q3
- Limitation types
- Supply chainOther
- Addressees
- every oil and gas lessee of State trust lands
- Functions reached
- EX production sites (shut-in of State-lease wells)
- PM (C-103 filings with OCD; notification forms)
- CB (State trust lessees and their service contractors)
- Collection
- Mining, Oil and Gas, and Energy Services SEC-23
Operative words
A. Basis for allowing shut in of oil wells: Pursuant to Section 19-10-6 NMSA 1978, the commissioner has determined that, because of a severe reduction in the price of oil, the beneficiaries of state trust lands will be better served if oil wells are allowed to be temporarily shut in rather than produced at a low price.... C. Any oil and gas lease issued by the commissioner of public lands and maintained in good standing... shall not expire if: (1) There is at least one well capable of producing oil located upon some part of the lands included in the lease and all such wells are shut in because of the severe reduction in the price of oil; (2) The lessee timely notifies the commissioner in writing within 30 days of the date all wells capable of producing oil have been shut in, on a form made available by the commissioner for that purpose, accompanied by a form C-103 filed with the oil conservation division or other written oil conservation division approval of the shut-in for each well shut in; and (3) The lessee timely pays an annual shut-in royalty... twice the annual rental due by the lessee under the terms of the lease but not less than three hundred twenty dollars ($320) per well per year.
Enforcement
Lease expiration under § D absent compliance; bonding requirements retained (§ E)
Notes
The State lessor's own finding that COVID-era prices required shut-ins; the release of Apr. 3, 2020 (SEC-23-011) ties the rule to 'The COVID-19 pandemic' and to storage and pipeline constraints.
Retrieval note21676 bytes; rule history line: '19.2.100.71 NMAC, Rn, SLO Rule 1, Section 1.072, 12/13/2002; Repealed, 6/30/2016; 19.2.100.71 NMAC - N, [4/21/2020]'.