I’m fresh off the plane from the AAPL Santa Fe Land Institute and must commend the event planners for a well-organized and informative seminar. Patrick L. Padilla, Assistant Commissioner, Mineral Resources, New Mexico State Land Office gave a great update on the SLO. Below are some of the key points:
Proposed 19.2.100 New Mexico Administrative Code, Section 71 (“Section 71”) allows for the temporary shut-in of oil wells due to the severe reduction in the price of oil. Section 71 will become effective October 31, 2016 for two years unless terminated earlier or extended by the Commissioner for an additional two years after proper notice and a public hearing. Rental shall be twice the annual rental provided in the lease but not less than $320.00 per well. Timely notice thirty (30) days prior to the shut-in date on an approved form is required. Note the Commission will vote on proposed Section 71 at a public hearing on October 6, 2016.
Proposed Section 71 can be found HERE.
Information on the October 6, 2016 Public Hearing can be found HERE.
Proposed Restoration and Remediation Fund would divert 1% of revenues from the state’s land maintenance fund, or approximately $700,000 a year to “handle things that aren’t going to be covered by annual appropriations” (-Aubrey Dunn). The Fund would not levy additional fees on the industry.
Press Release on the Fund can be found HERE.
Proposed Early Childhood Development Land Grant Act seeks to transfer unleased federal mineral acres beneath private lands to the State of New Mexico. 95% of all revenue generated from the lease of such transferred lands would be placed in the “early childhood education nonsectarian services land grant permanent fund.” Such funds would be used to provide “nonsectarian services for children from birth until the age of kindergarten eligibility that are provided by a school district, pueblo, or tribal entity, the New Mexico school for the blind and visually impaired or the New Mexico school for the deaf…” The remaining 5% of revenue would be used by the State Land Office to cover administrative costs.
Our previous blog post covering the Act can be found HERE.
The 2017 Legislative Session begins January 17, 2017.
Patrick L. Padilla generously provided his presentation. It can be downloaded HERE.
Patrick L. Padilla’s bio can be found HERE.