FAQs—Oil, Gas & Minerals
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310 Old Santa Fe Trail,
Santa Fe NM 87501
Emergency Shut-In Rule FAQ Sheet
Why is it that no more than two persons are allowed to own a state lease?
By State Land Office rule, no more than two persons/legal entities may be named as the lessee of record on an oil and gas lease. If two persons/legal entities are the lessee of record on a particular lease, the lessees are joint tenants and the state views each lessee as having a 100% undivided interest in it.
What exactly are Miscellaneous Instruments?
Miscellaneous Instruments are other contracts and instruments entered into by the lessee that do not affect record title. Per 18.104.22.168 NMAC, The State Land Commissioner does not approve Miscellaneous Instruments. Currently the Commissioner is only accepting three types of Miscellaneous Instruments, these types are identified on the Miscellaneous Instrument Filing Form. Other instruments such as assignments of interest, undivided working interests, overrides, farm outs/rights to explore and produce below a certain depth, overriding royalty assignments, operating rights, financial statements, and powers of attorney, etc. should be filed with the applicable County Clerk’s Office.
What are the fees for submitting assignments?
A $100 filing fee is required on each lease for which an assignment of record title is filed. A late fee of an additional $150 per lease is required if the assignment is filed with our office more than 100 days from the assignor’s execution date on the form. The fee for filing miscellaneous instruments is $50 for each associated lease. All filing fees are non-refundable.
What form is required when submitting a record title assignment?
NMSLO’s Assignment of Oil and Gas Lease (form 0-30-A) is required. The 0-30-A form should NOT be altered; the language of the official form will bind all parties. Attachments to the form are permissible, if necessary, in order to capture additional signatures. No reservations, percentages or depth restrictions are permissible in a record title assignment. Please complete the mailing address of the assignee, as lease correspondence will be sent to this address.
Is the assignment 0-30-A form available on the Internet?
Why does the form 0-30-A require all signatures be notarized?
Any legal instrument that is a transfer of real property must be acknowledged before a notary, required by statute. Record title transfers are considered transfers of real estate in New Mexico.
Why does my lease assignment have a suffix number attached to it?
Every time a transfer of record title is approved a suffix number, aka the assignment number, is systematically generated to distinctly identify that assignment. The number of assignments within an entire lease determines the next assignment number, generated sequentially.
Is a transfer of record title on a portion of the lands accepted?
Yes, an assignment of partial acreage may be filed as a record assignment. To indicate a partial acreage, Record Title Assignment please check the “Partial Assignment” box at the top of the 0-30-A form. No less than a full quarter/quarter or a full lot of an Oil and Gas Lease will be approved as a 100% Record Title Assignment.
If I have a large number of assignments to make, do I have to complete the paperwork for each and every assignment?
No, Blanket Assignments/exhibits are accepted by NMSLO. A Blanket Assignment must be completed in triplicate, notarized, original signatures are required on each, and an exhibit A must be attached. Additionally, a copy of the signed assignment must be submitted for each lease listed on the exhibit. Blanket assignments are limited to 25 lease assignments per exhibit and filing fees are due for each lease listed on said exhibit. Please contact our staff for a template of the required exhibit format.
What is an OGRID?
It is an Oil and Gas Remittance Identifier. This is a number that is utilized by three agencies: the State Land Office (NMSLO); the Oil Conservation Division (OCD); and the Taxation and Revenue Department (TRD). OGRID numbers are used by these agencies to identify each entity and track various transactions and data.
When do I need an OGRID?
When any business regarding Oil and Gas is conducted with the three state agencies, the entity must first obtain an OGRID number, i.e. in order to bid at our State Land Office monthly Oil and Gas Lease Sale, bidders must have an OGRID number. To request an OGRID please contact NMSLO’s Oil and Gas Division.
If we do not remember our OGRID number, can we submit an assignment without it?
Yes, the Oil, Gas, and Minerals Division staff will research the OGRID number if it is left blank on the assignment form. The OGRID number will be documented on your returned copy of the approved assignment.
How do I notify the Land Office of an address change?
A formal request must be submitted either by letter or on the Change of Address Form, available online under Oil and Gas Forms. Please provide the new address as well as the previous address. Please provide current contact information as well.
Do I need to procure and file a bond or a waiver when I acquire a state Oil and Gas Lease?
A Protect Surface Bond Waiver may be filed in lieu of a bond if there are no plans for development and no surface disturbance on lease.
Prior to the commencement of development/operations/surface disturbance on a lease, the NMSLO requires that a sufficient bond be filed with, and approved by the Commissioner.
What kind of bonds does the Land Office require from lessees?
- Single lease Surface Damage Bond (Provides Surety for one Oil and Gas Lease)
- Multi-lease blanket Surface Damage Bond (Provides Surety for two or more Oil and Gas Leases)
- Megabond (Provides Surety for Oil and Gas Leases, etc. Please see the Megabond form for coverage details)
- A Cash Collateral Assignment is an acceptable alternative to procuring a bond from a surety company. This form must be submitted in conjunction with the applicable bond form, determined by the amount deposited.
- Please refer to the Bond instructions, law and rule document for detailed information regarding bonds
- See Oil and Gas Forms
How do I know when the oil and gas lease sales are held?
The sales are held the third Tuesday of every month. Lease sales are held online through the SLO auction contractor, EnergyNet.
Monthly Oil and Gas Lease Sale Notices are posted on the NMSLO website.
When would I need to pay a shut-in gas royalty?
Shut-in Royalty (SIR) payments are due per well, per year. A completed Shut-In Royalty Payment form and the applicable payment may be submitted if:
- The associated lease contract contains the shut-in provision.
- The well is capable of producing gas in paying quantities.
- The well is temporarily shut-in due to lack of market or lack of a pipeline connection.
- The lease(s) have not been extended in excess of the time allowed per the lease contract.
The SIR payment due is dependent upon the terms of your lease contract. The payment must be “timely paid,” which means on or before the next lease anniversary date after 90 days from the date of shut-in. Each payment is reviewed according to the SIR requirements before acceptance or rejection.
What is a stipulation?
A stipulation is an amendment of the terms of an older oil and gas lease to the current lease terms. Upon the Commissioner’s approval, the lease assignment stipulated to the current lease series terms now has access to the shut-in royalty payment and extension clauses, which were not offered in the older lease contracts.
The Stipulation fee is $150.00, the form and instructions are available on the Oil & Gas Forms page.