FAQs—Oil, Gas & Minerals

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.

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.

Miscellaneous Instruments are other contracts and instruments entered into by the lessee that do not affect record title. Per 19.2.100.43 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.

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.

See Oil and Gas Forms

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

Yes.

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.

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.

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:             

1. The associated lease contract contains the shut-in provision.
2. The well is capable of producing gas in paying quantities.
3. The well is temporarily shut-in due to lack of market or lack of a pipeline connection.
4. 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.

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