N.M. Admin. Code § 19.2.6.18

Current through Register Vol. 35, No. 23, December 10, 2024

Section 19.2.6.18 - DEVELOPMENT SURETY

A. Before commencing excavation operations or development upon leased lands, a lessee shall execute and file with the commissioner a good and sufficient bond or other appropriate surety in an amount to be fixed by the commissioner and based upon the approved mine plan to:

(1) guarantee the performance of all covenants and obligations under the coal lease, including the obligation to pay royalties;

(2) ensure that all aspects of mining operations and reclamation operations are conducted in conformity with the mine permit issued by the mining and minerals division of the energy, minerals and natural resources department pursuant to the Surface Mining Act;

(3) ensure compensation for damage to the surface or surface improvements in the absence of an agreement between the coal lessee and any surface owner.

B. A bond filed with the mining and minerals division of the energy, minerals and natural resources department pursuant to the Surface Mining Act will satisfy the requirements in Subsection B of 19.2.6.18 NMAC unless the commissioner, in the commissioner's discretion, determines that the bond filed with the mining and minerals division is insufficient. Any bond or surety filed with the commissioner pursuant to the provisions of this Rule shall be released by the commissioner upon a showing that the lessee has complied with the obligations as specified in Subsections A, B and C of 19.2.6.18 NMAC.

C. With the approval of the commissioner, a twenty-five thousand dollar ($25,000.00) bond or other surety may be used at the option of lessee for the use and benefit of the commissioner, to secure surface improvement damage and the performance of the lessee as lessee under one or more state leases or permits for minerals, oil and gas, coal or geothermal resources, or as holder under one or more state rights of way or easements which the lessee or its successors or assigns has executed with the commissioner. The lessee will be obligated to perform and keep all terms, covenants, conditions and requirements of all state leases for minerals, oil and gas, coal, or geothermal resources and of all state rights of way and easements executed with the commissioner including the payment of royalties when due and compliance with all established mining plans and reclamation requirements.

N.M. Admin. Code § 19.2.6.18

12/31/99; 19.2.6.18 NMAC - Rn, 19 NMAC 3. SLO 6.18, 09/30/02, Amended by New Mexico Register, Volume XXX, Issue 11, June 11, 2019, eff. 6/11/2019