N.M. Admin. Code § 19.2.6.7

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

Section 19.2.6.7 - DEFINITIONS

As used in 19.2.6 NMAC and state coal leases:

A. Logical mining unit - means an area under the effective control of a single operator, which is capable of being developed and operated in an efficient, economical and orderly manner as a single operation;

B. Market value - means the amount a knowledgeable and willing buyer would pay a knowledgeable and willing seller for equivalent coal FOB at the minemouth under an arm's-length sales contract. Market value can be determined by examining comparable arm's-length sales in the same coal field, by examining arm's-length sales of coal in other fields and making adjustments for differences, or by determining a downstream value for the subject coal or coal product and netting back actual and reasonable costs to arrive at a FOB minemouth value;

C. Mine plan - means a brief summary of how and when the leased lands will be developed. The plan should include anticipated dates for obtaining the necessary permits, commencing mining operations, and completing operations; should state anticipated annual production levels from the opening of the mine until its closing; should identify anticipated markets; and should show the planned progression and time frames for mining and reclaiming each tract within the logical mining unit;

D. Proceeds - means the total consideration accruing to the coal seller, without deduction of any kind. It includes but is not limited to: reimbursements, payments or credits for advanced prepaid reserve payments subject to recoupment through reduced prices in later sales; advanced exploration or mine development costs that are subject to recoupment through reduced prices in later sales; any other consideration given to the seller or any action taken or not taken in exchange for reduced prices; take-or-pay payments; and tax reimbursements. It is the intent of this Rule that lessees act as prudent operators in obtaining the maximum possible prices. Therefore, "proceeds" shall equal the highest price a prudent operator may receive under its contract. Also, if the operator fails to take proper or timely action to receive price increases to which it is entitled, and which action would have been taken by a prudent operator, then "proceeds" shall equal that obtainable price; and

E. Recoverable reserves - means the commercially mineable reserve base excluding all coal that will be left such as in pillars, fenders and property barriers. Generally, recoverable reserves will be based on quantities identified in the mine plan; however, with the concurrence of the commissioner, the amount of recoverable reserves may be changed as new information is developed.

F. "Schedule of fees"- means a list of fees that must be paid for performance of certain administrative functions. The schedule of fees shall be published on the state land office website and is subject to change at the discretion of the commissioner. Unless otherwise noted in the schedule of fees or in this rule, the fee shall be non-refundable.

N.M. Admin. Code § 19.2.6.7

12/31/99; 19.2.6.7 NMAC - Rn, 19 NMAC 3. SLO 6.7, 09/30/02, Amended by New Mexico Register, Volume XXVII, Issue 12, June 30, 2016, eff. 6/30/2016