New Mexico § 19-10-54 - Existing pooling and communitization agreements confirmed and validated; segregation of leases in accordance with prior agreement

§ 19-10-54. Existing pooling and communitization agreements confirmed and validated; segregation of leases in accordance with prior agreement

In all cases where the commissioner of public lands has heretofore approved agreements

made by oil and gas lessees of state lands with other oil and gas lessees of state

lands or with oil and gas lessees of the United States or with lessees or mineral

owners of fee or privately owned lands or oil and gas lessees of tribal or allotted

Indian lands for the purpose of forming a proration unit or portion thereof, or well

spacing unit in conformity with any order, rule or regulation of the New Mexico oil

conservation commission, or for the purpose of forming a cooperative or unit agreement

in the interest of conservation and the prevention of waste of oil and gas, and where

all rentals have been paid in accordance with the terms of such leases embracing state

lands and have been accepted by the commissioner of public lands and such leases have

not been canceled for nonperformance by the lessee or any assignee of the terms or

conditions thereof or any of the terms or conditions of such pooling, communitization,

cooperative or unit agreement, and have been recognized by the commissioner of public

lands as being in good standing, such leases are hereby declared to be valid and existing

contracts with the state of New Mexico according to their terms and provisions and

the obligation of the state and of the commissioner of public lands to observe and

conform to the terms and provisions thereof, are hereby recognized and such leases

and the approval of such pooling, communitization, cooperative or unit agreements

are hereby validated and such leases shall continue in full force and effect according

to their terms and conditions as modified, extended or amended by such pooling, communitization,

cooperative or unit agreements as to all of the lands embraced in each such lease;

provided, however, in any case where a cooperative or unit agreement heretofore approved

by the commissioner of public lands contains a provision segregating any lease committed

to such agreement as to lands within and without the cooperative or unit area so as

to constitute separate leases as to such portions of said lands, such lease shall

be segregated according to the provisions of the cooperative or unit agreement.