New Mexico § 19-8-22 - Royalty

§ 19-8-22. Royalty

In addition to the annual rental, lessee shall be required to pay to the commissioner

a royalty of not less than two percent (2%) of the gross returns from the smelter,

mill, reduction process or other sale, less reasonable transportation and smelting

or reduction charges, if any, of all ores or materials mined and extracted from the

land. In addition, lessee shall pay to the commissioner as royalty not less than two percent

(2%) of any and all premiums and bonuses received in connection with the discovery,

production or marketing. Provided that on deposits of rare earths, precious stones or semi-precious stones,

and on uranium, thorium, plutonium or any other materials which have been or may hereafter

be determined by the atomic energy commission to be peculiarly essential to the production

of fissionable materials, lessee shall pay a royalty to be agreed upon by the lessee

and the commissioner, but not less than five percent (5%) of the gross returns from

the smelter, mill, reduction process or other sale, less reasonable transportation

and smelting or reduction charges, if any, of all ores or materials mined and extracted

from the land. In addition, lessee shall pay to the commissioner as royalty not less than five

percent (5%) of any and all premiums and bonuses received in connection with the discovery,

production or marketing of such ores or materials. Accounting for all royalties shall be made on the twentieth (20th) day of the month

following the month of sale or receipt of premium or bonus.