New Mexico § 70-2-19 - Common purchasers; discrimination in purchasing prohibited
Full text of New Mexico New Mexico Statutes Annotated § 70-2-19 — Common purchasers; discrimination in purchasing prohibited, with citation guidance and answers to common questions.
§ 70-2-19. Common purchasers; discrimination in purchasing prohibited
A. Every person now engaged or hereafter engaging in the business of purchasing oil
to be transported through pipelines shall be a common purchaser thereof and shall,
without discrimination in favor of one producer as against another in the same field,
purchase all oil tendered to it which has been lawfully produced in the vicinity of,
or which may be reasonably reached by pipelines through which it is transporting oil,
or the gathering branches thereof, or which may be delivered to the pipeline or gathering
branches thereof by truck or otherwise, and shall fully perform all the duties of
a common purchaser. If any common purchaser shall not have need for all such oil lawfully produced within
a field or if for any reason it shall be unable to purchase all such oil, then it
shall purchase from each producer in a field ratably, taking and purchasing the same
quantity of oil from each well to the extent that each well is capable of producing
its ratable portions; provided, however, nothing herein contained shall be construed
to require more than one pipeline connection for each producing well. In the event any such common purchaser of oil is likewise a producer or is affiliated
with a producer, directly or indirectly, it is hereby expressly prohibited from discriminating
in favor of its own production or in favor of the production of an affiliated producer
as against that of others, and the oil produced by such common purchaser or by the
affiliate of such common purchaser shall be treated as that of any other producer
for the purposes of ratable taking. B. It shall be unlawful for any common purchaser to unjustly or unreasonably discriminate
as to the relative quantities of oil purchased by it in the various fields of the
state; the question of the justice or reasonableness to be determined by the division,
taking into consideration the production and age of wells in the respective fields
and all other factors. It is the intent of the Oil and Gas Act [this article] that all fields shall be
allowed to produce and market a just and equitable share of the oil produced and marketed
in the state, insofar as the same can be effected economically and without waste. C. It shall be the duty of the division to enforce the provisions of the Oil and Gas
Act, and it shall have the power, after notice and hearing as provided in Section 70-2-23 NMSA 1978 , to make rules, regulations and orders defining the distance that extension of the
pipeline system shall be made to all wells not served; provided that no such authorization
or order shall be made unless the division finds, as to such extension, that it is
reasonably required and economically justified or, as to such extension of facilities,
that the expenditures involved therein and the expense incident thereto are justified
in relation to the volume of oil available for transportation through said extension;
and such other rules, regulations and orders as may be necessary to carry out the
provisions of the Oil and Gas Act, and in making such rules, regulations and orders,
the division shall give due consideration to the economic factors involved. The division shall have authority to relieve such common purchaser, after due notice
and hearing as herein provided, from the duty of purchasing crude petroleum oil of
inferior quality or grade or that is not reasonably suitable for the requirements
of such common purchaser. D. Any person now or hereafter engaged in purchasing from one or more producers gas
produced from gas wells or casing-head gas produced from oil wells shall be a common
purchaser thereof within each common source of supply from which it purchases, and
as such it shall purchase gas lawfully produced from gas wells or casing-head gas
produced from oil wells with which its gas transportation facilities are connected
in the pool and other gas lawfully produced within the pool and tendered to a point
on its gas transportation facilities. Such purchases shall be made without unreasonable discrimination in favor of one
producer against another in the price paid, the quantities purchased, the bases of
measurement or the gas transportation facilities afforded for gas of like quantity,
quality and pressure available from such wells. In the event any such person is likewise a producer, he is prohibited to the same
extent from discriminating in favor of himself on production from gas wells or casing-head
gas produced from oil wells in which he has an interest, direct or indirect, as against
other production from gas wells or casing-head gas produced from oil wells in the
same pool. For the purposes of the Oil and Gas Act, reasonable differences in prices paid or
facilities afforded, or both, shall not constitute unreasonable discrimination if
such differences bear a fair relationship to differences in quality, quantity or pressure
of the gas available or to the relative lengths of time during which such gas will
be available to the purchaser. The provisions of this subsection shall not apply: (1) to any wells or pools used for storage and withdrawal from storage of natural
gas originally produced not in violation of the Oil and Gas Act or of the rules, regulations
or orders of the division; or (2) to persons purchasing gas principally for use in the recovery or production of
oil or gas. E. Any common purchaser taking gas produced from gas wells or casing-head gas produced
from oil wells from a common source of supply shall take ratably under such rules,
regulations and orders, concerning quantity, as may be promulgated by the division
consistent with the Oil and Gas Act. The division, in promulgating such rules, regulations and orders, may consider the
quality and the deliverability of the gas, the pressure of the gas at the point of
delivery, acreage attributable to the well, market requirements in the case of unprorated
pools, and other pertinent factors. F. Nothing in the Oil and Gas Act shall be construed or applied to require, directly
or indirectly, any person to purchase gas of a quality or under a pressure or under
any other condition by reason of which such gas cannot be economically and satisfactorily
used by such purchaser by means of his gas transportation facilities then in service.
Source: official New Mexico text · Last verified 2026-08-27
Frequently Asked Questions About New Mexico § 70-2-19
What does New Mexico Statutes Annotated § 70-2-19 cover?
Section 70-2-19 ("Common purchasers; discrimination in purchasing prohibited") is part of the New Mexico Statutes Annotated, the codified statutory law of New Mexico. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New Mexico § 70-2-19?
A common citation format is "New Mexico Statutes Annotated § 70-2-19" (New Mexico). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New Mexico law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Mexico official source linked on this page or consult a licensed New Mexico attorney.
How does New Mexico § 70-2-19 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Mexico can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New Mexico.