{"id":"SEC-23-008","kind":"order","level":"sector-regulator","jurisdiction":"New Mexico (State trust lands)","state":"NM","metro":"","industry":"23","agency":"","eco":"","issuer":"Commissioner of Public Lands Stephanie Garcia Richard, New Mexico State Land Office","authority":"NMSA 1978, §§ 19-10-6 and 14-4-5.6; 19.2.16.14 NMAC (emergency rulemaking)","instrument":"Emergency rule 19.2.100.71 NMAC, Temporary Shut-In of Oil Wells Due to Severe Reduction in the Price of Oil","title":"19.2.100.71 NMAC Temporary Shut-In of Oil Wells","dateIssued":"2020-04-21","effective":"2020-04-21 (\u0027effective immediately upon filing\u0027)","end":"Thirty days unless the commissioner commenced ordinary rulemaking (which she did; hearings Apr. 2020 and June 12, 2020), then \u0027in no event... more than 120 days\u0027 (about Aug. 19, 2020); replaced by the permanent rule adopted after the June 12, 2020 hearing (adoption date not verified)","startDate":"2020-04-21","endDate":"2020-06-12","quarters":["2020Q2","2020Q3"],"types":["OTHER","SUPPLY"],"addressees":["every oil and gas lessee of State trust lands"],"clause":"A. Basis for allowing shut in of oil wells: Pursuant to Section 19-10-6 NMSA 1978, the commissioner has determined that, because of a severe reduction in the price of oil, the beneficiaries of state trust lands will be better served if oil wells are allowed to be temporarily shut in rather than produced at a low price.... C. Any oil and gas lease issued by the commissioner of public lands and maintained in good standing... shall not expire if: (1) There is at least one well capable of producing oil located upon some part of the lands included in the lease and all such wells are shut in because of the severe reduction in the price of oil; (2) The lessee timely notifies the commissioner in writing within 30 days of the date all wells capable of producing oil have been shut in, on a form made available by the commissioner for that purpose, accompanied by a form C-103 filed with the oil conservation division or other written oil conservation division approval of the shut-in for each well shut in; and (3) The lessee timely pays an annual shut-in royalty... twice the annual rental due by the lessee under the terms of the lease but not less than three hundred twenty dollars ($320) per well per year.","enforcement":"Lease expiration under § D absent compliance; bonding requirements retained (§ E)","functions":["EX production sites (shut-in of State-lease wells)","PM (C-103 filings with OCD; notification forms)","CB (State trust lessees and their service contractors)"],"notes":"The State lessor\u0027s own finding that COVID-era prices required shut-ins; the release of Apr. 3, 2020 (SEC-23-011) ties the rule to \u0027The COVID-19 pandemic\u0027 and to storage and pipeline constraints.","sourceUrl":"https://www.nmstatelands.org/wp-content/uploads/2020/04/Rule-100.71_-4.21.2020.pdf","snapshot":"","fileExists":true,"fileBytes":21676,"grade":"primary","character":"","description":"","collection":"SEC-23","url":"/library/SEC-23-008","exhibitUrl":"/exhibit/SEC-23-008","citation":"Commissioner of Public Lands Stephanie Garcia Richard, New Mexico State Land Office, Emergency rule 19.2.100.71 NMAC, Temporary Shut-In of Oil Wells Due to Severe Reduction in the Price of Oil (Apr. 21, 2020) (Ex. SEC-23-008)","stateName":"New Mexico","related":["SEC-23-011","SEC-23-009"]}