This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
New Mexico Minimum Royalty Payments refer to the minimum amount of money that oil and gas companies are legally obligated to pay to landowners in the state of New Mexico for the extraction and use of natural resources from their land. These payments ensure that landowners receive fair compensation for their mineral rights and help to regulate the oil and gas industry. The New Mexico Minimum Royalty Payments are set by the State Land Office (SLO) and are calculated based on a percentage of the revenue generated by oil and gas production, typically ranging from 12.5% to 20%. Landowners receive these payments as a percentage of the gross proceeds for the extracted resources, minus any allowable deductions or costs associated with exploration and exploitation. There are different types of New Mexico Minimum Royalty Payments that landowners can receive, such as: 1. Oil and Gas Lease Royalties: These royalties are paid to landowners who have leased their mineral rights to oil and gas companies. The minimum payment is determined by the terms of the lease agreement. 2. Exploration and Production Royalties: Once oil and gas companies discover and start extracting resources from the land, they are required to pay minimum royalties based on the production value and the predetermined percentage decided by the SLO. 3. State Trust Land Royalties: New Mexico has vast amounts of state trust land, and the SLO manages these lands on behalf of the trust beneficiaries, including public schools, universities, and hospitals. Minimum royalties are paid on state trust lands to maximize the financial returns for these beneficiaries. It is important for landowners to understand the New Mexico Minimum Royalty Payments to ensure they are receiving fair compensation. These payments can significantly impact the income of landowners and help support the economy of the state. The SLO regularly monitors compliance with the minimum payment requirements to ensure transparency and fair practices within the oil and gas industry. Keywords: New Mexico, minimum royalty payments, oil and gas, landowners, natural resources, state land office, revenue, extraction, mineral rights, fair compensation, oil and gas lease royalties, exploration and production royalties, state trust land royalties, trust beneficiaries, compliance, transparency.
