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NM HB398

NM HB398
Oil, Gas & Vented Gas Royalties


summary

Introduced
01/29/2019
In Committee
Crossed Over
Passed
Dead
03/16/2019

Introduced Session

2019 Regular Session

Bill Summary

AN ACT RELATING TO THE STATE LAND OFFICE; SETTING THE ROYALTY RATE ON FUTURE OIL AND GAS DEVELOPMENT LEASES ON STATE TRUST LANDS TO ENHANCE REVENUE FOR BENEFICIARIES; REQUIRING ROYALTY ON VENTED OR FLARED GAS.

AI Summary

This bill sets the royalty rate on future oil and gas development leases on state trust lands to enhance revenue for beneficiaries. It requires royalty payments on vented or flared gas, with the ability for the state to waive royalties on some vented or flared gas. The bill also establishes thresholds for when a higher one-quarter royalty rate applies, with the initial thresholds set at 20,000 barrels of oil or 75,000 mcf of gas per month, and the commissioner given authority to adjust the thresholds by rule after the first year.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Action Postponed Indefinitely (on 01/29/2019)

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