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NM SB500

NM SB500
Oil, Gas & Vented Gas Royalties


summary

Introduced
02/08/2019
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. The bill requires royalty payments on vented or flared gas, with the lessor able to waive the royalty on gas that is necessarily vented or flared. The bill also establishes a threshold for when the royalty rate increases from at least 3/16 to 1/4 - starting at 20,000 barrels of oil per month or 75,000 mcf of gas per month, and allowing the Commissioner to set the threshold by rule starting in 2020.

Committee Categories

Agriculture and Natural Resources

Sponsors (1)

Last Action

Action Postponed Indefinitely (on 02/08/2019)

bill text


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