Proposed Reinstatement of Two BLM Oil and Gas Leases in New Mexico
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
Reinstates, if finalized, two terminated federal oil and gas leases in Rio Arriba County, New Mexico, held by R & R Royalty Ltd. The leases are NMNM128371 and NMNM128376, and no other leases have been issued for the affected lands. The lessee has paid back rent, administrative fees, and publication costs, and has accepted updated terms. The leases would return effective July 1, 2021, for no more than two years, with rent set at $20 per acre per year and a 20% royalty rate.
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Key Changes
- BLM proposes to reinstate oil and gas leases NMNM128371 and NMNM128376 in Rio Arriba County, New Mexico.
- The reinstated leases would be effective July 1, 2021, for no more than two years because they are in an extended term.
- The lessee accepted higher terms, including $20 per acre per year in rent and a 20% royalty rate.
Obligations
What this law requires
If leases NMNM128371 and NMNM128376 are reinstated, R & R Royalty Ltd. must pay rental of $20 per acre, or fraction thereof, per year for the reinstated leases.
If leases NMNM128371 and NMNM128376 are reinstated, R & R Royalty Ltd. must pay royalties at an increased rate of 20 percent under the reinstated leases.
If leases NMNM128371 and NMNM128376 are reinstated, R & R Royalty Ltd. must comply with the original lease terms and conditions, as modified by the amended lease terms, amended stipulations, and notices accepted for reinstatement.
R & R Royalty Ltd. must treat the reinstated leases as effective July 1, 2021, and limited to no greater than two years because the leases are in their extended term.