TITLE
19 NATURAL RESOURCES AND
WILDLIFE
CHAPTER
2 STATE TRUST LANDS
PART
8 RELATING TO AGRICULTURAL
LEASES
19.2.8.1 ISSUING AGENCY: Commissioner of Public Lands, New Mexico State Land Office, 310
Old Santa Fe Trail, P.O. Box 1148, Santa Fe, New Mexico 87501, Phone: (505)
827-5713
[6/29/96;
19.2.8.1 NMAC - Rn, 19 NMAC 3 SLO 8.1, 09/30/02]
19.2.8.2 SCOPE: Current and future lessees of state trust lands.
[6/29/96;
19.2.8.2 NMAC - Rn, 19 NMAC 3 SLO 8.2, 09/30/02]
19.2.8.3 STATUTORY AUTHORITY: Section 19-1-23 NMSA 1978.
[6/29/96;
19.2.8.3 NMAC - Rn, 19 NMAC 3 SLO 8.3, 09/30/02]
19.2.8.4 DURATION: Permanent.
[6/29/96;
19.2.8.4 NMAC - Rn, 19 NMAC 3 SLO 8.4, 09/30/02]
19.2.8.5 EFFECTIVE DATE: June 29, 1996, unless a later date is cited at the end of a
section.
[6/29/96;
19.2.8.5 NMAC - Rn, 19 NMAC 3 SLO 8.5, 09/30/02; A, 06/30/16]
19.2.8.6 OBJECTIVE: To clarify the definition of an agricultural lease, add specific
guidelines for conducting appraisals of improvements located on state trust
lands, update and clarify the procedures for documenting a lessee’s
improvements, delete the provision allowing applications to lease a part of the
state trust lands held under an existing lease, require a lessee to fence land
held under an agricultural lease unless the land is managed in conjunction with
adjoining land, add language clarifying when a sublease is created, clarify
aspects of processing multiple applications ("competitive bids") to
lease the same trust land, and address other aspects of leasing lands under an
agricultural lease of state trust lands.
[6/29/96;
19.2.8.6 NMAC - Rn, 19 NMAC 3 SLO 8.6, 09/30/02]
19.2.8.7 DEFINITIONS: The following terms as used in this rule shall have the meaning
indicated unless otherwise clearly stated in the text:
A. “Agricultural
lease” - The commissioner's conveyance, in writing, of the right to use and
possess the surface of specified state land for the production of crops and
other products of the soil, animal husbandry or for other related uses. An
agricultural lease may be subject to such other rights and uses on the same
land as the commissioner may authorize in writing. The lease instrument shall
be in a form and contain such provisions as may be prescribed by the
commissioner, which provisions shall be deemed to include all pertinent
statutes and state land office Rules in effect at lease issuance or as thereafter
amended or promulgated.
B. “Agricultural
sublease” - A transaction or arrangement whereby a lessee grants to another
rights or interests conveyed to the lessee by an agricultural lease. A sublease
is created when the lessee transfers to another either the possession of the
leased premises, or a portion thereof, or the management and control of crops
and other products of the soil, animals, or other permitted uses located on the
leased premises. A sublease is not created when the lessee retains possession
of the leased premises and manages and controls crops and other products of the
soil or animals located on the leased premises but not owned by the lessee.
C. “Authorized
improvements” - Improvements placed, made or developed on state lands by a
lessee with the express written consent of the commissioner; improvements
placed, made or developed on state lands by a lessee that are valued within the
limitations prescribed by Section 19-7-51 NMSA 1978; improvements placed, made
or developed on state lands prior to March 1, 1955; and, improvements placed,
made or developed on state lands after March 1, 1955, but prior to March 1,
1975, provided such improvements are approved in writing by the commissioner on
or before October 31, 1993.
D. “Cultivated
land” - State trust land suitable for the production of crops or other
products of the soil. Cultivated land may be dry cropland, irrigated cropland,
orchards or regularly irrigated pasture.
E. “Dry cropland”
- Cultivated land for which rainfall is the only source of water to produce
crops.
F. “Grazing land”
- State trust land suitable for the production and utilization of native forage
and on which the ecological plant community is suitable for animal husbandry.
G. “Irrigated
cropland” - Cultivated land for which the primary supply of water to
produce crops is from a man-made diversion of ground water or surface water.
H. “Lessee” -
The party of record at the state land office who leases state trust land from
the commissioner under an agricultural lease.
I. “Open acreage”
- State trust land which is not leased and has not been withdrawn from leasing
by the commissioner as shown on the state land office departmental tract books.
J. “Replacement
cost less physical deterioration or functional obsolescence” - The cost of
replacing the improvements, at current prices, with improvements having the
same utility equivalent, less a deduction for the total loss in value arising
from the physical deterioration or functional obsolescence of the improvement.
K. “Schedule of fees” - A list of fees that must be paid for
performance of certain administrative functions. The schedule of fees shall be published on
the state land office website and is subject to change at the discretion of the
commissioner. Unless otherwise noted in
the schedule of fees or in this rule, the fee shall be non-refundable.
L. “Simultaneous applications” - Two or more valid agricultural lease applications
that apply to lease the same land and that are received at the state land
office on the same regular work day.
M. “State trust
land” - Land depicted as within the care, custody and control of the
commissioner of public lands by the state land office master title tract books.
N. “Unauthorized
improvements” - Improvements other than authorized improvements placed,
made or developed on state trust lands.
[3/11/81,
1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.7 NMAC - Rn, 19 NMAC 3 SLO 8.7,
09/30/02; A, 04/15/10; A, 06/30/16]
19.2.8.8 AGRICULTURAL LEASES:
A. The commissioner may lease state trust land for
agricultural purposes in such manner and upon such terms as the commissioner
determines to be in the best interests of the trust for which the lands are
held by the state.
B. Each agricultural lessee shall protect the leased
state trust lands from waste and trespass.
C. One who leases
state trust lands shall fence the lands leased, unless such lands shall be used
and managed in conjunction with adjacent land, or are subject to an exchange of
use agreement.
D. Agricultural leases shall be issued for animal
husbandry, cultivated land or both, or for other related uses.
E. The commissioner may, at any time, withhold
state trust land from agricultural leasing or reject applications to lease,
whether such applications are to lease open acreage, to renew an existing
lease, or to lease land already under lease to another, if the commissioner
determines such action is in the best interests of the trust for which the land
is held.
F. All agricultural leases shall be upon forms
prescribed by the commissioner and shall contain such terms and conditions as
are required by law or as are deemed appropriate by the commissioner. Each
lease shall have only one (1) mailing address of record at the state land
office regardless of the number of lessees under the lease, and the
commissioner shall mail all lease notices to such address of record and no
other.
G. Agricultural leases with terms of five (5)
years or less may be issued by the commissioner without advertisement or public
auction. All such leases shall commence on October 1st and expire on September
30th; provided, however, leases on open acreage issued after October 1st shall
bear the actual date of execution and shall be issued for the balance of that
lease year plus no more than four (4) additional years.
H. Outstanding agricultural leases and permits on lands
acquired by the state of New Mexico from the United States shall be honored
until their expiration. The lessees under such leases shall have the right as
provided by law to match competitive lease bids and obtain new leases.
[12/1/92,
6/29/96; 19.2.8.8 NMAC - Rn, 19 NMAC 3 SLO 8.8, 09/30/02; A, 04/15/10]
19.2.8.9 APPLICATIONS TO LEASE:
A. Requirements
for all applications. Applications
for agricultural leases may be filed for state trust lands shown on the state
land office departmental tract books as either open acreage or land under lease
at the time an application is submitted.
The commissioner shall reject any application to lease state trust
lands, whether held under an existing lease or not under lease at the time
application is made, if the commissioner determines that the award of a lease
to the applicant would not be in the best interests of the trust.
(1) A
single application shall not be accepted for lands held under more than one
existing lease or for both open acreage and lands held by an existing lease.
(2) All
agricultural lease applications shall be made under oath on forms prescribed by
the commissioner.
(3) All
agricultural lease applications for open acreage or competitive bid shall
include a sworn appraisal of the land applied for, and all improvements located
thereon, made by a disinterested party who has personal knowledge and ability
to provide a true and accurate assessment of the value of the land and the
improvements. An existing lessee
applying for a new lease on trust land which the lessee currently leases, in
lieu of an appraisal of the improvements,
shall submit a listing of all improvements located on the land, but need not
submit an appraisal of the land.
(a) All
appraisals of improvements made for the purposes of this rule shall be made on
the basis of replacement cost less a deduction for the total loss in value
arising from the physical deterioration or functional obsolescence of the
improvements, and a value shall be listed separately for each improvement.
(b) The
inclusion of unauthorized improvements on any appraisal or listing of
improvements submitted to the commissioner for any purpose shall not be
interpreted as approval of those improvements by the commissioner. Improvements shall be approved only as
provided under 19.2.8.17 NMAC “agricultural improvements” below.
B. Application
requirements for open acreage. In
addition to the requirements set forth in Subsection A above, agricultural
lease applications for open acreage shall be accompanied by:
(1) the
lease application filing fee as set forth in the schedule of fees;
(2) the
deposit of a sum equal to the first year's offered rental, which shall in no
case be less than the minimum rent in the schedule of fees, or if fewer than 12
months remain in the period between the date of lease application and the
following September 30th, the deposit of an amount equal to the first year's
offered rental reduced on a pro rata basis by month; and,
(3) the
deposit of a sum equal to the appraised value of the authorized improvements on
the land applied for or a bill of sale or waiver of payment signed by the
holder of the right to compensation for such improvements.
C. Simultaneous
applications for open acreage. Upon
receipt of simultaneous applications for open acreage, the lease shall be
awarded to the applicant offering the highest annual rental or, at the
commissioner's discretion, the applications may be rejected; and
(1) the
applicants permitted to submit confidential sealed lease bids on forms and
pursuant to procedures prescribed by the commissioner with the lease awarded to
the applicant who by the date and time specified by the commissioner submits
the highest sealed bid, if to anyone; or
(2) the
open acreage leased by advertised, competitive bid to the bidder offering the
highest annual rental, if to anyone.
D. Application
requirements for renewal. In
addition to the requirements set forth in Subsection A above, agricultural
lease applications for a new lease on lands held by the applicant under an
existing lease shall:
(1) be
accompanied by the lease application filing fee as set forth in the schedule of
fees;
(2) be
accompanied by the first year's offered rental, which shall in no case be less
than the minimum rent in the schedule of fees; and
(3) be
filed with the commissioner on or before August 1st of the year in which the
existing lease is to expire; the failure to submit the application on or before
August 1st shall result in the forfeiture of the lessee's right to obtain the
lease by matching the highest annual rental offered by other applicants to lease
the same land.
E. Application
requirements for competitive bids. In
addition to the requirements set forth in Subsection A above, agricultural
lease applications to lease lands leased to another under an existing lease
shall be made for the entire acreage under lease. Such applications shall be made on or before
September 1st in the year in which the existing lease is to expire, and shall
be accompanied by:
(1) the
lease application filing fee as set forth in the schedule of fees;
(2) the
deposit of a sum equal to the first year's offered rental which shall in no
case be less than the minimum rent in the schedule of fees; and
(3) the
deposit by money order, cashier's check or certified check of a sum equal to
the appraised value of the authorized improvements on the land applied for, or
a bill of sale or waiver of payment signed by the holder of the right to
compensation for such improvements.
F. Determination
of competitive bids. In the event
more than one application is filed to lease lands held by an existing
agricultural lease, the lease shall be awarded to the applicant offering the
highest annual rental, provided that such award is in the best interest of the
trust. If, however, the lease is not in
default and one of the applicants is the lessee under the existing lease who
correctly applied for the new lease prior to August 1st, the commissioner shall
notify the lessee in writing of the amount of the highest annual rental offered
by another applicant for the lease and the name and address of the applicant
offering the highest annual rental. If
the lessee matches such offer on or before September 30th, the new lease shall
be awarded to the lessee, if to anyone.
If the lessee does not apply to lease the land on or before August 1st,
and more than one lease application is made on the leased land on or before
September 1st, the commissioner, in the commissioner's discretion, may award
the lease to the applicant offering the highest annual rental, provided that
such award is in the best interest of the trust. Alternatively, the commissioner may implement
the procedures applicable in instances of simultaneous application set out in
Subsection C above.
G. Improvement
value disputes. The value of the
improvements, if in dispute, shall be determined by the commissioner's
appraisal. If there is a dispute over
the value of the improvements as determined by the commissioner, the disputing
party must file a contest to determine such value. The parties to such a contest shall be the
existing lessee and the competitive bidder.
H. Sealed
bids. A lessee or applicant
submitting a sealed bid in response to the commissioner's request for sealed
bids, shall not be permitted to change or supplement that bid after it has been
submitted.
I. Non-conforming applications. Any lease application which does not comply
with the requirements of this Section 19.2.8.9 NMAC shall be subject to
rejection.
(1) If
the rejected application is to renew a lease, and such application is not
corrected in time, the applicant shall fail to retain the right to match a
competitive bid set out in Section 19-7-49 NMSA 1978.
(2) In
the commissioner’s discretion, but only in cases where there is no competitive
bid, the commissioner may, pursuant to Section 19-7-4 NMSA 1978, grant
additional time to correct minor errors or omissions in an application.
[3/11/1981,
1/20/1984, 9/30/1985, 12/1/1992, 6/29/1996; 19.2.8.9 NMAC - Rn, 19 NMAC 3 SLO
8.9, 9/30/2002; A, 4/15/2010; A, 6/30/2016; A, 6/11/2019]
19.2.8.10 WITHDRAWAL:
A. The commissioner may withdraw from an agricultural
lease during its term up to one-half the leased acreage not to exceed six
hundred and forty (640) acres provided that:
(1) the
commissioner has received a bona fide offer to lease or purchase the lands
proposed for withdrawal for uses other than agricultural uses and the offered
rental or purchase price indicates the land has a current higher and better
value for uses other than agricultural uses;
(2) the
commissioner makes a written determination that such withdrawal is in the best
interests of the trust for which the land is held and that the land to be
withdrawn has a current higher and better value for uses other than
agricultural uses; and
(3) the
commissioner mails notice of the withdrawal to the lessee by certified mail at
least ninety (90) days prior to the date the withdrawal is to be effective and
includes with the notice:
(a) a
copy of the written determination described in Paragraph (2) of Subsection A of
19.2.8.10 NMAC;
(b) a
description of the land to be withdrawn sufficiently detailed to permit
identification and location of the land with reasonable accuracy;
(c) the
appraised value for uses other than agricultural uses, of the land to be
withdrawn; and
(d) a
notice to vacate that sets forth the date the withdrawal is to be effective.
B. The commissioner shall not withdraw a portion of the
leased lands pursuant to this rule if such withdrawal would adversely affect
the lessee's use of water on the remaining portion of the leased lands, unless
the lessee has a reasonable alternative to mitigate the adverse effect.
C. The commissioner shall refund to the lessee on a pro
rata basis rentals paid in advance on the withdrawn lands for the period of
time between the effective withdrawal date and the next following rental
payment due date.
D. Upon the sale or lease of the withdrawn land, the
owner or subsequent lessee shall fence the withdrawn land from adjoining land
that is under agricultural lease.
E. A lessee from whom leased lands are withdrawn, who is
entitled to compensation for improvements on lands withdrawn, shall receive
such compensation from the subsequent lessee or purchaser of the lands
withdrawn, as provided by statute and this rule.
[12/1/92,
6/29/96; 19.2.8.10 NMAC - Rn, 19 NMAC 3 SLO 8.10, 09/30/02]
19.2.8.11 RENTAL:
A. In the absence of a competitive bid, the annual
rental for grazing land leased under an agricultural lease shall be determined
by the following formula:
Annual
rental = $0.0474 (Base Value) x Carrying Capacity (CC) x Acreage x Economic
Variable Index (EVI).
(1) The
EVI in any year (t), October 1st through September 30th, is the ratio of the
value of a state land office adjustment factor for that year (SLOAFt) to the
value of that same adjustment factor calculated for the base year 1987
(SLOAF87), i.e., SLOAFt :
SLOAF87, or SLOAFt divided by SLOAF87 (1987 base = 135).
(2) To
determine the SLOAF for each year (t+1), the commissioner shall use the
following formula, in which the three indices (the western states forage value
index (FVI), beef cattle price index (BCPI), and the prices paid index (PPI))
correspond to the United States department of agriculture's annually published
indices for the immediately preceding year (t):
SLOAFt+1 = -14.92 + (1.57 x FVIt) + (0.26 x BCPIt) - (0.67 x PPIt).
B. The commissioner
shall determine the carrying capacity for grazing land in accordance with
Section 19-7-29 NMSA 1978, which may be redetermined. A lessee seeking a reevaluation and
redetermination of the carrying capacity shall submit such forms as may be
prescribed by the commissioner.
C. Notwithstanding the application of the formula to
determine lease rentals for grazing land, the annual rental shall not be less
than the minimum rent set forth in the schedule of fees nor shall it be
decreased or increased by more than thirty-three and one-third percent of the
preceding year's rental for the same land.
D. The rental for cultivated land or land leased under
an agricultural lease for other uses shall be determined by the commissioner.
E. In computing rental on leases issued after October
1st, the rental for a part of a month shall be the same as the rental for a
full month.
[3/11/1981,
4/28/1982, 1/20/1984, 9/30/1985, 12/1/1992, 6/29/1996; 19.2.8.11 NMAC - Rn, 19
NMAC 3 SLO 8.11, 9/30/2002; A, 6/11/2019]
19.2.8.12 SUBLEASING:
A. The sublease of an agricultural lease or any portion
thereof may be made only with the prior written consent of the commissioner.
(1) A sublease without the
written consent of the commissioner prior to such use or occupancy commencing shall be in violation of Sections 19-6-3 and 5 NMSA 1978.
(2) Sublease
applications not submitted to the commissioner for approval within thirty (30)
days of their actual execution shall be rejected.
B. Applications to sublease shall be made under oath, on
forms prescribed by the commissioner and shall be accompanied by the first
year's sublease payment.
C. The sublease payment shall be made by the lessee, in
advance, in addition to the annual lease rental, in an amount equal to twenty
percent (.20) of the current annual lease rental, but in no instance less than
the minimum rent in the schedule of fees for each year or any portion of a year
in the sublease term.
(1) Sublease
payments shall be computed on an annual basis from October 1st of each year to
the following September 30th, and shall be due on the date of sublease
application and thereafter, following sublease approval, on the date the annual
lease rental is due.
(2) Sublease
payment for a portion of a year shall not be prorated but shall be in the same
amount as the sublease payment for a full year.
D. No sublease term shall extend beyond the term of its
base lease and lease assignment shall result in the automatic termination of
any sublease.
[3/11/81,
1/20/84, 9/30/85, 4/8/87, 12/1/92, 6/29/96; 19.2.8.12 NMAC - Rn, 19 NMAC 3 SLO
8.12, 09/30/02; A, 04/15/10]
19.2.8.13 RELINQUISHMENT:
A. With the prior written consent of the commissioner, the
release of all outstanding collateral assignments, and the payment to the
commissioner of the relinquishment filing fee as set forth in the schedule of
fees, any lessee may relinquish to the state a lease that is not in default and
the lease shall be cancelled.
(1) The
relinquishment filing fee shall be waived if the relinquishment is at the
request of the commissioner.
(2) Relinquishments
shall be made on forms and in the manner prescribed by the commissioner.
B. A relinquishment without the written consent of the
commissioner shall be null and void.
[3/11/81,
1/20/84, 9/30/85, 12/1/92; 19.2.8.13 NMAC - Rn, 19 NMAC 3 SLO 8.13, 09/30/02;
A, 06/30/16]
19.2.8.14 ASSIGNMENTS:
A. With the written consent of the commissioner and the
payment to the commissioner of the assignment filing fee as set forth in the
schedule of fees, a lessee may assign the lease or the lease rights to any part
of the land held thereunder for the remainder of the lease term, provided the
lease is not in default and any outstanding collateral lease assignments have
either been released or the prospective lease assignee has agreed in writing to
assume or take the lease subject to the rights of the collateral assignees. Lease assignments shall be made under oath,
upon forms prescribed by the commissioner and shall be accompanied by the lease
assignment filing fee.
B. Upon the commissioner's approval in writing of the
lease assignment, the assignment form shall become the leasing instrument.
C. An assignment without the written consent of the
commissioner shall be null and void.
D. The assignment
of an agricultural lease does not assign the appurtenant water rights. The transfer of water rights to an assignee
requires the use of the transfer of ownership form provided by the office of
the state engineer.
[3/11/81,
1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.14 NMAC - Rn, 19 NMAC 3 SLO 8.14,
09/30/02; A, 04/15/10; A, 06/30/16]
19.2.8.15 COLLATERAL ASSIGNMENTS:
A. With the prior written consent of the commissioner
and the payment to the commissioner of the collateral assignment fee as set
forth in the schedule of fees, a lessee may assign as collateral security a
lease that is not in default; provided, however, that the collateral assignment
of more than one (1) lease to secure the same indebtedness shall be made by
separate assigning instruments. The collateral assignment of a lease shall not
prevent its cancellation by the commissioner.
B. Collateral assignments shall be made upon forms
prescribed by the commissioner and shall be accompanied by the collateral
assignment fee as set forth in the schedule of fees.
C. The foreclosure of collateral assignments shall be
accomplished in the manner provided by law for the foreclosure of chattel
mortgages. Upon the filing with the commissioner of documentation proving the
bona fide foreclosure and purchase of the lease and the cure of any lease
defaults, completed assignment forms, and the required fee, the lease shall be
assigned to the purchaser at the foreclosure sale, if such purchaser is otherwise
qualified to lease state trust lands.
D. The release of collateral assignments shall be
accomplished by the collateral assignee's executing and filing with the
commissioner a release upon a form prescribed by the commissioner and
accompanied by the release of collateral assignment fee as set forth in the
schedule of fees.
(1) The
failure of a collateral assignee to execute and file with the commissioner the
release of a collateral assignment upon the satisfaction of the debt secured by
the assignment shall subject the assignee to the risk of criminal penalties and
civil liabilities as provided by law.
(2) The
personal representative in the probate of a deceased collateral assignee's
estate may release collateral assignments by executing and filing with the
commissioner the release and certified copies of such other documents as the
commissioner may require.
[3/11/81,
1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.15 NMAC - Rn, 19 NMAC 3 SLO 8.15,
09/30/02; A, 06/30/16]
19.2.8.16 TRANSFER OF LEASE UPON LESSEE'S
DEATH:
A. Certified copies of letters testamentary and the
final order in probate or the final order determining heirship, together with
the miscellaneous instruments, filing fee and such other documents as the
commissioner may require shall be filed with the commissioner in order to
transfer a deceased lessee's interest in an agricultural lease. The
agricultural lease may be carried on the records of the state land office in
the name of the estate until probate or a judicial proceeding determining
heirship has been completed.
B. The personal representative of the estate, subject to
the normal approval processes of the commissioner, may assign the lease by:
(1) filing
with the commissioner certified copies of the death certificate and letters testamentary;
(2) executing
the necessary assignment forms;
(3) paying
to the commissioner the lease assignment filing fee as set forth in the
schedule of fees; and
(4) filing
with the commissioner such other documents as the commissioner may require.
C. Except for leases executed by two (2) or more lessees
designated as joint tenants with the right of survivorship, in the absence of
probate, the lease interest of a deceased lessee shall be transferred on the
records of the state land office during the term of the lease only by filing
with the commissioner a certified copy of the certificate of death, the
affidavits of the legal heirs as to their claims and the absence of conflicting
claims, and such other documentation as the commissioner may require together
with the miscellaneous instruments filing fee as set forth in the schedule of
fees.
D. If a lease is executed by two (2) or more lessees
designated as joint tenants with the right of survivorship, the interest of a
deceased lessee may be transferred to the surviving lessees on the records of
the state land office by filing with the commissioner the certificate of death
together with the miscellaneous instruments filing fee.
E. If the heirs of a deceased lessee include minor
children, a certified copy of the proceedings of the appointment of a guardian,
conservator or guardian ad litem, together with such other documents as the
commissioner may require and the miscellaneous instruments filing fee shall be
filed with the commissioner to transfer the deceased lessee's interest in the
lease.
F. The lease interest of a non-resident deceased lessee
may be transferred by complying with Sections 45-4-101 to -401 NMSA 1978 and
any successor provisions and by filing with the commissioner such documents as the
commissioner may require together with the miscellaneous instruments filing
fee.
[3/11/81,
1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.16 NMAC - Rn, 19 NMAC 3 SLO 8.16,
09/30/02; A, 06/30/16]
19.2.8.17 AGRICULTURAL IMPROVEMENTS:
A. Improvements shall not be placed, made or developed
on state trust land without the express written consent of the commissioner
unless the cost of the improvement and its placement is within the cost
limitations prescribed by Section 19-7-51 NMSA 1978. Improvements shall be placed,
made or developed on state trust land only by the lessee of the land on which
the improvements are to be located.
B. Applications to place, make or develop improvements
on state trust lands held by an agricultural lease shall be made by the lessee
upon forms and in the manner prescribed by the commissioner prior to initiation
of placement or construction. Each application to place improvements shall:
(1) set
forth the type and kind of improvements to be placed, made or developed and
their estimated cost;
(2) specify
the legal subdivisions on which the improvements are to be located; and
(3) be
accompanied by the filing fee specified in the schedule of fees.
C. Inclusion of unauthorized improvements on any
appraisal or listing of improvements submitted to the commissioner for any
purpose shall not serve as an application to make, place or develop
improvements on state trust lands or be construed as approval of those improvements
by the commissioner.
D. Upon completion of an authorized improvement, the
lessee shall, by sworn affidavit, notify the commissioner of the improvement's
actual cost of acquisition, construction or placement.
E. Removal:
(1) All
authorized improvements other than fences and growing crops shall be deemed
permanent improvements and shall be removed only upon those terms and
conditions to which the commissioner has agreed in writing prior to removal.
(2) All
unauthorized improvements placed, made or developed on state trust lands by one
acting in the capacity of the lessee of the land on which they are located
shall be removed unless the lessee applies for, and the commissioner grants,
approval of the improvements. The removal of such unauthorized improvements
shall be pursuant to terms and conditions established by the commissioner and
shall be solely at the expense of the lessee.
(3) Unauthorized
improvements placed, made or developed on state trust land by one not acting in
the capacity of the lessee of the lands on which the improvements are located
shall be subject to removal, sale or other disposition at the commissioner's
discretion.
F. Compensation: A purchaser or lessee of state trust
lands on which authorized improvements are located shall provide to the
commissioner:
(1) a
bill of sale or waiver of payment signed by the holder of the right to
improvement compensation; or
(2) payment
of the value of such improvements as determined by the commissioner's
appraisal. Payment of the value of authorized improvements received by the
commissioner shall be remitted to the holder of the right to improvement
compensation.
(3) Except
as provided below, the commissioner shall recognize the compensability at one
hundred (1.00) percent of value for authorized improvements.
(4) The
commissioner shall recognize the compensability of all or any of the
unauthorized improvements placed on state trust lands by one acting in the
capacity of the lessee at any percentage of value, including zero (0.00)
percent, but in no case more than seventy-five (.75) percent of value.
(5) The
compensability of unauthorized improvements placed, made or developed on state
trust lands by one not acting in the capacity of the lessee of the lands on
which the improvements are located may be recognized at any percentage of value
by the commissioner, including zero percent of value.
(6) In
any instance when a lessee’s improvements have been cost-shared with a
government entity or through a grant, the lessee’s compensation shall be equal
to the percent, if any, of the original cost paid by the lessee, which percent
shall be applied to the value described in Subsection F of 19.2.8.17 NMAC
above.
[3/11/81,
1/20/84, 9/30/85, 11/4/88, 8/8/89, 12/1/92, 6/29/96; 19.2.8.17 NMAC - Rn, 19
NMAC 3 SLO 8.17, 09/30/02; A, 04/15/10]
19.2.8.18 CANCELLATION:
A. The commissioner may cancel any agricultural lease:
(1) obtained
by fraud;
(2) executed
through mistake or without authority of law;
(3) that
is in default for violation of any of the lease terms, covenants or conditions,
which include these rules and applicable statutes, including nonpayment of
rentals; or
(4) that
is in default for the lessee's failure to protect the leased lands from
trespass or waste.
B. The commissioner may enter lease cancellation thirty
(30) days after providing the lessee and any collateral assignees with notice
of default by certified mail.
(1) Lease
cancellation shall not be made if, within such thirty (30) day period, the
lessee shall either comply with the commissioner's demands for cure, or appear
before the commissioner and show good cause, as determined by the commissioner,
why the lease should not be cancelled.
(2) The
commissioner may at any time enforce the lien against improvements to satisfy
delinquent rentals.
[3/11/81,
9/30/85, 12/1/92, 6/29/96; 19.2.8.18 NMAC - Rn, 19 NMAC 3 SLO 8.18, 09/30/02]
19.2.8.19 CONVERSION:
A. Land held under an agricultural lease may be
reclassified from grazing land to cultivated land or from cultivated land to
grazing land and the lease amended to permit such use after conversion upon
application to the commissioner and receipt of the commissioner's written
consent to convert the use of the land.
B. Applications to convert shall be made under oath on forms prescribed
by the commissioner and accompanied by:
(1) the
conversion application filing fee as set forth in the schedule of fees; and
(2) a
reclamation plan to be implemented in the event the commissioner determines the
conversion has been unsuccessful and the converted land should revert to its
prior use.
C. The commissioner's approval of the application to
convert and the issuance of an amended lease may be conditioned upon the
lessee's obtaining sufficient surety for the benefit of the state of New Mexico
to guarantee the land's restoration in the event of lease default,
cancellation, relinquishment or termination for any reason, or the reversion of
the land to its prior use.
D. Upon conversion, the lessee shall pay to the
commissioner an amount equal to the difference between the grazing land rental
and the cultivated land rental as determined by the commissioner for the period
between the date of conversion and the first following rental payment due date.
E. In the event converted land reverts to its prior use,
the lessee, at the lessee’s own expense, shall restore the land to a stabilized
condition through reclamation and revegetation implemented pursuant to the
reclamation plan submitted with the application to convert. No reduction in rentals due to the reversion
shall be effective until such plan has been implemented to the commissioner's
satisfaction.
[3/11/1981,
4/28/1982, 1/20/1984, 9/30/1985, 12/1/1992, 6/29/1996; 19.2.8.19 NMAC - Rn, 19
NMAC 3 SLO 8.19, 9/30/2002; A, 6/30/2016; A, 6/11/2019]
19.2.8.20 RANGE STEWARDSHIP INCENTIVE
PROGRAM:
A. Agricultural lessees who have leased state trust
lands for grazing purposes for at least five years may apply for a twenty-five percent
reduction in agricultural lease rentals by demonstrating through the range
stewardship incentive program that they have been good stewards of their leased
state trust land. Only state trust lands
leased for grazing purposes and not subject to a sublease shall be eligible for
participation in the range stewardship incentive program.
B. State trust lands included in the range stewardship
incentive program shall be evaluated and classified by the commissioner
according to the range condition and trend.
(1) The
commissioner's evaluation and classification shall be based on the
commissioner's verification of a sworn range condition and trend analysis and
classification recommendation by a disinterested party with training or
experience in rangeland evaluation. Said
party shall certify that said party personally inspected the lands evaluated,
that said party has no interest in or claim against the lands evaluated and
that any fee charged for such evaluation is not related to the classification
recommendation.
(2) Range
condition shall be rated as either excellent, good, fair, or poor depending on
the degree of difference between the range site's state of vegetation and the
highest natural development of the plant community that could sustain itself
under the prevailing climatic and soil conditions for the site.
(3) Range
trend shall be rated as either improving, static, or declining depending on the
direction of change in range condition over time.
C. Upon request, the commissioner shall provide to
interested parties information explaining the range stewardship incentive
program, instructions for applying to participate in the program, a description
of the procedures necessary to collect the range data required for the
commissioner's evaluation and classification of the leased lands, and a list of
names and addresses of those who have successfully completed a course in
rangeland evaluation offered regularly by New Mexico state university and the
state land office and who have made their names and addresses available to the
commissioner for distribution to the public.
(1) Applications
to participate in the range stewardship incentive program shall be made in the
form prescribed by the commissioner, shall contain such information as the
commissioner may require, and shall include a sworn range condition and trend
analysis and classification recommendation by a disinterested party with
experience or training in rangeland evaluation. The analysis and recommendation shall cover
all state trust lands leased to the applicant for grazing purposes. No application fee shall apply.
(2) Only
lessees of state grazing land under an existing lease may participate in the
range stewardship incentive program. Only state lessees who participate in the
program, who have leased state trust lands for grazing purposes for at least
the immediately preceding five years,
and whose leased lands include acreage classified by the commissioner as
excellent-improving, excellent-static, good-improving or good-static shall pay
the reduced rental.
D. All state trust land leased to the applicant for
grazing purposes shall be included in the range stewardship incentive program
upon completion of the commissioner's evaluation and classification of the
acreage.
(1) Acreage
that is classified by the commissioner as either excellent-improving,
excellent-static, good-improving or good-static shall qualify for the rental
reduction on a per acre basis.
(2) Acreage
that is classified by the commissioner as either fair or poor condition or
declining trend shall not qualify for the rental reduction but shall be
included in the range stewardship incentive program.
E. In order to continue to participate in the range
stewardship incentive program and to enjoy any applicable rental reduction, the
participating lessee shall provide to the commissioner, no earlier than
November 1st and no later than February 1st in the lease year immediately
preceding the final year in the lease term, a sworn range condition and trend
analysis and classification recommendation on the leased acreage by a
disinterested party with training or experience in rangeland evaluation. The commissioner's verification of such
analysis and recommendation shall provide the basis for the commissioner's
reevaluation and any reclassification of the leased acreage.
(1) The
lessee's failure to timely submit such range condition and trend analysis and
classification recommendation shall terminate the lessee's participation in the
program. Upon the lessee's reapplication
and the commissioner's reevaluation and reclassification of the leased grazing
lands, however, participation in the program shall again commence.
(2) Upon
the lessee's continued participation in the program and the commissioner's
reevaluation and reclassification of acreage from fair or poor condition or
declining trend to excellent-improving, excellent-static, good-improving or
good-static, the rental reduction shall apply to such reclassified acreage on a
per acre basis.
(3) Upon
the termination of the lessee's participation in the program any rental
reduction shall cease to apply. Upon the
commissioner's reevaluation and reclassification of excellent-improving,
excellent-static, good-improving or good-static acreage to fair or poor
condition or declining trend, the rental reduction shall cease to apply to such
reclassified acreage.
(4) Upon
the transfer or granting of a lease containing reduced rental acreage to one
who is not qualified to pay the reduced rental, participation in the range
stewardship incentive program may continue but any rental reduction shall cease
to apply.
(5) Program
participation shall continue and rental reduction shall continue or commence in
those instances in which a participating lessee who is qualified to pay the
reduced rental obtains a lease on lands included in the range stewardship
incentive program that are classified as excellent-improving, excellent-static,
good-improving or good-static, including those instances in which the lease is
obtained by the lessee's exercise of the preference right or by the lessee's
competitive bid.
[12/1/1992,
6/29/1996; 19.2.8.20 NMAC - Rn, 19 NMAC 3 SLO 8.20, 9/30/2002; A,
6/11/2019]
19.2.8.21 SURFACE
DAMAGES:
A. If lessee is involved in litigation
with any other persons or entities for damages connected with their leased
trust land, lessee must notify the commissioner as soon as practicable. This notice requirement does not apply to any
litigation involving only the lessee’s personal or real property.
B. The notice must be in writing, describe the litigation,
and give the case name and court docket number; and the notice must be mailed
by certified mail to the Commissioner of Public Lands, Office of General
Counsel, P.O. Box 1148, Santa Fe, New Mexico 87504.
C. The commissioner will decide within thirty (30) days
after receiving the notice whether to participate in the litigation. If the commissioner decides to participate,
lessee will not oppose the commissioner’s participation in the litigation; but
lessee can choose to oppose or support the commissioner’s claims in the
litigation. No response from the commissioner within thirty (30) days shall be
deemed a decision not to participate. The commissioner’s non-participation
shall not be a waiver of any claim regarding damages to the trust lands.
[3/11/81,
1/20/84, 9/30/85, 10/4/88, 12/1/92, 6/29/96; 19.2.8.21 NMAC - Rn, 19 NMAC 3 SLO
8.21, 09/30/02; 19.2.8.21 NMAC - N, 04/15/10]
19.2.8.22 [RESERVED]
[19.2.8.22
NMAC - Rn, 19.2.8.21 NMAC, 04/15/10; Repealed, 06/30/16]
HISTORY
OF 19.2.8 NMAC:
Pre-NMAC
History: The material in this part was derived from
that previously filed with State Records Center and Archives under:
Rule 8,
Pertaining to Grazing and Agricultural State Leases, 3-11-81.
SLO Rule
8, Relating to Grazing and Agriculture State Leases, 1-20-84.
SLO Rule
8, Relating to Agricultural Leases, 9-30-85.
SLO Rule
8, Relating to Agricultural Leases, 12-1-92.
History
of Repealed Material: [RESERVED]