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 (1)
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
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; provided, however, that 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, in addition to the 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 twelve (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 (1) 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 (1) 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 is non-conforming to the requirements of this Subsection shall be subject
to rejection.
(1) Applications that do not include an
appraisal of the land and of the improvements, or a listing of improvements as
described in Paragraph
(2) of Subsection B of 19.2.8.9 NMAC above, and the
required application filing fee and rental and improvement deposits set forth
below shall be rejected.
(2) 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.
(3) In
his 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.
[3/11/81, 1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.9 NMAC - Rn,
19 NMAC 3 SLO 8.9, 09/30/02; A, 04/15/10; A, 06/30/16]
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. 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 a third
percent (.333) of the preceding year's rental for the same land.
C. The rental for cultivated land
or land leased under an agricultural lease for other uses shall be determined
by the commissioner.
D. 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.
[3/11/81, 4/28/82, 1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.11
NMAC - Rn, 19 NMAC 3 SLO 8.11, 09/30/02]
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 his or her 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.
[3/11/81, 4/28/82, 1/20/84, 9/30/85, 12/1/92, 6/29/96; 19.2.8.19
NMAC - Rn, 19 NMAC 3 SLO 8.19, 09/30/02; A, 06/30/16]
19.2.8.20 RANGE
STEWARDSHIP INCENTIVE PROGRAM:
A. Agricultural lessees who have
leased state trust lands for grazing purposes for at least five (5) years may
apply for a twenty-five (.25) 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 he or she personally inspected the lands evaluated,
that he or she 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 (5) 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.
[12/1/92, 6/29/96; 19.2.8.20 NMAC - Rn, 19 NMAC 3 SLO 8.20,
09/30/02]
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]