This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
New Mexico Taking or Marketing Royalty Oil and Gas in Kind refers to the process through which the state of New Mexico collects the royalties owed to it from oil and gas production within its jurisdiction. Instead of receiving monetary compensation, the state has the option to take its royalties "in-kind," which means it can directly receive a share of the produced oil and gas. Taking or marketing royalty oil and gas in kind offers several advantages to the state. Firstly, it allows New Mexico to have direct control over the marketing and sale of the oil and gas, ensuring the best possible returns. Secondly, it enables the state to diversify its revenue streams by becoming directly involved in the energy sector. This approach enhances New Mexico's economic stability, as the state receives a share of the revenues even when oil and gas prices fluctuate. There are different types of New Mexico Taking or Marketing Royalty Oil and Gas in Kind programs. One such program is the "Royalty-in-Kind (RISK) Program" operated by the New Mexico State Land Office (NM SLO). This program allows the state to acquire its royalty share of oil and gas production, which is then sold on the open market through competitive bidding. The NM SLO carefully manages the marketing and sale process to maximize revenues and ensure fair competition among potential buyers. Another type of program is the "Direct Purchaser" initiative facilitated by the State Land Office, which invites qualified buyers to purchase oil and gas directly from the state. This program streamlines the sales process by eliminating the need for competitive bidding and allowing interested parties to negotiate directly with the state. The revenue generated through New Mexico's Taking or Marketing Royalty Oil and Gas in Kind programs contributes significantly to the state's budget. These funds are crucial for financing public services, education, healthcare, and infrastructure development across the state. Keywords: New Mexico, Taking or Marketing Royalty, Oil and Gas in Kind, Royalty-in-Kind Program, State Land Office, Direct Purchaser, revenue, public services, education, healthcare, infrastructure development.
