§ 70-10-2 — Definitions

As used in the Oil and Gas Proceeds Payment Act: A. "oil and gas" means crude oil, natural gas, casinghead gas, condensate or any other related hydrocarbons; B. "oil and gas proceeds" means all payments derived from oil and gas production from any well located in New Mexico, whether royalty interest, overriding royalty interest, production payment interest or working interest, expressed as a right to a specified interest in the cash proceeds received from the sale of oil and gas produced thereunder or the cash value thereof, subject to all taxes withheld therefrom pursuant to law, but excluding "net profits interests", and other types of interest the extent of which cannot be determined with reference to a specified share of such proceeds; and C. "payor" means the party who undertakes to distribute oil and gas proceeds to the parties entitled thereto, including, but not limited to, the first purchaser of such production or as operator of the well from which such production was obtained or as lessee under the lease on which royalty is due.

Legislative History

Laws 1985, ch. 55, § 2; 1991, ch. 235, § 1.