§ 70-12-7 — Damages

In an action brought pursuant to the Surface Owners Protection Act, if the court finds that compensation is owed under Section 3[4] [70-12-4 NMSA 1978] of the Surface Owners Protection Act the court may also award the prevailing party: A. attorney fees and costs if: (1) the operator conducted oil and gas operations without providing notice as required by Subsection B of Section 4[5] [70-12-5 NMSA 1978] of the Surface Owners Protection Act; (2) the operator conducted oil and gas operations without a surface use and compensation agreement and before depositing a bond or other surety as required by Section 5[6] [70-12-6 NMSA 1978] of the Surface Owners Protection Act; (3) the operator conducted oil and gas operations outside the scope of a surface use and compensation agreement and, when entering into the agreement, knew or should have known that oil and gas operations would be conducted outside the scope of the agreement; or (4) the surface owner failed to exercise good faith in complying with the provisions of the Surface Owners Protection Act or the terms of a surface use and compensation agreement; or B. attorney fees, costs and treble damages if the court finds, by clear and convincing evidence, that: (1) the operator willfully and knowingly entered upon the premises for the purpose of commencing the drilling of a well: (a) without giving notice of the entry as required by Subsection B of Section 4[5] of the Surface Owners Protection Act; or (b) without a surface use and compensation agreement with the surface owner and before depositing a bond or other surety pursuant to Section 5[6] of the Surface Owners Protection Act; or (2) either the surface owner or the operator willfully and knowingly violated the surface use and compensation agreement.

Legislative History

Laws 2007, ch. 5, § 7.