The New Mexico State Land Office (SLO) announced today it apparently signed off on its new lease bonding rule over two weeks ago, without informing industry. The SLO also announced it has filed a Request for Declaratory Judgment against both IPANM and NMOGA in Santa Fe County District Court. Industry learned of the filing via the media, and the SLO’s press release was later posted after it informed media.

Right now, both IPANM’s Legal Team at Hinkle Shanor LLP and & NMOGA’s Legal at Team Holland & Hart are reviewing the filing, but neither association have been legally served by SLO, as the SLO’s press release indicate.

Both IPANM and NMOGA took strong positions against the SLO Lease Rule during its public rulemaking hearing in May.  After the hearing, the SLO offered to consider more reasonable bonding levels IF industry waived its right to file a legal challenge against the rule.  Industry remains staunchly united in opposition based on our arguments that the Commissioner is going way beyond her statutory authority with the rule. Industry will now look into SLO’s lack of due process and lack of transparency in announcing the signing of the lease rule, which the press lease indicates took place on Sept 10, 2026.

The SLO’s lease bonding rule is highly problematic, lacks statutory authority, and creates double bonding against industry when combined with OCD’s WELC Well Bonding Rule, which took effect last week.

IPANM will have a full summary and update during our monthly Regs & Legal Affairs Committee meeting for October which will be held on Thursday at 11 a.m. We also will be participating in meetings with NMOGA this week to discuss strategy moving forward.

For more information:  Land Office Releases Bonding Rule & Sues Industry