Whenever any state lands are sold or leased to a person other than the holder of an existing surface lease and upon which lands there are improvements belonging to such lessee or to another person, the purchaser or subsequent lessee, as the case may be, shall pay to the commissioner of public lands for the benefit of the owner of the improvements the value thereof as determined by an appraisal made by the commissioner of public lands. In lieu of such payment, a subsequent purchaser or lessee may file with the commissioner a bill of sale or waiver of payment signed by the owner of the improvements.

History: 1953 Comp., § 7-8-19.1, enacted by Laws 1963, ch. 237, § 1.

Cross references. — For restrictions on improvements on grazing or agricultural leases and effect of exceeding same, see 19-7-51, 19-7-52 NMSA 1978.

For removal by certain holders of mineral leases of all removable improvements and forfeiture of rest without compensation, see 19-8-29 NMSA 1978.

For payment for value of improvements by purchaser or subsequent oil and gas lessee to owner thereof, see 19-10-28 NMSA 1978.

For oil and gas lessee's right to remove certain improvements upon cancellation or forfeiture of lease, see 19-10-29 NMSA 1978.

For removal by lessee under Geothermal Resources Act of removable improvements and forfeiture of others without compensation, see 19-13-24 NMSA 1978.

Ownership of improvements. — Under 8-832, 1941 Comp., with reference to existing water rights, lessee owned only such improvements as it placed upon the lands or purchased from one authorized by law to dispose of them. Frank A. Hubbell Co. v. Curtis, 1936-NMSC-033, 40 N.M. 234, 58 P.2d 1163.

Improvements by trespasser. — In absence of some contract or agreement with the state land commissioner, a railroad company was a trespasser, where it constructed, on public lands, water pipeline improvements in form of a diversion dam, for it should have secured the right-of-way for such dam, pipeline and other facilities for the project, although no provision was made for payment for use of such right of way. Application of Dasburg, 1941-NMSC-024, 45 N.M. 184, 113 P.2d 569.

Same not compensable. — A railroad was not entitled to compensation under C.S. 1929, § 132-162, for improvements where it constructed a diversion dam and water pipeline on public lands without any agreement with the state land commissioner. Application of Dasburg, 1941-NMSC-024, 45 N.M. 184, 113 P.2d 569.

Lease contains provisions not authorized by law. — Business Planning Lease No. BL-1775 between the commissioner of public lands and Solo Investments, LLC under which the commissioner leased state trust land to Solo to complete a land development project, contains provisions that are not authorized by New Mexico law, including provisions which entitle Solo to be paid by a subsequent purchaser of the land the amount of Solo's reasonable project costs plus 40% of the change in value of the land as determined by before and after appraisals of the total consideration received by the commissioner of public lands. 2008 Op. Att'y Gen. No. 08-02.

Law reviews. — For note, "Administration of Grazing Lands in New Mexico: A Breach of Trust," see 15 Nat. Resources J. 581 (1975).