1. the New Mexico State Land Office

3. Commissioner Stephanie Garcia Richard

4. State Land Office Overview
Responsible for administering 9 million acres of surface and 13 million acres of subsurface estate for the beneficiaries of the state land trust, which includes schools, universities, hospitals and other important public institutions.
SLO seeks to optimize revenues while protecting the health of the land for future generations.
By leasing state trust land for a wide array of uses, the State Land Office generates hundreds of millions of dollars each year to support these beneficiaries.

5. Land Office 101 Revenue Flow Beneficiaries
Record FY 2019 Revenue / Revenue over time

6. Revenue Flow Renewable revenue - rentals, fees and interest
About 90% of total revenue 1%
Renewable revenue - rentals, fees and interest
Non-renewable revenue –royalties

7. Beneficiaries – Percent of Distribution
1. Common Schools
2. UNM
3. Saline Lands
4. NMSU
5. WNMU
6. NMHU
7. Northern NM School
8. ENMU
9. NM Inst. Of Min. & Tech.
10. NMMI
11. NM Boys School
12. Miners Hospital
13. State Hospital
14. State Penitentiary
15. School for the Deaf
16. Sch. for Visually Hd.
17. C P & R
18. Water Reservoirs
19. Rio Grande Improve.
20. Public Buildings
21. Carrie Tingley Hospital
22. State Park Commission

8. Carrie Tingley Hospital
Beneficiaries
Carrie Tingley Hospital
Public (Common) Schools
New Mexico Boys' School
New Mexico School for the Blind and Visually Impaired
Las Vegas Behavioral Health Institute
Capital Buildings
Charitable Penal and Reform
Penitentiary of New Mexico
Rio Grande Improvements
Saline Lands, University of New Mexico

9. Record fy 19 revenue – comparison over time

10. State Land Office Fiscal Year 2019 Estimated Revenue $1.1 Billion

11. State Trust Oil & Gas Production
2009 – 2018

12. Land Office priorities
Protecting our precious (and limited) water
Protecting our wildlife
Protecting our land for future generations
Assuring that those who lease our land are operating
as responsibly as possible
Doing all of this while raising as much money as possible for the vital public institutions that we support

14. Royalty Management Division Overview
The Royalty Management Division performs four separate business functions:
Revenue Processing
Compliance and Special Projects
Audit
Reporting Identification #’s (PUN)

15. Royalty Management Division Overview
Management Team
Jordan Kessler, Assistant Commissioner
(505)
Danny Martinez, Division Director
(505)
Kim Gabaldon, Division Deputy Director
(505)
Paul Rivera, Revenue Processing Manager
(505)
Angela Romero, Audit and Special Projects Manager
(505)
Vacant Audit and Compliance Manager
(505) 827-
@slo.state.nm.us

16. Proposed Changes - Production Unit Number (PUN)
(Business rules current system)
Seven digit system generated number based on each well completions:
1) OGRID
2) Prop name & ID
3) Pool Id
4) Unit Agreement Number
5) Comm Agreement Number
Information sources
1) Oil Conservation Division well permitting; C101, C102, C104
2) New Mexico State Land Office Unitization and Communitization Agreements
(Business rules new system)
Regular Leases
1) 10 digit API # plus Pool ID
Communtization Agreements
Communitization Agreement #
Unitization Agreements
Unitization Agreement #
Unit/Comms
Unit/Comm Agreement #
Information sources
1) Oil Conservation Division well permitting; C101, C102
2) New Mexico State Land Office Unitization and Communitization Agreements

17. Production Unit Number’s Associated Leases
(Business rules current system)
Regular Lease PUNs
Well completion dedicated acreage
Communitization PUNs
(Project areas – horizontal wells)
Unitization PUNs (Federal Exploratory,
State Exploratory, Waterflood PUNs
Unit boundaries
(Business rules new system)
10 digit API # + Pool ID
Well completion dedicated acreage
Communitization Agreements
(Project areas – horizontal wells)
Federal Exploratory Type 2 Unit Agr
Participating Area Acreages
Waterfloods/State Expl Type 1 Unit Agr
Unit boundaries
Federal Exploratory Type 1 Unit Agr
Project areas