N.M. Stat. § 19-7-56
[Preference right of municipality, county or school district;
payment for prior improvements.]
Any such municipality, county or school district, shall at all times have a preference
right to lease said state lands, and the commissioner of public lands shall prefer the
application of said municipality, county or school district over any other application for
lease upon the same land. Provided, nevertheless, that before any such lease is
granted the lessee shall be required to pay the reasonable value of any improvements
placed upon said state lands by a former lessee for the use of the owner of said
improvements.