HOUSE BILL 925

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Paul C. Bandy

AN ACT

RELATING TO TITLE INSURANCE; PROVIDING THAT CERTAIN TITLE INSURANCE POLICIES CONTAIN INFORMATION AS TO THE EXISTENCE OF MINERAL LEASES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 59A-30-1 NMSA 1978 (being Laws 1985, Chapter 28, Section 1) is amended to read:

     "59A-30-1. SHORT TITLE.--[This article] Chapter 59A, Article 30 NMSA 1978 may be cited as the "New Mexico Title Insurance Law"."

     Section 2. A new section of the New Mexico Title Insurance Law is enacted to read:

     "[NEW MATERIAL] NOTICE OF MINERAL LEASES.--No title insurance policy shall be issued unless the policy includes:

          A. a copy of each recorded lease, recorded option to lease or recorded memorandum of the material terms of any lease or option to lease, for oil, gas or other minerals underlying any portion of the property that is the subject of the policy; and

          B. a separate page containing a statement that the leases, options or memoranda included in the policy pursuant to Subsection A of this section constitute all of the recorded leases, options to lease or memoranda of leases for oil, gas or other minerals underlying any portion of the property that is the subject of the policy; or, if no such leases, options to lease or memoranda have been recorded, a statement to that effect. The page shall also contain a conspicuous statement that the policy does not insure title to the mineral estate and that the mineral estate may be vested, in whole or in part, in third parties."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

- 2 -