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.168654.1

HOUSE MEMORIAL 48

48

TH LEGISLATURE

- STATE OF NEW MEXICO -

FIRST SESSION

, 2007

INTRODUCED BY

Paul C. Bandy

A MEMORIAL

REQUESTING THE SUPERINTENDENT OF INSURANCE AND THE NEW MEXICO

REAL ESTATE COMMISSION TO ADOPT MEASURES TO INFORM THE PUBLIC

OF THE EFFECT OF MINERAL LEASES.

WHEREAS, the excavation of oil, gas and other minerals has

caused conflict between the mineral extraction industry and the

surface owners of land under which the oil, gas or other

minerals lie; and

WHEREAS, many purchasers of real estate do not know

whether they are acquiring an interest in the underlying

mineral estate or whether the mineral estate is subject to a

mineral lease; and

WHEREAS, title binders and title policies generally

exclude the mineral estate and coverage relative to the mineral

estate; and

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.168654.1

WHEREAS, the conflicts between surface owners and the

mineral extraction industry will be reduced if surface owners

are informed of the possible existence of mineral leases and

the effect of any such leases at the time of purchase;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the

superintendent of insurance and the New Mexico real estate

commission be requested to study the conflicts arising from the

existence of both surface and mineral rights as well as the

disclosure practice of title companies; and

BE IT FURTHER RESOLVED that the superintendent of

insurance and the New Mexico real estate commission be

requested to adopt measures that will inform purchasers of real

estate of the existence of mineral leases and the effect of any

such lease; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the superintendent of insurance and the New

Mexico real estate commission.

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