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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

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

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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.