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AN ACT

RELATING TO PUBLIC LANDS; ADDRESSING REFUNDS FOR ERRONEOUS

PAYMENTS; PROVIDING FOR LIMITATION OF ACTIONS; MAKING AN

APPROPRIATION.

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

Section 1. Section 19-7-59 NMSA 1978 (being Laws 1931,

Chapter 99, Section 1, as amended) is amended to read:

"19-7-59. REPAYMENT OF MONEY ERRONEOUSLY PAID ON LEASE

OR PURCHASE CONTRACT AFTER DISTRIBUTION.--

A. The duties, responsibilities and activities of

the commissioner of public lands and lessees of state trust

land and minerals set out in this section shall be performed

in a timely manner.

B. Money erroneously paid on account of a lease or

sale of state lands, which money is not carried in a suspense

fund but has been distributed to the proper income or

permanent fund, shall be repaid in the manner prescribed in

this section.

C. If the money erroneously paid was for royalty

due under a lease, then, subject to a subsequent audit by the

commissioner of public lands or the commissioner's agent, the

lessee may either request a refund or may recoup the money by

deducting an equivalent amount from subsequent royalty

payments due for the same lease and any other lease with the

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same trust beneficiary; provided that if the amount

erroneously paid pursuant to this subsection is greater than

fifty thousand dollars ($50,000) for a lease, no deduction

from subsequent payments shall be made without the prior

approval of the commissioner of public lands; and, provided

further that, no initial claim for recoupment shall be made

after six years from the date on which the initial royalty

obligation became due.

D. If the amount of money erroneously paid is less

than ten thousand dollars ($10,000), then, after a claim for

a refund has been filed pursuant to Section 19-7-60 NMSA 1978

and approved by the commissioner of public lands, no court

action shall be necessary and a refund shall be made under

Section 19-7-62 or 19-7-63 NMSA 1978.

E. All other money erroneously paid shall be

refunded pursuant to the provisions of Sections 19-7-60

through 19-7-63 NMSA 1978."

Section 2. Section 19-7-60 NMSA 1978 (being Laws 1931,

Chapter 99, Section 2, as amended) is amended to read:

"19-7-60. CLAIM FOR REFUND--CONTENTS--TIME LIMIT--

NOTICE OF ERRONEOUS PAYMENT--LIMITATION OF ACTION.-- A person

claiming a refund under the provisions of Sections 19-7-59

through 19-7-63 NMSA 1978 shall file with the commissioner of

public lands a written claim for refund, stating the amount

claimed to have been erroneously paid and the reasons why

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such payment was erroneously made. All claims for refund of

money shall be filed within ninety days after notice. If an

erroneous payment of any money is discovered by the

commissioner of public lands, notice of the discovery shall

be given by the commissioner of public lands, as soon after

the discovery as possible, by registered mail to the last

recorded address of the person making the erroneous payment.

A claim for a refund that is not filed with the commissioner

of public lands within six years from the date the erroneous

payment was made shall be forever barred; provided that if

notice of an erroneous payment is given less than ninety days

before the end of the six-year limitation, the period of time

to file a claim shall be extended beyond the six-year

limitation for the number of days necessary to provide ninety

days to file the claim."

Section 3. Section 19-7-62 NMSA 1978 (being Laws 1931,

Chapter 99, Section 4, as amended) is amended to read:

"19-7-62. ANNUAL APPROPRIATION FOR REFUNDS--PAYMENT

FROM STATE LANDS MAINTENANCE FUND.--There is appropriated

annually out of the state lands maintenance fund created by

Section 19-1-11 NMSA 1978 the sum of five hundred thousand

dollars ($500,000) or such part thereof as may be necessary

for the purpose of making refunds of payments determined in

the manner provided by Sections 19-7-59 through 19-7-63 NMSA

1978 to have been erroneously collected; provided, however,

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that any refund of money paid into any fund other than the

state lands maintenance fund shall be made only out of that

part of the state lands maintenance fund distributable to the

fund into which such payment was erroneously made, under the

provisions of Section 19-1-13 NMSA 1978."

Section 4. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.