RELATING TO WATER; PROVIDING AUTHORITY FOR STATE ENGINEER PRIORITY ADMINISTRATION AND EXPEDITED WATER MARKETING AND LEASING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: Section 1. A new section of Chapter 72 NMSA 1978 is enacted to read:

"PRIORITY ADMINISTRATION--EXPEDITED WATER MARKETING AND LEASING--STATE ENGINEER.--

A. The legislature recognizes that the adjudication process is slow, the need for water administration is urgent, compliance with interstate compacts is imperative and the state engineer has authority to administer water allocations in accordance with the water right priorities recorded with or declared or otherwise available to the state engineer.

B. The state engineer shall adopt rules for priority administration to ensure that authority is exercised:

(1) so as not to interfere with a future or pending adjudication;

(2) so as to create no impairment of water rights, other than what is required to enforce priorities; and

(3) so as to create no increased depletions.

C. The state engineer shall adopt rules based on the appropriate hydrologic models to promote expedited marketing and leasing of water in those areas affected by priority administration. The rules shall be consistent with the rights, remedies and criteria established by law for proceedings for water use leasing and for changes in point of diversion, place of use and purpose of use of water rights. The rules shall not apply to acequias or community ditches or to water rights served by an acequia or community ditch. D. Nothing in this section shall affect the

partial final decree and settlement agreement as may be

entered in the Carlsbad irrigation district project offer

phase of State of New Mexico ex rel. State Engineer v. Lewis,

et al., Nos. 20294 and 22600 (N.M. 5th Jud. Dist.)."