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AN ACT

RELATING TO WATER; AMENDING AND ENACTING SECTIONS OF CHAPTER

72 NMSA 1978 TO PROVIDE FOR AN ALTERNATIVE METHOD OF ACQUIRING

WATER RIGHTS TO SATISFY THE PECOS RIVER SETTLEMENT; DECLARING

AN EMERGENCY.

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

Section 1. A new section of Chapter 72, Article 1 NMSA

1978 is enacted to read:

"PECOS RIVER--PURCHASE OF ADDITIONAL WATER RIGHTS.--

A. In addition to the land with appurtenant water

rights or rights to the delivery of water acquired pursuant to

the provisions of Section 72-1-2.4 NMSA 1978, the interstate

stream commission may expend funds for the purchase of water

rights or rights to the delivery of water without acquiring

the surface of the land to which the water rights or rights to

the delivery of water are appurtenant. No such expenditure

shall be made unless the commission has entered into contracts

with the governing bodies of the Carlsbad irrigation district,

the Pecos valley artesian conservancy district and the Fort

Sumner irrigation district that specify the actions the

parties agree will be taken or avoided to ensure that the

expenditures will be effective toward permanent compliance

with New Mexico's obligations under the Pecos River Compact

pursuant to Section 72-15-19 NMSA 1978 and amended decree.

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B. Expenditures for the purchase of water rights

or rights to the delivery of water pursuant to this section

shall be made only from willing sellers for projects that

comply with the following criteria:

(1) the water rights or rights to the

delivery of water are located within the Carlsbad irrigation

district, the Roswell Artesian Basin, the Pecos valley

artesian conservancy district or between the Acme gauge to and

including the Fort Sumner irrigation district;

(2) the transactions through which the

commission purchases the water rights or rights to the

delivery of water are conducted in compliance with procedures

set forth in Subsections F and G of Section 72-1-2.4 NMSA

1978, except that the resulting contracts shall not require

the commission to purchase the land to which the water rights

or rights to the delivery of water are appurtenant; and

(3) the purchase of water rights or rights

to the delivery of water authorized by this section and the

subsequent use of the land to which the rights are appurtenant

comply with the provisions of Section 5D(1) and (2) of the

settlement agreement dated March 25, 2003 entered in State v.

Lewis; provided that the commission shall not be responsible

for the establishment of cover vegetation or the ongoing

maintenance of the land.

C. Water rights or rights to the delivery of water

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purchased by the commission pursuant to this section shall be

included in the calculation of the ratio mandated by Section

72-1-2.4 NMSA 1978.

D. If the interstate stream commission determines

that ownership of all or any part of the surface of land

acquired by the commission pursuant to Section 72-1-2.4 NMSA

1978 is not necessary or desirable for permanent compliance

with New Mexico's obligations under the Pecos River Compact

pursuant to Section 72-15-19 NMSA 1978 and amended decree, the

commission may offer the land for sale. The land may be

offered for sale in the order in which it was acquired by

sending a written offer to sell, by certified mail, to the

party from whom the commission purchased the land at the

party's last known address. The offer shall remain open for

at least sixty days from the date of mailing. The offer shall

include a notice that, if the offer is not accepted by the

prior owner within the time stated pursuant to this section,

the offer will be deemed rejected and automatically withdrawn

and the land may be made available for purchase at the current

market price by third parties. The revenue from the sale

shall be deposited into the Pecos river basin land management

fund.

E. If the interstate stream commission determines

that the total water rights and the rights to the delivery of

water purchased pursuant to Chapter 72, Article 1 NMSA 1978

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are in excess of those rights permanently needed for New

Mexico's obligations under the Pecos River Compact, the

commission shall offer the excess water rights for sale in the

manner set forth in Section 72-1-2.4 NMSA 1978."

Section 2. Section 72-1-2.5 NMSA 1978 (being Laws 2006,

Chapter 77, Section 1) is amended to read:

"72-1-2.5. PECOS RIVER BASIN LAND MANAGEMENT FUND.--The

"Pecos river basin land management fund" is created in the

state treasury. The fund shall consist of appropriations,

grants, donations or bequests to the fund, income from land

and water rights purchased pursuant to Chapter 72, Article 1

NMSA 1978, revenue from land sold pursuant to Chapter 72,

Article 1 NMSA 1978 and income from investment of the fund or

money otherwise accruing to the fund. Money in the fund shall

be invested pursuant to Chapter 6, Article 10 NMSA 1978. The

interstate stream commission shall adopt rules for managing

the land, for depositing revenues from the land and to

administer the fund, and money in the fund is appropriated to

the commission to manage the land purchases pursuant to

Section 72-1-2.4 NMSA 1978 and to manage augmentation well

fields in the lower Pecos river basin. Money in the fund

shall not revert to any other fund at the end of a fiscal

year. Money in the fund shall be disbursed on warrants signed

by the secretary of finance and administration pursuant to

vouchers signed by the director of the interstate stream

commission or the director's authorized representative."

Section 3. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately.

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