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AN ACT

RELATING TO WATER; GRANTING AUTHORITY TO THE INTERSTATE

STREAM COMMISSION TO DEVELOP, CONSTRUCT, OPERATE AND MAINTAIN

INFRASTRUCTURE RELATED TO THE STRATEGIC WATER RESERVE;

RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN

LAWS 2003.

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

Section 1. Section 72-14-3.3 NMSA 1978 (being Laws

2005, Chapter 175, Section 1 and Laws 2005, Chapter 182,

Section 1) is amended to read:

"72-14-3.3. INTERSTATE STREAM COMMISSION--ADDITIONAL

POWERS--STRATEGIC WATER RESERVE.--

A. The interstate stream commission shall

establish a strategic water reserve and may purchase or lease

from willing sellers or lessors or receive through donation

surface water or water rights or storage rights to compose

the reserve. The commission may also purchase or lease from

willing sellers or lessors or receive by donation underground

water or water rights for the strategic water reserve for

cessation of pumping or limited short-term stream

augmentation. At no time shall the use of water or water

rights held by the strategic water reserve result in an

increase in net depletions in any basin. The commission

shall pay no more than the appraised market value to purchase

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or lease water or water rights and storage rights for the

strategic water reserve. The commission may accept money or

grants from federal or other governmental entities or other

persons to purchase or lease water or water rights for the

strategic water reserve, to pay administrative costs and to

develop, construct, operate and maintain infrastructure for

the delivery of water to the location of need. The

commission shall not acquire water or water rights that are

served by or owned by an acequia or community ditch

established pursuant to Chapter 73, Articles 2 and 3 NMSA

1978 for inclusion in the strategic water reserve. The

commission shall not acquire water or water rights that are

served by an irrigation district established pursuant to

Chapter 73, Article 10 NMSA 1978, except through contractual

arrangement with the district board of directors or as a

special water users association established pursuant to

Chapter 73, Article 10 NMSA 1978, but nothing in this section

shall be construed to authorize the interstate stream

commission to acquire water rights contrary to

Section 72-1-2.4 NMSA 1978. The commission shall acquire

only water rights that have sufficient seniority and

consistent, historic beneficial use to effectively contribute

to the purpose of the strategic water reserve. The

commission shall not acquire water or water rights for the

strategic water reserve by condemnation and may only condemn

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real property when that property is needed for infrastructure

related to the conveyance of water. Water in the strategic

water reserve shall not be subject to forfeiture pursuant to

Chapter 72 NMSA 1978. Water or water rights shall only be

acquired with the explicit approval of the commission.

B. Water and water rights in the strategic water

reserve shall be used to:

(1) assist the state in complying with

interstate stream compacts and court decrees; or

(2) assist the state and water users in

water management efforts for the benefit of threatened or

endangered species or in a program intended to avoid

additional listings of species. Management of water pursuant

to this subsection shall be done in conjunction with

collaborative programs or processes where they exist. Use of

the strategic water reserve pursuant to this paragraph shall

be limited to aquatic or obligate riparian species.

C. The interstate stream commission shall develop

river reach or ground water basin priorities for the

acquisition of water or water rights and storage rights for

the strategic water reserve in consultation with the New

Mexico interstate stream compact commissioners, the office of

the state engineer and the attorney general's office. For

each river reach or ground water basin, additional

prioritization shall be developed in coordination with the

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governing bodies of the following organizations within the

affected river reach or ground water basin:

(1) Indian nations, tribes and pueblos;

(2) boards of county commissioners;

(3) municipalities;

(4) special districts established pursuant

to Chapter 73 NMSA 1978;

(5) soil and water conservation districts;

(6) water authorities; and

(7) water planning regions.

D. Nothing in this section shall modify or repeal

any authority currently vested in any organization described

in Subsection C of this section.

E. The interstate stream commission may sell or

lease water or water rights from the strategic water reserve

at no less than the appraised market value. The commission

may sell water rights only if the rights are no longer

necessary for the purposes for which they were acquired for

the reserve; provided that water rights in the reserve shall

not be sold to the United States. Pursuant to a sale of

water rights from the strategic water reserve by the

interstate stream commission, the commission shall first make

the offer of sale for the original purpose of use. Proceeds

of any sale are appropriated to the office of the state

engineer to adjudicate water rights. Proceeds of any leases

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are appropriated to the interstate stream commission for

carrying out the purposes of the strategic water reserve.

F. Water or water rights acquired for the

strategic water reserve or water or water rights sold or

leased from the reserve shall remain in their river reach or

ground water basin of origin.

G. Transactions with members of an irrigation or

conservancy district established pursuant to Chapter 73 NMSA

1978 shall provide for the strategic water reserve to pay the

annual assessment to the district that would accrue to the

district absent the transaction.

H. Cumulative impacts of the strategic water

reserve acquisitions and uses shall not adversely affect

existing water users or delivery systems.

I. The interstate stream commission shall adopt

rules consistent with the terms of this section, including

rules to ensure:

(1) that water and water rights acquired for

the strategic water reserve are used only for the purposes of

the reserve;

(2) adequate public notice in each affected

area for the acquisition or disposal of water rights; and

(3) that the office of the state engineer

transfer procedures shall be followed.

J. The interstate stream commission shall annually

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report to the appropriate committee of the legislature on the

status of the strategic water reserve."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.