Master FIR (1988)

NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

F I S C A L I M P A C T R E P O R T

SPONSOR:	Smith		DATE TYPED:	1/27/99		HB
SHORT TITLE:		Abandoned Water Wells				SB	8
					ANALYST:		Pickering

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

New Mexico Department of the Environment

Office of the State Engineer

SUMMARY

Synopsis of Bill

SB8 authorizes the State Engineer to require the sealing of abandoned wells by the property owners on which the wells are located in order to prevent water contamination and eliminate potential danger to people or animals.

Significant Issues

SB8 allows the State Engineer to require that wells be rehabilitated in a manner deemed safe by the state within a specified time period. The bill requires the State Engineer to verify that wells are abandoned and should be sealed, provide written notice to land owners that they are required to seal abandoned wells on their property, and to develop rules and procedures to implement the statute. The proposed bill gives no enforcement power to administer the program, nor does it clearly define the meaning of the word "sealing."

FISCAL IMPLICATIONS

The proposed bill does not designate funding or staff to administer the program which, under certain interpretations of the word "sealing" could be significant.

ADMINISTRATIVE IMPLICATIONS

The administrative impact could be minimal or significant to the State Engineer depending on the definition of "sealing." If SB8 causes a significant workload, the office will not be able to adequately address historical backlogs in its water rights applications, completing adjudications and meeting its interstate compact obligations.

TECHNICAL ISSUES

SB8 does not specifically define the terms "sealing" and "abandoned." This in turn may conflict with definitions of these two terms used by Courts in adjudications. Also, the bill contains no method of enforcement, which makes the administration of the program almost impossible.

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