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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Office of the State Engineer/Interstate Stream Commission (OSE/ISC)

SUMMARY

Synopsis of SJC Amendment

The Senate Judiciary Committee amends the language to allow applicants who have been denied domestic well permits the chance to appeal the decision in district court.

Synopsis of SCONC Amendment

The Senate Conservation Committee amends the language to give qualified municipalities the power to approve or deny authorization requests for drilling new wells within thirty days.

Synopsis of Bill

SB 505 enacts a new section of the Municipal Code and amends Section 72-12-1 NMSA 1978 to permit municipalities to pass ordinances restricting drilling of new domestic wells within their exterior boundaries. An applicant for a permit for a domestic well within the municipality which has enacted such ordinance, must first receive authorization from the municipality before applying for a permit from the state engineer.

The state engineer may approve or deny, in whole or in part, an application for a domestic well permit based upon the municipal authorization. If a municipality denies authorization of the well, it must provide domestic water service to the property owner at the customary charges and rates schedules. In addition, the municipality is required to submit notice of denial of a domestic well permit application to the state engineer.

ADMINISTRATIVE IMPLICATIONS

According to the OSE, the bill will minimally increase the agency's administrative burden by making the domestic well application more complicated. It will slow the process down for both the state engineer and the domestic well applicants.

TECHNICAL ISSUES

The OSE recommended several technical changes to SB 505 which include the following:

Page 1, line 21, insert "new" between the word "of" and "wells"

Page 1, lines 23-24, change "fails to authorize" to "denies authorization"

Page 2, line 7, insert "written" between the words "obtain" and "authorization"

Page 2, line 21, insert "written" between the words "the" and "authorization"

Page 2, line 22, insert "," between the words "impose" and "as" and between the words

"necessary" and "conditions"

Page 3, after line 11, insert "(3) "exterior boundaries" means the corporate limits of the

municipality"

Page 6, line 6, insert "written" between the words "obtain" and "authorization"

Page 6, line 20, insert "," between the words "impose" and "as" and between the words

"necessary" and "conditions"

Page 7, after line 8, insert "(3) "exterior boundaries" means the corporate limits of the

municipality.

OTHER SUBSTANTIVE ISSUES

According to the OSE, municipalities do not have jurisdiction over the approval or denial of water permits. SB 505 would allow them to have limited authority in cooperation with the state engineer. Also, the agency states that the state engineer does not have the authority under Section72-12-1 to deny domestic well permits, this bill would give him that authority.

ALTERNATIVES

Municipalities may have zoning authority to prevent the construction of new domestic wells.

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