HB 374 — UNDERGROUND WATER END USER IDENTIFICATION

HOUSE AGRICULTURE AND WATER RESOURCES COMMITTEE SUBSTITUTE FOR HOUSE BILL 374 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED4 BY6 Gail8 Armstrong10 andAN CandieACT G.RELATING TO WATER;

SweetserPROVIDING 6ADDITIONAL 8REQUIREMENTS 10FOR ANAPPROPRIATION ACTOF RELATINGUNDERGROUND WATER TO WATER;SUPPLY WATER TO A MUNICIPALITY OR OTHER ENTITY WITH A FORTY-YEAR WATER USE 14 PLANNING PERIOD;

REQUIRINGESTABLISHING THEPRIOR IDENTIFICATIONDECISIONS OFAS ENDPRECEDENT. USERS IN APPLICATIONS FOR THE APPROPRIATION OF UNDERGROUND WATER;

ESTABLISHING16 PRIORBE DECISIONSIT ASENACTED LEGALBY PRECEDENTTHE IFLEGISLATURE NOTOF CLEARLYTHE 14STATE INCORRECTOF ORNEW DISTINGUISHED;MEXICO:

PROVIDINGe GROUNDSt TO17 REJECTSECTION AN1. APPLICATION.

eA tnew 17section BEof ITChapter ENACTED72, BYArticle THE12 LEGISLATURENMSA OFw THEl STATEn OFd NEW18 MEXICO:1978 is enacted to read:

w= = 19 "[NEW MATERIAL] APPLICATION--ADDITIONAL REQUIREMENTS-- a l ni a e r 20 APPROPRIATION TO SUPPLY WATER TO AN ENTITY WITH A FORTY-YEAR a t m m 21 WATER USE PLANNING PERIOD.-- d 18r SECTIONe 1.22 A.

In addition to the requirements of Subsection A c e s k 23 of Section 72-12-3 NMSA 19781978, (beinga Lawsperson 1931,desiring =to =appropriate 19e a n b 24 for beneficial use any waters described in Chapter 131,72, SectionArticle 3,u as[ amended)12 isNMSA amended1978 in order to read:supply water to an entity described in .213635.3 HAWC/HB 374 Section 72-1-9 NMSA 1978 shall include with its application:

(1) a lspecific iplan to divert, control and deliver a especific rquantity 20of "72-12-3.water for specific beneficial uses by the entity described in Section 72-1-9 NMSA 1978;

APPLICATIONand FOR(2) USEevidence OFof UNDERGROUNDa WATER--firm contractual commitment for the purchase and delivery of the water, in specific amounts for specific beneficial uses, or evidence that the applicant's proposed appropriation has been specifically included in a twater mdevelopment mplan 21prepared PUBLICATIONby OFan NOTICE--PERMIT.--entity ddescribed rin eSection 2272-1-9 A.NMSA 1978 that has been approved by the state engineer.

AnyB. person, firm or corporation or any other c e s k 23 entity desiring to appropriate for beneficial use any of the e a n b 24 waters described in Chapter 72, Article 12 NMSA 1978 shall u [ apply to the state engineer in a form prescribed by [him ] the .212208.1 state engineer .

The requirements of this section shall not apply to an entity described in Section 72-1-9 NMSA 1978 that applies for a permit to appropriate water for its own uses.

C.

An application shall not be accepted by the state engineer for filing unless it includes all the e e 17 information required by Subsection A of this section.

e e n d 18 D.

Prior to approval by the state engineer of an = = l ] 19 application to appropriate water under this section, the a l r i 20 applicant shall show in a hearing before the state engineer t e a t that:

m m 21 e d (1) the applicant's plan to divert, control r e 22 c e r c 23 and deliver a specific quantity of water for specific e a n b 24 beneficial uses by an entity described in Section 72-1-9 NMSA u [ 1978 is consistent with that entity's reasonably projected .213635.3 - 2 - HAWC/HB 374 water needs within forty years, based upon substantiated projections of population growth or other factors;

and (2) the applicant can and will complete the appropriation with diligence and place the water to beneficial use within a reasonable time.

E.

The state engineer shall deny an application to appropriate water under this section if the state engineer finds that the applicant has failed to meet the requirements of Subsection D of this section.

F.

Any amount of water approved for appropriation under this section for use by an entity described in Section 72-1-9 NMSA 1978 shall be included in and subject to the limits of that entity's allowable forty-year water use planning period.

G.

The provisions of this section shall apply to applications filed with the state engineer after the effective e e 17 date of this section." e e n d 18 SECTION 2.

Section 72-12-3 NMSA 1978 (being Laws 1931, = = l ] 19 Chapter 131, Section 3, as amended) is amended to read:

a l r i 20 "72-12-3.

APPLICATION FOR USE OF UNDERGROUND WATER-- t e a t PUBLICATION OF NOTICE--PERMIT.-- m m 21 e d A.

Any person, firm or corporation or any other r e 22 c e r c 23 entity desiring to appropriate for beneficial use any of the e a n b 24 waters described in Chapter 72, Article 12 NMSA 1978 shall u [ apply to the state engineer in a form prescribed by [him ] the .213635.3 - 3 - HAWC/HB 374 state engineer .

If the endwell userwill ofbe alllocated oron partprivately ofowned the water e e n d 18 appliedland forand the applicant is not the applicantowner itself,of the applicationland shallor the = = l ] 19 identifyowner allor actualthe endlessee users,of includingthe anmineral entityor subjectoil toand gas rights under a l r i 20 Sectionthe 72-1-9land, NMSAthe 1978,application orshall anotherbe entityaccompanied thatby providesan water t e a t serviceacknowledged tostatement identifiableexecuted customersby withinthe reasonablyowner limitedof andthe land that m m 21 e d rthe eapplicant 22is readilygranted ascertainableaccess serviceacross areas,the suchowner's asland existingto the r e 22 c e r c 23 subdivisions.drilling site and has permission to occupy such portion of the e a n b 24 owner's land as is necessary to drill and operate the well.

Theu application[ shallThis includesubsection documentarydoes enot aapply nto b 24 evidence showing that the endstate useror isany contractually obligated u [ to take and beneficially use all of theits water.213635.3 applied for .212208.1 - 24 - withinHAWC/HB a374 reasonablepolitical time.subdivisions.

If therethe willapplication beis multipleapproved, endthe users,applicant shall have the amountpermit eachand endstatement, userexecuted willby applythe toowner beneficialof usethe shallland, berecorded identified.in the office of the county clerk of the county in which the land is located.

TheC. requirements of this subsection shall not apply to an applicant that is subject to Section 72-1-9 NMSA 1978, to an entity that provides water service to identifiable 6 customers within reasonably limited and readily ascertainable service areas or to a developer who seeks water for a development.

[B.]In C.addition to the requirements of Subsection A of this section, a person desiring to appropriate for beneficial use any waters described in Chapter 72, Article 12 NMSA 1978 in order to supply water to an entity described in Section 72-1-9 NMSA 1978 shall additionally comply with the provisions of Section 1 of this 2019 act.

If[C.] theD. well will be located on privately owned land and the applicant is not the owner of the land or the owner or the lessee of the mineral or oil and gas rights under the land, the application shall be accompanied by an acknowledged statement executed by the owner of the land that the applicant is granted access across the owner's land to the drilling site and has permission to occupy such portion of the owner's land as is necessary to drill and operate the well.

eNo eapplication 17shall Thisbe subsectionaccepted doesby notthe applystate toengineer theunless stateit oris anyaccompanied ofby itsall ethe einformation nrequired dby 18Subsections politicalA subdivisions.and B of this section.

If[D.] theE. application is approved, the = = l ] 19 applicant shall have the permit and statement, executed by the a l r i 20 owner of the land, recorded in the office of the county clerk t e a t of the county in which the land is located.

Upon the filing of an application, the state engineer shall cause to be published in a newspaper that is published and distributed in the county where the well will e e 17 be located and in each county where the water will be or has e e n d 18 been put to beneficial use or where other water rights may be = = l ] 19 affected, or if there is no such newspaper, then in some a l r i 20 newspaper of general circulation in the county in which the t e a t well will be located, at least once a week for three m m 21 e d consecutive weeks, a notice that the application has been filed r e 22 [C.]c D.e r c 23 and that objections to the granting of the application may be e a n b 24 filed within ten days after the last publication of the notice.

Nou application[ shallAny beperson, acceptedfirm byor thecorporation cor eother rentity cobjecting 23that state.213635.3 engineer- unless5 it- isHAWC/HB accompanied374 by all the informationgranting eof athe napplication bwill 24impair requiredthe byobjector's Subsectionswater A,right [andshall ]have Bstanding andto Cfile ofobjections thisor section.protests.

uAny [person, [D.]firm E.or corporation or other entity objecting that the granting of the application will be contrary to the conservation of water within the state or detrimental to the public welfare of the state and showing that the objector will be substantially and specifically affected by the granting of the application shall have standing to file objections or protests;

Theprovided, priorhowever, decisionsthat of the state engineer[of .212208.1New -Mexico 3] -or shallany constituteof legalits precedent,branches, whichagencies, shalldepartments, beboards, bindinginstrumentalities onor theinstitutions stateand engineerall inpolitical subsequentsubdivisions casesof unless the priorstate decisionand wastheir demonstrablyagencies, incorrectinstrumentalities orand clearlyinstitutions distinguishedshall onhave thestanding basisto offile lawobjections or fact.protests.