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SB 188: STATUS OF WATER RIGHTS UNDER LEASE

An Act Relating To Water; Amending A Section Of Chapter 72 Nmsa 1978 To Provide For The Status Of Water Rights Under Lease.

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MOD SB 188
STATUS OF WATER RIGHTS UNDER LEASE

Legislative URL:
SB 188 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
- OTHER -
Action:
[2] SCONC/SJC-SCONC API.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
Fiscal Impact Report
Summary

Current law allows the owner of a water right to lease the water due the owner under that right without affecting the water right. The bill adds a statement that the lessee’s use of any part of the leased water constitutes “beneficial use” for purposes of the Water-Use Leasing Act.

 

The bill also amends the law to address the situation of:

  • leasing a ground water right that is in a fully appropriated system,
  • that has been finally adjudicated,
  • for which the State Engineer has issued a permit authorizing  a “change in the place or purpose of use,”
  • but that is located where it has become infeasible to place the water to the permitted beneficial use
  • because of a change in circumstances beyond the permittee’s control.

 

In that situation, the permittee (owner of the water right) may lease all or any part of the water use authorized by the permit for 10 years (with one 10-year maximum renewal term possible) prior to the date for filing proof of beneficial use as required by the permit (or any approved extension of time). The lease is subject to two provisions:

  • only that amount of water placed to beneficial use under the lease (not any unused portion) shall be accepted as satisfying the beneficial use requirement of the permit necessary to establish a water right, and,
  • the water placed to beneficial use under the lease is only within the fully appropriated system. It may include any beneficial use.

 

The bill requires the permittee to give written notice of any such proposed lease to all protestants, if any, who participated in the prior permitting proceeding.

 

A possible benefit of this bill might be that it will help owners of waters rights keep those rights even if the owner cannot put the water to beneficial use directly. A possible concern might be that it would tie up water rights that would otherwise be lost for lack of putting the water to a beneficial use.

 

Date of Summary:  1/23/2013