State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                 February 6, 1997
  
  
  Mr. Speaker:
  
       Your AGRICULTURE AND WATER RESOURCES COMMITTEE,
  to whom has been referred
  
                        HOUSE BILL 139
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 1, line 11, strike "A SECTION" and insert in lieu
  thereof "CERTAIN SECTIONS".
  
       2.  On page 3, line 18, after "a" insert "state engineer-
  approved".
  
       3.  On page 3, line 18, after "program" strike the remainder
  of the line and on line 19 strike "approved by the state engineer,".
  
       4.  On page 3, line 22, strike "Article 2" and insert in lieu
  thereof "Article 2 or 3".
  
       5.  On page 3, after line 25, insert the following new
  section:
  
       "Section 2.  Section 72-12-8 NMSA 1978 (being Laws 1931,
  Chapter 131, Section 8, as amended) is amended to read:
  
       "72-12-8.  WATER RIGHT FORFEITURE.--
  
            A.  When for a period of four years the owner of a water 
  right in any of the waters described in Sections 72-12-1 through
  72-12-28 NMSA 1978 or the holder of a permit from the state engineer
  to appropriate any such waters has failed to apply them to the use
  for which the permit was granted or the right has vested, was
  appropriated or has been adjudicated, the water rights shall be, if
  the failure to beneficially use the water persists one year after
  notice and declaration of nonuser given by the state engineer,
  forfeited and the water so unused shall revert to the public and be
  subject to further appropriation; provided that the condition of
  notice and declaration of nonuser shall not apply to water which has
  reverted to the public by operation of law prior to June l, l965.
  
            B.  Upon application to the state engineer at any time
  and a proper showing of reasonable cause for delay or for nonuse or
  upon the state engineer finding that it is in the public interest,
  the state engineer may grant extensions of time, for a period not to
  exceed three years for each extension, in which to apply to
  beneficial use the water for which a permit to appropriate has been
  issued or a water right has vested, was appropriated or has been
  adjudicated.
  
            C.  Periods of nonuse when irrigated farm lands are
  placed under the acreage reserve program or conservation reserve
  program provided by the Food Security Act of l985, P.L. 99-l98,
  shall not be computed as part of the four-year forfeiture period.
  
            D.  Periods of nonuse when water rights are acquired and
  placed in a state engineer-approved water conservation program
  [adopted] by an artesian conservancy district, conservancy district, 
  [or] an acequia or community ditch association organized pursuant to
  Chapter 73, Article 2 or 3 NMSA 1978, an irrigation district
  organized pursuant to Chapter 73, Articles 9 through 13 NMSA 1978 or
  the interstate stream commission shall not be computed as part of
  the four-year forfeiture statute.
  
            E.  A lawful exemption from the requirements of
  beneficial use, either by an extension of time or other statutory
  exemption, stops the running of the four-year period for the period
  of the exemption, and the period of exemption shall not be included
  in 
  computing the four-year period.
   
            F.  Periods of nonuse when water rights are acquired by
  incorporated municipalities or counties for implementation of their
  water development plans or for preservation of municipal or county
  water supplies shall not be computed as part of the four-year
  forfeiture statute.
  
            G.  Periods of nonuse when the nonuser of acquired water
  rights is on active duty as a member of the armed forces of this
  country shall not be included in computing the four-year period.
  
            H.  The owner or holder of a valid water right or permit
  to appropriate waters for agricultural purposes appurtenant to
  designated or specified lands may apply the full amount of water
  covered by or included in that water right or permit to any part of
  [such] the designated or specified tract without penalty or
  forfeiture."".,
  
  and thence referred to the JUDICIARY COMMITTEE.
  
                                Respectfully submitted,
  
  
  
                                                                 
                                                              G. X. McSherry, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 8  For 0  Against
  Yes:      8
            Excused:  Abeyta
            Absent:   None
  
  
  .115821.1
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