N.M. Stat. § 3-27-2

conveyances authorized; land for appurtenances; public and
private use; compensation.
  A. Subject to the provisions of this section, municipalities within and without the
municipal boundary may:

        (1)      acquire, contract for or condemn:

              (a) springs;

              (b) wells;

              (c) water rights;

              (d) other water supplies; and

              (e) rights of way or other necessary ownership for the acquisition of water
facilities;

       (2)    acquire, maintain, contract for or condemn for use as a municipal utility
privately owned water facilities used or to be used for the furnishing and supply of water
to the municipality or its inhabitants; and

      (3)      change the place of diversion of any water to any place selected by the
municipality in order to make the water available to the municipality.

   B. Municipalities shall not condemn water sources used by, water stored for use by
or water rights owned or served by an acequia, community ditch, irrigation district,
conservancy district or political subdivision of the state. The provisions of this
subsection apply only to an acequia or community ditch formed before July 1, 2009.
    C. For the purposes stated in Section 3-27-3 NMSA 1978, a municipality may take
water from any stream, gulch or spring. If the taking of the water materially interferes
with or impairs the vested right of any person to the creek, gulch or stream or to any
milling or manufacturing on the creek, gulch or stream, the municipality shall obtain the
consent of the person with the vested right or acquire the vested right by condemnation
and make full compensation or satisfaction for all damages occasioned to the person,
subject to the provisions set forth in Subsection B of this section.

    D. Any person may lawfully convey to any municipality any water, water right and
ditch right or any interest in any water, water right and ditch right held or claimed by the
grantor. No change or use of the:

       (1)    water;

       (2)    water right;

       (3)    place of diversion; or

      (4)      purpose for which the water or water right was originally acquired by the
grantor, shall invalidate the right of the municipality to use the water or water right.

  E. Proceedings to obtain any condemnation authorized in this section shall be in the
manner provided by law.

    F. At any time before or after commencement of a condemnation action authorized
by Chapter 3, Article 27 NMSA 1978 to condemn any well, cistern, reservoir, distribution
pipe or ditch, spring, stream, water or water right, the parties may agree to and carry out
a compromise or settlement as to any matter. Within twenty days following the filing of
the petition, the condemnee may elect to proceed through an arbitration process
pursuant to the Uniform Arbitration Act by filing a written notice with the condemnor. The
arbitrators may award an amount they find to be just compensation for the
condemnation of the water or water rights. The arbitrators may decide that the interests
of justice are not served by permitting the taking of the condemnee's water or water
rights and may order that the arbitration be dismissed and that the property not be taken
by the municipality. If the award of the arbitrators exceeds the amount offered by the
condemnor pursuant to this subsection by more than one hundred fifteen percent, or if
the arbitrators decide that no taking shall occur as permitted in this subsection, or if the
arbitration is abandoned by the condemnor, then the arbitrators shall award reasonable
and necessary arbitration expenses, including attorney fees, to the condemnee.

   G. In any condemnation proceeding pursuant to this section, the entity shall have
reasonably satisfied the following criteria prior to commencing any such proceeding:

       (1)   the entity has a requirement for water or water rights for public health or
safety purposes; or
       (2)      the entity has a requirement for water or water rights for other purposes
and:

         (a) suitable water rights are unavailable for voluntary sale at up to one
hundred twenty-five percent of appraised value;

          (b) suitable water rights in the public domain are unavailable for purchase at
up to one hundred twenty-five percent of appraised value;

             (c) the entity has implemented a water conservation plan; and

             (d) the acquisition and purpose is consistent with the regional water plan.

History: 1953 Comp., § 14-26-2, enacted by Laws 1965, ch. 300; 1969, ch. 251, § 7;
1994, ch. 99, § 3; 2009, ch. 269, § 2.

                                        ANNOTATIONS

Cross references. — For Eminent Domain Code, see 42A-1-1 to 42A-1-33 NMSA
1978.

The 2009 amendment, effective June 19, 2009, in Subsection A, at the beginning of
the sentence, added "Subject to the provisions of this section"; added Subsection B; in
Subsection C, after "occasioned to the person", added the remainder of the sentence;
and added Subsections F and G.

The 1994 amendment, effective May 18, 1994, added Paragraph A(2), and made
minor stylistic changes throughout the section.

Jurisdiction of municipal condemnation of public utility. — The public utilities
commission does not have jurisdiction over municipal condemnations of regulated water
and sewer utilities. United Water N.M., Inc. v. N.M. Pub. Util. Comm'n, 1996-NMSC-007,
121 N.M. 272, 910 P.2d 906.

Law reviews. — For note, "United Water New Mexico v. New Mexico Public Utility
Commission: Why Rules Governing the Condemnation and Municipalization of Water
Utilities May Not Apply to Electric Utilities," see 38 Nat. Resources J. 667 (1998).