TRANSFER OF WELLS:

1. A. An exploratory or monitoring well may be transferred by the person who conducts surface coal mining operations for further use as a water well with the prior approval of the director and with such approval as is otherwise required by the state engineer. That person and the surface owner of the lands where the well is located shall jointly submit a written request to the director for that approval.

2. B. Upon an approved transfer of a well, the transferee shall:

   (1) assume primary liability for damages to persons or property from the well;

   (2) plug the well when necessary, but in no case later than abandonment of the well; and

   (3) assume primary responsibility for compliance with 19.8.20.2001 through 2003 NMAC with respect to the well.

3. C. Upon an approved transfer of a well, the transferor shall be secondarily liable for the transferee's obligations under Subsection B of 19.8.20.2021 NMAC, until release of the bond or other equivalent guarantee required by 19.8.14 NMAC for the area in which the well is located.

   [11-29-97; 19.8.20.2021 NMAC - Rn, 19 NMAC 8.2.20.2021, 9-29-2000]