1. A. When a person, pursuant to a finding of fact, violates a requirement or prohibition of Chapter 72 NMSA 1978, a regulation, code, order or special order adopted by the state engineer pursuant to Section 72-2-8 NMSA 1978, a condition of a permit or license issued by the state engineer pursuant to law or an order entered by a court adjudicating a water right, the state engineer may, in addition to any other remedies available under law, issue a compliance order stating with reasonable specificity the nature of the violation and requiring compliance within a specified time period. A compliance order shall not be effective against a party other than the person against whom the compliance order is issued.
2. B. This section shall not be construed to affect or interfere with any jurisdiction of an irrigation district, a conservancy district, a state court, a federal court or an Indian nation, tribe or pueblo to enforce its orders and decrees pertaining to water rights.
3. C. A compliance order may include an order to cease the violation of a requirement or prohibition of Chapter 72 NMSA 1978, a directive issued in accordance with the provisions of Section 72-2-8 NMSA 1978, a condition of a permit or license issued by the state engineer or an order entered by a court adjudicating a water right.
4. D. The state engineer shall provide an opportunity for the person named in the compliance order to have a hearing on the alleged violation pursuant to Section 72-2-16 NMSA 1978. A hearing shall be held if a written request is made to the state engineer within thirty days after receipt of the notice of the compliance order sent by certified mail. If service by certified mail is not possible, the state engineer may serve the compliance order by process server or other effective means. Notice shall be deemed effective when delivered to the address of record of the person named in the compliance order. A compliance order issued pursuant to this section shall become final unless the person named in the order submits a written request for a hearing to the state engineer within thirty days of receipt of the order. A compliance order shall be enforceable only upon becoming final. Nothing in this section shall prohibit the person named in the order from pursuing an informal resolution of the matter after a timely request for hearing has been made.
5. E. A compliance order may require repayment of water that was overdiverted or illegally diverted. Repayment of water may be up to double the amount of the overdiversion or illegal diversion. In determining the repayment of water beyond the amount overdiverted or illegally diverted, the state engineer shall take into consideration the seriousness of the violation, any good faith efforts to comply with the applicable requirements and any other relevant factors. Any requirement to repay water shall not be enforceable until the compliance order becomes final. Installation of a measuring device may be required prior to any future diversion of water. The state engineer shall not pursue a civil penalty pursuant to Subsection G of this section for an overdiversion of a water right. This subsection shall not be construed to alter or affect any stream adjudication court orders in place prior to the effective date of this 2026 act.
6. F. Any appeal to district court shall be conducted pursuant to Chapter 72, Article 7 NMSA 1978 and shall not stay enforcement of the compliance order unless ordered by the district court.
7. G. Prior to issuing a compliance order, the state engineer shall issue a written notice of violation. After issuing a written notice of violation, the state engineer may assess a civil penalty of up to three thousand four hundred dollars ($3,400) per day for each day during any portion of which the violation continues. If the water is sold without a permit to do so, the maximum penalty shall be double the economic benefit to the violator resulting from the violation or twenty-five dollars ($25.00) per barrel of water sold, whichever is greater. In determining the amount of the civil penalty, the state engineer shall take into consideration the seriousness of the violation, any good faith efforts to comply with the applicable requirements and any other relevant factors. A compliance order may require payment of the assessed civil penalty accruing from the date of the notice of violation. The civil penalty shall not be enforceable until the compliance order becomes final.
8. H. If a person does not comply with a compliance order, the state engineer may file a civil action in the county in which the violation occurred to enforce the compliance order and receive any of the remedies provided in this section, including injunctive relief.

History: Laws 2001, ch. 143, § 1; 2007, ch. 82, § 1; 2026, ch. 28, § 1.

ANNOTATIONS

The 2026 amendment, effective May 20, 2026, provided that a compliance order may be served on the person named in the compliance order by process server or other effective means if service by certified mail is not possible, increased the maximum penalty for a violation of water law, and required the state engineer to consider the seriousness of the violation in determining the amount of the penalty; in Subsection D, after "certified mail", added "If service by certified mail is not possible, the state engineer may serve the compliance order by process server or other effective means. Notice shall be deemed effective when delivered to the address of record of the person named in the compliance order"; in Subsection E, after "future diversion of water", added the remainder of the subsection; in Subsection G, after the subsection designation, deleted "After" and added "Prior to issuing", after "a compliance order" deleted "becomes final" and added "the state engineer shall issue a written notice of violation. After issuing a written notice of violation.", after "civil penalty of up to", deleted "one hundred dollars ($100)" and added "three thousand four hundred dollars ($3,400)", after "per day for" deleted "violation of the compliance order. Any civil penalty assessed shall accrue from the date of assessment of the penalty" and added the remainder of the subsection; and in Subsection H, after "may file a civil action" added "in the county in which the violation occurred".

The 2007 amendment, effective June 15, 2007, provided that compliance orders are effective only against the party against whom it is issued; that this section does not affect the jurisdiction of conservancy districts and state courts; that compliance orders may include orders to cease violations of Chapter 72 NMSA 1978, a directive issued pursuant to Section 72-2-8 NMSA 1978, a condition of a permit or license or court order; that persons named in compliance orders may request a hearing of alleged violations; that a compliance order may require repayment of overdiverted or illegally diverted water; and that appeals to the district court do not stay enforcement of the compliance order unless otherwise ordered by the district court.