Opinion ID: 1164485
Heading Depth: 1
Heading Rank: 2

Heading: Jurisdictionthe effect of the stipulation.

Text: Roswell's application was under § 75-11-7, N.M.S.A. 1953 (Repl.Vol. 11, pt. 2). That section provides for advertisement as in the case of original applications. The statute on original applications to appropriate underground water is § 75-11-3, N.M.S.A. 1953 (Repl.Vol. 11, pt. 2). This section requires publication of    a notice of the filing of such application, and that objections to the granting thereof may be filed   . Berry does not contend that these provisions were not followed in connection with Roswell's application. Because of the stipulation between Roswell and Carlsbad at the beginning of the administrative hearing, Berry claims that Roswell's application was amended and that notice of the asserted amended application had to be published. Since this was not done, Berry contends the State Engineer lacked authority to proceed with the hearing. Generally speaking, under the stipulation, Roswell agreed to permanently retire and abandon 1500 acre-feet of valid water rights if the State Engineer approved its application. Berry claims:    the offer to retire rights, without evidencing the character or specific nature of such rights, the location thereof, or without formally specifying such rights in the written application of the city or without reference thereto by publication, fails to put the public on notice and fails to comply with the requirements of Section 75-11-7 N.M.S.A., 1953 Compilation. The issue, in proceedings under § 75-11-7, supra, is whether approval of the application would impair existing rights. In reaching a decision in connection with the application, the State Engineer has the positive duty to determine whether existing rights would be impaired. Heine v. Reynolds, 69 N.M. 398, 367 P.2d 708 (1962). The principle underlying the statutory requirement of application, notice and hearing is to insure that the change proposed in the application will not impair the rights of other appropriators. Application of Brown, 65 N.M. 74, 332 P.2d 475 (1958). In deciding the issue of impairment, the State Engineer is not limited to either an approval or rejection of the application in toto. In order to prevent an impairment of rights, he has authority to approve an application subject to conditions. W.S. Ranch Company v. Kaiser Steel Corporation, 79 N.M. 65, 439 P.2d 714 (1968); City of Albuquerque v. Reynolds, 71 N.M. 428, 379 P.2d 73 (1962). The stipulation indicated Roswell's willingness to accept such a condition  a retirement of 1500 acre-feet of water rights. Thus, the stipulation was material to and an item to be considered on the issue of impairment of water rights. Roswell's purpose in entering the stipulation was to offset the effects of its proposed new well field on the flow of the Pecos River. Since Roswell was the applicant, it had the burden of proving that its proposed well field would not impair existing rights. Heine v. Reynolds, supra. The stipulation was one item in its attempt to meet that burden. The stipulation, then, is both a proposed condition to Roswell's application and an evidentiary item on the issue of impairment. Berry contends that the stipulation had the effect of amending Roswell's application. This is not correct. The stipulation did not change what Roswell sought by the application. It still sought the same change in well location and the same change in place and purpose of use of certain water rights. Nor did the stipulation change the issue to be determined in connection with the application. The issue was still whether existing rights would be impaired. Berry claims that notice should have been given that Roswell proposed to retire the 1500 acre-feet of water rights. In addition, he claims that the notice should have specified the particular rights to be retired, and the character, specific nature and location of the particular rights. Section 75-11-7, supra, and § 75-11-3, supra, require the notice to state that the application has been filed so that objection to the application may be filed. The purpose of giving notice is to insure the change proposed in the application will not impair existing rights. Application of Brown, supra. These statutes do not require the notice to include a proposed condition to the application nor to state evidentiary details which may be considered on the issue of impairment. The stipulation did not have the effect of amending Roswell's application. Neither the proposed retirement of rights nor the details of those rights was required to be published. The stipulation did not deprive the State Engineer of jurisdiction to proceed with the hearing.