A. The commission is authorized to conduct, whenever it deems such project expedient, any project, the cost of which is to be paid wholly by means of or with the proceeds of revenue bonds authorized, or in connection with a grant to aid in financing such project from the United States or any instrumentality or agency thereof, or with other funds provided under the authority of Sections 72-14-9 through 72-14-28 NMSA 1978. If revenues from the project are intended to pay the cost of maintaining, repairing and operating the project and to pay the principal and interest of revenue bonds that may be issued for the cost of the project, before conducting any project, the commission shall make estimates of the cost of the project, of the cost of maintaining, repairing and operating the project and of the revenues to be derived from the project, and no such project shall be conducted unless, according to the estimates, the revenues to be derived will be sufficient to pay the cost of maintaining, repairing and operating the project and, if no other revenues are to be pledged to repayment of bonds that may be issued for the cost of the project, to pay the principal and interest of revenue bonds which may be issued for the cost of such project; provided, however, that in connection with the issuance of any of the bonds, the failure of the commission to make the estimates required by this section or to make the estimates in proper form shall in no way affect the validity or enforceability of any such bonds or of the trust indenture, resolution or other security for the bonds.

B. The purpose of Sections 72-14-9 through 72-14-28 NMSA 1978 is to meet a statewide need for the conservation and use of water through projects designed or intended for such purposes. The commission is empowered to make such investigations as may be necessary to plan and carry out a comprehensive statewide program of water conservation; provided, however, that those sections shall not be construed to repeal or amend by implication or otherwise the provisions of law enacted with respect to permits for the acquisition of water rights, permits for the change in place or method of use of water or permits for the construction of works. The projects to be finally conducted shall qualify as parts of such statewide program and, if applicable shall be approved by the commission upon the showing of their prospective ability to meet, through the sale of water or other services, the cost of operation, maintenance and repair and the amortization of the cost of the project; provided, however, that the failure of the commission to determine such prospective ability of a project shall in no way affect the validity or enforceability of any such bonds.

History: 1953 Comp., § 75-34-11, enacted by Laws 1955, ch. 266, § 3; 1997, ch. 241, § 5; 1997, ch. 246, § 5.

The 1997 amendment, effective June 20, 1997, added the section heading, substituted "Sections 72-14-9 through 72-14-28 NMSA 1978" for "this act" twice in the section; in Subsection A, added the language beginning "If revenues from" and ending "cost of the project" at the beginning of the second sentence, substituted "conducting" for "constructing" and "conducted" for "constructed", and inserted "if no other revenues are to be pledged to repayment of bonds that may be issued for the cost of the project" near the middle of the subsection; in Subsection B, deleted "so far as possible" following "to meet" and "the construction and operation of" following "water through" in the first sentence, in the second sentence deleted the language at the end referring to notice, publication and hearing for appropriation of water in declared underground water basins, in the last sentence substituted "conducted" for "constructed" and "project" for "construction" and inserted "if applicable" preceding "shall be approved"; and made stylistic changes throughout the section.

Laws 1997, ch. 241, § 5 and Laws 1997, ch. 246, § 5, both effective June 20, 1997, enacted identical amendments to this section. The section was set out as amended by Laws 1997, ch. 246, § 5. See 12-1-8 NMSA 1978.

Payment for feasibility study. — If commission proposes to enter into agreement with certain irrigation companies whereby commission agrees to conduct a "feasibility study" regarding rehabilitation and repair of Cabresto dam for a consideration of $2,000, and if the project is not economically feasible, companies are not liable to reimburse commission's irrigation works construction fund for any amount of costs of the study, commission may expend the $2,000 even if the project should be determined not to be economically feasible. 1958 Op. Att'y Gen. No. 58-92.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 78 Am. Jur. 2d Waterworks and Water Companies § 3.

93 C.J.S. Waters § 195; 94 C.J.S. Waters §§ 321, 365.