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<br />ATTACHMENT 2 <br /> <br />" <br />r <br />"--; <br /> <br />NEW MEXICO'S STATEMENT OF AUTHORITIES RELATED TO THE <br />MEMORANDUM OF UNDERSTANDING <br /> <br />'i; <br /> <br />New Mexico's Statutes, Section 72-5-1 (1985 Repl. pamp.), <br /> <br />provides that any person, association, or corporation intending to <br /> <br />acquire the rights to the beneficial use of any surface water <br /> <br />shall, before commencing any construction, make an application with <br /> <br />the State Engineer for a permit to appropriate. Section 72-2-1 of <br /> <br />the statutes authorizes the State Engineer to have general <br /> <br />supervision of the waters of the state and of the measurement, <br /> <br />appropriation and distribution thereof. New Mexico Statutes thus <br /> <br /> <br />provide for the State Engineer to exercise control of the diver- <br /> <br />sion, appropriation and use of the surface waters of the state. <br /> <br />The surface water rights of the San Juan River System in New <br /> <br />Mexico were adjudicated by the San Juan Decree, San Juan County <br /> <br />Cause No. 01690, entered by the state district court on April 8, <br />1948, for all surface rights except those of the Indian tribes and <br /> <br />the federal government. <br /> <br />The decree determines the ownership, <br /> <br /> <br />priority, location and amount of water that can be applied to <br /> <br />beneficial use. <br /> <br />The decree contains limitations on both the <br /> <br />maximum diversion rate and the maximum amount of water that may be <br /> <br />applied to beneficial use. <br /> <br /> <br />New Mexico Statutes, Section 72-2-8 (1985 Repl. Pamp.), <br /> <br /> <br />provides that the State Engineer may adopt regulations imposed to <br /> <br />implement and enforce any provision of law administered by him, <br /> <br />including special orders defining the declared boundaries of <br /> <br />underground streams, channels, artesian basins, reservoirs, or <br /> <br />lakes. Section 72-12-1 (1985 Repl. Pamp.) provides that the water <br />