Committee backs stiffer penalties, enforcement for water theft in HB 348

House members on the committee advanced House Bill 348 on a due-pass recommendation after debate and public comment over stronger penalties and clearer enforcement for water-right violations.

The bill, sponsored by Representative Ortez, would raise a daily statutory penalty for unlawful water diversions from the long-standing $100-a-day level set in 1907 to $2,000 a day, with an annual inflation adjustment. The measure also clarifies when penalties begin to accrue — from notice by the Office of the State Engineer (OSE) — and restores a certified-mail requirement for compliance orders while allowing alternative service methods in remote areas.

Representative Christine Ortez, sponsor, said the measure "strengthens our water laws by increasing penalties for violations and improving enforcement measures." The bill authorizes penalties to accrue once the OSE notifies a violator, but limits collection until a compliance order becomes final following a hearing.

Experts and stakeholders who testified described persistent, localized problems of illegal wells and diversions. DL Sanders, a former chief legal counsel for the State Engineer, told the committee that groundwater users in some southeastern New Mexico aquifers face chronic overdiversion and that stronger penalties are needed to create disincentives. John Romero, water-rights director and water-resource allocation program director at the OSE, described the day-to-day enforcement burden and supported the bill, saying it "gives us the tools to protect our precious water resources." Rebecca Roos, infrastructure adviser to the governor, urged quick passage so the state could better deter theft.

The committee considered and adopted a stakeholder amendment that (1) required compliance orders to be served by certified mail where possible (restoring a prior procedural safeguard requested by the Pecos Valley Artesian Conservancy District) and (2) added a safe-harbor clarification to protect farmers or ranchers who unintentionally over-divert but have no other violations from facing the full monetary penalty. Representative Ortez explained the amendment "clarifies" the safe-harbor language after public comment in a Senate committee.

During questions, members pressed OSE officials about how the agency responds to reports of suspected illegal drilling or diversion; the OSE said Watermasters and field staff are dispatched to investigate complaints and that drillers are required to keep permits at drilling sites for inspection. Representative Hall asked for examples of water theft; OSE witnesses described illegal well drillers who come from out of state and sell water to the oil-and-gas industry or to unauthorized cannabis operations as two recurring scenarios.

Representative Romero moved the do-pass recommendation on House Bill 348 as twice amended. The chair called the roll and the committee recorded a due pass. The written tally was not specified in the transcript.

The bill now moves to the next House floor or committee step with the adopted technical and safe-harbor changes in place.