N.M. Stat. § 19-5-10
[Water appropriation application.]
Before any contract as provided in Sections 19-5-7 to 19-5-9 NMSA 1978, shall
issue, the applicant shall file with the commissioner a certificate of the state engineer
showing a compliance with the laws, and regulations for the appropriation of water, and
that applicant has the right to appropriate water for such purposes: provided, that no
such contract shall operate to prevent the cancellation, according to law, of any permit
to appropriate waters of the state.