Gas or geothermal utility; acquisition by municipality; intent of legislature; self-liquidating project; liberal construction.

  1. Law
  2. New Mexico Statutes
  3. Municipalities
  4. Gas Utility
  5. Gas or geothermal utility; acquisition by municipality; intent of legislature; self-liquidating project; liberal construction.

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A. It is the intent of the legislature to authorize municipalities to:

(1) obtain the benefits of a natural gas supply, additional supply or supply of geothermal energy for their inhabitants and others within five miles of the municipal boundary;

(2) take proper steps and actions necessary to that end by the acquisition of a natural gas or geothermal system;

(3) finance the acquisition of the natural gas or geothermal system through the issuance of bonds; and

(4) operate and manage a natural gas association, in which it was an organizer, organized by two or more municipalities pursuant to Sections 3-28-1 through 3-28-19 NMSA 1978 if the operating municipality finds that the association can no longer maintain adequate service. The terms and conditions of the operation and management by the municipality shall be set forth in a joint powers agreement between the municipality and the association.

B. Chapter 3, Article 25 NMSA 1978 shall be liberally construed in conformity with the intent of this section.

History: 1953 Comp., § 14-24-1, enacted by Laws 1965, ch. 300; 1983, ch. 123, § 1; 1985, ch. 81, § 2.

ANNOTATIONS

Cross references. — For water or natural gas associations, see 3-28-1 NMSA 1978 et seq.

For authority to issue general obligation bonds, see 3-30-5 NMSA 1978.

For revenue bonds, see 3-31-1 NMSA 1978 et seq.

For Low Income Utility Assistance Act, see 27-6-11 NMSA 1978 et seq.

For Tort Claims Act, see 41-4-1 NMSA 1978 et seq.

For excavation damage to pipelines and underground utility lines, see 62-14-1 NMSA 1978 et seq.

Municipality's authority limited to five miles. — Whatever the meaning of "not limited to" in 3-25-3 NMSA 1978, these words did not extend the municipality's authority to distribute natural gas to customers more than five miles beyond the municipal limits. City of Las Cruces v. Rio Grande Gas Co., 1967-NMSC-190, 78 N.M. 350, 431 P.2d 492.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 26 Am. Jur. 2d Electricity, Gas, and Steam §§ 58, 59, 71, 154 et seq.; 56 Municipal Corporations, Counties, and Other Political Subdivisions §§ 575, 576.

63 C.J.S. Municipal Corporations § 1052.


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