N.M. Code R. § 19.25.8.23
If no timely protest has been properly filed or remains standing, the state engineer will, upon finding that the application meets the requirements of the Act and the Rules and Regulations of the state engineer, issue a permit to the applicant to construct and operate the project to artificially recharge, store, and recover all or part of the waters applied for. All applications will be conditionally approved as a pilot/demonstration project permit (see Section 15) unless the state engineer has granted a variance. The state engineer will deny an application if there is reason to believe that the granting of the application would impair existing water rights or the state's interstate stream obligations, cause harm to land owners within the area of hydrologic effect, be contrary to the conservation of water within the state, or would be detrimental to the public welfare of the state.
N.M. Code R. § 19.25.8.23