April 5, 2010 (FinancialWire) — The New Mexico Office of State Engineer approved an emergency authorization relating to American Water (NYSE: AWK) subsidiary New Mexico American Water's application to combine water rights for wells producing potable water for the Clovis water system.

New Mexico American Water filed the application on July 30, 2008 and anticipated the need for emergency authorization at that time in anticipation of possible water shortages in the Clovis area as a result of the depletion of the Ogallala Aquifer in eastern New Mexico.

New Mexico American Water has water rights for over 51,000 acre feet of water and uses about 7,100 acre feet annually to supply Clovis. Each of the 59 wells that currently supply water to Clovis has a set water right assigned to it. Some of these wells are no longer capable of pumping the full amount of the water right assigned to the well, other wells have more water capacity available, but are limited by the water rights currently assigned to that well.

"Ten years ago, it took 29 wells to supply Clovis. This summer it will take 62 wells to produce about the same amount of water," said Kathy Wright, New Mexico American Water's general manager. "Managing our water rights comprehensively will help offset the drop in the Ogallala."

In order to operate these wells more efficiently and provide an adequate water supply for Clovis this summer and into the future, New Mexico American Water asked to combine its water rights. In the context of the application process NMAW created a pumping schedule which allows for a small change in pumping to 15 wells to meet the peak water demands but does not harm other well owners. This application and pumping schedule were reviewed extensively by the experts for the Office of the State Engineer who determined that allowing NMAW to pump its wells in accordance with the pumping schedule is not likely to impair existing water rights and has now issued emergency authorization.

New Mexico American Water has worked with the city of Clovis to develop a water management ordinance and has created rebate programs and communications that help customers use less water. New Mexico American Water will launch its annual conservation campaign in the coming weeks to ask customers to follow the three day a week watering schedule with odd numbered addresses watering on Tuesdays, Thursdays and Saturdays and even numbered addresses watering on Wednesdays, Fridays and Sundays. New Mexico American Water also encourages everyone in the community to take advantage of rebates to install water efficient toilets, clothes washers and landscaping.

New Mexico American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and related services to approximately 60,000 people.

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