March 3, 10 and 17, 2016

NOTICE is hereby given that on July 31, 2015, the Trust of Warren D. Bounds and The Bounds Family Trust, 1232 Black River Village Road,
Carlsbad, New Mexico 88220, and Gregory Rockhouse Ranch, Inc., C/o MStapleton, LLC, 1108 West Pierce Street, Carlsbad, New Mexico 88220, filed application No. SP-55 & SP-1279 into C-3260 and C-3824 (T) for a permit under the Water-Use Leasing Act (NMSA 1978, Sections 72-6-1 thru-72-6-7) to temporarily change the point of diversion, and the place and purpose of use (surface to groundwater) of 225.00 acre-feet per annum (farm delivery requirement) of surface water diverted from the Blue Spring portion of the Black River at the following described location:

Point of DiversionBounds GateSubdivisionSE1/4SW1/4NE1/4SW1/4Section27Township24SRange26E

The applicant proposes to temporarily cease the irrigation of 75.00 acres of land located as follows:

SubdivisionPt. W1/2NW1/4NE1/4Pt. SW1/4NW1/4Pt. SE1/4NW1/4Section26 26 26Township24S 24S 24SRange26E 26E 26EAcres 9.60 25.70 39.70

Total: 75.00 N.M.P.M. The applicant proposes to temporarily commence the diversion of 157.50 acre-feet per annum of shallow groundwater (Consumptive Use), to be diverted from the following described wells:

WellC-3260-POD1 C-3824-POD1SubdivisionSE1/4NW1/4SW1/4SW1/4NW1/4SE1/4NW1/4NE1/4Section12 16Township24S 24SRange27E 28E

N.M.P.M. for temporary commercial water sales for oil and gas development purposes on state, private, and BLM lands in southern Eddy County, New Mexico. This application is filed under the Water-Use Leasing Act, NMSA 1978, Sections 72-6-1 through 72-6-7. Application is made for a permit to temporarily transfer 157.50 acre-feet per annum of consumptive-use water right to Gregory Rockhouse Ranch, Inc., that, if granted, would expire on December 31, 2023. Upon termination or expiration of the desired permit, the subject water right will automatically revert to the move-from points of diversion and the move-from place and purpose of use, pursuant to the applicable provisions in that permit. The above-described move-from point of diversion and place of use are located 1.50 miles southwest of Black River Village. Move-to well C-3260-POD1 is located on the Claramai Hayhurst property, approximately six miles northeast of Black River Village, while move-to well C-3824-POD1 is located on the Effren Collins property, approximately ten miles northeast of Black River Village, all in Eddy County, New Mexico. Any person, firm or corporation or other entity having standing to file objections or protests shall do so in writing (legible, signed, and to include the writer's complete name, mailing address and telephone number). The objection or protest to the granting of the application shall be specific as to how the granting of the application will adversely affect the objector or protestant. The written protest must be filed, in triplicate, with the State Engineer, 1900 W. Second St., Roswell, New Mexico 88201 within 10 days after the date of the last publication of this Notice. A facsimile ("fax") will be accepted as a timely protest as long as triplicate hard copies are hand-delivered or mailed and postmarked within 24 hours of the fax. Protests can be faxed to 575-623-8559. A copy of the written protest filed with the State Engineer must also be sent to the applicant by certified mail within 10 days after the date of the last publication of this Notice. If no timely protest or objection is filed, the State Engineer will evaluate the application in accordance with the Water-Use Leasing Act.