- New Mexico sued the federal government over unauthorized groundwater wells.
- State officials say wells were drilled in three protected underground water basins.
- The state wants further drilling and pumping stopped.
- The lawsuit seeks double repayment for groundwater allegedly diverted illegally.
- Earlier enforcement actions targeted two drilling subcontractors.
Wednesday, September 2, 2026 —New Mexico has taken its growing fight over border wall groundwater to court.
On August 26, 2026, the state sued the federal government and several contractors
, alleging they repeatedly drilled wells without state authorization while working on a wall along the U.S.-Mexico border.
The lawsuit was filed in New Mexico’s Sixth Judicial District Court. It asks the court to stop additional unauthorized drilling and pumping and require illegally drilled wells to be properly plugged and abandoned. The state also wants an accounting of groundwater already taken and double repayment for water it says was illegally diverted.
The defendants are the United States; Barnard Construction Company, the prime contractor for this section of the border wall; and drilling subcontractors Wyatt Drilling Arizona and Cascade Drilling.
Wells Drilled in Three Underground Basins.
According to the state, the New Mexico Office of the State Engineer documented unauthorized drilling at multiple locations in the Mimbres, Hachita and Lower Rio Grande Underground Water Basins.
State officials say the drilling occurred without required authorization from the State Engineer. The lawsuit also alleges that a totalizing meter was improperly tampered with. Such a meter records the total amount of water pumped from a well.
The complaint describes other alleged problems. State officials say proper well construction and plugging requirements were not followed, creating what the state calls an imminent risk of groundwater contamination. The complaint also alleges that a collapsed borehole was left without the required plan for plugging it.
“Water is a precious resource in New Mexico, and the residents, ranchers, and farmers whose water is being stolen by the federal government deserve justice,” Gov. Michelle Lujan Grisham said.
State Engineer Elizabeth K. Anderson said New Mexico’s permitting system is intended to protect people who hold water rights.
“Our permit procedures exist to protect water rights holders, and we are not going to allow the federal government to evade those protections and threaten our groundwater,” Anderson said. “We are also demanding double repayment for all illegally diverted groundwater.”
The Dispute Had Been Building for Weeks.
The lawsuit follows several weeks of conflict over the wells.
By early August, ranchers and elected officials were raising concerns about groundwater being used for the border project. U.S. Customs and Border Protection subsequently told contractors to stop drilling new wells and seek other water sources. However, U.S. Rep. Gabe Vasquez said that did not resolve questions about wells that had already been drilled, whether those wells would continue pumping or how much water the overall project would require.
Federal officials previously said groundwater was needed for concrete, dust control and road construction associated with the project.
State Previously Targeted the Drillers.
New Mexico had already taken administrative action against the two drilling subcontractors now named in the lawsuit.
The Office of the State Engineer issued notices of violation to Wyatt Drilling Arizona and Cascade Drilling in early August. State officials said the companies could face civil penalties of up to $3,400 per day for each violation and could lose their New Mexico well driller’s licenses if the violations were not corrected within 30 days. Both companies were also required to submit plans for plugging the wells.
A Cascade Drilling employee declined to comment when contacted by Source New Mexico at the time. A man who identified himself as the owner of Wyatt Drilling said he was unaware that he might have violated state regulations.
“I was just doing what I was asked to do as a subcontractor on the job,” he said.
New Mexico Now Wants the Water Repaid.
The August 26 lawsuit moves the dispute beyond administrative enforcement against the drilling companies.
New Mexico is asking the court to stop further unauthorized well drilling and pumping and order the illegally drilled wells properly plugged and abandoned. The state also wants the defendants to account for the groundwater already diverted.
Then comes an unusual part of the requested relief: New Mexico is seeking double repayment of all groundwater it alleges was illegally taken.
The lawsuit now puts those allegations, and New Mexico’s demand for repayment, before a state court.
