New Mexico and Texas reach agreement over rights to water in Rio Grande

EL PASO, Texas -- An agreement between New Mexico and Texas has been reached over the rights to water in the Rio Grande ahead of a tentative scheduled trial on the matter, according to New Mexico Attorney General Hector Balderas.

Both states have agreed to continue negotiations, potentially saving taxpayers millions of dollars in legal fees.

In 2013 the state of Texas filed a lawsuit arguing New Mexican farmers and other residents violated the Rio Grande Compact, saying that New Mexico owed Texas billions of dollars in damages.

Texas claims all the water below the Elephant Butte Reservoir should be shared between the two states.

Litigation stopped in favor of settlement negotiations.

If the two states don't agree after this round of talks, the case could end up before the Supreme Court again.

The tentative trial date is set for October 3, with a status hearing on July 26.

Any updates must be approved by the Texas State Supreme Court.