N.M. Admin. Code § 19.25.2.18
Parties to a proceeding shall make a reasonable effort to stipulate to facts to be relied upon in a hearing or on appeal. Stipulations of fact or of resolutions of specific issues shall be in writing and signed or approved by all stipulating parties, and shall be filed with the hearings unit administrator, unless entered into within five days of any final hearing, whereupon the stipulation shall be presented at hearing. Objections to a stipulation shall be in writing, unless the stipulation is presented at hearing, whereupon any objections shall be presented at hearing. Settlements of all or a portion of the issues pending may be presented in writing before hearing or in writing or orally at hearing, and shall include the parties' procedural recommendation for disposition of the pending matter. The state engineer shall review and either accept, modify or reject any stipulation or settlement. If the state engineer modifies the stipulation or settlement, the parties shall have the opportunity to accept such modification or to void the stipulation. If the state engineer rejects any stipulation or settlement, the hearing shall proceed or be reconvened to take evidence on the merits of the pending matters, which may include the resolution of issues as presented in the stipulation or settlement.
N.M. Admin. Code § 19.25.2.18