N.M. Stat. § 73-7-36
In all cases where lands in such drainage districts have been sold or may hereafter be sold to satisfy delinquent drainage assessments and the interest or penalties thereon as provided by Sections 73-7-25 through 73-7-35 of said statutes [NMSA 1978] and have been bought in [sic] by the drainage districts as provided by Section 73-7-31 of said statutes [NMSA 1978] as amended by Chapter 26 of the Laws of 1933 if such lands are not worth the amount of the assessments accumulated against them, together with delinquent taxes and/or future assessments thereon, and in the opinion of the commissioners cannot be sold for sufficient to satisfy such sums, upon order of the district court of the county wherein such districts or any part thereof is situated, based upon a petition of the commissioners by and with the consent of the holder or holders of any bonds issued by the district, such lands may be eliminated from the drainage district and all assessments cancelled against the same and they may be sold by the commissioners at private sale for the best price obtainable, and the proceeds derived from such sale shall be divided pro rata between the county treasurer and the treasurer of said drainage districts in discharge of all such taxes and assessments.
NMS § 73-7-36