A. Upon the hearing of the petition as provided for in Section 73-14-8 NMSA 1978, if it appears that a petition for the organization of the district has been signed and presented as required by law, and that the allegations of the petition are true, that the lands described in the petition substantially conform to the requirements of Subsection K, Section 73-14-5 NMSA 1978, and that no protesting petition has been filed, or if filed has been dismissed, the court shall give the district a corporate name, by which in all proceedings it shall thereafter be known, and shall fix a date for an election and order the board of county commissioners of any county within which the proposed district lies, to conduct such election on the question of whether or not the district shall be created.
B. If the court finds against the prayer of the petitions [petition], it shall dismiss the proceedings and adjudge the costs against the signers of the petition in the proportions as it deems just and equitable.