(a) Grandfathering Existing Wells.

(1)

(A) Within one (1) year of initiation of the regulatory authority as provided under § 15-22-909, the Arkansas Natural Resources Commission, upon application, shall issue to an applicant within the critical groundwater area a water right for existing wells equal to the average quantity of groundwater withdrawn for beneficial use over the past three (3) water years.

(B) For wells with reported use levels significantly below normal use levels, prior water year use reports may be used to determine the three-year average in subdivision (a)(1)(A) of this section.

(2) For new wells constructed during the first year of initiation of the regulatory authority as provided under § 15-22-909, the commission, upon application, shall issue to an applicant within the critical groundwater area a water right equal to the quantity of groundwater necessary for beneficial use.

(3)

(A) Failure to apply within this period shall create a conclusive presumption of abandonment of use.

(B) If the landowner desires to receive a water right, he or she must apply for a water right pursuant to subsection (b) of this section.

(4) Water rights issued pursuant to this subsection shall be exempt from the public notice requirements described in subsection (b) of this section.

(b) New Groundwater Rights Applications.

(1) To obtain a water right, application must be made in a form satisfactory to the commission.

(2) The application shall contain information reasonably necessary to assist the commission in making a determination as to issuance of a water right.

(3) Upon receipt of the application, the commission shall cause to be published a notice of application for water rights in a newspaper with statewide circulation.

(4) In consideration of an application for water rights, the commission may:

(A) Grant the application;

(B) Deny the application; or

(C) Grant the application subject to necessary reductions or conditions.

(5) Persons who are or might be affected by issuance may request a hearing before the commission concerning the application within fifteen (15) days of publication of notice.

(c) Priorities. In the issuance of water rights, the commission shall give reasonable preference first to sustaining life, then to maintaining health, and finally to increasing wealth.

(d) Review and Modification. Water rights issued under this section shall be subject to review and modification by the commission.

(e) Alternative Water Supplies. In determining the issuance of water rights, the commission shall consider the availability or lack of availability of alternative water supplies.