45-493. Limitations on extensions of service areas; prohibition on formation of private water company for irrigation purpose; prohibition on service without payment of tax

A. In an active management area, the service area of a city, town or private water company may not be extended primarily for any of the following purposes:

1. Including a well field within the service area.

2. Furnishing disproportionately large amounts of water to an industrial or any other large water user unless it is consistent with the management plan for the active management area and is approved by the director.

3. Including irrigation acres within the exterior boundaries of the service area to extinguish the right to convey irrigation grandfathered rights to a non-irrigation use.

B. Within an active management area, a city, town or private water company may not extend its service area for the purpose of withdrawing and distributing groundwater for irrigation purposes.

C. Subsequent to the date of the designation of the active management area, a private water company may not be formed within an active management area to withdraw and distribute groundwater for irrigation purposes.

D. If a municipal provider whose service area has qualified as a member service area under title 48, chapter 22 terminates water service to any portion of the service area and fails to pay the replenishment tax levied by a conservation district under title 48, chapter 22 for that area, another municipal provider shall not commence service of groundwater under section 45-492, subsection A or D or section 45-494 to landowners and residents within that area without first making arrangements to pay all outstanding replenishment taxes to the conservation district. This subsection does not apply to the commencement of service of groundwater by an irrigation district to an industrial user under section 45-497. For the purposes of this subsection, " municipal provider" has the same meaning prescribed in section 45-561.