(1)

(a) The commission shall issue a water use warning or declare and delineate a water use caution area, if one (1) of the following conditions exist:

(i) The mining of an aquifer is occurring; or

(ii) Existing water resources, including surface water, groundwater, or both, are inadequate to meet present or reasonably foreseeable needs.

(b) In making a determination under this section, the commission shall use data developed through the application of generally accepted scientific methodologies.

(2)

(a) If the commission determines that one (1) of the conditions in subsection (1) of this section exists and that time allows the development of a solution through cooperation between the commission, the department, local permit holders, political subdivisions and water management districts in the affected area, the commission shall issue a water use warning and may order the implementation of the reporting requirements in Section 51-3-23.

(b) Upon issuance of a water use warning, the commission shall send notice to all permit holders, political subdivisions and water management districts within the affected area. The notice shall describe the conditions requiring issuance of a water use warning, propose corrective measures and request the assistance of the permit holders, political subdivisions and water management districts in alleviating or correcting the conditions. The commission shall request in the notice voluntary compliance of the permit holders with any corrective measures proposed by the commission.

(c) The permit holders, political subdivisions and water management districts, in cooperation with the commission, shall develop and implement a plan for alleviating or correcting the conditions. If the commission determines that satisfactory progress is being made by the affected parties, the commission may extend the deadline or timetable for the development or implementation of a plan or may allow modification of the plan.

(3)

(a) If the commission determines that one (1) of the conditions in subsection (1) of this section exists and that prompt and immediate action is required to protect the resource, the commission shall give notice of its intent to declare the need for establishment of a water use caution area. The notice and public hearing required by this subsection shall be made as provided in Sections 25-43-7(1) and 49-17-25. The notice shall delineate the proposed water use caution area, describe those proposed actions needed to protect the resource and recommend any additional permit requirements the commission deems necessary to address the conditions.

(b) Upon closing of the public hearing record and consideration of relevant comments on its proposed action, the commission may adopt an order establishing a water use caution area. If the commission orders the establishment of a water use caution area, the commission shall, within one hundred twenty (120) days following entry of the order, adopt regulations consistent with this chapter and commensurate with the necessary degree of control pursuant to its regulatory authority in Section 51-3-25.