1. The department may issue preliminary permits for the purpose of enabling applicants for a license hereunder to secure the data and to perform the acts required by section 15-1707, provided, however, that upon the filing of any application for a preliminary permit by any person or public corporation, the department before granting such application shall at once give notice of such application in writing to any municipality which, in its judgment, is likely to be interested in or affected by such application. Each such permit shall be for the sole purpose of maintaining priority of application for a license under the terms of title 17 of this article for such period or periods, not exceeding a total of three years, as in the discretion of the department may be necessary for making examinations and surveys, preparing maps, plans, specifications and estimates, and making financial arrangements.

2. The permit shall set forth the conditions under which priority shall be maintained and the license issued, and may prescribe any condition of issuing the license for the protection of the interests of the state. Only one preliminary permit at a time shall be issued and outstanding for the same project. The same preference shall be accorded by the department in considering applications for a preliminary permit as is accorded in considering applications for a license. Each preliminary permit shall require the permittee to proceed diligently and immediately to secure the data and to perform the acts required by section 15-1707.

3. All investigation work in connection with any operations carried on under the preliminary permit shall be subject to the inspection of the department, its agents and employees, and, from time to time upon the request of the department, the permittee shall make full reports to the department of the progress of the work carried on under the preliminary permit, but such reports shall be confidential until final application is made for the license, unless the department takes proceedings to revoke the preliminary permit.

4. Permits shall not be transferable and may be cancelled by the department upon failure of the permittee to comply with the conditions thereof.