A. Whenever the proper officers of the United States, authorized by law to construct works for the utilization of waters within the state, shall notify the Board that the United States intends to utilize certain specified waters, the water so described, and unappropriated at the date of such notice, shall not be subject to further appropriation under the laws of this state, provided that upon receipt of notice as hereinabove provided the Board shall prepare and give public notice by publication in at least two newspapers qualified to publish such notices in each county or counties in which such stream system or stream systems are situated, as may be affected by such proposed withdrawal by the United States. Provided that in counties in which there is but one such newspaper, it shall be sufficient to publish the said notice in that newspaper. Such notice shall be published at least thirty (30) days prior to the date set for the hearing, setting forth the date, time and place, together with a general description of the proposed works to be constructed by the United States and location in such stream system, the volume of water requested under such withdrawal and any other pertinent information that will be helpful in apprising all interested parties as to the probable effect of such withdrawal by the United States. Interested parties may make oral statements for the record at such hearing, or they may present written statements at the hearing or before the hearing, to the Board at its offices. After the hearing the Board shall consider all evidence submitted at the hearing and determine if the proposed withdrawal is in harmony with the best interests of the state. Provided further, if the Board finds that the withdrawal of waters requested is not in the best interests of the state, then the Board shall:

1. Have the authority to reduce the amount of water requested for withdrawal; and/or

2. Attach such conditions to the proposed withdrawal as the Board deems in harmony with the best interests of the state; or

3. Reject the request for withdrawal in its entirety. Provided further, that the Board shall notify the United States, or its proper officers, of its findings within thirty (30) days after the final decision has been reached by the Board. Provided further, that if the Board approves the withdrawal of all or a part of the waters requested to be withdrawn by the United States or its authorized officers, such officers shall, within a period of three (3) years from the date of said notice, file plans for the proposed works in the office of the Board for its information and no adverse claim to the use of the waters approved for withdrawal required in connection with such plans initiated subsequent to the date of such notice shall be recognized under the laws of the state, except as to such amount of the water described in such notice as may be formally released in writing by an officer of the United States, thereunder duly authorized; provided, that in case of failure to file plans for the proposed work within three (3) years, as herein required, the water approved for withdrawal specified in the notice given by the United States to the Board shall become public water, subject to general appropriation; provided further that in case the proposed work as detailed in the plans to be filed as herein required is not commenced and continued with due diligence within eight (8) years from the date of filing of the plans with the Board, the water approved for withdrawal specified in the request for withdrawal shall become public water subject to general appropriation; provided, that when actions relating to project authorization for initiation of construction are delayed pending actions of the Congress, or water right adjudications by the state, national emergencies or other valid and good reasons, the Board may extend the period beyond eight (8) years within which work may be commenced or resumed as provided herein by making a finding of fact and filing a report in the office of the Board that it is the opinion of the Board that releasing the waters involved to general appropriation may be detrimental to the best interests of the state and the area involved. Such finding shall state specifically the additional time to be granted within which proposed work on the project or projects, covered by plans, shall be commenced or resumed.

B. Any waters withdrawn prior to May 23, 1967, by the United States under statutes of this state in the stream systems of the state shall be only those waters necessary for the plans filed for the project's economic justification and water supply. Any remaining portion of the waters of such stream system which are not required for the project as planned by the United States and for which plans are duly filed with the Board, as hereinabove provided, shall be subject to general appropriation as provided by state law; provided further, that any withdrawal notice by the United States and the filing of project plans by the United States prior to October 2, 1959, shall be considered as effective and continued in full force to the maximum time allowed above from October 2, 1959. Provided, that as to said water withdrawn by the United States prior to May 23, 1967, the Board may extend such time for the causes and in the manner as provided in this act for the extension of time for the building of works utilizing waters withdrawn after May 23, 1967.

Laws 1972, c. 256, § 29.