(a) All persons or entities:
(1) That have been granted powers by the state to acquire water, water rights and associated property by eminent domain or condemnation; or
(2) That acquire or supply water for the use or benefit of public water supply systems as defined in § 68-221-703,
(b) For purposes of determining the amount of an existing inter-basin transfer under this section, it is the average daily amount calculated for the highest continuous 90-day period between January 1, 1997, and December 31, 1999; provided, that nothing whatsoever in this section shall apply to existing withdrawals by entities described above except that such persons or entities shall be subject to this section when proposing to:
(1) Increase the amount of water withdrawn, when some or all of the water will be transferred to a different river basin; or
(2) Locate a new intake for withdrawal, when some or all of the water will be transferred to a different river basin.
(c) All persons or entities that are issued a permit under subsection (a) shall operate the withdrawal activity in accordance with all terms and conditions of the permit.