Oversubscription of water -- Allocation procedure. (1) When a project authorized under this chapter is under development, the division shall establish a period of time during which the entities specified in Section 73-26-201 may offer to purchase or lease water developed by the project. (2) (a) If, in the time period established under Subsection (1), the division receives offers to purchase or lease more water than can be made available through the project, the board shall allocate the water among the interested purchasers. (b) In determining the allocations, the board: (i) shall give priority in the following order to: (A) municipal and industrial water needs; (B) agricultural water needs; and (C) all other water uses; and (ii) may proportionately reduce each offer.
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