45-514. Mineral extraction and metallurgical
processing permit; conditions for issuance; duration of
permit


A. Except as provided in subsection D of this section, a person who is engaged in
or proposes to engage in the extraction and processing of minerals shall be issued a
permit to withdraw groundwater in the required amount, if all of the following apply:


1. The amount of groundwater available for mineral extraction, metallurgical
processing and compliance with applicable environmental controls under a dewatering
permit is insufficient.


2. Uncommitted municipal and industrial central Arizona project water is not
available at the point where the operator's wellhead or distribution system would
otherwise be, at a cost which does not exceed the current municipal and industrial
central Arizona project delivery rates.


3. Other surface water of adequate quality or effluent of adequate quality is not
available at the point where the operator's wellhead or distribution system would
otherwise be, at a cost, including treatment costs, which does not exceed by twenty-five
per cent the cost the operator would otherwise incur in withdrawing groundwater.


4. The applicant does not own or lease type 2 non-irrigation grandfathered rights
originally based on withdrawals of groundwater for the extraction or processing of
minerals that the applicant is not using or leasing and that can be used at the proposed
location without imposing an unreasonable economic burden on the applicant.


B. A permit issued pursuant to this section shall be granted for a period of up to
fifty years, subject to renewal under the same criteria used in granting the original
permit.


C. If, during the duration of a mineral extraction and metallurgical processing
permit, the director determines that uncommitted municipal and industrial central Arizona
project water is available or surface water of adequate quality or effluent of adequate
quality is available to the permittee at a cost comparable to groundwater, the director
may require the permittee to use such water in lieu of groundwater.


D. Beginning January 1 of the calendar year following the year in which a
groundwater replenishment district is required to submit its preliminary plan pursuant to
section 45-576.02, subsection A, paragraph 1, and except for an application to renew a
mineral extraction and metallurgical processing permit, on receiving a permit application
the director shall not issue a permit for a well in the district unless at the time the
application is filed:


1. The director has determined that the district's plan for operation is consistent
with achieving the management goal, according to section 45-576.03, subsection E, and the
designation has not expired.


2. The master replenishment account, as established in section 45-858.01, does not
have a debit balance in an amount in excess of the amount allowed under section
45-576.01, subsection A, paragraph 3.