After the Arkansas Natural Resources Commission determines that regulation is necessary within a critical area, and after it declares that water rights are required for water withdrawal, the following procedures will be observed:

1. (1) Registered users of groundwater within the critical groundwater area will be individually evaluated for issuance of a water right unless exempted from regulation under 15 CAR § 21-405;

2. (2)

   1. (A) The commission will issue water rights to registered users after review, considering:

      1. (i) Exemption status; or
      2. (ii) Other options under this part.
   2. (B) Reporting and monitoring procedures will be defined and appropriate forms provided;

3. (3)

   1. (A) A periodic review of all wells within the designated critical groundwater area will be conducted by the commission to determine reporting compliance.
   2. (B) Any person using groundwater without having registered or any person deliberately reporting incorrect usage will be charged as provided in 15 CAR §§ 21-206 – 21-208; and
4. (4) All determinations for the current water year shall have been made by March 1 of the preceding water year.