(a) Based upon the application and any information deemed pertinent by the Director of the Arkansas Natural Resources Commission, the director will determine whether to issue a Certificate of Existence.
(b) The director will:
(1) Approve or disapprove conversion; and
(2) State reasons for disapproval in writing.
(c) The water authority may request a hearing regarding an unfavorable determination in accordance with the Rules of Organization and General Operation of the Arkansas Natural Resources Commission, 15 CAR pt. 1.