Applicability. New units and lateral expansions shall not be located within two hundred feet (200’) (sixty meters (60 m)) of a fault that has had displacement in Holocene time unless the owner or operator demonstrates to the Director of the Division of Environmental Quality that an alternative setback distance of less than two hundred feet (200’) (sixty meters (60 m)) will prevent damage to the structural integrity of the unit and will be protective of human health and the environment.