B. Except as provided in subsection E of this section, if the director receives an application to drill a new nonexempt well, including a notice of intention to drill a new nonexempt well under section 45-596, at a location within two miles of the exterior boundaries of the reservation and the combined maximum pumping capacity of all proposed wells included in the application that will be located within two miles of the exterior boundaries of the reservation is five hundred gallons per minute or more, the director shall deny the application to drill the well unless the applicant submits one of the following to the director:

1. 1. A hydrologic study demonstrating to the director’s satisfaction both of the following:

   1. (a) That the water level at the proposed well site is declining at less than an average rate of two feet per year based on annual water level data collected during the five years before the date the application was filed.
   2. (b) That the projected withdrawals from all of the proposed wells to be located within two miles of the exterior boundaries of the reservation over the initial five-year period of withdrawals will not cause a water level decline of ten feet or more at any point on the exterior boundaries of the reservation.
2. 2. A hydrologic study demonstrating to the director’s satisfaction that the projected withdrawals from all of the proposed wells to be located within two miles of the exterior boundaries of the reservation over the initial five-year period of withdrawals will not cause a water level decline of five feet or more at any point on the exterior boundaries of the reservation.
3. 3. The nation’s written consent to the drilling of the well.

C. In determining the water level declines caused by a proposed well under subsection B, paragraph 1 or 2 of this section, or in determining the average annual water level change at a proposed well site under subsection B, paragraph 1 of this section, the following shall not be considered:

1. 1. The effects on water levels of pumping from wells within the reservation.
2. 2. The effects on water levels of underground storage facilities located within two miles of the exterior boundaries of the reservation and recovery wells located within two miles of the exterior boundaries of the reservation, except that in determining the average annual water level change at a proposed well site under subsection B, paragraph 1 of this section, the storage of water at an underground storage facility located within two miles of the exterior boundaries of the reservation shall be considered if the water is stored by the applicant or by another person on behalf of the applicant.