The department of water resources shall provide, by rule, the procedure and criteria for the issuance of a license. The department, in accordance with its rules, shall issue a weather modification license to each applicant who:

1. Pays a license fee of fifty dollars.

2. Demonstrates competence to engage in weather modification operations, to the satisfaction of the department.

3. Designates an agent for the service of process pursuant to section 61-04.1-13 or chapter 10-19.1.

Each license issued by the department is nontransferable and expires on December thirty-first of the year of issuance. A license is revocable for cause at any time prior to such date if, after holding a hearing upon due notice, the department determines that cause for revocation exists. License fees collected by the department must be paid into the general fund in the state treasury.