(1) Except as provided in Subsection (2), an aquaculture facility or a fee fishing facility may not be developed on:

1. (a) a natural lake;
2. (b) a natural flowing stream; or
3. (c) a reservoir constructed on a natural stream channel.

(2) The Division of Wildlife Resources may authorize an aquaculture facility, public aquaculture facility, or fee fishing facility on a natural lake or reservoir constructed on a natural stream channel upon inspecting and determining:

1. (a) the facility and inlet source of the facility neither contain wild game fish nor are likely to support such species in the future;
2. (b) the facility and the facility's intended use will not jeopardize conservation of aquatic wildlife or lead to the privatization or commercialization of aquatic wildlife;
3. (c) the facility is properly screened as provided in Subsection 23-15-10(3)(c) and otherwise in compliance with the requirements of this title, rules of the Wildlife Board, and applicable law; and
4. (d) the facility is not vulnerable to flood or high water events capable of compromising the facility's inlet or outlet screens and allowing escapement of privately owned fish into waters of the state.