(1) The procedures for review of subdivision applications by the reviewing authority are as follows:

(a) Upon receipt of a subdivision application, a resubmittal, or additional information provided by the applicant, the department will have 60 days to deny, approve, or conditionally approve the subdivision application.   If an environmental impact statement is required, action must be taken within 120 days.

(b) If a local department or board of health has been certified as the reviewing authority pursuant to 76-4-104, MCA, the local reviewing authority shall, within 50 days after receipt of a subdivision application, review the application and forward the application to the department together with a recommended action for approval, conditional approval, or denial.   The department shall take final action on the application within the time remaining in the 60-day or 120- period set out in (1) (a) .

(i) If the local reviewing authority recommends denial of an application, the recommendation must be in the form of a denial letter sent to the applicant within 50 days after receipt of the application.   The local reviewing authority shall send a copy of the application and denial letter to the department.   A denial letter issued by the local reviewing authority shall constitute the department's final action regarding the denial unless the department finds, pursuant to ARM 17.36.116, that the recommended denial was in error.

(c) If an application is incomplete, the reviewing authority shall deny the application, setting forth, in writing, the deficiencies to the applicant or the applicant's representative.   When the additional information is submitted, the reviewing authority shall review such additional information within the timeframes specified in (1) (a) or (b) as applicable.

(2) Subdivision lots recorded with sanitary restrictions prior to July 1, 1973, shall be reviewed in accordance with requirements set forth in this chapter.   In cases where any requirements of this chapter would preclude the use for which each lot was originally intended, then the applicable requirements (including the absence thereof) in effect at the time such lot was recorded shall govern except that sanitary restrictions in no case shall be lifted from any such undeveloped lot which cannot satisfy any of the following requirements:

(a) if a subsurface wastewater treatment system is utilized, there must be at least four feet from the natural ground surface to a limiting layer;

(b) the site for any subsurface wastewater treatment system may not exceed 25% in slope;

(c) no part of the lot utilized for the subsurface wastewater treatment system may be located in a 100 year floodplain;

(d) if a subsurface wastewater treatment system is utilized, soil conditions must provide for safe treatment and disposal of wastewater effluent; and

(e) the proposed water supply must comply with the requirements of this chapter.