(1) The board shall review water reservations at least once every 10 years to determine if the objectives of the reservation are being met.

(2) The board shall issue an order for the review including the information which must be submitted by the reservant and the deadline for its submittal.

(3) All reservants shall submit a report reviewing the objectives of the reservation and how they are being met, including but not limited to the following:

(a) a summary of the amount granted, allocated to date, any change in the amount required to satisfy the purpose and need of the reservation, and any change in the methodology originally used to determine the amount. For instream flow reservants, if there are new or refined methodologies for quantifying instream flow amounts, the reservant is required to discuss the appropriateness and feasibility of reviewing the granted instream flows in light of the new or refined methodologies.

(b) whether the purpose remains the same as identified in the application and board order,

(c) whether the need still exists as identified in the application and board order,

(d) whether the amount is still appropriate in accordance with the application and board order, and

(e) whether the reservation remains in the public interest as identified in the application and board order.

(4) All reservants shall provide information evidencing compliance with the board's order granting the reservation. The information shall include a list of all compliance documents such as general plans, detailed plans, annual and biennial reports and their submittal dates.

(5) If a diversionary reservation has not reached the development level projected, what factors have deterred the progress towards perfecting the water reservation and what actions will the reservant take to insure perfection of the reservation.

(6) Instream use reservations shall include information showing how they are protecting the reservation from adverse affect by junior water users and where appropriate, that they are in compliance with their management plan under ARM 36.16.106 and any other conditions required by the board.

(7) The board shall consider the following when determining whether the objectives are being met:

(a) all information above and as ordered, by the board,

(b) the period of time which has elapsed since the date of the order granting the reservations and whether the reservant's actions reflect reasonable diligence in the perfection of the water reservation,

(c) new or changed circumstances, information or values, and

(d) any other considerations set out in the board order granting the reservation.

(8) Reasonable diligence is demonstrated by actions of the reservant in investment of time and money in the perfection of the reservation, including but not limited to:

(a) partial development of water reservation,

(b) completion of additional studies, project design plans, promotional efforts, or environmental assessments.

(9) If the board determines that the objectives of a reservation are not being met it shall set a date for hearing and require the reservant to show cause why the proposed board action should not be taken. The board shall provide notice of the proposed action by first class mail on persons who according to the department's notice list have an interest in the reservation as determined under ARM 36.16.122 and shall publish such notice at least once in a newspaper of general circulation in each county as determined by the board within the basin 60 days prior to board action.

(10) Any person wishing to intervene in the show cause hearing must file a notice with the board 30 days prior to the hearing date.

(11) The reservant shall pay for notice and publication of hearing and proposed action under this rule as required under ARM 36.16.114.

(12) Reasons a water reservation may be modified or revoked include but are not limited to:

(a) a reservant is unable to meet the objectives of the water reservation or show reasonable diligence in perfecting the water reservation as determined under ARM 36.16.120(9) ,

(b) a reservant relinquishes all or a portion of its water reservation, or

(c) failure of the reservant to comply with the board's order granting the reservation.

(13) A reservation term may be extended for a reasonable period of time to enable the reservant to meet the objectives of the reservation. An extension may be considered at the request of the reservant or on the board's own motion.