(1) As required by ARM 36.16.104, a $100 fee must be paid to the department when filing an application for reservation of water.

(2) In addition to the $100 fee, as required by 85-2-316, MCA, the department's cost of giving notice, holding the hearing, conducting investigations, and making records incurred in acting upon the application to reserve water, except the cost of salaries of the department's personnel, must be paid by the applicant. The applicant is also required to pay a reasonable portion of the department's costs for EIS preparation unless waived by the department upon a showing of good cause by the applicant.

(a) An applicant shall consult with the department prior to submitting an application to develop a preliminary estimate of the department's costs of acting upon such application. Where more than one application is expected to be filed for a common drainage basin, the department may meet with all the applicants in order to determine an appropriate allocation of costs among the applicants that is based on the relative amount of work to process each application. Within a reasonable time after filing an application, the applicant must pay the department 10 percent of the preliminary estimate or, where more than one application is expected to be filed for a common drainage basin, 10 percent of the applicant's share of the preliminary estimate of the total cost, to prepare a scope of work for completing any EIS and any other detailed work plans required in acting upon the applications.

(b) After a scope of work for the EIS and any other detailed plans for acting upon the application have been completed, the department will notify applicants of the maximum cost they will be individually assessed to process their applications. Applicants shall be notified of the maximum cost with 90 days of the department's receipt of the final application. The estimated 10 percent prepayment will be included in this amount and deducted from each applicant's future obligations. The terms of payment for such fee will be negotiated and set forth in a contract between each applicant and the department. For applications involving the construction of diversion facilities, the costs attributable to EIS preparation shall not exceed the limits provided in 85-2-124, MCA.

(c) An applicant may appeal to the board to have its fees reduced.

(d) Any payments made to the department in excess of what is actually expended shall be remitted to the applicant, within a reasonable time after the date of the board order reserving water.

(3) When the board provides notice of a proposed board action on an existing water reservation, by first class mail and publication in a newspaper of general circulation, the reservant or applicant shall be required to pay the notice costs.