After filing a notice of water exchange that conforms with the requirements of section 45-1051, subsection A, the exchange may be initiated if it satisfies the following conditions:

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1. The water exchange will be made pursuant to a written contract.

2. The water exchange will not affect vested rights to water.

3. Each participant in the water exchange has a right to the water the party will give in the exchange.

4. For each participant that is not a city, town, private water company or irrigation district, any new or increased pumping by that participant from a well within an active management area pursuant to the water exchange will not unreasonably increase damage to surrounding land or other water users.

5. For each participant that is a city, town, private water company or irrigation district with a service area located partly or wholly in an active management area, any new or increased pumping by that participant within that participant’s service area pursuant to the water exchange is consistent with the management plan and achievement of the management goal for the active management area.

6. Each participant in the water exchange either:

(a) Receives at least ninety per cent of the quantity of water that the participant gives in the water exchange.

(b) Receives at least fifty per cent of the quantity of water that the participant gives in the water exchange, unless otherwise authorized by law, and the director determines the water exchange is beneficial to water management in this state.