The board of directors of an irrigation district may by resolution, or must, if petitioned by the owners of record of over fifty per cent (50%) of the number of lots in a platted subdivision, declare its proposal to exclude from the district all lots or parcels of residential land in the district described in the petition which have not received water from the water rights of the district or through the irrigation works and system of the district during the period of five (5) years immediately preceding the adoption of the resolution. Lots or parcels of land in contiguous subdivisions may be included in the same resolution. Platted lots which theretofore received water through the same ditch operated by a lateral ditch water users’ association may be included in the same resolution. If the board is petitioned by over fifty per cent (50%) of the lot owners of a subdivision, the board shall conduct the entire proceedings according to sections 43-1110 through 43-1117, Idaho Code.