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(1) The state engineer shall:
(a) undertake an investigation of any application made under this chapter; and
(b) approve the application, if he finds that:
(i) the proposed appropriation or change:
(A) satisfies Section 73-3-3, 73-3-5.5, or 73-3-8, whichever is applicable;
(B) is consistent with Utah's reasonable water conservation policies or objectives;
(C) is not contrary to the public welfare; and
(D) does not impair the ability of the state of Utah to comply with its obligation under any interstate compact or judicial decree which apportions water among Utah and other states; and
(ii) the water can be transported, measured, delivered, and beneficially used in the recipient state.
(2) In reviewing the criteria of Subsections (1)(b)(i)(B) and (1)(b)(i)(C), the state engineer shall consider the following factors:
(a) the supply and quality of water available to the state of Utah;
(b) the current and reasonably anticipated water demands of the state of Utah;
(c) whether there are current or reasonably anticipated water shortages within Utah;
(d) whether the water that is the subject of the application could feasibly be used to alleviate current or reasonably anticipated water shortages within Utah;
(e) the alternative supply and sources of water available to the applicant in the state where the applicant intends to use the water; and
(f) the demands placed on the applicant's alternate water supply in the state where the applicant intends to use the water.
(3) If any application fails to meet any criteria of Subsection (1), it shall be rejected.
(4) The state engineer may condition any approval to ensure that the use of the water in another state:
(a) is subject to the same laws, rules, and controls that may be imposed upon water use within the state of Utah; or
(b) is consistent with the terms and conditions of any applicable interstate compact to which the state of Utah is a party.