(a) The rights conferred by an appropriation permit shall lapse, and the permit shall become null and void, in the event of nonuse of the appropriation for a period of two consecutive years; provided, that the Commissioner shall have discretion not to apply this subsection to appropriations expressly intended for emergency or standby purposes, rather than regular use, upon a showing that the need to use the appropriated water has not arisen during the period of nonuse.
(b) Within one year from the date of issuance of any permit under this chapter the Commissioner shall review the application, inspect any well or other water works constructed in connection therewith, and examine the actual use of water being made under the permit. If, upon such review and inspection, he finds that the amount authorized for appropriation in the original permit exceeds the amount that will be required to meet the needs of the permittee for beneficial use, he may amend the permit by reducing the amount authorized for appropriation to the required amount.
(c) Whenever it is found that the appropriations authorized or the actual withdrawals from any source of water exceed the quantity of water that may safely be withdrawn from the source, the Commissioner shall take steps to protect the water source, including the modification or revocation of any outstanding appropriation permits authorizing withdrawal from that source.