Sec. 3. The department may, after an investigation has been conducted and a hearing has been held, deny permission to an applicant to inject, pump, or otherwise introduce potable ground water into an underground formation that contains nonpotable water if:
(1) the practice would:
(A) constitute a waste of potable ground water; or
(B) threaten to impair or exhaust the supply of the area; and
(2) available nonpotable water could be used instead of potable water.