Sec. 5. Before commission consideration of the application, the applicant must do the following:
(1) Obtain the prior written approval of the department of environmental management for sewage disposal facilities involved with the channel and each facility that the channel is to serve. Prior approval is not required for housing developments of less than six (6) lots.
(2) If a channel will:
(A) connect to a navigable river or stream; and
(B) create additional water areas that will be connected to the navigable river or stream;
dedicate any water created to general public use.