(1) An application for a permit or an application for an amendment to a permit may be denied for the following reasons:
(a) the plan of operation or reclamation conflicts with Title 75, chapter 2, as amended, Title 75, chapter 5, as amended, Title 75, chapter 6, as amended, or rules adopted pursuant to these laws;
(b) the reclamation plan does not provide an acceptable method for accomplishment of reclamation as required by this part.
(2) A denial of a permit must be in writing, state the reasons for denial, and be based on a preponderance of the evidence.