(1) The water judges and the department, in performing their functions in the adjudication process, shall give priority to basins or subbasins designated each biennium by the legislature. Basins or subbasins must be designated according to the following criteria:
(a) recurring water shortages within the basin or subbasin have resulted in urgent water rights controversies that require adjudication to determine relative rights;
(b) federal or Indian reserved rights are nearing determination, either by compact or adjudication, thus making adjudication of other rights in the basin or subbasin important for timely issuance of preliminary or final decrees;
(c) the basin or subbasin's location would help ensure efficient use of department and water court resources; and
(d) the adjudication process in the basin or subbasin is nearing the issuance of a decree.
(2) The water judge may designate a basin for priority adjudication upon petition of 100 or more persons who have filed claims within the basin or may designate a subbasin for priority adjudication upon petition of a majority of persons who have filed claims within the subbasin. However, the basin or subbasin may receive priority only if it meets one or more of the criteria in subsection (1).
(3) If adjudication work in one or more of the priority basins or subbasins has been completed or has been suspended for good cause, the water judge may select other basins or subbasins for priority adjudication based on the criteria in subsection (1).