(1) Notwithstanding any contrary provision of law, and subject to subsection (2) of this section, the Water Resources Department may approve an application under ORS 537.615 by a public water system to appropriate ground water in a ground water quality management area declared under ORS 468B.180 for expanded group domestic use in an amount of water equivalent to the amount of water provided by abandoned water wells that, prior to being abandoned, had used water as provided in:
(a) ORS 537.545 (1)(d); or
(b) If used by a household, ORS 537.545 (1)(b) and (d).
(2) The department may not approve an application described in subsection (1) of this section unless:
(a) The amount of equivalent water described in subsection (1) of this section is less than or equal to 5,000 gallons per abandoned well per day, unless a higher amount is established by the Water Resources Commission by rule; and
(b) The impact of the proposed public water system well on hydraulically connected surface water bodies is similar to or less than the cumulative impact of the abandoned water wells described in this section.
(3) The Water Resources Commission may adopt rules as necessary to implement this section.