(1) When a subdivision is platted after September 13, 1975, under ORS 92.010 to 92.192, if the subdivision has three or more tracts on each acre of land within the subdivision, the subdivision shall be excluded and taken from the district pursuant to ORS 545.097 to 545.126 at the time that the plat is approved by the appropriate governing body.
(2) The exclusion provided in subsection (1) of this section shall not apply to a district which:
(a) Also supplies domestic water approved by the Oregon Health Authority to the subdivision; or
(b) Agrees to supply water to the subdivision. A district may require as a condition of any agreement that:
(A) The subdivider install underground pipe from the district’s designated point of delivery to each lot or parcel in the subdivision as shown on the plat approved by the appropriate governing body;
(B) The subdivider install a meter or other adequate measuring device at the delivery point to the subdivision and for each lot or parcel;
(C) The subdivider provide adequate easements for the delivery system and make provision for the maintenance and repair of the delivery system; and
(D) The subdivider provide any other measures that the district considers necessary for the proper and efficient delivery of water to the subdivision and for the efficient administration of such delivery.
(3) Nothing in subsection (2)(b) of this section requires a district to agree to deliver water to a subdivision.