(1) As a condition of participating in mediation or arbitration under Section 73-3d-402, a person specified in the executive order declaring a temporary water shortage emergency shall post with the department a corporate surety bond, irrevocable letter of credit, trust fund agreement, or any other security agreement considered reasonable in an amount not less than $100,000.
(2) The bond or other security posted shall be conditioned upon:
(a) the faithful performance in mediation or arbitration; and
(b) the payment of amounts owed under Section 73-3d-402.
(3) If the department determines that the conditions of Subsection (2) are not met, the commissioner of the department shall bring an action upon the bond or other security.