(A) No person shall withdraw, take, or divert water from any canal or canal reservoir operated and maintained by the director without first obtaining a lease or sale agreement from the director in accordance with section 1520.03 of the Revised Code. Any sale or lease agreement for water from a canal or canal reservoir shall be administered by the division in accordance with sections 1520.03 and 1521.08 of the Revised Code.
(B) The withdrawal of water from any canal or canal reservoir for domestic use is exempt in accordance with section 1520.03(C) of the Revised Code. However, the director may require water conservation measures for water that is withdrawn from any canal or canal reservoir for domestic use during drought conditions, or emergencies declared by the governor.
(C) This chapter of the Administrative Code shall apply to all waters impounded in any canal reservoir or canal operated and maintained by the director except the waters of Lake Erie and that portion of streams or rivers used for canal navigation.
(D) The director may sell or lease water from any canal or canal reservoir that the director operates and maintains only to the extent that the water is in excess of the quantity required for navigation, recreation, and wildlife purposes, and to the extent that such canal or canal reservoir was designed to yield a supply of water for a purpose other than recreation or wildlife.
(E) The quantity of water that may be sold or leased from a canal reservoir or canal shall be determined by the division using accepted engineering methods and practices.
(F) Any water withdrawn for commercial, industrial, agricultural, hydroelectric power generation, or public water supply use shall be measured by a metering system or other method acceptable to the division. All withdrawals as mentioned above shall be reported to the division on a form provided by the division and within a time period specified by the division.
(G) The director may restrict water use that is authorized in lease and sale agreements issued in accordance with section 1520.03 of the Revised Code during periods of drought, dam or canal embankment emergency, or any other events that may affect water supplies.
(H) The director shall not sell or lease water from a canal or canal reservoir within any state nature preserve or state natural area that is owned by the department.
(I) No lease or sale agreement for the use of water from a canal or canal reservoir that is operated and maintained by the director shall be required for operation of departmental facilities.
(J) Except as provided in rule 1501-7-06 of the Administrative Code, the director shall not sell, lease, or otherwise provide water to any person from any canal reservoir or canal that was constructed or purchased, wholly or in part, with funds from hunting or fishing licenses, deer and wild turkey permits, or trapping permits as provided in sections 1533.15 and 1533.33 of the Revised Code.