If a contract provides that a purchaser may divert water upstream of a supplier's storage reservoir in a manner which impairs the supplier's water right:
  (1) the purchaser shall obtain a permit to the extent of the person's maximum annual diversions of water for the term of the contract; or
  (2) the supplier shall obtain a permit or an amendment to the extent of the purchaser's maximum annual diversions of water for the term of the contract; provided that the contract specifies that the supplier shall apply for such permit or amendment and that the purchaser shall divert water only under such permit or amendment.

Source Note: The provisions of this §297.104 adopted to be effective May 29, 1986, 11 TexReg 2331; amended to be effective August 19, 2002, 27 TexReg 7152