(a) Except as provided in paragraph (c), the commissioner must issue a water level control permit to establish a control elevation for a landlocked lake below the ordinary high-water level for the lake if:
(1) the commissioner finds that:
(i) the control is necessary to prevent adverse impacts to the lake or adjoining property;
(ii) other reasonable or cost-effective alternatives are not available; and
(iii) natural resource or hydrologic conditions exist in the watershed that would limit the potential for continuous discharge of excess waters from the lake; and
(2) the outlet and discharge of excess waters is addressed in an approved water management plan under chapter 103B or 103D.
(b) In addition to the requirements in section 103G.301, subdivision 6, if the proposed control elevation is more than 1-1/2 feet below the ordinary high-water level, the permit applicant shall serve a copy of the application on each county and municipality within which any portion of the lake is located and the lake improvement district, if one exists.
(c) The commissioner may not issue a permit to establish a control elevation more than 1-1/2 feet below the ordinary high-water level of a lake if a county, municipality, watershed district, or lake improvement district required to be served under paragraph (b) or section 103G.301, subdivision 6, files a written objection to the issuance of the permit with the commissioner within 30 days after receiving a copy of the application.