(a) General. In order for the commission to exercise effective supervision over all uses of state water, each supplier of treated or untreated state water possessing a valid water right shall make application for an amendment based upon the supplier's contractual arrangements with a purchaser and/or shall submit a copy of the contract in accordance with §295.101 of this title (relating to Documents To Be Filed). The contract must be submitted and/or the application approved by the commission before deliveries or diversions under the contract may be made lawfully. If a contract meets the requirements of these sections and is consistent with the authorizations of the base water right, the executive director will place a copy of the contract on file with the commission records and shall so notify the supplier.(b) Exceptions. The sections of this subchapter shall not apply to the following:(1) sales of untreated water conveyed by the supplier through a canal, pipeline, or aqueduct for the purpose and for use in the area authorized in the water right;(2) sales of treated water supplied through a public or private municipal distribution system or through a rural water supply system for the purpose and for use in the area authorized in the water right;(3) deliveries of treated sewage effluent for the purpose and use authorized and in the area authorized in the water right;(4) short term (three years or less) sales of untreated water from the perimeter of a reservoir for any purpose authorized in the water right in amounts not exceeding 10 acre-feet per annum; or(5) sales of untreated water from the Lower and Middle Rio Grande.