Extensions and cancellation. Where the time has expired to put any portion of the water appropriated under a conditional water

permit to the beneficial use named in the permit, the department will notify the permitholder. The department will provide the permitholder with a form to request an extension for applying the water to the beneficial use and to explain why an extension should be granted. Except in overriding circumstances, no extension will be granted when other conditional water permit applications are pending from a limited supply source.