After the permit’s beneficial use date, or upon notice from the permitholder that water has been applied to a beneficial use, the department of water resources shall notify the conditional water permitholder and inspect the works. The inspection must determine the safety, efficiency, and actual capacity of the works. If the works are not constructed properly and safely, the department may require the necessary changes to be made within a reasonable time. Failure to make the changes within the time prescribed by the department will result in postponement of the permit’s priority date to the date the changes are made to the satisfaction of the department. Any intervening application submitted before the date the changes are made will have the benefit of the postponement of priority. When the works are constructed properly and safely and inspected, the department shall issue the perfected water permit, setting forth the actual capacity of the works and the limitations or conditions upon the water permit as stated in the conditional water permit authorized by section 61-04-06.2. All conditions attached to any permit issued before July 1, 1975, are binding upon the permitholder.