If two or more applications which otherwise comply with section 174C-49 are pending for a quantity of water that is inadequate for both or all, or which for any other reason are in conflict, the commission shall first, seek to allocate water in such a manner as to accommodate both applications if possible; second, if mutual sharing is not possible, then the commission shall approve that application which best serves the public interest.
Petitions for interim instream flow standard amendments are not among the water use permit applications "competing" under this section; the statute relating to instream use protection, § 174C-71, operates independently of the procedures for water use regulation outlined in this part.94 Haw. 97,9 P.3d 409.