1) Where the holder of the water right-

(a) fails to comply with any condition of the grant express or implied or;

(b) has abstracted or used water resources for a purpose not authorised by the grant, the Commission may by notice in writing addressed to the holder require him to remedy the default within such period as shall be specified in the notice.

(2) If the holder fails or neglects to remedy the default within the period specified the Commission may terminate the water right and inform the holder accordingly in writing.