Each exploration hole, other drill hole or borehole, well, or other exposed underground opening shall be cased, sealed, or otherwise managed, as approved by the Commission, to prevent acid or other toxic drainage from entering ground or surface waters, to minimize disturbance to the prevailing hydrologic balance, and to ensure the safety of people, livestock, fish and wildlife, and machinery in the permit area and adjacent area. If these openings are uncovered or exposed by surface mining activities within the permit area they shall be permanently closed, unless approved for water monitoring, or otherwise managed in a manner approved by the Commission. Use of a drilled hole or borehole or monitoring well as a water well must meet the provisions of §12.351 of this title (relating to Hydrologic Balance: Transfer of Wells). This section does not apply to holes solely drilled and used for blasting.