Amends GS 87-98 (concerning the Bernard Allen Memorial Emergency Drinking Water Fund) to permit Fund payments for additional testing for contamination in specified circumstances, repair of contaminated wells, and monitoring of certain filtration systems. Limits the Fund expenditure to $50,000 (was, $10,000) per household or connection to pay for an alternative drinking water supply provided by waterline extension. Specifies that the Fund may not cover more than one-third of the project's total cost when more than ten residences are eligible for alternative water supplies. Clarifies that $100,000 may be used annually to pay for personnel and other direct costs to operate the Fund. States that wells contaminated from non-naturally occurring groundwater sources have priority for replacement supplies over wells with naturally occurring contamination.