I think it means they either stick with the original unit which...

I think it means they either stick with the original unit which is in place that I posted a while back, or resubmit with additional info explaining why the new application should be approved. The applied unit is smaller than the original one possibly because of the fault but also maybe someone else has the other area below? If the later and that is now resolved it should progress and clear the way for the permit for the well.
There may be more to consider but this is my take on what I can see at this time. Hope this is helpful but it is only my opinion
Bw