Chapter 788 Oregon Laws 2001

 

AN ACT

 

SB 644

 

Relating to water rights; creating new provisions; amending ORS 536.750, 536.770, 536.900, 540.523, 540.570, 540.580 and 540.990; and declaring an emergency.

 

Be It Enacted by the People of the State of Oregon:

 

          SECTION 1. ORS 536.750 is amended to read:

          536.750. (1) Notwithstanding any provision of ORS chapters 536 to 543A, after a declaration that a severe, continuing drought exists, the Water Resources Commission may:

          (a) Issue without first conducting a hearing under ORS 537.170, a temporary permit for an emergency use of water;

          (b) Allow a temporary change in use, place of use or point of diversion of water without complying with the notice and waiting requirements under ORS 540.520;

          (c) Notwithstanding the priority of water rights, grant preference of use to rights for human consumption or stock watering use;

          (d) Waive the notice requirements under ORS 537.753 and the report required under ORS 537.762; [and]

          (e) Allow a temporary exchange of water without giving notice as required under ORS 540.535; and

          (f) Utilize an expedited notice and waiting requirement established by rule for the substitution of a supplemental ground water right for a primary water right under drought conditions in place of the notice and waiting requirement provided in ORS 540.524.

          (2) The commission by rule may establish procedures for carrying out the provisions of this section and a schedule of fees that must accompany a request under subsection (1) of this section.

 

          SECTION 2. ORS 536.770 is amended to read:

          536.770. (1) The Water Resources Commission[,] or a local government, [or] public corporation or water right holder may purchase an option or enter an agreement to use an existing permit or water right[, for the purpose of distribution for any beneficial use] during the time in which a severe, continuing drought is declared to exist.

          (2) A local government, public corporation or water right holder proposing to purchase an option or enter an agreement under this section shall submit to the commission an application accompanied by the fee required under ORS 536.050 (1)(a).

          (3) After approval of the application by the commission, the [The commission, local government or public corporation holding such an] option or agreement user:

          (a) Is not required to construct any diversion or appropriation facilities or works;

          (b) May use the water acquired under the option or agreement on property or for a use different than allowed in the permit or water right transferred under the option or agreement, if the water is used to replace water not available to the local government, [or] public corporation or water right holder because of the drought; and

          (c) May begin use at any time after approval by the commission so long as the total use by the water right or permit holder and the option or agreement user is within the rate, volume and seasonal limits of the permit or water right.

          [(2) The local government or public corporation proposing the option or agreement shall submit to the commission an application accompanied by the fee required under ORS 536.050 (1)(a).]

 

          SECTION 3. ORS 540.523 is amended to read:

          540.523. (1) In accordance with the provisions of this section, any person who holds a water use subject to transfer may request that the Water Resources Department approve, for a period not to exceed five years:

          (a) The temporary transfer of place of use and, if necessary to convey water to the new temporary place of use, temporarily change the point of diversion or point of appropriation [for a period not to exceed five years]; and

          (b) The temporary transfer of the type of use identified in a right to store water.

          (2) An application for a temporary transfer shall:

          (a) Be submitted in writing to the Water Resources Department;

          (b) Be accompanied by the appropriate fee for a change in the place of use as set forth in ORS 536.050;

          (c) Include the information required under ORS 540.520 (2); and

          (d) Include any other information the Water Resources Commission by rule may require.

          [(2)] (3) Notwithstanding the notice and waiting requirements under ORS 540.520, the department shall approve by order a request for a temporary transfer under this section if the department determines that the temporary transfer will not injure any existing water right.

          [(3)] (4) All uses of water for which a temporary transfer is allowed under this section shall revert automatically to the terms and conditions of the water use subject to transfer upon expiration of the temporary transfer period.

          [(4)] (5) The time during which water is used or stored under an approved temporary transfer order [shall] does not apply toward a finding of forfeiture under ORS 540.610.

          [(5)] (6) The department may revoke a prior approval of the temporary transfer at any time if the department finds that the transfer is causing injury to any existing water right.

          [(6)] (7) Any map that may be required under subsection [(1)] (2) of this section need not be prepared by a certified water right examiner.

          [(7)] (8) The lands from which the water right is removed during the period of a temporary transfer shall receive no water under the transferred water right.

          [(8)] (9) When an application for a temporary change of the place of use for a primary water right is submitted in accordance with this section, the applicant also shall indicate whether the land described in the application has an appurtenant supplemental water right or permit. If the applicant also intends to temporarily transfer the supplemental water right or permit, the applicant also shall include the information required under ORS 540.520 (2) for the supplemental water right or permit. If the applicant does not include the supplemental water right or permit in the temporary transfer application, the Water Resources Department shall notify the applicant that the supplemental water right or permit will be canceled before the department issues the order approving the temporary transfer of the primary water right, unless within 30 days the applicant modifies the application to include the supplemental water right or permit or withdraws the application. The department may approve the temporary transfer of the supplemental water right or permit in accordance with the provisions of this section. The department [shall] may not approve the temporary transfer of a supplemental water right or permit if the temporary transfer would result in enlargement of the original water right or injury to an existing water right. If the department approves the temporary transfer of the primary water right but does not approve the temporary transfer of the supplemental water right or permit, the department shall notify the applicant of the department’s intent not to allow the temporary transfer of the supplemental water right or permit before the department issues the order for the temporary transfer of the primary water right. If the department does not allow the temporary transfer of the supplemental right, the supplemental right shall remain appurtenant to the land described in the application, but may not be exercised until the primary right reverts to the original water use. If the primary water right does not revert soon enough to allow use of water under the supplemental right within five years, the supplemental right shall become subject to cancellation for nonuse under ORS 540.610.

          [(9)] (10) In issuing an order under subsection [(2)] (3) of this section, the department shall include any condition necessary to protect other water rights.

 

          SECTION 4. ORS 540.570 is amended to read:

          540.570. (1) [Upon compliance with subsection (2) of this section,] Provided that the proposed transfer complies with all of the provisions of this subsection and will not result in injury to any existing water right, a district with a manager may, for one irrigation season, temporarily transfer the place of use of water appurtenant to any land within the legal boundaries of the district[,] to an equal acreage elsewhere within the legal boundaries of that district or temporarily transfer the type of use identified in a right to store water. A temporary transfer of the place of use may occur if:

          (a) The rate and duty, and the total number of acres to which water will be applied under the transfer, do not exceed existing limits on the water use subject to transfer;

          (b) The type of use authorized under the water use subject to transfer remains the same; and

          (c) The land from which the water use is being transferred does not receive any water under the right being transferred during the irrigation season in which the change is made.

          (2) When a district or an owner or an owner’s agent within a district who is subject to the charges or assessments of the district wishes to use water on alternate acreage within the district, if the district has approved the owner’s request, the district shall [notify the Water Resources Department of that intent at least 60 days before the beginning of irrigation deliveries for the season or March 1, whichever is earlier. The notice shall contain a statement that each landowner affected by a temporary transfer has authorized the transfer in a writing on file with the district.]

          [(3) The department may deny the request to use water on the alternate acreage if such use would interfere with existing water rights or result in enlargement of the water right. If the department fails to deny the request to use water on alternate acreage within 60 days after receipt of the request, the department’s approval shall be considered to have been granted.]

          [(4) The Water Resources Commission by rule may require that a district maintain or submit documentary evidence, including maps, of the lands from which and to which water is to be applied temporarily under this section.]

          [(5) A temporary transfer may be approved under this section for a period not to exceed five years.] submit to the Water Resources Department a petition seeking a temporary transfer under this section. The district shall submit the petition prior to making the proposed change. The petition may contain changes to one or more tax lots within the district and shall:

          (a) Include the information required under ORS 540.574 (3);

          (b) Be accompanied by a map in a form satisfactory to the department and certified by the district. If the water right is on a tract of land of five acres or less, the assessor’s tax map with a notation of the acres of water right shall be sufficient for identification of the tract and place of use;

          (c) Include a statement that a written authorization for the transfer from each landowner affected by the particular temporary transfer is on file with the district;

          (d) Include any other information required by rules of the Water Resources Commission; and

          (e) Include a fee in the amount required under ORS 536.050 (1)(i).

          (3) The district shall notify each affected landowner that the department may reject the transfer or may require mitigation to avoid injury to other water rights. Upon receipt of a completed petition under subsection (2) of this section, the department shall place a summary of the petition in the weekly notice published by the department. The department shall accept written public comments on the petition following publication of the weekly notice. The department shall consider comments that pertain to the potential for injury to an existing water right or to the enlargement of the water use subject to transfer in determining whether to condition, reject or revoke a temporary transfer.

          (4) Use of water on lands from which the right is transferred and in the new temporary location during the same irrigation season or calendar year is prohibited and may subject the district and the landowner to civil penalties.

          [(6)] (5) The department may condition, reject or revoke a temporary transfer at any time to the extent necessary to avoid injury if the department finds the transfer is causing injury to an existing water right.

          [(7)] (6) Upon expiration of the temporary transfer period, all uses of water for which a temporary transfer is allowed under this section shall revert automatically to the terms and conditions of the original water right permit, certificate or [an] adjudication [proceeding] under ORS chapter 539 as evidenced by a court decree.

          [(8)] (7) The time during which water is used under an approved temporary transfer order [shall] does not apply toward a finding of forfeiture under ORS 540.610.

 

          SECTION 5. ORS 540.580 is amended to read:

          540.580. (1) In accordance with this section, a district may by petition request that the Water Resources Department approve the permanent transfer of the place of use of water within a district[, so] as long as the proposed transfer complies with all of the following:

          (a) The rate, duty and total number of acres to which water is to be applied under the water use subject to transfer are not exceeded;

          (b) The use authorized under the water use subject to transfer remains the same;

          (c) The change in place of use will not result in injury to any existing water right; and

          (d) The land from which the water right is removed by the transfer shall receive no water under the transferred right.

          (2) A district [may submit a petition for a permanent transfer] electing to petition the department under subsection (1) of this section shall file a petition prior to or subsequent to the change in place of use, but no later than the end of the calendar year in which the change occurs. The petition submitted by the district may include an unlimited number of transfers within the same petition. A petition under this section shall:

          (a) Include the information required under ORS 540.574 (3), except for the statement that a notice under ORS 540.572 (2) has been given;

          (b) Be accompanied by a map in a form satisfactory to the department and certified by the district. If the water right is on a tract of land of five acres or less, the assessor’s tax map with a notation of the acres of water right shall be sufficient for identification of the tract and place of use;

          (c) Include a statement that each landowner affected by a permanent transfer has authorized the transfer in [a] writing that is on file with the district;

          (d) Include any other information required by rules of the Water Resources Commission; and

          (e) Include the fee required under ORS 536.050 (1)(h) for a change in the place of use.

          (3) If a district allows a change in the place of use of water before obtaining the approval of the department, the district shall:

          (a) Notify each affected landowner that the change is subject to the approval of the department and that the department may reject the transfer or may require mitigation to avoid injury to other water right holders; [and]

          (b) Notify the department in advance of the change. The notice shall include:

          (A) The name of the district and the certificate number of each water right that is the subject of the change;

          (B) The names of the users within the district from whose lands and to whose lands water rights are to be transferred;

          (C) A general description of the users’ lands by township, range, quarter quarter section and tax lot number, and of the water right, for each parcel from which and to which water rights are to be transferred; and

          (D) A description of the use that is proposed to be made of the water on each parcel; and

          (c) File a petition with the department, as provided under subsection (2) of this section.

          (4) Upon receipt of the notice required under subsection (3)(b) of this section, the department shall provide public notice in the weekly notice published by the department.

          (5) If a district allows a change in the place of use of water before obtaining approval of the department under this section, the department may direct the district to cease delivery of water or mitigate injury where the change in place of use is causing injury to an existing water right.

          (6) Within 15 days after the filing of a petition under subsection (2) of this section, the department shall include notice of the petition in the weekly notice published by the department. Within 30 days after the mailing of the department’s weekly notice, any potentially affected holder of an existing water right may file, jointly or severally, with the department, a protest against approval of the petition.

          (7) Subject to the provisions of subsection (8) of this section, whenever a timely protest is filed, or in the opinion of the Water Resources Director a hearing is necessary to determine whether the proposed changes as described in the petition would result in injury to existing water rights, the department may hold a hearing on the petition. Notice and conduct of the hearing shall be according to the provisions of ORS 183.310 to 183.550 pertaining to contested cases, shall be scheduled within 45 days after the filing of the petition, and shall be held in the area where the rights are located unless all parties and persons who filed a protest under this subsection stipulate otherwise.

          (8) If a water user within the district files a protest claiming injury to a water right delivery by the district, no contested case hearing shall be required, but the district shall resolve the matter directly with the water user.

          (9) After examination or hearing, the department shall issue an order approving the transfer if the proposed change can be effected without injury to existing water rights. If no hearing is scheduled under subsection (7) of this section, the order of the department shall be issued within 90 days after the date of the filing of the petition. If the proposed change cannot be effected without injury to existing water rights, the department may condition approval, including requiring mitigation of the effects on other water rights, to the extent necessary to avoid injury. If a hearing is scheduled, the department shall issue a final order within 120 days after scheduling the hearing.

          (10) Within 20 days after the director issues a final order under this section, the district or any protestant may file with the commission exceptions to the final order. The commission shall issue an order granting or denying the exceptions within 30 days after receiving the exceptions.

          (11) If a certificate covering the water right has been previously issued, the department may amend the certificate or may cancel the certificate and issue a new certificate preserving the previously established priority of rights and covering the authorized changes. If only a portion of the water right covered by the previous certificate is affected by the changes, a separate new certificate may be issued to cover the unaffected portion of the water right. A certificate as amended or issued under this section has the evidentiary effect provided for in ORS 537.270 as to the new lands except when the right to appropriate water described in the certificate is abandoned after the certificate is amended or issued.

          (12) Notwithstanding the provisions of subsection (2) of this section, a petition filed on or before December 31, 1996, may include all changes in place of use allowed by a district after July 1, 1992, and before November 30, 1996.

 

          SECTION 6. ORS 536.900 is amended to read:

          536.900. (1) In addition to any other liability or penalty provided by law, the Water Resources Commission may impose a civil penalty on a person for any of the following:

          (a) Violation of any of the terms or conditions of a permit, certificate or license issued under ORS chapters 536 to 543A.

          (b) Violation of ORS 537.130 or 537.535.

          (c) Violation of any rule or order of the Water Resources Commission that pertains to well maintenance.

          (d) Violation of ORS 540.045, 540.145, 540.210, 540.310, 540.320, 540.330, 540.340, 540.435, 540.440, 540.570 (4), 540.580 (3), 540.710, 540.720 and 540.730 or rules adopted under ORS 540.145.

          (2) A civil penalty may be imposed under this section for each day of violation of ORS 537.130, 537.535, 540.045, 540.310, 540.330, 540.570 (4), 540.710, 540.720 or 540.730.

          (3) In the event the petitioner knowingly misrepresents the map and petition required in ORS 541.329, the commission may assess a penalty of up to $1,000 based upon guidelines to be established by the commission. In addition, the petition and map shall be amended to correct the error at the petitioner’s cost. Affected users shall be given notice as provided in ORS 541.329 (5).

          (4) A civil penalty may not be imposed until the commission prescribes a reasonable time to eliminate the violation. The commission shall notify the violator of the time allowed to correct a violation within five days after the commission first becomes aware of the violation.

          (5) Notwithstanding any term or condition of a permit, certificate or license, the rotation of the use of water under ORS 540.150 [shall] may not be considered a violation under subsection (1) of this section.

 

          SECTION 7. ORS 540.990 is amended to read:

          540.990. (1) Violation of any provision of ORS 540.440 is punishable, upon conviction, by a fine of not less than $25 nor more than $150, together with the costs and disbursements of the action, and in default of the payment of the fine and costs, by confinement in the county jail one day for each $2 thereof. Justice courts shall have concurrent jurisdiction with the circuit courts in the trial of all proceedings under this subsection.

          (2) Violation of any provision of ORS 540.570 (4), 540.710, 540.720 or 540.730, or 540.370 (2), is punishable, upon conviction, by a fine of not less than $10 nor more than $250, or by imprisonment in the county jail for not more than six months, or both. Justice courts shall have concurrent jurisdiction with the circuit courts in the trial of all violations under this subsection.

 

          SECTION 8. The amendments to ORS 536.900, 540.523, 540.570, 540.580 and 540.990 by sections 3 to 7 of this 2001 Act apply to petitions for transfers of water use subject to transfer submitted on or after the effective date of this 2001 Act.

 

          SECTION 9. ORS 540.523, as amended by section 3 of this 2001 Act, is amended to read:

          540.523. (1) In accordance with the provisions of this section, any person who holds a water use subject to transfer may request that the Water Resources Department approve[, for a period not to exceed five years:]

          [(a)] the temporary transfer of place of use and, if necessary to convey water to the new temporary place of use, temporarily change the point of diversion or point of appropriation for a period not to exceed five years[; and]

          [(b) The temporary transfer of the type of use identified in a right to store water].

          [(2)] An application for a temporary transfer shall:

          (a) Be submitted in writing to the Water Resources Department;

          (b) Be accompanied by the appropriate fee for a change in the place of use as set forth in ORS 536.050;

          (c) Include the information required under ORS 540.520 (2); and

          (d) Include any other information the Water Resources Commission by rule may require.

          [(3)] (2) Notwithstanding the notice and waiting requirements under ORS 540.520, the department shall approve by order a request for a temporary transfer under this section if the department determines that the temporary transfer will not injure any existing water right.

          [(4)] (3) All uses of water for which a temporary transfer is allowed under this section shall revert automatically to the terms and conditions of the water use subject to transfer upon expiration of the temporary transfer period.

          [(5)] (4) The time during which water is used [or stored] under an approved temporary transfer order does not apply toward a finding of forfeiture under ORS 540.610.

          [(6)] (5) The department may revoke a prior approval of the temporary transfer at any time if the department finds that the transfer is causing injury to any existing water right.

          [(7)] (6) Any map that may be required under subsection [(2)] (1) of this section need not be prepared by a certified water right examiner.

          [(8)] (7) The lands from which the water right is removed during the period of a temporary transfer shall receive no water under the transferred water right.

          [(9)] (8) When an application for a temporary change of the place of use for a primary water right is submitted in accordance with this section, the applicant also shall indicate whether the land described in the application has an appurtenant supplemental water right or permit. If the applicant also intends to temporarily transfer the supplemental water right or permit, the applicant also shall include the information required under ORS 540.520 (2) for the supplemental water right or permit. If the applicant does not include the supplemental water right or permit in the temporary transfer application, the Water Resources Department shall notify the applicant that the supplemental water right or permit will be canceled before the department issues the order approving the temporary transfer of the primary water right, unless within 30 days the applicant modifies the application to include the supplemental water right or permit or withdraws the application. The department may approve the temporary transfer of the supplemental water right or permit in accordance with the provisions of this section. The department may not approve the temporary transfer of a supplemental water right or permit if the temporary transfer would result in enlargement of the original water right or injury to an existing water right. If the department approves the temporary transfer of the primary water right but does not approve the temporary transfer of the supplemental water right or permit, the department shall notify the applicant of the department’s intent not to allow the temporary transfer of the supplemental water right or permit before the department issues the order for the temporary transfer of the primary water right. If the department does not allow the temporary transfer of the supplemental right, the supplemental right shall remain appurtenant to the land described in the application, but may not be exercised until the primary right reverts to the original water use. If the primary water right does not revert soon enough to allow use of water under the supplemental right within five years, the supplemental right shall become subject to cancellation for nonuse under ORS 540.610.

          [(10)] (9) In issuing an order under subsection [(3)] (2) of this section, the department shall include any condition necessary to protect other water rights.

 

          SECTION 10. ORS 540.570, as amended by section 4 of this 2001 Act, is amended to read:

          540.570. (1) Upon compliance with subsection (2) of this section, [Provided that the proposed transfer complies with all of the provisions of this subsection and will not result in injury to any existing water right,] a district [with a manager] may[, for one irrigation season,] temporarily transfer the place of use of water appurtenant to any land within the legal boundaries of the district, to an equal acreage elsewhere within the legal boundaries of that district [or temporarily transfer the type of use identified in a right to store water. A temporary transfer of the place of use may occur if:]

          [(a) The rate and duty, and the total number of acres to which water will be applied under the transfer, do not exceed existing limits on the water use subject to transfer;]

          [(b) The type of use authorized under the water use subject to transfer remains the same; and]

          [(c) The land from which the water use is being transferred does not receive any water under the right being transferred during the irrigation season in which the change is made].

          (2) When a district or an owner or an owner’s agent within a district who is subject to the charges or assessments of the district wishes to use water on alternate acreage within the district, if the district has approved the owner’s request, the district shall notify the Water Resources Department of that intent at least 60 days before the beginning of irrigation deliveries for the season or March 1, whichever is earlier. The notice shall contain a statement that each landowner affected by a temporary transfer has authorized the transfer in a writing on file with the district.

          (3) The department may deny the request to use water on the alternate acreage if such use would interfere with existing water rights or result in enlargement of the water right. If the department fails to deny the request to use water on alternate acreage within 60 days after receipt of the request, the department’s approval shall be considered to have been granted.

          (4) The Water Resources Commission by rule may require that a district maintain or submit documentary evidence, including maps, of the lands from which and to which water is to be applied temporarily under this section.

          (5) A temporary transfer may be approved under this section for a period not to exceed five years. [submit to the Water Resources Department a petition seeking a temporary transfer under this section. The district shall submit the petition prior to making the proposed change. The petition may contain changes to one or more tax lots within the district and shall:]

          [(a) Include the information required under ORS 540.574 (3);]

          [(b) Be accompanied by a map in a form satisfactory to the department and certified by the district. If the water right is on a tract of land of five acres or less, the assessor’s tax map with a notation of the acres of water right shall be sufficient for identification of the tract and place of use;]

          [(c) Include a statement that a written authorization for the transfer from each landowner affected by the particular temporary transfer is on file with the district;]

          [(d) Include any other information required by rules of the Water Resources Commission; and]

          [(e) Include a fee in the amount required under ORS 536.050 (1)(i).]

          [(3) The district shall notify each affected landowner that the department may reject the transfer or may require mitigation to avoid injury to other water rights. Upon receipt of a completed petition under subsection (2) of this section, the department shall place a summary of the petition in the weekly notice published by the department. The department shall accept written public comments on the petition following publication of the weekly notice. The department shall consider comments that pertain to the potential for injury to an existing water right or to the enlargement of the water use subject to transfer in determining whether to condition, reject or revoke a temporary transfer.]

          [(4) Use of water on lands from which the right is transferred and in the new temporary location during the same irrigation season or calendar year is prohibited and may subject the district and the landowner to civil penalties.]

          [(5)] (6) The department may condition[, reject] or revoke a temporary transfer at any time to the extent necessary to avoid injury if the department finds the transfer is causing injury to an existing water right.

          [(6)] (7) Upon expiration of the temporary transfer period, all uses of water for which a temporary transfer is allowed under this section shall revert automatically to the terms and conditions of the original water right permit, certificate or an adjudication proceeding under ORS chapter 539 as evidenced by a court decree.

          [(7)] (8) The time during which water is used under an approved temporary transfer order does not apply toward a finding of forfeiture under ORS 540.610.

 

          SECTION 11. ORS 540.580, as amended by section 5 of this 2001 Act, is amended to read:

          540.580. (1) In accordance with this section, a district may by petition request that the Water Resources Department approve the permanent transfer of the place of use of water within a district as long as the proposed transfer complies with all of the following:

          (a) The rate, duty and total number of acres to which water is to be applied under the water use subject to transfer are not exceeded;

          (b) The use authorized under the water use subject to transfer remains the same;

          (c) The change in place of use will not result in injury to any existing water right; and

          (d) The land from which the water right is removed by the transfer shall receive no water under the transferred right.

          (2) A district [electing to petition the department under subsection (1) of this section shall file a petition] may submit a petition for a permanent transfer prior to or subsequent to the change in place of use, but no later than the end of the calendar year in which the change occurs. The petition submitted by the district may include an unlimited number of transfers within the same petition. A petition under this section shall:

          (a) Include the information required under ORS 540.574 (3), except for the statement that a notice under ORS 540.572 (2) has been given;

          (b) Be accompanied by a map in a form satisfactory to the department and certified by the district. If the water right is on a tract of land of five acres or less, the assessor’s tax map with a notation of the acres of water right shall be sufficient for identification of the tract and place of use;

          (c) Include a statement that each landowner affected by a permanent transfer has authorized the transfer in a writing that is on file with the district;

          (d) Include any other information required by rules of the Water Resources Commission; and

          (e) Include the fee required under ORS 536.050 (1)(h) for a change in the place of use.

          (3) If a district allows a change in the place of use of water before obtaining the approval of the department, the district shall:

          (a) Notify each affected landowner that the change is subject to the approval of the department and that the department may reject the transfer or may require mitigation to avoid injury to other water right holders; and

          (b) Notify the department in advance of the change. The notice shall include:

          (A) The name of the district and the certificate number of each water right that is the subject of the change;

          (B) The names of the users within the district from whose lands and to whose lands water rights are to be transferred;

          (C) A general description of the users’ lands by township, range, quarter quarter section and tax lot number, and of the water right, for each parcel from which and to which water rights are to be transferred; and

          (D) A description of the use that is proposed to be made of the water on each parcel[; and]

          [(c) File a petition with the department, as provided under subsection (2) of this section].

          (4) Upon receipt of the notice required under subsection (3)(b) of this section, the department shall provide public notice in the weekly notice published by the department.

          (5) If a district allows a change in the place of use of water before obtaining approval of the department under this section, the department may direct the district to cease delivery of water or mitigate injury where the change in place of use is causing injury to an existing water right.

          (6) Within 15 days after the filing of a petition under subsection (2) of this section, the department shall include notice of the petition in the weekly notice published by the department. Within 30 days after the mailing of the department’s weekly notice, any potentially affected holder of an existing water right may file, jointly or severally, with the department, a protest against approval of the petition.

          (7) Subject to the provisions of subsection (8) of this section, whenever a timely protest is filed, or in the opinion of the Water Resources Director a hearing is necessary to determine whether the proposed changes as described in the petition would result in injury to existing water rights, the department may hold a hearing on the petition. Notice and conduct of the hearing shall be according to the provisions of ORS 183.310 to 183.550 pertaining to contested cases, shall be scheduled within 45 days after the filing of the petition, and shall be held in the area where the rights are located unless all parties and persons who filed a protest under this subsection stipulate otherwise.

          (8) If a water user within the district files a protest claiming injury to a water right delivery by the district, no contested case hearing shall be required, but the district shall resolve the matter directly with the water user.

          (9) After examination or hearing, the department shall issue an order approving the transfer if the proposed change can be effected without injury to existing water rights. If no hearing is scheduled under subsection (7) of this section, the order of the department shall be issued within 90 days after the date of the filing of the petition. If the proposed change cannot be effected without injury to existing water rights, the department may condition approval, including requiring mitigation of the effects on other water rights, to the extent necessary to avoid injury. If a hearing is scheduled, the department shall issue a final order within 120 days after scheduling the hearing.

          (10) Within 20 days after the director issues a final order under this section, the district or any protestant may file with the commission exceptions to the final order. The commission shall issue an order granting or denying the exceptions within 30 days after receiving the exceptions.

          (11) If a certificate covering the water right has been previously issued, the department may amend the certificate or may cancel the certificate and issue a new certificate preserving the previously established priority of rights and covering the authorized changes. If only a portion of the water right covered by the previous certificate is affected by the changes, a separate new certificate may be issued to cover the unaffected portion of the water right. A certificate as amended or issued under this section has the evidentiary effect provided for in ORS 537.270 as to the new lands except when the right to appropriate water described in the certificate is abandoned after the certificate is amended or issued.

          (12) Notwithstanding the provisions of subsection (2) of this section, a petition filed on or before December 31, 1996, may include all changes in place of use allowed by a district after July 1, 1992, and before November 30, 1996.

 

          SECTION 12. ORS 536.900, as amended by section 6 of this 2001 Act, is amended to read:

          536.900. (1) In addition to any other liability or penalty provided by law, the Water Resources Commission may impose a civil penalty on a person for any of the following:

          (a) Violation of any of the terms or conditions of a permit, certificate or license issued under ORS chapters 536 to 543A.

          (b) Violation of ORS 537.130 or 537.535.

          (c) Violation of any rule or order of the Water Resources Commission that pertains to well maintenance.

          (d) Violation of ORS 540.045, 540.145, 540.210, 540.310, 540.320, 540.330, 540.340, 540.435, 540.440, [540.570 (4), 540.580 (3),] 540.710, 540.720 and 540.730 or rules adopted under ORS 540.145.

          (2) A civil penalty may be imposed under this section for each day of violation of ORS 537.130, 537.535, 540.045, 540.310, 540.330, [540.570 (4),] 540.710, 540.720 or 540.730.

          (3) In the event the petitioner knowingly misrepresents the map and petition required in ORS 541.329, the commission may assess a penalty of up to $1,000 based upon guidelines to be established by the commission. In addition, the petition and map shall be amended to correct the error at the petitioner’s cost. Affected users shall be given notice as provided in ORS 541.329 (5).

          (4) A civil penalty may not be imposed until the commission prescribes a reasonable time to eliminate the violation. The commission shall notify the violator of the time allowed to correct a violation within five days after the commission first becomes aware of the violation.

          (5) Notwithstanding any term or condition of a permit, certificate or license, the rotation of the use of water under ORS 540.150 may not be considered a violation under subsection (1) of this section.

 

          SECTION 13. ORS 540.990, as amended by section 7 of this 2001 Act, is amended to read:

          540.990. (1) Violation of any provision of ORS 540.440 is punishable, upon conviction, by a fine of not less than $25 nor more than $150, together with the costs and disbursements of the action, and in default of the payment of the fine and costs, by confinement in the county jail one day for each $2 thereof. Justice courts shall have concurrent jurisdiction with the circuit courts in the trial of all proceedings under this subsection.

          (2) Violation of any provision of ORS [540.570 (4),] 540.710, 540.720 or 540.730, or 540.370 (2), is punishable, upon conviction, by a fine of not less than $10 nor more than $250, or by imprisonment in the county jail for not more than six months, or both. Justice courts shall have concurrent jurisdiction with the circuit courts in the trial of all violations under this subsection.

 

          SECTION 14. The amendments to ORS 536.900, 540.523, 540.570, 540.580 and 540.990 by sections 9 to 13 of this 2001 Act become operative July 1, 2005.

 

          SECTION 15. The amendments to ORS 536.900, 540.523, 540.570, 540.580 and 540.990 by sections 9 to 13 of this 2001 Act apply to petitions for transfers of water use subject to transfer submitted on or after July 1, 2005.

 

          SECTION 16. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

 

Approved by the Governor July 18, 2001

 

Filed in the office of Secretary of State July 18, 2001

 

Effective date July 18, 2001

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