Usa Oregon

USA Statutes : oregon
Title : TITLE 44 FORESTRY AND FOREST PRODUCTS
Chapter : Chapter 541 Watershed Enhancement and Protection; Water Development Projects; Miscellaneous Provisions on Water Rights; Stew
(1) The use of the water of the
lakes and running streams of Oregon, for general rental, sale or
distribution, for purposes of irrigation, and supplying water for
household and domestic consumption, and watering livestock upon dry lands
of the state, is a public use, and the right to collect rates or
compensation for such use of water is a franchise. A use shall be deemed
general within the purview of this section when the water appropriated is
supplied to all persons whose lands lie adjacent to or within reach of
the line of the ditch, canal or flume in which the water is conveyed,
without discrimination other than priority of contract, upon payment of
charges therefor, as long as there may be water to supply.

(2) Rates for the uses of water mentioned in this section may be
fixed by the Legislative Assembly or by such officer as may be given that
authority by the Legislative Assembly, but rates shall not be fixed lower
than will allow the net profits of any ditch, canal, flume or system
thereof to equal the prevailing legal rate of interest on the amount of
money actually paid in and employed in the construction and operation of
the ditch, canal, flume or system.

(3) This section and ORS 541.020 to 541.080 may at any time be
amended by the Legislative Assembly, and commissioners for the management
of water rights and the use of water may be appointed.Whenever any corporation organized under the Act of 1891,
pages 52 to 60, Oregon Laws 1891, finds it necessary to construct its
ditch, canal, flume, distributing ditches, or feeders across the improved
or occupied lands of another, it shall select the shortest and most
direct route practicable, having reference to cost of construction upon
which the ditch, canal, flume, distributing ditches, or feeders can be
constructed with uniform or nearly uniform grade.The right of way, to the extent specified in the Act of 1891, pages
52 to 60, Oregon Laws 1891, for the ditches, canals, flumes, distributing
ditches, and feeders of any corporation appropriating water under the
provisions of the Act of 1891, across all lands belonging to the State of
Oregon and not under contract of sale, is granted. Every corporation having
constructed a ditch, canal or flume under the provisions of the Act of
1891, pages 52 to 60, Oregon Laws 1891, shall erect and keep in good
repair a headgate at the head of its ditch, canal or flume, which,
together with the necessary embankments, shall be of sufficient height
and strength to control the water at all ordinary stages. The framework
of the headgate shall be of timber not less than four inches square, and
the bottom, sides and gate shall be of plank not less than two inches in
thickness. Every
corporation having constructed a ditch, canal, flume or reservoir under
the provisions of the Act of 1891, pages 52 to 60, Oregon Laws 1891,
shall be liable for all damages done to the persons or property of
others, arising from leakage or overflow of water therefrom growing out
of want of strength in the banks or walls, or negligence or want of care
in the management of the ditch, canal, flume or reservoir. However,
damage resulting from extraordinary and unforeseen action of the
elements, or attributable in whole or in part to the wrongful
interference of another with the ditch, canal, flume or reservoir, which
may not be known to the corporation for such length of time as would
enable it by the exercise of reasonable efforts to remedy the same, shall
not be recovered against the corporation.(1) Any person
or irrigation, drainage, water improvement or water control district
organized pursuant to ORS chapter 545, 547, 552, 553 or 554 that owns,
operates or maintains any irrigation, drainage, water supply, water
control or flood control works shall be liable for damage caused by
seepage and leakage from such works only to the extent that such damage
is directly and proximately caused by the negligence of the person or
irrigation, drainage, water improvement or water control district
organized pursuant to ORS chapter 545, 547, 552, 553 or 554 and not
otherwise. Damage resulting from extraordinary and unforeseen action of
the elements, or attributable in whole or in part to the wrongful
interference of another person or irrigation, drainage, water improvement
or water control district organized pursuant to ORS chapter 545, 547,
552, 553 or 554 with the irrigation, drainage, water supply, water
control or flood control works, which may not be known to the person or
irrigation, drainage, water improvement or water control district
organized pursuant to ORS chapter 545, 547, 552, 553 or 554 for such
length of time as would enable the person or irrigation, drainage, water
improvement or water control district organized pursuant to ORS chapter
545, 547, 552, 553 or 554 by the exercise of reasonable efforts to remedy
the same, shall not be recovered against the person or irrigation,
drainage, water improvement or water control district organized pursuant
to ORS chapter 545, 547, 552, 553 or 554.

(2) An action or suit under subsection (1) of this section must be
commenced within two years from the date when the damage is first
discovered or in the exercise of reasonable care should have been
discovered. However, in no event shall any such action or suit be
commenced more than four years from the date the damage actually
occurred. [1979 c.882 §1]
Every corporation having constructed a ditch, canal or flume under the
provisions of the Act of 1891, pages 52 to 60, Oregon Laws 1891, shall
carefully keep and maintain the embankments and walls thereof, and of any
reservoir constructed to be used in conjunction therewith, so as to
prevent the water from wasting and from flooding or damaging the premises
of others. The corporation shall not divert at any time any water for
which it has no actual use or demand. All ditches,
canals and flumes permanently affixed to the soil, constructed under the
provisions of the Act of 1891, pages 52 to 60, Oregon Laws 1891, are
declared to be real estate, and the same or any interest therein shall be
transferred by deed only, duly witnessed and acknowledged. The vendee of
the same, or any interest therein, at any stage shall succeed to all the
rights of the vendor, and shall be subject to the same liabilities during
ownership.In any suit commenced for the protection of rights to water
acquired under the provisions of the Act of 1891, pages 52 to 60, Oregon
Laws 1891, the plaintiff may make any or all persons who have diverted
water from the same stream or source parties to the suit, and the court
may in one decree determine the relative priorities and rights of all
parties to the suit. Any person claiming a right on the stream or source,
not made a party to the suit, may become such on application to the
court, when it is made to appear that the person is interested in the
result, and may have the right of the person determined. The court may at
any stage, on its own motion, require any persons having or claiming
rights to water on the stream or source, to be brought in and made
parties, when it appears that a complete determination of the issue
involved cannot be made without their presence.APPROPRIATION OF WATER FOR MINING AND ELECTRIC POWER UNDER 1899 ACTThe use of the water of the lakes and running streams of Oregon
for the purpose of developing the mineral resources of the state and to
furnish electric power for all purposes, is declared to be a public and
beneficial use and a public necessity. Subject to the provisions of the
Water Rights Act (as defined in ORS 537.010), the right to divert
unappropriated waters of any such lakes or streams for such public and
beneficial use is granted.No tract or
parcel of improved or occupied land in this state shall, without the
written consent of the owner, be subjected to the burden of two or more
ditches, canals, flumes or pipelines constructed under the Act of 1899,
pages 172 to 180, Oregon Laws 1899, for the purpose of conveying water
through the property, when the same object can be feasibly and
practically attained by uniting and conveying all the water necessary to
be conveyed through such property in one ditch, canal, flume or pipeline.
Any person having constructed a ditch, canal, flume or pipeline for the
purpose provided in the Act of 1899 shall allow any other person to
enlarge such ditch, canal, flume or pipeline, so as not to interfere with
the operations of the person owning the same, and to use such ditch,
canal, flume or pipeline in common with the person owning the same, upon
payment to such person of a reasonable proportion of the cost of
constructing and maintaining the ditch, canal, flume or pipeline. Such
persons shall be jointly liable to any person damaged. The
right of way to the extent specified in the Act of 1899, pages 172 to
180, Oregon Laws 1899, for the ditches, canals, flumes, pipelines,
distributing ditches, and feeders of any person appropriating water under
the provisions of that Act, across any and all lands belonging to the
State of Oregon and not under contract of sale, is granted.APPROPRIATION OF WATER BY THE UNITED STATESIn any stream system
where construction is contemplated by the United States under the Act of
Congress approved June 17, 1902, 32 Stat. 388 to 390, and known as the
Reclamation Act, the Water Resources Commission shall make a hydrographic
survey of the stream system, and shall deliver an abstract thereof
together with an abstract of all data necessary for the determination of
all rights for the use of the waters of such system, to the Attorney
General. The Attorney General, together with the district attorneys of
the districts affected by the stream system shall, at the request of the
Secretary of the Interior, enter suit on behalf of the State of Oregon,
in the name of the state, for the determination of all rights for the use
of the water, and shall diligently prosecute the same to a final
adjudication. [Amended by 1985 c.673 §101]No lands belonging to the
state, within the areas to be irrigated from work constructed or
controlled by the United States or its authorized agents, shall be sold
except in conformity with the classification of farm units by the United
States. The title of such land shall not pass from the state until the
applicant therefor has fully complied with the provisions of the laws of
the United States and the regulations thereunder concerning the
acquisition of the right to use water from such works, and shall produce
the evidence thereof duly issued. After the withdrawal of lands by the
United States for any irrigation project, no application for the purchase
of state lands within the limits of such withdrawal shall be accepted,
except under the conditions prescribed in this section. Any state lands
needed by the United States for irrigation works may, in the discretion
of the Department of State Lands, be conveyed to it without charge.
[Amended by 1967 c.79 §1]There is granted over all the unimproved lands now or
hereafter belonging to the state the necessary right of way for ditches,
canals, and reservoir sites for irrigation purposes constructed by
authority of the United States or otherwise. All conveyances of state
land made after May 18, 1905, shall contain a reservation of such right
of way and reservoir sites. Nothing in ORS
541.220 to 541.240 shall be construed as rescinding the cession by the
state to the United States of lands, as provided in chapter 5, Oregon
Laws 1905.SUITS FOR DETERMINATION OF WATER RIGHTS UNDER 1905 ACTIn any suit wherein the state is a party, for
determination of a right to the use of the waters of any stream system,
all who claim the right to use the waters shall be made parties. When any
such suit has been filed the court shall call upon the Water Resources
Commission to make or furnish a complete hydrographic survey of the
stream system as provided in ORS 541.220, in order to obtain all data
necessary to the determination of the rights involved. The disbursements
made in litigating the rights involved in the suit shall be taxed by the
court as in other equity suits. [Amended by 1985 c.673 §102]Upon the adjudication of the rights to the use of
the water of a stream system, a certified copy of the decree shall be
prepared by the clerk of the court, without charge, and filed in the
Water Resources Department. The decree shall declare, as to the water
right adjudged to each party, whether riparian or by appropriation, the
extent, the priority, amount, purpose, place of use, and, as to water
used for irrigation, the specific tracts of land to which it shall be
appurtenant, together with such other conditions as may be necessary to
define the right and its priority. [Amended by 1985 c.673 §103]DISTRICT WATER RIGHTS MAPPING As used in ORS
541.327 to 541.333:

(1) “District” means any district or corporation organized under
ORS chapter 545, 547, 552, 553 or 554 or any corporation, cooperative,
company or other association formed before 1917 for the purpose of
distributing water for irrigation purposes.

(2) “Owned” or “controlled” means ownership in fee, purchase on a
land sale contract, option to purchase or lease.

(3) “User” means an owner of land with an appurtenant water right
that is subject to assessment by a district and that would be altered by
the petition and map filed under ORS 541.329. [1989 c.1000 §1; 1993 c.818
§1]Note: 541.325 to 541.333 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 541 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.(1) If a district fails or refuses to act under
ORS 541.329 and 541.331, the owner of land with an appurtenant water
right within a district and subject to assessment by the district may
transfer the use or place of use of the water right on or before July 1,
1994, pursuant to ORS 541.333. An owner transferring the use or place of
use under this subsection shall comply with ORS 536.050.

(2) If the owners of land within a quarter quarter of a section in
a district agree as to the use and place of use of all water rights in
the quarter quarter of the section subject to assessment by the district,
the owners may jointly submit an application, without the fees required
under ORS 536.050, to the Water Resources Department to conform the
department’s records to the present usage within the quarter quarter of a
section. The application must be filed in accordance with ORS 541.333 on
or before July 1, 1994.

(3) The district or users within a district authorized to
participate in the process described under ORS 541.325 to 541.333 shall
be limited to those districts or users who have notified the department
on or before July 1, 1993, of their intention to submit a petition.

(4) Notwithstanding subsection (3) of this section, the Walla Walla
River Irrigation District, or its successor district formed under ORS
chapter 545 and created after July 1, 1994, may participate in the
process described under ORS 541.325 to 541.333 if the district notifies
the department on or before June 30, 2004. [1989 c.1000 §2; 1991 c.957
§12; 1993 c.818 §2; 1995 c.554 §5; 2003 c.691 §1]Note: See note under 541.325.(1) Pursuant to the requirements of subsection (2) of
this section, a district may petition the Water Resources Commission for
approval and acceptance of a district map indicating the location and use
of the water rights within the district or any part thereof. The petition
and map shall be in a form satisfactory to the commission and shall be
certified by the district rather than a certified water right examiner.
For a district that notifies the Water Resources Department under ORS
541.327 (4), the map must be submitted in an electronic format meeting
the standards set by the department. The petition and map may not expand
a water right of the district or its users beyond the total right of
record of the district. If the district has met the requirements of ORS
541.325 to 541.331 and after the opportunity for hearing under ORS
541.331, the commission shall instruct the director to issue a new
certificate to the district listing the requested locations and uses and
retaining the original priority date. If the commission denies the
petition, the commission shall hold a hearing on the denial. Notice and
conduct of the hearing shall be under the provisions of ORS chapter 183
pertaining to contested cases. The hearing shall be conducted in the area
where the right is located unless the parties and the persons who file
the protest under this section stipulate otherwise.

(2) The petition required under subsection (1) of this section
shall be submitted on or before July 1, 1994, or before June 30, 2010,
for a district notifying the department under ORS 541.327 (4), and shall
include:

(a) The name of the district and the certificate number of each
water right contained in the petition.

(b) The names of all users within the district whose lands are
included in the petition.

(c) A general description of the district boundaries.

(d) A general description of the users’ land and all water rights
per each parcel affected by the petition and the map. If the water right
is on a tract of land of five acres or less, a notation of the acres of
water right on the assessor’s tax map shall be sufficient for
identification of the place of use and the extent of use.

(e) A description of the use which is proposed to be made of the
water on each parcel.

(f) An affirmation by the petitioner that the map and petition are
accurate to the best of the petitioner’s knowledge.

(3) A petition submitted under this section shall contain no more
acres of land than the least of the following:

(a) The number of acres assessed by the district as of July 1, 1989;

(b) The number of acres assessed by the district as of July 1,
1993; or

(c) If a district notifies the department under ORS 541.327 (4),
the number of acres assessed by the district as of December 31, 2003.

(4) Before submitting a petition under subsection (2) of this
section, the district shall send a notice to the user of every parcel
whose right of record is to be altered, as evidenced by the district’s
records. This notice shall be sent to the last-known address for the user
with a return receipt requested. The notice shall include the number of
acre-feet of water or its equivalent, for which the user is being
assessed, a general description or tax lot of the land to which the water
is assigned, a description of the use and a request for confirmation that
the information in the notice is correct. Thirty days after the notice is
mailed, the district shall prepare a petition and map as described in
subsections (1) and (2) of this section. Payment for water by the user or
the user’s predecessor for a period of five years before the petition
shall create a rebuttable presumption that the number of acres billed and
paid by the user or the user’s predecessor is equal to the user’s water
right.

(5) Within 30 days after the commission issues a proposed order
regarding the petition, the district shall send notice to the users of
the district whose right of record is to be altered by the proposed
order. This notice shall be sent to the last-known address of the user
with a return receipt requested. The notice shall include the number of
acres of land, or its equivalent, for which the user is being assessed, a
general description or tax lot number of the land to which the water is
assigned and a description of the use. In addition to the notice of the
proposed order that the district sends to the users, the district shall
publish at the same time notice in a newspaper having general circulation
in the area in which the water rights are located for a period of at
least three weeks. Not less than one publication in each week shall be
made. The notice shall state:

(a) The number of acres of water right that each parcel shall
receive and the associated priority dates;

(b) That the proposed map and order are available for inspection at
the office of the district during normal business hours for a period of
60 days from the date of first publication;

(c) That not less than 60 days after the date of first publication,
the commission shall approve the petition and map and issue a final order
unless a protest is filed or the petition does not meet the requirements
of subsections (1) and (2) of this section; and

(d) That the user has the right to protest the proposed order and
map as described in ORS 541.331.

(6) If the commission returns a petition or map to a district for
correction, the commission may prescribe a deadline for the petitioner to
provide additional information or correct the petition or map. If the
petitioner fails to meet the deadline prescribed by the commission, the
commission may deny the petition. [1989 c.1000 §3; 1991 c.957 §13; 1993
c.818 §3; 2003 c.691 §2]Note: See note under 541.325.(1) Any user may file
with the Water Resources Department, within 60 days after the date of
first publication, under ORS 541.329, a protest against a proposed order
approving the petition. Whenever a timely protest is filed or in the
opinion of the Water Resources Director a hearing is necessary to
determine whether the district has met the requirements of ORS 541.325 to
541.333 or the proposed changes described in the proposed order would
result in injury to existing water rights, the department shall hold a
hearing on the matter. The hearing shall be conducted according to the
provisions of ORS chapter 183 applicable to contested cases. The hearing
shall be held in the area where the rights are located unless the parties
and the persons who filed the protest under this section stipulate
otherwise.

(2) If after examination or hearing, the department finds that the
district has met the requirements of ORS 541.325 to 541.331 and that the
changes described in the proposed order would not result in injury to
existing water rights, the department shall issue a final order approving
the petition and map as described in the proposed order. If a water right
certificate for the water right has been issued previously, the
department shall cancel the previous certificate and issue a new
certificate that conforms to the final order and map and retains the
original priority date.

(3) A certificate issued under this section shall have the
evidentiary effect provided for in ORS 537.270 except when the right to
appropriate water described in the certificate is abandoned after the
certificate is amended or issued.

(4) The department may approve for inclusion in a new certificate
under ORS 541.329 and this section only land which, on July 1, 1993, or,
if a district notifies the department under ORS 541.327 (4), on December
31, 2003, is:

(a) Land within the legal boundaries of the district as those
boundaries were originally described or as they may have been changed by
legally prescribed inclusion or exclusion proceedings.

(b) Land for which inclusion in the district has been requested
previously as prescribed by law.

(c) Land on which a previously perfected water right has been
applied beneficially and for which the user has been charged or assessed
by the district in at least one of the last five years and for which the
user is currently being charged or assessed. [1989 c.1000 §4; 1993 c.818
§4; 1995 c.554 §7; 1999 c.590 §1; 2003 c.691 §3]Note: See note under 541.325.(1) Whenever the owner of a water right
for irrigation, domestic use, stock water storage or other use, for any
reason desires to change the place of use, the point of diversion or the
use made of the water under ORS 541.327, an application shall be filed
with the Water Resources Department.

(2) The application required under subsection (1) of this section
shall include:

(a) The name of the owner;

(b) The previous use of the water;

(c) A description of the premises upon which the water is used;

(d) A description of the premises upon which it is proposed to use
the water;

(e) The use which is proposed to be made of the water;

(f) The reasons for making the proposed change;

(g) If the application is made under ORS 541.327 (1), evidence that
the water has been used within the past five years upon lands owned or
controlled by the owner of the water right;

(h) In the event the application is made pursuant to ORS 541.327
(2), evidence that the water has been used within the past five years in
the quarter quarter of a section; and

(i) The approval of the district in which the water right is
located.

(3) The description of the premises or mapping required under ORS
541.329 (2) shall not require a map prepared by a certified water right
examiner, but shall be in a form satisfactory to the Water Resources
Commission. 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.

(4) A certificate issued under this section has the evidentiary
effect provided for in ORS 537.270 except when the right to appropriate
water described in the certificate is abandoned after the certificate is
amended or issued. [1989 c.1000 §5; 1995 c.554 §8]Note: See note under 541.325.WATERSHED MANAGEMENT AND ENHANCEMENT(Generally) As used in ORS
541.351 to 541.415:

(1) “Adaptive management” means applying management or practices
over time and across the landscape to achieve site specific resource
goals using an integrated and science based approach that results in
changes over time in response to feedback or monitoring.

(2) “Associated uplands” includes those lands of a watershed that
are critical to the functioning and protection of a riparian area.

(3) “Board” means the Oregon Watershed Enhancement Board created
under ORS 541.360.

(4) “Capital expenditures” means direct expenses related to:

(a) Personal property of a nonexpendable nature including items
that are not consumed in the normal course of operations, can normally be
used more than once, have a useful life of more than two years and are
for use in the enforcement of fish and wildlife and habitat protection
laws and regulations; or

(b) Projects that restore, enhance or protect fish and wildlife
habitat, watershed functions, native salmonid populations or water
quality, including but not limited to:

(A) Expenses of assessment, research, design or other technical
requirements for the implementation of a project;

(B) The acquisition of determinate interests, including fee and
less than fee interests, in land or water in order to protect watershed
resources, including appraisal costs and other costs directly related to
such acquisitions;

(C) Development, construction or implementation of a project to
restore, enhance or protect water quality, a watershed, fish or wildlife,
or riparian or other habitat;

(D) Technical support directly related to the implementation of a
project; and

(E) Monitoring or evaluation activities necessary to determine the
actual effectiveness of a project.

(5) “Independent Multidisciplinary Science Team” means the
scientific team of recognized experts in fisheries, artificial
propagation, stream ecology, forestry, range, watershed and agricultural
management created under ORS 541.409.

(6) “Native” means indigenous to Oregon and not introduced.

(7) “Oregon Plan” means the guidance statement and framework
described in ORS 541.405.

(8) “Protect” or “protection” means to minimize or mitigate adverse
effects on salmonid and habitat to the maximum extent practicable given
the anticipated duration, geographic scope and primary purpose of
proposed activities.

(9) “Restore” or “restoration” means to take actions likely to
achieve sustainable population levels of native fish or wildlife and
their habitats.

(10) “Riparian area” means a zone of transition from an aquatic
ecosystem to a terrestrial ecosystem, dependent upon surface or
subsurface water, that reveals through the zone’s existing or potential
soil-vegetation complex the influence of such surface or subsurface
water. A riparian area may be located adjacent to a lake, reservoir,
estuary, pothole, spring, bog, wet meadow, muskeg or ephemeral,
intermittent or perennial stream.

(11) “Soil and water conservation district” means a political
subdivision of the state as described in ORS 568.550.

(12) “Stewardship” means the careful and responsible management of
the environment.

(13) “Tribe” means a federally recognized Indian tribe in Oregon.

(14) “Watershed” means the entire land area drained by a stream or
system of connected streams such that all stream flow originating in the
area is discharged through a single outlet.

(15) “Watershed council” means a voluntary local organization,
designated by a local government group convened by a county governing
body, to address the goal of sustaining natural resource and watershed
protection, restoration and enhancement within a watershed. [1999 c.1026
§2 (enacted in lieu of 541.350)]
(1) The Legislative Assembly finds that:

(a) The long-term protection of the water resources of this state,
including sustainable watershed functions, is an essential component of
Oregon’s environmental and economic stability and growth;

(b) Each watershed in Oregon is unique, requiring different
management techniques and programs;

(c) Management techniques and programs for the protection and
enhancement of watersheds can be most effective and efficient when
voluntarily initiated at the local level;

(d) Cooperative partnerships between affected private individuals,
interested citizens, tribes and representatives of local, state and
federal agencies may improve opportunities to achieve the protection,
enhancement and restoration of the state’s watersheds; and

(e) The establishment of such cooperative partnerships should be
encouraged by local individuals, local organizations and representatives
of state agencies.

(2) The Legislative Assembly declares that the Oregon Plan for
integrating regulatory efforts while fostering incentives and voluntary
action for environmental stewardship should be founded upon the following
principles:

(a) Promoting collaboration and partnerships among local, state,
regional, tribal and federal governments and private individuals and
organizations;

(b) Establishing clear, technically defensible, practicable and
achievable recovery and restoration objectives;

(c) Assessing the conditions in each watershed to determine the
quality of the existing environment, to identify the causes for declines
in habitat, fish and wildlife populations and water quality, and to
assist with the development of locally integrated action plans for
watersheds that will achieve agreed-upon protection and restoration
objectives;

(d) Coordinating implementation of integrated watershed action
plans;

(e) Monitoring and ensuring implementation of the integrated
watershed action plans using adaptive management to make appropriate
changes in action plans and goals as needed; and

(f) Establishing funding priorities across basins based on the
value of programs and projects for watershed and habitat recovery.

(3) It is the policy of the State of Oregon that:

(a) Voluntary programs initiated at the local level to protect and
enhance the quality and stability of watersheds are a high priority of
the state and should be encouraged;

(b) State agencies are encouraged to respond cooperatively to local
watershed protection and enhancement efforts and coordinate their
respective activities with other state agencies and affected local,
regional, tribal and federal governments and private landowners to the
greatest degree practicable; and

(c) State agencies responding to local watershed protection and
enhancement efforts are encouraged to foster local watershed planning,
protection and enhancement efforts before initiating respective action
within a watershed. [1999 c.1026 §4 (enacted in lieu of 541.347)](1) The Oregon Watershed Enhancement Board is created.
The board shall consist of 17 members as set forth in subsection (2) of
this section. The chairperson shall have such powers and duties as are
provided by the rules of the board.

(2)(a) The 11 voting members of the board shall be knowledgeable
about natural resource issues, represent all geographic regions of this
state and include at least one representative of a tribe. The board shall
consist of the following:

(A) Each of the following boards or commissions shall designate one
member of their board or commission to serve on the Oregon Watershed
Enhancement Board:

(i) The Environmental Quality Commission;

(ii) The State Fish and Wildlife Commission;

(iii) The State Board of Forestry;

(iv) The State Board of Agriculture; and

(v) The Water Resources Commission; and

(B) Six public members appointed by the Governor and confirmed by
the Senate in accordance with ORS 171.562 and 171.565. Each public member
shall serve for a term of four years. A member shall be eligible for
reappointment, but no member shall serve more than two consecutive terms.

(b) In addition to the voting members, the director of the
agricultural extension service of Oregon State University, or the
director’s designee, shall serve as a nonvoting member of the board and
shall participate as needed in the activities of the board.

(c) In addition to the voting and nonvoting members designated in
paragraphs (a) and (b) of this subsection, representatives of the
following federal agencies shall be invited to serve as additional
nonvoting members of the board:

(A) A representative of the United States Forest Service.

(B) A representative of the United States Bureau of Land Management.

(C) A representative of the Natural Resources Conservation Service
of the United States Department of Agriculture.

(D) A representative of the United States Environmental Protection
Agency.

(E) A representative of the National Marine Fisheries Service of
the United States Department of Commerce.

(3) The voting members of the board shall select a chairperson from
among the voting members of the board.

(4) At least eight voting members of the board must be present to
take action to award grant funds under ORS 541.370. If three or more
voting members object to an award of grant funds, the board shall reject
the proposal and direct the applicant to revise the proposal to comply
with the requirements of ORS 541.397, 541.399 and 451.401 and resubmit
the proposal. [1987 c.734 §3; 1995 c.187 §3; 1999 c.1026 §8](1) Subject to confirmation by the Senate in the manner
provided in ORS 171.562 and 171.565, the Governor shall appoint an
executive director of the Oregon Watershed Enhancement Board. The
executive director shall be an individual qualified by training and
experience and shall serve for a term of four years, at the pleasure of
the Governor.

(2) The executive director shall receive a salary as provided by
law or, if not so provided, as prescribed by the Governor.

(3) In addition to salary, but subject to any applicable law
regulating travel and other expenses of state officers and employees, the
executive director shall be reimbursed for actual and necessary travel
and other expenses incurred by the executive director in the performance
of official duties.

(4) Subject to any applicable provisions of the State Personnel
Relations Law, the executive director shall appoint all subordinate
officers and employees of the board, prescribe their duties and fix their
compensation. [1999 c.1026 §9]In addition to any other authority granted to the executive
director of the Oregon Watershed Enhancement Board, the executive
director, on behalf of the board, may enter into interagency agreements
necessary to carry out the duties and responsibilities of the board.
[1999 c.1026 §10](1) The Oregon Watershed Enhancement Board
shall conduct a watershed enhancement program to benefit all users of the
waters of this state. The board shall conduct the program in a manner
that:

(a) Provides the greatest possible opportunity for volunteer
participation to achieve the goals of the program; and

(b) Coordinates the information, data and data retrieval needs of
the natural resource agencies of the state with the State Service Center
for Geographic Information Systems.

(2) In order to effectuate the program described in this section,
the board shall establish protocols, policies and procedures necessary to
integrate and organize geographic information and make it available to
persons and entities involved in implementation of the Oregon Plan.

(3) In working with the State Service Center for Geographic
Information Systems, the board shall ensure that:

(a) Information received by the center is formatted in a manner
that results in an integrated geographic information system that meets
the needs of all local, state, regional, tribal and federal entities
involved in implementation of the Oregon Plan; and

(b) The data are available to local, state and federal agencies and
to any person implementing activities under the Oregon Plan.

(4) The program developed under this section shall include
development and implementation, in coordination with the natural resource
agencies of the state, of a statewide monitoring program for activities
conducted under the Oregon Plan. [1987 c.734 §5; 2001 c.841 §3a; 2001
c.842 §1] In
cooperation with other state, interstate and federal agencies, tribes,
local governments, watershed councils, soil and water conservation
districts, not-for-profit organizations and volunteer groups, the Oregon
Watershed Enhancement Board shall facilitate the implementation of the
grant programs established under ORS 541.351 to 541.415. [1999 c.1026 §6] (1) In
carrying out the watershed enhancement program, the Oregon Watershed
Enhancement Board shall:

(a) Coordinate the board’s funding of enhancement projects with the
activities of the Natural Resources Division staff and other agencies,
especially those agencies working together through a system of
coordinated resource management planning.

(b) Use the expertise of the appropriate state agency according to
the type of enhancement project.

(c) Provide educational and informational materials to promote
public awareness and involvement in the watershed enhancement program.

(d) Coordinate and provide for or arrange for assistance in the
activities of persons, agencies or political subdivisions developing
local watershed enhancement projects funded by the board.

(e) Grant funds for the support of watershed councils in assessing
watershed conditions, developing action plans, implementing projects and
monitoring results and for the implementation of watershed enhancement
projects from such moneys as may be available to the board therefor.

(f) Develop and maintain a centralized repository for information
about the effects of watershed enhancement and education projects.

(g) Give priority to proposed watershed enhancement projects
receiving funding or assistance from other sources.

(h) Identify gaps in research or available information about
watershed health and enhancement.

(i) Cooperate with appropriate federal entities to identify the
needs and interests of the State of Oregon so that federal plans and
project schedules relating to watershed enhancement incorporate the
state’s intent to the fullest extent practicable.

(j) Encourage the use of nonstructural methods to enhance the
riparian areas and associated uplands of Oregon’s watersheds.

(k) Determine criteria for utilizing the private sector, both
not-for-profit and for-profit organizations, to provide landowners with
technical assistance to help develop and implement conservation easements
and resource improvement projects.

(2) In accordance with ORS 541.351 to 541.415, the Oregon Watershed
Enhancement Board shall administer a watershed improvement grant program
using funds from the Watershed Improvement Grant Fund established under
ORS 541.397, from the Restoration and Protection Subaccount established
under ORS 541.377 and from the Flexible Incentives Account established
under ORS 541.381.

(3) To aid and advise the board in the performance of the functions
of the board, the board may establish such advisory and technical
committees as the board considers necessary. These committees may be
continuing or temporary. The board shall determine the representation,
membership, terms and organization of the committees and shall appoint
their members. The chairperson is ex officio a member of each committee.
[1987 c.734 §6; 1995 c.187 §4; 1997 c.8 §8; 1999 c.59 §174; 1999 c.1026
§11; 2001 c.708 §15](1) In addition to the duties set forth
in ORS 541.370, in carrying out the provisions of ORS 541.351 to 541.415,
the Oregon Watershed Enhancement Board:

(a) Shall establish a framework for a locally based integrated
watershed planning and management process designed to assist watershed
councils and soil and water conservation districts and to support the
efforts of watershed councils and soil and water conservation districts
to work within the requirements of state and federal laws without
duplication of planning effort. The framework shall include all of the
following:

(A) Guidance and protocols for watershed assessments to encourage
consistent assessment methods across all watersheds and agencies,
including assessment of cumulative effects. At a minimum, such guidance
shall address the following plan components:

(i) A description of the watershed;

(ii) An assessment of current watershed conditions and the
distribution and condition of habitat; and

(iii) Identification of conditions preventing watershed restoration.

(B) Guidance on how to prepare watershed action plans. At a
minimum, such guidance shall address the following plan components:

(i) Applicable water quality standards and native salmonid and
habitat recovery objectives;

(ii) Proposed measures needed to restore watershed health;

(iii) Timeline and budget estimates for implementation of action
measures in priority order; and

(iv) Monitoring and evaluation systems.

(b) May review plans, actions and rules of state agencies
pertaining to restoration and protection grants for the purpose of
coordinating the board’s grant program with other ongoing grant programs.

(c) Shall establish statewide and regional goals and priorities
that shall become the basis for funding decisions by the board. In
adopting such goals and priorities, the board shall adopt priorities for
grant funding based on the Oregon Plan and on measurable goals. In
carrying out this function, the board shall consider local economic and
social impacts among the criteria.

(d) Shall support development and implementation of a system that
enables standardized collection, management and reporting of natural
resources information in Oregon, including water data, geographic
information system data and information on native fish and wildlife and
habitat.

(e) Shall promote the availability of information on the effects of
watershed enhancement.

(f) May not have regulatory or enforcement authority except for the
fiscal responsibilities described in ORS 541.351 to 541.415.

(2) In addition to the uses of grant funds described in ORS
541.399, in allocating grant funds under ORS 541.351 to 541.415 that are
derived from the Restoration and Protection Subaccount, the board:

(a) May allocate funds to be used for staff for soil and water
conservation districts and watershed councils.

(b) May award funds for a specific project or program application
or for implementation of an approved action plan.

(3) To the maximum extent practicable, soil and water conservation
districts and watershed councils shall share technical staff. [1999
c.1026 §12] (1) The
Oregon Watershed Enhancement Board may accept moneys from any public or
private source, including the federal government, made available for the
purpose of encouraging, promoting and securing watershed enhancement or
to facilitate and assist in carrying out the functions of the board,
including administrative expenses, as provided by law.

(2) All moneys received by the board under this section shall be
deposited in the State Treasury and kept in separate accounts in the
General Fund designated according to the purposes for which moneys were
made available.

(3) Notwithstanding the provisions of ORS 291.238, all moneys
received under this section are continuously appropriated to the board
for the purpose for which they were made available and shall be expended
in accordance with the terms and conditions upon which they were made
available. [1991 c.657 §2] (1)
The Governor may receive gifts, grants, bequests, endowments and
donations of moneys from public and private sources, including the
federal government, for the purpose of implementing the Oregon Plan, as
described in ORS 541.405.

(2) The Governor shall deposit moneys received under this section
in the State Treasury to the credit of the Watershed Improvement
Operating Fund established under ORS 541.379 to be used for the purposes
specified in ORS 541.379 (1)(b). [2003 c.452 §3](1) Any person,
tribe, watershed council, soil and water conservation district, community
college, state institution of higher education, independent
not-for-profit institution of higher education or political subdivision
of this state that is not a state agency may submit a request for funding
for or for advice and assistance in developing a project under ORS
541.351 to 541.415. A state agency or federal agency may apply for
funding under this section only as a coapplicant with one of the other
eligible entities.

(2) The request under subsection (1) of this section shall be filed
in the manner, be in the form and contain the information required by the
Oregon Watershed Enhancement Board.

(3) The board may establish a grant program through soil and water
conservation districts organized under ORS 568.210 to 568.808 and 568.900
to 568.933 that provides funds for local implementation of watershed
enhancement, education and monitoring efforts.

(4) The board may fund implementation of action plans based on a
watershed assessment that addresses water quality and aquatic resources
of the watershed.

(5) A project may use mechanical, vegetative or structural methods
including, but not limited to, management techniques, erosion control,
streambank stabilization, forest, range or crop land treatment, site
specific in-stream structures, acquisitions or leases of land or water
rights from a willing owner, watershed assessments, landowner incentives
and action plan development, implementation and monitoring.

(6) The actions of a soil and water conservation district carried
out pursuant to a grant program established by the board under subsection
(3) of this section shall not be subject to review and approval by the
Natural Resources Division under ORS 561.400.

(7) The Oregon Watershed Enhancement Board shall approve for
funding only those projects that:

(a) Are based on sound principles of watershed management;

(b) Use methods most adapted to the project locale;

(c) Meet the criteria established by the board under ORS 541.396;
and

(d) Contribute to either:

(A) The improved health of a stream, lake or reservoir and toward
the achievement of standards that satisfy the requirements of the Federal
Water Pollution Control Act (P.L. 92-500), as amended; or

(B) The restoration of wildlife, habitat or native fish.

(8) The Oregon Watershed Enhancement Board may fund a project for
the restoration of a riparian area or associated upland that is carried
out in conjunction with a storage structure. However, the board shall not
approve funding for any proposed project that consists solely of
construction of a storage structure for out-of-stream use.

(9) The Oregon Watershed Enhancement Board may fund projects
involving the acquisition of lands and waters, or interests therein from
willing sellers, for the purpose of maintaining or restoring watersheds,
habitat and native salmonids. Interests in these lands and waters may be
held by local, state and federal agencies, tribes, not-for-profit land
conservation organizations and trusts, state institutions of higher
education, independent not-for-profit institutions of higher education or
political subdivisions of this state, as long as the entity continues to
use the land or water for the purposes specified under section 4b,
Article XV of the Oregon Constitution.

(10) If the Oregon Watershed Enhancement Board approves funding for
a project under this section that requires the applicant to obtain a
permit or license from a local, state or federal agency or governing
body, the board shall not disburse any funds to the applicant until the
applicant presents evidence that the agency has granted the permit or
license. [1987 c.734 §7; 1989 c.171 §71; 1995 c.187 §5; 1997 c.7 §8; 1999
c.1026 §13](1) Land purchased through a grant agreement with the Oregon
Watershed Enhancement Board shall be subject to title restrictions that
give the board the authority to approve, approve with conditions or deny
the sale or transfer of the land. Specifically, the board may require
conditions on the sale or transfer to:

(a) Ensure consistency with the intent of the original grant;

(b) Ensure the ability of the party receiving the land through the
sale or transfer to carry out the obligations under the grant agreement;
and

(c) Address the disposition of proceeds from the sale or transfer,
including any provisions for repayment, with interest, of any grant funds.

(2) The board may not allow a sale or transfer that results in any
profit to any person.

(3) The board shall, by rule, define “profit” for the purpose of
not allowing sales or transfers and shall specify the process and
criteria that the board will use in considering whether to approve,
approve with conditions or deny a sale or transfer. [2001 c.645 §2](1) There is established in the State Treasury,
separate and distinct from the General Fund, the Parks and Natural
Resources Fund to be administered by the Oregon Department of
Administrative Services. All moneys transferred from the State Lottery
Fund and all other moneys authorized to be transferred to the Parks and
Natural Resources Fund from whatever source are appropriated continuously
for the public purposes of restoring and protecting Oregon’s parks,
beaches, watersheds and critical fish and wildlife habitats. Fifteen
percent of the net proceeds from the Oregon State Lottery shall be
deposited in the Parks and Natural Resources Fund created under this
subsection.

(2) Of the moneys deposited into the Parks and Natural Resources
Fund from the Oregon State Lottery, 50 percent shall be deposited into a
Parks Subaccount for the public purpose of financing the protection,
repair, operation, creation and development of state parks, ocean shores,
public beach access areas, historic sites and recreation areas. The State
Treasurer may invest and reinvest the moneys in the Parks Subaccount as
provided in ORS 293.701 to 293.820. Interest from the moneys deposited in
the subaccount and earnings from investment of the moneys in the
subaccount shall be credited to the subaccount.

(3) All moneys in the Parks Subaccount for financing the
protection, repair, operation, creation and development of state parks,
ocean shores, public beach access areas, historic sites and recreation
areas shall be allocated to the State Parks and Recreation Department.
Such moneys shall be deposited into the State Parks and Recreation
Department Fund established under ORS 390.134 and shall be used for the
following purposes:

(a) Maintaining, constructing, improving, developing, managing and
operating state park and recreation facilities, programs and areas.

(b) Acquiring real property, or interest therein, deemed necessary
for the creation and operation of state parks, ocean shores, public beach
access areas, recreation areas and historic sites or because of natural,
scenic, cultural, historic and recreational values.

(c) Operating grant programs for local government entities deemed
necessary to accomplish the public purposes of the Parks and Natural
Resources Fund.

(4) Of the moneys deposited into the Parks and Natural Resources
Fund from the Oregon State Lottery, 50 percent shall be deposited into a
Restoration and Protection Subaccount for the public purpose of financing
the restoration and protection of native salmonid populations,
watersheds, fish and wildlife habitats and water quality in Oregon. The
State Treasurer may invest and reinvest the moneys in the Restoration and
Protection Subaccount as provided in ORS 293.701 to 293.820. Interest
from the moneys deposited in the subaccount and earnings from investment
of the moneys in the subaccount shall be credited to the Restoration and
Protection Research Fund created under ORS 541.378.

(5) The moneys in the Restoration and Protection Subaccount for
financing the restoration and protection of native salmonid populations,
watersheds, fish and wildlife habitats and water quality shall be
administered by the Oregon Watershed Enhancement Board and shall be used
for all of the following purposes:

(a) Restoration and protection of watersheds and fish, wildlife,
riparian and native species and for habitat conservation activities,
including but not limited to planning, coordination, assessment,
implementation, restoration, inventory, information management and
monitoring activities.

(b) Watershed and riparian education efforts.

(c) Development and implementation of watershed and water quality
enhancement plans.

(d) Entering into agreements to obtain from willing owners
determinate interests in lands and waters that protect watershed
resources, including but not limited to fee simple interests in land,
leases of land or water or conservation easements.

(e) Enforcement of fish and wildlife and habitat protection laws
and regulations.

(6) Of the moneys deposited into the Restoration and Protection
Subaccount from the Oregon State Lottery, the Oregon Watershed
Enhancement Board shall deposit:

(a) Sixty-five percent of the funds into the Watershed Improvement
Grant Fund established under ORS 541.397 to be used only for funding
capital expenditure projects; and

(b) Thirty-five percent of the funds into the Watershed Improvement
Operating Fund established under ORS 541.379 to be used for the purposes
set forth in ORS 541.379 (1).

(7) The Legislative Assembly shall not limit expenditures from the
Parks and Natural Resources Fund. The Legislative Assembly may
appropriate other moneys or revenues to the Parks and Natural Resources
Fund. [1999 c.1026 §7; 2003 c.14 §346](1) There is created in the General Fund of the State
Treasury the Restoration and Protection Research Fund. Interest earned by
the Restoration and Protection Research Fund shall be credited to the
fund. Moneys credited to the fund are continuously appropriated to the
Oregon Watershed Enhancement Board for the purpose of funding research
and other activities related to the restoration and protection of native
salmonid populations, watersheds, fish and wildlife habitats and water
quality, including but not limited to research, monitoring, evaluation
and assessment related to the Oregon Plan.

(2) All moneys received by the Oregon Watershed Enhancement Board
from interest earned on the Restoration and Protection Subaccount of the
Parks and Natural Resources Fund created under ORS 541.377, from the
Watershed Improvement Operating Fund created under ORS 541.379 and from
the Watershed Improvement Grant Fund created under ORS 541.397 shall be
credited to the Restoration and Protection Research Fund. Moneys credited
to the fund and not expended by the completion of a biennium shall remain
in the fund. [1999 c.1026 §7a](1) The Watershed Improvement Operating Fund is established in the
State Treasury separate and distinct from the General Fund. The Watershed
Improvement Operating Fund shall consist of all moneys placed in the fund
as provided by law. All moneys in the Watershed Improvement Operating
Fund are continuously appropriated for the following purposes:

(a) Operational activities of the Oregon Watershed Enhancement
Board;

(b) Activities of state and local agencies and other public
entities related to the restoration and protection of native salmonid
populations, watersheds, fish and wildlife habitats and water quality,
including but not limited to activities under the Oregon Plan;

(c) Watershed improvement grants described in ORS 541.399 and
541.401 that are not capital expenditures; and

(d) Watershed improvement grants described in ORS 541.399 and
541.401 that are capital expenditures.

(2) Interest accruing to the Watershed Improvement Operating Fund
shall be credited to the Restoration and Protection Research Fund created
under ORS 541.378. Funds appropriated and not expended by the completion
of a biennium shall remain in the Watershed Improvement Operating Fund.

(3) The Oregon Watershed Enhancement Board created under ORS
541.360 shall administer the Watershed Improvement Operating Fund.

(4) In addition to the funds made available for the purposes of ORS
541.351 to 541.415 under ORS 541.399, the board also may accept gifts and
grants from any public or private source for the purposes described in
subsection (1) of this section. [1999 c.1026 §7b] (1)
There is created a Flexible Incentives Account in the State Treasury,
separate and distinct from the General Fund. Interest earned by the
account shall be credited to the account. The moneys in the account are
continuously appropriated to the Oregon Watershed Enhancement Board for
the purposes specified in this section.

(2) The Oregon Watershed Enhancement Board shall use the account to
assist landowners in the implementation of strategies intended to protect
and restore native species of fish, wildlife and plants and to maintain
long-term ecological health, diversity and productivity in a manner
consistent with statewide, regional or local conservation plans. The
board shall seek to fund those strategies that offer the greatest public
benefit at the lowest cost.

(3) The account shall consist of moneys appropriated to it by the
Legislative Assembly and moneys provided to the board by federal, state,
regional or local governments for the purposes specified in this section.
The board may accept private moneys in the form of gifts, grants and
bequests for deposit into the account. [2001 c.708 §13](1) The Oregon Watershed Enhancement Board shall
initiate a watershed management program that relies on the establishment
of voluntary local watershed councils comprised of residents, state and
federal agency staff, members of federally recognized Indian tribes and
other citizens interested in the management of watersheds and that
provides for the development by these partnerships of local plans that
may include but are not limited to the assessment of the watershed
condition, the creation of a watershed action plan and a strategy for
implementing the action plan. The program shall focus state resources on
the achievement of sustainable watershed health, including funding major
projects that contribute to the overall health of a watershed. In
addition, the board shall fund smaller, voluntary projects for watershed
enhancement and for restoration of riparian areas and associated uplands.

(2) In carrying out the program under subsection (1) of this
section, the board may designate high priority watersheds. However, the
designation of high priority watersheds is intended only as a management
tool for state agencies in allocating resources to support coordinated
watershed management activities. Such designation is not intended to
establish or confer any right, duty or authority, nor to have any legal
significance beyond that described in this section, nor to discourage or
prohibit the formation and function of voluntary local watershed councils
in other watersheds.

(3) The elected officials representing the appropriate local
government groups containing or within a proposed watershed council area
shall determine whether to participate in the voluntary formation of a
local watershed council. When multiple local government groups are
involved within an area that would be served by a watershed council, the
affected local government groups shall together determine their
respective roles and the appropriate method for appointing members to a
local watershed council. [1993 c.601 §2; 1995 c.187 §6](1) Local government groups are encouraged to form voluntary
local watershed councils in accordance with the guidelines set forth in
subsection (2) of this section. The Oregon Watershed Enhancement Board
may work cooperatively with any local watershed council that may be
formed. Requests from local watershed councils for state assistance shall
be evaluated on the basis of whether the requesting organization reflects
the interests of the affected watershed and the potential to protect and
enhance the quality of the watershed in question.

(2) Local watershed councils formed under subsection (1) of this
section shall consist of a majority of local residents, including local
officials. A watershed council may be a new or existing organization as
long as the council represents a balance of interested and affected
persons within the watershed and assures a high level of citizen
involvement in the development and implementation of a watershed action
program. A local watershed council may include representatives of local
government, representatives of nongovernment organizations and private
citizens, including but not limited to:

(a) Representatives of local and regional boards, commissions,
districts and agencies;

(b) Representatives of federally recognized Indian tribes;

(c) Public interest group representatives;

(d) Private landowners;

(e) Industry representatives;

(f) Members of academic, scientific and professional communities;
and

(g) Representatives of state and federal agencies.

(3) If more than one watershed council exists in a county, each
watershed council shall periodically report the activities of the council
to the county governing body.

(4) The Oregon Department of Administrative Services may provide to
voluntary local watershed councils and their officers, employees and
agents acting within the scope of their employment or duties, protection
against liability as part of the insurance provided to the Oregon
Watershed Enhancement Board pursuant to ORS 278.120 to 278.215. The
Oregon Watershed Enhancement Board, after consulting the Oregon
Department of Administrative Services and local watershed councils, shall
establish guidelines for liability coverage and limits of coverage. The
Oregon Department of Administrative Services shall determine any
additional contributions to be apportioned to the Oregon Watershed
Enhancement Board for extending insurance to voluntary local watershed
councils, and the Oregon Watershed Enhancement Board shall pay the
assessments from such moneys as may be available for those assessments.
[1993 c.601 §3; 1995 c.187 §7; 1999 c.300 §1] In addition to the
duties conferred on the Natural Resources Division of the State
Department of Agriculture under ORS 561.400 and 568.210 to 568.808 and
568.900 to 568.933, the division shall:

(1) In cooperation with the Oregon Watershed Enhancement Board,
provide appropriate personnel who, under the direction of the board,
shall:

(a) Serve as community advisors to cooperatively develop watershed
enhancement projects with volunteers; and

(b) Cooperatively evaluate watershed enhancement projects with
those responsible for project implementation.

(2) Provide technical assistance to individuals responsible for
implementation of a watershed enhancement project.

(3) Work with the Oregon Watershed Enhancement Board to coordinate
the implementation of enhancement projects with the activities of other
agencies, including but not limited to, those state and federal agencies
participating in coordinated resource management planning. [1987 c.734
§9; 2001 c.104 §228] (1) The Oregon Watershed
Enhancement Board shall report biennially to the Legislative Assembly on
the implementation of the management program under ORS 541.384 and grants
awarded under ORS 541.399. The report shall include but need not be
limited to:

(a) An explanation of the effectiveness and workability of the
partnership process described in ORS 541.384;

(b) A description of any modifications to the process that have
been instituted;

(c) Recommendations concerning the need for future legislative
action; and

(d) Information about the use of moneys received by and distributed
by the board under section 4b, Article XV of the Oregon Constitution.

(2) The board shall include with each report under subsection (1)
of this section a copy of each audit completed pursuant to section 4c,
Article XV of the Oregon Constitution. [Formerly 541.400; 1999 c.1026 §15] In order to
assist the Oregon Watershed Enhancement Board in developing and
maintaining a centralized repository under ORS 541.370, the following
agencies shall provide the board with a copy of any report produced by
the agency that is related to enhancement or restoration of riparian
areas or associated uplands:

(1) The Department of Environmental Quality.

(2) The State Department of Fish and Wildlife.

(3) The Water Resources Department.

(4) The State Forestry Department.

(5) The State Department of Agriculture.

(6) The agricultural extension service of Oregon State University.
[1987 c.734 §10] (1) In accordance with the applicable provisions of
ORS chapter 183, the Oregon Watershed Enhancement Board shall adopt rules
and standards to carry out the watershed enhancement program.

(2) The rules and standards adopted by the board under subsection
(1) of this section shall include, but need not be limited to:

(a) Grant application requirements and review and selection
criteria for projects to receive assistance or funding from the board,
including funding from the Flexible Incentives Account established under
ORS 541.381.

(b) Criteria for distributing to those entities specified in ORS
541.375 those funds appropriated to the board for funding projects. The
criteria shall include a process for periodic review of the distribution
by the joint legislative committee created pursuant to ORS 171.551.

(c) Conditions for approval by the board for implementation of a
project including but not limited to:

(A) Provisions satisfactory to the board for inspection and
evaluation of the implementation of a project including all necessary
agreements to allow the board and employees of any cooperating agency
providing staff services for the board access to the project area;

(B) Provisions satisfactory to the board for controlling the
expenditure of and accounting for any funds granted by the board for
implementation of the project;

(C) An agreement that those initiating the project will submit all
pertinent information and research gained from the project to the board
for inclusion in the centralized repository established by the board; and

(D) Provisions for the continued maintenance of the portion of the
riparian area or associated uplands enhanced by the project. [Formerly
541.380](Watershed Improvement Grant Fund)
(1) The Watershed Improvement Grant Fund is established separate and
distinct from the General Fund. The Watershed Improvement Grant Fund
shall consist of all moneys placed in the fund as provided by law. All
moneys in the Watershed Improvement Grant Fund are continuously
appropriated to fund watershed improvement grants described in ORS
541.399 and 541.401. Interest accruing to the Watershed Improvement Grant
Fund shall be credited to the Restoration and Protection Research Fund
created under ORS 541.378. Funds appropriated and not expended by the
completion of a biennium shall remain in the Watershed Improvement Grant
Fund.

(2) The Oregon Watershed Enhancement Board created under ORS
541.360 shall administer the Watershed Improvement Grant Fund and provide
grants from the fund for the purposes described in ORS 541.399 and
541.401 in the manner described under ORS 541.399 and 541.401.

(3) In addition to the funds made available for the purposes of ORS
541.351 to 541.415 under ORS 541.399, the board also may accept gifts and
grants from any public or private source for the purpose of providing the
grants described in subsection (2) of this section. [1997 c.8 §4; 1999
c.1026 §15b]
The purpose of the Watershed Improvement Grant Fund is to provide funding
for grants for:

(1) Expenses of the Independent Multidisciplinary Science Team
established under ORS 541.409; and

(2) The following:

(a) Watershed and riparian habitat conservation activities,
including but not limited to planning, coordination, assessment,
implementation and monitoring activities.

(b) Watershed and riparian education efforts, including peer
education about stream processes for landowners.

(c) The implementation of watershed enhancement plans developed by
watershed councils.

(d) Water quality improvement plans approved by the State
Department of Agriculture or the Department of Environmental Quality.

(e) Entering into an agreement to obtain from a willing owner a
determinate interest in lands and waters that protect watershed
resources, including but not limited to fee simple interests in land,
leases of land and conservation easements.

(f) Activities to implement the provisions of section 4b, Article
XV of the Oregon Constitution. [1997 c.8 §5; 1999 c.1026 §16]The Oregon Watershed Enhancement Board may award
funds from the Watershed Improvement Grant Fund only for the purposes
listed in ORS 541.399. Any project that the board approves for funding
shall comply with the following criteria:

(1) There is a matching contribution from other program funds,
in-kind services or other investment in the project;

(2) The project to be funded is reviewed and approved by a
technical committee in accordance with ORS 541.370 (3); and

(3) The project provides a public benefit through improved:

(a) Water quality;

(b) Fish or wildlife habitat; or

(c) Public information or education on a watershed function. [1997
c.8 §6](The Oregon Plan)(1) As used in this section when
referring to salmonid recovery:

(a) “Listed unit” means one population or a group of populations of
a species, such as an evolutionarily significant unit, that has been
listed as threatened or endangered under the federal Endangered Species
Act of 1973 (P.L. 93-205), as amended, or under ORS 496.171 to 496.192.

(b) “Native fish” means a fish indigenous to Oregon and not
introduced. Naturally produced fish and hatchery produced fish are both
native fish if the fish are indigenous to Oregon and not introduced.

(c) “Naturally produced” means a fish that reproduces and completes
its full life cycle in its natural habitat. Naturally produced progeny of
hatchery fish are naturally produced.

(d) “Population” means a group of fish that:

(A) Originates and reproduces in a particular area at a particular
time;

(B) Does not interbreed to any substantial degree with any other
group reproducing in a different area or in the same area at a different
time; and

(C) Is composed of naturally produced fish, hatchery produced fish
or a combination of both.

(e) “Recovery” means that a proportion of the constituent
populations of naturally produced native fish belonging to a listed unit
are sufficiently abundant, productive and diverse in life histories and
distribution such that the listed unit as a whole is likely to be
self-sustaining into the foreseeable future.

(f) “Self-sustaining” means having a sufficient proportion and
distribution of constituent populations:

(A) Likely to survive prolonged periods of habitat, oceanic,
climatic and environmental conditions that are detrimental to a
population; and

(B) Having habitat of sufficient quality and quantity likely to
provide survival rates adequate to maintain associated ecological,
cultural and economic benefits.

(2) The Legislative Assembly finds that the efforts of many
Oregonians have resulted in the creation of the Oregon Plan, and
recognizes that the Oregon Plan is guided by the following mission and
goals:

(a) The mission of the Oregon Plan is to restore the watersheds of
Oregon and to recover the fish and wildlife populations of those
watersheds to productive and sustainable levels in a manner that provides
substantial ecological, cultural and economic benefits.

(b) The goals of the Oregon Plan that guide the citizens of Oregon
in achieving the mission of the Oregon Plan are the:

(A) Establishment and maintenance of an infrastructure that
provides long-term continuity in leadership, direction and oversight of
watershed restoration and species recovery.

(B) Continued opportunity for a wide range of natural resource uses
that are consistent with watershed restoration and species recovery.

(C) Implementation of existing laws and environmental regulations
to achieve the mission before enacting new laws and environmental
regulations.

(D) Development and maintenance of funding for programs to protect
and restore watersheds.

(E) Development of expectations for the sustainability of
interrelated natural resources that accurately reflect a scientific
understanding of the physical and biological constraints of the ecosystem.

(F) Enhancement of habitat available to support healthy populations
of fish and wildlife throughout the state.

(G) Production of populations of threatened or endangered species
to achieve levels of natural production consistent with overall
restoration goals.

(H) Establishment of a science-based system that supports
evaluation of the Oregon Plan and provides a basis for making appropriate
future changes to management programs.

(I) Coordination of activities and programs among federal, state
and local governments and other entities.

(J) Use of voluntary and collaborative processes to achieve the
mission of the Oregon Plan whenever possible.

(3) The Oregon Plan is a comprehensive program for the protection
and recovery of species and for the restoration of watersheds throughout
this state. The Oregon Plan combines the regulatory and other actions of
state and federal agencies and local governments with voluntary watershed
restoration by private landowners and others. The Oregon Plan includes,
but is not limited to:

(a) Programs and policies found in the following statutes:

(A) ORS 196.600 to 196.905;

(B) ORS chapter 197;

(C) ORS chapter 274;

(D) ORS chapter 366;

(E) ORS chapter 390;

(F) ORS chapters 465, 466, 468 and 468B;

(G) ORS 469.300 to 469.563, 469.590 to 469.619, 469.930 and 469.992;

(H) ORS chapter 477;

(I) ORS chapters 496, 497, 498, 501, 506, 507, 508, 509 and 511;

(J) ORS 517.702 to 517.989;

(K) ORS 527.310 to 527.370, 527.610 to 527.770, 527.990 (1) and
527.992;

(L) ORS chapter 530;

(M) ORS chapters 536 to 543A;

(N) ORS 543A.005 to 543A.415; and

(O) ORS 568.210 to 568.808 and 568.900 to 568.933;

(b) Commitments of state agencies in the form of measures;

(c) Actions of local governments and federal agencies taken in
coordination with the state and consistent with the purposes of the
Oregon Plan;

(d) Voluntary activities undertaken by watershed councils, soil and
water conservation districts, landowners and other entities and
consistent with the purposes of the Oregon Plan;

(e) Scientific review by the Independent Multidisciplinary Science
Team, and others, of the activities performed under the Oregon Plan;

(f) Programs and activities identified to address a coordinated
approach for the recovery of native salmonid populations within Oregon;

(g) The guidance statement and framework provided by the healthy
streams partnership developed to provide cooperative solutions and
voluntary approaches to improving the water quality of streams and to
achieve healthy streams throughout Oregon; and

(h) Programs for the restoration and enhancement of multiple
species and of the habitat of those species.

(4) The Oregon Plan is subject to modification and alteration to
enhance program efforts consistent with appropriate guidance principles
developed by the Legislative Assembly and oversight as set forth in ORS
171.551 and 171.553.

(5) The purpose of the Oregon Plan is to enhance, restore and
protect Oregon’s native salmonid populations, watersheds, fish and
wildlife habitat and water quality, while sustaining a healthy economy.

(6) The Oregon Plan shall:

(a) Provide for coordination of local, state, federal and tribal
agency responsibilities and authorities for native salmonid, watershed
and habitat restoration throughout Oregon.

(b) Rely on watershed councils and soil and water conservation
districts, which are directed to cooperate in the development of local
watershed plans that assess watershed conditions and create watershed
action plans and strategies for the implementation of the local watershed
action plans.

(c) Focus state policies and resources on achieving native salmonid
recovery and watershed restoration while sustaining a healthy economy and
environment.

(7) The Oregon Plan shall focus on aiding the recovery of species
listed as threatened or endangered under the federal Endangered Species
Act or under ORS 496.171 to 496.192 until such time as recovery is
achieved. Once recovery has been achieved for any species listed as
threatened or endangered under ORS 496.171 to 496.192, the Governor shall
direct the State Fish and Wildlife Commission to begin rulemaking, as
provided in ORS 496.176, to remove the species from the list created
pursuant to ORS 496.172. Upon recovery, adequate measures pursuant to the
Oregon Plan shall remain in place, as necessary, to help a species avoid
a return to threatened or endangered status.

(8)(a) The Governor, or the Governor’s designee, shall negotiate
with federal officials to obtain assurances to the effect that compliance
with the Oregon Plan and the programs and policies found in the statutes
listed in subsection (3) of this section and implementation of related
state programs and policies will satisfy federal requirements imposed by
the federal Endangered Species Act. Specifically, the Governor, or the
Governor’s designee, shall seek an exemption to the requirements of 16
U.S.C. 1533(d), shall seek to enter into a cooperative agreement pursuant
to 16 U.S.C. 1535(c) or shall seek to obtain a permit that allows the
incidental taking of species under 16 U.S.C. 1539(a).

(b) State agencies responsible for implementing the programs and
policies found in the statutes listed in subsection (3) of this section
shall work with the Governor, or the Governor’s designee, and with
federal officials to provide the information necessary to obtain the
exemptions, agreement or permit specified in paragraph (a) of this
subsection. [1997 c.7 §1; 1999 c.270 §3; 1999 c.1026 §5; 2001 c.841 §4;
2003 c.452 §1] (1) The
Governor, the President of the Senate and the Speaker of the House of
Representatives shall appoint a statewide Healthy Streams Partnership.
The Healthy Streams Partnership shall consist of 21 persons. Membership
shall include:

(a) Seven members who represent watershed groups or soil and water
conservation districts;

(b) One member who represents tribal governments and who resides
east of the summit of the Cascade Mountain Range;

(c) One member who represents tribal governments and who resides
west of the summit of the Cascade Mountain Range;

(d) Two members who represent environmental advocacy or wildlife
conservation groups; and

(e) Ten members who represent different in-stream and out-of-stream
beneficial uses of water, including but not limited to agricultural,
recreational, industrial, municipal and silvicultural uses.

(2) The members of the Healthy Streams Partnership shall serve for
four years and may be reappointed for no more than two consecutive terms,
but any person may be appointed again to the partnership after an
interval of four years.

(3) The Healthy Streams Partnership shall elect a chairperson and
vice chairperson for a term of one year and shall determine the duties of
the officers.

(4) A majority of the members of the Healthy Streams Partnership
constitutes a quorum for the transaction of business. The Healthy Streams
Partnership shall operate in accordance with procedures adopted by the
members.

(5) The office of the Governor shall provide administrative support
and services to the Healthy Streams Partnership.

(6) The duties of the Healthy Streams Partnership shall include but
need not be limited to:

(a) Providing information to the joint legislative committee
created pursuant to ORS 171.551 about the implementation of the programs
from a local and regional perspective; and

(b) Recommending changes necessary to facilitate more efficient
implementation of the initiative and other stream improvement programs at
the local level.

(7) Members of the Healthy Streams Partnership shall not be
compensated for their services but are eligible for reimbursement of
travel and other reasonable expenses in accordance with ORS 292.495.
[1997 c.7 §4; 1999 c.244 §1; 1999 c.270 §6; 1999 c.1026 §21](1) There is created an
Independent Multidisciplinary Science Team consisting of up to seven
scientists with recognized expertise in fisheries, artificial
propagation, stream ecology, forestry, range, watershed and agricultural
management. The Governor, the President of the Senate and the Speaker of
the House of Representatives shall jointly appoint the Independent
Multidisciplinary Science Team. The decision to appoint a member of the
team shall be a unanimous decision by the appointing authorities. The
members of the Independent Multidisciplinary Science Team shall serve for
four years and may be reappointed for a subsequent term. The team shall
be governed by generally accepted guidelines and practices governing the
activities of independent science boards such as the National Academy of
Sciences.

(2) The Independent Multidisciplinary Science Team shall:

(a) Review implementation of the Oregon Plan and other programs for
achieving healthy streams as described in ORS 541.405.

(b) Prepare and submit to the Governor, the Legislative Assembly
and the public an annual report on the implementation of the Oregon Plan,
including any recommendations for changes or adjustments to the
initiative.

(c) Serve as an independent scientific peer review panel to the
state agencies responsible for developing and implementing the Oregon
Plan and other salmon or stream enhancement programs throughout this
state.

(d) Report regularly to the joint legislative committee created
pursuant to ORS 171.551 concerning the duties described under this
subsection and other requests by that joint legislative committee.

(3) If the Independent Multidisciplinary Science Team submits
suggestions to an agency responsible for implementing a portion of the
Oregon Plan, the agency shall respond in writing to the team, explaining
how the agency intends to implement the suggestion or why the agency does
not implement the suggestion. The team shall include any agency responses
in its report to the joint legislative committee created pursuant to ORS
171.551.

(4) Members of the Independent Multidisciplinary Science Team shall
be compensated for their services and are eligible for reimbursement of
travel and other reasonable expenses in accordance with ORS 292.495.

(5) Compensation for members of the Independent Multidisciplinary
Science Team shall be cooperatively determined by the appointing
authorities and the joint legislative committee created pursuant to ORS
171.551.

(6) The office of the Governor shall provide administrative support
and services to the Independent Multidisciplinary Science Team. [1997 c.7
§5; 1999 c.270 §7; 1999 c.1026 §22]Any state agency participating in the programs and activities
described in ORS 541.405 shall:

(1) Upon request of any person who believes the person’s private
property rights may be adversely affected by the Oregon Plan, provide the
person with written information about the agency’s dispute resolution
services available pursuant to ORS 183.502.

(2) Report to the joint legislative committee created pursuant to
ORS 171.551 any dispute resolution services requested under this section,
and the outcome of such dispute resolution. [1997 c.7 §10; 1999 c.270 §8]Notwithstanding any other provision of law, if during the interim between
legislative sessions any agency responsible for implementing a portion of
the Oregon Plan or a program for the enhancement or restoration of
streams throughout the state requires additional funding or an adjustment
to the agency’s expenditure limitations as approved by the Legislative
Assembly to complete implementation of the Oregon Plan, the agency shall
first submit a report to the joint legislative committee created pursuant
to ORS 171.551. The committee shall review the request and present a
recommendation to the Emergency Board at the time the agency submits its
request to the Emergency Board. [1997 c.7 §13; 1999 c.270 §9; 1999 c.1026
§23]There is hereby established in the State Treasury the
Oregon Plan for Salmon and Watersheds Legal Fund for the purpose of
funding the activities of the Department of Justice in providing legal
advice to or appearing on behalf of a state agency that takes, funds or
authorizes actions when those actions are challenged under the federal
Endangered Species Act (16 U.S.C. 1531 et seq.), as amended, or the
Federal Water Pollution Control Act (P.L. 92-500), as amended, to the
limits of the fund. The fund created by this section shall consist of all
moneys received on behalf of the fund by gift, grant or appropriation,
from whatever source. Moneys in the fund are continuously appropriated to
the Department of Justice for the uses described in this section. Such
uses may include, but need not be limited to, participation in a legal
proceeding involving an action taken by a citizen or political
subdivision of this state, where that action is authorized or funded by
this state, and where:

(1) The state agency that authorizes or funds the action:

(a) Determines that the action is consistent with the Oregon Plan
and is in compliance with applicable state laws; and

(b) Recommends to the Attorney General that the state participate
in such legal challenge; and

(2) The Attorney General, after consulting with the Governor, the
President of the Senate and the Speaker of the House of Representatives,
determines that such participation is in the best strategic interest of
the state. [1999 c.1026 §17](1) The Oregon Watershed Enhancement
Board shall, by January 15 of each odd-numbered year, submit a report to
the Governor and to the appropriate committee or committees of the
Legislative Assembly that assesses the implementation and effectiveness
of the Oregon Plan in the state. The report shall address each drainage
basin in the state and shall include, but need not be limited to:

(a) A status report on watershed and key habitat conditions in the
drainage basin based on available information;

(b) An assessment of data and information needs deemed critical to
monitoring and evaluating watershed and habitat enhancement programs and
efforts;

(c) An overview of state agency programs addressing watershed
conditions;

(d) An overview of voluntary restoration activities addressing
watershed conditions;

(e) A summary of investments made by the board from funds received
under section 4b, Article XV of the Oregon Constitution, and all other
sources; and

(f) The recommendations of the board for enhancing the
effectiveness of Oregon Plan implementation in each drainage basin.

(2) In order to provide the board with the information necessary to
complete the report described in subsection (1) of this section, each
natural resources agency shall provide information requested by the board
in the format and at the times determined by the board.

(3) For purposes of this section, “natural resources agency”
includes:

(a) Department of Environmental Quality;

(b) State Department of Agriculture;

(c) State Department of Fish and Wildlife;

(d) State Forestry Department;

(e) Department of State Lands;

(f) Water Resources Department;

(g) Department of Land Conservation and Development;

(h) State Department of Geology and Mineral Industries;

(i) Oregon Watershed Enhancement Board;

(j) Fish and Wildlife Division of the Department of State Police;

(k) Department of Transportation;

(L) State Parks and Recreation Department;

(m) Economic and Community Development Department;

(n) State Marine Board; and

(o) Any other state agency that is required to manage, allocate or
protect natural resources, either as the primary responsibility of the
agency or in conjunction with the primary responsibilities of the agency.

(4) In addition to the report specified under subsection (1) of
this section, the Oregon Watershed Enhancement Board shall report
regularly during the interim on the implementation of the Oregon Plan to
the joint legislative committee created under ORS 171.551. [2001 c.841 §1]Note: 541.420 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 541 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.(Stewardship Agreements)(1) As used in this section, “stewardship agreement” means an
agreement voluntarily entered into and signed by a landowner, or
representative of the landowner, and the State Department of Agriculture
or the State Board of Forestry that sets forth the terms under which the
landowner will self-regulate to meet and exceed applicable regulatory
requirements and achieve conservation, restoration and improvement of
fish and wildlife habitat or water quality.

(2) The State Department of Agriculture and the State Board of
Forestry may, individually or jointly, enter into stewardship agreements
with landowners.

(3) The purposes of a stewardship agreement are to provide:

(a) An incentive for landowners to provide for conservation,
restoration and improvement of fish and wildlife habitat or water quality;

(b) A mechanism to coordinate, facilitate and memorialize a
landowner’s compliance with the requirements of state and federal
regulatory schemes; and

(c) A mechanism to combine or coordinate multiple incentive
programs among agencies and levels of government to:

(A) Improve the delivery of financial and technical assistance to
landowners engaged in conservation activities;

(B) Reduce redundancy among programs;

(C) Simplify application procedures;

(D) Leverage the investment of federal funds;

(E) Make more efficient use of technical assistance funds;

(F) Provide greater incentives for landowners;

(G) Foster partnerships and improve cooperation with
nongovernmental organizations;

(H) Provide greater environmental benefits;

(I) Tailor and more effectively target conservation programs
administered by federal, state and local governments to the unique
conservation needs of, and opportunities presented by, individual parcels
of eligible land; and

(J) Give landowners an increased level of regulatory certainty.

(4) The State Board of Forestry and the State Department of
Agriculture, in consultation with the State Department of Fish and
Wildlife, shall adopt by rule procedures and criteria for stewardship
agreements. The procedures and criteria shall include, but need not be
limited to:

(a) The certification of a land management plan which shall, at a
minimum, include:

(A) A comprehensive description and inventory of the subject
property, its features and uses; and

(B) A prescription for the protection of resources that exceeds
land management practices, standards and activities otherwise required by
law and that is designed to achieve conservation, restoration and
improvement of fish and wildlife habitat or water quality.

(b) A requirement that each landowner subject to a stewardship
agreement demonstrate a clear capability to carry out the provisions of
the land management plan and have a past record of good compliance with
applicable laws and regulations regarding land use and management.

(5) Each government agency that is a party to a stewardship
agreement shall conduct periodic audits on lands subject to the
stewardship agreement to determine whether the land management plan is
being implemented and whether the agreement should be continued, revised
or discontinued.

(6) Stewardship agreements may provide benefits to landowners that
include, but are not limited to:

(a) Expedited permit processing;

(b) Regulatory certainty;

(c) Priority consideration for cost-share assistance or other
financial incentives and technical assistance; and

(d) Government certification that certain land management practices
have been implemented. [2003 c.539 §31]Note: 541.423 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 541 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.USE OF WATER TO OPERATE WATER-RAISING MACHINERYAny person who owns or has the possessory right to any
land bordering on any lake or natural stream of water shall have the
right to employ wheels, pumps, hydraulic engines, or other machinery for
the purpose of raising water to the level required for use of the water
in irrigating any land belonging to the person; provided, that the use of
the water shall not conflict with the better or prior right of any other
person. [Formerly 541.410]SPLASH DAMS As used in ORS
541.450 to 541.460 and 541.990:

(1) “Splash dam” means a dam constructed and used in the floating
and driving of logs and other lumber products whereby water behind the
dam is released for the purpose of causing or aiding the floating of logs
or other lumber products on a navigable or nonnavigable river in the
waters thereof below the location of the dam.

(2) “Splash dam” does not mean any device used on the waters of
this state for the assembly or storage of logs or other lumber products,
or for any other purpose incidental thereto. [1957 c.163 §1] It is unlawful to operate a splash
dam on any of the navigable or nonnavigable waters of this state. An
officer or agency of this state may not issue any permit for the
construction or maintenance of any dam to be used for splash dam
purposes. [1957 c.163 §2; 2005 c.22 §380] The Attorney
General, upon being informed that any violation of ORS 541.450 to 541.460
or 541.990 (1) has occurred, is hereby empowered to proceed immediately
in the circuit court of the county in which said splash dam is located,
to petition the court for the removal of said splash dam by abatement
proceedings; and all costs in connection therewith incurred by the
Attorney General shall be assessed against the offending person, firm or
corporation. [1957 c.163 §3]RELEASE OF WATER FROM IMPOUNDMENT OR DIVERSION STRUCTURE(1) Whenever it appears to
the satisfaction of the Water Resources Commission upon the commission’s
own determination or upon evidence submitted by any person that the
release of water from an impoundment or diversion structure constructed
before or after May 26, 1959, endangers or may endanger the public
safety, the commission shall send a written notice to the owner or
operator of the structure.

(2) The notice provided for in subsection (1) of this section shall
state:

(a) That the release of water from the impoundment or diversion
structure endangers or may endanger the public safety.

(b) That the owner or operator of the structure shall within a time
to be set by the commission post notices downstream from the structure at
places of public access to the stream to be designated by the commission
warning the public that the stream level below the structure is subject
to fluctuation. [1959 c.624 §1; 1961 c.379 §9a; 1985 c.673 §104](1) Whenever it appears to the satisfaction of the Water
Resources Commission, upon the commission’s own determination or upon
evidence submitted by any person that the present or proposed release of
stored water from an impoundment or diversion structure, including any
water power project, constructed before or after May 1, 1961, results in
rapid increase in the stream level below the structure which creates or
will create a hazard to human life or property, the commission shall
cause written notice of such determination to be mailed to the owner or
operator of the structure.

(2) The notice provided for in subsection (1) of this section shall
state:

(a) That the present or proposed release of stored water from the
impoundment or diversion structure creates or may create an unreasonable
hazard to human life or property.

(b) The manner in which such unreasonable hazard to human life or
property is or may be created.

(c) The action which is required, in the opinion of the commission,
to minimize such unreasonable hazard to human life or property.

(d) That the owner or operator of the impoundment or diversion
structure, within 15 days after the mailing of the notice, may request in
writing that the commission hold a hearing on such unreasonable hazard or
action required to minimize such unreasonable hazard, and that upon
failure to request a hearing the commission shall make an order stating
the terms, limitations and conditions of the action required to minimize
such unreasonable hazard. [1961 c.379 §1; 1985 c.673 §105]If, within 15 days
after the mailing of the notice provided for in ORS 541.515, the owner or
operator of the impoundment or diversion structure fails to request in
writing that the Water Resources Commission hold a hearing, the
commission shall make and file in the Water Resources Department an order
stating the terms, limitations and conditions relating to the release of
water from the structure necessary to minimize unreasonable hazard to
human life or property as set forth in the notice. The order shall become
effective upon filing a copy in the Water Resources Department. The
commission shall cause a copy of the order to be mailed to the owner or
operator of the structure. The order is not subject to appeal. [1961
c.379 §2; 1985 c.673 §106](1) If, within 15 days after mailing of
the notice provided for in ORS 541.515, the owner or operator of the
impoundment or diversion structure requests in writing that the Water
Resources Commission hold a hearing, the commission shall hold a hearing
in accordance with ORS chapter 183 on the hazard to human life or
property which is or will be created by the rapid increase in the stream
level below the structure resulting from the release of water from the
structure and the terms, limitations and conditions relating to such
release of water necessary to minimize such unreasonable hazard.

(2) At least 10 days prior to the hearing the commission, in
addition to the notice requirements of ORS chapter 183, shall cause a
copy of the notice to be published in a newspaper of general circulation
in each county in which the structure is located and in which
unreasonable hazard to human life or property is or may be created. [1961
c.379 §3; 1971 c.734 §83; 1985 c.673 §107] After the
hearing provided for in ORS 541.525, if the Water Resources Commission
determines that the release of stored water from the impoundment or
diversion structure results or will result in rapid increase in the
stream level below the structure and the increase creates or will create
an unreasonable hazard to human life or property, the commission shall
make and file in the offices of the Water Resources Department an order
stating the terms, limitations and conditions relating to the release of
water from the structure necessary to minimize the unreasonable hazard.
In determining what constitutes unreasonable hazard and what terms,
limitations and conditions are necessary to minimize it, the commission
shall consider the likelihood of harm to the public, recreation benefits,
power benefits, agriculture benefits, purpose of the structure, water
flows, extent, nature and time of use by the public and all other
material factors. [1961 c.379 §4; 1971 c.734 §84; 1985 c.673 §108]
An order of the Water Resources Commission under ORS 541.520 or 541.530
may require the owner or operator of an impoundment or diversion
structure to install one or more automatic stream level recording devices
satisfactory to the commission at one or more locations satisfactory to
the commission. The cost of each such device and the installation and
maintenance thereof shall be paid by the owner or operator of the
structure. [1961 c.379 §5; 1985 c.673 §109]
When conditions beyond the control of the owner or operator of an
impoundment or diversion structure, to which an order of the Water
Resources Commission, made as provided in ORS 541.520 or 541.530 relates,
threaten the safety of the structure, and the release of water from the
structure contrary to the terms, limitations and conditions stated in the
order is or may be necessary to remove such threat:

(1) The terms, limitations and conditions of the order shall not
apply to such release of water.

(2) The owner, operator or person in immediate charge of the
structure shall immediately notify the commission or the Water Resources
Department of the situation.

(3) The owner, operator or person in immediate charge of the
structure shall immediately notify, to the best of the person’s ability,
those persons whose life or property may be threatened by such release of
water. [1961 c.379 §6; 1985 c.673 §110] (1) No
person shall fail to comply with an order of the Water Resources
Commission made as provided in ORS 541.520 or 541.530.

(2) The commission may enforce any order made as provided in ORS
541.520 or 541.530, and may prosecute proceedings to enjoin violations of
subsection (1) of this section. [1961 c.379 §§7, 8; 1985 c.673 §111]WATER DEVELOPMENT PROJECTS(Definitions) As used in ORS
541.700 to 541.855, unless the context requires otherwise:

(1) “Commission” means the Water Resources Commission appointed
under ORS 536.022.

(2) “Construction” means the construction, or improvement or
rehabilitation, in whole or in part, of a water development project,
including planning and engineering work, purchasing or refinancing
directly related to such construction or improvement or rehabilitation,
or any combination of such construction or improvement or rehabilitation.
As used in this subsection:

(a) “Purchasing” means the purchasing of materials, land or
existing facilities necessary to complete a water development project.

(b) “Refinancing” includes refinancing existing debt of a water
developer, as defined in subsection (7)(f) to (m) and (o) of this
section, in order to complete a water development project or to provide
adequate security for a water development loan, but does not include
refinancing existing debt only to reduce interest rates or costs to the
borrower or to pay off existing debt.

(3) “Director” means the Water Resources Director appointed
pursuant to ORS 536.032.

(4) “Federal water development project” means any water development
project that receives funding from the federal government, or any agency
or instrumentality of the United States.

(5)(a) “Secondary use” means:

(A) Any water-related recreational use.

(B) Any flood control use.

(C) Any power generation use.

(D) Any water supply system utilized as a domestic water system for
the benefit of an individual residence related to the operation of the
water development project.

(b) “Secondary use” does not include any use that is incompatible
with a water development project.

(6) “Water development project” means:

(a) An undertaking, in whole or in part, in this state for the
purpose of irrigation, including structures for the application of water
for agricultural harvest activities, dams, storage reservoirs, wells or
well systems, pumping plants, pipelines, canals, ditches, revetments,
water supply systems used for the purpose of agricultural temperature
control and any other structure, facility and property necessary or
convenient for supplying lands with water for irrigation purposes.

(b) An undertaking, in whole or in part, in this state for the
purpose of drainage, including ditching, tiling, piping, channel
improvement, pumping plants or other agronomically approved methods of
land drainage that will increase soil versatility and productivity.

(c) An undertaking, in whole or in part, in this state for the
purpose of providing water for municipal use, which may include safe
drinking water for communities with population less than 30,000,
including dams, storage reservoirs, wells or well systems, pumping
plants, treatment facilities, pipelines, canals, ditches, revetments and
all other structures and facilities necessary or convenient for supplying
water. An undertaking may provide water to two or more communities with a
combined population of more than 30,000. An undertaking may be part of a
project that provides water to a community with a population of more than
30,000, but loans of moneys from the Water Development Fund, including
moneys in ORS 285B.563 (11) may be made only to communities served by the
project that have a population of less than 30,000.

(d) An undertaking, in whole or in part, in this state for the
purpose of fish protection, including fish screening or by-pass devices,
fishways and all other structures and facilities necessary or convenient
for providing fish protection.

(e) An undertaking, in whole or in part, in this state for the
purpose of enhancing watershed health or improving fish habitat,
including methods and materials to restore, maintain and enhance the
biological, chemical and physical integrity of the riparian zones and
associated uplands of the state’s rivers, lakes and estuaries systems and
recommended by the Oregon Watershed Enhancement Board established under
ORS 541.360.

(f) Secondary uses in conjunction with projects described in
paragraphs (a) to (e) of this subsection.

(7) “Water developer” means:

(a) Any individual resident of this state;

(b) Any partnership for profit subject to the provisions of ORS
chapter 67 or 70, whose principal income is from farming in Oregon;

(c) Any corporation for profit subject to the provisions of ORS
chapter 60, whose principal income is from farming in Oregon;

(d) Any nonprofit corporation subject to the provisions of ORS
chapter 65, whose principal income is from farming in Oregon;

(e) Any cooperative subject to the provisions of ORS chapter 62,
whose principal income is from farming in Oregon;

(f) Any irrigation district organized under or subject to ORS
chapter 545;

(g) Any water improvement district organized under ORS chapter 552;

(h) Any water control district organized under ORS chapter 553;

(i) Any irrigation or drainage corporation organized under or
subject to ORS chapter 554;

(j) Any drainage district organized under ORS chapter 547 or
subject to all or part of ORS chapter 545;

(k) Any corporation, cooperative, company or other association
formed prior to 1917 for the purpose of distributing water for irrigation
purposes;

(L) Any port district organized under ORS 777.005 to 777.725,
777.915 to 777.953 and 777.990;

(m) Any city or county;

(n) Any organization formed for the purpose of distributing water
for community water supply; or

(o) Any local soil and water conservation district organized under
ORS 568.210 to 568.808 and 568.900 to 568.933. [1977 c.246 §1; 1981 c.166
§1; 1981 c.592 §1; 1985 c.673 §184; 1985 c.677 §65; 1987 c.94 §103; 1987
c.636 §§1, 5; 1989 c.1010 §177; 1991 c.944 §5; 1993 c.765 §89; 1995 c.42
§180; 1997 c.775 §90; 1999 c.212 §1; 1999 c.509 §46](Loan Applications) Of the
applications filed under ORS 541.705 for assistance in constructing a
water development project for municipal use, the Water Resources
Commission shall give preference for approval to those projects required
to be undertaken as a result of a proceeding under ORS 222.840 to 222.915
or 431.705 to 431.760 to alleviate conditions constituting a danger to
public health. [1983 c.407 §13; 1985 c.673 §112] (1) Any water developer may
file with the Water Resources Commission an application to enable the
construction of a water development project as provided in ORS 541.700 to
541.855. The application shall be filed in the manner, be in the form and
contain or be accompanied by any information prescribed by the
commission. The commission, in considering applications, shall encourage
the largest number of users of the Water Development Fund and shall
consider the impact on the family farm units of the state.

(2) In addition to other requirements prescribed by the commission,
an application filed under subsection (1) of this section shall:

(a) Describe the nature and purposes of the proposed water
development project, including the need for the project and reason why
the project would be in the public interest.

(b) State whether any purposes other than improvement of a drinking
water system, irrigation, drainage, fish protection, watershed
enhancement or municipal use, but consistent therewith, will be served by
the proposed water development project, and the nature of the other
purposes, if any.

(c) Set forth or be accompanied by a feasibility study for the
construction, operation and maintenance of the proposed water development
project, an estimate of the costs of construction and if the project
includes as a primary purpose irrigation or drainage, an evaluation of
the agricultural potential of the land from any competent public agency.

(d) State whether any moneys other than those in the Water
Development Fund are proposed to be used for the construction of the
proposed water development project, and whether any other moneys are
available or have been sought for the construction.

(e) Show that the applicant holds or can acquire all lands, other
than public lands, and interests therein and water rights necessary for
the construction, operation and maintenance of the proposed water
development project.

(3) If the application is for a safe drinking water project, the
applicant also shall demonstrate that:

(a) The applicant is a city, county, district, water authority or
other political subdivision of the state or an organization operated on a
not-for-profit basis that makes drinking water available to members of
the general public;

(b) The primary use of the loan will be to improve a drinking water
system for the purpose of complying with applicable state or federal
drinking water quality regulations; and

(c) The applicant has:

(A) Developed a water system master plan; and

(B) Either has a coordination agreement in place as defined in ORS
195.020, 195.025 and 197.712 or can demonstrate that options to find a
coordinated solution to the system’s drinking water problems have been
fully explored. [1977 c.246 §2; 1981 c.592 §2; 1985 c.673 §113; 1987
c.636 §2; 1991 c.944 §6; 1993 c.577 §38] (1) Upon receipt of an
application filed as provided in ORS 541.705, the Water Resources
Commission shall determine whether the feasibility study described in ORS
541.705 for the water development project set forth in or accompanying
the application is satisfactory and if the commission determines that it
is not satisfactory, the commission may:

(a) Reject the application;

(b) Require the applicant to submit additional information and
revision of the feasibility study as may be necessary; or

(c) Make such revisions of the feasibility study as the commission
considers necessary to make the plan satisfactory.

(2) Except as provided in subsection (3) of this section, the
commission shall charge and collect from the applicant at the time the
application is filed, a fee of $100. In addition, the commission shall
charge the applicant the amount required to reimburse the commission for
costs that exceed the application fee incurred in connection with the
application. Moneys referred to in this subsection shall be paid into the
Water Development Administration and Bond Sinking Fund.

(3) The commission may establish by rule an application fee of less
than $100 for a water development project that is for fish protection or
for watershed enhancement. [1977 c.246 §3; 1985 c.673 §114; 1987 c.636 §3]Nothing in ORS 541.700 to 541.855
is intended to prevent an applicant from employing a private planning
firm, engineering firm and construction firm to perform the planning
work, engineering work and construction on the proposed water development
project of the applicant. [1977 c.246 §4] The Water
Resources Commission may approve the financing for the construction of a
water development project described in an application filed as provided
in ORS 541.705 using moneys in the Water Development Fund, secured by a
first, parity or second lien in the manner provided in ORS 541.740 if,
after investigation the commission finds that:

(1) The proposed water development project is feasible and a
reasonable risk from practical and economic standpoints;

(2) The plan for the construction, operation and maintenance of the
proposed water development project is satisfactory and, if the primary
purposes of the project include irrigation or drainage, the agricultural
potential is confirmed;

(3) The plan for construction and operation will provide
multipurpose facilities, to the extent practicable;

(4) The applicant is a qualified, credit-worthy and responsible
water developer and is willing and able to enter into a contract with the
commission for construction and repayment as provided in ORS 541.730;

(5) Moneys in the Water Development Fund are or will be available
for the construction of the proposed water development project;

(6) There is a need for the proposed water development project, the
proposed project is in the public interest and the applicant’s financial
resources are adequate to provide the working capital needed to operate
and maintain the project; and

(7) The construction cost associated with any secondary use does
not exceed the construction cost of the primary use of the water
development project. [1977 c.246 §5; 1981 c.166 §2; 1981 c.592 §3; 1985
c.673 §115; 1999 c.212 §2](Loan Contracts)
If the Water Resources Commission approves the financing for the
construction of a water development project, the commission, on behalf of
the state, and the applicant may enter into a loan contract, secured by a
first, parity or second lien in the manner provided in ORS 541.740, which
shall set forth, among other matters:

(1) That the commission, on behalf of the state, must approve the
arrangements made by the applicant for the construction, operation and
maintenance of the water development project, using moneys in the Water
Development Fund for the construction.

(2) A plan for repayment by the applicant to the Water Development
Administration and Bond Sinking Fund of moneys borrowed from the Water
Development Fund used for the construction, operation and maintenance of
the water development project and interest on such moneys used at such
rate of interest as the commission determines is necessary to provide
adequate funds to recover administrative expenses incurred under ORS
541.700 to 541.855. The repayment plan, among other matters:

(a) Shall provide for commencement of repayment by the water
developer of moneys used for construction and interest thereon not later
than two years after the date of the loan contract or at such other time
as the commission may provide;

(b) May provide for reasonable extension of the time for making any
repayment in emergency or hardship circumstances, if approved by the
commission;

(c) Shall provide for such evidence of debt assurance of and
security for repayment by the applicant as are considered necessary or
proper by the commission; and

(d) Shall set forth a schedule of payments and the period of loan
which shall not exceed the usable life of the constructed project, or 30
years from the date of the first payment due under the financial plan,
whichever is less, and shall also set forth the manner of determining
when loan payments are delinquent. The payment schedule shall include
repayment of interest which accrues during any period of delay in
repayment authorized by paragraph (a) of this subsection, and the payment
schedule may require payments of varying amounts for collection of such
accrued interest.

(3) Provisions satisfactory to the commission for field engineering
and inspection, the commission to be the final judge of completion of the
contract.

(4) That the liability of the state under the contract is
contingent upon the availability of moneys in the Water Development Fund
for use in the construction, operation and maintenance of the water
development project.

(5) Such further provisions as the commission considers necessary
to insure expenditure of the funds for the purposes set forth in the
approved application.

(6) That the commission may institute an appropriate action or suit
to prevent use of the facilities of a water development project financed
by the Water Development Fund by any person who is delinquent in the
repayment of any moneys due the Water Development Administration and Bond
Sinking Fund.

(7) That a loan for a water development project is assignable or
transferable to a third party only with the prior approval of the
commission. The commission may approve a loan assignment or transfer only
if the commission finds that the assignee or transferee qualifies as a
water developer as defined in ORS 541.700 (7) and the assignment or
transfer does not have serious adverse effect upon the family farm unit
structure in this state. [1977 c.246 §6; 1981 c.166 §3; 1985 c.673 §116;
1999 c.212 §3]If the Water Resources Commission approves a loan for a water
development project or federal water development project, the State
Treasurer shall pay moneys for such project from the Water Development
Fund in accordance with the terms of the loan contract, as prescribed by
the commission. [1977 c.246 §7; 1985 c.673 §117] (1)(a) When a
loan is made to a water developer other than a water developer described
in ORS 541.700 (7)(a), (b), (c) or (d) for the construction of a water
development project under ORS 541.700 to 541.855, the State of Oregon has
a lien for the amount of the unpaid balance of the loan. The lien created
by this subsection attaches to the real property held in fee simple of
the water developer or to the user charges, including interest, owed to
or received by the water developer. The lien created by this subsection
does not attach to a leasehold. At the discretion of the Water Resources
Commission, the lien may attach to all real property, whether owned by
the water developer or other persons, which is served by the water
development project or which is served by a water source enhanced or
restored by the water development project.

(b) Except for tax liens, the lien created by this section is prior
and superior to all other liens or encumbrances upon the affected real
property or user charges, without regard to the date on which the other
liens or encumbrances attached to the real property or user charges.
However, the Water Resources Commission may elect to accept a second or
parity lien position against the real property or user charges encumbered
by this section, if the commission determines the lien position would
provide adequate security for the water development loan, as set forth in
rules adopted by the commission.

(c) The existence or foreclosure of the lien created by this
subsection shall not cause the acceleration of payment of user charges or
other payments on affected real property. Such payments shall continue to
be made as they become due.

(2) When a loan is made under ORS 541.700 to 541.855 to a water
developer described in ORS 541.700 (7)(a), (b), (c) or (d), the loan
shall be secured by a mortgage or security agreement in the full amount
of the loan. The mortgage or security agreement shall be a first lien, or
a parity or second lien if the commission determines it would provide
adequate security, upon such real property of the water developer as the
commission shall require for adequate security.

(3) When a lien created by subsection (1) of this section is
foreclosed, a person whose real property is subject to the lien solely
because that real property is irrigated or drained by reason of a water
development project or because the real property is served by a water
source improved by a water development project for watershed enhancement,
shall only have that portion of real property subjected to foreclosure
that represents that person’s pro rata share of the indebtedness.

(4) When a loan is made to a water developer under ORS 541.700 to
541.855, the commission shall file notice of the loan with the recording
officer of each county in which is situated real property of the water
developer or real property to which the lien created by subsection (1) or
(2) of this section may attach. The notice shall contain a description of
the real property of the water developer, a description of any other real
property that will be served by the water development project and to
which the lien is to attach, the amount of the loan and a statement that
the State of Oregon has a lien against such real property as provided in
subsection (1) or (2) of this section.

(5) Upon payment of all amounts loaned to a water developer
pursuant to ORS 541.700 to 541.855, the commission shall file with each
recording officer referred to in subsection (4) of this section a
satisfaction notice that indicates repayment of the loan.

(6) The commission may cause to be instituted appropriate
proceedings to foreclose liens for delinquent loan payments, and shall
pay the proceeds of any such foreclosure, less expenses incurred in
foreclosing, into the Water Development Administration and Bond Sinking
Fund. In a foreclosure proceeding, the commission may bid on property
offered for sale in the proceeding and may acquire title to the property
on behalf of the state.

(7) The commission may take any action, make any disbursement, hold
any funds or institute any action or proceeding necessary to protect the
state’s interest.

(8) Notwithstanding ORS 293.240, the commission may compromise,
release, discharge, waive, cancel or settle a claim against a water
developer if such action:

(a) Is consistent with the purposes of ORS 541.700 to 541.855;

(b) Does not impair the ability to pay the administrative expenses
of the commission or the obligations of any bonds outstanding; and

(c) Is, under the circumstances, the means most likely to preserve
the claim or to recover the greatest part of the amount claimed.

(9) The commission, by rule, may set out procedures to be used when
a water developer is unable to make required loan payments because of
illness, injury, death, involuntary job loss or economic stress due to
factors beyond individual control. The rules shall be effective to the
extent permitted by the terms of the contracts associated with affected
loans. The rules:

(a) May provide for a temporary reduction of loan payment;

(b) May provide for any other solution jointly agreed to by the
water developer and the commission;

(c) Shall provide for repayment of the amount of any loan payments
reduced under the rules in accordance with terms and conditions agreed
upon by the borrower and the commission; and

(d) Shall require the commission to consider the effect of any
payment reduction or delay on the solvency of the program as a whole, on
estimates of the most probable financial position of the program in the
future and on other borrowers in the program.

(10)(a) Upon application by a water developer, the commission may
grant a partial release of security when the commission determines that
granting the requested release will not jeopardize the water development
loan program’s security position.

(b) The remaining property must qualify as security for the loan
balance under the applicable law.

(c) Notwithstanding compliance with paragraph (b) of this
subsection, the commission may require that the loan balance be reduced
as consideration for granting the requested release. [1977 c.246 §8; 1981
c.166 §4; 1985 c.673 §118; 1987 c.636 §4; 1989 c.950 §3; 1999 c.212 §4] The Water Resources
Commission shall not attempt to recover interest amounts credited or paid
before January 1, 1986, to any water developer who borrowed moneys under
ORS 541.700 to 541.855 and shall adjust the borrower’s account balance as
necessary to reflect those credits as lawful payments on the borrower’s
contractual obligations to the state. [1989 c.950 §2]Note: 541.741 was added to and made a part of ORS 541.700 to
541.855 by legislative action but was not added to any smaller series
therein. See Preface to Oregon Revised Statutes for further explanation.If a water developer fails to comply with a contract
entered into with the Water Resources Commission for construction and
repayment as provided in ORS 541.730, the commission, in addition to
remedies provided in ORS 541.740, may seek other appropriate legal
remedies to secure the loan and may contract with any other water
developer as provided in ORS 541.730 for continuance of construction and
for repayment of moneys from the Water Development Fund used to continue
construction and interest on the moneys. [1977 c.246 §8; 1981 c.166 §4;
1985 c.673 §119]Any water developer that enters into a contract with
the Water Resources Commission for construction and repayment as provided
in ORS 541.730 or 541.745 may obtain moneys for repayment to the Water
Development Administration and Bond Sinking Fund under the contract in
the same manner as other moneys are obtained for other authorized
purposes. The commission may also provide by contract or otherwise, for
the construction, operation and maintenance of a water development
project until the project is assumed by such new water developer. Moneys
in the Water Development Fund may be used for such construction,
operation and maintenance, and if so used, shall be repaid to the Water
Development Administration and Bond Sinking Fund by the contracting water
developer. [1977 c.246 §10; 1985 c.673 §120]Except as provided in ORS 541.760:

(1) If any water development project investigated under ORS 541.700
to 541.855, other than a safe drinking water project financed in whole or
in part from moneys in the Special Public Works Fund created by ORS
285B.455 or the Water Fund created by ORS 285B.563, is constructed with
funds other than those loaned under ORS 541.700 to 541.855, the amount
expended by the state shall immediately become due and payable, together
with interest at the rate provided in ORS 541.730 (2) from the date of
notification of the amount due.

(2) If any water development project is refinanced or financial
assistance is obtained from other sources, other than a safe drinking
water project financed in whole or in part from moneys in the Special
Public Works Fund created by ORS 285B.455 or the Water Fund created by
ORS 285B.563, after the execution of the loan from the state, all such
funds shall be first used to repay the state. [1977 c.246 §14; 1991 c.944
§7; 1995 c.79 §304]If a water development project has any secondary use, and if
the water developer receives from any source other than the Water
Development Fund any funds to assist in the construction, operation or
maintenance of such secondary use, the amount of the loan to the water
developer from the Water Development Fund shall be limited to that amount
necessary for the construction of those portions of the project not
funded by other sources. [1977 c.246 §15] In addition
to those uses of moneys in the Water Development Fund otherwise provided
in ORS 541.700 to 541.855, the Water Resources Commission may authorize
loans of such moneys to those persons to whom approval has been granted
by the federal government or any agency or instrumentality of the United
States for the funding and construction of federal water development
projects. Any such person shall apply for a loan to the commission, in
such form as the commission prescribes, and shall furnish such proof of
federal approval for funding and construction as the commission considers
appropriate. [1977 c.246 §16; 1985 c.673 §121; 1991 c.944 §8; 1999 c.212
§5] If the
Water Resources Commission approves an application for the loan of moneys
authorized by ORS 541.765, the commission shall enter into a loan
contract with the borrower that provides, among other matters:

(1) That the loan be secured by a first lien, or parity or second
lien if appropriate, in the same manner as provided in ORS 541.740.

(2) That the loan bear interest at the same rate of interest as
provided in ORS 541.730.

(3) That the loan becomes due and payable to the Water Development
Administration and Bond Sinking Fund not later than 60 days after the
date that federal funds for the acquisition of easements and rights of
way for the project are paid to the borrower or 30 years from the date of
the loan, whichever is earlier.

(4) Such provisions as the commission considers necessary to insure
expenditure of the moneys loaned for the purposes provided in ORS 541.765.

(5) That the commission may cause to be instituted appropriate
proceedings to foreclose liens for delinquent loan payments, and shall
pay the proceeds of any such foreclosure, less expenses in foreclosing,
into the Water Development Administration and Bond Sinking Fund. [1977
c.246 §17; 1981 c.166 §5; 1985 c.673 §122; 1999 c.212 §6](Bonds) In order to provide
funds for the purposes specified in Article XI-I (1) of the Oregon
Constitution, bonds may be issued in accordance with the provisions of
ORS 286.031 to 286.061. [1977 c.246 §19; 1981 c.660 §45] Except for the
proceeds of refunding bonds, all moneys obtained from the sale of bonds
under ORS 541.780 to 541.815 shall be credited by the State Treasurer to
the Water Development Fund. Such moneys shall be used only for the
purposes stated in Article XI-I (1), Oregon Constitution, and ORS
541.700, 541.705 to 541.770 and 541.835. If there are insufficient funds
in the Water Development Administration and Bond Sinking Fund to make the
payments set forth in ORS 541.830, moneys in the Water Development Fund
may be transferred to the Water Development Administration and Bond
Sinking Fund. Pending the use of moneys in the Water Development Fund for
the proper purposes, such moneys may be invested in the manner provided
by law. [1977 c.246 §20; 1981 c.660 §46; 1989 c.950 §4](1) The State Treasurer
shall make payment of the principal of and the interest on any bond
issued under ORS 541.780 to 541.815 from the Water Development
Administration and Bond Sinking Fund.

(2) The State Treasurer shall compute and determine in January of
each year, after the sale of bonds under ORS 541.780 to 541.815, the
amount of principal and interest which will fall due during such year on
bonds then outstanding and unpaid and shall maintain or hold in the Water
Development Administration and Bond Sinking Fund sufficient moneys to pay
such maturing obligations. [1977 c.246 §§23,26] No bonds shall be
issued or sold under ORS 541.780 to 541.815 nor indebtedness incurred
thereunder, which, singly or in the aggregate with previous debts or
liabilities incurred for the construction, operation and maintenance of
water development projects and for the acquisition of easements and
rights of way for federal water development projects shall exceed any
limitation provided in the Oregon Constitution at the date of the
issuance and sale of such bonds. If the maximum aggregate principal sum
of bonds authorized to be issued under ORS 541.780 to 541.815, exceeds
any limitation provided in the Oregon Constitution, bonds shall be issued
under ORS 541.780 to 541.815, in the aggregate principal sum of not to
exceed that authorized under the limitation provided in the Oregon
Constitution. [1977 c.246 §27](Administration)(1) There hereby is created the Water
Development Administration and Bond Sinking Fund, separate and distinct
from the General Fund, to provide for payment of:

(a) Administrative expenses of the Water Resources Commission and
the Water Resources Department in processing applications, investigating
proposed water development projects and federal water development
projects under ORS 541.700 to 541.855 and servicing and collecting
outstanding loans made under ORS 541.700 to 541.855, if the expense is
not paid directly by the applicant, including principal and interest due
on bonds outstanding. These administrative expenses also may include all
costs associated with the issuance of bonds and the funding of any credit
enhancements or reserves determined to be necessary or advantageous in
connection with the bonds.

(b) Administrative expenses of the State Treasurer in carrying out
the duties, functions and powers imposed upon the State Treasurer by ORS
541.700 to 541.855.

(c) Principal and interest of all bonds issued pursuant to the
provisions of ORS 541.780 to 541.815.

(2) The fund created by subsection (1) of this section shall
consist of:

(a) Application fees required by ORS 541.710.

(b) Repayments of moneys loaned to water developers from the Water
Development Fund, including interest on such moneys.

(c) Repayments of moneys loaned for the acquisition of easements
and rights of way for federal water development projects, including
interest on such moneys.

(d) Such moneys as may be appropriated to the fund by the
Legislative Assembly, including appropriations dedicated to the partial
payment for or repayment of projects affording public benefits.

(e) Moneys obtained from the sale of refunding bonds and any
accrued interest on such bonds.

(f) Moneys received from ad valorem taxes levied pursuant to
Article XI-I(1), Oregon Constitution, and all moneys that the Legislative
Assembly may provide in lieu of such taxes.

(g) Interest earned on cash balances invested by the State
Treasurer.

(h) Any revenues received by the commission under the provisions of
ORS 541.745.

(i) Moneys transferred from the Water Development Fund.

(3) The moneys referred to in subsection (2) of this section are
continuously appropriated to the commission for the purposes provided in
subsection (1) of this section.

(4) The commission, with the approval of the Governor, may identify
those projects financed under the provisions of ORS 541.700 to 541.855
which offer significant public benefit, and recommend to the Legislative
Assembly funding of those projects in proportion to the public benefits
offered.

(5) The commission, with the approval of the State Treasurer, may
transfer moneys from the fund created under subsection (1) of this
section to the Water Development Fund if:

(a) A cash flow projection shows that the transfer will not have
any negative impact on the commission’s ability to pay bond principal,
interest and administration costs;

(b) The transfer will not create the need for issuance of any
bonds; and

(c) The transfer, together with loans outstanding from prior
transfers and not refinanced by funds derived directly from a bond sale,
shall not exceed $1.

(6) The transfer amount authorized by subsection (5) of this
section may be increased by the Emergency Board. [1977 c.246 §28; 1981
c.172 §1; 1985 c.673 §123; 1989 c.587 §3; 1989 c.950 §5; 1991 c.944 §9] All moneys in the Water
Development Fund created by Article XI-I (1), Oregon Constitution, hereby
are appropriated continuously to the Water Resources Commission and shall
be used for the purposes provided in ORS 541.700 to 541.855. Moneys
expended from the fund may include those expended or to be expended for
engineering, legal fees and acquisition of water rights and property
required for rights of way or facility locations. Interest earned by the
fund shall be credited to the fund. [1977 c.246 §18; 1985 c.673 §124;
1989 c.966 §61](1) If there are insufficient
funds in the Water Development Administration and Bond Sinking Fund to
make the payments referred to in ORS 541.830 (1), the Water Resources
Commission may request the funds necessary for such payments from the
Legislative Assembly within the budget authorized by the Legislative
Assembly or as that budget may be modified by the Emergency Board.

(2) When the commission determines that moneys in sufficient amount
are available in the Water Development Administration and Bond Sinking
Fund, the commission shall reimburse the General Fund without interest,
in an amount equal to the amount allocated by the Legislative Assembly or
the Emergency Board pursuant to subsection (1) of this section. The
moneys used to reimburse the General Fund under this subsection shall not
be considered a budget item on which a limitation is otherwise fixed by
law, but shall be in addition to any specific appropriations or amounts
authorized to be expended from continually appropriated moneys. [1977
c.246 §30; 1985 c.673 §125; 1991 c.703 §48] (1) In accordance with the applicable provisions of
ORS chapter 183, the Water Resources Commission may adopt rules necessary
to carry out ORS 541.700 to 541.855.

(2) In adopting rules establishing guidelines or criteria for
awarding loans or grants for drinking water projects, the commission
shall coordinate the Water Resources Department’s rulemaking process with
the Economic and Community Development Department and the Department of
Human Services in order to ensure that rules adopted under this
subsection are consistent with rules adopted under ORS 285B.563 and
431.120. The rules adopted under this subsection shall:

(a) Require the installation of meters on all new active service
connections from any municipal drinking water distribution lines funded
under ORS 285B.560 to 285B.599, 431.120, 541.700, 541.705, 541.755,
541.765, 541.830 and 541.845; and

(b) Require a plan, to be adopted by the municipality, for
installation of meters on all service connections throughout the drinking
water system.

(3) As used in this section, “service connection” does not include
fire hydrants, fire sprinkler system connections, line blow-offs and
drains, standby emergency interties, valve controlled drinking fountains
and other similar intermittently used connections. [1977 c.246 §13; 1985
c.673 §126; 1991 c.944 §10; 1995 c.212 §2; 2005 c.835 §26] The Water
Resources Commission may accept gifts of money or other property from any
source, given for the purposes of ORS 541.700 and 541.705 to 541.770.
Money so received shall be paid into the Water Development Fund. Money or
other property so received shall be used for the purposes for which
received. [1977 c.246 §12; 1985 c.673 §127] The
Water Resources Commission shall make available to the Legislative
Assembly and the Governor a biennial report of the transactions of the
Water Development Fund and the Water Development Administration and Bond
Sinking Fund in such detail as will accurately indicate the transactions
and the condition of the funds. [1977 c.246 §29; 1985 c.673 §128]NORTH UMPQUA RIVER DAMS(1) No person shall construct, operate or
maintain, and no officer or agency of this state shall issue any permit
for the construction, operation or maintenance of, any dam or
hydroelectric facility on:

(a) That portion of the North Umpqua River between Soda Springs Dam
and the confluence of the North Umpqua River and South Umpqua River; or

(b) The main stem Umpqua River from the confluence of the North
Umpqua River and the South Umpqua River to the ocean.

(2) Nothing in this section applies to the repair, structural
repair, maintenance or improvement of any dam constructed on the North
Umpqua River prior to November 1, 1981, with the approval of the Water
Resources Commission and the State Department of Fish and Wildlife. The
commission and the State Department of Fish and Wildlife shall not
unreasonably withhold or delay such approval, but may withhold approval
for reasonable cause, including but not limited to a substantiated
finding that the repairs, structural repairs, maintenance or improvements:

(a) Fail to comply with applicable safety rules or regulations;

(b) Raise the height of the dam; or

(c) Diminish the current ability of anadromous fish to travel past
the dam.

(3) No person shall appropriate and no officer or agency of this
state shall issue or approve any license, permit or certificate for the
use of water for hydroelectric generation at a dam at the location
referred to in subsection (1) of this section. [1981 c.151 §2; 1983 c.652
§2; 1985 c.673 §129; 1991 c.479 §1]Nothing contained in ORS 541.875 shall be
construed to impose any additional obligation on any governmental entity
to pay for the repair, structural repair, maintenance or improvement of
any existing dam referred to in ORS 541.875 (2). [1991 c.479 §2]Note: 541.880 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 541 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.PENALTIES (1) Any person, or any officer of any firm or
corporation who shall be found guilty of constructing any splash dam for
the floating of logs or other lumber products on any stream or other body
of water in the State of Oregon after August 20, 1957, shall be fined not
more than $1,000, or shall be imprisoned not more than one year in the
county jail in the county in which such conviction is entered, or by both
fine and imprisonment.

(2) Violation of ORS 541.510 is a misdemeanor._______________

USA Statutes : oregon