(1)(a) Within 15 days after receiving an application, the Water Resources Department shall determine whether the application contains the information listed under ORS 537.140 (1) and is complete and not defective, including the payment of all applicable fees or fee amounts required under ORS 537.140 (5). (b) If the department determines that the application is incomplete or defective or that not all applicable fees or fee amounts have been paid, the department shall return the fees paid and the application. (2) Upon determining that an application contains the information listed under ORS 537.140 (1) and is complete and not defective, the department shall indorse on the application the date upon which the application was received at the department, which shall be the priority date for any water right issued in response to the application. All applications that comply with the provisions of law shall be recorded in a suitable book kept for that purpose. (3) If an application is complete and not defective, the department shall determine whether the proposed use is prohibited pursuant to a restriction under ORS 536.415 (3), if the department has information sufficient to make the determination at the time of application intake. If the proposed use is prohibited as described in this subsection, the department shall return the application and all or a portion of the fees paid to the applicant with an explanation of the reason for the return. (4) If the proposed use is not prohibited under subsection (3) of this section, the department shall undertake an initial review of the application and make a preliminary determination of: (a) Whether the proposed use is restricted or limited by statute or rule; (b) The extent to which water is available from the proposed source during the times and in the amounts requested; and (c) Any other issue the department identifies as a result of the initial review that may preclude approval of or restrict the proposed use. (5)(a) Upon completion of the initial review and no later than 30 days after determining an application to be complete and not defective as described in subsection (1) of this section, the department shall notify the applicant of its preliminary determinations and allow the applicant 90 days from the date of notice within which to notify the department to stop processing the application or to proceed with the application. (b) If, within 90 days from the date of the notice, the applicant notifies the department to stop processing the application or does not notify the department whether to proceed with processing the application, the department shall close the file for the application and take no further action on the application. (c) If, within 90 days from the date of the notice, the applicant notifies the department to proceed with the application and pays any remaining portion of the applicable examination fees, as described in ORS 536.056, the department shall: (A) Proceed with processing the application; and (B) Give notice of the initial review in the weekly public notice of the department and accept written public comments for 30 days. The notice must include a request for comments on the application and information pertaining to how an interested person may obtain future notices about the application and a copy of the proposed final order. (6) Within 30 days after the public notice under subsection (5) of this section, any person interested in the application shall submit written comments to the department. Any person who asks to receive a copy of the departments proposed final order shall submit to the department the fee required under ORS 536.050 (1). [Amended by 1985 c.673 28; 1993 c.557 2; 1995 c.416 9; 2007 c.267 2; 2009 c.819 6,13; 2013 c.644 3,4; 2017 c.571 3,4; 2021 c.515 2; 2025 c.282 14] Note: The amendments to 537.150 by section 14, chapter 282, Oregon Laws 2025, become operative April 1, 2026, and apply to applications and petitions submitted on or after April 1, 2026. See section 30, chapter 282, Oregon Laws 2025, as amended by section 21b, chapter 575, Oregon Laws 2025, and see section 48, chapter 282, Oregon Laws 2025, as amended by section 21c, chapter 575, Oregon Laws 2025. The text that is operative until April 1, 2026, is set forth for the users convenience. 537.150. (1) Within 15 days after receiving an application, the Water Resources Department shall determine whether the application contains the information listed under ORS 537.140 (1) and is complete and not defective, including the payment of all fees required under ORS 537.140 (5). If the department determines that the application is incomplete or defective or that not all fees have been paid, the department shall return the fees paid and the application. (2) Upon determining that an application contains the information listed under ORS 537.140 (1) and is complete and not defective, the department shall indorse on the application the date upon which the application was received at the department, which shall be the priority date for any water right issued in response to the application. All applications that comply with the provisions of law shall be recorded in a suitable book kept for that purpose. (3) If an application is complete and not defective, the department shall determine whether the proposed use is prohibited by ORS chapter 538. If the proposed use is prohibited by ORS chapter 538, the department shall reject the application and return all fees to the applicant with an explanation of the statutory prohibition. (4) If the proposed use is not prohibited by ORS chapter 538, the department shall undertake an initial review of the application and make a preliminary determination of: (a) Whether the proposed use is restricted or limited by statute or rule; (b) The extent to which water is available from the proposed source during the times and in the amounts requested; and (c) Any other issue the department identifies as a result of the initial review that may preclude approval of or restrict the proposed use. (5) Upon completion of the initial review and no later than 30 days after determining an application to be complete and not defective as described in subsection (1) of this section, the department shall notify the applicant of its preliminary determinations and allow the applicant 14 days from the date of mailing within which to notify the department to stop processing the application or to proceed with the application. If the applicant notifies the department to stop processing the application, the department shall return the application and all fees paid in excess of $310. If the department receives no timely response from the applicant, the department shall proceed with the application. (6) Within seven days after proceeding with the application under subsection (5) of this section, the department shall give public notice of the application in the weekly notice published by the department. The notice shall include a request for comments on the application and information pertaining to how an interested person may obtain future notices about the application and a copy of the proposed final order. (7) Within 30 days after the public notice under subsection (6) of this section, any person interested in the application shall submit written comments to the department. Any person who asks to receive a copy of the departments proposed final order shall submit to the department the fee required under ORS 536.050 (1). Note: Sections 15 and 16, chapter 282, Oregon Laws 2025, provide: Sec. 15. (1) Notwithstanding ORS 536.031 (1), on and after the operative date specified in section 48 of this 2025 Act [April 1, 2026], the Water Resources Department shall return any pending application described in ORS 537.150 for which: (a) Receipt by the department occurred before the operative date specified in section 48 of this 2025 Act; (b) A proposed final order has not been issued before the operative date specified in section 48 of this 2025 Act; and (c) The proposed use of water is prohibited pursuant to a restriction described in section 13 (3) of this 2025 Act [536.415 (3)] that was in effect at the time the application was received. (2) The department shall return all or a portion of the fees paid for pending applications returned under subsection (1) of this section. Sec. 16. Section 15 of this 2025 Act is repealed on January 2, 2050.
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