Oregon Revised Statutes

Or. Rev. Stat. § 537.260 (2026)

Cancellation of permit for failure of proof of completion of appropriation; issuance of limited certificate; contest of issuance of certificate; exception for municipalities

✓ current as of May 2026
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      537.260 Cancellation of permit for failure of proof of completion of appropriation; issuance of limited certificate; contest of issuance of certificate; exception for municipalities. (1) Except as provided under subsection (4) of this section for a permit issued to a municipality, whenever the time within which any appropriation under a permit should have been perfected has expired and the owner of the permit fails or refuses within three months thereafter to submit to the Water Resources Department proof of completion of the appropriation as required by ORS 537.230 and 537.250, the department may, after 60 days’ notice by registered mail or by certified mail with return receipt, order the cancellation of the permit. The cancellation shall have the same force and effect as cancellation of a permit in the proceedings provided for in ORS 537.410 to 537.450.

      (2) The department may determine the extent to which an appropriation has been perfected under any permit at the time of submission of final proof provided for in ORS 537.250, and shall limit the certificate provided for in that section to a description of such appropriation as has been actually perfected to the extent that the water applied for has been actually applied to the beneficial use contemplated in the permit.

      (3) Any person owning an application, permit or water right certificate subsequent in priority may jointly or severally contest before the department the issuance of the water right certificate at any time before it has issued, and after the time has expired for the completion of the appropriation under the permit, or within three months after issuance of the certificate. The contest shall be brought upon application made, and hearing shall be had in the same manner and after notice as provided in ORS 537.420 for proceedings for cancellation of permits. The department, in a final order, may cancel the permit or determine the extent to which the appropriation claimed thereunder has been perfected, and issue a water right certificate accordingly, or if a certificate has been issued, in the case of a contest within three months after its issuance, the department may cancel the water right certificate, or affirm its issuance, and if the water right certificate in such case is canceled, the permit upon which it is based shall also be canceled.

      (4) A municipality may partially perfect not less than 25 percent of the water authorized by its permit without loss of priority or cancellation of the municipality’s permit under this section. If a municipality defers perfection of its water right under this section, the department shall issue a certificate under ORS 537.250 only for the amount perfected. Upon perfection of the deferred amount, the municipality shall request a water right certificate for the remaining portion of the water applied for in the original permit application. As used in this section, “municipality” includes a city, a port formed under ORS 777.005 to 777.725 and 777.915 to 777.953, a domestic water supply district formed under ORS chapter 264 or a water authority formed under ORS chapter 450. [Amended by 1983 c.740 §211; 1985 c.673 §38; 1989 c.707 §2; 1991 c.249 §43; 1993 c.577 §35; 1995 c.416 §37]

Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 1969–2023 · leading case: Waterwatch of Oregon, Inc. v. Water Resources Comm'n, 88 P.3d 327 (Or. Ct. App. 2004).
Waterwatch of Oregon, Inc. v. Water Resources Comm'n, 88 P.3d 327 (Or. Ct. App. 2004). · cites it 4× “13 Respondents also rely on ORS 537.260 to support their position. They argue that that statute makes clear that the legislature intended municipalities to be able to develop and partially perfect water rights incrementally.”
Waterwatch of Oregon, Inc. v. Water Resources Dep't, 316 P.3d 330 (Or. Ct. App. 2013). · cites it 5× “250 which, after the expiration of three months from the date it is issued, has not been contested and canceled in the manner provided in ORS 537.260 [11] ***, shall be conclusive evidence of the priority and extent of the appropriation therein described in any proceeding in any…”
Green v. Wheeler, 458 P.2d 938 (Or. 1969). · cites it 4× “ORS 537.260 (1) provides as follows: “Whenever the time within which any appropriation under a permit should have been perfected has expired and the owner of the permit fails or refuses within three months thereafter to submit to the State Engineer proof of completion of the…”
Wilber v. Wheeler, 543 P.2d 1052 (Or. 1975). · cites it 4× “250 which, after the expiration of three months from the date it is issued, has not been contested and canceled in the manner provided in ORS 537.260, and a water right certificate, when issued under ORS 539.”
Hale v. Water Resources Dep't, 55 P.3d 497 (Or. Ct. App. 2002). “That much is confirmed by ORS 537.260(2), which provides that the department is to determine “the extent to which an appropriation has been perfected under any permit at the time of submission of final proof provided for in ORS 537.”
Kerivan v. Water Resources Comm'n, 72 P.3d 659 (Or. Ct. App. 2003). “250 which, after the expiration of three months from the date it is issued, has not been contested and canceled in the manner provided in ORS 537.260, and a water right certificate, when issued under ORS 539.”
Gass v. Water Resources Dep't, 604 P.2d 432 (Or. Ct. App. 1979). · cites it 5× “In February, 1972, the Department notified the seller that the water had not yet been applied to the beneficial use authorized by the permit and that, unless proof of "beneficial use is received within 60 days, *** the permit(s) may be cancelled without further notice” pursuant…”
Bridge Creek Ranch v. Water Resources Dept. (Or. Ct. App. 2023). “ORS 537.260. In the second phase, the permittee applies for a water right certificate to appropriate water, which is issued only after the beneficial use identified in the permit is fully developed.”
— Or. Rev. Stat. § 537.260(1) — 2 cases
Waterwatch of Oregon, Inc. v. Water Resources Dep't, 316 P.3d 330 (Or. Ct. App. 2013). “250 which, after the expiration of three months from the date it is issued, has not been contested and canceled in the manner provided in ORS 537.260 [11] ***, shall be conclusive evidence of the priority and extent of the appropriation therein described in any proceeding in any…”
Gass v. Water Resources Dep't, 604 P.2d 432 (Or. Ct. App. 1979). “In February, 1972, the Department notified the seller that the water had not yet been applied to the beneficial use authorized by the permit and that, unless proof of "beneficial use is received within 60 days, *** the permit(s) may be cancelled without further notice” pursuant…”
— Or. Rev. Stat. § 537.260(2) — 1 case
Hale v. Water Resources Dep't, 55 P.3d 497 (Or. Ct. App. 2002). “That much is confirmed by ORS 537.260(2), which provides that the department is to determine “the extent to which an appropriation has been perfected under any permit at the time of submission of final proof provided for in ORS 537.”
— Or. Rev. Stat. § 537.260(3) — 1 case
Waterwatch of Oregon, Inc. v. Water Resources Dep't, 316 P.3d 330 (Or. Ct. App. 2013). “250 which, after the expiration of three months from the date it is issued, has not been contested and canceled in the manner provided in ORS 537.260 [11] ***, shall be conclusive evidence of the priority and extent of the appropriation therein described in any proceeding in any…”
— Or. Rev. Stat. § 537.260(4) — 2 cases
Waterwatch of Oregon, Inc. v. Water Resources Comm'n, 88 P.3d 327 (Or. Ct. App. 2004). “13 Respondents also rely on ORS 537.260 to support their position. They argue that that statute makes clear that the legislature intended municipalities to be able to develop and partially perfect water rights incrementally.”
Waterwatch of Oregon, Inc. v. Water Resources Dep't, 316 P.3d 330 (Or. Ct. App. 2013). “250 which, after the expiration of three months from the date it is issued, has not been contested and canceled in the manner provided in ORS 537.260 [11] ***, shall be conclusive evidence of the priority and extent of the appropriation therein described in any proceeding in any…”
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