ORS 542.040: Withholding water from appropriation pending investigation; restrictions on permit to appropriate; repayment of cost of project.

(1) The Water Resources Commission, on behalf of the state, shall withdraw and withhold from appropriation any unappropriated water which may be required for any project under investigation or to be investigated under the provisions of ORS 542.010 to 542.050. If the project is found to be feasible, the commission shall withhold the same from appropriation until the money expended in the investigation of the project is repaid to the cooperating parties in proportion to the amount contributed by each unless funds for construction are provided by one or both of the cooperating parties, in which case the commission shall issue a permit without requiring such repayment. No permit to appropriate water which may be in conflict with any such project under investigation shall be approved by the commission, nor shall any assignment of plans and information or any part thereof be made except upon consideration and order by the commission after full hearing of all interested parties. (2) Any moneys returned to the commission under the provisions of this section shall promptly be turned over to the State Treasurer and credited to the General Fund in the State Treasury. [Amended by 1985 c.673 §132]