1. (1) In order to approve an application for an extension of time to complete construction and/or apply water to full beneficial use pursuant to ORS 537.230 or 537.630, or to begin construction pursuant to ORS 537.248, the Department shall find:

   1. (a) The applicant has submitted a completed extension application, including the fee specified in ORS 536.050. The Department shall return any incomplete or deficient applications to the applicant, and shall specify the deficiency; and
   2. (b) There is good cause to approve the extension.

2. (2) In order to make a finding of good cause to approve the extension, the Department shall consider, but is not limited to, the following criteria:

   1. (a) Whether the applicant has demonstrated reasonable diligence in previous performance under the permit;
   2. (b) The cost to appropriate and apply the water to a beneficial purpose;
   3. (c) The good faith of the appropriator;
   4. (d) The market for water or power to be supplied;
   5. (e) The present demands for water or power to be supplied;
   6. (f) The income or use that may be required to provide fair and reasonable returns on investment;
   7. (g) Whether other governmental requirements relating to the project have significantly delayed completion of construction or perfection the right;
   8. (h) Any unforeseen events over which the water right permit holder had no control and which delayed development under the permit;
   9. (i) Whether denial of the extension will result in undue hardship to the applicant and that there are no other reasonable alternatives exist for meeting water use needs; and
   10. (j) Any other factors relevant to a determination of good cause.

3. (3) In determining reasonable diligence in subsection (2)(a), the Department shall consider, but is not limited to, the following factors:

   1. (a) The amount of construction completed within the time allowed in the permit or previous extension;
   2. (b) The amount of beneficial use made of the water during the permit or previous extension time limits;
   3. (c) Water right permit holder conformance with the permit or previous extension conditions; and
   4. (d) Financial investments made toward developing the beneficial water use.

4. (4) In determining the market and the present demand for water or power to be supplied pursuant to subsections (2)(d) and (e) above, the Department shall consider, but is not limited to, the following factors:

   1. (a) The amount of water available to satisfy other affected water rights and scenic waterway flows;
   2. (b) Special water use designations established since permit issuance, including but not limited to state scenic waterways, federal wild and scenic rivers, serious water management problem areas or water quality limited sources established under 33 U.S.C. 1313(d);
   3. (c) The habitat needs of sensitive, threatened or endangered species, in consultation with the Oregon Department of Fish and Wildlife;
   4. (d) Economic investment in the project to date;
   5. (e) Other economic interests dependent on completion of the project; and
   6. (f) Other factors relevant to the determination of the market and present demand for water and power.

5. (5) In evaluating subsection (2), the Department shall find that good cause has not been shown and deny the extension if:

   1. (a) The applicant did not begin actual construction on the project, as defined in OAR 690-315-0020(3)(d)(A) and (B), during the time period required by statute; or
   2. (b) The permit holder has used water and has failed to demonstrate compliance with fish-related permit conditions that are required to be met before water use began. These permit conditions include fish screening, fish bypass, fish passage, or any other permit conditions intended to protect fish; or
   3. (c) The Department’s evaluation under (2) otherwise finds that good cause has not been shown.
6. (6) If the Department finds that the permit cannot be extended, and if the requirements for initiating cancellation proceedings under ORS 537.260(1) are met, the Department may initiate proceedings to cancel the permit. The Department's Proposed Final Order on the extension application may initiate cancellation proceedings under ORS 537.260(1) by including a proposed cancellation of the permit pursuant to ORS 537.260(1), which shall constitute the notice required by ORS 537.260(1).
7. (7) The Department may request additional information necessary to evaluate an application.

Statutory/Other Authority

ORS 536.025 & ORS 536.027

Statutes/Other Implemented

ORS 536.050, ORS 537.230, ORS 537.248, ORS 537.630, ORS 539.010, ORS 537.260 & Or Laws 2025, ch 282

History

WRD 3-2026, amend filed 03/20/2026, effective 04/01/2026
WRD 2-2005, f. & cert. ef. 11-22-05
WRD 4-1998, cert. ef. 11-2-98