Cancellation of permit when holder fails to continue to qualify as municipal applicant. (1) If the holder of a permit to appropriate water for hydroelectric purposes under this chapter fails, after receiving notice under ORS 537.289 (2), to amend the joint agreement so the holder continues to qualify as a municipal applicant, or if the holder of the permit has assigned ownership of the permit to an entity other than a municipal corporation or district, the Water Resources Commission shall initiate proceedings to cancel the permit

(2) The provisions of ORS 536.076 and 536.077, and rules adopted thereunder, apply to a contested case proceeding on a proposed final order issued under this section. [1985 c.392 §7; 1985 c.673 §188; 2025 c.575 §10]