(a) Where boats are anchored.
(b) Where people are swimming.
(c) Near populated beaches.
(d) Among water-skiers.
(e) Among boats underway.
(f) Where persons or property will be endangered because the area is otherwise congested.
(g) Where persons or property will be disturbed or endangered because the waters on which the boat is operated are within a residential area.
(2) Subject to subsection (1) of this section, motorboats may be operated on public waters without effective muffling devices as required by ORS 830.260, for the purpose of trying or testing the equipment on the boat, in areas and during times designated by the State Marine Board by regulations adopted under ORS 830.175.
(3) Within any county in which areas and times for trying or testing boats or the equipment on boats have been designated by the board under ORS 830.175, if a person wishes to operate a boat for such a purpose on public waters within the county, outside the designated testing area, the person shall apply to the sheriff of the county for a permit to do so. The permit, which may be issued upon application, shall be conditioned upon compliance with subsection (1) of this section, and shall designate the areas where and the times when the boat may be operated for such purpose. Provided, however, the sheriff in issuing such a permit may waive subsection (1)(g) of this section if the boat being tested is muffled in accordance with ORS 830.260. [Formerly 488.102]