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gable waters.


(h) That combinations, agreements, arrangements, or restraint of understandings, express or implied, to limit the output trademic stervice of electrical energy, to restrain trade, or to fix, maintain, prohibited. or increase prices for electrical energy or service are

hereby prohibited. Waiving con

(i) In issuing licenses for a minor part only of a comditions for minor plete project, or for a complete project of not more than

, lowed. one hundred horsepower capacity, the commission may

in its discretion waive such conditions, provisions, and requirements of this Act, except the license period of

fifty years, as it may deem to be to the public interest Proviso.

to waive under the circumstances: Provided, That the cepien. lands provisions hereof shall not apply to lands within Indian excepted.

reservations. Dams on navi

Sec. 11. That if the dam or other project works are

to be constructed across, along, or in any of the naviAdditional re quirements to gable waters of the United States, the commission may, promote naviga. in so far as it deems the same reasonably necessary to

promote the present and future needs of navigation and. consistent with a reasonable investment cost to the licensee, include in the license any one or more of the

following provisions or requirements: Construction of

(a) That such licensee shall, to the extent necessary locks, etc.

to preserve and improve navigation facilities, construct, in whole or in part, without expense to the United States, in connection with such dam, a lock or locks, booms, sluices, or other structures for navigation purposes, in accordance with plans and specifications approved by the Chief of Engineers and the Secretary of

War and made part of such license. Convey ance,

(b) That in case such structures for navigation purtion by United

poses are not made a part of the original construction States, of locks, at the expense of the licensee, then whenever the United

States shall desire to complete such navigation facilities the licensee shall convey to the United States, free of cost, such of its land and its rights of way and such right of passage through its dams or other structures, and permit such control of pools as may be required to

complete such navigation facilities. Power free of

(c) That such licensee shall furnish free of cost to cost for opera the United States power for the operation of such navition.

gation facilities, whether.constructed by the licensee or

the United States. Installing

Sec. 12. That whenever application is filed for a projlocks etc. on ect hereunder involving navigable waters of the United it Government States, and the commission shall find upon investigation etidls so to do, that the needs of navigation require the construction of a

lock or locks or other navigation structures, and that such structures can not, consistent with a reasonable investment cost to the applicant, be provided in the manner specified in section 11, subsection (a) hereof, the commission may grant the application with the provision to be expressed in the license that the licensee will install

etc., for construc



the necessary navigation structures if the Government fails to make provision therefor within a time to be fixed in the license and cause a report upon such project to be prepared, with estimates of cost of the power develop- Report to Conment and of the navigation structures, and shall submit gress, etc. such report to Congress with such recommendations as it deems appropriate concerning the participation of the United States in the cost of construction of such navigation structures..

Sec. 13. That the licensee shall commence the construc- Time limit for tion of the project works within the time fixed in the

construction and

operation. license, which shall not be more than two years from the date thereof, shall thereafter in good faith and with due diligence prosecute such construction, and shall within the time fixed in the license complete and put into operation such part of the ultimate development as the commission shall deem necessary to supply the reasonable needs of the then available market, and shall from time to time thereafter construct such portion of the balance of such development as the commission may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. The periods for the commencement of construction may be extended once but not longer than two additional years and the period for the completion of construction carried on in good faith and with reasonable diligence may be extended by the commission when not incompatible with the public interests. In case the licensee shall not commence actual construction of the project works, or of Termination of any specified part thereof, within the time prescribed in ures the license or as extended by the commission, then, after due notice given, the license shall, as to such project works or part thereof, be terminated upon written order of the commission. In case the construction of the project Proceedings if

partly completed. works, or of any specified part thereof, have been begun but not completed within the time prescribed in the license, or as extended by the commission, then the Attorney General, upon the request of the commission, shall institute proceedings in equity in the district court of the United States for the district in which any part of the project is situated for the revocation of said license, the sale of the works constructed, and such other equitable relief as the case may demand, as provided for in section 26 hereof. SEC. 14. That upon not less than two years' notice in

Right of Gov. writing from the commission the United States shall over, operate, have the right upon or after the expiration of any tion of license. license to take over and thereafter to maintain and operate any project or projects as defined in section 3 hereof, and covered in whole or in part by the license, or the right to take over upon mutual agreement with the licensee all property owned and held by the licensee then valuable and serviceable in the development, trans


ernment to take


ot amount.



mission, or distribution of power and which is then dependent for its usefulness upon the continuance of the license, together with any lock or locks or other aids to navigation constructed at the expense of the licensee,

upon the condition that before taking possession it shall Payment to be pay the net investment of the licensee in the project or

projects taken, not to exceed the fair value of the property taken, plus such reasonable damages, if any, to property of the licensee valuable, serviceable, and dependent as above set forth but not taken, as may be caused by the severance therefrom of property taken, and shall assume all contracts entered into by the licensee with the approval

of the commission. The net investment of the licensee Determination

in the project or projects so taken and the amount of such severance damages, if any, shall be determined by agreement between the commission and the licensee, and in case they can not agree, by proceedings in equi instituted by the United States in the district court of

the United States in the district within which any such Provisos.

property may be located: Provided, That such net in

ex. vestment shall not include or be affected by the value cluded.

of any lands, rights of way, or other property of the United States licensed by the commission under this Act, by the license, or by good will, going value, or prospective revenues : Provided further, That the val.

ues allowed for water rights, rights of way, lands, or Costs for ter rights, etc., interest in lands shall not be in excess of the actual reaallowed.

sonable cost thereof at the time of acquisition by the Condemnation

licensee: Provided, That the right of the United States right reserved. or any State or municipality to take over, maintain, and

operate any project licensed under this Act at any time by condemnation proceedings upon payment of just compensation is hereby expressly reserved.

Sec. 15. That if the United States does not, at the exIssue of licenses.

piration of the original license, exercise its right to take To original li- over, maintain, and operate any project or projects of

the licensee, as provided in section 14 hereof, the com

mission is authorized to issue a new license to the origiTo new licen

nal licensee upon such terms and conditions as may be authorized or required under the then existing laws and regulations, or to issue a new license under said terms

and conditions to a new licensee, which license may cover Condition.

any project or projects covered by the original license, and shall be issued on the condition that the new licensee shall, before taking possession of such project or projects, pay such amount, and assume such contracts as the

United States is required to do, in the manner specified Proriso. in section 14 hereof: Provided, That in the event the

Yearly continu; United States does not exercise the right to take over or ence of original license. does not issue a license to a new licensee, or issue a new

license to the original licensee, upon reasonable terms, then the commission shall issue from year to year an annual license to the then licensee under the terms and con




ditions of the original license until the property is taken over or a new license is issued as a foresaid.

Sec. 16. That when in the opinion of the President of Temporary pos. the United States, evidenced by a written order addressed by the Govern to the holder of any license hereunder, the safety of the ment for miliUnited States demands it, the United States shall have the right to enter upon and take possession of any project, or part thereof, constructed, maintained, or operated under said license, for the purpose of manufacturing nitrates, explosives, or munitions of war, or for any other purpose involving the safety of the United States, to retain possession, management, and control thereof for such length of time as may appear to the President to be necessary to accomplish said purposes, and then to restore possession and control to the party or parties entitled thereto; and in the event that the United States shall exercise such right it shall pay to the party or parties entitled thereto just and fair compensation for the use of said property as may be fixed by the commission upon the basis of a reasonable profit in time of peace, Basis of comand the cost of restoring said property to as good con pensation. dition as existed at the time of the taking over thereof, less the reasonable value of any improvements that may be made thereto by the United States and which are valuable and serviceable to the licensee.

Sec. 17. That all proceeds from any Indian reservation shall be placed to the credit of the Indians of such reser- lands. vation. All other charges arising from licenses here- all other. under shall be paid into the Treasury of the United To miscellaneStates, subject to the following distribution: Twelve ous receipts. and one-half per centum thereof is hereby appropriated to be paid into the Treasury of the United States and credited to “Miscellaneous receipts”; 50 per centum of the charges arising from licenses hereunder for the oc

from public cupancy and use of public lands, national monuments, lands, etc. national forests, and national parks shall be paid into, reserved, and appropriated as a part of the reclamation fund created by the Act of Congress known as the Reclamation Act, approved June 17, 1902; and 371 per Vol. 32, p. 388. centum of the charges arising from licenses hereunder for the occupancy and use of national forests, national parks, public lands, and national monuments, from development within the boundaries of any State shall be paid by the Secretary of the Treasury to such State; and 50 per centum of the charges arising from all other licenses. licenses hereunder is hereby reserved and appropriated as a special fund in the Treasury to be expended under igatione improve

. the direction of the Secretary of War in the maintenance ment fund. and operation of dams and other navigation structures owned by the United States or in the construction, maintenance, or operation of headwater or other improvements of navigable waters of the United States.

From Indian

Disposition of

To reclamation fund.

To States.

From all other


Navigation facilities subject to

Seo. 18. That the operation of any navigation faciliregulation, etc., ties which may be constructed as a part of or in connecWar.

tion with any dam or diversion structure built under the provisions of this Act, whether at the expense of a licensee hereunder or of the United States, shall at all times be controlled by such reasonable rules and regulations in the interest of navigation, including the control of the level of the pool caused by sueh dam or diversion

structure as may be made from time to time by the Secrelights , nteishways tary of War. Such rules and regulations may include

the maintenance and operation by such licensee at its own expense of such lights and signals as may be directed by the Secretary of War, and such fishways as may be

prescribed by the Secretary of Commerce; and for willPenalty for ful failure to comply with any such rule or regulation noncompliance.

such licensee shall be deemed guilty of a misdemeanor,

and upon conviction thereof shall be punished as proPublic service

vided in section 25 hereof. licensees.

Sec. 19. That as a condition of the license, every liState regula tions to control. censee hereunder which is a public service corporation,

or a person, association, or corporation owning or operating any project and developing, transmitting, or distributing power for sale or use in public service, shall abide by such reasonable regulation of the services to be rendered to customers or consumers of power, and of rates and charges of payment therefor, as may from time to time be prescribed by any duly constituted agency

of the State in which the service is rendered or the rate Regulation by Commission, it no charged. That in case of the development, transmistherefor. provision sion, or distribution, or use in public service of power by

any licensee hereunder or by its customer engaged in public service within a State which has not authorized and empowered a commission or other agency or agencies within said State to regulate and control the services to be rendered by such licensee or by its customer engaged in public service, or the rates and charges of payment therefor, or the amount or character of securities to be issued by any of said parties, it is agreed as a condition of such license that jurisdiction is hereby. conferred upon the commission, upon complaint of any person aggrieved or upon its own initiative, to exercise such regulation and control until such time as the State

shall have provided a commission or other authority for To cease when such regulation and control: Provided, That the jurismeat e provision diction of the commission shall cease and determine as

to each specific matter of regulation and control prescribed in this section as soon as the State shall have provided a commission or other authority for the regula

tion and control of that specific matter. Reas o nable, etc., rates for

Sec. 20. That when said power or any part thereof power used in in shall enter into interstate or foreign commerce the rates

charged and the service rendered by any such licensee, or by any subsidiary corporation, the stock of which is owned or controlled directly or indirectly by such li



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