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 DEPT. 
 
 UC-NRLF 
 
 B M sob a^a 
 
OF THE 
 
 UNIVERSITY 
 
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PROPOSED NEW 
 
 DOMINION WATER-POWER REGULATIONS 
 
 WITH 
 
 EXPLANATION 
 
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 Vif:) 
 
THE PROPOSED NEW 
 
 DOMINION WATER POWER REGULATIONS 
 
 WITH EXPLANATION 
 
 "\T/^\^T^Ti^ , The regulations here proposed were prepared under the direction of the under- 
 ^^ ^^ *■ -"-^ • signed. The provisions have been the subject of frequent conferences among 
 the officials of the Branch in the past year or more, and the principles accepted represent for the 
 most part the prevailing views at such conferences. They must not be taken therefore as represent- 
 ing the settled policy of the Department. They are not released for publication either in whole or 
 in part at this time. 
 
 It is desired to emphasize the fact that they were printed primarily to facilitate their examin- 
 ation by parties whose opinion was desired by the undersigned in order that the proposed regulations 
 might be presented to the Department along with the best considered judgment obtainable. 
 
 Special acknowledgment is due in connection with the drafting of the regulations and the 
 accompanying explanatory note to H. W. Grunsky, a legal expert who has specialized on water- 
 laws and administrative regulations, and whose services have been engaged largely for this special 
 purpose. • 
 
 J. B. CHALLIES, 
 Superintendent Dominion Water Power liranih. 
 
 0:5- 
 
THE PROPOSED NEW 
 
 DOMINION WATER POWER REGULATIONS 
 
 WITH EXPLANATION 
 
 XT /^^T^^ fj^ . The regulations here proposed were prepared under the direction of the under- 
 ^^ ^^ ' -'— ^ • signed. The provisions have been the subject of frequent conferences among 
 the officials of the Branch in the past year or more, and the principles accepted represent for the 
 most part the prevailing views at such conferences. They must not be taken therefore as represent- 
 ing, the settled policy of the Department. They are not released for publication either in whole or 
 in part at this time. 
 
 It is desired to emphasize the fact that they were printed primarily to facilitate their examin- 
 ation by parties whose opinion was desired by the undersigned in order that the proposed regulations 
 might be presented to the Department along with the best considered judgment obtainable. 
 
 Special acknowledgment is due in connection with the drafting of the regulations and the 
 accompanying explanatory note to H. W. Grunsky, a legal expert who has specialized on water- 
 laws and administrative regulations, and whose services have been engaged largely for this special 
 
 purpose. 
 
 J. B. CHALLIES, 
 
 Superintendent Dominion Water Power Branch. 
 
 C).'}- 
 

HD IC^^C 
 
 OOCUIVitHTS 
 
 DEPT. 
 
 CONTENTS 
 
 Page. 
 
 The Explaiiiitiou of the Proposed Regulations 5 
 
 Territory Administered C 
 
 The Application T 
 
 The Agreement for a License 9 
 
 Supervision by Department Engineers 10 
 
 Cancellation of Agreement for Default 10 
 
 Term of License 10 
 
 Renewal or Termination 12 
 
 Rights of Crown in Patented Lands 13 
 
 Rentals under License and Lease 14: 
 
 Lease Provisions 15 
 
 Limited Rights in Certain Lands 15 
 
 Forest and Park Provisions 16 
 
 Works — Maintenance and Operation 16 
 
 Power Output Clauses 16 
 
 Power Sale Clauses 16 
 
 Stream Regvilation and Control 17 
 
 Appraisal and Accounts 17 
 
 Rates to Consumers and Capitalization of Grants 18 
 
 Transfers 18 
 
 Penalties for Default of Licensee or Lessee 19 
 
 Miscellaneous Provisions. 19 
 
 Small Water Powers 20 
 
 Departmental Work Simplified 21 
 
 The Proposed Water Power Regulations 25 
 
 Definition of Terms 25 
 
 Application of Regulations 27 
 
 Small Water Powers 27 
 
 The Application 30 
 
 Authorization to make Surveys 31 
 
 General Layout Plans 32 
 
 The Agreement for a License 32 
 
 Rights in Lands, lender Agreement 35 
 
 Rentals Under Agreement 30 
 
 Final Plans of Works 36 
 
 Plan of Lands 37 
 
 Approval of Plans 38 
 
 Bond 38 
 
 6373— U 
 
Page. 
 The Proposed Water Power Regulations — Concluded. 
 
 "Works — Construction and Operation by Contractor 38 
 
 Cancellation of Agreement for Default 41 
 
 License and Lease 43 
 
 Term of License 45 
 
 Renewal or Termination 45 
 
 Rentals Under License and Lease 48 
 
 Lease Provisions 50 
 
 Limited Rights in Certain Lands 51 
 
 Care of Lands 52" 
 
 Forest and Parks Provisions 54 
 
 Works — Maintenance and Operation 55 
 
 Power Output Clauses 56 
 
 Power Sale Clauses 58 
 
 Stream Regulation and Control Clauses 59 
 
 Appraisal and Accounts 60 
 
 Rates to Consumers and Capitalization of Grants 62 
 
 Transfers 63 
 
 Penalties for Default of Licensee or Lessee 63 
 
 Miscellaneous Provisions 65 
 
 Small Water Powers 68 
 
 Index to the Regulations 69 
 
EXPLANATION OF THE PROPOSED 
 REGULATIONS 
 
 (Bracket references interspersed throughout this note are to sections of the 
 accompanying draft of the Regidations.) 
 
 The regulations under which the Department of the Interior at present 
 administers the water-powers within the jurisdiction of the Dominion Govern- 
 ment are comparatively brief, having been adopted almost in their present 
 form by an order of the Governor in Council on the 2nd of June, 1909. They 
 contain many excellent features which have 'been retained in the accompanying 
 draft. However, it is not surprising that, pertaining as they do to a subject 
 which occupies a comparatively new field and which has lately been receiving 
 much attention from the administrative side in nearly all countries, they should 
 be found to be inadequate. 
 
 The proposed new regulations are in part an outgrowth of policies which 
 have been shaping themselves through the past years of administration, but 
 they also incorporate many provisions which have been framed after a con- 
 sistent study of the administration of water-powers in other jurisdictions, as 
 well as of the legislative measures which have been there adopted or proposed. 
 The views of financial interests, upon whom the future development of the 
 water-powers so largely depends, haA'e also been carefully considered, and an- 
 endeavour has been made to be fair t(t these without in 'any case sacrificing 
 the ptiblic interest. 
 
 The legislation of the Dominion Parliament which is the atithority for 
 both the existing and the proposed regulations is contained in section 35 of the 
 Dominion Lands Act (1908), and covers abotit one printed page. This section, 
 after providing for the withdrawal from ordinary disposition and sale of all 
 Dominion lands which are valuable for water-power development purposes, 
 simply gives the Governor in Cotincil very broad powers to make regulations 
 for administering the said lands and water-powers, but stipulates that in nc 
 case shall any sttch lands be conveyed in fee. 
 
 The primary purpose of the water-power regulations is to bring into force 
 an administrative scheme which, while not retarding the present development 
 of any water-powers Avhich are ready for development, will retain the owner- 
 ship and control of the powers themselve?^ in the Crown, and will sectire their 
 utilization imder conditions that will guarantee the inhabitants of the surroimd- 
 ing cities and districts the utmost possible benefits. 
 
 Fortunately the Dominion Government has disposed of only a very small 
 percentage of the water-powers under its jurisdiction. The lands commanding 
 
 5 
 
Avator-powors which were patented l)efore the legishition above referred to 
 became etfeetive comprise a negative item. Furthermore, very few final 
 water-power licenses and leases have been issued under the existing regulations, 
 and such agreements or contracts as have been entered into, looking to the 
 issuance of licenses when developments shall have 'been completed, have been 
 so framed that the licenses and leases, when issued, may be issued subject to 
 the then existing water-power regulations. Therefore the Government is in 
 a position to profit by the experience of other jurisdictions and to bring 
 practically all the water-powers within its control under uniform and modern 
 regulations. 
 
 In the hope that the proposed regulations would receive more careful 
 scrutiny at the hands of persons interested in giving the Department the 
 benefit of their criticisms, an endeavour has been made to arrange them syste- 
 matically according to titles, and to accompany each section by a concise side 
 note showing its nature. A brief index will also be fVmnd at the end of the 
 regulations. 
 
 Territory Administered. 
 
 The territory, whose water-powers with but slight exception are adminis- 
 tered by the Department of the Interior, embraces the three provinces, ]\ranitoba, 
 Saskatchewan and xVlberta, the Korthwest Territories, and the national parks in 
 the Railway Belt of British Columbia. This area, except the J^^orthwest Terri- 
 tories and the parks of the British Columbia Railway Belt, is shown on the 
 plan on page 8. 
 
 As indicating the importance of having suitable water-power regulations, 
 I wo typical situations in this jurisdiction are here briefly set out. 
 
 As a result of a complete comprehensive survey by the engineers of the 
 Dominion Water Power Branch on the power and storage possibilities of the 
 Winnipeg river/ it has been shown that it is possible to develop, under unregu- 
 lated flow conditions on this river in the Province of Manitoba at nine power 
 sites, 250,000 continuous 24-hour horse-power, and under regulated flow con- 
 ditions, feasible of realization within a short period of time, 420,000 continu- 
 ous 24-hour horse-power. Two of these power sites are already developed, one by 
 the city of Winnipeg at Point du Bois falls, and one by the Winnipeg Electric 
 Railway Company. Fortunately these developments fit into and form a part 
 of the comprehensive scheme of development worked out by the Government. 
 The total output of these two developments is transmitted to and used in and 
 around Greater Winnipeg. In view of the strategic location of this city, there 
 is little doubt that all available power of the Winnipeg river will be developed in 
 the near future. It is therefore of prime importance that satisfactory water- 
 power regulations should be brought into force which will insure the complete 
 develojDiment of the-se Avater-powers in a manner that will be fair and just to the 
 
 1 See Water Resources Paper No. 3, being a report on the Winnipeg River Power and Storage 
 Investigations by J. T. Johnson, Chief Hydraulic Engineer. 
 
Crow-n, the licensee and the public. A map showing the location of these 
 water-powers with respect to the city of Winnipeg is shown facing page 68. 
 
 A second typical situation in the jurisdiction covered by these regula- 
 tions is that on the Bow river in the province of Alberta. Elaborate compre- 
 hensive surveys were made several years ago by the engineers of the Dominion 
 Water Power Branch/ as a result of which it has been shown that at six power 
 sites on the Bow river, a total amount of 50,000 continuous 24-hour horse-power 
 is feasible of development. Two sites on this river are already developed by 
 the Calgary Power Company, one at Horseshoe falls of 18,000 installed horse- 
 power, and one at Kananaskis falls of 7,500 installed horse-power. The power 
 output is transmitted for use in and around the city of Calgary. A relief map 
 showing the location of the developed and undeveloped power sites on the 
 Bow river is shown facing page 10. 
 
 The following paragraphs are aimed to give the reader a very brief out- 
 line of the principal features of the proposed regulations, although it is hoped 
 that where a question arises concerning a particular point, the corresponding 
 sections of the regulations will also be consulted. The index will be of assist- 
 ance in locating subject matters not touched upon in this summary. 
 
 The Application. 
 
 The information required to be furnished by an applicant (4) may seem 
 rather onerous at first glance, but it is to be remembered that this information 
 is not, in every case, filed at once. In fact it is expected that in the average 
 case several letters will pass between the applicant and the department before 
 the application is complete, and more than likely if the application is for a small 
 water-power site an engineer representing the Dominion Water Power Branch 
 in the particular district will proceed to the site and assist the applicant in the 
 preparation and filing of the requisite data. 
 
 Since no priority is obtained under these regulations by the mere filing of 
 an initial, or even of a completed application, but since such priority can only 
 be obtained when a permit or an agreement is executed, no particular hardship 
 is placed upon any one by setting out at once the whole scope of the information 
 which is required of an applicant. In case where a small water-power is 
 applied for the Department can permit of an application being filed omitting 
 such part of the data required in section 4 as is considered not essential. 
 
 Application for small water-powers may be dealt with specially by the 
 Minister. This is explained on page 20. The discussion which here follows, 
 has reference in the m.ain to the larger developments. 
 
 In order to place a premium on development the effort has been made to 
 facilitate applications in every possible way. The annual rental required 
 
 1 See Water Resources Paper No. 2, being a report on the Bow River Power and Storage 
 Investigations by M. C. Hendry. 
 
under the agreement, that is, during the survey-construction stage, is to be 
 fixed by the ^Minister (20/). The policy of the Department in the past has 
 been to make this rental light. In the ordinary case, but 25 cents an acre 
 has been asked for the lands not covered by water actually occupied and 'still 
 less for lands under water. 
 
 Immediately after the filing of an application the applicant is to proceed 
 at once to prepare his general layout plans. These plans might be termed 
 the preliminary plans. They are such as will suffice to explain the general 
 nature of the project (12). An agreement for a license may be entered into 
 at any time after the applicant has filed his general layout plans (16). 
 
 2 110 lOe 106 104 102 lOO 96 96 94 32 
 
 Manitoba, Saskatchewan and Alberta, Canada, "The Prairie Provinces." 
 
 It has long been the policy of the Department of the Interior to explore 
 the water-powers far in advance of settlement and to collect systematic data 
 with reference thereto, so that it may frequently happen that the information 
 required for general layout plans is already in the possession of the Depart- 
 ment. In such cases this is placed at the disposal of the applicant and he, 
 then has but to execute his agreement and proceed with the preparation of 
 detailed plans and specifications. 
 
 The Minister may, however, if he considers it necessary to have more 
 information than is required in the general layout plans, defer entering into 
 &n agreement and issue in favour of the applicant a preliminary permit 
 
entitling him to carry on further surveys and to prepare further plans, but 
 not in such detail as is required of the final plans. Such a permit oives the 
 applicant priority in the meantime for entering into an agreement (17, IS). 
 Such permit may not be effective for more than a year in the first instance or 
 for two years at the maximum (19). 
 
 The Agreement for a License. 
 
 The agreement might well be termed a conditional license, since, if the 
 person holding the same (called in the regulations " the contractor ") completes 
 his works within the time specified and otherwise complies with the terms of 
 agreement, a license unfailingly issues in his favour. 
 
 The first duty of the contractor is to proceed with the preparation and 
 filing of final plans and specifications. The time within which these must be 
 filed is set out in the agreement. The Department has then six months in 
 which to examine the plans and notify the contractor wdiether they have been 
 approved or rejected, or with what modifications they have been approved (27). 
 
 Within sixty days after being notified by the Department of the approval 
 of his final plans and specifications, the contractor is to deposit a bond or 
 cheque in such amount as the Minister may deem proper, guaranteeing the 
 performance by him of the terms of his agreement (28). 
 
 Within six months after receiving such notification of approval of plans the 
 contractor must commence the construction of his works and must thereafter 
 diligently prosecute the same, and bring them to such a stage of completion 
 within five years after the date of the agreement as to be then developing 
 water-power and putting it to a beneficial use (20f). While other provisions 
 of the agreement are subject to amendment by the execution of a supplemen- 
 tary agreement these particiilar provisions relating to the completion of works 
 within a time to be specified and the development and utilization of a mini- 
 mum quantity of water-power within five years after the date of the agree- 
 ment cannot be amended (41). 
 
 The Minister may, however, in such a case, if he considers that the con- 
 tractor has made a creditable showing on the works and that his failure is 
 excusable enter into an entirely new agreement with such contractor, but 
 such new agreement is in every case to be made subject to the water-power 
 regulations then in force (39). 
 
 Only temporary rights in or upon any Dominion lands are acquired under 
 an agreement, these being such rights of entry, use or occupation as may, in 
 the opinion of the Minister, be necessary for the purpose of carrying on sur- 
 ve^^s and constructing works (21), 
 
10 
 
 Supervision by Department Engineers. 
 
 Everv agreement is subject to the coiicUtiou that the Minister may phice 
 a qualitiecl inspecting engineer on the work during construction and may also 
 if he considers it necessary retain a consulting engineer for advice in connec- 
 tion with the plans or works of the contractor. The contractor may he 
 required to reimburse the ]\linister for sums expended for salaries, fees and 
 expenses of such inspecting and consulting engineers (32). 
 
 The contractor must conform to the instructions of the said inspecting 
 engineer (33). 
 
 Proof of completion of the works must be tiled by the contractor wathin 
 sixty days after the date fixed in his agreement for such completion (36). 
 but the Minister may in any case defer the issuance of a license until a satis- 
 factory inspection has been made by the officers of the department (37). 
 
 Cancellation of Agreement for Default. 
 
 Every agreement is subject to cancellation for failure on the part of the 
 contractor to comply with its terms. Unlike the case of non-compliance by a 
 licensee or lessee, the Minister is in the first instance the sole judge of what 
 action shall be taken for such failure on the part of the contractor. He may 
 if he considers the default inexcusable cancel the agreement outright and 
 make any provision which he deems proper for compensating the contractor 
 for works constructed by him on Dominion lands (38). If however, the Min- 
 ister considers that the contractor has made such substantial progress on his 
 works as to entitle him to further consideration two options are presented, 
 first, he may after cancelling the existing agreement grant the contractor a new 
 agreement, but such new agreement must be subject to the water-power regu- 
 lations in force at the time such new agreement is made, or secondly,, he may 
 refer the entire matter of such failure on the part of the contractor to the 
 Exchequer Court of Canada. 
 
 This Court, it may be explained, has jurisdiction in all cases arising out 
 of a contract entered into by or on behalf of the Crown. The said Court, in 
 case of reference of this nature, may order specific performance on the part 
 of the contractor, or may award the payment of a sum to the Crown as liqui- 
 dated damages, or may order the cancellation of the agreement or may make 
 any other order in the premises wdiich it deems proper (39). 
 
 Term of License. 
 
 It is left to the Minister to fix the term of any license issued under the 
 regulations but such terms cannot in any case exceed 55 years from and after 
 the date of the original agreement for the license. This provision practi- 
 callv limits the term of the license to 50 vears and is intended to reinforce 
 
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12 
 
 that provision of the regulations already referred to which makes it impos- 
 sible to extend the time for the completion of the works and the putting of at 
 least some of the water to a beneficial use in the development of power within 
 5 years from the date of the agreement. If an entirely new agreement should 
 be entered into because of the applicant having made siibstantial progress in 
 the fulfilment of his original agreement, as already explained, he is in any 
 ease penalized to this extent, namely, that the term of his license is shortened 
 by as many years as the completion of his works has been deferred beyond the 
 five-year period originally allowed. 
 
 The Committee on the Public Lands of the United States House of 
 Representatives has the following to say on the question of the term of water- 
 power licensees : — 
 
 " A 50-year term is the one advocated by all of the authorities 
 on the subject, (both in the hearings, in the annual reports of the depart- 
 ments, in writings, and in reports upon the bill from the departments 
 and other authorities on the subject. This length of time seems to be 
 the one thing upon which all are agreed." ^ 
 
 Renewal or Termination. 
 
 The two-year period beginning with six years before the termination of the 
 license and ending with four years before such termination is allowed for the 
 licensee to file his application for renewal of his privileges for a further 
 term. Such application, however, must conform to the laws and regulations 
 then in force. Other intending applicants may also file their applications at 
 the same time (46). After this period for new applications or renewals has 
 elapsed the Department is to carefully consider what is the best possible 
 future disposition which may be made of the site. If the Minister decides that 
 some disposition of the site other than a renewal of the licensee's term is in the 
 public interest he must give the licensee not less than three years' notice of the 
 contemplated termination of his license (48). 
 
 The matter of coaiipensation for the works of the licensee in case of 
 termination is dealt with in section 48. 
 
 Regarding works on Dominion lands the Minister is to determine what 
 works are to be taken over at the end of the term and the licensee is to be 
 compensated for any works which the Minister decides shall be so taken over 
 (48 [2]), the Exchequer Court to fix the amount of compensation in case of 
 disagreement. The Court in fixing such compensation is to consider the 
 appraisals made from time to time by the officers of the Department (80), also 
 the cost of construction of such works and the depre<*iation fwm Itheir 
 original condition. Xo intangible elements of value are to be included, and 
 the works taken over are to be compensated for only to the extent to which 
 
 1 Report No. 16, 64th Congress, 1st Session. 
 
13 
 
 they can be shown to. be valuable and serviceable under modern and approved 
 standards from both economic and engineering points of view in the future 
 development and use of the waters in question (48 [4]). 
 
 Rights of Crown in Patented Lands. 
 
 It might ordinarily be assumed that the Crown is not interested in any 
 actions of the licensee beyond the boundaries of Dominion lands. A little 
 thought will, however, convince one that it is of the utmost importance that 
 all contracts and licenses be so issued as to give the Crown a hold on that part 
 of the undertaking of a licensee which is carried on outside of Dominion lands. 
 Suppose the regulations were to stop in any case of cancellation or terrnination 
 of a license at taking over only the works on Dominion lands. In most cases 
 the undertaking and works are extensive, with very important parts of trans- 
 mission lines, substations, etc., located on patented lands. It is easily seen that 
 if to terminate or cancel a license it were necessary to disrupt the system 
 entirely and disturb business in the surrounding districts, termination or 
 cancellation would rarely ])e resorted to and the regulations prescribing such 
 penalty would for all practical purposes be a dead letter. Therefore the 
 Crown must have some hold on the undertaking beyond the boundaries of 
 Dominion lands, and if the jurisdiction of the Dominion Government over the 
 requisite territory should be found to be lacking, the desired end must be 
 obtained through the contractual relation which the Crown has with the 
 licensee. 
 
 This most important point is dealt with in part in section 8G, which 
 provides that before executing any license the Minister must submit to the 
 prospective licensee a draft of the proposed license and secure from the licensee 
 an acceptance thereof and an undertaking to observe and fulfil all the terms 
 and conditions which under his license and under the regulations he is required 
 to observe or fulfil, with particular reference to the right of His Majesty to 
 take over the works, lands, and properties held by the licensee in connection 
 with his license in certain contingencies. 
 
 The same matter is further dealt with in section 85. This section sets 
 out the rights of the Crown in patented lands and in works not attached to 
 Crown lands when an agreement, license or lease is cancelled or terminated 
 under the regulations. These rights are the same whether the case be one of 
 cancellation for default or one of the termination. 
 
 It might here be explained that the expression " termination " is used in 
 (•<)iirra-distinction to the term "cancellation" throughout the regulations to 
 denote the cases where the license or lease is brought to an end without any 
 default on the part of the licensee or lessee. 
 
 In every case of either cancellation or termination full compensation is 
 made for all patented lands and for all works not attached to Crown lands, and 
 rhe Exchequer Court of Canada is allowed to fix the same. The Minister has 
 
14: 
 
 ihe I'iglit. however, to say iu the tirst instance what lands and works ninst bo 
 given over into the possession of the Crown, but except in the case of the can- 
 cellation of an agreement the Exchequer Court may review and revise the 
 Minister's decision on this question as to which of such lands and works are 
 to be permanently taken over and occupied. 
 
 The compensation to be paid tor any j»atente(l lands so taken over from 
 the licensee is to be determined by considering sm-h lamls from the jxdnt of 
 view of their natural fitness for ordinary, connnercial or industrial purposes 
 when compared with other lands in the immediate vicinity but is uot to 
 include any special value which may attach to the said lands by reav&on of the 
 development made by the licensee in coiinection with his license (8r)[-i]). 
 
 The compensation \o be paid for works not located upon Dominion lands 
 is to be arrived at as nearly as possible according to the i)rovisions already 
 referred to for a])praising the value of works located on Dominion lands (48, 
 [4] and | r»J. If, however, the Dominion Water Power Regulations in 
 force at the time of such taking over contain provisions more j^articidarly 
 a])plicable to the case in hand then such compensation shall be airived at 
 according to snch later provisions (85 [5 J). 
 
 Silver F*11h, \Vinni|)eg River. 
 
 Rentals Under License and Lease. 
 
 The annual ri'iital payable under any license or lease is to be fixed by 
 ihe ^linister (4!>). This rental may be a fixed sum or a sum compute<l from 
 year to year by applying a fixed rate per horse-power to the total nmnbcr of 
 horse-p4:»wer of <'iuM'gv devel<r]H'<l or to the total capable of being developed by a 
 leasonable and diligent use of the privileges granted, as the Minister may 
 ])refer (49|l^]). The rental first established in resjiect of a license or lease is 
 to remain effective initil at least twenty-five years after the date of the agree- 
 ment for such license or lease, after which it shall be subject to revision, but 
 any revision must renuiin effective for a period of at least ten years before 
 being again revised (40 ['>]). The licensee or lessee is given notice of any 
 intended increase of rentals not less than one year before such increase is to 
 become effective and is given sixtv davs in which to tile his objections. The 
 
16 
 
 jMiiiister may direct the holding of an inquiry on the matter by the Superin- 
 tendent of Water Power if, in his opinion, the case warrants it, but the 
 Minister's decision, after hearing the report by the Superintendent of Water 
 Power is finah 
 
 The penalty for non-payment of rentals is cancellation of the license or 
 lease by the Governor in Council (50 [1]) but if the Governor in Council so 
 directs, the case may bo referred to the Exchequer Court like other cases of 
 default (84). 
 
 If the Governor in Council concels the license outright he may at the 
 same time decide the question of the compensation, if any, which is to be 
 paid for the works of the licensee or lessee located upon Dominion lands. It 
 is obvious that in the case of cancellation for non-payment of rentals the pro- 
 visions respecting compensation should not be too lenient, or the licensee may 
 seize the opportunity of unloading a white elephant on the hands of the 
 Government. 
 
 Lease Provisions. 
 
 The proposed regulations follow the principle that lands contiguous to a 
 water-power or lands which are required in the development of any water- 
 power are to be considered as part and parcel of such water-power and are to 
 be administered under like regulations as such water-power. The lease is to be 
 made concurrent with the license in its term, and is to be dependent upon cxm- 
 pliance "by the licensee with all the provisions of the license (51, 5'2). 
 
 A lease may be voided in whole or in part because of the lessee's ceasing to 
 occupy and use the lands leased or because of their being no longer required for 
 constructing, maintaining and operating the works of the lessee. The Minister 
 is to be the judge of wdiether any particular lands are no longer required for the 
 said purposes, but his decision is not to be made without an opportunity for 
 objection on the part of the lessee. The Minister may in such case in his 
 discretion permit the lessee to remove any works located upon the lands so 
 withdrawn from the operation of the lease, or may make provision for com- 
 pensating the lessee for such works (53). 
 
 Limited Rights in certain Lands. 
 
 No exclusive rights are to be granted in lands required only for flooding 
 purposes or in lands required for rights of way for transmission lines (54-56). 
 This permits of homesteaders and others having the same degree of access to 
 the shore as formerly. Furthermore no rights in any lands forming the beds 
 or shores of any river, lake or other natural body of water shall be granted 
 by any lease except as may be required for the actual site of works (56). 
 Sections 57 to 68 fire general sections dealing with the care of Dominion lands 
 covering such matters as protection against fires, care of government and other 
 transmission lines, maintenance of roads and trails, and the cutting of merchant- 
 able timber. 
 
16 
 
 Forest and Park Provisions, 
 
 Sections 64 to 00 provide that any lease of lan(.ls for water-power purposes 
 within any Dominion forest reserve or park shall be subject to such conditions 
 as the Minister may impose with respect to the care and management of such 
 forest reserve or park, and to compliance on the part of the lessee with the 
 provisions of any forest or park regulations which are applicable to such forest 
 reserve or park. 
 
 Works — Maintenance and Operation. 
 
 Sections 07 f<> 70 provide f«»r luaintiMuuu'c and operation of the works 
 to the satisfaction of the Minister, free access at all times for inspecting pur- 
 poses, the securing of an authurization by the licensee before making any 
 material change in the work- and the installation of measuring devices to the 
 satisfaction of the ^fini^ter. 
 
 Power Output Clauses. 
 
 If the licensee refuses to develop power up to the full capacity possible 
 under his license his license and lea.>=<» are sailiject to cancellation (71, 72). 
 
 If an investigation and a hearing l>y the I)e|)artnient should disclose the 
 fact that a more comprehensive development than that of the licensee is 
 desirable at i>r near the site occui)ied, the (lovernor in (Jouncil may authorize 
 the ^linister to offer the licen-ee a new agreement for umlertaking such 
 enlarged developiuent. and if the license should not. within six months after 
 receiving such offer, enter into such new agreement his licence would become 
 subject to cancellation by order of the Governor in Council : but in such case 
 he would receive compensation for the reasonaltle vaim- of his works, plus a 
 bonus to be decided by the Exchequer Court, but not to exceed in any case 
 three-fourths of one per cent of such reasonable value for each full year of the 
 unexpired term of th«' license. If tlie license had forty y<>ars to run the 
 maximum Ixmus would be thirty j»er cent, if tliirty years twenty-two and one- 
 half per cent, and so on (73). 
 
 In case the works of several licensees are affected by a proposed enlarir<'d 
 develo|)ment a procedure is atVorde(| under which |)roposals may be received 
 from all such licensees and an agreement entered into with that one whose 
 proposal appears most in the judilic interest (74). 
 
 Power Sale Clauses. 
 
 If a licensee desires to use or dispose of power in a manner or for a 
 purpose other than as set out iii hi< license or wishes to develop and dispose of 
 a greater quantity of power than authorized by such license, he must secure a 
 new license for the purpose which shall in every case be subject to the conditions 
 of the Water Power Regulations then existing; (7.')). 
 
17 
 
 Except upon the written consent of the Minister no sale or delivery of 
 power is to be made to a distributing company, except in case of an emergency, 
 and then only for a period not exceeding thirty days (76). 
 
 The Crown has the privilege of purchasing power from any licensee at 
 as low a price as is given other consumers under similar conditions (77). 
 
 Contracts for the sale of power extending beyond the term of the license 
 are permitted to be entered into only with the approval of the Minister; but if 
 .such contracts are so approved and the license is terminated at the end of the 
 term, such contracts must be taken over and fulfilled by the Government or the 
 new licensee (78). 
 
 Stream Regulation and Control. 
 
 Every agreement, license or lease issued is to be subject to governmental 
 regulation of the flow of the stream upon which the works are located and to 
 governmental .control over all diversion of waters so as to secure the maximum 
 i'.dvantageous development of the power resources of such stream, also over 
 the raising of the level of any waters. The Government also has the right 
 in any case to construct works for the benefit of the general regulation and 
 control of the waters of the stream or for the storage of water, and the cost 
 of such works may be prorated among the several licensees operating on the 
 stream (79). 
 
 Generating Station, Point du Bois. 
 
 Appraisal and Accounts. 
 
 Not only is it intended that a close watch shall be kept during construc- 
 tion by inspecting engineers appointed by the Government as heretofore 
 explained as a result of which the original cost of construction of any works 
 will be known, but in every case where the Minister considers such action of 
 sufficient importance, he is to cause an appraisal of the value of the works, 
 lands and properties of the licensee to be made once every five years, taking 
 
 6373—2 
 
18 
 
 note of any enlargement or permanent improvement which may have been 
 authorized, and setting over against these items a fair estimate of any loss in 
 the value of the said works, lands and properties whether due to ordinary or 
 extraordinary causes (80). 
 
 As an aid to this appraisal every licensee is required to keep a true and 
 detailed account of all expenditures made in respect of the said works, lands 
 and properties and to file annually a return based on the said account. The 
 Minister may direct the mode of keeping the said account including the classi- 
 fication of items under the headings of permanent improvements, maintenance 
 and operation, etc., and the method of allowing for depreciation (80). 
 
 Rates to Consumers and Capitalization of Grants. 
 
 The Governor in ("onncil may <lesignate the bdard <<v commission which 
 in any particular province or territory is to regulate and control the service 
 and the cluirges for service to consumers and the stock and Ixmd issues of 
 licensees engaged in the sale, barter and exchange of jwwer and may also 
 apjioint a })erson to act with the said board or commission in an advisory 
 capacity and to represent the interei^ts of the department. The licensee mnst 
 submit schedules of rates to such board or commission before they become 
 effective, or such board or commission may on the complaint of any affected 
 party or on its own initiative* review and adjust the rates and prices charged 
 by the licensee. I'lilil such board or commission is designat(»(l to act in any 
 particular district, tlie .Minister may exei-cise the powers of snch boiird or 
 commi.ssion (81). 
 
 The licensee in estimating the value of the hinds, works and properties 
 held and used in connection with his license, whether for the purpose of fixing 
 the rates charged for power sold or for the purpose of appraising the pro- 
 perty upon which he is entitled to earn an income is in no eas<' to include 
 any pecuniary value for the rights and jjrivileges granted under any license or 
 lease (82). 
 
 Transfers. 
 
 Before any assignment or transfer of any agreement, license or lease 
 becomes effective, the Minister's approval in writing must be secured and the 
 Minister may impose new conditions upon the assignee or transferee, who 
 must also assume all obligations both old and new, Xo lien is to be created 
 by way of mortgage or trust deed unless approved by the ^linister and for the 
 bona fide purpose of financing the uiulertaking. Any successor to the rights 
 of the licensee whether by means of ju<licial sale, foreclosure sale or other- 
 wise is to be subject to all the conditions of the license and of the regula- 
 tions (83). 
 
19 
 
 Penalties for Default of Licensee or Lessee. 
 
 The Minister is to refer any case of default except, as already noted, the 
 non-payment of rentals by the licensee or lessee, to the Exchequer Court. Sucli 
 Court may order specific performance, or award a sum to be paid to the Crown 
 hy the licensee or lessee as liquidated damages, or may make any other order 
 which it deems proper, including the cancellation of the license (84). 
 
 In the case of such cancellation the Court is to fix the compensation, if 
 any, which is to be paid to the licensee or lessee for the works located upon 
 Dominion lands. It is to be noted that the question of compensation for these 
 particular w'orks is treated in a more drastic manner in this case than in the 
 case when a license is terminated at the end of the term and the reason for 
 this is obvious. At the same time it was not thought advisable to provide for 
 absolute forfeiture in all cases of cancellation for default. As already stated 
 on another page this would practically have the effect of making the process 
 :of cancellation an unworkable remedy. If diff"erent licensees must be penalized 
 in varying degree because of the nature of the default being more serious in 
 some cases than in others, this can be accomplished by varying the measure of 
 compensation which is paid for the respective licensees' works located on 
 Dominion lands in tlie different cases (84). 
 
 The rights of the Crown with respect to taking over patented lands, and 
 works other than those located on Dominion lands, and the mode of arriving 
 at the compensation to be paid for such lands and works is the same in the 
 case of the cancellation of a license for default as in the case of termination of 
 a license at the end of the term, Mdiich was fully explained on page 13. 
 
 Miscellaneous Provisions. 
 
 The Crown is to be indemnified by tlie licensee against all claims arising by 
 reason of anything done by the licensee in the exercise or purported exercise 
 of the rights and privileges granted under his license (87). In case of a 
 conflict between rights exercised by any licensee and rights acquired under the 
 Irrigation Act, the Govenior in Council may order the license terminated, 
 but in such case a bonus is to be paid to the licensee similar to that paid when 
 the works are taken over for the purpose of instituting a more comprehensive 
 development as already explained in discussing " power output clauses " (89). 
 Waters diverted are to be returned to the channel through which they would 
 have flowed had there been no diversion in such a manner as not to lessen the 
 volume of w^ater in the channel (90). 
 
 Temporary disposition may be made 'of lands reserved for water-power 
 purposes under the authority of the regulations provided that such temporary 
 disposition does not interfere with the main purposes for which the lands are 
 reserved (91). 
 6373—2* 
 
20 
 
 Compliance with the Navigable Waters Protection Act will not be excused 
 by any license issued or approval granted under the proposed regulations. The 
 licensee must also comply with the provisions of any statutes governing such 
 matters as purity of waters, logging, timbering, fishing or other interests which 
 might be affected by operations conducted under the license (92). 
 
 The Minister has power to make supplemental rules regarding such 
 matters as the nature of the plans and specifications to be tiled, the forms to be 
 used, etc. The Minister is also empowered to make such surveys and investiga- 
 tions of the sources of water supply, the discharge of streams, the availability 
 of any waters for power purposes and other related matters as he may consider 
 necessary (93,94). 
 
 Miniipwanka Dam, near I^ntT, AilnTtu. 
 
 Small Water-Powers. 
 
 Where the Department's estimate of the capacity of the site applied for. 
 under average usable flow conditions, does not exceed five hundred horse- 
 power, and where, the Minister considers, after receiving a report by the 
 Superintendent of Water Power on the subject, that .such site is not of primary 
 importance for commercial or ]>ublic utility ])urposes, the application may be 
 treated as a special case, an<l the Minister may. if he considers such action 
 
21 
 
 ill the public interest enter into an agreement for a license incorporating 
 special terms and not subject to the general provisions of the regulations, but 
 such license shall in no case be for a term exceeding ten years (95-97). 
 
 Departmental Work Simplified. 
 
 In order to obviate the general practice of practically retyping all the 
 provisions of the regulations in every agreement, license or lease issued, a 
 provision has been introduced providing that every agreement, license or 
 lease shall be deemed to incorporate and shall be subject to the provisions of 
 the proposed regidations in so far as applicable without restatement of the 
 said provisions in such agreement, license or lease (16 [2], 42 [2]). 
 
 This feature of the regulations will, if adopted, save a great amount of 
 labour on the part of the staff of the Water Power Branch, and will enable 
 the members thereof, when drafting and preparing any particular agreement, 
 license or lease, to concentrate attention on the terms which are special to the 
 case. Sections 20. 43 and 44 deal respectively with the contents of the agree- 
 ment, the license, and the lease. A glance at these sections will give an idea 
 of the concise form which these instruments will assume tinder the proposed 
 I'^rocedure. 
 
THE 
 PROPOSED REGULATIONS 
 
 23 
 
PROPOSED WATER-POW^ER 
 REGULATIONS 
 
 In virtue of the authority conferred by the Dominion Lands 
 Act (Chapter 20, 7-8 Edward VII), particularly sections 35. 
 39, 40 and 76 thereof, by the Dominion Forest Reserves and 
 Parks Act (Chapter 10, 1-2 George V), and by any other 
 Acts passed by the Dominion Parliament conferring such 
 authority. 
 
 His Royal Highness the Administrator in Council is pleased 
 to order that the following regulations, to be known as the 
 '' Dominion Water-Power Regulations," shall hereafter be in 
 force for administering the water-powers and lands herein- 
 after specified. 
 
 DEFIXTTTOX OF TERMS. 
 
 1. In these regulations unless the context otherwise interpretation. 
 requires, — 
 
 " Agreement " means an agreement for a license and (or) 
 lease under these regulations: 
 
 " Applicant " means any person or body corporate who or 
 which has filed an application for a license or lease under these 
 regulations and shall include any permittee or contractor: 
 
 "Contractor" means the holder of an agreement: 
 
 " Dominion lands '' shall extend to and include all lands to 
 which the Dominion Lands Act applies, including school lands, 
 forest reserves and parks ; the Dominion parks in the Railway 
 Belt of British Columbia ; and any other lands which are by 
 ihe Department of the Interior Act placed under the control 
 and management of the Minister of the Interior : 
 
 " Licensee " means the holder of a license under these regu- 
 lations, or any person possessing any estate or interest in any 
 water-power which is subject to the control of the Dominion 
 Government : 
 
 '^ Minister " means the Minister of the Interior and shall 
 include the deputy of the Minister, and the successor in office 
 for the time being of the Minister or such deputy : 
 
 25 
 
26 
 
 " Notice " — Any notice which is required to be given or 
 served, or which the Minister may desire to give or serve upon 
 any person in respect of these regulations, shall be considered 
 lo have been validly given or served if posted to such person 
 addressed to his last-kno%ni address or if left at the said address. 
 A notice sent by post shall be deemed to be given when in due 
 course of post it would be delivered at the address to which it 
 was sent : 
 
 " Permittee '' means the holdrr of a peruiii uudor these 
 regulations : 
 
 '* Regulations " means the regulations hereinafter set out, 
 and shall include any regulations heretofore or hereafter in 
 force for the granting and administering of the water-powers 
 and lands hereinafter mentioned : 
 
 " Stream '' or " Water-Course " shall include any river, 
 creek, lake, swamp or other natural IkmIv of water or source of 
 water supply as the case may be: 
 
 "Undertaking" means the undertaking established or con- 
 ducted or to l)e established or conducted by any applicant or 
 licensee in connection with his application, agreement or 
 license, and shall include, in so far as applicable, the 
 storage, diversion and use of water ; the development of power 
 tlierefrom ; the development of j>(»wer at any ])lant which is 
 used as an auxiliary to the water-power plant; the transmis- 
 sion and distribution of such jiower; the construction, main- 
 tenance and (operation of all the wnrks in anywise instrumen- 
 tal or useful for such purposes; and the business of the appli- 
 cant or licensee connect(xl with the foregoing: 
 
 *' Works " when used in reference to any application, permit, 
 agreement or license, means all physical structures and devices 
 constructed, used or held, or t<» i)e constructed, used or held 
 in respect of such application, permit, agreement or license, 
 and shall include all sluices, raceways, dams, reservoirs, divert- 
 ing works, gates, weirs, canals, tunnels, pipes, penstocks, water 
 eonduits, embankments, pits, sli<les, power-houses, transmission 
 lines, distributing works, mills, buildings, machines, appli- 
 ances, fixtures, equipment and ;i]>]»urtenances, so constructed, 
 used or held : 
 
 Any other term used in these regulations if defined in the 
 Dominion Lands Act (Chapter 20, 7-8 Edward VID, or 
 in the Interpretation Act (Chapter 1, R.S.C., 190G), shall, 
 unless the context otherwise requires, have the same meaning 
 in these regulations. Words importing the masculine gender 
 shall inchule the feminine and lx»dies corporate. 
 
27 
 
 APPLICATION^ OF KEGULATIOXS. 
 
 2. These regulations shall govern — 
 
 (o,) The administration of all water-powers located upon Regulations for 
 
 V ' • r> 1 administration 
 
 or within any Dominion lands as herein denned : both water 
 
 powers and lands. 
 
 (6) The administration of such of the said lands, or inter- 
 ests therein, as are, in the opinion of the Minister, essential to 
 the proper development and working of the said water-powers : 
 
 (c) The mode in which lands other than those of the Crown, 
 which are essential to the proper development and working of 
 the said water-powers may be acquired and held. 
 
 SMALL WATEK-POWEKS. 
 
 3. Where the Department's estimate of the capacity of the smaii water- 
 
 T 1 ^ -I Tin T • 1 powers to be 
 
 Site applied for, under average usable now conditions, does not dealt with 
 exceed five hundred horse-power, and where, the Minister con- separated. 
 siders, after receiving a report by the Superintendent of Water 
 Power, that the site applied for is not of primary importance 
 for commercial or public utility purposes, the application may 
 be dealt with under the provisions of sections 95 to 97 hereof.^ 
 
 THE APPLTCATTOX. 
 
 4. Every applicant for a license to divert or use water for contents of 
 power purposes shall file with the Superintendent of Water ^^^ ication. 
 Power a statement giving or accompanied by the following 
 information : — 
 
 (a) The name of the applicant: 
 
 (6) His occupation and post office address: 
 
 (c) The name or a clear description of the river, lake, or 
 other water-course from which the water is to be diverted or 
 used : 
 
 (d) The place where the water is to be diverted from or in 
 the said water-course, referred if possible to an established 
 monument of the Dominion lands system of surveys ; also the 
 place where the water is to he returned or released : 
 
 (e) The maximum and average amounts of stream flow 
 expressed in cubic feet per second which it is proposed to 
 divert or use at the place of diversion in the first year of opera- 
 tion and ultimately, under the license, namely: 
 
 1. Maximum flow, first year: 
 
 2. Average mean flow, first year: 
 
 3. Maximum flow, ultimately: 
 
 ■i. Average mean yearly flow, ultimately: 
 
 1 Page 68. 
 
28 
 
 (/) The maximum flow of water expressed in f'iil)it' feet per 
 second which will ultimately be required, at the place of use, 
 to operate the proposed works at their greatest (i.e., overload) 
 capacity: 
 
 (Whore no storaffe, pondage or penning back of the waters 
 is contemplated, the answer to this item will be identical with 
 item 3 of (<?) above.) 
 
 (g) The estimated average head in feet which will be avail- 
 able for the production of power from the fall or rapid, orfrom 
 the construction of the dam and wr»rks : 
 
 ( // ) The minimum aiiKUint of horse-power measured on the 
 turbine shaft which will be developed within five yeai*s from 
 the date of the api)li('ation : 
 
 (/') '\\n' maximum amount of liorsc-jxtwer measured on the 
 tuibiiic shaft which it is projxtsed to develop ultimately muler 
 the license.. 
 
 (j) Briefly the character and extent of all princijial works 
 whidi it is proposed to construct for diverting, conveying or 
 using the water or water-power, including dams, raceways, 
 canals, tunnels, pipe lines and other water conduits, ])ower- 
 houses. mills and transmission lines: (In reference to cnery 
 dam give its approximate maximum length and lieight ; also 
 its propo.>*ed type and the material to be used in its construc- 
 ti(»n) : 
 
 {/>■) if stt»ragc is involved, the location of each lake, basin 
 or other place in which it is desired to store water; also, with 
 reference to each such place, the capacity in acre-feet of 
 storage desired, the aj»j)roximate ninnber of acres of land which 
 it is proposed to flood and the api)roximate area ia acres of the 
 surface of the reservoir when tille<| : 
 
 (/) A reasonably accurate description and the area in acres 
 of the lands which must be occuj)ied or used in the construc- 
 tion, maintenance or operation of the jtroposed W(»rks, noting 
 sej)arately lands recpiircil for riirbts of way and lands which 
 must be flooded : — 
 
 1. Within i>oMiinion lands: 
 
 2. Within provincial Crown lands: 
 
 •"i. Within privately ownecl lands: 
 
 (Describe by section, township, and range or by jot niunber, 
 if in surveyed territory ; and if other than Crown lands give 
 tlie name of the registered owner in fee, any registered mort- 
 gagee or lessee, and any clainuint in actual ])ossession otiier 
 ilian a registercvl owner, mortgagee or lessee). 
 
29 
 
 (m) A sketch or plan (which need not necessarily lie drawn 
 to a scale) showing- approximately the location of all the 
 principal works and lands referred to in the last three preceding 
 i reins : 
 
 (n) The nearest neigh bonring works or strnctures ciin- 
 plered or in course of construction, both above and below the 
 place of the proposed diversion, for diverting or using water 
 for any purpose from the same source of supply and the 
 approximate distance and direction of each such works from 
 the proposed works ; also the names and location of any other 
 works or structures whatever (including bridges, railways and 
 canals) which might affect or be affected by the construction, 
 maintenance or operation of the proposed works. State the 
 nature of any possible conflict, and also whether any of the 
 works mentioned are irrigation works within the meaning 
 of the Irrigation Act: 
 
 (o) The approximate discharge in cubic feet per second, 
 at or near the place of diversion of the river, lake or other 
 source from which the water is to be diverted at high, medium 
 and low water stag;es respectively, also a copy of any existing 
 measurements of the flow of the stream in the possession of the 
 applicant or of which he knows : 
 
 (p) Briefly an outline of the undertaking in respect of 
 which the license is desired, including the use to which the 
 power is to be applied, any sale, delivery or transfer thereof to 
 other than the applicant which is contemplated, the territory, 
 if any, within which such sale, delivery or transfer is to be 
 exercised, the probable demand for power within such terri- 
 tory and an estimate of the capital cost of the entire under- 
 taking : 
 
 (q) The financial standing of the applicant with reference 
 to his ability to carry out the proposed undertaking. (The 
 applicant, when requested so to do by the Minister, shall file 
 an affidavit setting forth such facts with respect to this item 
 as the Minister may require, which affidavit will he treated 
 as confidential.) 
 
 (r) If the applicant be an incorporated company, the state- 
 ment shall, in addition to the foregoing information, set 
 forth : — 
 
 1. The names of the directors and officers of the com- 
 pany, and their places of residence. 
 
 2. The head office of the company in Canada. 
 
 3. The amounts of sul)scribed, and of paid-up capital, 
 specifying in regard to the latter^ (a) how much has 
 
30 
 
 been paid in cash, and (h) in what manner the balance 
 has been paid for, also the proposed method of raisino- 
 fnrther funds, if reijuired, for the construction and opera- 
 tion of the proposed works. 
 
 4. Copy of such parts of the charter or memorandum 
 of association as authorize the application and proposed 
 undertakini--. 
 
 Elevations re- 
 ferred to sea- 
 level. 
 
 Minister mny 
 request further 
 Information. 
 
 (s) If the applicant ix' a municipality, then the f<>llowini>; 
 special information shall be o-iven in addition to that requiivd 
 in items («) to (q) above, namely: — 
 
 1. The location, area and boundaries of the munici- 
 pality. 
 
 2. The a[)pi-oNiiii;iic nniiibcr of its inhabitants. 
 
 • !. llic ])r('S('nr c-timatcd market value of the property 
 owned l)y sufli nmiiicipality. 
 
 4. The asse>sed value of the property subject to taxa- 
 tion by sucli miniicipality. 
 
 '). A certified copy of any ly-hiw or rexilutiou passed 
 by liie municipality respectiiiir the application or the 
 undertakiiiiT to which tlie application relates, and also a 
 certified copy of any eiuii)linj; Act or other statutory 
 provision authoriziui:: the municipality to engage in tiie 
 proposed undertaking. 
 
 5. All elevations given in connection with the plans or other 
 information filed by any applicant <liould be referred, if po— 
 sible. to mean sea-level datum.* 
 
 6, The Minister sluill have power, at any time while an 
 application is pending, irrespective of any other re«|uirement 
 of these regulations, to call for such additional plans, descrip- 
 tions, measurements, specifications, or other data (whether 
 related directly or indirectly to the proposed works and undc^r- 
 taking) as he considers necessary, and the same -hall be fur- 
 nished by an<l at the expense of the applicant. 
 
 ai:tiioki/..vti(>n to m.vkk sruvKVs. 
 
 Auliiorization. 
 issued if 
 necessary. 
 
 7. rile Minister may. if he considers it ad\isable. issue to 
 any a]»plicant an authorization to make surveys which shall 
 empower the aj)plicant to enter upon any Crown lands without 
 other license therefor, and ujx^n tl\e lauds of any pers<3n 
 
 1. Altitudes In Canada by James White, Assistant to the Chairman, 
 Commission of Conservation, Ottawa, 1915, will serve as a satisfactory guide 
 on this- subject. 
 
31 
 
 whomsoever for tbie purpose of making such surveys and inves- 
 tigations as may be necessary for the preparation of his general 
 layout plans and data, but for no other purpose whatsoever. 
 
 8. The issuance of an authorization to make surveys shall ^° special rights 
 
 . . T c acquired. 
 
 not give the applicant any priority over other applicants for 
 the development of any water-power, nor any special claim or 
 right whatsoever in respect of the said water-power. 
 
 9. The applicant shall furnish such security as the Min- Applicant to 
 
 ^ , , 1 • 1 1 furnish security. 
 
 ister may require lor the payment of any sums which may be 
 subsequently awarded for the damage caused by the applicant 
 in making any surveys and investigations authorized under 
 these regulations, and the applicant shall, in making such sur- 
 veys and investigations, do as little damage as possible, and 
 shall make full compensation therefor to all persons sustain- 
 ing the same. 
 
 10. In case the applicant and the person whose lands are Provision for 
 damaged by the making of any such survey's and investigations dama^'"'"^ 
 cannot agree on the amount of the compensation for the dam- 
 age done, either party may apply to any superior or county 
 
 court of the province or district in which the lands entered 
 upon are located to have the question settled by arbitration, 
 and thereupon the procedure supplied in the Railway Act for 
 determining the compensation for the taking and using of 
 lands by a railway company and for awarding the costs of the 
 said arbitration shall be followed, as provided in subsection 8 
 of section 35 of the Dominion Lands Act. 
 
 GEXEKAL LAYOUT PLANS. 
 
 11. Forthwith after the tiling of the application, or after ^^^"^ t° ^« , 
 
 f^ / i _ " prepared and 
 
 the issuance to the applicant of the authorization to make sur- filed . 
 veys, if such authorization has been considered necessary, the 
 applicant shall proceed with the preparation of his general lay- 
 out plans and data, and shall file the same within such time 
 as the Minister shall specify, not to exceed in any ease, one 
 year from the date of the filing of the application. 
 
 12. The general layout plans and data shall be such as will '^^^^^^^ layout 
 enable the Superintendent of Water Power to determine plans, 
 whether the proposed works are of suitable desigTi to accom- 
 plish the purpose intended, whether the proposed development 
 
 is in general accord with the most beneficial utilization of the 
 resources of the stream and \vhether the proposed undertaking 
 is feasible and practicable and in the public interest, and such 
 
32 
 
 Lands. 
 
 Nearby works 
 to be shown on 
 plans. 
 
 Requirements 
 'P plans. 
 
 plans shall further conform to any requirements of the ^lin- 
 ister not inconsistent with these reijulations. The said data 
 shall in all ca<e.s include preliniinarv e>timates of cost. 
 
 13. The said plans shall in every case show the location 
 and area of the land which must he occupied, used or flooded 
 ir. connection with the proposed works. (This information 
 should be in such form as will satisfy the requirements of item 
 (l) of section 4.) 
 
 14. If there are other works ;il ready constructed or in 
 course of construction in the neighbourhood of the proposed 
 works for diverting or using water from the same stream, the 
 said plans shall in<licate the location, and give tlie distance 
 from the proposed works, of the nearest of such other existing 
 works both above and below the ])roposed works, and, if a 
 power development, the normal elevation of the head-water 
 and tail-water thereof, or if other tiian a power development, 
 the elevation of the sill of the head-gate or head-gates, such 
 elevations in every case to be referred to the same system of 
 elevations as are used to designate elevations at the site of the 
 |)ro])osed works. 
 
 15. Jlie .>ai<l plan.< .•^hall be (»ii tracing linen; the said 
 -pecitications shall be either print'il or typed; and both plans 
 and specifications shall be filed \vit!i the Superintendent of 
 Water Power at Ottawa. Elevations wherever pos,sible shouhl 
 be tied in to mean sea-level datum.' 
 
 i\l ini.-^tiT may 
 execute agree- 
 ment. 
 
 THK ACJKEKMEXT VOU A I.H'K.NSK. 
 
 16, (1) rpon a report Ix'ing made by tiie Superin!''i:<I;'iit 
 of Water Power that the proposed works are of suital)h! design 
 to accomplish the purpose intended, that the proposed develop- 
 ment is feasible and practicable and will accord witii the most 
 beneficial utilization of the resources of the stre^im and that 
 it is the best possible development, in the public interest, of 
 which the site in (piestion is capable, bearing in mind both 
 present conditions and future requirements, the Minister mr'. 
 if he deems it advisable, enter into an agreement with the 
 applicant for the carrying out of tiie said development. 
 
 (2) Every such agreement shall be deemed to incorpo'.ate 
 and shall be subject to the provi?i«»ns of these regulations '.n 
 so far as applicable without restatement of the said provisions 
 in the agreement it.self. and shall also W subject to such other 
 stipulatitms. provisos and conditioiLS, not inconsistent with 
 these regulations, as the ^linister may impose. 
 
 1 See footnote on page 30. 
 
33- 
 
 17. If the Minister is of the opinion that more information Minister may 
 
 ^ . 11 issue permit. 
 
 is necessary before the agreement provided for m the last 
 preceding section can be entered into he shall defer entering 
 into the same, but may, if he considers it desirable, issue to the 
 applicant or to each of several applicants a preliminary permit 
 which, in addition to conferring upon the permittee the same 
 rights and imposing the same obligations as are conferred and 
 imposed by an authorization to make surveys as hereinbefore 
 provided, shall authorize the permittee to make such further 
 surveys and investigations, as may be necessary to prepare the 
 additional information required and to file the same. 
 
 18. As between several preliminary permittees, other Priority under 
 
 !• 11 1 • ^ 11 permit. 
 
 things being equal, that one whose permit ante-dates the others 
 shall be entitled to have the first opportunity for entering into 
 an agreement for the development of the site, provided always 
 that he files the information required by the Minister within 
 the time required and otherwise complies with the provisions 
 of. his permit and of these regulations, but such permit shall in 
 no case be construed as binding the Minister to enter sucli 
 agreement, jior as giving the applicant any exclusive claim or 
 right in respect of the development of the water-power site, 
 nor as relieving the Minister from considering other possible 
 schemes for the development of the site if there is reason to 
 believe they may result in a more beneficial utilization of the 
 natural resource or be otherwise more in the public interest. 
 
 19. A preliminary perftiit shall be effective for a period not Renewals 
 to exceed one year unless renewed but may, if in the opinion of 
 
 the Minister the case justifies S'uch renewal, be renewed for 
 not more than two further consecutive periods of six months 
 each. If the plans and information required are not completed 
 and filed before the expiration of the said initial period or any 
 renewal thereof which is granted, no further concessions Vvith 
 respect to the proposed development shall be granted to tlie 
 applicant. 
 
 20. Every agreement for the development of a water-power ag"eern«it°' 
 under these regulations shall set out, in so far as applicable 
 
 to the case, the following particulars : — 
 
 (a) The name and address of the contractor: 
 
 (h) A reference to the application and the date thereof; 
 also a reference to any authorization or permit which maj 
 have been issued in favour of the contractor, the date of each, 
 and a statement whether the requirements of the regulations 
 have been fully complied with by the contractor : 
 6373—3 
 
84 
 
 (c) A statement setting forth briefly the name and location 
 of the power-site and the nature and extent of the works and 
 undertaking proposed for its development, also a reference to 
 any plans or data on file in which the said proposed works and 
 undertaking are more fully shown or described: 
 
 (d) The latest date upon which the contractor may file his 
 final plans and specifications with the ^Minister for approval, 
 which date shall in no case be niore than one year -after the 
 date of the agreement : 
 
 (e) The minimum amounts of expenditure .which shall be 
 made on the works within stated periods after the applicant 
 has been notified by the ^linister of the approval of the final 
 plans and specifications: 
 
 (/) TIh- iiiijiiiiimii niiMtunt of liursc-jjowcr measured on 
 I lie turbine shaft which shall be developed and put to a bene- 
 licial use within a fixed period, not exceeding five years, from 
 the date of the agreement: 
 
 (r/) The date du or b('f(»re wliicb the works must be com- 
 pb'tc.'d : 
 
 ( // ) A general statement with respect to the Duminion lands 
 vrliich the ap|»licaiit may, for the time being and subject to the 
 provisions hereinafter set out enter upon, use or occupy for 
 making -urvcy-; and investigations and constructing works: 
 
 (/) 'I'bc amounts of stream-How. if any. which nuiy b(> tem- 
 porarily diverted, used or stored under the agreement, pending 
 ihe issue of a license: 
 
 ( j ) Tbe sum or sums to be ]t;ii«I :is rentals oi- ntvalties for 
 tlie hinds occupied or the waters used during the life of the 
 agreement, also the times and the nujuner of the paynu'iit 
 Miereof : 
 
 (A) A promise ou the part of the c^^ntractor that he will 
 observe and fulfil all the terms and c<»nditions of these regula- 
 tions or of tbe said agreeuu-nt re<|uired to be observed or ful- 
 rilled ity him, including, in every case where an agreement is 
 cancelled or terminated under the terms thereof or of these 
 regulations, the provisions of section 85 ; and als4j a promise 
 that he will, whenever requested so to do by the Minister, 
 execute the acceptance of the license and (or) lease to be issued 
 by tbe .Minister in conformity with thes<' regulations, and the 
 undertakiuir in conjunction therewith as set out in section 80. 
 
 (/) The amount of the bond or checpie, if any, recpiired 
 to be deposited by the contractor as security for the j^erform- 
 ance of the terms and conditions of the agreement : 
 
35 
 
 (m) A promise to issue in favour of the contractor upon 
 completion of his works and observance and fulfilhnent by 
 him of all the terms and conditions required under his agree- 
 ment and under these regulations to be by him observed and 
 fulfilled :— "^ 
 
 (1) A water license and a statement of the principal terms, 
 which, subject always to these regidations will be 
 embodied in such license when issued, with particular 
 reference to items (r), (c). if) and {g) of section 43, 
 and (or) 
 
 (2) A lease of lands and a statement of the principal 
 
 terms, which, subject always to these regulations will be 
 
 embodied in such lease when issued. 
 
 {n) A statement that, pursuant to the statute in that behalf, 
 
 no member of the House of Commons of Canada shall be 
 
 admitted to any share or part of the said agreement or to any 
 
 l)enefit to arise therefrom: 
 
 (o) Any other special terni> and conditions which, subject 
 always to these regulations may be imposed by the Minister. 
 
 RIGHTS IX LAXDS UNDER AGREEMENT. 
 
 21. Onlv such interim rights of entry upon or of the use Temporary rights 
 
 T^ . . T 1 1 11 -• • 1 • ^"^ Dominion 
 
 or occupation of any JJominion lands shall De acquired m lands. 
 virtue .of any agreement executed under these regulations as 
 may, in the opinion of the Minister, be necessary for the pur- 
 pose of making surveys, preparing jDlans, constructing works 
 and otherwise carrying out the terms of the agreement and 
 in no case shall the rights granted by any agreement be con- 
 strued to interfere in any way with any interest in Dominion 
 lands previously disposed of by the Crown. The Minister 
 may, from time to time, as plans and information are tiled 
 showing the extent and scope of the works and undertaking 
 of the contractor with greater precision than was possible when 
 the agreement was executed, and pending the execution of the 
 lease hereinafter mentioned, designate, allot, amend and limit 
 the areas of the said lands which the contractor is permitted to 
 enter upon, use or occupy for the purpose aforesaid, and the 
 Minister's decision on the above matter shall be final. 
 
 22* The powers of expropriation conferred on contractors Rights in private 
 by subsection 3 of section 35 of the Dominion Lands Act shall '^"^^• 
 in no case be exercised until the Minister, by a permit or other 
 writing issued in favour of the contractor, has designated the 
 lands with respect to which such powers may be exercised, and 
 
 6373— 3i . ' ; 
 
the Minister shall not issue such permit or other writing prior 
 to the filing by the contractor of his final plans of the works 
 and of the lands which are required to he occupied as herein- 
 before specified. Any such j)ermit <»r writing shall expressly 
 provide that the power to expropriate is granted only in so far 
 as His ^Majesty's Government in rlie right of (^mada is 
 empowered to grant the same. 
 
 iJK.XTALs r.xiiKi; a(;i;krmf,nt. 
 
 Rentals under 
 agreement, when 
 payable. 
 
 23. The first payment on animal rentals account under any 
 agreement shall be payable on or before the execution of 
 the agreement, and shall be proratc^d to cover the then unex- 
 pired portion i»f the calendar year; subsequent payments oii 
 said account shall be payable on the first day of January of 
 each year in advance; provided that on the issuance of the 
 license or lease to which the agreement relates, the contractor 
 shall be credited on license or lease rentals account with any 
 excess of j)aym(Mit made by him fi»r the then unexpired portion 
 (if the calciidar vcar nu the aiircfiiK'Mt-rentals account. 
 
 FIN.\I. I'I,.KNS OK WOKKS. 
 
 Wlien to be 
 preparecl. 
 
 Nature of final 
 plans. 
 
 24. ( 1 ) Fortliwitli after the exectition of any agreement 
 the contractor shall commence and carry forwani the prepara- 
 tion of the tinal ■j)laii-; and ;*pecifications <if all the pnn>os4'd 
 works for the development of power at the site in <piestioii, and 
 for the utilization of the said |x»wer or for its transmission and 
 distribution as the case may be. and he shall c<tmplete and file 
 the said plans with the Superintendent <d' Water Power within 
 the time specified in the agrt'ement. 
 
 (2) The final working plans and specifications shall be 
 such as will enable a contractor to carry out the construction 
 of the works therefrom. The plans shall be accompanied by 
 estimates of cost and by such further reports and data as the 
 Minister may re<|uire to demonstrate whether the proposed 
 undertaking is practicable and feasible and in the pid)lic 
 interest. The said plans shall ciuiform to any requirements 
 of- the .Miiii-ter n(»t incon-istent with these regulations. 
 
 Further 
 requirements, 
 fln;>l plana. 
 
 25. The said plans shall be on tracing linen; and the -aid 
 specifications .<hall be either printed or typed; and both plans 
 and specifii'ation< <hall be filed with the Superinteinlent of 
 Water Power. 
 
37 
 
 PLAN OF LANDS. 
 
 26. ('!) The contractor shall, at such time as shall be fixed Plan of lands 
 
 ITU--- 1 r- T 1 J- ^ 11 by Dominion Land 
 
 Dy the JVlmister, supplement the final plans oi the works by a surveyor. 
 plan of lands from an actual survey of a Dominion Land 
 Surveyor whose appointment shall have bepn approved by the 
 Minister. Such plan of lands shall be certified by such surveyor 
 and shall show and describe by section, township and range or 
 lot number, if in surveyed territory, or by other accurate 
 description, if in unsurveyed territory, the lands which must 
 be occupied or used in the construction, maintenance and opera- 
 tion of the proposed works, noting separately, — 
 
 (a) Dominion lands not covered by water required for 
 main diverting works, power-houses, etc. : 
 
 (h) Dominion lands covered by water required for the said 
 purposes : 
 
 (c) Dominion lands required only to be flooded in connec- 
 tion witli the storage or pondage of water : 
 
 (d) Dominion lands required only for rights of way for 
 water conduits, transmission lines, etc. : 
 
 (e) Dominion lands, if any, required for substations, dis- 
 tributing stations, terminal stations, etc. : 
 
 (/) Provincial Crown lands : 
 
 (g) Privately owned lands : 
 
 Before any such survey is proceeded with, instructions 
 therefor must first be obtained from the Surveyor General of 
 Canada. 
 
 (2) The said plan shall be accompanied by a statement 
 giving with respect to each parcel of privately owned lands-— 
 
 (a) The registered owner in fee thereof: 
 
 (b) Any registered mortgagee or lessee: 
 
 (c) Any claimant in actual possession other than a regis- 
 tered owner, mortgagee or lessee. 
 
 (3) If so required by the Minister the surveys and investi- 
 gations called for by this section shall be made by a depart- 
 ment surveyor appointed by the Minister and in such case the 
 contractor shall reimburse the Minister for all salaries and 
 expenses paid for such surveys upon the presentation of certi- 
 fied accounts to the contractor bv the Minister. 
 
38 
 
 APPROVAL OF PLANS. 
 
 When to be 
 approved. 
 
 27. The Superintendeut of Water Power shall examine the 
 said final plans and specifications of the works, and the said 
 plan of lands as soon as possible after the same have been filed, 
 and shall report thereon to the ^Minister, and shall notify the 
 contractor in writing; in any case not later than six months 
 after the latest date permitted for the filing of the said plans 
 and specifications whether the Department has approved the 
 same, or subject to what conditions they have been appmved, 
 or whether the plans have been rejected, and the agreement 
 cancelled. 
 
 BOND. 
 
 Bond in amount 
 to be fixed by 
 Minister. 
 
 28. Within >i.\ty days after being ni»tified in writing by the 
 Superintendent i>t" Wafer Power <d" the decision of tlu- l>epart- 
 ment tiiat the final plans and specitications of the work have 
 been approved; the contractor shall depfisit with the Minister 
 either a cheque or cheques drawn on a chartered bank, in such 
 anntunt as tiie Minister may deem proper for guaranteeing the 
 performance and fulfilment by the contractor of the terms and 
 conditions of his agreement, which deposit shall be forfeited 
 to His Majesty as li(|ui<lated damage> if the contractor does 
 not, to the satisfaction of the Minister, perform and fnlfil thp 
 said terms and conditions; or, at the option of the Minister, a 
 bond in such amH»unf as the ^linister shall specify, guaranteeing 
 the said performance and fulfilment. Evidence of the said 
 prrfonnance and fulfilment shall be supported by statutory 
 declaration as hereimifter provide<l. 1'pon the said teruis and 
 conditions being performed and fulfilled to 'he satisfaction of 
 the Minister, the obligation of the contractor in respect of su.di 
 deposit or bond shall cease and >m-h deposit or bond as the 
 ca^-e mav be shall be returned to liim. 
 
 W(H;KS CONSTRICTION AX1> Ol'KK.VT lO.N BY ("ON'lUAC'Toi;. 
 
 Xo commence- 
 ment till after 
 approval. 
 
 Commencement 
 and pro«»ecution 
 of construction. 
 
 29. ( 1 ) The c-ontract/or shall not commence the actual o<in- 
 struction of the propr>sed works until after boing notified as 
 hereinbefore provided, that his final plans and specifications 
 of such works have Wen approve. 1 either with or without con- 
 ditions by the Department. 
 
 (2) Within six months after receiving such notification the 
 contractor shall commence the construction of the said works 
 and shall thereafter without interruption, except sucli as may 
 be occasioned by stress of weather or other cause beyond rhe 
 
39 
 
 control of the contractor (other than want of funds), carry 
 on and complete the construction of the said works aecr.rding to 
 the plans and specifications as so approved, and subject to ihe 
 terms -of the agreement and of these regulations. 
 
 (3) The contractor, before making- any material chanae in Authorization 
 
 ^^ . . > 1 • necessary for 
 
 works constructed or under construction m pursuance ol his change in works 
 
 agreement or in the location thereof from the plans as approved taking!*" ^^' 
 
 by the Minister, or before making any change in the character 
 
 of the undertaking authorized by such agreement or in the 
 
 purpose for which the said works are to be utilized as set out in 
 
 such agreement shall submit a complete statement and plans of 
 
 such proposed change to the Minister and the putting into eifect 
 
 thereof shall be subject to such conditions as the Minister, at 
 
 the time of giving his approval thereto, may impose. 
 
 30. (1) In the event that the said works are put into opera- if works 
 tion before the issuance of the water-license, the contractor agreenaent 
 shall, pending the issuance of such license and until otherwise 
 agreed upon, maintain and operate the same to the satisfaction 
 of the Minister and shall at no time raise the level of the waters 
 of any river, lake or other body of water or permit such level 
 to be raised higher than the elevation which shall be fixed from 
 time to time by the Department and shall abide by all reason- 
 able regulations which may iivmi time to time be promulgated 
 by the Minister for the control of the flowage of any waters 
 for general conservation purposes. 
 
 (2) The contractor shall in such case pay for any water 
 used in the development of power prior to the issuance of the 
 said water-license, such sum or such rate per horse-power as the 
 Minister may determine. 
 
 31. The Minister or any engineer or person appointed inspection during 
 by him for that purpose shall have free access at all times to all construction. 
 parts of the lands being occupied or of the works being con- 
 structed by any contractor for the purpose of ascertaining 
 whether the terms and conditions of the agreement are being 
 satisfactorily carried out by the contractor, and in particular 
 whether the construction of the works is in accordance with the 
 plans and specifications approved as hereinbefore provided ; 
 also for the purpose of checking and taking note of construction- 
 cost data; for which purposes the contractor or any sub-contrac- 
 tor shall give the Minister or the engineer or person appointed 
 for the purpose access to figtires in the possession of such 
 contractor or siiib-contractor a^t all reasonable times. 
 
 32. The Minister, if he considers the case of sufficient inspecting and 
 importance, may place a qualified inspecting engineer on the gi*neers!"^ ^"' 
 
40 
 
 work (hiring- eonstnictiou and may also if he considers it neces- 
 sary retain a consulting engineer for advice in connection with 
 the plans or works of the contractor. The contractor shall 
 reimburse the Minister on or before the first day of January 
 in each year for all sums paid for salaries, fees, and expenses 
 of the said inspecting and consulting engineers in respect of 
 the undertaking of the contractor on statements being sub- 
 mitted by the Department from time to time of the sums so 
 paid. 
 
 If inspecting 
 engineer's 
 instructions 
 not followed. 
 
 33. The contractor shall abide by, conform to and carry 
 out all written instructions of the inspecting engineer regard- 
 ing the construction of all works in accordance with the plans 
 and specifications approved as hereinbefore provided, and in 
 case of dispute, regarding such written instructions, or regard- 
 ing the plans and s])ecifications, the Minister's decision shall 
 Ihj final and conclusive; and in case the contractor does' not 
 abide by or conform to and carry out the written instructions 
 of the inspecting engineer the ^linister may cause the con- 
 tractor to suspend all operations with respect to works herein 
 mentioned until he gives instructions to resume operations. 
 
 Contractor's 
 reports. 
 
 34. The contractor shall submit such reports of ])rogress 
 during construction of the sai<l works as the Department may 
 from time to time require. 
 
 Contractor to 
 observe certain 
 obligations 
 of lessees, 
 licen.'see!*. etc. 
 
 35. Tn addition to any obligations specially imposed upon 
 cuntractors in this part of these regulations, every contractor 
 shall, in so far as his position with respect to the use and oecu- 
 ]).incv of Dominion lands an<l waters, or the maintenance an<l 
 operation of his >vorks or the carrying on of his undertaking 
 for the time IxMug is simihir to that (»f a lessee or license*^, 
 observe and comj>ly with all the provisions of these regulations 
 n|il)licable to les.sccs aiul licensees. 
 
 Proof of 
 completion. 
 
 By .statutory 
 declaration. 
 
 36. (li I'nless excused from com])liance with this sec- 
 tion hy the .Minister, the contractor shall file with the Su])er- 
 intendent of Water Power within sixty days after the date 
 fixed in his agreement for the completion of his works and 
 fulfillment otherwise of the terms of his agreement, jiroof of 
 such fiiltillment and completion. 
 
 (2) The said proof shall be in the form of a statutory 
 declaration by the contractor, or, if the contractor is a body 
 corporate, by one of the officers thereof, sujiported in either 
 case by the statutory declaration of two reputable persons 
 
41 
 
 olher than the contractor and not interested in the agreement. 
 Blank forms for making the said declaration shall he supplied 
 €n request, by the Superintendent of Water Power. 
 
 37. The Minister may defer the issuance of any license Minister may 
 until a satisfactory inspection and survey of the works con- ^^^^ mspec ion. 
 structed, the lands occupied and the water used has been made 
 
 under his direction. If required so to do by the Department 
 the contractor shall pay the cost of such inspection and 
 survey. 
 
 CA?iCELT.ATIOIV OF AGREEMENT FOR DEFAULT. 
 
 38. (1) If default shall be made by the contractor in any cancellation 
 part of the payment of the rental payable under his agreement ^^ default, 
 for thirty days after the same shall have become payable 
 (whether formally demanded or not), or in the satisfactory 
 completion of the proposed works within the time specified in 
 
 the said agreement, or in the development and putting to a 
 beneficial use within the time specified in the said agreement 
 of the amount of power prescribed therein, or in the observance 
 or fulfilment of any other term or condition of the said agree- 
 ment, the Minister to he the final judge of such satisfactory 
 completion of works, development and use of power or obser- 
 vance or fulfilment of other term or condition, provided always 
 that, except respecting non-payment of the said rental, the 
 Minister shall have given the contractor written notice of such 
 contemplated cancellation and his reasons therefor and allowed 
 the contractor sixty days in which to file in writing his objec- 
 tions to such cancellation and considered the said objections, 
 it shall be lawful for the Minister by a writing under his hand 
 to cancel the said agreement and determine the rights thereby 
 conferred, and to repossess himself on behalf of His Majesty 
 of the Dominion lands used or occupied in connection with 
 the said agreement and all works, structures and equipment 
 located thereon. 
 
 (2) If an agreement is cancelled for default on the part f « compensation 
 
 ^ ^ ^ ^ , _ , i , for works on 
 
 of the contractor under the terms of this section, and if, in Dominion lands, 
 the opinion of the Minister, the contractor is entitled to com- 
 pensation for any works constructed on any Dominion lands 
 or for any plans filed by him in pursuance of his agreement, 
 the Minister may make any prov*ision which he deems proper 
 for arriving at or securing the payment of such compensation. 
 
 39. In the case of default on the part of the contractor as Alternative 
 
 f -11 • ^ • ■ r \ ~\r- • ^ i procedure where 
 
 aforesaid, where, m the opinion of the Minister, the works substantial 
 already constructed by the contractor represent a substantial p^^"**^^-^ made. 
 
42 
 
 Rights' of Crown 
 In patenterl l.inds 
 and works, etc., 
 not attached 
 to Dominion 
 lands. 
 
 Amending the 
 agreement. 
 
 percentage of all the work.-^ required to be constructed under 
 his agreement, or if the money already expended by the con- 
 tractor in the actual development of tlie water-power site, 
 including engineering expenses, purchase of equipment, con- 
 struction of roads, railways or other incidental works, repre- 
 sents a substantial percentage of the total sum required to be 
 expended for the said purpose under the agreement, the 
 ^Minister may — 
 
 (a) After cancelling the existing agreement, grant the 
 contractor priority over all other applicants for entering into 
 a new agreement with His ^lajesty for the development of the 
 site in (piestion. but in every such case such new agreement 
 and any further c(»ncessions made in favour of the contractor 
 shall be made subject to and shall be deemed to incorporate, 
 in 50 far as applicable the provisions of the water-power regula- 
 tions of the Dominion (iovcrnment then or thereafter in force: 
 
 (6) Refer the matter of such non-observance or non-fulfil- 
 nient to the Exchecpu'r Court of Canada, after giving the 
 contractor nr»t less than thirty days' notice in writing of such 
 reference, in which case if the said Court after hearing the 
 matter finds that there has In'cn failure on the part of the 
 contractor to observe or fnltil any term or condition of the 
 said agrj'cment and th<' case is one which cannot, in the opinion 
 of tlie said Court, be met by an order of specific performance 
 or l)v the award of a sum payable to the Crown as liquidated 
 <bimage.< the said agreement shall be subject to cancellation 
 oil the order of the said Court without compensation for thd 
 works of the contractor located upon Dominion lands or with 
 such partial comj)ensati(m in comformity always with the 
 principles n{ these reLnibitioiis iis the said Court may deter- 
 mine. 
 
 40. It" any agreenjent is canc<'lletl under the terms of 
 ( ither of the last two preceding sections, the rights of His 
 ^fajesty with respwt to the pos.session, occupation and use of 
 }»ny lands, works, structures, eciuipment or properties other, 
 than Dominion lands and works loeated thereon, then owned or 
 Ik bl by th<» contractor and used or occupied in connection with 
 the undertaking to which his agreement relates, and the com- 
 pensation to be paid for any such other lands, works, struc- 
 tures, equipment and properties shall be as set out in section 
 S.'i hereof. 
 
 41. Subject to these regulations and except with respect to 
 ihe date on or before which the works of the contractor must be 
 completed, and excepting also with respect to the minimum 
 amount of horse-power which shall be developed and put to a 
 
43 
 
 heiieticial use within a fixed period not exceeding five years 
 from the date of the agreement, the terms of any agreement 
 may be amended by a supplementary agreement entered into 
 between the Minister and the contractor ; and plans and specifi- 
 cations previously approved may be amended with the con- 
 sent in writing of the Minister, but any such amendment shall 
 affect only the portion specifically covered in such supplemen- 
 tary agreement or writing, and shall in no case operate to 
 alter or amend or in any way whatsoever be a waiver of any 
 other part, condition or provision of the original agreement. 
 
 LICENSE AXD LEASE. 
 
 42. (1) Upon the filing of proof by the contractor, or upon Minister may 
 an inspection, in either case showing to the satisfaction of the ^^^"^ icense. 
 Minister that the contractor has completed his works accord- 
 ing to the plans previously approved and has fulfilled and 
 complied with all the terms and conditions of his agreement, 
 
 and of these regulations, the Minister may issue in favour of 
 such contractor: — 
 
 (a) A license for the diversion and use of water at the 
 site in ques4;ion, and (or) 
 
 (b) A lease of the lands which, in the opinion of the 
 Minister, are required for the proper maintenance and 
 operation of the works which are to be maintained under 
 
 * the said license. 
 
 (2) Every such license or lease shall be deemed to incor- 
 porate and shall be subject to the provisions of these regula- 
 tions in so far as applicable without restatement of the said 
 provisions in such license or lease itself, and shall embody, in 
 so far as not inconsistent with the said regulations, the terms 
 previously agreed upon, and such other terms and conditions 
 as the Minister may impose. 
 
 (3) Every such license shall also be deemed to incorporate 
 the provisions of any lease of lands issued in conjunction there- 
 with and the licensee shall comply with and be bound by the 
 same. 
 
 43. The license shall set out, in so far as applicable to the Contents of 
 case, the following particulars : — 
 
 (a) The name and address of the licensee: 
 
 (h) A reference to the agreement and a statement whether 
 
 or not the conditions thereof have been fully complied with ; 
 
 also a reference to any lease under which the required rights 
 
 in Dominion lands are to be acquired by the contractor: 
 
44 
 
 (c) The term of the license: 
 
 (d) A statement setting forth ck'arly the positit^n und extent 
 of the works authorized to be maintained and operated under 
 the license and a reference to one or more sketches, maps or 
 plans (copies of which may be attached to the license, but 
 the originals of which shall remain on tile in the Department) 
 in which sketches, maps or plans the position and exteait of the 
 said works are more particularly shown, including: 
 
 (1) The place of diversion or use in the stream and 
 the course of the stream at the said place: 
 
 (2) All principal works for diverting, conveying, 
 storing or using the water or the power developed therefrom: 
 
 (e) The mnxiinuin How or (piantity of water which may be 
 diverted from time to time at the place of diversion, and used 
 from time to time at the place of use. respectively, imder the 
 license: and, if storage is involved, the maximum capacity of 
 storage permissible from time to time at each storage site: 
 
 (/) The sum per horse-power-year, measured on the turbine 
 shaft, to be charged as an annual rcMital fee during the initial 
 period of the license, namely, from th<' date thereof up to 
 twenty-five years after the date of the agreement ; ami the basis 
 upon which the am<»unt of pr»wev to be charged for sliall be 
 determined : 
 
 {(f) A brief' tle-eripliiMi of the iiiidertakiiig in resjK-ct of 
 which the license is is.sued, iiiclinliiig the u-e whieli may be 
 made of the power, whether the power may i)e sold or delivered 
 to or used by other than the aitplicant. and if so the territory 
 within which such sale, delivery or tran-fer of the right of use 
 may be exercised : 
 
 {//) Any otiier special terms and conditions which, subject 
 always to these n'gulations. may be imposed by the Minister. 
 
 Contents of 44 'pi^. h.ase shall set out amongst othci- tliiii"s and in so 
 
 lease. . , • , , , * 
 
 tar as applicable to the case — 
 
 ((/ ) The name aiid address of the lessee: 
 
 (b) A reference to the agreement and a statement whether 
 or not the terms thereo^f have been fully complied with; also 
 a reference to the water-license issued or to be issued with which 
 license the lease is connected, in which license the position, 
 extent, and nature of the works authorized for diverting, con- 
 veying, storing or using the water or the power developed 
 therefrom, and all things relating particularly to the diversion. 
 
45 
 
 storage, traiismissiou and use of the said water and water- 
 power are fully set forth : 
 
 (c) An accurate description of the Dominion lands which 
 may be entered upon, used or occupied for the maintenance 
 an^d opertaion of the said works, setting out separately lands 
 in any of the following classes : — ■ 
 
 (1) Dominion lands not covered by water required for 
 main diverting works, power-houses, etc. : 
 
 (2) Dominion lands covered by water required for the 
 said purposes : 
 
 (3) Dominion lands required only to be flooded in 
 connection with the storage or pondage of water : 
 
 (4) Dominion lands required only for rights of way 
 for. water conduits, transmission lines, etc.: 
 
 (5) Dominion lands, if any.j required for substations, 
 distributing stations, terminal stritions, etc. 
 
 (d) The term of the lease : 
 
 (e) The sum to be paid as an 'annual rental during the 
 initial perio;d of the lease, namely, from the date thereof, up 
 lo twenty-five jears from and after the date of the agreement 
 for the l€*ase ; a;id the times when such annual rental is payable : 
 
 (/) Any other special terms or conditions which, subject 
 always to these regulations, may l>e imposed by the Minister. 
 
 TER.\[ OF LICEXSE. 
 
 45. Every license shall be limited to such term, not ex- Term of 
 cteding fifty-iive years from and after the date of the original ^'^ense. 
 agreement for such license, as the Minister mav determine. 
 
 KEXEWAL OK TERMIXATIOX. 
 
 46. Xot less than four nor more than six years prior to Licensee treated 
 the termination of any license, the licensee may apply in ^^J^^^nt for 
 writing: for an extension of riohts held under such license and further term. 
 applications may also be filed with the Minister by any per- 
 sons looking to the future utilization of the site to which the 
 license applies. Any application for this purpose including 
 the application for renewal of the licensee shall be in such 
 form and contain such statements and information as will 
 satisfy the laws and regulations then in force, and such appli- 
 cation for renewal bv the licensee shall in everv case be accom- 
 
46 
 
 Renewal must be 
 in public interest. 
 
 l)anie(l l)_v a suitable iiiider taking on the part of the licensee 
 that he will comply with all the said laws and regulations. 
 Fpon the filing of such application for renewal and under- 
 taking the licensee will he given preference over other a]ipli- 
 cants, for a license to use and occupy the waters and lands in 
 (juestion during a further term. 
 
 Provi<le(l always that the licensee has complied with all the 
 requirements of his license and of the regulations from time to 
 time in force to the satisfaction of the Minister and that his 
 •proposed use and development of the site is at least as desir- 
 able, taking into .consideration the pui)lic interest, as that of 
 any other pending applicant. 
 
 l\<<w Kiver. H<>ri*f8h<>e Fallc Calgary I'owtT CoiiipanyV I)<'\cl(i|>iii<'iit. 
 
 Minister to 
 •lecide on future 
 disposition. 
 
 47. At'icr iljc termination of ilic tun ycnr pn-idd men- 
 tioned in tlie last jtreeeding section, and after such jtuhlic 
 hearing as the .Minister may tjeem necessary, hut subject 
 idways to the hiws and regulations then in force the .Minister 
 sliall determine, in view of all a))plications then pending for 
 the future occupation and use of the waters and lands in ques- 
 tion (in<duding the a])plication f(ir renewal, if any, of the 
 licensee), what future disi»ositi(»n shall l)e made of the said 
 waters and lands. 
 
 Termination of 
 licensee's tern.. 
 
 48. ( 1 ) Jf some disposition of the said waters and lands 
 ttther than a license to the licensee for a further term is decided 
 upon, the Minister shall give the licensee not less than three 
 years' notice in writing that from and after the e.xpiry of his 
 
47 
 
 license or from and after such subsequent date as is fixed hj 
 the Minister, all further rights of the licensee with respect to 
 the occupancy and use of the said waters and lands shall 
 determine; and thereupon from and after such expiry, or from 
 find after such subsequent date, as the case may be, all the said 
 rights shall absolutely cease and determine without further 
 proceeding. 
 
 (2) In such case, if after investigation and report by the crown may take 
 Superintendent of Water Power, the existing works of the Dominion lands. 
 licensee located upon Dominion lands or any part thereof can, 
 
 in the opinion of the Minister, be utilized to advantage in the 
 future disposition which is to be made of the said waters and 
 lands, the Minister shall at the time of giving the said notice 
 for terminating the possession of the licensee also notify the 
 licensee in writing that from and after the date fixed for ter- 
 njinating the said possession, the said works (naming them) 
 will be taken over by the Crown ; and upon the licensee being 
 so notified he shall not thereafter remove any of the said works 
 but shall preserve the same in substantially as good condition 
 as they then are until taken over by the Crown; provided 
 always that in such case compensation shall be paid to the 
 licensee as hereinafter provided. 
 
 (3) If the Minister and the licensee cannot agree upon the Exichequer 
 amount of the compensation to be paid for the said works co°mpensati*on*^^ 
 located upon Dominion lands within ninety days after the date ^°^ works on 
 
 n T J- j^i , I ■ r si • -I 1 -,1 Dominion lands. 
 
 fixed for the taking over oi the said works either party may 
 refer the matter to the Exchequer Court of Canada for deter- 
 mination. 
 
 (4) In arriving at the compensation to be paid to the licensee Rule of 
 
 for the said works upon Dominion lands so taken over the forwwks'on 
 Court shall consider the last appraisal, if any, made by ofiicers Dominion lands, 
 of the Department of the Interior under section 80 hereof, 
 and shall consider also the original cost of construction and 
 any actual depreciation from their original condition whether 
 physical or functional or whether due to ordinary or extra- 
 ordinary causes and any other factors which the Court deems 
 necessary to enable it to arrive at a fair estimate of present 
 value for the purposes in view. 
 
 Provided always that only actual and tangible works shall be 
 compensated for under the provisions of this section, and 
 then only to the extent to which such works can be shown to be 
 valuable and serviceable under modern and approved standards 
 from both economic and engineering points of view in the 
 future development and use of the waters in question ; and in 
 no case shall the rights and privileges acquired by the licensee 
 
48 
 
 Useless works on 
 Dominion lands 
 not taken over, 
 but licensee 
 may remove. 
 
 RiKhts of Crown 
 In patented 
 lands, and work.x, 
 etc.. not attachefl 
 to Dominion 
 lands. 
 
 in respect of his license or umlertaking, nor the profit*; or 
 dividends being or likely to be derived therefrom be included. 
 
 (5) If, after investigation and report by the Superintendent 
 of Water Power, in the opinion of the Minister the existing 
 works of the licensee located upon Dominion lands, or any 
 part thereof, can not be utilized to advantage in the future 
 disposition which is to be made of the waters and lands in 
 (juestion the Minister shall give the licensee notice in writing 
 not less than one year liefore the date for terminating the 
 possession (if the licen.«;ee that the ssiiid (works, naming them, 
 cannot be utilized to advantage by the Crown in the future 
 disposition which is to be made of the said waters and lands, 
 and the licensee Khali not be entitled to any compensation 
 whatever in respect of the said works; but in such case flie 
 Minister shall also in the said notice specify the works, naming 
 them, whicli in fhe opinion of the Minister can \>e removed 
 without damage to the said hmds. and the licensee may thtu-e- 
 upon at any time before such expiry <tr before such siil>sequent 
 date, as the case may be. remove the sai<l works accordingly. 
 
 ( »i ) Tlic rights of His Majesty with respect to the posses- 
 sion, ocfupatioii and use of any lands, works, structures, equip- 
 ment and properties otlier tluin Dominion lands and works 
 located tliereon. tlien owned or liebl by the licensee and used 
 or occupied in connection with the undertaking to which 'his 
 agreement relat-es, and the compensation to be paid for any 
 such ^)ther hmds, works, structures. e<|uipment and properties 
 nhall in the case of the termination <*{ a license under this 
 .se<'tion be as set out in section 8r» hereof. 
 
 KK.N'IAI.S inuki; i.hk.nsk .vm> i.k.vsk. 
 
 Annual rental 
 flxiMl hv Mlnipiter. 
 
 Clear of taxes, 
 etc. 
 
 .May he fixed 
 sum or rate. 
 
 49. ( 1 ) An annual r(>ntal shall Ik- payable uniler evei-y 
 li<'ense in resprs-l of the water u-eil or authorized to be use<l, 
 and under every lea.se in respect of the lands leased. Tlu' 
 amoimt of .such rental shall be tixe<l by the Minister and 
 j>ayable to him. 
 
 ('2) Such i-eiital shall be eloar <it' nil taxes, rates, assess- 
 ments aiul charges wbat.socver which shall, during the con- 
 tinuance of such license or lease be <'harged upon or payable 
 in respect of the isaid lands, or waters. 
 
 ( .") ) The rental payable in res])eet of the water-license may be 
 .•ither a tixeil sum j)ayable annually ur a variable sum deter- 
 mined by applying a given rate per horse-power to the total 
 amount of energy actually tlevcinpcl or utilized, or to the total 
 
49 
 
 capable of being developed or utilized by a reasonable and 
 diligent use of the privileges granted, as the Minister may 
 detei-onine. 
 
 (4) The first payment on rental account under any license '^^^ payable. 
 or lease shall be payable on or before the issuance of such 
 
 license or lease and shall be prorated to cover the then unex- 
 pired portion of the calendar year ; subsequent payments shall 
 be payable on the first day of January of each year in advance. 
 
 (5) The rental established in respect of any license or lease constant for 
 and specified therein shall remain effective (except by mutual ^^^^^^ periods, 
 agreement of the Minister and the licensee or lessee, as the 
 
 oase may be) until twenty-five years from and after the date 
 of the agreement for such license or lease. The annual rental 
 to be effective from and after this time shall be subject to 
 revision from time to time, but any such revision shall remain 
 in force for a period of not les«; than ten years before being 
 again revised. 
 
 (6) If the Minister proposes to increase the said rental at Notice of 
 any of the times above specified in any particular case, he licensee. 
 shall give the licensee or lessee, as the case may be, notice of 
 
 such proposed increase not less than one year before the said 
 increase is to become effective. 
 
 (7) Such licensee or lessee mav within sixtv davs after such Licensee may 
 
 ^ ' • , _ ' • , enter objection. 
 
 notice has been given file an objection to the said proposed 
 increase, stating the grounds of his objection. 
 
 (8) The Minister shall consider any objection so filed and ^Si,?7nq"X^. 
 if in his opinion the alleged grounds of objection are not 
 
 j>rinia facie sufiicient to warrant an inquiry he shall so decide, 
 and shall notify such licensee or lessee of such decision ; but if 
 he considers the alleged grounds of objection sufiicient to war- 
 rant an inquiry he shall set a time and place for a hearing 
 before the Superintendent of Water Power or such other officers 
 or persons as he may designate, and shall give such licensee or 
 lessee not less than sixty days notice of such hearing. 
 
 (9) The Superintendent of Water Power or such other Hearing before 
 
 ^ ■' ^ . 1 1 ■ • Superintendent of 
 
 officers or persons as are appointed to conduct such hearing water-Power. 
 may summon and examine witnesses upon oath or affirmat^'on, 
 may adjourn the hearing to obtain further evidence and shall 
 report their recommendations to the Minister who may there- 
 upon take action as he deems just. 
 
 50. (1) If a licensee or lessee shall be in arrears for six cancellation for 
 moiiiths in respect of any rental or other sum or sums payable by J°e"s"^^^™^"* ''^ 
 him under these regulations, provided always that he shall have 
 6373-4 
 
50 
 
 Re works on 
 Dominion lands. 
 
 Rights of Crown 
 In patented lands 
 and work-s. etc., 
 not attached to 
 Dominion lands. 
 
 been given notice of the arrearage not less than sixty days he- 
 fore the jjrtssing of the order hereinafter mentioned, the Gov- 
 ernor in Council may, hy an order in that behalf, cancel his 
 license or lease, as the case may be, and thereujwn such license 
 or lease shall become void and of no effect and the rights there- 
 by granted shall absolutely cease and determine without fur- 
 ther proceeding, and such of the licensee's or lessee's works as 
 are located on Dominion lands shall alisolutely vest in and be- 
 come the property of the crown without re-entry or any other 
 act or any suit or legal proceeding being brought or taken. 
 
 Provided always that His Majesty shall be entitled to 
 recover from such licensee or lessee the rent then accrued or 
 accruing, and that any rights of action of His Majesty against 
 such licensee or lessee in respect of any antecedent breach of 
 any term or condition of such license »»r lease shall not be 
 prejudiced by such cancellation. 
 
 (2) The Governor iu C^ouncil may in such case, if he deems 
 such licensee or lessee entitled U> any com'jx^nsation for the 
 works so taken over and located on Dominion lands fix the 
 said compensation. 
 
 (15) The rights of His Majesty with respect to the posses- 
 sion, occupation and use of any lands, works, structures, equi])- 
 ment and pntpertics other than Dominion binds and the works 
 htcated thereon, then owned or held by the licensee or lessee 
 and used or occupied in connection with the undertaking to 
 which such license or lease relates, and the compensation to be 
 })aid for any such other lands, works, structures, equipment 
 and properties shall in case of cancellation under this se<'tion 
 be as set out in section .s.'j hereof. 
 
 I^e:»5e to run 
 concurrently 
 with license. 
 
 I.KA.SK rnovisioNs. 
 
 51. Kvery lease >\\i\\\ be for tlie same term of years as the 
 license in conjunction with \vhi<-h it is issue<l and shall run 
 concurrently therewirh and sliall lerniinate and be renewable 
 in like manner and >hall be sul)ject to all the terms and condi- 
 tions of the license so far as the said terms and conditions are 
 applicable thereto; provided always, tihat in no case shall suc<h 
 lease authorize entry u}>on or use or »K'cupation of any Dominion 
 lands for a period exceeding fifty-five years from and ntter the 
 date of the oriirinal agreement for such lease. 
 
 L<e;>pe to depend 
 upiin license. 
 
 52, The ea-ements, rights and privileges acquired under 
 such lease shall be subject always to compliance by the lessee 
 with all the terms and conditions of his license and if. under the 
 provisions of such license or of these regulatif»ns. or by other 
 
51 
 
 lawful means such license is terminated or cancelled or 
 becomes null and void, then such lease shall, ipso facto, and 
 upon like conditions, become void and of no effect, and all the 
 rig-hts granted thereunder shall cease and determine. 
 
 53. (1) Everv such lease shall be valid or effective to Lf^se voided 
 
 _ ^ -' « _ _ , when lands no 
 
 'authorize entry upon or use or occupation of any Dominion longer needed, 
 lands only in such manner and to such extent and for such 
 length of time as may be necessary for the purpose of construct- 
 ing, maintaining and operating the works authorized to be 
 constructed, maintained and operated under the liceuise in 
 respect of wiiich such lease is granted land no further, 
 
 (2) If, because of a chanoe in the location of the said Lessee to 
 
 , <• 1 • 1 1 c receive notice, 
 
 works, or because of their abandonment, or for any other 
 
 reason continued or further entry upon or use or occupation 
 
 of such lands in whole or in part for the said purpose becomes, 
 
 in the opinion of the Minister unneceseary, he shall give the 
 
 lessee written notice of the contemplated withdrawal of such 
 
 lands from the operation of the lease and his reasons therefor. 
 
 (3) The lessee mav within sixtv davs after the giving of ^^y 5^® 
 
 • _ • _ . ." ' . . objections. 
 
 such notice file a written obje<"tion to such withdrawal of 
 lands. 
 
 (4) The Minister may, after the comsideration of such or<;j^e'r'^fl^,ai 
 objection, or after the expiry of the time allotted for an 
 objection if no objection is filed, make an order withdrawing 
 
 sudh lands from the operation of the lease, which order shall 
 be final. 
 
 Removal of 
 works after 
 
 (5) If any lease is voided iii whole or in part under the 
 provisions of this section, the lessee shall not be privileged voidance. 
 to remove any works, buildings or other improvements con- 
 structed by him on the said lands unless the Minister's consent 
 in writing to such removal is first obtained. The Minister 
 may, however, if he deems it advisable, make provision for 
 arriving at the compensation, if any, which is to be paid to 
 the lessee for such of the said works, buildings or other improve- 
 ments as are taken over by His Majesty and as are considered 
 serviceable in the future disposition which is to be made of 
 the said lands. 
 
 LIMITED KIGHTS I]Sr CERTAIN LANDS. 
 
 54, (1) Any Dominion lands required onlv for the purpose Lands for 
 
 . n r *i 1 u • ^- "^ -.v. . flooding purposes. 
 
 of Hooding the same, wnerher in connection with a storage 
 reservoir or for regulating the flow of a stream or otherwise 
 6373— 4i 
 
52 
 
 Not to be 
 fenced. 
 
 Such lease not 
 exclusive. 
 
 shall Ijc set out in the lea^se separately from lands required for 
 other purposes and no such leaise sihall be valid or effective t/> 
 grant to the lessee any further use of sudi lands than the right 
 of flooding' the same in such manner and to such extent and 
 at such times as are required to carry out the purposes of the 
 lease, and the !^[ini8ter shall he the sole judge concerning the 
 manner in which and the extent to \\''hich any flooding opera- 
 tions shall he from time to time carried on. 
 
 (2) Sucli lands shall not be fenced or otherwise enclosed 
 except the ^linister's consent in writing be first obtained. 
 
 (3) Every iiraiit. by any such lease, of a right to flood ;iny 
 Dominion lands shall Ik- subject to the right of His ^fajesty 
 to grant liberty or privilege to other ]iersons for any puqiose 
 or in any manner to enter upon, use or occuj)y the said lands, 
 jirovided always that the rights <»f the lessee shall not be. in the 
 ((pinion oi' the Minister, {(rcjudicially interfered with by any 
 
 SUcll UIMUt. 
 
 Beds or chores 
 not to be 
 included. 
 
 55. Xn riiiiii.-^ ill any lands tnriiiing the bcd.s or shores of 
 any river, lake or other natural body of water shall be granted 
 by any .-^neli lease except as may be re<piire(| for the actual site 
 of Works. • 
 
 Rights of way 
 for transmission 
 lines, conduits, 
 «tc. 
 
 Such lease not 
 excluslvf. 
 
 56. (I) Any Dominion lands re<|nired only for rights of 
 way for transmi.ssi<»n lines, water conduit.s, etc., shall be set 
 out in the lease separately from lands ivMpiired tor other i)ur- 
 poses. and no such lease shall be valid or effective to grant to 
 the lessee any further use of sucli lands than that which may 
 be re(piired from time to time for the piirpo.ses of construct- 
 ing, maintaining and operating the said transmission lines or 
 water conduits and the ^linister shall be the sole judge of the 
 extent of the said reijuirements. 
 
 {'2) Every grant, by any such lease, of a right of way for 
 transmission lines, water conduits, etc.. shall be subject to the 
 right of His Majesty to grant liberty or privilege to other per- 
 sons for any purpose or in any manner t(» enter upon, use or 
 occupy the saiil lands, provided always that the rights of the 
 lessee shall not l»e. in the opinion of the Minister, jtrejiuli- 
 ciallv iuterfereij with I>v anv such urant. 
 
 CARE OF L.VNDS. 
 
 General clause. 
 
 57. ( 1 ) rile lessee- or contractor shall at all times main- 
 tain the lands, works, and proju'rly ludd or used by him in 
 respect of his lease in a manner satisfactory to the Minister; 
 
53 
 
 and shall do all in his power to protect the said lauds and the 
 interest of the Crown therein against injury by any one 
 engaged on or about his works, and, against damage by fire. 
 
 (2) It shall be laAvful for the Minister or any person there- 
 unto authorized by him at all reasonable times during tlie c-on- 
 tinuanee of these presents, to enter upon the said lands to 
 examine the condition thereof. 
 
 58. (1) Every lessee and contractor shall protect all Gov care of 
 ernment and other telephone, telegraph and power transmis- ij^es^'"'^'"" 
 sion lines at crossings of and at all places of proximity to the 
 transmission line of such lessee or contractor in a workman- 
 like manner according to the usual standards of safety lor 
 ctmstruction, operation and maintenance in such cases, and to 
 maintain transmission lines in such manner as not to menace 
 
 life or i^roperty. 
 
 (2) Every lessee and contractor shall clear and keep clear 
 the Dominion lands along the transmission line for such width 
 and in such manner as the Minister may direct. 
 
 59. Every lessee and contractor s:hall, to the satisfaction of Clearing lands- 
 tlie ]\[inister, dispose of all brush, refuse or unused timber on ' ' ' 
 Dominion lands resulting from the construction and main- 
 tenance of the works, and shall keep the lands covered by his 
 
 lease or agreement at all times clear of unnecessary comhus- 
 tible material. 
 
 60. Everv lessee and contractor shall do evervthing reaison- suppressing 
 
 " . . .. o fires. 
 
 iible within his power, both independently and on request of 
 the Minister to prevent and suppress fires on or near the lands 
 to be occupied under his lease or agreement. 
 
 61. The lessee or contractor shall not erect any buildings Buildings to be 
 or structures whatever whether of a permanent or temporary approved. 
 character upon any Dominion lands without first submitting 
 
 plans thereof to the jVIinister and securing his approval for 
 such building or structure and the site thereof. 
 
 62. Xo roads, trails, telephone lines, buildings or other Roads, trails, etc. 
 improvements the property of the Crown in the right of the 
 
 Dominion shall be removed, altered or in lany way affected by 
 any lessee or contractor in the construction of his works without 
 the Minister's consent in writing having been fii'st obtained. 
 Such lessee or contractor shall in every case replace or recon- 
 struct such improvements and shall build and maintain neces- 
 sary and suitable crossings for all such roads and trails existing 
 or that may be established intersecting anv Wiater conduits of 
 
54 
 
 «ueh losisce or contractor to tlie ^linister's sat i>f action. The 
 ^finister may, if ho deems it necessary, require the lessee or 
 contractor to furnish a bond for the satisfactory carrying out 
 of the provisions of this section. Every lease or agreement 
 shall he subject to the right of the Minister to construct, or 
 authorize the construction of roads, trails or telephone lines on 
 or across the leasehold. 
 
 FOKEST AM> I'AUKS PltOVISK )NS. 
 
 Re cutting 
 
 merchantable 
 
 timber. 
 
 Forest reserves 
 provipion. 
 
 Parks 
 
 provision. 
 
 Timber in forest 
 reserves or parks. 
 
 63. Kvcry lessee or contractor shall pay such sums by way 
 (if siumpage and royalty for any merchantable timber cut or 
 removed from any forest reserve as may be fi.xed by the regula- 
 tions governing the administration of forest reserve^?, and for 
 any such timber cut or removed from any Dominion lands 
 other than f(>rest reserves, as may Ix^ ti.xod by the regulations 
 governing the granting of yearly licenses and pennits to cut 
 timbrr. 
 
 64. l'!v«TV agreement. lease. lieen>e. permit or other grant 
 wliich includes or affects any lands situated within any 
 Dominion forest reserve Cj^tablished in virtue of the Forest 
 Reserves and Park> .\ct shall 1k' s\d)ject to such conditions as 
 tbe ^linister may impose with respect to any matters atlVrting 
 the care, upkeep and management of the said reserve; and the 
 contractor, lessee, licensee, permittee, or other grantee shall care- 
 fully obsen'e and comply with the provisions of any regulati(ms 
 est.ablisheil in virtue <»f the said Act and api»licable to tlie said 
 reserve. an«l .shall aUo (v»mply with all instructions of the 
 l>i rector of F(»restrv in matters pertaining t<> the care and 
 |ireservation of the said n'serve. 
 
 65. Kvery agreeiiieiit. lea^e. license. jM-rmit or other grant 
 which includ(»> or atiects any land- situatcKl within any area 
 set a]>art and designated as a Dominion j)ark in virtue of the 
 Forest Reserves and Parks A<-t -hall be subject to such condi- 
 tions as the Minister jnay impose with respect to any mattei*s 
 affecting the care, upkeep and management of the said park; 
 and the coutractor, lessee, licensee, jK^rmititee or other grantee 
 shall carefully observe and comply with the provision.s of 
 anv regulations established in virtue of the said Act and applic- 
 able to the said park, and shall also comply with all instruc- 
 tions of the ('ommissioner of Dominion Parks in matters 
 ])ertaininu' to the care and preservation of the said park. 
 
 66. Xo trees on any Dominion torest reserve or j>ark shall 
 be cut by any lessee or contractor without the permission of the 
 
55 
 
 Director of Forestry or Commissioner of Dominion Parks, as 
 the case may be, and when any trees are so cut the debris of 
 such cutting shall be piled and burned or otherwise disposed of 
 as instructed l>y the officer in charge of the reserve or park. 
 ^o burning shall be done except under permit from such 
 officer. 
 
 WORKS — :maiktenance a>'d operation. 
 
 67. The licensee or lessee shall at all times maintain and Maintenance and 
 
 1 , , , , . /'IT 1 1 operation to 
 
 operate the works held m respect ol the license, lease or under- satisfaction of 
 taking to the satisfaction of the :Minister, and the Minister shall ^^^ Minister 
 have power at any time to have the said works inspected by 
 such officer or engineer as he may appoint and the licensee or 
 lessee shall pay all the expenses connected with such inspection, 
 including any fee or remuneration paid to the inspecting officer 
 or engineer when so required by the ^Minister. 
 
 68. For the purpose of aseertainine; the quantity of water .^^®^ access for 
 
 * insDcctinsT 
 
 stored, diverted or used, or capable of being stored, diverted purposes, 
 or used, under any license, or the amount of power developec! 
 or capable of being developed from such water, or of ascer- 
 taining the condition of any works held in respect of such 
 license or the lease or undertaking connected therewith, or for 
 the purpose of determining whether any of the conditions of 
 such license, lease or undertaking have been satisfactorily 
 observed and fulfilled, the Minister or any officer, engineer or 
 other person ajipointed by him for such purpose, shall have 
 free access to all parts of the said works and to all books, plans 
 or records having reference to such license, lease or under- 
 taking and may make measurements, take o'bservations, and do 
 such other things as may be considered necessary or expedient 
 for any such purpose ; and the findings of the Minister with 
 respect to the quantity of water stored, diverted or used or 
 capable of being stored, diverted or used or the amount of 
 power developed or capable of l)eing developed shall be con- 
 clusive and binding upon the licensee or lessee. 
 
 69. A licensee or lessee, before making any change in the Authorization 
 existing works or in their location which would be a material change in works 
 deviation from the plans of the said works, as approved by f^kin ""'^^'^' 
 the Minister and referred to in the license or lease or from the 
 
 existing works as constructed, or before making any change 
 in the purpose for which the said works were authorized to be 
 constructed, or in the character of the undertaking in respect 
 (.)i which such license or lease has been issued shall submit 
 plans and statements of such proposed change to the Minister 
 and secure his approval thereof. 
 
56 
 
 Measuring 
 devices must be 
 installeil if 
 requested. 
 
 70. On the request of the Minister any licensee, lessee or 
 contractor shall install and maintain in good operating con- 
 dition at such places and in such manner as shall be approved 
 hy the Minister accurate meters, measuring weirs, gauges or 
 other devices approved by the Minister and adequate for the 
 determination of the amount of water used or power developed 
 in the operation of the works and of the flow of the stream or 
 streams from which the water is diverted or is to be diverted, 
 and of tlie amounts of water held in or drawn from storage: 
 to kee]) accurate and suthcicnt records of the foregoing deter- 
 mination to the satisfaction of the ^linister; and to make such 
 returns from time to time of the foregoing matters, supported 
 Iv statutory declarations, as the Minister may require. 
 
 rOWKK Ol'IlM r CLAl'SKS. 
 
 Power to be 
 developed up to 
 c-apaclty when 
 demand therefor. 
 
 71. The licensee or lessee shall develop .^uch power, as in 
 the opinion of the Minister there shall be a public demand 
 for, up to tlie full extent possible from the amount of water 
 t;rante(l under his license. 
 
 ("am-ellatioii if 
 lefupal to 
 <levelop full 
 .amount of power 
 
 Kr securing 
 enlarged or 
 romprehenslve 
 power develop- 
 ment. 
 
 72. rpon a report being matle by the .Minister to the Gov- 
 ernor in Council that a licensee or lessee has not developed 
 thf amount of power for which there is a public demand and 
 which could be developecl from the amount of water granted 
 uiuler his license or c(Hitrolled by him, the ^linister may 
 order to be developed and rendered available for pub- 
 lic use tlie additional amount of power for which there is, in 
 the opinion of the ..Minister, a public demand, up to the full 
 extent possible from the amount of water granted under such 
 license or controlled by such licensee or lessee and within a 
 j>eriod to be fixed by the ^linister, which period shall not be 
 less than two years after such licensee or lessee or the person 
 in charge of the existing works .shall have been notified of 
 such order; and in default of compliance with such order the 
 provisions respecting cancellation, the effect thereof and the 
 mode of arriving at the compensation, if any, to bo paid to the 
 licensee or lessee set out in sections 84 and 8o hereof shall 
 apply. 
 
 73. rpon a report U-ing made by the Superintendent of 
 Water Power that it would appear desirable to investigate 
 the possibility of establishing an enlarged or more comprehen- 
 sive development of the water-power in any stream at or near 
 the site occupied by any licensee, lessee or contractor than that 
 which is being actually attained by such licensee, lessee or 
 contractor, the Minister may direct the Superintendent of 
 
57 ... 
 
 Water Power to iuvostigate and hold a hearing ou the matter, 
 of which hearing such licensee, lessee or contractor and other 
 parties who, in the opinion of the Superintendent of Water 
 Power, appear interested shall have been given not less than 
 sixty days' notice and an opportunity to be heard. After such 
 hearing, and a report thereon by the Superintendent of Water 
 Power, the Minister, if he considers such enlarged or more 
 comprehensive development in the public interest, may make a 
 recommendation to that effect to the Governor in Coimcil, and 
 the Governor in Council may in such case, by an order passed 
 in that behalf, authorize the Minister to offer such licensee, 
 lessee or contractor the privilege of entering into a new agree- 
 ment for undertaking such enlarged or more comprehensive 
 development and for receiving a license to carry on the same, 
 subject always to the regulations fhen in force, and if such 
 licensee, lessee or contractor fails within six months thereafter 
 to enter into such new agreement and in good faith to begin and 
 carry on to completion such new development, then, in such 
 case the Governor in Council may order the existing license, 
 lease or agreement terminated, and thereupon the provisions 
 respecting the taking over of the properties and the compensa- 
 tion to be i)aid to the licensee, set out in section 48 hereof shall 
 apply. 
 
 Provided that in fixing the compensation which shall be Compensation 
 
 • 1 IT 1 ^ ^ i^ i- ii 1 1 1 w:th bonus. 
 
 paid to the licensee, lessee or contractor lor the lands, works 
 or properties taken over by the Crown under this section a 
 bonus may be added to the value, determined under the said 
 section 48, of such lands, works or properties, the said bonus 
 not to exceed three-fourths of one per cent of such value for 
 each full year of the unexpired term of the license or lease. 
 
 74. Where more than one existing plant or site is affected w^here enlarged 
 by the enlarged or more comprehensive development referred desirabiTTnd 
 to in the last preceding section, the Governor in Council before several licensees 
 
 affected 
 
 ordering the licenses, leases or agreements applying to the said 
 plants or sites terminated, may authorize the Minister to 
 receive proposals from all the licensees, lessees or contractors 
 affected for the luidertaking of the proposed new development, 
 and to offer to each in turn (selecting first that one who offers 
 to pay the highest rental for the use of the waters and site of 
 the proposed development, or whose offer from other considera- 
 tions appears to the Minister most in the public interest) an 
 agreement for the construction of the new proposed works and 
 for a license to operate the same siubject always to the regula- 
 tions then in force, and if each of the said licensees', lessees or 
 contractors in turn within the times hereinbefore specified 
 
58 
 
 fails to accept such olfer and to l)e<iiii and to carry on to c<,^m- 
 pletion such proposed new works, then in such ease the Gov- 
 ernor in Council may order all the said licenses, leases or 
 agreements terminated in the same manner and having the same 
 effect and providing for compensation to the same extent as 
 set out in the last preceding section. 
 
 POWER SALE CLAUSES. 
 
 Sale of surplus 
 power. 
 
 Sale to 
 
 distributing 
 
 company. 
 
 Sale of power 
 to the Crown. 
 
 Uncompleted 
 contracts. 
 
 75. If a licensee, lessee or contractor desires to develop, 
 sell, use or dispose of any greater quantity of power than 
 authorized by his license, lease or agreement or desires to use 
 or dispose of any power in connection with his undertaking 
 in a manner or for a purpose other than as provided in such 
 license, lease or agreement he must first obtain from the 
 Minister a license authorizing such additional development, 
 sale, use or disposiil, or authorizing such use or disposal in 
 such other manner or for such other purpose, and fhe said 
 license shall in every case be subject to the provisions of the 
 water-power regulations then in force, including provisions 
 relating to the regulation and control of service and of charges 
 to consumers and of the issuance of stock and lx)ndH by the 
 contractor, and als4» to such conditions as the ^[inistcM- may 
 impose at the time of issuing such license. 
 
 76. Except upon the written i-onscnt of the .Minister and 
 subject to such conditions as the Minister may impose no sale 
 or delivery of power shall be made to a distributing coni|)anv, 
 except in case of an emergency, and then only for a period not 
 exceeding thirty days. an<l before giving any such consent the 
 ^linister shall secure from such comijany a satisfactory under- 
 taking to comply with the provisions and princii)les of these 
 regulations in so far as a])plicabl(' to the distribution of power 
 l>v such company. 
 
 77. Every licensee or lessee whose undertaking involves 
 the sale, barter or exchange of p(»wer developed at the site 
 held under his license or lease shall sell power to the Crown 
 when so requested by the ^linister at as low a price as is given 
 to any other consumer for a like use at the same time and 
 under similar conditions; provi(le«l always that such request is 
 within the capacity of the said site and that the rights of any 
 other c<»nsumer then holding a binding contract for the 
 <kliverv of jwwer are n<»t thereby prejudiced, 
 
 78. A licensee whose undertaking embraces the sale of 
 energy or power may, with the approval of the ^linister. 
 
59 
 
 which approval may be given when the public interest so 
 requires, enter into contracts for the sale and delivery of such 
 energy or power for periods extending beyond the term of the 
 license, hut for not more than ten years thereafter, and in such 
 case, the license shall not be terminated at the end of the 
 term as hereinbefore set out unless the new licensee or some 
 competent authority acting for the Government of Canada has 
 assumed to fulfil all such contracts. 
 
 STREAM EEGULATIOX AXD CONTROL CLAUSES. 
 
 79. (1) Every license, lease or agreement shall be deemed Government 
 to have been executed on the express condition that the licensee, ^"e'am flowage 
 lessee or contractor shall divert and use the waters authorized and water level. 
 to be diverted and used by him in such manner as not to inter- 
 fere, in the opinion of the Minister, with the maximum advan- 
 tageous development of the power resources of the river or 
 stream upon which his works are located, and that he shall 
 conform to and comply witih any order in respect of the control 
 or regulation of the flow of the waters of such river or stream 
 as may be made by the Minister or by any person authorized 
 by the Minister in that behalf and that he will at no time 
 raise the level of the waters of such river or stream or of any 
 storage reservoir operated by him or permit such level to be 
 raised higher than the elevation which shall be fixed from 
 time to time by the Minister or by a person authorized by 
 the Minister in that behalf. 
 
 (2) Every license, lease or agreement shall be deemed to Government 
 
 , , T 1 /■ 1 T • 1 • reg-ulation or 
 
 have been executed on the further express condition that m storage works. 
 
 the event of any regulation-works or project being undertaken 
 
 along such river or stream by the Government of Canada or 
 
 by any commission, company or person upon the authority of 
 
 the said Government, for the regulation or control of the flowage 
 
 of the said river or stream, or in the event of any works or 
 
 project being so undertaken for the storage of water in order 
 
 to augment the flow of water capable of being utilized by such 
 
 licensee, lessee or contractor, then, in either such case, such 
 
 licensee, lessee or contractor shall, within six months after 
 
 receiving notice in writing from the Minister, or within the 
 
 said six months and annually thereafter, as the case may be, 
 
 pay the Minister such share of the cost of such works or 
 
 project or, in the discretion of the Minister, such share of the 
 
 annual interest, upkeep, maintenance and operation of such 
 
 works or project, as the Minister may consider properly 
 
 chargeable to tihe power development of such licensee, lessee 
 
 or contractor, and also such rental for the additional flowaffe 
 
Af)praisal every 
 five years. 
 
 Licensee to 
 keep account. 
 
 60 
 
 of water created by such storage works or project and used 
 by such licensee, lessee or contractor as the Minister may 
 determine. 
 
 APPKAI.SAL AM) ACCOUNTS. 
 
 80. (1) As a basis for any appraisal which may be neces- 
 sary of all works, lands and properties held by the licensee 
 or lessee in respect of his undertaking the Minister or any 
 officer or person appointed by him for that purpose shall, in 
 every case which the ^linister cc)n.>iiders of sufficient importance, 
 not less than once every five years, appraise the value of the 
 said works, lands and properties, taking note of any enlarge- 
 ment or other permanent impr<ivement which may have been 
 authorized and setting over against these items a fair estimate 
 of any loss in the value of the sai<l works, lands and properties 
 whether due to (^irdinarv or extraonlinary causes. 
 
 (2) Every licensee, lessee and contractor, unless excused 
 from compliance with this clause by the ^linister, shall keep 
 a true and detailed account of all expenditures made in respex't 
 of t'he >n'\A Works, lands and properties and shall hie annually 
 with the .Minister on (»r before the tir.st day of ^larch a return 
 for th(^ year ending tlie '{Ist day of l)ecend)er preceding, based 
 on the said account and being a sul>stantial siimmarv thereof, 
 such return t»» l>e atteste<l by the oath of the licensee or lessee 
 or in the case of a company by its president and secretary. 
 In >nfb annual return tlie folj.iwing in-ms shall In- separately 
 shown, namely : — 
 
 (d) Respecting the Works: 
 
 ( 1 ) Initial cost <>i' W"rk>. -bowing- ihr overhead 
 charges separately : 
 
 (2) Amount.-* expended for enlargements and p<'i-nian- 
 ent improvements authorized by the Minister: 
 
 ('\) I)epre<'iation in value froni any and all causes. 
 
 ( //) .V statement .setting out tlie lands and other asset*; not 
 inchnlcd in the above item, giving in each case both the cost 
 and the estimated present value, estinuiting lands acx'ording 
 to the principles enunciated in sul«ection (4) of section 85 
 hereof. 
 
 {(') Respecting ca])ital -tock : 
 
 (1) Amount authorized and the nuinlK-r of shares into 
 which it is divided : 
 
 (2) Number of shares subscribed for and all<»tted, and 
 number of shares forfeited to date: 
 
61 
 
 (3) Tiie amount of calls made on eacli share, and the 
 total amount received from shareholders in cash on account 
 of stock: 
 
 (4) Kumber of shares, if any issued as fully paid-up 
 shares as consideration for any service rendered or other- 
 wise, specifying in each case for what consideration such 
 shares were issued : 
 
 (5) Amounts of dividends declared and paid: 
 
 (d) Respecting bonds or debentures: 
 
 (1) Amount authorized: 
 
 (2) Amount sold (face value) and rate of interest: 
 
 (3) Amount realized from sales: 
 
 (4) Amount set aside as sinking fund to meet bonded 
 indebtedness : 
 
 (e) The indebtedness other than stock and bonds, speci- 
 fying nature and amounts, and the rate of interest such 
 indebtedness is bearing: 
 
 (/) A statement showing the total revenues in the conduct 
 of the undertaking, specifying amounts received from vari- 
 ous sources : 
 
 (g) Maintenance and operation expenditures, separating 
 labour and attendance at or about the works from adminis- 
 tration and other current expenditures : 
 
 (Ji) The names of otHcors and the classification of employees, 
 with salaries paid: 
 
 (i) The proposed extensions during ensuing years: 
 
 (;') If a company, such annual return shall have attached 
 thereto a copy of the by-laws of the company, showing all 
 amendments thereto during the year covered by the said 
 return : 
 
 (/t'jSueh other data as the ^Minister may require. 
 
 (3) The Minister's decision in regard to classifying items Form of 
 under one or another of the above heads, in regard to methods ^^^°""'^^- 
 of allowing for depreciation and in regard to the form in which 
 
 the said accounts shall be kept and shall be final. 
 
 (4) All books and records respecting the undertaking and Books to be open 
 works of any licensee, lessee or contractor shall be open at all 
 
 times to the inspection and examination of the Minister or 
 such person as the Minister may appoint for the purpose. 
 
62 
 
 KATES TO CONSUMERS AND CAI'ITAT.IZATIOX OF GRANTS. 
 
 Revision of 
 rates. 
 
 81. (1) The Governor iu Coiiiieil may by an Order in 
 Council appoint or designate the board or eommi^ssion which in 
 any particular territory may re£:ulate and control the service 
 and the charges for service to couusiuner^ and the stock and 
 bond issues of licensees, lessees or contractors engaged in the 
 sale, barter or exchange of power in the said' territory' and may 
 also appoint, a person to act with the said l>oard or commission 
 in an advisory capacity and to represent the interests of the 
 Department. 
 
 Licensee to 
 sojbmit schedules. 
 
 (2 ) When such a board or commission is so designated, every 
 such licensee, lessee or contractor shall immediately submit tin' 
 schedule of rates under which he is then operating to such 
 board or commission for adjustment and approval and shall 
 thereafter before putting into effect any new s«^]iedule of rates 
 and prices t<> Ik.* charged to consumers for jx)wer, submit the 
 same for adjustment and approval, and no rates o'" prices for 
 power shall thereafter 'be legal or enforceable until so submitted. 
 Such lM»ar(l or commission may. on the complaint of any 
 affected party or on its own initiative. re<iuire the submission 
 or the resubmission at any time of existing schedules of rates 
 and prices for adju<tiiu'nt and approval. 
 
 Regulation of 
 service and of 
 stock and bond 
 issues. 
 
 (3) Every licensee, lessee or (•<iiitra('t(»r shall abide by and 
 comply with such reasonable regulation and control of the 
 service rendered and to be rendered by him to consumers of 
 power furnished or transmitted in virtue of his license, lease or 
 agreement as may be prescribed from time to time by such 
 board or cf»mmission. and shall al.<o abide by and comply with 
 any orders of such Intard or commission with respect to stock 
 and Ixiiid i.-sues. 
 
 Minister to act 
 in certain cases. 
 
 (4) I'litil ^iM'b c<iiiiini-sion or liuard is designated to net in 
 any iiarlicular territory, tbe powers of regulation and control 
 set out ill tliis section niav be exercised liv the ^linister. 
 
 Grants not to be 
 capitalized. 
 
 82. Tile licensee or lessee, in estimating the value of tbe 
 lands, works, and properties held by him in connection with 
 his license or lease, whether for the purp<ise of fixing the tolls 
 or rates which may be charged for power or for the purpose of 
 appraising the property upon which he is entitled to earn or 
 receive any return, income, price, or compensation or for any 
 other purpose, shall in no case give any pecuniary value to or 
 claim any pecuniary value for the rights and privileges granted 
 bv his license or lease. 
 
63 
 
 TRANSFERS. 
 
 83. Before any assignment or transfer of any agreement, Transfers. 
 license or lease or of the rights and privileges thereby granted 
 or of the undertaking connected therewith becomes valid or 
 effective, the Minister's approval in writing must be secured, 
 and such assignment or transfer shall be subject to such terms 
 and conditions as the Minister may impose in such written 
 approval ; and no such approval shall be given by the Minister 
 unless it is shown to his satisfaction that such assignment 
 or transfer is expedient in the public interest and particularly 
 that no compensation whatever is to be paid or allowed to the 
 assignor or transferor for the rights and privileges granted 
 by such agreement, license or lease. 
 
 (2) Xo such assignment or transfer shall be valid or effec- Transiferee to 
 
 ,. 1 i..i, • i. X- T- J J. 1 • assume obliga- 
 
 tive unless the assignee or transferee has undertaken m a tions. 
 manner satisfactory to the Minister to assume all the obligations 
 of the assignor or transferor and also such additional obliga- 
 tions as may be prescribed by the ]\[inister in the said written 
 approval. 
 
 (3) Xo lien shall be created upon any power undertaking Lien by way of 
 established in respect of any license, lease or agreement issued ^ust^dfed^'^ 
 under these regulations by mortgage or trust deed unless 
 
 approved by the Minister ajid for the bona fide purpose of 
 financing the undertaking. Any successor or assign of the 
 rights held in respect of, such license, lease or agreement 
 whether by judicial sale, foreclosure sale or otherwise shall be 
 subject to all the conditions of such license, lease or agreement, 
 and also subject to all the provisions and conditions of these 
 regulations to the same extent as though such siiccessor or 
 assign were the original licensee, lessee or contractor. 
 
 PENALTIES FOR DEFAULT OF LICENSEE AND LESSEE. 
 
 84, If, in the opinion of the Minister, the licensee or penalty for non 
 lessee has failed to observe or fulfil any term or condition observance of 
 
 1-1 1 1 • T 11 1 ■ • conditions. 
 
 which under his license or lease or under the regulations m 
 force from time to time, he is required to observe or fulfil, the 
 Minister may, upon giving the licensee or lessee not less than 
 thirty days' notice in writing, refer the matter of such non- 
 observance or non-fulfilment to the Exchequer Court, in wjiich 
 case, if the said Court, after hearing the matter finds that 
 the licensee or lessee has failed to observe or fulfil any such 
 term or condition, and that the case is one which cannot, 
 in the opinion of the said Court be met by an order of 
 
64 
 
 specific performance or bv the award of a simi payable 
 to the Crown as liquidated damages or bv any other order 
 which the Court may deem applicable to the ease, the said 
 license and leaiSe shall be subject to cancellation on the order 
 of the said Court without compensation for the works' of 
 the licensee or lessee located upon Dominion lands or with 
 such partial compensation as the said Court may determine, 
 not in any case, however, exceedinc: the compensation which 
 would be arrived at if the provisions of sul)sections (4) and 
 (5) of section 48 were ap])licable ; and with such rights on the 
 part of His Majesty to the' possession, occupation and use of 
 any lands, works, structures equipment and ])roperties other 
 than Dominion lands and the works located thereon, then 
 owned or held by the licensee or lessee and used or occupied 
 in connection with the undertakinsi; to which such license or 
 lease relates, and with such compensation to be paid for such 
 other land?!, works, structures, equipment an<l })roperties as are 
 set out in the next following section. 
 
 Provided however that failure on the part of the licensee in 
 the payment of rentals or other sums payable under the terms 
 ot the license or lease or of these regulations shall only Ix- 
 rctt'rrcd to the Exchequer Court as above if the Governor in 
 Council's consent to such reference is first obtained. 
 
 Crown rigrhts in 
 patented lands 
 and works not 
 attach'.'d to 
 Crown lands 
 when agreemtr-nt. 
 lioensi", <'tc., 
 catifelled or 
 terminated. 
 
 Rr extent of 
 landis> and works 
 taken over. 
 
 85. ( 1 ) livery agreement, license or lease shall be deemed 
 to have Iteen executed on the ex|)ress condition that in the 
 event of the t«'rminatirin or cancellation thereof in pursuance 
 of its terms or of the.^e regulations. His ^Majesty or such 
 j)er.s((n as the Minister may designate to act in that behalf, may 
 imujediately and without further proceeding enter upon, take 
 over, possess, occupy, operate ainl control, in addition to the 
 Dominion lands and the works and structures located thereon 
 as hereinbefore set out. all other lands or interests therein and 
 all other works, structures, equipment and properties, real or 
 per.sonal, then owned or held by the c(tntractor, lic<>nsee or 
 lessee, as the case may be, and used or occupied in connection 
 with the undertaking to which the j»articular agreement, license 
 or lease relates, and required in the carrying forward of the 
 said undertaking, and that in such t*vent such contractor, 
 licensee or lessee shall immediately execute in favour of His 
 ^lajesty or in favour of such ])erson as the ^linister may 
 designate for the purpose, a grant of all of the said other 
 lands, works, structures, equipment and properties. 
 
 (2) In the case of the cancellation of any agreement the 
 ^Minister's decision in regard to tiie extent of the said other 
 lands, works, structures, equipment and properties so required 
 
■ 65 
 
 shall be final, but in tbe case of the termination or cancellation 
 of any license or lease, if the Minister and licensee or lessee 
 cannot agree on the said matter, it shall be referred to the 
 Exchequer Court for detennination. 
 
 Provided always that pending a decision by tihe Exchequer 
 Court in the case last mentioned the Minister's decision on 
 the extent of the said other lands, works, structures, equipment 
 and properties so required shall be final. 
 
 (3) Compensation shall in every case be paid for all lands, compensation 
 works, structures, equipment and properties taken over by Exchequer court 
 His Majesty under this section, such compensation to be fixed, '" ^'^ ^^'^^ cases, 
 if the Minister and the contractor, licensee or lessee cannot 
 
 agree, by the Exchequer Court of Canada. 
 
 (4) The compensation paid for any lands taken over from i^"'e of 
 
 ,,. . I'n • compensator! 
 
 any contractor under this section shall not exceed the price for laijds. 
 paid therefor by such contractor ; and the compensation paid 
 for any lands taken over from any licensee or lessee under this 
 section shall be arrived at "by considering such lands from 
 the point of view of their natural fitness for ordinary, com- 
 mercial or industrial purposes when compared with other lands 
 in the immediate vicinity, but shall not include any special 
 value which may attach to the said lands by reason of the 
 development made by the licensee or lesisee in connection with 
 his license or lease. 
 
 (5) The compensation paid for any works, structures. Rule of 
 
 , 1 1.J.1 ij.i'i.' compensation 
 
 equipment or personal property taken over under this section f^r works, 
 shall be arrived at as nearly as possible according to the pro- 
 visions relating to compensation for works on Dominion lands 
 taken over on the termination of the licensee's term as set out 
 in subsections (4) and (5) of section 48 hereof. If, however, 
 the Dominion Water Power Regulations in force at the time 
 of such taking over contain provisions amending the above 
 subsections or contain other provisions more particularly 
 applicable to the case in hand then such compensation shall 
 be arrived at according to such later provisions. 
 
 MISCELLANEOUS PROVISIONS. 
 
 86. Before executing any license or lease the Minister shall Acceptance by 
 submit to the prospective licensee or lessee a draft of the pro- lesseef^ °^ 
 posed license or lease and shall secure from such licensee or 
 lessee an acceptance thereof and an undertaking to observe and 
 fulfil all the terms and conditions which under such license 
 or lease and under these regulations such licensee or lessee is 
 6373^5 
 
66 
 
 required to observe or fulfil, -with particular reference to the 
 rig'ht of His Majesty to take over the works, lands and pro- 
 perties held hy the licensee or lessee in connection with his 
 license or lease in certain contingencies as in these regulations 
 provided. Such acceptance and undertaking shall be made to 
 bind the executors, administrators ajid assigns, or in the case 
 of a corporation the successors and assigns of the prospective 
 licensee or lessee. 
 
 Crown to be 
 indemnified. 
 
 87. The licensee or lessee shall indemnify the Crown against 
 all actions, claims or demands arising against it by reason of 
 anything done by such licensee or lessee in the exercise or 
 purported exercise of the rights and privileges granted imder 
 the license or lease. 
 
 Times of 
 paymi^nt of 
 rentals may I* 
 altered. 
 
 License may be 
 termlnate<l if 
 required under 
 Irrlfration Act. 
 
 Compensation 
 with bonus*. 
 
 Return of waters 
 ( Dom. I^ds. Act, s. 
 35.) 
 
 88. If the Minister considers it advisable in order to 
 .-^y.^lematize the accounting work of the Department to change 
 the times of payment of rentals or other charges or su^ls pay- 
 able under any existing license, lease or agreement, he may, 
 by a notice in writing to the licensee, lessee or contractor, 
 readjust such times of payment, provided always that the 
 aggregate pavment to be made under the said license, lease 
 <>r ;ig?*('('iii('iit i< iKit iiKM'f'ased by -;ucli aetinii. 
 
 89. rpnii a rcp(»rt being made by the Minister that the 
 c-uniiniicd uperation of the works held in respect of any license, 
 lease or agreement will conflict with the exercise of rights 
 which exist or may be created under the Irrigation Act, then 
 in such cases, the Governor in Council may order such license, 
 base or agreement terminated, and thereupon the provisions 
 ri'spcc'ting the taking over of tbc properties, and the compen- 
 sation to be paid to the licensee, lessee or cuntractor, set out 
 in section 48 hereof shall apply. 
 
 Provided that in fixing the compensation which shall be 
 paid to suoh licensee, lessee or contractor, for the lands, works 
 and properties taken over by the Crown under this section, a 
 bonus may be added to the value, determined under the said 
 .<<eotion 48, of such lands, works, and properties, the said bonus 
 not to exceed three-fourths of one per cent of such value for 
 each full year of the unexpired term of the license or lease. 
 
 90. Pursuant to the statute in that behalf the diversion or 
 taking of water by any licensee, lessee or contractor shall be 
 subject to the condition that it shall be returned to the channel 
 tlirough which it would have flowed if there had been no 
 such diversion or taking in such manner as not to lessen the 
 volume of water in the said channel, and at a point to be 
 designated on the final plans as approved by the Minister. 
 
67 
 
 91. Where lands which have been reserved by the Governor interim leases of 
 
 ^ •! 1- 111-111 ,. reserved lands. 
 
 in (Jouncil as being vamable m the development of any water- 
 power and which have been set apart to be dealt with only 
 under these regulations, cannot, in the opinion of the Minister, 
 be utilized in connection with isuch water-power development 
 for a number of years, and where, in the opinion of the Minis- 
 ter, the granting of interim leases or licenses of occupation 
 for other purposes will not interfere with the purposes of such 
 reservation, applications for the temporary use and occupation 
 of such lands for such other purposes may be considered by 
 the Minister and interim leases or licenses granted by him; 
 provided always that it shall be a condition of every such 
 interim lease or license that when, in the opinion of the Min- 
 ister, such lands are required in connection with such water- 
 power development it shall be lawful for the Minister on giv- 
 ing the interim lessee or licensee not less than sixty days' notice 
 of such cancellation, by writing under his hand to cancel such 
 lease or license and determine the rights thereby conferred, 
 and repossess himself on behalf of His Majesty of the said 
 lands without any compensation whatever being paid to such 
 interim licensee or lessee. 
 
 92. Every lessee, licensee or contractor shall comply fully Navigation, 
 with the provisions of the jN'avigable Waters Protection Act Ashing and other 
 and any rules and regulations promulgated thereunder; and "^^erests. 
 shall also comply fully with the provisions of any Provincial 
 
 or Dominion statutes or regulations governing the preservation 
 of the purity of the waters or governing logging, timbering, 
 fishing or other interests present or future which might be 
 affected by any operations conducted under his lease, license 
 or agreement and shall also observe and carry out any instruc- 
 tions of the Minister in respect of any of the foregoing matters 
 not inconsistent with the said statutes and regulations ; and no 
 rights granted or approval given by any lease, license or agree- 
 ment shall be taken to excuse compliance with any of the 
 foregoing matters. 
 
 93. The Minister may from time to time make such supple- Minis>ter may 
 mental rules regarding such matters as the nature of plans mental rules, 
 and specifications to be filed, the prescribing of forms to be 
 
 used, the procedure to be followed in connection with various 
 inquiries and matters arising under these regulations as may, 
 in his opinion, be desirable. 
 
 94. The Minister may take such steps as he may deem Surveys and 
 
 (■ • . 1 measurements. 
 
 necessary irom time to time to secure complete or partial 
 surveys of the sources of the water supply; may authorize the 
 establishing of gauges, weirs or other devices for water measure- 
 
68 
 
 Superintendent 
 to make recom- 
 mendatioii. 
 
 l^ocal liearinK 
 in ceita'.n 
 oases. 
 
 Short tt-rni 
 license, and 
 lease. 
 
 merits; and may /direct the carrying out of observations, 
 measurements or investigations to determine the volume or 
 discharge of any stream or body of water, or to determine the 
 economic avaihibility or usefulness thereof for power purposes, 
 or to determine the flow or quantity of water used by any 
 licensee or other person for power and other pui-poses, or to 
 determine the output of electrical or other form of energy 
 produced from the use of water by any licensee or other 
 person. 
 
 SMAT.T, WATKH-POWKRS. 
 
 95. In ilie case of ;iiiy application for the development of a 
 water-power not exceeding in capacity the limits set out in 
 section 3 hereof, the Superintendent (»f Water Power may at 
 any time after the filing of the application and such plans and 
 infonnation as may have been required imder sections 4. 5 and 
 (5 hereof, pnx'ced with the consideration of such application, 
 and may reconmicnd t<> the Minister either the dismissal of the 
 applicatidii or the entering into an agreement for a license or 
 lea>e, or the taking of such other action a.s he may deem 
 
 advisable. 
 
 I 
 
 96. It. however, because of <»bjections being filed, or for 
 other reas<«is, the Superintendent iconsiders that a local or 
 other hearing should take place before action is taken, he shall 
 apjx>int a lime and plaee for >uch hearing and ■shall name a 
 person to jireside over and cuuduet 'the same. Such person 
 shall rej)urt his findings and recommendations in writing, after 
 which the Superintendent may make his recommendations to 
 the Minister, and the .Minister may dismi>s the application, 
 enter into an agreement or take such other action as he deems 
 advisalile. 
 
 97. riie Mini-ter may. in the case of any such application, 
 if he considers such acti(»n in the public interest, enter into 
 an agreement for a isp(>cial license' and (or) lease and may 
 subsequently i>sue .-uch special license and (or) lease subject 
 to such terms and conditions as. irrespective of any provision 
 of those regulations, he ^nay deem advisable. Provi<led always 
 that such spc<'ial license and (nr) lease shall in no case be for 
 a term exceedinir ten vears. 
 
 Kanana-skitt Dam. 
 
INDEX TO REGULATIONS 
 
 Section. 
 
 Abandonment of lands leased 53 
 
 Acceptance of license or lease by licensee or lessee 86 
 
 Accounts to be kept and supervised 80 (2-4) 
 
 Agreement for license and lease (see also "contractor ") — 
 
 Minister may execute, when 16 
 
 regulations incorporated without restatement 16 (2) 
 
 contents of 20 
 
 rentals under 20 (j), 23 
 
 cancellation of, for default 38-40 
 
 may be amended in certain cases 41 
 
 Applicant (see also "contractor") — 
 
 to file application 4 
 
 to secure authorization for surveys 7 
 
 to furnish security for damage from entry 9 
 
 to file general layout plans 11 
 
 to secure permit for further surveys in some cases 17-19 
 
 Application of regulations, to what territory in Canada 2 
 
 Application for license or lease, what particulars to contain 4 
 
 Appraisal and accounts 80 
 
 Approval of plans 27 
 
 Assignment of agreement, license or lease 83 
 
 Authorization to make initial surveys 7 
 
 Beds and shores of streams, limited rights in 55 
 
 Bond or Security — 
 
 may be required for damages from surveys 9 
 
 to be deposited by contractor 28 
 
 Bonds (see " stock and bond issues ") . 
 Bonus — 
 
 when works taken over to make new development possible 73 
 
 when works taken over because conflict with Irrigation Act 89 
 
 Cancellation (see also "termination") — 
 
 of agreement for default 38-40 
 
 of license for non-payment of rentals, etc 50 
 
 for refusal to develop power up to demand 72 
 
 for default in general 84 
 
 Capitalization of grants not permitted 82 
 
 Compensation for property taken over — 
 
 for damage by surveys 9, 10 
 
 for works on Dominion lands, if agreement cancelled 38 
 
 if license terminated at end of term 48 
 
 if license cancelled for non-payment of rentals 50 
 
 in case of abandonment or voidance 53 (5) 
 
 if license cancelled for default 84 
 
 for all works, if taken over to make enlarged development possible.. 73-74 
 
 because of conflict with Irrigation Act 89 
 
 for patented lands and works and structures not attached to Dominion 
 
 lands in every case 85 (3) 
 
 Contractor (see also "agreement") — 
 
 definition of term 1 
 
 rights in Dominion lands 21 
 
 in private lands 22 
 
 final plans to be prepared by 24, 25, 27 
 
 plans of lands by Dominion land surveyor 26 
 
 to deposit bond 28 
 
 to construct works 29-33 
 
 69 
 
 Page. 
 51 
 65 
 60 
 
 32 
 32 
 33 
 34, 36 
 41 
 42 
 
 27 
 30 
 31 
 31 
 33 
 27 
 27 
 60 
 38 
 63 
 30 
 
 31 
 38 
 
 56 
 66 
 
 41 
 49 
 56 
 63 
 62 
 
 31 
 41 
 46 
 49 
 51 
 63 
 56, 57 
 66 
 
 65 
 
 35 
 35 
 38 
 37 
 38 
 38 
 
 36, 
 
to submit reports 
 
 to assume certain obligations of licensees and lessees 
 
 to file proof of completion of works 
 
 Contracts extending beyond term of license 
 
 Court (see " Exchequer Court "). 
 Crown — 
 
 may take over works at end of term 
 
 may purchase power at normal rate 
 
 to be indemnified against loss by licensee 
 
 Crown lands (see "Dominion lands"). 
 Damages (see "compensation"). 
 Default — 
 
 by contractor in terms of agreement 
 
 by licensee or lessee in payment of rentals 
 
 by licensee or lessee in compliance with terms of license, lease or 
 
 regulations 
 
 in producing power up to capacity 
 
 Definitions of terms 
 
 Demand for power to be satisfied 
 
 Dominion lands — 
 
 definition of term 
 
 only temporary rights in. ac<4uired by contractor 
 
 required for flooding purposes 
 
 beds and shores of streams 
 
 required for transmission lines 
 
 care of, by lessee or contractor 
 
 moving roads, trails, etc .... 
 
 Dominion parks, provision relating to .... 
 
 Elevations, to be referred to sea-level datum 
 
 Exchequer Court, matters referred to — 
 
 serious caaes of default by contractor 
 
 compensation for works on Dominion lands if license terminated at 
 end of term 
 
 compensation when license terminated because enlarged development 
 desirable 
 
 questions of default by licensee or lessee 
 
 compensation when license cancelled for default 
 
 respecting the taking over of patented lands and works not attached 
 to Dominion lands in all cases 
 
 compensation when license terminated because of Irrigation A<'t . . .. 
 Expropriation powers over certain private lands. 
 
 Financial standing, apitlicant to state 
 
 Finance and accounting of licensees 
 
 Fishing interests to be protected 
 
 Fires, j)revention of 
 
 Flooding, lands required for . 
 
 Forest reserves provl»lon 
 
 Grants not to be capitalized 
 
 Indemnity for Crown by licensee 
 
 Inspection — 
 
 of works during construction 
 
 of works on completion 
 
 of works of licensee by officers .... 
 
 Interim leases of reserved lands 
 
 Irrigation Act, rights of licensees not to conflict with 
 
 Lands (see also "Dominion lands") — 
 
 when private lands may be taken 
 
 compensation for patented, if taken over 
 
 Lease — 
 
 when issued 
 
 regulations incorporated without restatement 
 
 Section. 
 
 Page. 
 
 34 
 
 40 
 
 35 
 
 40 
 
 36 
 
 40 
 
 7S 
 
 58 
 
 48 
 
 46 
 
 77 
 
 58 
 
 87 
 
 66 
 
 3S 
 
 • 41 
 
 50 
 
 19 
 
 84 
 
 63 
 
 72 
 
 56 
 
 1 
 
 25 
 
 71. 74 
 
 56, -.1 
 
 1 
 
 25 
 
 21 
 
 35 
 
 54 
 
 51 
 
 55 
 
 52 
 
 56 
 
 52 
 
 57-61 
 
 52 
 
 62 
 
 53 
 
 65 
 
 54 
 
 5, 15 
 
 30. 32 
 
 J9 (b) 
 
 42 
 
 48 (3) 
 
 47 
 
 73 
 
 56 
 
 84 
 
 63 
 
 84 
 
 63 
 
 85 
 
 64 
 
 S9 
 
 66 
 
 22 
 
 35 
 
 * (<Z) 
 
 29 
 
 80. 81 
 
 60 
 
 92 
 
 67 
 
 59, 60 
 
 53 
 
 54 
 
 51 
 
 64 
 
 54 
 
 S2 
 
 62 
 
 s7 
 
 66 
 
 31-33 
 
 3;t 
 
 37 
 
 41 
 
 68 
 
 55 
 
 91 
 
 67 
 
 &» 
 
 66 
 
 2'' 
 
 35 
 
 !>5 (4) 
 
 65 
 
 42 
 
 43 
 
 42 (2) 
 
 43 
 
71 
 
 Section. Page. 
 
 contents of 44 44 
 
 rentals payable under 49, 50 48, 49 
 
 term of i • • • 51 50 
 
 to run concurrently with license 51 50 
 
 dependent upon license 52 50 
 
 voided if lands not required 53 51 
 
 cancellation of, (see "cancellation"), 
 termination of, (see "termination"). 
 License — 
 
 when issued 42 43 
 
 regulations incorporated without restatement 42 (2) 43 
 
 contents of 43 43 
 
 term of 45 45 
 
 renewal of 46-48 45 
 
 termination of at end of term 48 46 
 
 rentals payable under 49, 50 48 
 
 cancellation of, (see " cancellation ■")• 
 termination of, (see "termination"). 
 
 Logging interests to be protected 92 67 
 
 Measuring devices to be installed 70 56 
 
 Navigable Waters Protection Act to be complied with 92 67 
 
 Notice, definition of what constitutes sufficient 1 25 
 
 Parks, Dominion, provision relating to 65 54 
 
 Penalties — 
 
 for defa/ult by contractor 38 41 
 
 for non-payment of rentals by licensee 50 49 
 
 for non-observance of conditions by licensee 84 63 
 
 Permit, preliminary — 
 
 issued when not sufficient plans for agreement . . . 17-19 33 
 
 Power output clauses 71-74 56 
 
 Power sale clauses 75-78 58 
 
 Plans — 
 
 Minister may call for additional of applicant 6 30 
 
 general layout plans 11-15 31 
 
 final working plans 24-25 36 
 
 of lands affected 26 37 
 
 approval of final 2i7 38 
 
 Priority — 
 
 not acquired by receiving authorization to make survey 8 31 
 
 is acquired under permit 18 33 
 
 Proof of completion of works by contractor 36 40 
 
 Purity of waters clause 92 67 
 
 Rates charged consumers — supervision of 81 62 
 
 Regulation of stock and bond issues 81 (3) 62 
 
 Regulation of stream flow, and conservation works 79 59 
 
 Regulations — 
 
 definition of term 1 25 
 
 every agreement subject to 16 (2) 32 
 
 every lease and license subject to 42 (2) 43 
 
 Renewals — 
 
 of permit limited 19 33 
 
 of agreement 41 42 
 
 of license 46-48 45 
 
 of lease 51 50 
 
 Rentals — 
 
 under agreement 20 (:;), 23 34, 36 
 
 under licenses and leases 49, 50 48 
 
 times of payment of, may be altered 88 66 
 
 Reserved lands, surveys of. Minister to direct 94 67 
 
 Return, anniual of accounts 80 60 
 
 Return of waters clause 90 66 
 
72 
 
 Section. Page. 
 
 Rights of way — 
 
 for flooded lands 54 51 
 
 over beds and shores 55 52 
 
 fior transmission lines 56 52 
 
 Roads and trails, changing location of 62 53 
 
 Security (see Bond or Security). 
 
 Small water-powers 3. 95-97 27, <^5 
 
 Stock and bond issues — 
 
 provisions re, in regulations then in force to govern supplementary 
 
 license 75 58 
 
 statement re, in annual summary 80 60 
 
 commission or board to regulate 81 62 
 
 Stream control clauses 79 59 
 
 Summary, annual of accounts 80 60 
 
 Surplus power, use of, requires license 75 58 
 
 Surveys (see also " plans ") — 
 
 authorization to make •. 7 30 
 
 permit to make additional, in certain cases 17-19 33 
 
 of lands required for water-jiower ijurposes. Minister to direct 94 f.7 
 
 Term — 
 
 of license 45 45 
 
 of lease 51 50 
 
 Termination of license — 
 
 at end of license's term 4 8, 8,". 4fi, r>4 
 
 where enlarged development desirable and licenses will not undertake. 73, 74 56 
 
 where conflict with Irrigation Act 89 66 
 
 Timber — 
 
 cutting of merchantable 63 54 
 
 cutting in parks and forest reserves 66 54 
 
 Transfer of agreement, license or lease 83 63 
 
 Transmission lines — 
 
 rights of way required for licensee's 56 52 
 
 care of Government transmission lines 58 53 
 
 Uncompleted contracts. :it end of ti-rm 78 58 
 
 Undertaking — 
 
 definition of term 1 25 
 
 application must describe 4 (;>) 27 
 
 license must describe 4.'5 (</) 4 4 
 
 Voidance of lease If lands no longer required 53 51 
 
 Waters — 
 
 " stream " or " water-course " defined 1 25 
 
 beds and shores of streams 55 52 
 
 assuring most comprehensive development of 73, 74 56 
 
 governmental regulation and control of flow 79 59 
 
 to be returned to same channel from which diverted 90 66 
 
 Works — 
 
 deflnition of term 1 25 
 
 general layout plans 11-15 31 
 
 final working plans 24-25 36 
 
 construction by contractor 29-34 38 
 
 change in, requires authorization 29 (3). 69 39, 55 
 
 inspection of during construction 31-32 39 
 
 proof of completion to be filed 36 40 
 
 compensation for if taken over at end of term 48 (2-6) 47 
 
 mantenance and operation by licensee 67, 69 55 
 
 conservation or storage works 79 (1) .'i9 
 
 annual statement of cost and depreciation by licensee 80 (2) t;ii 
 
TU U I /^b 
 
 
 Mlbd9900