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Endorsement of House bill 11449 (similar to Senate bill 3511) Congress of the United States : providing for the construction by the federal goverment of the Boulder Canyon Dam and the All-American Canal
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and Acts amendatory thereof or supplementary thereto, hereinafter referred to as the reclamation law. Sec. 3. That the Secretary of the Interior is empowered to receive applications for the right to use for the generation of electrical power portions of the water discharged from said reservoir and available for the generation of electrical power at said dam, and, after full hearing of all concerned, to allocate to such applicants such portions of such power privileges as, in his judgment, may be consistent with an equitable distribution thereof among the various interested States and among the various interested communities in each State. The said Secretary, in making such allocation, may give consideration to the plans of the various applicants, having regard to their relative adaptability to utilize such power privileges in the public interest, and at reasonable cost to the communities served: Provided, That subject to such allocations he shall give preference to applications made by political subdivisions. Sec. 4. That the said Secretary is authorized to make leases of the power privileges so allocated, limited to fifty years, on such terms and under such regulations as he may prescribe, and to fix what he may find to be a reasonable compensation therefor. Upon or after the expiration of . any such lease, or renewal thereof, the United States may take over the property of the lessee which is dependent for its usefulness upon the continuation of the lease, and if it shall do so shall pay to the lessee its net investment in the property taken, not exceeding the fair value thereof at the time it is so taken, with reasonable severance damages to property of the lessee not taken. Such net investment, or fair value and damages, if not agreed upon, shall be fixed by a proceeding in equity in the district court of the United States in the district in which such property, or some part thereof, is situated. If the United States does not exercise its right to take over such property, the Secretary of the Interior may, by agreement with the lessee, renew the said lease for not more than fifty years, or in his discretion may make a lease under the terms hereof to a new lessee, upon the condition that such new lessee shall pay to the former lessee such net investment and damages determined as aforesaid. If such property is not taken over by the United States, or such new lessee, or such lease renewed, the said Secretary shall extend such lease from year to year until such property is so taken over or such lease renewed. Sec. 5. That any such political subdivision, instead of entering into a lease, may, with the consent of the Secretary of the Interior, as the consideration for such power privileges as may be allocated to it as above provided, pay to the United States in annual installments, during such period not exceeding twenty-five years as may be agreed upon, a total sum which shall bear the same proportion to the cost of constructing such dam and incidental works and acquiring lands and rights of way for said reservoir and incidental works, as the water allocated to such political subdivision bears

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