Water Power Regulation

Water Power Regulation, M.R. 25/88 R The Water Power Act , C.C.S.M. c. W60 Regulation 25/88 R Registered January 15, 1988 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Small water powers 3-5 Application for licence 6 Publication and hearings 7-8 Survey permit 9-10 Damage caused by surveys and investigations 11-13 General layout plans 14-17 Priority permit 18-20 Interim licence 21-23 General construction plans 24 Plan of lands 25 Approval of plans 26 Commencement of construction 27 Annual deposit by interim licensee 28 Guarantee deposit 29-30 Rights in lands under interim licence 31 Change in plans 32-34 Inspections and reports 35 Final construction plans 36 Fixation of construction costs 37-38 Operation under interim licence 39 Amending interim licence 40 Extension of time 41 Penalties for default by interim licensee 42 Completion of works by interim licensee 43-44 Issuance of final licence 45 Term of licence 46 Renewal of termination 47 Works and lands within and outside the severance line 48 Licence rentals re land and water use 49 Rates to consumers 50-53 Limited rights in lands 54-61 Care of lands 62-65 Works, maintenance and operation 66 Output of power 67 Securing enlarged development 68 Change in undertaking 69-71 Sale of power or energy 72-73 Stream regulation and control 74-75 Co-operative agreements with other provinces 76-77 Appraisals 78 Accounting 79-80 Assignments or transfers 81 Penalties for default by licensee 82-89 Miscellaneous provisions 90-91 Special conditions for small water powers 92 Short term extension licences 93 Renewal of final licence Definitions 1(1) In this regulation, "accepted" , "approved" , "directed" , "ordered" , "required" , "satisfactory to" and words of similar import mean respectively accepted, approved, directed, ordered, required or satisfactory to the minister or director; (« accepté », « approuvé », « prescrit », « ordonné », « exigé » ou « à la satisfaction de ») "actual construction" means any necessary and authorized work carried on under this regulation and ordinarily includes (a) engineering investigations and reports, (b) the clearing of lands, (c) the construction of roads or railways, (d) stream improvements, and (e) other essential work undertaken solely in the construction of works authorized and not used independently as a source of profit, but excludes (f) promotion work, (g) the underwriting, sale, or disposal of stocks and bonds, and (h) the general administrative or directive functions which are exercised by officers of the company or other persons at some distance from the actual scene of operations; (« construction réelle ») "actual cost" with respect to any development or works means the actual legitimate cost of such development or works in use and useful for the purposes of the undertaking at the time that any particular inquiry is being made, and ordinarily includes (a) the cost of engineering services appertaining to the construction of such development and works, (b) interest during construction, (c) taxes and insurance during construction, (d) contractor's profit, (e) the purchase of equipment, (f) the cost of roads, railways, clearings, or other essential works undertaken and carried on solely in the construction of such development or works and not independently profitable, and (g) such other expenditures as are necessary and inherent items of construction, but does not include (h) promotion expenses, (i) the cost of underwriting, selling, or disposing of stocks and bonds or the provision of capital for purposes other than those included in clauses (a) through (g), and (j) head office and other expenditures relating to general administration exercised at some distance from the development or works which are not necessary and inherent parts of the construction expenditures; (« coût réel ») "applicant" means any person who has filed an application for a licence under this regulation, and includes any permittee or interim licensee; (« requérant ») "court" means the Court of King's Bench; (« tribunal ») "final construction plans" means the plans described in sections 25 and 35 of a power development or power system as actually constructed, and shall in every case include plans of the lands as finally occupied to conform with the requirements of section 24; (« plans de construction définitifs ») "final licence" means a licence authorizing the diversion, use, or storage of water for power purposes, or the transmission and distribution of water power, as set out in sections 43 and 44; (« licence définitive ») "general construction plans" means the plans described in sections 21 and 23 of the works which must be approved by the department before the interim licensee is permitted to commence the construction of the power development; (« plans généraux de construction ») "general layout plans" means the plans described in sections 12 and 13, which must be filed by the applicant before an interim licence may be issued, and which are to aid the department in determining whether the proposed undertaking is feasible and practicable and in the public interest; (« plans d'ensemble ») "interim licence" means a licence authorizing the preparation of general construction plans and the construction of works in pursuance of such plans, as more particularly set out in sections 18 and 19; (« licence provisoire ») "notice" means a written notice referred to in section 91; (« avis ») "permittee" means the holder of a priority permit under this regulation; (« titulaire de permis ») "preliminary sketch plan" means the preliminary plan or sketch filed by the applicant with the initial application as described in subsection 3(1); (« croquis préliminaire ») "plans" means one or more of preliminary sketch plans, general layout plans, general construction plans and final construction plans; (« plans ») "priority permit" means a permit granting certain priority in the consideration of an application as provided in sections 14 to 16; (« permis prioritaire ») "provincial lands" means and includes all lands and real property of whatsoever nature or kind and all the right, interest or estate therein heretofore vested in or that may hereafter be acquired by the Crown and any other lands or any interest therein which have been or may be placed under the control and management of the minister; (« terres provinciales ») "regulation" includes this regulation and any regulation in force for the granting and administering of the water powers and of lands required in connection with the development and use thereof; (« règlement ») "severance line" means the line within which, in the event that the licence should ever be terminated either by the failure to renew it upon the expiry of the term, or by voidance, cancellation, or any other legal process, the lands, works, and properties used or useful in connection with the undertaking should be considered as essentially tributary to the power or storage development, and outside of which such lands, works, and properties should be subject to be taken over on a different basis; (« ligne de division ») "survey permit" means a permit to make surveys as provided in sections 7 or 8; (« permis d'arpentage ») "works" , when used with reference to any power development, power system or similar undertaking means all the physical structures, devices, equipment, appliances, appurtenances and things whatsoever, authorized or required to be constructed, maintained, or operated by the applicant or licensee in respect of such power development, power system or similar undertaking. (« ouvrages hydrauliques ») 1(2) The following definitions shall apply to the six stages in development of works: "independent works" means all works and plants outside of the power system which may be classed as more tributary to independent undertakings of the licensee than to the undertaking authorized; (« ouvrages indépendants ») "initial development" or "initial power or storage development" means such portion of the "power or storage development" as is specified in the interim licence as being required to be constructed before a final licence may be issued; (« aménagement initial » ou « aménagement d'energie hydraulique ou aménagement d'emmagasinage initial ») "inter-connected systems" or "inter-connected power systems" means the power system and all plants and works connected therewith, related thereto and interdependent upon it, and similarly used in the generation, transmission, and distribution of electrical energy; (« réseaux conjugués » ou « réseaux conjugués d'énergie hydraulique ») "power development" or "development" means the physical structures within the severance line required for the storage or use of the stream waters, for the production of power therefrom, and for the transmission thereof, and shall ordinarily include the dams or other diversion works, the power house, the conduits conducting water thereto, the transmission lines within the severance line, and all hydraulic or electrical machinery, appliances, fixtures, equipment, appurtenances and lands and rights of way required in connection therewith, as well as clearings, roads, trails and railways insofar as required to be constructed and still used and useful in connection therewith and not independently profitable; (« aménagement d'énergie hydraulique » ou « aménagement ») "storage development" or "development" means the physical structures within the severance line required for the storage of the streamwaters for the production of power, and shall ordinarily include the dams, intakes or other storage works, water conduits within the severance line, all hydraulic or electrical machinery, appliances, fixtures, equipment and appurtenances, and lands and rights of way required in connection therewith, as well as clearings, roads, trails, and railways insofar as required to be constructed and still used and useful in connection therewith and not independently profitable; (« aménagement d'emmagasinage » ou « aménagement ») "system" or "power system" means all lands, structures and appurtenances required to complete the undertaking authorized, including the power development, works, reservoirs, transmission lines, distribution works, auxiliary steam or other fuel plants, the lands required to be occupied, clearings, roads and railways insofar as required in connection with the power development, and all mills, buildings, machines, appliances, fixtures, equipment and appurtenances required in connection with the foregoing. (« réseau » ou « réseau d'énergie hydraulique ») Small water powers 2 Applications for the development of water powers, the capacity of which, under average usable flow conditions, does not exceed, in the opinion of the director, 500 horsepower, and which are not considered to be of primary importance for commercial or public utility purposes, may be dealt with under the provisions of section 90. The application 3 Every applicant for a licence to divert, use or store water for power purposes shall file with the director a statement giving or accompanied by the following information: 1 (a) the name of the applicant; (b) the applicant's post office address and occupation; (c) the name or a clear description of the river, lake, or other watercourse 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 watercourse, referred if possible to an established monument of the Manitoba lands system of surveys, and also the place where the water is to be returned or released; (e) the maximum quantity of water, expressed in cubic feet per second, which it is estimated will be ultimately diverted or used under the licence applied for; (f) the estimated average head in feet which will be available for the production of power according to the plan of development now proposed; (g) the estimated minimum amount of energy expressed in horsepower which will be developed on the turbine shaft within five years from the date of the application or within such other period as the applicant may state to be required for the completion of the proposed initial development; (h) the maximum amount of energy expressed in horsepower which it is estimated will ultimately be developed on the turbine shaft from the waters applied for; (i) a brief description of the character and extent of all principal works which it is proposed to construct for diverting, conveying, or using the water or water power, including dams, raceways, canals, tunnels, pipelines and other water conduits, powerhouses, mills and transmission lines, and, in the case of every dam its approximate maximum length and height, its proposed type, and the material to be used in its construction; (j) if storage is involved, the location of each lake basin or other place in which it is desired to store water, and for each such place the approximate number of acres of land which it is proposed to flood, the approximate area in acres of the surface of the reservoir when filled, the estimated vertical storage range in feet, and the total capacity of storage contemplated in acre-feet; (k) a reasonably accurate description and the area in acres of the lands which require to be occupied or used in the construction, maintenance or operation of the proposed works, noting separately lands required for rights of way and lands which are to be flooded (i) within Crown lands, and (ii) within privately owned lands, both of which lands should be described as far as possible so as to satisfy clause 12(2)⁠(h); (l) a preliminary plan or sketch, preferably on tracing film and cut to a uniform size of 20 × 17 or 30 × 26 inches with scale so selected as to show upon a single sheet the entire project applied for, with the approximate location of all the principal works and lands referred to in clauses (i), (j) and (k); (m) the nearest neighboring works or structure completed 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, and 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; (n) 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 stages respectively, copies of any existing measurements of the flow of the stream in the applicant's possession, and a reference to all other such measurements of which the applicant has knowledge; (o) a brief outline of the undertaking in respect of which the licence 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 territory and an estimate of the capital cost of the entire undertaking; (p) the financial standing of the applicant with reference to his or her ability to carry out the proposed undertaking and, where requested by the minister, an affidavit setting forth such facts with respect to the applicant's financial standing as the minister may require, which affidavit will be treated as confidential; (q) if the applicant is an incorporated company, the statement shall, in addition to the foregoing information, set forth (i) the names of the directors and officers of the company, and their places of residence, (ii) the head office of the company in Canada, (iii) the amount of capital authorized, and the amounts of subscribed, and of paid up capital, specifying in regard to the latter, how much has been paid in cash, in what manner the balance has been paid for, and the proposed method of raising further funds, if required, for the construction and operation of the proposed works, (iv) a copy of the special act of incorporation or the memorandum of association and a statement setting out the particular sections or parts thereof which authorize the company to make the application and to carry out the proposed undertaking; (r) if the applicant is a municipality, then the following special information shall be given in addition to that required in clauses (a) to (p): (i) the location, area and boundaries of the municipality, (ii) the approximate number of its inhabitants, (iii) the present indebtedness of the municipality and its borrowing limit, (iv) a certified copy of any bylaw or resolution passed by the municipality respecting the application or the undertaking to which the application relates, and a certified copy of any enabling Act or other statutory provision authorizing the municipality to engage in the proposed undertaking. 1 Applicants are advised to communicate with the director of the Water Resources Branch, Winnipeg, to see what information is already available in the department before complying with all the requirements of this section. The policy of the department is to accumulate the essential data with respect to power and storage sites, including stream flow, etc., and applicants may, therefore, save themselves time and expense by first making inquiries. 4 All elevations given in connection with the plans or other information filed by the applicant should be referred, if possible, to mean sea level datum. 1 1 See footnote to section 3. Information in regard to elevations can in many cases be obtained from the department. 5 The director may, at any time while an application is pending, irrespective of any other requirement of this regulation, call for such additional plans, descriptions, measurements, specifications, or other data, whether related directly or indirectly to the proposed works and undertaking, as the director considers necessary, and the same shall be furnished by and at the expense of the applicant. Publication and hearings 6(1) Forthwith upon the filing by the applicant of such data as in the opinion of the director is necessary and in every case before the issue of an interim licence, the director shall cause the publication, at the expense of the applicant, of a notice of the application in at least one issue of The Manitoba Gazette and also once in each week during two consecutive weeks in some newspaper of general circulation published within the general neighbourhood of the proposed works and approved by the director, and in one or more issues of such other publications as the director considers advisable unless the applicant is an agent of His Majesty in which case such publication may be dispensed with. 6(2) A notice under subsection (1) shall be marked at the top in plain letters "Manitoba Water Power Application", shall be in a form approved by the director, and shall give substantially the following information: (a) the name and address of the applicant; (b) the date of the application; (c) the name or a clear description of the source of supply; (d) a clear description of the place of diversion; (e) the maximum horsepower capacity of the proposed plant; (f) the nature of the undertaking and the utilization of the power; (g) a statement that the application has been filed with the director, and that protests or objections may be filed by any interested party with the director; (h) if storage or pondage of water is contemplated, the place of storage, the capacity of the intended reservoir, and a general description of the lands which will be flooded; (i) such other information as the director may require. 6(3) Forthwith after publication of notices has been completed, the applicant shall file proof of publication in the form of an affidavit satisfactory to the director, accompanied by a copy of the notice as published and posted. 6(4) If, because of protests or objections being filed, or for other reasons, the minister considers that a local or other hearing should be held before action is taken, the minister shall designate a time and place for the hearing and shall name a person to preside over and conduct it, and such hearing may be adjourned from time to time, and the applicant may be permitted for the time being to continue the preparation of his or her plans and the carrying on of investigations, as the minister may consider advisable. 6(5) The person conducting the hearing shall report the findings and recommendations in writing to the director, who may then make recommendations to the minister, and the minister shall take such action as the minister may consider advisable including dismissal of the application if such action is required in the public interest. Survey permit 7 The director may issue to any applicant a survey permit which shall empower the applicant to enter upon any Crown lands and upon the lands of any other person, for the purpose of making such surveys and investigations as may be necessary for the preparation of the applicant's general layout plans, but for no other purpose, and the applicant shall, in making such surveys and investigations, do as little damage as possible, and shall make full compensation to all persons sustaining such damage. 8 The issuance of a survey permit shall 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 that water power. 9 The applicant shall furnish such security as the department may require for 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 this regulation. 10 Where the applicant and the person whose lands are damaged by the making of any such surveys and investigations cannot agree on the amount of compensation for the damage done, either party may apply to any court of competent jurisdiction to have the question settled by arbitration, and thereupon the provisions of The Arbitration Act shall apply. General layout plans 11 Forthwith after the issuance of the survey permit, the applicant shall proceed with the preparation of general layout plans and data, and shall file them within the time the director specifies. 12(1) The general layout plans and data shall be such as in conjunction with the data already available in the department will enable the director to determine whether the proposed works are of suitable design to accomplish the purpose intended, whether the proposed development is in general accord with the most beneficial utilization of the resources of the stream, and whether the proposed undertaking is feasible and practicable and in the public interest, and such plans shall further conform to any requirements of the director not inconsistent with this regulation. 12(2) The plans and specifications referred to in section 11 and subsection (l) shall (a) be carefully prepared, and based upon actual and thorough surveys and investigations on the ground; 1 (b) be in sufficient detail to enable the department engineers to determine exactly what is proposed to be done by the applicant; (c) show the position of the proposed works with reference to surrounding objects, so that the exact scope of what is desired may be readily located and ascertained; and (d) show what provision is made for navigation, logging, and other interests, as required by section 87. 1 See footnote to section 3. In certain cases an applicant may make use of plans in possession of the department. 12(3) The plans and specifications referred to in subsections (1) and (2) and section 11 shall ordinarily include the following items but in certain cases the applicant may be excused by the director in writing from supplying some part or parts of the information called for by this subsection: (a) a general map with scale so selected as to clearly define the location of all dams, reservoirs, conduits, powerhouses and other works, except transmission lines; (b) a cross section of each dam site along the centre line of the proposed dam with graphical log of each boring, test pit, or other exploration, and a brief statement of the character and dip of the underlying material; (c) plans, elevations and cross sections of the dams, showing spillways, sluiceways or sluice pipes and other outlet or control works, and of the other principal structures which may be required; (d) a satisfactory contour plan showing the proposed powerhouse and other works; (e) a satisfactory contour plan of the entire water conduit location and a plan, elevation and cross section of each type of water conduit; (f) a satisfactory contour plan of each reservoir site showing the amount of flooding involved, and the location and character of each proposed dam and of other contingent works; (g) a map or plan of the survey of the proposed final location of the centre line of all main transmission lines to and including the receiving stations; (h) plans or maps in every case showing the location and area of the lands which are required to be occupied, used, or flooded in connection with the proposed works, described by section, township and range or by lot number, if in surveyed territory, and, if other than Crown lands, by the name of the registered owner in fee, of any registered mortgagee or lessee, and of any claimant in actual possession other than a registered owner, mortgagee or lessee; (i) a general report outlining and describing the plan by which the applicant proposes to develop the water privilege, setting out (i) the dams, weirs, tunnels, races, flumes, sluices, pits and other structures or works which it is proposed to build or make in connection therewith, (ii) the form in which the power developed is to be used, namely direct mechanical connection, generation of electricity or otherwise, and the purpose for which it is to be used, (iii) any contemplated sale, delivery or transfer of the power to other than the licensee, (iv) if the power is to be transmitted, the territory within which such sale, delivery or transfer is to be exercised, (v) the estimated demand for power within such territory, (vi) any other data necessary to a full understanding of the nature and objects of the undertaking, (vii) the natural height of the fall or rapid, (viii) the extreme high and low water levels at the power dam site and the power station site, and of all bodies of water proposed to be used as storage reservoirs, (ix) the flow of water in cubic feet per second at the high, low, and average stages, (x) the estimated capacity in horsepower of the fall or rapid in its natural condition at the average low stage of water, (xi) the area and available capacity of each proposed storage reservoir, (xii) the estimated percentage of stream flow to be made available from storage, (xiii) all other data necessary to a full consideration of the natural features of the site or sites of the proposed works, (xiv) the estimated total average effective head it is proposed to develop, (xv) the height and full description of any dams, or weirs, which it is proposed to construct, (xvi) the increase in the level of the water to be brought about, and the area and character of lands to be flooded by such dams or weirs, (xvii) the effective discharging capacity of such dams or weirs and the type of the proposed control works, (xviii) the length and full description of the proposed water conduits, (xix) a full description of the power station including the type, number and rated capacity of the waterwheels and generators proposed to be used, both in the initial and in the final development, (xx) the probable load factor of the power system, (xxi) the length in miles and a full description of all main transmission lines, and (xxii) all other data necessary to a full consideration of the proposed works; (j) the report mentioned in clause (i) shall in all cases be accompanied by preliminary estimates of cost; (k) copies of field notes of the entire survey of water conduits, transmission lines, exterior boundaries, powerhouse and reservoir sites, or of such parts thereof as the director may require, tied in wherever possible to the existing system of the Manitoba Land Surveys; (l) if there are other works already constructed or in course of construction in the neighbourhood of the proposed works, for diverting or using water from the same or tributary streams, the said plans shall indicate the location and give the distance from the proposed works, of the nearest of such other existing works both above and below the proposed works, and, if a power development, the normal elevation of the headwater and tailwater thereof, or if other than a power development, the elevation of the sill of the headgate or headgates, 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 proposed works; and if there are any other works or structures, such as bridges, railways, highways and canals, or any other public or private works whatsoever which might affect or be affected by the construction, maintenance or operation of the proposed works, the said plans shall indicate the location and set out the governing elevations of such other works or structures. 13 The plans shall be on tracing film and cut to a uniform size of 20 × 17 or 30 × 26 inches and be either printed or typed; and both plans and specifications shall be signed by a professional engineer of recognized standing in Canada, satisfactory to the director, and shall be filed with the director. Elevations wherever possible should be tied in to mean sea level datum. 1 1 See footnote to section 3. Information in regard to elevations can, in many cases, be obtained from the department. Priority permit 14(1) Upon the satisfactory submission by an applicant of such of the information referred to in section 3, and of the plans and specifications required in the preceding sections as will satisfy the director that the proposed development is in general accord with the most beneficial utilization of the stream waters, and that the proposed undertaking, as far as the preliminary consideration possible at this time enables the director to judge, is feasible and practicable and in the public interest, and that the applicant has the requisite financial ability to carry the project to a successful consummation, the minister may issue to the applicant a priority permit which shall give the applicant priority over the other applicants in the consideration of his or her general layout plans if filed within a specified time, to be set out in the permit. 14(2) In granting a priority permit, the minister may give preference to an application by a province or municipality if the minister considers such preference to be in the public interest. 15 The permit shall in no case be construed as binding the minister to issue an interim licence nor 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 resources or be otherwise more in the public interest. 16(1) A priority permit shall be effective for a period not to exceed one year unless renewed. 16(2) Extensions of the time fixed may not be granted unless it is shown to the satisfaction of the director by statutory declaration by the applicant, and otherwise, that the applicant has promptly and diligently continued the surveys and preparation of the said plans in good faith, and has been prevented by causes beyond his control, other than the want of funds, from completing the same within the time fixed, and in no case shall the applicant be given extension totalling more than one year from the expiry of the time originally fixed. 16(3) If the plans and information required are not completed and filed before the expiration of the said initial period or any such extension which is granted, the applicant's priority shall lapse. 17 If the director is of the opinion that further information than that set out in section 12 is necessary before an interim licence is issued, the director shall request the applicant to furnish that additional information. The interim licence 18 If the minister is of the opinion that the proposed works are of suitable design to accomplish the purpose intended, that the proposed development is feasible and practicable and will accord with the most beneficial utilization of the resources of the stream and that it is the best possible development, in the public interest, bearing in mind both present conditions and future requirements, the minister may, with the approval of the Lieutenant Governor in Council, issue an interim licence to the applicant for the said development. 19 Every interim licence for the development of a water power or storage undertaking under this regulation shall set out particulars and lay down requirements, insofar as applicable to the case, with respect to the following matters: (a) a recital stating (i) the name and address of the interim licensee and date of his or her application, (ii) the name and location of the power or storage site, a statement that lands of the province or waters are required to be used or occupied in carrying out the undertaking, and a brief description of the nature of the works and undertaking proposed for the development of the site, and a reference to any plans or data on file in which the said works and undertaking are more fully shown or described, (iii) the date of each permit and extension thereof which may have been issued in favour of the interim licensee and a statement whether the requirements thereof and of the regulation has been fully complied with by such interim licensee; (b) the date on or before which the interim licensee must file his or her general construction plans and specifications with the director for approval, which date may in no case be extended for more than one year; (c) the minimum expenditure which shall be made on the works within stated periods after the interim licensee has been notified by the director of the approval of the general construction plans and specifications; (d) the time within which an initial development of the site capable of producing and having available for beneficial use a stated minimum amount of horsepower measured on the turbine shaft, or in the case of a storage undertaking, capable of storing a specified quantity of water, shall be completed, such initial development in every case to represent substantial progress towards the completion of the entire development of the site as outlined in the plans approved by the department; (e) a general statement of the lands of the province which the interim licensee may, for the time being and subject to the provisions hereinafter set out, enter upon, use or occupy for making surveys and investigations and constructing works; (f) the amounts of stream flow, if any, which may be temporarily diverted, used or stored under the interim licence, pending the issue of a final licence; (g) the sum or sums to be paid as rentals or royalties for the lands occupied or the waters used during the life of the interim licence, and the times and the manner of the payment thereof; (h) the giving up of the possession and the transfer of any lands, works, and properties which may be required under the terms of sections 47 or 81, and the execution of the acceptance of the licence and of the undertaking required in conjunction therewith, as set out in section 82; (i) the amount of the bond or cheque, if any, required to be deposited by the interim licensee as security for the performance of the terms and conditions of the interim licence; (j) the issue in favour of the interim licensee upon the completion of his or her initial development and observance and fulfillment by the licensee of all the terms and conditions required by the interim licence and under this regulation to be by the licensee observed or fulfilled of a final licence for the use or storage of water, for the development of energy therefrom, for the utilization of such energy, and for the use or occupation of lands of the province, which, in the minister's opinion, are required for the proper maintenance and operation of the works; and a statement of the principal terms, which, subject to this regulation, will be embodied in such final licence when issued, including: (i) the maximum flow or quantity 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, under such final licence; and if storage is involved, the maximum capacity of storage permissible from time to time at each storage site; subject in either case to the control and regulation of the stream flow and of users on the stream as hereinafter provided, (ii) a brief description of the undertaking in respect of which such final licence is to be issued, including the use which may be made of the power or storage, whether power may be sold or delivered to or used by other than the applicant, and if so, the territory within which such sale, delivery, or transfer of the right of use may be exercised, (iii) the term of the final licence, (iv) the annual rental payable during the initial period of the final licence for waters used or stored and for the lands occupied, respectively, or for any other privilege granted, (v) the severance line agreed upon, (vi) any other special terms and conditions which may be imposed by the minister. 20 Every interim or final licence shall be deemed to incorporate and shall be subject to the provisions of the regulation in force at the time of the issue of the interim or final licence and to such other stipulations, provisos and conditions, as the minister may impose. General construction plans 21 Forthwith after the execution of any interim licence, the interim licensee shall commence and carry forward the preparation of the general construction plans and specifications of all the proposed works for the development of power or storage at the site in question, and for the utilization of the said power or for its transmission and distribution as the case may be, and the interim licensee shall complete and file the plans with the director within the time specified in the interim licence. 22 The plans and specifications referred to in section 21 shall be in the form ordinarily prepared for submission to construction contractors for the purpose of receiving tenders, and that would enable such contractors to proceed with construction preparations and the design of final detail construction plans and shall be in sufficient detail to satisfy the director. 23 The said plans shall be on tracing film, and cut to a uniform size of 20 × 17 or 30 × 26 inches, the said specifications shall be either printed or typed, and both plans and specifications shall be signed by a professional engineer of recognized standing in Canada satisfactory to the director, and shall be filed with the director. Plan of lands 24(1) The interim licensee shall, at such time as shall be fixed by the director, supplement the general construction plans of the works by a plan of lands from an actual survey by a Manitoba Land Surveyor whose appointment shall have been approved by the Director of Surveys. 24(2) A plan of lands referred to in subsection (1) 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 are required to be occupied or used in the construction, maintenance and operation of the proposed works, noting separately (a) lands of the province not covered by water required for main diverting works, powerhouses, and similar works; (b) lands of the province covered by water required for the said purpose; (c) lands of the province required only to be flooded in connection with the storage or pondage of water; (d) lands of the province required only for rights of way for water conduits, transmission lines, and similar works; (e) lands of the province, if any, required for substations, distributing stations, terminal stations, and similar works; and (f) privately owned lands. 24(3) Before any survey referred to in subsection (1) is proceeded with, instructions therefor must first be obtained from the Director of Surveys. 24(4) The plan referred to in subsection (1) 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; and (c) any claimant in actual possession other than a registered owner, mortgagee or lessee. 24(5) If so required by the director, the surveys and investigations required by this section shall be made by a surveyor of the department and in such case the interim licensee shall reimburse His Majesty for all salaries and expenses paid for such surveys upon the presentation to the interim licensee of accounts for the same certified by the department. Approval of plans 25(1) The director shall examine the general construction plans and specifications of the works, and the plan of lands as soon as possible after they have been filed, and shall report thereon to the minister, and shall notify the interim licensee in writing 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 approved, or whether the plans have been rejected, and the interim licence cancelled. 25(2) In case the interim licensee has filed the plans required in complete form and has not been notified in regard thereto within six months as provided in subsection (1), such plans shall be considered as approved upon the expiry of the said six month period and the licensee shall be permitted to proceed with the works provided he or she previously advises the director. 25(3) Departmental approval or non-approval of any plans shall neither incur the responsibility of the Crown nor relieve the interim licensee from the consequences which may result from the construction of the works, from imperfections in departmental requirements or from the operation of the works. Commencement of construction 26(1) The interim licensee shall not commence the actual construction of the proposed works until after being notified as provided in subsection 25(1) that his or her general construction plans and specifications have been approved either with or without conditions by the department, except as he or she is authorized to do under subsection 25(2) but, if considered necessary by the director to facilitate preliminary construction operations such as the clearing of site for structures, or the clearing of land that will be flooded, or any other work other than the actual construction of the permanent works, permission may be extended to an interim licensee for such operations prior to the approval of the general construction plans, without prejudice to any action by the department on the general construction plans. 26(2) Within six months after receiving such notification, or within six months after approval obtained as described in section 25(2), the interim licensee shall commence the construction of the said works and shall thereafter without interruption, except such as may be occasioned by act of God or other major cause beyond the control of the interim licensee, other than want of funds, carry on and complete the construction of the said works according to the plans and specifications as so approved, and subject to the terms of the interim licence and of this regulation. Annual deposit by interim licensee 27(1) In the period commencing with the date of the interim licence and extending to the date of the construction guarantee fund hereinafter required, the interim licensee shall, in the case of a power undertaking make an annual deposit with the department computed on the horsepower capacity of the site as determined by the director, according to the following scale: Each H.P. up to 1,000 H.P.: - 40¢ Each of the next 9,000 H.P.: - 20¢ Each H.P. over 10,000 H.P.: - 10¢ 27(2) In the case of a storage undertaking the annual deposit shall be computed on the estimated cost of the storage development as determined by the director, according to the following scales: (a) 1% on the first $100,000. of estimated cost; (b) 1/2% of the next $900,000. of estimated cost; and (c) 1/5% on the amount above $1,000,000. of estimated cost. 27(3) The annual deposit required under this section shall in no case exceed $10,000. and may be in the form of one or more cheques upon a chartered bank or banks approved by the department, and (a) the first such annual deposit shall be payable on or before the execution of the interim licence and shall be prorated to cover the then unexpired portion of the calendar year; (b) subsequent annual deposits shall be made on January 1st of each year in advance on the basis of the following table of annual and guarantee deposits: Horsepower Annual Deposit Guarantee Deposit $ 1,000. $ 400. $ 2,200. 5,000. 1,200. 6,000. 10,000. 2,200. 11,000. 20,000. 3,200. 16,000. 50,000. 6,200. 31,000. 88,000. and up 10,000. 50,000. 27(4) The said deposits shall be credited to the interim licensee as a part of the construction guarantee fund hereinafter specified in the event that the conditions required to be performed by him up to the time of the approval of his or her general construction plans are satisfactorily performed and shall be refunded to him or her in the event that, having satisfactorily performed the said conditions, he or she is notified by the director that his plans have been rejected and his interim licence cancelled; but the said deposits, or such part thereof as the minister directs, shall be forfeited to the Crown in the event that the interim licensee fails to prepare and file satisfactory working plans or otherwise fails to carry out the terms of the interim licence. Guarantee deposit 28(1) Within 60 days after being notified in writing by the director of the department's approval of the general construction plans and specifications, the interim licensee shall deposit with the department such sum as, together with the annual sums previously required to be deposited, totals the amount required by this section as a guarantee deposit fund for the purpose of guaranteeing the performance and fulfillment by the interim licensee of the terms and conditions of the interim licence. 28(2) The amount of the guarantee deposit fund shall in the case of a power undertaking be computed according to the horsepower capacity of the site as determined by the director, according to the following scale: Each H.P. up to 1,000: - $2. The next 9,000 H.P.: - $1. All over 10,000 H.P.: - 50¢ 28(3) In the case of a storage undertaking, the amount of the guarantee deposit fund shall be computed on the estimated cost of the storage development as determined by the director, according to the following scale: (a) 5% on the first $100,000. of estimated cost;

(b) 2 1/2% on the next $900,000. of estimated cost; and (c) 1% on the amount above $1,000,000. of estimated cost. 28(4) The guarantee deposit required under this section shall in no case exceed $50,000. and may be in the form of one or more cheques upon a chartered bank or banks approved by the department. 28(5) The minister may refund the said deposit to the interim licensee as the actual construction work progresses, the first, second, and third quarters thereof to be refunded when one-fourth, two-fourths, and three-fourths, respectively, of the initial development have been satisfactorily completed, the forth quarter to be refunded when the final licence is issued. 28(6) In the case of storage developments, the amount of annual deposit and guarantee deposit required for varying costs of development shall be as follows: Cost Annual Deposit Guarantee Deposit 100,000. $ 1,000. $ 5,000. 500,000. 3,000. 15,000. 1,000,000. 5,500. 27,500. 2,000,000. 7,500. 37,500. 3,000,000. 9,500. 47,500. 3,250,000. and up 10,000. 50,000. 28(7) The interim licensee shall present to the department such evidence of the satisfactory progress in works to the stage required in compliance with the terms of his or her licence, in the form of a statutory declaration or otherwise as may be required. 28(8) The minister is to be the final arbiter on the question of the satisfactory completion of the first one-fourth of the said initial development, but if any dispute arises respecting the satisfactory completion of any subsequent fourth, the matter shall be referred to the court. 28(9) If the general construction plans submitted by the interim licensee are finally rejected and his or her interim licence cancelled, while the interim licensee has nevertheless complied with all requirements in filing the plans, his or her guarantee deposit shall be refunded, and the minister, upon a report by the director, may make such provision as the minister considers just for compensating the interim licensee for the plans should they prove to be valuable in connection with the disposition which is eventually made of the power site. 28(10) If the interim licensee has failed to comply satisfactorily with the terms of the interim licence, the guarantee deposit fund or such part thereof as the minister or the court, as the case may be, may determine shall be forfeited to the Crown. Rights in lands under interim licence 29(1) Only such interim rights of entry upon or use or occupation of any lands of the province shall be acquired under any interim licence executed under this regulation as may, in the opinion of the minister, be necessary for the purpose of making surveys, preparing plans, constructing works and otherwise carrying out the terms of the interim licence and in no case shall the rights granted by any interim licence be construed to interfere in any way with any interest in lands of the province previously disposed of by the Crown. 29(2) The minister may, from time to time, as plans and information are filed showing the extent and scope of the works and undertaking of the interim licensee with greater precision than was possible when the interim licence was executed, and pending the execution of the lease hereinafter mentioned, designate, allot, amend and limit the areas of the lands which the interim licensee is permitted to enter upon, use or occupy, and the minister's decision on the above matter shall be final. 30 The minister shall, at the time of approving the plans, or as nearly thereafter as is found feasible, designate in writing the lands with respect to which the powers of expropriation conferred by section 9 of The Water Power Act may be exercised, and the interim licensee shall in no case exercise such powers of expropriation until the lands are so designated nor with respect to lands other than those specified. Change in plans 31 Before making any material change in the general construction plans as approved, or in the works constructed or under construction in pursuance of his or her licence or in the location thereof authorized, the interim licensee shall submit a complete and satisfactory statement and plans of such proposed change to the director, and shall not proceed to carry out the change until authorized. Inspection and reports 32 The minister, the director, or any engineer or person authorized by either for that purpose shall have free access at all times to all parts of the lands being occupied or of the works being constructed by any interim licensee for the purpose of ascertaining whether the terms and conditions of the interim licence are being satisfactorily carried out by the interim licensee, and in particular whether the construction of the works is in accordance with the plans and specifications approved, and for the purpose of checking and taking note of construction cost data, for which purpose the contractor or any subcontractor shall give the person so authorized for the purpose access to figures at all reasonable times. 33(1) The director, if he or she considers the undertaking of sufficient importance, may place a qualified inspecting engineer on the work during construction and may also, if he or she considers it necessary, retain a consulting engineer for advice in connection with the plans or works of the interim licensee. 33(2) The licensee shall reimburse His Majesty on or before the first day of January in each year for all sums paid for salaries and expenses in respect of the said undertaking on behalf of the inspecting engineer, on statements of the sums so paid being submitted by the department from time to time and, in like manner, the licensee may also be called upon, at the discretion of the minister, to reimburse His Majesty for all or part of sums paid for fees and expenses of the consulting engineer. 33(3) The interim licensee shall abide by, conform to and carry out all reasonable written instructions of the inspecting engineer regarding the construction of all works in accordance with the plans and specifications approved, and, in the case of dispute regarding the reasonableness of such written instructions or regarding the requirements of the plans and specifications, the minister's decision shall be final and conclusive, and, in case the interim licensee does not abide by or conform to and carry out the said written instructions of the inspecting engineer, the minister may cause the interim licensee to suspend all operations with respect to works until the minister gives instructions to resume, and in the case of continued refusal by the interim licensee the minister may cancel the interim licence. 34 The interim licensee shall submit such reports of progress during construction of the works as the director may from time to time require. Final construction plans 35(1) Within 90 days after the completion of the initial development in accordance with the general construction plans or with any authorized changes therein, and within 90 days after the completion of any additional unit of the power development or of the power system, the interim or final licensee, as the case may be, shall file with the director copies of the final construction plans. 35(2) The final construction plans, together with drawings and specifications accompanying them, shall show the works as actually constructed in such detail as would be required to be given to construction contractors for the purpose of constructing the works and shall show the precise areas of lands occupied so as to satisfy the requirements of section 24. 35(3) The said plans shall be on tracing film, and shall conform to the sizes specified in clause 3(l); the said specification shall be either printed or typed, and both plans and specifications shall be signed by a professional engineer of recognized standing in Canada satisfactory to the director, and shall in other respects satisfy the requirements of the director. 35(4) In no case shall the interim licensee be entitled to the issue of a final licence until the requirements of this section have been complied with insofar as they relate to the initial development. Fixation of construction costs 36(1) Upon completion of the initial development and upon the completion of any substantial addition thereto, a sum shall be fixed which shall represent the actual cost of such development or of such addition, or both, and in the event that the minister and the interim or final licensee, as the case may be, cannot agree upon the sum within 90 days after the completion of the development or of additions, or both, or within 90 days after the purchase of any lands or rights of way within the severance line, the minister shall refer the matter to the court for determination. 36(2) In no case shall a final licence be issued to the interim licensee until such licensee has fully complied with the provisions of this section insofar as they relate to the completion of the initial development. 36(3) For the purpose of determining whether the interim licensee's progress in constructing works has been sufficient to comply with the terms of the interim licence and of this regulation, or for determining whether any part of the interim licensee's guarantee deposit is repayable as provided in section 28, or for any other purpose, the minister may require that the actual cost of such part of the initial development as has been constructed up to a certain date shall be established, and in such case the interim licensee shall promptly submit all figures and data in his possession, and a sum shall be fixed to represent the cost of such part in the same manner as provided in subsection (1) for fixing the cost of the entire initial development; and no part of the interim licensee's guarantee deposit then claimed to be repayable shall be refunded until the requirements of this section shall have been fully satisfied; and the minister shall not require any such determination of the cost of construction more often than once in each calendar year. Operation under interim licence 37(1) In the event that the works are put into operation before the issuance of the final licence, the interim licensee shall, pending the issuance of such final licence and until otherwise agreed upon, maintain and operate the same to the satisfaction of the director 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 director and shall abide by all reasonable regulations which may from time to time be promulgated by the minister for the control of the flow of any waters for general conservation purposes. 37(2) The interim licensee shall in such case pay for any water used in the development of power prior to the issuance of the said final licence, such sum or such rate per horsepower as the minister may determine. 38 In addition to any obligations specially imposed upon interim licensees in this part of this regulation, every interim licensee shall, insofar as his or her position with respect to the use and occupancy of lands and waters of the province, or the maintenance and operation of his or her works or the carrying on of his or her undertaking for the time being is similar to that of a final licensee, and subject to section 37, observe and comply with all the provisions of this regulation applicable to final licensees. Amending interim licence 39 Subject to this regulation the terms of any interim licence may be amended by a supplementary licence entered into between the minister and the interim licensee, and plans and specifications previously approved may be amended with the consent in writing of the minister, but any such amendment shall affect only the portion specifically covered in such supplementary licence 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 interim licence. Extension of time 40(1) Notwithstanding section 39, no extension of the time fixed in any interim licence for the filing of the general construction plans, or for the commencement of construction, or for the expenditure of the sums required to be expended within any stated period, or for the completion of the initial development, may be granted to any interim licensee unless the minister is satisfied, after report in writing from the director, that the interim licensee has been prevented by engineering difficulties that could not reasonably have been foreseen or by other peculiar and special causes beyond his or her control other than the want of funds, from completing the said requirement within the time stated, and then only upon the passage of an order by the Lieutenant Governor in Council approving of the said extension. 40(2) The maximum extension which may be granted in any case for the filing of the general construction plans, or for the commencement of construction work, or for the expenditure of the sums required under the interim licence within the first and second years respectively of the construction period, or within such other stated times as are specified in the interim licence, shall be 12 months. 40(3) On the expiry of the 12 months referred to in subsection (2), or upon the expiry of the time originally allowed if no extension has been granted, the director shall report in writing to the minister whether the interim licensee has satisfactorily performed the specified requirement, or whether he has failed to perform the same. 40(4) In the event that the minister after considering the report referred to in subsection (3) is satisfied that the interim licensee has failed to perform satisfactorily the said requirement, the minister shall thereupon cancel the interim licence. 40(5) The time required by the interim licence for the completion of the initial development shall in no case be extended by the Lieutenant Governor in Council, unless it is shown by report in writing signed by the director that the interim licensee has satisfactorily completed the construction of a substantial part of the initial development within that time, and no second or subsequent extension of time shall be granted unless it is shown by report of the director in writing that the interim licensee has completed within the extension period previously granted a further substantial part of the initial development. 40(6) If by reason of any of the special causes referred to in subsection (1), the interim licensee desires an extension of time to complete the requirements within the time stated, the interim licensee shall make application to the director in writing, giving reasons for the desired extension, and if no order in council authorizing an extension of time has been passed within three months after making such application, he or she shall be allowed 30 days in which to bring the matter to the attention of the minister, and the minister may thereupon institute an inquiry by the director or by such other officer, board, or person as the minister may designate or appoint, and take such action after considering that inquiry's report the minister as he or she considers just. In the event that the director has not submitted the said report and the interim licensee fails to bring the matter to the notice of the minister within 30 days, the interim licence shall automatically become null and void. Penalties for default by interim licensee 41(1) If the interim licensee fails to file satisfactory general construction plans within the time required, or fails to commence the actual construction of the initial development in good faith within the time required under the interim licence or fails to make substantial and satisfactory progress in the first year of the period allowed for the construction of the initial development, the minister shall cancel the interim licence. 41(2) If the interim licensee fails (a) to expend on the initial development within any of the periods specified in the interim licence the amount required; (b) to complete the initial development within the time specified in the interim licence; or (c) to comply with any other term or condition of the interim licence or of this regulation; then the minister may, after considering the report and hearing referred to in subsection (3), cancel the interim licence or take such other action or make such other order as he shall deem suitable. 41(3) The minister may make an order under subsection (2) after (a) a full report has been made on the matter by the director; (b) 60 days notice has been given to the interim licensee; and (c) the interim licensee has had an opportunity to be heard before such board or commission, whether departmental or otherwise, as the minister may appoint or designate. 41(4) If a failure as described in subsection (1) or (2) occurs after the licensee has expended on the initial development one-fourth of the total amount that the licence requires shall be expended, the interim licensee may appeal from the decision of the minister to the court. 41(5) One or more of the following courses of action may be taken by the minister, or the court after the report has been considered and the hearing has been held under subsection 41(3), namely: (a) the interim licensee may be ordered to perform specifically one or more of the conditions imposed by the interim licence; (b) the interim licensee may be ordered to pay to the Crown a sum by way of liqiudated damages for the past failure to perform the terms imposed by the interim licence; (c) the interim licence may be cancelled, and the interim licensee may be granted priority over all other applicants for entering into a new interim licence with His Majesty for the development of the site in question, but each new licence and any further concessions made in favour of the interim licensee shall date from the date of the original interim licence and shall in all other respects be made subject to and shall be deemed to incorporate, insofar as applicable, the provisions of the waterpower regulation in force at the time of the execution of such new licence, or which may thereafter be put into force and are not inconsistent with the terms of his original interim licence; (d) if an interim licence is cancelled under this section (i) by the minister, and in the opinion of the minister the interim licensee is entitled to compensation for any works constructed on lands of the province or for any plans filed by the interim licensee in pursuance of the interim licence, the minister may make any provision which the minister considers proper for arriving at or securing the payment of that compensation, or (ii) by the court, the court may make any order in regard to compensation of the interim licensee for the plans or works referred to in subclause (i) as it deems just, and in arriving at such compensation, the minister or the court, as the case may be, shall consider the detriment occasioned to the public interest by reason of the default or failure of the interim licensee, and the said compensation, if any, shall in no case exceed the actual cost of such works or plans determined in accordance with section 36, nor shall the compensation exceed that which would be determined by applying the principles set out in subsection 47(3). 41(6) In the event that the interim licence is cancelled under the terms of this section and the interim licensee is not granted a new interim licence as referred to in clause 5(c), the minister may make any disposition of the lands of the province and works thereon and formerly occupied or constructed by the interim licensee pursuant to the terms of the interim licence as the minister may consider suitable. 41(7) If any interim licence is cancelled under the terms of this section, the rights of His Majesty with respect to the possession, occupation and use of any lands, works, structures, equipment or properties other than lands of the province and works located thereon, then owned or held by the interim licensee and used or occupied in connection with the undertaking to which the interim licence relates, and the compensation to be paid for any such other lands, works, structures, equipment and properties shall be as set out in section 47. Completion of works by interim licensee 42(1) As soon as the interim licensee has completed the initial development and otherwise fulfilled the terms of the interim licence, he or she shall file in the office of the director written notice of such completion and fulfillment in the form supplied by the director. 42(2) Subject to subsection (3), the director shall thereupon cause an inspection, and if necessary a survey, of the works constructed or used and of the lands and waters used or occupied in connection with the undertaking to be made. 42(3) In those cases where the director considers inspection unnecessary, the director may require the interim licensee to file not later than 60 days after the expiry of the time fixed for such completion, proof of the said completion and fulfillment by a statutory declaration in an approved form, which shall be supplied by the director on request. 42(4) Upon compliance on the part of the licensee with subsections (1) to (3), the director shall determine a date which, for the purposes of this regulation, shall be the date of completion of the initial development. Issuance of final licence 43(1) Upon the completion of the initial development according to the plans previously approved, and upon fulfillment and compliance otherwise with all the terms and conditions of his or her interim licence and of this regulation, the interim licensee shall be entitled to a final licence authorizing one or more of diversion, use, or storage of water at the site in question, for the development of energy therefrom, for the utilization of such energy, for the occupation or use of the lands of the province or whichever one or more of these is, in the minister's opinion, required for the proper maintenance and operation of the works. 43(2) It shall be optional with the minister to issue the licence covering the rights granted with respect to the diversion and use of the waters and with respect to the occupation and use of the lands which are to be granted in the form of two or more separate indentures, but if such separate indentures are issued, they shall be executed concurrently, and the terms and conditions of each such indenture shall be considered to be incorporated in all, and non-compliance with any term or condition in any such indenture shall be taken to be non-compliance with the terms and conditions of all. 43(3) Upon the issuance of any final licence all rights held and obligations assumed under the interim licence shall cease and determine. 44 The final licence shall embody the terms which were set out in the interim licence for incorporation into such final licence, and such other terms and conditions, as the minister may impose, including insofar as applicable, the following particulars: (a) a recital clause giving: (i) the name and address of the licensee, (ii) the name and location of the power site, with particular reference to the waters of the province whose use is required in its development, and (iii) a reference to the interim licence which authorized the construction of the works and any amending licence issued, and a statement whether or not the conditions thereof have been fully complied with; (b) the maximum flow or quantity 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, under the licence, and, if storage is involved, the maximum capacity of storage permissible from time to time at each storage site, subject in either case to the control and regulation of the stream flow and of storage in the interests of all the users on the stream as hereinafter provided; (c) a statement setting forth clearly the position and extent of the works authorized to be maintained and operated under the licence and a reference to the final construction plans which include sketches, maps or plans in which the position and extent of the said works are more particularly shown, copies of which may be attached to the licence, but the originals of which shall remain on file in the department, including (i) the place of diversion or use in the stream and the course of the stream at the said place, and (ii) all principal works for diverting, conveying, storing or using the water or the power developed therefrom; (d) an accurate description of the lands of the province which may be entered upon, used or occupied for the maintenance and operation of the works, setting out separately lands in any of the following classes: (i) lands of the province not covered by water required for main diverting works, powerhouses, and similar works, (ii) lands of the province covered by water required for the said purposes, (iii) lands of the province required only to be flooded in connection with the storage or pondage of water, (iv) lands of the province required only for rights of way for water conduits, transmission lines, and similar works, and (v) lands of the province, if any, required for substations, distributing stations, terminal stations, and similar stations; (e) a brief description of the undertaking in respect of which the licence is issued, including the use which may be made of the power, whether the power may be sold or delivered to or used by other than the licensee, and if so the territory within which such sale, delivery or transfer of the right of use may be exercised; (f) the annual rental payable during the initial period of the licence for waters used or stored and for the lands occupied respectively or for any other privileges granted, and the times when payable; (g) the severance line agreed upon. Term of licence 45(1) Every licence shall be limited to such term not exceeding 50 years from the time fixed in the original interim licence for the completion of the initial development, as may be agreed upon between the minister and the licensee. 45(2) At any time after 30 years from the time fixed for the completion of the initial development, upon 12 months notice to that effect having been given by the minister to the licensee, His Majesty may repossess the works, lands, and properties of the licensee, paying compensation in accordance with the principles set out in section 47, except that the minister or the court, as the case may be, may, in valuing the power development, add to the amount determined in accordance with subsection 47(3) a bonus equal to 3/4% of such amount for each and every full year of the unexpired term of the licence, but in no case shall such bonus be less than 5% of such amount, and in valuing works and lands outside the severance line the minister or the court may increase the bonus as provided in subsections 47(8) and (9) to an amount not exceeding 20% of the physical value of the works nor exceeding 20% of the actual cost of the lands. Renewal or termination 46(1) Not less than four nor more than six years prior to the termination of any licence, the licensee may apply in writing for an extension of rights held under such licence, and applications may also be filed with the director by any persons looking to the future utilization of the site to which the licence applies. Any application for this purpose including the application for renewal of the licence shall be in such form and contain such statements and information as will satisfy the laws and regulations then in force, and such application for renewal by the licensee shall in every case be accompanied by a suitable undertaking on the part of the licensee that he or she will comply with all the said laws and regulations. 46(2) Upon the filing of such application for renewal and undertaking, the licensee will be given preference over other applicants for a licence to use and occupy the waters and lands in question during a further term, if the licensee has complied with all the requirements of his or her licence and of the regulation from time to time in force to the satisfaction of the minister and if the proposed use and development of the site is at least as desirable in the public interest as that of any other pending applicant. 46(3) After the termination of the two year period referred to in subsection 46(1), and after such public hearing as the minister may consider necessary, the minister shall determine, in view of all applications then pending for the future occupation and use of the waters and lands in question, including the application for renewal, if any, of the licensee, what future disposition shall be made of the waters and lands. 46(4) If some disposition of the said waters and lands other than a licence to the licensee for a further term is decided upon, the minister shall give the licensee not less than three years notice in writing, hereinafter called "notice of termination", that from and after the expiry of his licence or from and after such subsequent date as is fixed by the minister, all further rights of the licensee with respect to the occupancy and use of the waters and lands shall determine, and from and after such expiry or from and after such subsequent date, as the case may be, all the said rights shall absolutely cease and determine without further proceeding. Works and lands within the severance line 47(1) Upon the expiry of the final licence or upon the expiry of the time fixed in the notice of termination, as the case may be, the power development shall become the property of the Crown, and the minister, or such person as the minister may designate, may immediately enter upon, possess, occupy, operate and control the same. 47(2) In the event that the minister and the licensee are unable to agree upon the compensation to be paid for the power development within one year after notice of termination has been given, either party may refer the matter to the court. 47(3) Compensation for the power development shall be arrived at by first taking the figure previously fixed in accordance with section 36 as the actual cost of the development, then adjusting this figure so as to make allowance for any variation in the purchasing power of a dollar as shown by the official trade index or other official statistics most applicable to the case in hand, and finally deducting an amount equivalent to the actual loss in value of the development due to its physical or functional depreciation or to other causes. Works and lands outside the severance line 47(4) If the minister desires to take over further works and lands outside the severance line in addition to the power development, but within the power system, and cannot come to an agreement with the licensee concerning the extent thereof within one year after the notice of termination has been given by the minister, the minister may refer the matter to the court. 47(5) The minister or the court, as the case may be, in determining the extent of such further works and lands within the system which may be taken over, shall consider whether or not such works and lands or any part of them are more tributary to the water power development than to the licensee's remaining undertaking or undertakings, the severance losses which would be suffered by both parties, the public interest, and such other factors as the minister or the court considers relevant, and shall make the most equitable determination possible in all the circumstances; and the court may require that the whole or none of any specified unit of such works and lands must be taken over. 47(6) Upon the judgment of the court being given but not before the expiry of the time mentioned in the notice of termination, His Majesty may assume immediate possession and control of all the lands and works which the court has designated, but compensation shall be paid for the same as hereinafter provided. 47(7) In the event that the extent of works and lands to be taken over outside the severance line has been definitely determined as provided in the preceding subsections but the minister and the licensee are unable to agree upon the compensation to be paid for the same within one year after the determination of the said extent, either party may refer the matter to the court. 47(8) The minister or the court, as the case may be, in determining the compensation to be paid for the works shall first fix a sum representing, in the minister's or the court's opinion, their then physical value, considering either first cost, replacement cost, or any other similar criteria, but excluding good will, going concern, franchise value, severance damages and other intangible elements of a like nature, and the minister or the court may then add to that sum an amount not exceeding 10% thereof for the purpose of covering such severance damages as is considered just. 47(9) The minister or the court, as the case may be, in determining the compensation to be paid for the lands shall first take as the basis of such compensation the amount previously established as their actual cost in accordance with subsection 36(1), shall next make an allowance for the variation in the purchasing power of a dollar as provided in subsection (3), and may, in the minister's or the court's discretion, add to the result so determined a bonus not exceeding 10% to cover such severance and other intangible values as is considered proper to allow under the circumstances. Licence rentals 48(1) Subject to subsection (2), rentals are payable under this section from the date fixed in the original interim licence for the completion of the initial development, whether or not it is completed. Extension granted by minister 48(2) If the minister grants an extension of time under section 40 for the completion of the initial development, the minister may defer the commencement of the rentals payable under this section until the date fixed by the minister under the extension so granted. Rental periods 48(3) A licensee's first rental period shall end on December 31 of the calendar year in which it began and each subsequent rental period shall be the calendar year or part of the year during which the licence is in force or the licensee continues operations. Land use rental rates 48(3.1) A licensee shall pay rent for the use of Crown lands occupied for water power purposes under a license issued under the Act or a regulation at the annual rate of $1.80 per acre. Water use rental rates 48(3.2) A licensee shall pay rent for the use of water under a licence issued under the Act or a regulation, (a) in the case of a licensee with a total capacity of 268,096 horsepower or more, at an annual rate equal to the greater of (i) the horsepower capacity of the licensed installation during the year, multiplied by $4.065, or (ii) the horsepower year output of the licensed installation during the year, multiplied by $10.16; and (b) in the case of a licensee with a total capacity less than 268,096 horsepower, at an annual rate equal to the greater of (i) the horsepower capacity of the licensed installation during the year, multiplied by $3.96, or (ii) the horsepower year output of the licensed installation during the year, multiplied by $9.90. Land use rental statement 48(3.3) On or before November 30 of each year, the director shall prepare and provide to each licensee a statement of the land use rent payable by the licensee for the ensuing rental period. Water use rental statement 48(3.4) A licensee shall, on or before March 1 following each rental period, submit all data required by the director for the determination of the annual water use rental for the rental period. On receipt of the required data, the director shall without delay prepare and provide to the licensee a statement of the water use rent payable by the licensee for the rental period. Time of payment of rentals 48(3.5) The rent for each rental period is payable (a) in the case of land use rental, on January 2 of the rental period; and (b) in the case of water use rental, within 60 days after receipt of the director's rental statement for the year for the rental period. 48(4) If any rentals are not paid on or before the latest date when they are payable, 10% of the amount of such rentals shall be added and the total amount shall bear interest compounded annually at 8% from that latest date until paid. 48(5) The rentals together with any amount added pursuant to subsection (4) shall be the first lien or charge upon the water power development, property, assets, rents and revenues of the licensee. 48(6) If any rental remains unpaid for more than one year after the latest date when it becomes payable, the licensee shall again be given notice thereof, and if not paid within 60 days after such notice has been given, the minister may, at his or her option (a) sue in a court for the amount thereof together with the 10% added by way of penalty and interest as above provided, as a debt due to His Majesty, and the production of a written statement by the minister of the sums so payable shall be prima facie evidence of such debt, and to supplement such action by garnishment proceedings against any persons indebted to the licensee for the purchase of electrical energy or other product of the undertaking, or by proceedings to foreclose the lien referred to in subsection 48(5); or (b) take or institute such action as is provided for general cases of default under this regulation as set out in section 81. 48(7) The acceptance of rental in any case shall not be or be considered to be a waiver of any of the terms or conditions which have been accepted by the licensee. 48(8) [Repealed] M.R. 168/95 48(9) For the purposes of this section, (a) the output shall be taken as the total horsepower years developed during the year on the turbine shaft and shall apply not only to hydro-electric generating stations but also to water power plants other than electrical; and (b) one horsepower-year shall be taken as the equivalent of 6535 kilowatt-hours; and the output at the turbine shaft shall be assumed to be the equivalent of 107 1/2% of the output as recorded at the generator switchboard. 48(10) The director shall determine the output and for that purpose may use any available data, such as the switchboard records in the case of electrical plants. 48(11) Every licensee generating electrical energy, unless excused by the director in writing from compliance with this subsection, shall install an approved curve drawing recording wattmeter and shall preserve and produce for inspection all records made by such wattmeter. M.R. 213/89; 168/95; 197/2001 ; 77/2010 ; 140/2022 ; 21/2024 ; 27/2024 Rates to consumers 49(1) When, under the authority of paragraph 12(m) of the Dominion Water Power Act (Canada), a board or commission is designated, which, in a particular territory is to regulate the rates of licensees engaged in the sale, barter or exchange of hydroelectric energy, every such licensee shall immediately submit the schedule of rates under which he or she is then operating to such board or commission for adjustment and approval and shall thereafter before putting into effect any new schedule of rates and prices to be charged to consumers for power, submit the same for adjustment and approval, and no rates or prices for power shall thereafter be legal or enforceable until so submitted. 49(2) The board or commission may, on the complaint of any affected party or on its own initiative, require the submission or the resubmission at any time of existing schedules of rates and prices for adjustment and approval. 49(3) Rates and prices, when once adjusted or approved in accordance with this section, shall thereafter not be again revised within a period of five years, except by mutual consent of the revising authority and licensee. 49(4) Every licensee shall abide by and comply with the regulation and control of the service rendered and to be rendered by the licensee to consumers of power furnished or transmitted pursuant to the licence as may be prescribed from time to time by the board or commission referred to in subsection (1), and shall also abide by and comply with any orders of such board or commission respecting stock and bond issues. 49(5) Such board or commission may from time to time ascertain and determine and by order fix proper and adequate rates of depreciation on the several classes of property used or useful in connection with the undertaking of any such licensee, and the licensee shall set aside out of earnings and place in separately invested depreciation reserves such amounts as will conform to the rates so ascertained, determined and fixed. Such board or commission may also specify the purpose for which and the manner in which such reserves and the income arising from the investment thereof are to be expended. 49(6) Until such commission or board is designated to act in any particular territory, the powers of regulation and control set out in this section may be exercised by the minister. Limited rights in lands 50(1) Every licence shall be valid or effective to authorize the entry upon or use or occupation of any lands of the province only in the manner and to the extent and for the length of time as may be necessary for the purpose of constructing, maintaining and operating the works authorized to be constructed, maintained and operated under the licence. 50(2) If, because of a change in the location of the works, their non-use or abandonment, or for any other reason, continued or further entry upon or use or occupation of the lands in whole or in part for the purposes authorized by the licence becomes, in the opinion of the minister, unnecessary, the minister shall give the licensee written notice of the contemplated withdrawal of such lands and the reasons therefor, and (a) thereupon the parties may agree to withdraw the lands in whole or in part from the operation of the licence; or (b) if the minister and the licensee cannot reach a satisfactory agreement as regards the contemplated withdrawal within 60 days after the giving of the notice, the minister may refer the matter to the court for determination. 50(3) The court after hearing the matter may make an order withdrawing the said lands in whole or in part from the operation of the licensee. 51(1) Lands of the province required only for the purpose of flooding them, whether in connection with a storage reservoir or for regulating the flow of a stream or otherwise, shall be set out in the interim or final licence separately from lands required for other purposes, and no licence shall be valid to convey any further use of those lands than flooding them in such manner and to such extent and at such times as may be required for the purposes of the undertaking. 51(2) The flooding operations shall be subject to the direction of the minister as more particularly set out in section 72. 51(3) Every grant of a right to flood lands of the province in connection with any undertaking shall be subject to the right of His Majesty to grant additional liberty or privilege to any person for any purpose or in any manner to enter upon, use or occupy the lands, provided always that the rights of the interim or final licensee, as the case may be, shall not, in the opinion of the minister, be prejudicially interfered with by any such grant. 51(4) Every licensee shall, to the satisfaction of the minister, clear and keep clear, from timber, brush and other material, all lands which are to be flooded. 51(5) Lands flooded or to be flooded in connection with any undertaking shall not be fenced or otherwise enclosed unless and until the minister's consent in writing has been obtained. 52(1) Lands forming part of the bed of any stream, the use or occupation of which is required for the site, construction or the operation of authorized works, shall be set out in the interim or final licence separately from lands required for other purposes, and no interim or final licence shall convey any exclusive right in or to the use or occupancy of such lands, or any further right than may be required from time to time for the actual construction and operation of the works. 52(2) Every grant of a right to use or occupy any lands of the province forming part of the bed of any stream shall be subject to the right of His Majesty to grant additional liberty or privilege to any person for any purpose or in any manner to enter upon, use or occupy the said lands if (a) the rights of the licensee shall not be prejudicially interfered with by any such grant; and (b) the minister gives the licensee notice of the intention to grant such additional liberty or privilege, and an opportunity to be heard. 53 Lands of the province required only for rights of way for transmission lines, for water conduits, or for any other purpose necessitating the use of only a narrow strip of those lands, (a) if inside the severance line agreed upon, shall be set out in the interim or final licence separately from lands required for other purposes, and the interim or final licensee, as the case may be, shall not acquire under any such interim or final licence any rights to the use or occupation of those lands beyond what may be required from time to time for the purpose of construction, maintaining and operating the transmission lines or water conduits or for otherwise carrying out the purposes specified in the interim or final licence, and the minister shall be the sole judge of the extent of these requirements. Every such right shall be subject to the right of His Majesty to grant additional liberty or privilege to any person for any purpose or in any manner to enter upon, use or occupy the said lands, but the right of the interim or final licensee shall not be prejudicially interfered with by any such subsequent grant, and the minister shall give the said licensee notice of his or her intention to make such grant and an opportunity of being heard; (b) if outside the severance line agreed upon, may be granted to the interim or final licensee by licence of occupation or in fee as the minister, with the approval of the Lieutenant Governor in Council, may determine, but in the event of the taking over of the undertaking or works of the interim or final licensee in pursuance of this regulation or of The Water Power Act , the interim or final licensee shall not be entitled to receive an amount of compensation for the said rights of way greater than the amount which would be established in accordance with the provisions of subsection 47(9). Care of lands 54(1) The interim or final licensee shall at all times maintain the lands, works and property held or used by the licensee in respect of his or her licence in a manner satisfactory to the minister, including the maintenance of all flooded or other areas in a sanitary condition and the improvement of the lands from the point of view of landscape architecture, and shall do all in his or her power to protect the lands and the interest of the Crown therein against injury by anyone engaged on or about the works, or by any other person. 54(2) Every interim or final licensee shall do everything reasonable within his or her power, both independently and on request of the minister to prevent and suppress fires on or near the lands to be occupied under the licence. 54(3) For the purpose of limiting the spread of fires or for other reasonable purposes, every interim or final licensee shall clear and keep clear the lands of the province along his or her transmission lines for such width and in such manner as the minister may direct.

54(4) Every interim or final licensee shall, to the satisfaction of the minister, dispose of all brush, refuse or unused timber on lands of the province resulting from the construction and maintenance of the works, and shall keep the lands covered by his or her licence clear of unnecessary combustible material at all times. 55 The minister, the director, or any person so authorized by either of them may at all reasonable times enter upon the lands of the province covered by any licence to examine the condition of those lands. 56 Every interim or final licensee shall protect all telephone, telegraph and power transmission lines in existence prior to the construction of his or her own lines where crossed by or in close proximity thereto to the satisfaction of the director or competent provincial authority if any, and shall operate, maintain and render safe to the public his or her own transmission, telephone and other lines to the satisfaction of the director or the said authority if any. 57(1) Except as expressly provided in this regulation, the interim or final licensee shall not erect any buildings or structures whatever upon any lands of the province without first submitting plans thereof to the director and securing the director's approval for such building or structure and the site thereof. 57(2) Any temporary buildings or structures required in cases of emergency to facilitate the work of construction and erected without permission shall be entirely removed to the satisfaction of the director as soon as the requirement ceases or within one month of receiving written notice. 58 No roads, trails, telephone lines, buildings or other improvements that are the property of the Crown shall be removed, altered or in any way affected by any interim or final licensee in the construction or operation of his or her works, without the minister's consent in writing having been first obtained, and except upon such conditions as the minister by such writing may impose. The minister, if the minister considers it necessary, may require the licensee to furnish a bond for the satisfactory carrying out of the provisions of this section. 59 Any lands desired by an interim or final licensee for subdivision for townsite or other purposes shall be set out in the application, interim or final licence separately from lands required for other purposes connected with the undertaking, and the promotion of any such townsite shall be subject to the approval of the minister and to such conditions with respect to town planning, landscape architecture and sanitation as the minister may impose. 60 Every interim or final licensee shall pay stumpage and royalty for any merchantable timber cut or removed from any forest reserve in the amount as may be fixed by the regulation governing the administration of forest reserves, and for any such timber cut or removed from any lands of the province other than forest reserves, as may be fixed by the regulation governing the granting of yearly licences and permits to cut timber on the lands, but the minister may remit the fees in respect of timber required to be removed from any water power site or lands to be flooded. 61 Any authority granted under this regulation for entry upon, or for the use or occupation of lands situated within any forest reserve or park shall, notwithstanding any provisions of this regulation, be subject to the careful observance by the interim or final licensee of the provisions of any regulation relating to forest reserves and parks, and also of any conditions which the minister may, from time to time, impose with respect to the care, upkeep and management of such forest reserve or park. Works, maintenance, and operation 62(1) The licensee shall at all times install and use first class, modern, standard works, plant, and equipment, giving consideration to their requisite suitability of design, safety, strength, durability, efficiency, and all other relevant factors whatsoever, and shall maintain the same in good repair and condition, and shall exercise all due skill and diligence so as to secure satisfactory operation thereof. 62(2) The minister may give the licensee written instructions concerning the carrying out of subsection (1), but the matter of the reasonableness of such written instructions shall be subject to appeal to the court. 63(1) The minister, the director, or any person appointed by either for the purpose shall have free access to all parts of the works, lands and properties of the licensee and to all books, plans, records or accounts used in connection with or affecting any interim or final licence or undertaking, and may from time to time make measurements and observations and take such other steps for carrying out any inquiry as may be considered necessary or expedient in the administration of this regulation. 63(2) The findings of the director with respect to the quantity of water diverted, used, or stored, or capable of being diverted, used, or stored, or the amount of power developed or capable of being developed under the authority of any licence shall be conclusive and binding upon the licensee. 64 The licensee, before making any material change in any existing works or in their location, shall submit a complete and satisfactory statement and plans of such proposed change to the director, and shall not proceed to carry out the same until such proposed change has been authorized. 65(1) The director may require any licensee to install and maintain in good operating condition at such places and in such manner as the director shall approve, accurate meters, measuring weirs, gauges or other approved devices which shall be adequate for determining the amount of water used or power developed in the operation of the works, for determining the flow of the stream or streams from which water is or will be diverted, and for determining the amount of water held in or drawn from storage. 65(2) The licensee shall keep accurate and satisfactory records of the determinations referred to in subsection (1) and shall from time to time make such returns, supported if necessary by statutory declaration, as the director may require. Output of power 66 Upon a report being made by the director that a licensee has not developed the amount of power for which there is a public demand and which could be reasonably developed from the flow of water granted under his licence or controlled by him, the minister may order such licensee to develop and render available for public use the 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 licence or controlled by such licensee and within a period to be fixed by the minister, which period shall not be less than two years after such licensee 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 of section 81 may be applied. Securing enlarged development 67(1) Upon a report being made by the director that it appears desirable to investigate the possibility of establishing an enlarged or more comprehensive development of the water power in any stream at or near the site occupied by any licensee to take the place of the licensee's existing development, the minister may instruct the director to investigate the matter and to hold a hearing thereon. 67(2) The licensee and all other parties who, in the opinion of the director, appear to be interested shall be given not less than 60 days notice of such hearing, and an opportunity to be heard. 67(3) If the minister, upon receiving a report on the hearing referred to in subsections (1) and (2) in writing from the director, considers enlarged or more comprehensive development to be in the public interest, the minister may make a recommendation in the matter to the Lieutenant Governor in Council who may, thereupon, by order, authorize the minister to offer such licensee a new interim licence to carry out such enlarged or more comprehensive development. 67(4) The licence shall in every case be subject to the regulation, but in granting the licence, due consideration shall be given to the existing net earnings of the licensee and to the net earnings likely to be derived from the enlarged or more comprehensive development. 67(5) If the licensee fails, within 12 months after such offer of a licence is made, to accept the same, and in good faith to begin and carry on to completion such new development, then the Lieutenant Governor in Council may order the existing licence terminated. 67(6) Upon such order of termination being given, the respective rights of His Majesty and the licensee in the lands, works, and properties connected with the undertaking shall be the same as in the case where the works and properties of the licensee are taken over upon the expiry of the term as set out in section 47, except that the minister or the court, as the case may be, in determining the compensation to be paid to the licensee may add such bonus or additional bonus to the amount payable according to section 47, as will in the opinion of the minister or of the court be proper under the particular circumstances of the case, not to exceed, however, 3/4% of the amount payable as aforesaid for each full year of the unexpired term of the licence, nor to be less than 5% of such amount. 67(7) Where more than one existing plant or site is affected by the enlarged or more comprehensive development referred to in sections 66 and 67, the Lieutenant Governor in Council may authorize the minister to receive proposals from all the licensees or occupants of the said sites for carrying out the proposed new development, and to offer to each in turn, selecting first that one whose proposal is reported by the director, for stated reasons, to appear most in the public interest, or to all conjointly, an interim licence, for the carrying out of the proposed new development. 67(8) If such new licence is granted, the existing licenses shall be terminated in the same manner and having the same effect, and providing for compensation to the same extent as in the case where the rights of only one existing licensee are affected as set out in subsections (1) to (6). 67(9) If each of the licensees mentioned in subsections (7) and (8) in turn fails, within the time specified, to accept the offer of a new licence and to begin and carry on to completion the proposed new works, then, in such case, the Lieutenant Governor in Council may order all the said licences terminated in the same manner and having the same effect, and providing for compensation to the same extent as set out in subsection (6). Change in undertaking 68 If a licensee desires to develop, sell, use or dispose of any greater quantity of power than authorized by his or her licence, whether such increased disposal of power does or does not necessitate any addition to or alteration in the works, 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 licence, the licensee must first apply for an interim licence authorizing the construction of the works or for a final licence authorizing such additional development, sale, use or disposal or authorizing such use or disposal in such other manner or for such other purpose, as the case may be. Sale of power 69 In districts where there is no existing authority of competent jurisdiction to regulate and control transmission or distribution companies, no sale or delivery of power shall be made by any licensee to any such company, except in case of emergency and then not for more than 60 days without the written consent of the director, unless such company has undertaken, to the satisfaction of the minister, to comply with the terms of this regulation and of the licence to the same extent as the licensee would have been obliged to comply therewith, insofar as the use or disposal of such power is concerned. 70 Every licensee whose undertaking involves the sale, barter, or exchange of the power authorized to be developed under that licence shall sell power to the Crown when so requested by the minister at as low a price as is given to any other consumer for a like use at the same time and under similar conditions, if such request is within the capacity of the site and there is no prejudice to the rights of any other consumer then holding a binding contract for the delivery of power. 71 A licensee whose undertaking embraces the sale of energy or power may, with the approval of the minister, 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 licence but for not more than 10 years thereafter, and in such case, the licence shall not be terminated at the end of the term as set out in this regulation unless the new licensee or some competent authority acting for or at the request of the government has assumed to fulfill all such contracts so approved. Stream regulation and control 72 Every licence shall be deemed to have been executed on the express condition that the licensee shall (a) divert, use, or store the water authorized to be diverted, used, or stored by him in such a manner as not to interfere, in the opinion of the minister, with the maximum advantageous development of the power and other resources of the river or stream upon which the works are located; (b) conform to and comply with any orders in respect of the control or regulation of the flow of the waters of such river or stream as may be made from time to time by the minister or any person authorized by the minister in that behalf; and (c) at no time cause or permit the surface level of the waters of such river or stream or of any storage reservoir operated by the licensee to be raised or lowered beyond the limits which shall be fixed from time to time by the minister or by a person authorized by the minister in that behalf. 73(1) In this and sections 74 and 75, "annual outlay" includes all yearly maintenance, operation, and depreciation costs, and necessary amortization costs other than installments of the actual cost, incurred in respect of such regulation or storage works together with interest on the actual cost. 73(2) If any regulation or storage works are undertaken upon any stream by the government or upon the authority of the government for the control or augmentation of the flow of such stream for water power or other purposes, the actual cost of such works or any part thereof may be assessed by the minister upon the owners or licensees of all the water power sites in the stream, whether such sites are fully developed, partially developed or entirely developed, according to the relative benefits which, in the opinion of the minister, are or will be derived by them from the regulated or increased flow, and may also be charged against owners of water privileges under provincial jurisdiction in accordance with section 74. 73(3) Any person who believes himself to have been wrongfully assessed under the subsection 73(2) may appeal the matter to such board or commission as the Lieutenant Governor in Council may designate for the purpose, and the decision of such board or commission shall be final. 73(4) The actual cost, so assessed, may be made payable in annual installments extending over such period of years, and in such respective amounts for any stated years, as the minister may determine; and the minister may provide, if any such water power sites are undeveloped or have not yet commenced to be operated at the time when the said regulation or storage works are undertaken, that the commencement of payment of the annual installments may in such cases be deferred until development and operation take place, or until such time has elapsed thereafter as the minister may consider suitable. 73(5) The total annual outlay in respect of works undertaken under this section shall be a charge upon such of the water power developments on the stream as are in a position to utilize the regulated or increased flow in whole or in part, and shall be apportioned among them in proportion to the respective benefits estimated as accruing from time to time from such regulated or increased flow. A due proportion of the annual outlay may also be charged against owners of water privileges under provincial jurisdiction in accordance with the provisions of section 74. 73(6) A schedule of the proportion of such annual outlay to be debited against the respective water power developments shall be prepared, from time to time, at the direction of the minister, and shall remain in effect for such period of years, not less than three, as the minister may determine, and in fixing the respective proportions, for any period of years, the use made by the licensee for the period immediately preceding may be taken into consideration, but (a) such schedule of proportions may be revised at any time with the consent of all the licensees affected; and (b) a water power development which has come into operation or whose utilization of the stream flow has been substantially increased within the period during which such schedule is effective, may, at the discretion of the minister, be debited with its proportionate share of the annual outlay from the time of the commencement of such operation, in which case the proportion charged upon each of the existing developments shall be correspondingly reduced. 73(7) Any owner of a water power site, who considers that the proportionate share of annual outlay debited to his water power development under subsections (5) and (6) is unjust, may appeal the apportionment to the board provided for in subsection (3), but the minister's determination of the total amount of outlay chargeable against all the water power developments shall in no case be subject to appeal. 73(8) In addition to paying the assessments of actual cost and the annual charges as provided for in the subsection (7), every licensee may be required to pay such rental for the additional flow created by any such works and used by such licensee as the minister may determine, under the provisions of this regulation, applicable to rentals for the development and use of water power. Co-operative agreements with provinces 74 The minister may enter into co-operative agreements with the authorities of any province for the purpose of providing that owners of water privileges under provincial jurisdiction shall bear a due share in the cost of any storage and regulation works undertaken under section 73, annual charges arising out of the construction of such works, and rentals for the additional flow created. 75 Subject to the assent and co-operation of the proper provincial authorities where required, the Lieutenant Governor in Council may provide the conditions under which owners of irrigation, logging, navigation, or other interests upon the stream who are benefited by such regulation or storage works shall be required to share with the water power interests the cost and charges arising under this section. Appraisals 76(1) To afford a ready basis upon which any valuation which may be required of the lands, works and properties held by a licensee in respect of his or her undertaking may be made, such as, for instance, valuation for the purpose of ascertaining the proper rentals to be paid by the licensee under section 48, or for determining the compensation to be paid if the properties are taken over under section 47, or to arrive at the rates properly chargeable to consumers under this regulation or otherwise, the minister shall, whenever the amount of the installed horsepower exceeds 5,000, and may, in any other cases where the minister considers it advisable, not less than once in every 10 years in the life of any licence, cause a re-appraisal of the value of the said lands, works and properties, taking as a basis for that re-appraisal the actual cost of the properties determined as set out in section 36, and then giving consideration to any extensions or permanent improvements made in the properties in the period that may have elapsed subsequent to the time of such original construction or subsequent to the last previous appraisal under this section, as the case may be, and also to the loss in value, if any, in the said properties due to physical or functional depreciation or otherwise as well as to the variation in the purchasing power of a dollar as provided in subsection 47(3). 76(2) In the case of any undertaking which has been established under regulations pursuant to section 35 of the Dominion Lands Act (Canada), the minister may modify the basis on which such appraisal is to be made upon the recommendation of the director, after the latter has conferred with the owner of the said undertaking and with the authority, if any, having competent jurisdiction over the regulation and control of public utilities in the district in which the said undertaking is situated. 77 In any valuation of the lands, works and properties held by the licensee in connection with the licence, whether for the purpose of fixing the tolls or rates which may be charged for power, or for the purpose of appraising the property upon which the licensee is entitled to earn or receive any return, income, price or compensation, or for any other purpose no value shall be given or claimed for the rights and privileges granted by the licence over and above the sums, if any, actually paid to the government for such rights and privileges excluding any annual or guarantee deposit paid during the interim licence period nor any rentals or annual charges accruing during the final licence period. Accounting 78(1) Every licensee shall keep a true and detailed account of all expenditures made in each calendar year in respect of the works, lands and properties and such other information as follows: (a) respecting the works: (i) the actual cost thereof, giving separately each class of expenditures as indicated in the definition of "actual cost", (ii) amounts expended in that year for enlargements and permanent improvements authorized by the minister, and (iii) depreciation in value from any and all causes for that year; (b) respecting lands, tenements and appurtenances not included in clause (a), a statement setting out, in each case, the actual cost thereof in accordance with the provisions of section 36; (c) respecting capital stock: (i) the amount authorized and the number of shares into which it is divided, (ii) the number of shares subscribed for and allotted, the number of shares forfeited to date, and the owners, for the time being, of all outstanding shares, (iii) the amount of calls made on each share, and the total amount received from shareholders in cash on account of stock, (iv) the number of shares, if any, issued as fully paid up shares as consideration for any service rendered or otherwise, specifying in each case for what consideration such shares were issued, and (v) the amounts of dividends declared and paid; (d) respecting bonds or debentures: (i) the amount authorized, and the period of redemption, (ii) the amount sold (face value) and the rate of interest, (iii) the amount realized from sales, (iv) the annual amount set aside as sinking fund to meet bonded indebtedness, and date of commencement; (e) the indebtedness other than stock and bonds, specifying the nature and amounts, and the rate of interest such indebtedness is bearing; (f) a statement showing the total revenues of the undertaking, specifying the amount received from each and every source; (g) the maintenance and operation expenditures, separating those expenditures which are incurred at or near the works from head office and other expenditures relating to general administration; (h) the names of officers and the classification of employees, with salaries, expenses, or other remuneration paid or allowed; (i) the proposed extensions during ensuing years; (j) if a company, such annual return shall have attached thereto a copy of the bylaws of the company, showing all amendments thereto during the year covered by that return; (k) such other data as the minister may require. 78(2) Every licensee shall file annually with the director on or before March 1 by a return for the year ending December 31 preceding a detailed summary of all information included under clauses (1)(a) and (b). 78(3) Every licensee shall in addition, when so requested by the minister, file with the director an accurate summary of the information specified in clauses 1(c) to (k). 78(4) The minister's decision in regard to classifying items under clauses of subsection (1), in regard to methods of allowing for depreciation and in regard to the form in which the accounts shall be kept, shall be final. Transfers 79(1) Before any assignment or transfer of any licence or of the rights and privileges thereby granted or of the undertaking connected therewith or of any part thereof becomes valid or effective, the minister's approval in writing must be secured, and the assignment or transfer shall be subject to such terms and conditions as the minister may impose in writing. 79(2) The licensee shall in every case, when applying for such approval, file with the minister a satisfactory, full and detailed statement of the compensation which is to be paid to the licensee for the rights, privileges and properties transferred in respect of the undertaking. 79(3) The minister shall not grant approval unless (a) it can be shown to the minister's satisfaction that such assignment or transfer is expedient in the public interest; (b) no remuneration is to be allowed to the assignor or transferor for the rights and privileges conferred under the licence over and above the sums, if any, actually paid to the Crown for such rights and privileges, but not including in any case annual or guarantee deposits paid during the interim licence period nor any rentals nor annual charges accruing during the final licence period; and (c) the assignee or transferee has undertaken in a manner satisfactory to the minister to assume all the obligations of the assignor or transferor and also such additional obligations as may have been prescribed by the minister in the written approval. 79(4) No lien shall be created by mortgage or trust deed upon any power undertaking established in respect of any licence issued under this regulation unless approved by the minister and for the bona fide purpose of financing the undertaking. 79(5) Any successor or assignee of the rights held in respect of such licence whether by judicial sale, foreclosure sale or otherwise shall be subject to all the conditions of the licence, and to all the provisions and conditions of this regulation to the same extent as though such successor or assignee were the original licensee. 80(1) Lands inside the severance line used or occupied for the purposes of the undertaking shall not be alienated, sold, or disposed of by the licensee without either (a) the consent of the minister; or (b) failing such consent, an order of the court; and subject to such terms as the minister or the court may lay down for the protection of the undertaking. 80(2) When notice of termination or cancellation has been given to a licensee under this regulation, no lands, inside or outside of the severance line, used or occupied for the purposes of the undertaking shall thereafter be alienated, sold, or disposed of except in accordance with subsection (1). Penalties for default by licensee 81(1) If a licensee, in the opinion of the minister, has failed to observe or perform any term or condition, which under his or her licence or the regulation the licensee is required to observe or perform, the minister may, upon giving the licensee not less than 60 days notice, refer the matter to the court, and if the court finds that the licensee has failed in his or her obligations, it may do one or both of the following: (a) order specific performance by the licensee of the terms of the licence; (b) order the payment of a sum by way of damages for the failure to perform the terms. 81(2) If, after an order is made under subsection (1), the non-observance or non-performance on the part of the licensee continues, or if the licensee refuses or fails to comply satisfactorily with the order, or if the court considers that the non-compliance of the licensee is of such a nature that the foregoing remedies are inapplicable, the court may do one or both of the following: (a) authorize any person to take immediate possession of all works, lands, and properties whether real or personal, owned or held by the licensee within the power system whether within or without the severance line and used or useful in respect of the undertaking, including books, statements, accounts, papers and records pertaining to the undertaking, and to operate, manage and control the undertaking, and to do all other things required to be done in the conducting or carrying on of the undertaking, until (i) a sufficient sum is accumulated, exclusive of all operating expenses and all costs of taking possession, to liquidate the sums payable by the licensee and interest thereon and the cost of any proceeding connected therewith, or (ii) such other conditions are carried out as may, in the opinion of the court, have been required to satisfy the terms of the licence or regulation; or (b) give notice that upon a certain date not earlier than 12 months after such notice the licence shall be cancelled, and that not earlier than six months from the date of the notice and not later than the termination of the period fixed for cancellation, the lands, works, and properties, whether real or personal, owned or held by the licensee, and used or useful in respect of the power development, and located within the severance line set out in the interim or final licence, shall be sold at execution sale. 81(3) If an execution sale is ordered under clause (2)⁠(b), the minister shall fix an upset price below which the properties may not be sold and shall prepare a stipulation relative to the rights to be acquired and the obligations to be assumed by the successful bidder, and no one shall be permitted to bid at such sale who has not previously agreed in writing to sign and abide by the terms of the stipulation and who has not been accepted by the minister as a bidder, and who has not deposited, by way of a guarantee, a sum equivalent to one-half of that required of interim licensees under section 28. 81(4) The guarantee deposit mentioned in subsection (3) shall be returned to each unsuccessful bidder immediately upon termination of the sale, and the successful bidder's deposit may be returned as soon as, in the opinion of the court, the transfer has been satisfactorily consummated and operation of the works and undertaking is being satisfactorily conducted. 81(5) If there is not a satisfactory buyer at the first execution sale, a second sale shall be held after a lapse of four months, under the same conditions as the first, except that the upset price shall not exceed the sum which represents the obligations of the licensee to the Crown as fixed by the court, and if no bids are received in excess of this sum by accepted bidders, the licensee shall forfeit all his or her rights, and the works and undertaking shall become the property of the Crown without compensation to the licensee, but then existing contracts made by the licensee lawfully and in good faith for the sale or delivery of power at rates which have been properly approved, shall be carried out. 81(6) Any surplus arising out of a sale under this section, above the sum which in the opinion of the court will satisfy the obligations of the licensee, shall be paid to the licensee, not exceeding in any case, however, the amount which would be payable if the provisions of section 47 were applicable. 81(7) If any execution sale under the provisions of this section is contemplated, the court, before giving notice of such sale, shall request the minister to advise whether in the minister's opinion any lands, works, and properties outside the severance line, but within the power system, are more tributary or essential to the water power development in question than to the licensee's remaining undertaking or undertakings, and whether it will be desirable for His Majesty to take over any such lands, works, or properties at the time of such sale. If the minister advises in the affirmative, the court shall grant a hearing upon the matter, giving the minister and the licensee each not less than 60 days notice of the hearing, and in deciding the question shall give due consideration to the severance losses to be suffered by both parties, the public interest, equity, and such other factors as the court considers relevant. If the court decides that any of the said lands, works, and properties outside the severance line are more tributary or essential to the water power development in question than the licensee's remaining undertaking or undertakings, His Majesty may, upon an execution sale being carried out under this section, assume immediate possession of the said lands, works, and properties, but compensation shall in such case be paid upon the basis set out in subsections 47(8) and (9). 81(8) If the licence has been cancelled under the provisions of clause (2)⁠(b), and if, for any reason, the procedure provided in subsections (3) to (7) has not been completed, the court may make any orders with respect to taking over and operating the works and undertaking of the licensee for the time being as it may consider equitable under all the circumstances. Miscellaneous provisions 82 Before executing any licence, the minister shall submit to the prospective licensee a draft of the proposed licence and shall secure from the licensee an acceptance thereof and an undertaking to observe and fulfill all the terms and conditions which under the licence and under this regulation such licensee is required to observe or fulfill, with particular reference to the right of His Majesty to take over the works, lands and properties held by the licensee in connection with the licence in certain contingencies as this regulation provides. Such acceptance and undertaking shall be made to bind the executors, administrators and assigns, or in the case of a corporation the successors and assigns of the prospective licensee. 83 It shall be a condition of every licence issued in accordance with this regulation that the licensee shall pay or require to be paid to those employed in the construction, alteration, extension, maintenance and operation of the works authorized by the licence, wages not less than those prescribed by regulation under either The Employment Standards Act or The Construction Industry Wages Act , whichever is applicable. 84 The licensee shall indemnify the Crown against all actions, claims or demands arising against it by reason of anything done by that licensee in the exercise or purported exercise of the rights and privileges granted under the licence. 85 If the minister considers it advisable in order to systematize the accounting work of the department to change the times of payment of rentals or other sums payable under any existing licence or other concession, the minister may, by giving the licensee 60 days notice in writing, readjust such times of payment, if the aggregate payment to be made under the said licence or other concession is not increased. 86 Where (a) lands, which have been reserved by the Lieutenant Governor in Council as being valuable for the development of any water power to be dealt with only under this regulation, cannot, in the opinion of the minister, be utilized in connection with such water power development for a number of years; and (b) in the opinion of the minister, the granting of temporary permits, leases or licences of occupation for other purposes will not interfere with the purposes of such reservation; the minister charged with the administration of The Crown Lands Act , may grant conditional permits, leases or licences stipulating that when, in the opinion of the minister, the lands are required in connection with such water power development it shall be lawful for the minister charged with the administration of The Crown Lands Act , on giving six months notice of such cancellation by writing under his hand, to cancel such permit, lease or licence, and take possession on behalf of His Majesty of the lands and all improvements thereon without any compensation whatever being paid to such conditional permittee, licensee or lessee. 87 Notwithstanding any rights granted or approval given by any licence, every licensee shall comply fully with the provisions of the Navigable Waters Protection Act (Canada) and any rules and regulations promulgated thereunder, and shall also comply fully with the provisions of any provincial statutes or regulations governing the preservation of the purity of waters or governing logging, forestry, fishing, wildlife or other interests present or future which might be affected by any operations conducted under the licence and shall also observe and carry out any instructions of the minister concerning any of those matters not inconsistent with the said statutes and regulations. 88 The minister may from time to time make such supplemental rules regarding such matters as the nature of plans 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 this regulation as may, in his or her opinion, be desirable. 89 Any machinery, plant, structure, or works constructed, installed, or placed on any lands of the province for the development of any water power or for the transmission, distribution, or utilization of the energy produced from such water power in contravention of this regulation or of The Water Power Act , shall be removed if and when required by the minister. Special conditions for small water powers 90(1) Applications for the development of small water powers referred to in section 2 may be dealt with under such special regulations as the minister may, from time to time, promulgate, but (a) the licence terms shall not exceed 20 years and renewals shall not exceed five years each; (b) applications for renewal shall follow the procedure in force at the time such application is made, and the renewal licence shall be subject to the laws and regulations in force at the time such licence is issued; (c) upon the expiry of any term or renewal, if the licensee has not applied for or has failed to secure a renewal licence, the water power development and all works and structures connected therewith and located on lands of the province shall become the property of the Crown without compensation to the licensee, but with the privilege on the licensee's part of removing within such period after the expiry as may be approved, all works and structures erected or installed by the licensee in connection with such power development, which can, with the consent of the director, be removed without damage to the lands; (d) the Lieutenant Governor in Council may at any time, upon giving the licensee one year's notice, cancel any licence granted under this section, and resume full possession and control of the water power development and all works, lands, and structures connected therewith, or, at the option of the minister, of such part of such works and structures as are situate upon lands of the province; (e) compensation shall be paid to the licensee for the works, lands, and structures taken over under this subsection, to the amount of the actual cost thereof, determined in accordance with the principles of section 36 and subsection 47(3), together with a percentage added to that amount by way of a bonus not greater than 15% nor less than 3% as may be determined either by agreement of the parties, or in case of non-agreement, by the court. 90(2) The director may receive applications for the development and use of any water powers, the capacity of which, under average usable flow conditions, does not exceed, in the director's opinion, 100 horsepower, and which are not of primary importance for public utility or commercial purposes, and may issue licences for the development and use of any such water powers, provided that the compensation to be paid to the licensee under clauses 90(1)⁠(d) and (e) for any works taken over if the licence should be terminated before the expiry of the term shall be arrived at by agreement of the parties, or in the case of non-agreement, by such tribunal, person or persons, and in such manner as the minister may, at the time, determine and direct. 91 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 this regulation, shall be considered to have been validly given or served if mailed by registered mail to such person addressed to his last known address or, if left at that 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. Minister may issue short-term extension licences 92(1) Despite section 46, if (a) a final licence has expired; or (b) the licensee has not applied for an extension of the final licence within the period set out in subsection 46(1); the minister may, upon written application from the licensee in a form satisfactory to the minister and containing any information required by the minister, issue to the licensee a short-term extension licence for a term of not more than five years from the date issued. 92(2) A short-term extension licence may apply retroactively to the time that the final licence expired, in addition to a term of not more than five years as set out in subsection (1). 92(3) The short-term extension licence must include the terms and conditions contained in the final licence, except where the minister considers it in the public interest to amend any term or condition, and may include such other terms or conditions as the minister may impose. 92(4) Terms or conditions under subsection (3) may be different for any retroactive period of the short-term extension licence than for the period after the licence is issued. 92(5) Any short-term extension licence for the development of water power issued as an extension of a final water power licence before this section comes into force that is consistent with this section is deemed to be authorized under this section. 92(6) A short-term extension licence may be renewed for one or more terms, provided that the term of any such renewal does not exceed five years. A renewed short-term extension licence must include the terms and conditions contained in the final licence, except where the minister considers it in the public interest to amend any term or condition, and may include such other terms or conditions as the minister may impose. M.R. 224/2009 Renewal of final licence 93(1) Where a short-term extension licence is issued under subsection 92(1), or authorized under subsection 92(5), the licensee shall be deemed to have applied for an extended final licence, and section 46 applies with necessary changes. 93(2) The minister may (a) conduct any public hearing that the minister considers necessary in accordance with subsection 46(3); and (b) provide for any consultations with First Nations or aboriginal communities about an extended final licence; during the term of the short-term extension licence. M.R. 224/2009