§ 807. — Right of Government to take over project works.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC807]
TITLE 16--CONSERVATION
CHAPTER 12--FEDERAL REGULATION AND DEVELOPMENT OF POWER
SUBCHAPTER I--REGULATION OF THE DEVELOPMENT OF WATER POWER AND RESOURCES
Sec. 807. Right of Government to take over project works
(a) Compensation; condemnation by Federal or State Government
Upon not less than two years' notice in writing from the commission
the United States shall have the right upon or after the expiration of
any license to take over and thereafter to maintain and operate any
project or projects as defined in section 796 of this title, and covered
in whole or in part by the license, or the right to take over upon
mutual agreement with the licensee all property owned and held by the
licensee then valuable and serviceable in the development, transmission,
or distribution of power and which is then dependent for its usefulness
upon the continuance of the license, together with any lock or locks or
other aids to navigation constructed at the expense of the licensee,
upon the condition that before taking possession it shall pay the net
investment of the licensee in the project or projects taken, not to
exceed the fair value of the property taken, plus such reasonable
damages, if any, to property of the licensee valuable, serviceable, and
dependent as above set forth but not taken, as may be caused by the
severance therefrom of property taken, and shall assume all contracts
entered into by the licensee with the approval of the Commission. The
net investment of the licensee in the project or projects so taken and
the amount of such severance damages, if any, shall be determined by the
Commission after notice and opportunity for hearing. Such net investment
shall not include or be affected by the value of any lands, rights-of-
way, or other property of the United States licensed by the Commission
under this chapter, by the license or by good will, going value, or
prospective revenues; nor shall the values allowed for water rights,
rights-of-way, lands, or interest in lands be in excess of the actual
reasonable cost thereof at the time of acquisition by the licensee:
Provided, That the right of the United States or any State or
municipality to take over, maintain, and operate any project licensed
under this chapter at any time by condemnation proceedings upon payment
of just compensation is expressly reserved.
(b) Relicensing proceedings; Federal agency recommendations of take over
by Government; stay of orders for new licenses; termination of
stay; notice to Congress
In any relicensing proceeding before the Commission any Federal
department or agency may timely recommend, pursuant to such rules as the
Commission shall prescribe, that the United States exercise its right to
take over any project or projects. Thereafter, the Commission, if its
\1\ does not itself recommend such action pursuant to the provisions of
section 800(c) of this title, shall upon motion of such department or
agency stay the effective date of any order issuing a license, except an
order issuing an annual license in accordance with the proviso of
section 808(a) of this title, for two years after the date of issuance
of such order, after which period the stay shall terminate, unless
terminated earlier upon motion of the department or agency requesting
the stay or by action of Congress. The Commission shall notify the
Congress of any stay granted pursuant to this subsection.
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\1\ So in original. Probably should be ``it''.
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(June 10, 1920, ch. 285, pt. I, Sec. 14, 41 Stat. 1071; renumbered pt. I
and amended, Aug. 26, 1935, ch. 687, title II, Secs. 207, 212, 49 Stat.
844, 847; Pub. L. 90-451, Sec. 2, Aug. 3, 1968, 82 Stat. 617; Pub. L.
99-495, Sec. 4(b)(2), Oct. 16, 1986, 100 Stat. 1248.)
Amendments
1986--Subsec. (b). Pub. L. 99-495 struck out first sentence which
read as follows: ``No earlier than five years before the expiration of
any license, the Commission shall entertain applications for a new
license and decide them in a relicensing proceeding pursuant to the
provisions of section 808 of this title.''
1968--Pub. L. 90-451 designated existing provisions as subsec. (a)
and added subsec. (b).
1935--Act Aug. 26, 1935, Sec. 207, amended section generally.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-495 effective with respect to each license,
permit, or exemption issued under this chapter after Oct. 16, 1986, see
section 18 of Pub. L. 99-495, set out as a note under section 797 of
this title.
Transfer of Functions
Federal Power Commission terminated and its functions with regard to
licenses and permits for dams, reservoirs, or other works for
development and improvement of navigation and for development and
utilization of power across, along, from, or in navigable waters under
this subchapter transferred to Federal Energy Regulatory Commission by
sections 7172(a)(1)(A) and 7293 of Title 42, The Public Health and
Welfare.
Section Referred to in Other Sections
This section is referred to in sections 808, 820, 828b of this
title.
