thereof, see 88 4.40 4.42. For application for license for constructed major project or minor part thereof, see §§ 4.50, 4.51. For forms for application for licenses, see §§ 200.2-200.5.

6.2 Surrender of license. Licenses may be surrendered only upon the fulfillment by the licensee of such obligations under the license as the Commission may prescribe, and, if the project works authorized under the license have been constructed in whole or in part, upon such conditions with respect to the disposition of such works as may be determined by the Commission.*t

6.3 Termination of license. Licenses may be terminated by written order of the Commission not less than 90 days after notice thereof shall have been mailed to the licensee by registered mail to the last address whereof the Commission has been notified by the licensee, if there is failure to commence actual construction of the project works within the time prescribed in the license, or as extended by the Commission. Upon like notice, the authority granted under a license with respect to any separable part of the project works may be terminated if there is failure to begin construction of such separable part within the time prescribed or as extended by the Commission.*†

6.4 Termination by implied surrender. If any licensee holding a license subject to the provisions of section 10 (i) of the Act shall cause or suffer essential project property to be removed or destroyed, or become unfit for use, without replacement, or shall abandon, or shall discontinue good faith operation of the project for a period of three years, the Commission will deem it to be the intent of the licensee to surrender the license; and not less than 90 days after public notice may in its discretion terminate the license.**

6.5 Annual charges. Annual charges arising under a license surrendered or terminated shall continue until the effective date of the Commission's order with respect to such surrender or termination.*† CROSS REFERENCE: For annual charges, see Part 11.

PART 9-TRANSFER OF LICENSE OR LEASE OF PROJECT PROPERTY

Application for approval of transfer of license: See § 200.20.

APPLICATION FOR TRANSFER OF LICENSE

Section 9.1 Filing. Any licensee desiring to transfer a license or rights thereunder granted, and the person, association, corporation, State, or municipality desiring to acquire the same, shall jointly or severally file an application for approval of such transfer and ac

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**For statutory and source citations, see note to § 6.1.

quisition. Such application shall be submitted in quadruplicate under oath and shall conform to $ 200.20.**

*88 9.1 to 9.10, inclusive, issued under the authority contained in secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C., Sup., 825 (b), 825g, 825h: interpret sec. 8, 41 Stat. 1068; 16 U.S.C. 801.

†In 88 9.1 to 9.10, inclusive, the numbers correspond with the respective section numbers in Rules of practice and regulations, Federal Power Commission, June 1, 1938.

9.2 Contents of application. Every application for approval of such transfer and acquisition by the proposed transferee shall set forth in appropriate detail the qualifications of the transferee to hold such license and to operate the property under license, which qualifications shall be the same as those required of applicants for license.**

CROSS REFERENCES: For administrative rules relating to applicants for license, see Part 1. For regulations as to licenses and permits, see Part 4.

9.3 Transfer. Approval by the Commission of transfer of a license is contingent upon the transfer of title to the properties under license, delivery of all license instruments, the payment of annual charges to date, and a showing that such transfer is in the public interest. The transferee shall be subject to all the conditions of the license and to all the provisions and conditions of the Act, as though such transferee were the original licensee. When the Commission shall have authorized the transfer of any license, the transferee shall file with the Commission, within 30 days after such transfer, a certified copy of the deed of conveyance or other instrument evidencing transfer of the property under license, together with evidence of the recording thereof, and within the same period annual charges to the date of transfer shall be paid, whereupon the instrument approving the transfer of license will issue.*†

APPLICATION FOR LEASE OF PROJECT PROPERTY

9.10 Filing. Any licensee desiring to lease the project property covered by a license or any part thereof, whereby the lessee is granted the exclusive occupancy, possession, or use of project works for purposes of generating, transmitting, or distributing power, and the person, association, or corporation, State, or municipality desiring to acquire such project property by lease, shall file four copies of such proposed lease together with an application in quadruplicate for approval thereof. Such application and action thereon by the Commission will, in general, be subject to the provisions of §§ 9.1–9.3.*† PART 11-ANNUAL CHARGES

Section 11.20 Cost of administration. Reasonable annual charges will be assessed by the Commission against individual licen

**For statutory and source citations, see note to § 9.1.

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sees for reimbursing the United States for the cost of administration of part I of the Federal Power Act (49 Stat. 838; 16 U.S.C., Sup., 791-819) as follows:

Sup

(a) For projects of more than 100 horsepower of ultimate installed capacity

(1) A charge of 1 cent per horsepower of the ultimate horsepower capacity authorized to be installed by the license; and

(2) A charge of not to exceed 3 cents per thousand kilowatt hours of energy generated by each project during the preceding fiscal year ended June 30.

To enable the Commission to determine such charges annually, each licensee shall file with the Commission, on or before September 1 of each year, a statement under oath showing the amount of energy generated (or produced by nonelectrical equipment) during the preceding fiscal year, expressed in kilowatt-hours.

(b) For projects of 100 horsepower or less of ultimate installed capacity the charge shall be $5 per annum, subject to the provisions of § 11.23.

(c) For projects involving transmission lines only the administration charge shall be a minimum of $5 per annum.

(d) For projects not covered by the above paragraphs, reasonable annual charges will be fixed by the Commission after consideration of the facts in each case.*†

*88 11.20 to 11.27, inclusive, issued under the authority contained in secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C., Sup., 825 (b), 825g, 825h: interpret sec. 10 (e), 49 Stat. 843; 16 U.S.C., Sup., 803 (e).

†In §§ 11.20 to 11.27, inclusive, the numbers correspond with the respective section numbers in Rules of practice and regulations, Federal Power Commission, June 1, 1938.

11.21 Use of Government lands. Reasonable annual charges for recompensing the United States for the use, occupancy, and enjoyment of its lands (other than lands adjoining or pertaining to Government dams or other structures) or its other property, will be fixed by the Commission. In fixing such charges the Commission may take into consideration such factors as commercial value, the most profitable use for which the lands or other property may be suited, the beneficial purpose for which said lands or other property have been or may be used, and such other factors as the Commission may deem pertinent. Upon reasonable notice and opportunity for hear ing, such charges may be adjusted from time to time by the Commission. The annual charge for the use of lands of the United States for transmission lines only shall be at the rate of $8 per mile per annum for rights-of-way 100 feet in width, with proportional increase or decrease for rights-of-way having greater or less width. The minimum annual charge for use of Government lands under any license shall be $5.*†

11.22 Use of Government dams, structures, tribal lands. Reasonable annual charges for recompensing the United States for the use of Government dams or other structures owned by the United States, and for the use, occupancy, and enjoyment of the lands of the United States adjoining or pertaining thereto, will be based upon the

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**For statutory and source citations, see note to § 11.20.

estimated value for power purposes of the properties and privileges for which a license is issued: Provided, however, That annual charges for the use of Government dams or other structures owned by the United States in reclamation projects or for use of tribal lands embraced within Indian reservations shall be determined in accordance with the provisions of section 10 (e) of the Federal Power Act.**

11.23 Exemption of minor projects. No exemption will be made from payment of annual charges for the use of Government dams or tribal lands within Indian reservations but licenses may be issued without charges other than for such use for the development, transmission, or distribution of power for domestic, mining, or other beneficial use in minor projects.*†

11.24 Exemption of States and municipalities. (a) No State or municipal licensee shall be entitled to exemption from payment of annual charges on the ground that the power generated or transmitted by the licensed project is sold to the public without profit, unless such licensee shall claim such exemption before the expiration of the period allowed for the payment of the annual charges, and shall show

(1) That it maintains an accounting system which segregates the operations of the licensed project and reflects with reasonable accuracy the cost of power generated by such project;

(2) That the revenues from the sale of power from such licensed project do not exceed the reasonable total amount of the following items:

(i) Project operating expenses, including operation, maintenance, depreciation, amortization, taxes, uncollectible revenues and rents; (ii) Payments of interest on indebtedness, including indebtedness to municipality or other department thereof, incurred by reason of the construction or operation of the licensed project.

(b) When the power from the licensed project enters into the electric power system of the State or municipal licensee, in lieu of meeting the requirements set forth in paragraph (a), such licensee may furnish the same information with respect to the properties as a whole within said electric power system and the power produced therein and sold from such system.

(c) A State or municipal licensee meeting the requirements of paragraph (a) shall be entitled to exemption from payment of annual charges to the extent that power generated or transmitted by the licensed project is sold for resale to or interchanged with a corporation not operated for profit.

(d) Notwithstanding compliance by a State or municipal licensee with the requirements of paragraph (a), it shall be subject to the payment of annual charges to the extent that electric power generated by the licensed project is sold for resale to a corporation operated for profit.

(e) Notwithstanding compliance by a State or municipal licensee with the requirements of paragraph (a), it shall be subject to the payment of annual charges to the extent that electric power gen

*For statutory and source citations, see note to § 11.20.

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erated by the licensed project is supplied under an interchange agreement to a person or to a corporation organized for profit, and is not offset by a similar amount of electric power received under such interchange agreement.

(f) Application for exemption from payment of annual charges shall be signed by an authorized executive officer of the licensee and verified under oath. An original and three copies of such application and exhibit shall be filed.*t

CROSS REFERENCE: For form of application by municipalities for exemption from payment of annual charges, see § 200.70.

11.25 Effective date. All annual charges shall commence upon the effective date of the license unless some other date or dates are fixed in the license.**

11.26 Adjustment of annual charges. All annual charges shall continue in effect as fixed, unless changed as authorized by law.*†

11.27 Payment of charges. Annual charges shall be paid within 30 days from the end of each calendar year or within 30 days of rendition of a bill therefor by the Commission, whichever is later. A penalty will be imposed pursuant to the provisions of the Act for delinquency in payment unless otherwise ordered by the Commission.**

PART 16-APPLICATION FOR LICENSE FOR PROJECT UNDER LICENSE WHICH EXPIRES ON A SPECIFIED DATE

Sec.

16. 1 Contents.

16.2 Required exhibits.

Sec.

16.3 Additional information.

Section 16.1 Contents. Each application for a new or annual license for a project already under license which is about to expire shall be submitted at least 3 months prior to the expiration of license and shall set forth in appropriate detail the following information in the order indicated. Unless otherwise designated, four copies of the application, duly verified under oath, and all accompanying documents shall be submitted.

(a) The exact name of the applicant. (b) The license number of the project.

(c) The date on which the license expires.

(d) If licensee is a corporation, list of the officers and directors. (e) The name, title, and post-office address of the person to whom correspondence in regard to the application shall be addressed.**††

**88 16.1 to 16.3, inclusive, issued under the authority contained in secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C., Sup., 825 (b), 825g, 825h: interpret sec. 15, 41 Stat. 1072; 16 U.S.C. 808.

††In 88 16.1 to 16.3, inclusive, the numbers correspond with the respective section numbers in Rules of practice and regulations, Federal Power Commission, June 1, 1938.

16.2 Required exhibits. There shall be filed with the application, and as a part thereof, a map exhibit J as required under 88 4.40-4.42.**††

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**For statutory and source citations, see note to § 11.20. ***For statutory and source citations, see note to § 16.1.