Dominion Water Power Regulations (C.R.C., c. 1603)

• 60 (1) No lien may be created by mortgage or trust deed upon any power undertaking established in respect of any licence unless it is approved by the Minister and is for the bona fide purpose of financing the undertaking.

• (2) Any successor or assign of the rights held in respect of a licence, whether by judicial sale, foreclosure sale or otherwise, is subject to all the conditions of the licence, and to all the provisions and conditions of these Regulations to the same extent as though the successor or assign were the original licensee.

61 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 the consent of the Minister, and the alienation, sale or disposal shall be subject to such terms as the Minister may prescribe for the protection of the undertaking.

62 Whenever notice of termination or cancellation has been given to a licensee in pursuance of these Regulations, no lands whatever, whether inside or outside the severance line, used or occupied for the purposes of the undertaking shall thereafter be alienated, sold or disposed of without the consent of the Minister and the alienation, sale or disposal shall be subject to such terms as the Minister may prescribe.

Acceptance of Terms of Licence

• 63 (1) Before issuing a licence, the Minister shall submit to the prospective licensee a draft of the proposed licence, and shall secure from such licensee an acceptance thereof and an undertaking to observe and fulfil all the terms and conditions that a licensee is required to observe or fulfil under the licence and these Regulations, with particular reference to the right of Her Majesty to take over the works, lands and properties held by the licensee in connection with his licence in certain contingencies as in these Regulations provided.

• (2) The acceptance and undertaking referred to in subsection (1) shall bind the executors, administrators and assigns, or in the case of a company the successors and assigns of the prospective licensee.

• 64 (1) Any notice that is required to be given or served, or that the Minister may desire to give or serve upon any person in respect of these Regulations, shall be considered to have been validly given or served when sent by registered mail to that person addressed to his latest known address or when delivered by hand to that address.

• (2) A notice sent by post shall be deemed to be given when in due course of postal operations it would be delivered at the address to which it was sent.

65 The licensee shall indemnify Her Majesty in right of Canada against all actions, claims or demands arising against Her by reason of anything done by him in the exercise or purported exercise of the rights and privileges granted under the licence.

• 66 (1) Where applications are made therefor, the Minister may grant conditional leases or licences for the temporary use and occupation for other purposes of lands that have been reserved by the Governor in Council for water-power development, where, in the Minister’s opinion, those lands will not be utilized for a number of years in connection with water-power development and the granting of temporary leases or licences of occupation does not interfere with the purposes of the reservation.

• (2) Every conditional lease or licence is deemed to include provisions to the effect that, when the leased lands are required in connection with a water-power development and upon giving the conditional lessee or licensee not less than six months’ notice of cancellation in writing under his hand, the Minister may cancel the lease or licence, and terminate the rights thereby conferred, and repossess himself on behalf of Her Majesty of the leased lands and all improvements thereon without any compensation whatever being paid to the conditional licensee or lessee.

67 Notwithstanding any rights granted or approval given by any licence, every licensee shall

• (a) comply fully with the Canadian Navigable Waters Act and any regulations and orders made thereunder;

• (b) comply fully with any provincial or federal statute or regulation governing the preservation of the purity of waters or governing logging, forestry, fishing or other interests present or future that might be affected by any operations conducted under his licence; and

• (c) observe and carry out any instructions of the Minister in respect of any of the matters referred to in paragraphs (a) and (b) not inconsistent with the statutes and regulations referred to in those paragraphs.

68 Any machinery, plant, structure or works constructed, installed, or placed on any public lands 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 these Regulations or of the Dominion Water Power Act, shall be removed if and when required by the Minister.

Small Water-powers

• 69 (1) For the purpose of this section, a small water-power means a water-power that, in the opinion of the Director,

  • (a) cannot, under average usable flow conditions, produce in excess of 500 horsepower; and

  • (b) is not of primary importance for commercial or public utility purposes.

• (2) An application for a licence for the development of a small water-power may be made to the Director and shall contain the information as specified in section 3, but the Director may exempt the applicant from supplying such of the information as, in the opinion of the Director, is not of importance because of the small size of the proposed development.

• (3) The Minister may exempt the applicant for the development of a small water-power from complying with such provisions of these Regulations as, in the opinion of the Minister, need not be enforced because of the small size of the proposed development and the Minister may issue to the applicant a special licence subject to the following conditions:

  • (a) the term of a licence shall not exceed 20 years and the term of each renewal shall not exceed five years;

  • (b) an application for renewal of a licence shall follow the procedure in force at the time the application is made, and the renewal of the licence shall be subject to the laws and regulations in force at the time the licence is issued;

  • (c) upon the expiry of a licence or any renewal thereof, if the licensee has not applied for or has failed to secure a renewal of the licence, the water-power development and all works and structures connected therewith and located on public lands shall become the property of the Crown without compensation to the licensee, but the licensee may remove from public lands, within such period as is approved by the Director, all works and structures erected or installed by the licensee in connection with the power development that, with the consent of the Director, may be removed without damage to the lands;

  • (d) the Minister, upon giving the licensee one year’s notice, may at any time cancel a licence granted under this section, and resume full possession and control of the water-power development and of all works, lands and structures connected therewith or, at the option of the Minister, of such part of the works and structures as are situated upon public lands; and

  • (e) where the Minister cancels a licence pursuant to paragraph (d), compensation for the works, lands and structures to be taken over shall, to the amount of the actual cost thereof, determined in accordance with section 19 and subsection 28(2), together with a percentage added to that amount by way of bonus, not greater than 15 per cent nor less than three per cent of the amount, be fixed by the Minister.