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

Guarantee Deposit

• 13 (1) Within 60 days after being notified in writing by the Director of the approval of the general construction plans and specifications, an interim licensee shall, for the purpose of guaranteeing the performance and fulfilment by the interim licensee of the terms and conditions of the licence, forward to the Director for deposit with the Department of Finance,

  • (a) a guarantee deposit computed, in the case of a power undertaking, upon the horsepower capacity of the site as determined by the Director according to the following scale:

    • (i) up to 1,000 h.p. $2.00 per h.p.

    • (ii) the next 9,000 h.p.   1.00 per h.p.

    • (iii) all over 10,000 h.p.   0.50 per h.p.

  • (b) a guarantee deposit computed, in the case of a storage undertaking, upon the estimated cost of the storage development as determined by the Director according to the following scale:

    • (i) five per cent on the first $100,000 of estimated cost,

    • (ii) 2 1/2 per cent on the next $900,000 of estimated cost,

    • (iii) one per cent on the amount above $1,000,000 of estimated cost.

• (2) A guarantee deposit required under this section shall not exceed $50,000 and shall be in one or more of the following forms:

  • (a) a certified cheque drawn on a bank incorporated under the Bank Act or the Quebec Savings Banks Act;

  • (b) bonds of the Government of Canada or of a company included in the National Railways as defined in the Canadian National Railways Capital Revision Act, 1952, unconditionally guaranteed as to principal and interest by the Government of Canada where such bonds are

    • (i) payable to bearer,

    • (ii) hypothecated to the Minister of Finance and Receiver General in accordance with the provision of the Domestic Bonds of Canada Regulations, or

    • (iii) registered in the name of the Minister of Finance and Receiver General.

• (3) A guarantee deposit may be refunded by the Minister to an interim licensee as the actual construction work progresses, the first, second and third quarters thereof to be refunded when one-quarter, one-half and three-quarters, respectively, of the initial development have been satisfactorily completed, the fourth quarter to be refunded when the final licence is issued.

• (4) An interim licensee shall furnish to the Director, in the form of a statutory declaration or otherwise as may be required, evidence of satisfactory progress in the works to the stage that is required by the terms of his interim licence.

• (5) The Minister is the final arbiter of the satisfactory completion of the first quarter of the initial development.

• (6) Where an interim licensee has complied with all requirements in filing general construction plans, but the plans are rejected and the interim licence cancelled, the guarantee deposit shall be refunded upon application therefor, and the Minister may make such provision as he deems just for compensating the interim licensee for the plans where they prove to be valuable in connection with the disposition that is eventually made of the power site.

• (7) Where an interim licensee fails to comply satisfactorily with the terms of his interim licence, the guarantee deposit, or such part thereof as the Minister may determine, shall be forfeited to the Crown.

Rights in Lands Under Interim Licence

• 14 (1) Only such interim rights of entry upon or of the use or occupation of any public lands shall be acquired in virtue of any interim licence 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 licence, and in no case shall the rights granted by any interim licence be construed to interfere in any way with any interest in public lands previously disposed of by the Crown.

• (2) From time to time, as plans and information are filed showing the extent and scope of the works and the undertaking of an interim licensee with greater precision than was possible at the time the interim licence was executed, and pending the execution of the final licence, the Minister may designate, allot, amend or limit the areas of the lands which the interim licensee is permitted to enter upon, use or occupy, and the Minister’s decision is final.

• (3) When the general construction plans are approved, or as nearly thereafter as is feasible, the Minister shall designate in writing the lands in respect of which the powers of expropriation conferred by the Dominion Water Power Act may be exercised, but an interim licensee shall not exercise such powers of expropriation until the lands are so designated.

Change in Plans

15 Before making any material change in the general construction plans as approved, or in the works constructed or under construction under the licence, or in the location thereof authorized, an interim licensee shall submit to the Director a complete and satisfactory statement and plans of such proposed change and shall not proceed therewith until authorized to do so.

Inspection and Reports

• 16 (1) The Minister, the Director, or any person authorized by either of them, may at any time enter and inspect the lands occupied or the works being constructed by an interim licensee,

  • (a) 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 pursuant to section 11, and

  • (b) for the purpose of checking and taking note of construction-cost data,

  and shall be given access to all records in the possession of the interim licensee or of any contractor or subcontractor engaged on construction of the works.

• (2) When he considers an undertaking of sufficient importance, the Director may place a qualified inspecting engineer on the works during construction and, where the Minister considers it necessary, he may retain a consulting engineer for advice in connection with the plans or works of an interim licensee.

• (3) An interim licensee shall reimburse Her Majesty in right of Canada for all sums paid for salaries and expenses in respect of an undertaking on behalf of the inspecting engineer referred to in subsection (2), within 30 days after receipt of a statement of the sums so paid to a specified date being submitted to the licensee by the Director.

• (4) In like manner, a licensee may also be required, at the discretion of the Minister, to reimburse Her Majesty in right of Canada for all or part of sums paid for fees and expenses of the consulting engineer referred to in subsection (2).

• (5) An interim licensee shall comply with all reasonable written instructions of the inspecting engineer regarding the construction of all works in accordance with the plans and specifications approved pursuant to section 11, and in case of dispute regarding the reasonableness of such written instructions, or regarding the requirements of the plans and specifications, the Minister’s decision is final.

• (6) Where an interim licensee does not comply with the written instructions of an inspecting engineer, the Minister may order the interim licensee to suspend all operations in respect of the works until the Minister gives instructions to resume operations, and in the case of continued refusal by the interim licensee to comply with the written instructions, the Minister may cancel the interim licence.

• (7) An 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

• 17 (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, an interim licensee shall file with the Director copies of the final construction plans.

• (2) The final construction plans, together with drawings and specifications accompanying them, shall show

  • (a) 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

  • (b) the precise areas of lands occupied as required by section 10.

Plans and Specifications

• 18 (1) All plans required to be filed shall be on tracing linen and cut to a uniform size of 20 by 17 or 30 by 26 inches and shall satisfy the requirements of the Director.

• (2) All specifications shall be either printed or typed.

• (3) All plans except the plans referred to in section 3 and all specifications shall be signed by a professional engineer of recognized standing in Canada satisfactory to the Director.

Fixation of Construction Costs

• 19 (1) Upon completion of the initial development including any substantial addition thereto or any additional lands or rights-of-way acquired within the severance line, a sum shall be fixed by the Minister that, in conformity with these Regulations, shall represent the actual cost of the development.

• (2) A final licence shall not be issued to an interim licensee until he has fully complied with the requirements of this section and sections 17 and 18 in so far as they relate to the completion of the initial development.

• (3) For the purpose of determining whether an interim licensee’s progress in constructing works has been sufficient to comply with the terms of his interim licence and of these Regulations, or for determining whether any part of the interim licensee’s guarantee deposit is repayable or for any other purpose, but not oftener than once in a calendar year, the Minister may require that the actual cost shall be established of such part of the initial development as has been constructed to a certain date.

• (4) For the purpose of establishing the actual cost of a part of an initial development under subsection (3), an interim licensee shall promptly submit all figures and data in his possession, and a sum shall be fixed to represent the cost of that part of the initial development in the manner referred to in subsection (1) for fixing the cost of the entire initial development.

• (5) No part of an interim licensee’s guarantee deposit claimed to be repayable under subsection 13(3) shall be refunded until the licensee fulfils all the requirements of this section.

Operation Under Interim Licence

• 20 (1) Where the works are put into operation before the issuance of the final licence, an interim licensee shall, pending the issuance of such final licence and until otherwise agreed upon, maintain and operate the works to the satisfaction of the Director and shall at no time raise or permit to be raised the level of the waters of any river, lake or other body of water higher than the elevation to be fixed from time to time by the Director, and shall abide by all regulations which may from time to time be promulgated by the Minister for the control of the flowage of any waters for general conservation purposes.

• (2) From the date of the initial production of power from the development until the date set in the interim licence for the completion of the initial development, an interim licensee shall pay rental for water used in the production of power at the rates set out in the interim licence.

• (3) From the date set in the interim licence for the completion of the initial development, an interim licensee shall pay rental for water used in the production of power at the rates set out in subsection 30(7).

• (4) In addition to any obligations specifically imposed upon interim licensees, every interim licensee shall, in so far as his position for the time being is similar to that of a final licensee, observe and comply with all the provisions of these Regulations applicable to final licensees with respect to the use and occupancy of public lands and waters, the maintenance and operation of his works and the carrying on of his undertaking.

Amending Interim Licence

21 Subject to these Regulations,

• (a) the terms of any interim licence may be amended by a supplementary licence, and

• (b) the 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 that supplementary licence or writing, and shall not operate to alter or amend or in any way whatever be a waiver of any other part, condition or provision of the original interim licence.

Extension of Time

• 22 (1) Where, by reason of engineering difficulties that could not reasonably have been foreseen or by other peculiar or special causes beyond his control other than the want of funds, an interim licensee has been prevented from

  • (a) filing general construction plans,

  • (b) commencing construction,

  • (c) expending sums required to be expended within any stated period, or

  • (d) completing the initial development,

  the Minister may grant an extension of time for completing those requirements.

• (2) The maximum extension that may be granted for the filing of general construction plans, for the commencement of construction work or for the expenditure of the sums required in an interim licence within the first and second years of the construction period, or within such other stated times as are specified in the interim licence, is 12 months.

Penalties for Default by Interim Licensee

• 23 (1) The Minister shall cancel an interim licence when the interim licensee fails

  • (a) to file satisfactory general construction plans within the time required;

  • (b) to commence the actual construction of the initial development in good faith within the time specified; or

  • (c) to make substantial and satisfactory progress in the first year of the period allowed for the construction of the initial development.

• (2) Where an interim licensee has in large part satisfactorily performed the requirements of his licence but fails

  • (a) to expend on the initial development, within any of the stated periods set out in his interim licence, the amount required by that licence to be so expended,

  • (b) to complete the initial development within the time specified, or

  • (c) to comply with any other term or condition of his interim licence or of these Regulations,

  after 60 days notice has been given to the licensee and he has been given an opportunity to be heard, the Minister may cancel the interim licence or take such other action or make such order as in his opinion and subject to these Regulations is suitable.

• (3) Where an interim licence is cancelled under subsection (2), the interim licensee may be granted a new interim licence in priority over all other applicants for the development of the site, but the new licence 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, in so far as applicable, the provisions of these Regulations.

• (4) Where an interim licence is cancelled by the Minister under this section but, in the opinion of the Minister, the interim licensee is entitled to compensation for any works constructed on public lands or for any plans filed by him in pursuance of his interim licence, the Minister, with the approval of the Governor in Council, may make such order for payment of compensation as he considers just.

• (5) In computing the amount of compensation to be paid under subsection (4), the Minister shall consider the damage to the public interest by reason of the default or failure of the interim licensee, and the compensation, if any, shall not exceed the actual cost of the works or plans determined in accordance with section 19 or the compensation that would be determined by applying the principles set out in subsection 28(2).

• (6) Where an interim licence is cancelled under this section and the interim licensee is not granted a new interim licence, the Minister may make any disposition of the public lands and the works thereon formerly occupied or constructed by the interim licensee pursuant to the terms of his interim licence, as the Minister may deem suitable.

• (7) Where an interim licence is cancelled under this section, the rights of Her Majesty in respect of the possession, occupation and use of any lands, works, structures, equipment or properties, other than public lands and works located thereon, 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 lands, works, structures, equipment and properties, shall be determined in accordance with section 28.