Dominion Water Power Regulations — 49
49 (1) Where, in the opinion of the Minister, it appears feasible to establish an enlarged or more comprehensive development of the water-power in any stream at or near the side occupied by a licensee that will supersede the existing development of the licensee, the Minister may hold a hearing thereon. (2) The licensee and all other interested parties shall be given not less than 60 days notice of the hearing referred to in subsection (1), and an opportunity of being heard. (3) Where the Minister considers an enlarged or more comprehensive development of water-power referred to in subsection (1) to be in the public interest, he may offer the licensee a new interim licence for the carrying out of the enlarged or more comprehensive development. (4) The interim licence offered under subsection (3) shall in every case be subject to the regulations then in force, but in granting the interim 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. (5) Where, within 12 months after the offer of a licence is made under subsection (3), the licensee fails to accept the offer and in good faith to begin and carry on to completion the enlarged or more comprehensive development, the Minister may, subject to approval by the Governor in Council, order the existing licence terminated. (6) Where, pursuant to subsection (5), the Minister orders an existing licence terminated, the respective rights of Her Majesty and the licensee in the lands, works and properties connected with the undertaking are the same as those set out in section 28; except that the Minister, in determining the compensation to be paid to the licensee may add such bonus or additional bonus to the amount payable according to section 28, as will in the opinion of the Minister, be proper under the particular circumstances of the case, not to exceed, however, three-quarters of one per cent of the amount payable under section 28 for each full year of the unexpired term of the licence, and not to be less than five per cent of that amount. (7) Where more than one existing plant or site is affected by the enlarged or more comprehensive development, the Minister may receive proposals from all the licensees or occupants of those sites for carrying out the proposed new development and to offer to each in turn, selecting first that one whose proposal appears to be most in the public interest, or to all conjointly, an interim licence, subject to the regulations then in force, for the carrying out of the proposed new development. (8) Where a licence is granted pursuant to subsection (7), the existing licences 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 subsection (6). (9) Where, within the time specified, each of the licensees mentioned in subsection (7) in turn fails to accept the offer of a new licence and to begin and to carry on to completion the proposed new works, the Minister, subject to approval by the Governor in Council, may order all the 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).