Montana labor news., 1948-12-16
MONTANA POWER
ORDERED TO
GET LICENSES
By w. W. LUKE" WRIGHT
in Great Fall Tribune

observation-disclosures Power Co. has
been ordered by the federal power COM
mission to make application within 60
days Tor federal licenses for It's hydro
electric developments on the Missouri
and Madison rivers, according to word
received here irom Washington re-
Gently.
The commissions unanimous opinion,
rendered two years following c%onclu-
sion OF hearings i'll Helena. apparently
is more sweeping than the findings in
October. 1917, of Glen r. Law, presid~
ing examiner for the commission at the
sessions here.
Roy II. Glover OF Butte. one OF the
power c%ompany's counsel in the field
hearings and subsequent oral argu-
ments in Washington before the exami-
ner and the full commission. said he
has not been informed officially OF the
commissions opinion and order and
would have no comment until he reads
the decision.
Terms Of Act
Under terms OF the federal power
act, the company may comply with the
order or ask for a rehearing by the
commission within 80 days. Ii the re-
hearing should be asked and denied,
the company would have the right TO
ask a review by the circuit court of
appeals either in the ninth district i'll
San Francisco or in the court Of ap-
peals i'll Washington, d. c. ANY de-
cision OF the appellate court would be
subject to review by the supreme court
in Washington.
a summary OF the power commits
sion's opinion as received here states
the commission held generally in line
with the examiners report that the
seven plants on the Missouri river, four
near Great Falls and three in the
Helena area. are maintained and oper-
ated in a portion Of the "~navigablc
waters OF the United States" but over
ruled the examiners conclusion that
the company's Hotter project was being
operated under a valid permit granted
by the secretaries of agriculture and
interior and expiring December 81,
1903.
Two projects on the Madison river,
the Madison power plant and Hebgen
reservoir, also were held to require
licenses. The examiner held this ques-
ton did not come within the scope of
the original order to show cause issued
by the commission in 1913. The con-
pany has made separate application for
a federal license for its Madison power
project after withdrawing a joint appli-
cation for Hcbgen and Madison. The
power commission never has recognized
this withdrawal.
The commission opinion held the
Missouri river actually was used in
interstate commerce from points above
Great Falls rather than merely having
been susceptible to such use, thus sup
porting commission counsel contention
it legally was navigable throughout its
length. The power company argued in
hearings here that the historic head Of
navigation was at Fort Benton, well
downstream from any OF its dams, and
that under the OBSERVATION-DISCLOSURES
Pick-Sloan plan, the actual head Of
navigation so far as current conditions
are concerned is at Sioux City.
The order says. "Sincc each Of the
nine Developments occupies without
authority a 'navigable water or public
lands or both. and since all affect the
navigablc capacity Of a 'navigable
water the commission has authority
under the act to require they be oper-
ated and maintained only if licensed"
a 'navigable water OF the United
States is a legal term covering streams
over which congress maintains juris-
dlction and does not necessarily imply
n~avigability in fact.
Order Resisted
The power company resisted the COM
mission order to take out licenses on
all except the Madison plant on the
grounds either there wa no federal
jurisdiction or that. in the case of
plants and reservoirs located on public
lands, proper permits now are held
Federal licensing requires a company
to observe commission-approved ac-
counting methods. establishing a de-
probation schedule according to terms
OF the federal power act and giving
the federal government an option to
purchase the privately-owncd project
at the end OF 50 years