2023 New York Laws › ENV - Environmental Conservation › Article 21 - Pollution Control Compacts › Title 17 - Delaware River Basin Water Commission Compact › 21-1701 - The Delaware River Basin Water Commission Compact Approved.

§ 21-1701. The Delaware river basin water commission compact approved.
The authority of the Governor to enter into a compact on behalf of the
state  of  New  York  with the states of Delaware and New Jersey and the
commonwealth of Pennsylvania in substantially the following form,  which
authority  was  first  conferred  by chapter 701 of the laws of 1952, is
hereby continued:
COMPACT
BETWEEN THE STATES OF DELAWARE, NEW JERSEY
AND NEW YORK AND THE COMMONWEALTH OF
PENNSYLVANIA CREATING THE DELAWARE
RIVER BASIN WATER COMMISSION AND
DEFINING ITS POWERS AND DUTIES
Whereas, the peoples of the States of Delaware, New  Jersey,  and  New
York  and the Commonwealth of Pennsylvania have a common interest in the
waters of the Delaware River Basin; and
Whereas, it is desirable that the water and  water  resources  of  the
Delaware  River  and its tributaries be developed, utilized, controlled,
and conserved for the benefit of all the people; and
Whereas, the United States Supreme  Court,  in  its  decision  in  the
Delaware  River  Case  (283  U.S.  336),  established  the  principle of
equitable apportionment of the waters of the upper Delaware River Basin;
and
Whereas, political subdivisions and metropolitan areas in  the  States
of  New  Jersey  and  New York and the Commonwealth of Pennsylvania have
been confronted constantly with the  problem  of  meeting  existing  and
prospective requirements of the people within their respective areas for
obtaining  and maintaining an adequate and satisfactory supply of water,
both for domestic and industrial purposes; and
Whereas, it is essential that there be maintained an adequate  minimum
flow  in the Delaware River for the protection of public health, for the
benefit of industry and of fisheries, such as oysters, clams  and  other
shellfish,  for  animal  and  aquatic  life, for recreation, for general
sanitary conditions, for the dilution and abatement  of  pollution,  and
for the prevention of undue salinity; and
Whereas,  for  the  purpose  of  promoting  interstate  cooperation in
various fields of governmental operations,  including  the  utilization,
control and conservation of water resources of interstate river systems,
the States of Delaware, New Jersey, and New York and the Commonwealth of
Pennsylvania  each  has  created  and  now  maintains  a  Commission (or
Committee) on Interstate Cooperation,  which  Commissions  have  jointly
organized  and  established and are now maintaining, in cooperation with
each of the others, a joint advisory  board  known  as  "The  Interstate
Commission  on  the  Delaware  River Basin" for the purpose, among other
activities, of formulating and recommending integrated programs for  the
development,   utilization,   control  and  conservation  of  the  water
resources of the Delaware River Basin; and
Whereas, upon the recommendation of the said Interstate Commission  on
the Delaware River Basin, submitted through the Commission on Interstate
Cooperation  of  each  of  the States concerned, the legislatures of the
States of New Jersey and New York and the Commonwealth of  Pennsylvania,
by  reciprocal  legislation,  enacted  laws  at their 1949 Sessions (New
Jersey Laws of 1949, Chap. 105;  New  York  Laws  of  1949,  Chap.  610;
Pennsylvania  Laws of 1949, Act 475), authorizing and directing the said
Interstate Commission on the Delaware River Basin to  make  surveys  and
investigations   to   determine   and  report  on  the  feasibility  and
advisability of the future construction of an integrated  water  project

designed,  among  other purposes, to meet the combined prospective water
supply requirements of political subdivisions and metropolitan areas  in
the said States, both within and outside the said Basin, empowering such
Commission  to enter upon lands, structures, and waters for the purposes
of such surveys and investigations,  making  an  appropriation  to  such
Commission,  and  requiring  a full report of its proceedings, findings,
conclusions, recommendations, and such draft or drafts of legislation as
it may deem necessary or proper for enactment by such States; and
Whereas,  based  upon  a  full  report  submitted  by  the  Interstate
Commission  on  the  Delaware  River  Basin  setting forth the findings,
conclusions,  and  recommendations  resulting  from  its   surveys   and
investigations,  it  is  the opinion of that Commission, concurred in by
each of the aforesaid Commissions on Interstate  Cooperation,  that  the
future  construction  of integrated water projects in the Delaware River
Basin is feasible, advisable, and  urgently  needed,  and  can  best  be
accomplished  by and through a joint administrative agency created by an
agreement or compact between the States of Delaware, New Jersey, and New
York and the Commonwealth of Pennsylvania; and
Whereas, the Congress of the United States, by its joint Resolution of
March 1, 1911 (36 Stat. 961), relating to the  conservation  of  forests
and  water  supply  and  protection  of  forests from fire, gave general
consent to encourage the making of agreements or compacts between States
for the purpose of conserving the forests and the water supply;
Now, Therefore, the Commonwealth of Pennsylvania and the States of New
Jersey and New York (and the State of  Delaware  if  and  when  Delaware
becomes  a  signatory  State) do hereby solemnly covenant and agree each
with the other as follows:
ARTICLE 1
CREATION AND PURPOSES OF THE COMMISSION
1. There is created hereby a body corporate and politic with perpetual
succession, to be known as The Delaware  River  Basin  Water  Commission
(hereinafter in this compact referred to as the Commission), which shall
constitute  a  public  corporate  instrumentality of the Commonwealth of
Pennsylvania and of the States of New Jersey and New York, (and  of  the
State  of  Delaware if and when Delaware becomes a signatory State), and
of each of them, to exercise an essential governmental function of  each
of  the  signatory  States,  for  the purposes of developing, utilizing,
controlling, and conserving the water resources of  the  Delaware  River
Basin in order to assure an adequate water supply:
(a)  to  meet  the  domestic  and industrial requirements of political
subdivisions and metropolitan areas within those States;
(b) to provide an adequate minimum flow in the Delaware River for  the
protection  of  public  health,  for  the  benefit  of  industry  and of
fisheries, such as oysters, clams, and other shellfish, for  animal  and
aquatic  life,  for recreation, for general sanitary conditions, for the
dilution and abatement of pollution, and for  the  prevention  of  undue
salinity; and
(c)  to  provide  for  such  other  uses of water as navigation, flood
control, production of hydro-electric power, and related uses.
2. In order to effectuate the foregoing purposes, the Commission shall
determine the exact locations and character of, formulate plans for, and
determine all matters in connection with,  the  construction,  operation
and  maintenance  of dams, reservoirs, and appurtenant structures within
the Delaware River Basin as herein defined for the storage and effective
regulation  of  the  water  resources  thereof,  and  treatment  plants,
aqueducts,  conduits, or other facilities, and shall finance, construct,

operate, and maintain such  structures  and  facilities  as  are  deemed
necessary  to  the  following  project,  or  a  reasonable  modification
thereof, that is to say: (a)  a  dam  across  the  West  Branch  of  the
Delaware  River  near  Cannonsville,  New  York;  (b)  a  dam across the
Delaware River near Barryville, New York; (c) a dam across the Neversink
River near Godeffroy, New York; (d) a dam across the Delaware River near
Wallpack Bend; (e) a dam across the East Branch of  the  Delaware  River
near  Fish  Eddy;  (f)  a dam across Flat Brook near Flatbrookville, New
Jersey; (g) an aqueduct connecting the  reservoir  created  by  the  dam
across  the Delaware River near Barryville, New York, with the reservoir
on the Neversink River created by a dam near Godeffroy, New York; (h) an
aqueduct, with equalizing reservoir en route,  to  convey  a  supply  of
water  from the reservoir on the Neversink River created by the dam near
Godeffroy, New York, to municipalities in northern New Jersy and to  New
York  City;  and (i) such dams, reservoirs, tunnels, conduits, and other
facilities as may be required to furnish water  supply  to  Philadelphia
and adjacent areas.
3.  For  the  purpose  of  this  compact the "Delaware River Basin" is
defined as all that land from which surface water drains naturally  into
the Delaware River.
ARTICLE II
COMMISSIONERS
1.  The  Commission shall consist of three members from each signatory
State, who  shall  be  citizens  and  residents  thereof  and  shall  be
appointed  by the Governor of that State, by and with the consent of its
Senate, unless its Constitution otherwise provides.
2. The term of  each  such  commissioner  shall  be  for  five  years,
provided,  however,  that  the  terms  of  the three commissioners first
appointed by each state shall be as  follows,  to  wit:  one  for  three
years,  one  for  four  years, and one for five years. All commissioners
shall continue to hold office after the  expiration  of  the  terms  for
which  they  shall have been appointed until their respective successors
shall have been appointed and qualified, but no period during which  any
commissioner  shall  hold over shall be deemed to be an extension of his
term of office for the purpose  of  computing  the  date  on  which  his
successor's term expires.
3.  Any  commissioner  may  be  removed  or  suspended  from office as
provided by the Constitution or applicable law of  the  State  which  he
represents.     In  the  event  of  a  vacancy  in  the  office  of  any
commissioner, from any reason or cause, such vacancy shall be filled  by
appointment   by  the  Governor  of  the  State  concerned,  subject  to
confirmation as above provided, for the unexpired term.
4. The commissioners shall serve without  compensation  but  shall  be
paid their actual and necessary expenses incurred in and incident to the
performance  of  their  duties,  provided,  however,  that  the  elected
officers of the Commission shall receive such  compensation  as  may  be
fixed by the Commission.
5.  The  Federal  Government  may  be represented on the Commission by
three advisory members who shall serve  without  compensation  from  the
Commission.  The  Constitution and other laws of the United States shall
apply to the appointment or removal of such  advisory  members  and  the
term or terms during which they shall serve.
ARTICLE III
OFFICERS, EMPLOYEES, MANAGEMENT AND PROCEDURE
1.  The  commissioners  shall have charge of the Commission's property
and affairs. The Commission shall adopt an official  seal  and  suitable
by-laws  and  shall  promulgate rules and regulations for its management
and control.
2.  A  majority  of  the commissioners from the signatory States shall
constitute a quorum for the transaction of business at  any  meeting  of
the  Commission.  No  action  shall  be taken by the Commission unless a
majority of the members from each state are present at a meeting of  the
Commission  and  no action so taken, including any action which, for the
purposes of the project authorized by paragraph two of Article I of this
compact or for any expansion thereof or any  new  project,  imposes  any
financial  obligation  on  any  signatory  State  or  on  any  political
subdivision therein or which allocates water for water supply or for the
maintenance of an adequate minimum flow to any signatory  State  or  any
political  subdivision  therein,  shall be binding or effective unless a
majority of the members from  each  State  shall  have  voted  in  favor
thereof;  provided,  however, that no action taken at any meeting of the
Commission by any member shall have force or effect until  the  Governor
of the State, which such member represents, shall have an opportunity to
approve  or veto the same. For the purpose of procuring such approval or
veto, the secretary or other officer of the Commission in charge of  the
minutes  of  the  proceedings  of  the  Commission shall transmit to the
Governors of the signatory States at their official offices a  certified
copy of the minutes of every meeting of the Commission as soon after the
holding  of  such  meeting  as  such  minutes  can  be written out. Each
Governor shall, within five days after  such  minutes  shall  have  been
delivered  at  his official office, cause the same to be returned to the
Commission either with his approval or  with  his  veto  of  any  action
therein  recited  as  having  been taken by any member of the Commission
appointed from his State, provided, however, that if  a  Governor  shall
not  return  the  said  minutes  within  the  said  period  then  at the
expiration thereof any action therein recited will have full  force  and
effect  according  to the wording thereof. If a Governor within the said
period returns the said minutes with a veto against the  action  of  any
member  of  the  Commission from his State as recited therein, then such
action of such member shall be null and void. A governor  may  by  order
filed  with the secretary of the Commission relieve the members from his
State from the duty of procuring his approval of their action  upon  any
particular  matter  or  class of matters, and thereupon the secretary or
other officer in charge  of  the  minutes  of  the  proceedings  of  the
Commission shall be relieved from reporting the same to him.
3. The Commission shall elect annually a chairman and a vice-chairman.
The Commission shall appoint a secretary and a treasurer, who may be but
need  not be members of the Commission. The secretary shall be custodian
of  the  records  of  the  Commission  with  authority  to   affix   the
Commission's  official seal and to attest to and certify such records or
copies thereof. Disbursements by the Commission shall be valid only when
authorized by the Commission.
4. The  Commission  shall  appoint  and  at  its  pleasure  remove  or
discharge  counsel,  an  executive  director,  engineers, and such other
agents and employees as it may require for the performance of the powers
and functions of the Commission. The Commission shall determine and  fix
the duties and compensation of its appointed officers and employees, and
shall fix the compensation, if any, of its elected officers.
5.  The  Commission  may  establish  and  maintain one or more offices
within the area of the signatory  States  for  the  transaction  of  its
business  and may meet at any time or place, but must meet at least once
each year.
6. The Commission shall keep accurate accounts  of  all  receipts  and
disbursements.  The  accounts  of  the  Commission  shall be open at any
reasonable time for inspection  and  audit  by  such  representative  or
representatives  of  the  respective  signatory  States  as  may be duly
constituted  for  that  purpose, and for inspection by others who may be
authorized by the Commission.
7. The Commission shall make an annual report to the Governor and  the
legislature  of  each  signatory  State  setting  forth  in  detail  the
operations and transactions conducted by it pursuant  to  this  compact,
and  shall  make recommendations for any legislative action deemed by it
to be advisable, including amendments to the statutes of  the  signatory
States which may be deemed necessary to carry out the intent and purpose
of this compact.
8.  No  member,  agent  or  employee  of  the  Commission shall have a
personal interest,  either  directly  or  indirectly,  in  any  contract
entered  into by the Commission, including the sale to the Commission of
any real or personal property.  A  violation  of  this  provision  shall
constitute  a  misdemeanor  and,  upon  trial  and  conviction, shall be
punishable in accordance with the laws of the signatory State  in  which
the  offense  is  committed,  but,  in  no  event,  shall the punishment
therefor exceed imprisonment for more than one year or a  fine  of  more
than five hundred dollars, or both.
9. No member, agent or employee of the Commission, while acting within
the  scope  of  his  authority,  shall be personally liable for any acts
performed in the execution of the powers expressly  authorized  by  this
compact.
ARTICLE IV
GENERAL POWERS AND LIABILITY TO SUIT
1.  For the effectuation of its authorized purposes, the Commission is
hereby granted and shall have the following powers in addition  to  such
powers as may be provided for elsewhere in this compact, to wit:
(a) To sue in its own name in Federal and State courts.
(b)  To  acquire,  own,  hire,  use,  operate, and dispose of personal
property.
(c) To acquire, own, use, and  operate  real  property  and  interests
therein, to make improvements thereon, and to convey, lease or otherwise
dispose  of  any  such  property  no longer necessary for the authorized
purposes of the Commission.
(d) To grant, by lease or  otherwise,  the  use  of  any  property  or
facility  owned  or  controlled  by  the Commission, and to make charges
therefor.
(e) To exercise the right of eminent domain, as provided in Article  V
of this compact.
(f) To borrow money, make and issue from time to time negotiable bonds
and notes, to fund and refund the same, and to provide for the rights of
the  holders of its bonds and notes, as provided in Article XIII of this
compact.
(g) To establish, levy, and collect,  without  being  subject  to  the
supervision  or regulation of any commission, board, bureau or agency of
any of the signatory States  or  political  subdivisions  thereof,  such
rentals,  fees  or other charges for use of the facilities of or for the
services rendered by the Commission, and to revise such  rentals,  fees,
or  other  charges  as  may  be  necessary  to  assure revenues at least
adequate to defray the expenses of operation and maintenance of the said
facilities, to pay the interest on and principal of any bonds  or  other

obligations  of the Commission, and to establish any reasonable reserves
therefor.
(h) To accept such payments, appropriations, grants, gifts, loans, and
other  funds, properties, and services as may be made available to it by
the Federal government or any of its agencies, by  the  governments  and
political  subdivisions of the signatory States, or by private agencies,
corporations, or individuals.
(i) To conduct surveys of dam, reservoir, treatment  plant,  aqueduct,
or  conduit  locations  and  study  subsurface  conditions affecting the
selection of such locations. Members of  the  Commission  and  its  duly
accredited  agents, engineers, contractors, and employees may enter upon
any lands, structures, and waters within any of the signatory States for
such purposes or whenever it is deemed necessary for any of the purposes
authorized by this compact,  and  such  entry  shall  not  be  deemed  a
trespass  or  an  entry  under any condemnation proceedings which may be
then pending. In the exercise of this power, the Commission  shall  save
harmless  the  signatory States from, and be responsible to any property
owner for, any damage caused by surveys or by  entry  on  lands  or  any
other damage resulting therefrom, and the Commission shall require every
contractor  or  other  agency  performing  work  for  said Commission to
provide security for the faithful performance of any contract  with  the
Commission  and to save harmless the Commission and the signatory States
from damages caused as aforesaid.
(j) To determine the exact locations and character  of,  to  formulate
plans  for,  and  to  determine  all  matters  in  connection  with, the
construction, operation, and maintenance of the  dams,  reservoirs,  and
appurtenant structures within the Delaware River Basin as herein defined
for the storage and effective regulation of the water resources thereof,
and  treatment  plants, aqueducts, conduits, and other facilities deemed
necessary or convenient to  effectuate  the  structures  and  facilities
described  in  paragraph 2 of Article I of this compact, and to finance,
construct, operate and maintain such structures and facilities.
(k) To prepare, upon the request of two or more signatory  States,  or
upon  its  own  initiative,  in  appropriate  form for submission to the
legislatures of the signatory States, a report covering plans  for,  and
the  method  of  financing  of, any new project, or any expansion of the
project authorized and described in paragraph 2 of  Article  I  of  this
compact;  and,  upon  approval of such report by the legislatures of the
signatory States and upon approval by the appropriate agency or agencies
of the State or States of the detailed plans and specifications, all  in
accordance  with  the  provisions  of  Article  XI  of  this compact, to
finance, construct, operate and maintain such new or expanded project.
(l) To determine  and  to  allocate,  subject  to  the  provisions  of
paragraph 2 of Article III, to each of the signatory States an equitable
apportionment  of  available  water supply in order to meet domestic and
industrial requirements of political subdivisions and metropolitan areas
therein.
(m) To release, subject to the provisions of Article IX, the  quantity
of  water  required  to be released from storage in order to maintain an
adequate minimum flow in the Delaware River during periods of  low  flow
therein for the protection of public health, for the benefit of industry
and  of  fisheries,  such  as  oysters,  clams, and other shellfish, for
animal  and  aquatic  life,  for  recreation,   for   general   sanitary
conditions,  for  the  dilution  and abatement of pollution, and for the
prevention of undue salinity.
(n) To provide for such other uses of the water and water resources of
the Delaware River Basin as navigation,  flood  control,  production  of

hydro-electric  power,  and  related  uses,  and to cooperate with other
appropriate agencies for that purpose.
(o)  To  develop, or to provide for the development of, subject to the
provisions of Article X, hydro-electric power and energy inherent in the
development and use of the waters to  which  this  compact  relates  and
incident to the control and conservation of such waters.
(p)  To  make,  enter  into,  and  perform  contracts with the Federal
government, with any of the signatory States or any of  their  political
subdivisions,  with public or private agencies, and with corporations or
individuals, including (1) contracts for the sale  of  water  for  water
supply,  for  the  sale  of  falling  water and hydro-electric power and
energy, subject to the provisions of Article X, or for  other  services,
(2)  contracts  for  payments  by the signatory States, or the political
subdivisions thereof, for benefits resulting from  water  released  from
storage  in  order  to maintain an adequate minimum flow in the Delaware
River during periods of low flow therein, and (3)  any  other  contracts
necessary  or  incidental  to  the  performance  of  its  duties and the
execution of its powers under this compact.
(q) To take all measures necessary to guard and protect the  areas  in
which its facilities or developments are located or in which any work of
construction  under  authority  of  this  compact is in progress, and to
protect its facilities and developments  from  damage  by  pollution  or
otherwise,  and  to  appoint  a suitable number of persons as guards for
such purposes. Such persons shall possess the power and authority  of  a
constable, peace officer, or police officer and shall have full power to
serve  as  such  officers within the signatory States and to enforce the
provisions of such laws thereof as are applicable  to  the  purposes  of
this paragraph.
(r) To do all acts and things necessary or convenient to carry out the
powers expressly granted in this compact.
2.  The  signatory  States consent to suits, actions or proceedings of
any form or nature at law, in equity or otherwise (including proceedings
to enforce  arbitration  agreements)  against  the  Commission,  and  to
appeals therefrom and reviews thereof, except as hereinafter provided in
subparagraphs (a) and (b) hereof.
(a)  The  foregoing consent does not extend to civil suits, actions or
proceedings for the recovery of statutory penalties.
(b) The foregoing  consent  does  not  extend  to  suits,  actions  or
proceedings  for  judgments, orders or decrees restraining, enjoining or
preventing the Commission from committing or continuing  to  commit  any
act  or  acts,  other than suits, actions or proceedings by the attorney
general of any of the signatory States. The attorney general of each  of
the  signatory  States is hereby authorized to bring such suits, actions
or proceedings in his discretion on behalf  of  any  person  or  persons
whatsoever  who  requests  him  so to do except in the cases excluded by
subparagraph (a) hereof; provided, that in  any  such  suit,  action  or
proceeding, no judgment, order or decree shall be entered except upon at
least  two  days' prior written notice to the Commission of the proposed
entry thereof.
(c) The foregoing consent is granted upon the condition that venue  in
any  suit,  action  or  proceeding  against the Commission shall be laid
within a county or a judicial district, established by any of  the  said
signatory  States  or  by  the  United  States,  and  situated wholly or
partially within one of the signatory States. The  Commission  shall  be
deemed to be a resident of each such county or judicial district for the
purpose  of  such suits, actions or proceedings. Although the Commission
is engaged in the performance of governmental functions,  the  signatory
States consent to liability on the part of the Commission in such suits,

actions  or proceedings for tortious acts committed by it and its agents
to the same extent as though it were a private corporation.
* (d)  The  foregoing  consent  is granted upon the condition that any
suit, action or proceeding prosecuted or maintained hereunder  shall  be
commenced  within one year after the cause of action therefor shall have
accrued, and upon the further condition that in the case  of  any  suit,
action or proceeding for the recovery or payment of money, prosecuted or
maintained  hereunder, a notice of claim shall have been served upon the
Commission by or on behalf of the plaintiff or plaintiffs at least sixty
days before such suit, action or proceeding is commenced. The provisions
of this subparagraph shall not apply to claims arising out of provisions
of any workmen's compensation law of any of the signatory States.
* NB Effective until concurrence by  members  of  the  Delaware  River
Basin Water Commission
* (d)  The  foregoing  consent  is granted upon the condition that any
suit, action or proceeding prosecuted or maintained hereunder  shall  be
commenced  within  one  year  and  ninety days after the cause of action
therefor shall have accrued, and upon the further condition that in  the
case  of  any  suit, action or proceeding for the recovery or payment of
money, prosecuted or maintained hereunder, a notice of claim shall  have
been  served  upon  the  Commission  by or on behalf of the plaintiff or
plaintiffs within the time limit established by and in  compliance  with
section  fifty-e  of  the  general municipal law. The provisions of this
subparagraph shall not apply to claims arising out of provisions of  any
workmen's compensation law of any of the signatory States.
* NB  Effective  upon concurrence by the members of the Delaware River
Basin Water Commission
(e) The notice of claim required by subparagraph (d) hereof  shall  be
in  writing,  sworn to by or on behalf of the claimant or claimants, and
shall set forth (1) the name and post office address  of  each  claimant
and  of  his attorney, if any, (2) the nature of the claim, (3) the time
when, the place where and the manner in which the claim arose,  and  (4)
the items of damage or injuries claimed to have been sustained so far as
then  practicable.  Such  notice  may  be  served in the manner in which
process may be served, or in lieu thereof, may  be  sent  by  registered
mail to the Commission at its principal office. Where the claimant is an
infant  or is mentally or physically incapacitated and by reason of such
disability no notice of claim is filed or  suit,  action  or  proceeding
commenced within the time specified in subparagraph (d) hereof, or where
a  person  entitled  to  make a claim dies and by reason of his death no
notice of claim is filed or suit, action or proceeding commenced  within
the  time  specified in subparagraph (d) hereof, then any court in which
such suit, action or proceeding may be brought  may  in  its  discretion
grant  leave  to  serve  the  notice  of claim and to commence the suit,
action or proceeding within a reasonable time but in  any  event  within
three  years  after  the  cause  of action accrued. Application for such
leave must be made upon an affidavit showing the particular facts  which
caused  the  delay  and  shall  be accompanied by a copy of the proposed
notice of claim if such notice has not been served, and such application
shall be made only upon notice to the Commission.
(f) The commissioners, officers or employees of the  Commission  shall
not be subject to suits, actions or proceedings for judgments, orders or
decrees  restraining,  preventing or enjoining them in their official or
personal capacities from committing or continuing to commit any  act  or
acts  on  behalf  of  the  Commission  other  than  suits,  actions  and
proceedings brought by the attorney general  of  any  of  the  signatory
States.  The  attorney general of each of the signatory States is hereby
authorized to bring such suits, actions or proceedings in his discretion

on behalf of any person or persons whatsoever who requests him so to  do
except  in the cases excluded by subparagraph (a) hereof; provided, that
in any such suit, action or proceeding brought by an  attorney  general,
no  judgment,  order or decree shall be entered except upon at least two
days' notice to the defendant of the proposed entry thereof.
ARTICLE V
CONDEMNATION PROCEEDINGS
1. The commission shall have the power, except as hereinafter provided
and limited, to acquire by condemnation lands, lands lying under  water,
rights  in  land,  riparian  rights,  water  rights,  waters,  and other
property within the Delaware River basin as defined herein  or  required
for  aqueducts, or conduits deemed necessary or convenient to effectuate
the structures and facilities described in paragraph two of Article I of
this compact. This grant of the power of eminent domain includes, except
as hereinafter provided and limited, but is not limited to, the power to
condemn property, within the Delaware river basin as defined  herein  or
required  for  aqueducts,  or conduits deemed necessary or convenient to
effectuate the structures and facilities described in paragraph  two  of
Article  I of this compact, owned or held by a political subdivision for
municipal or  public  purposes,  by  a  public  district,  by  a  public
corporation  or by a public authority, and includes as well the power to
condemn any property already devoted to a public purpose, by  whomsoever
owned or held, other than property owned or held by the signatory States
and  other than property owned or held by the City of New York, wherever
situate, for its water supply or for its water  supply  system.  Nothing
herein  shall  be  deemed  to  include  the  power to condemn the lands,
structures or properties necessary or convenient to the exercise of  the
rights reserved in Article XVI of this compact.
2.  Such power shall be exercised in accordance with the provisions of
such special law, specifically applicable to the said Commission, as may
now or hereafter be in force  in  the  signatory  State  in  which  such
property  is  located; provided, that if there be no such special law in
force in such State, condemnation proceedings  shall  be  in  accordance
with  the  provisions of such applicable general condemnation law as may
be in force in such State.
3. Any award or compensation for the taking of  property  pursuant  to
this  Article shall be paid by the Commission, and none of the signatory
States nor any agency, instrumentality, or political subdivision thereof
shall be liable for such award or compensation.
ARTICLE VI
CONVEYANCE OF LANDS AND RELOCATION OF PUBLIC FACILITIES
1. The signatory States hereby consent to  the  acquisition,  use  and
occupation  by  the  Commission,  pursuant to the laws of the respective
States, of any real property within the said States,  or  any  of  them,
including  lands  lying  under water and lands already devoted to public
use, which may  be  or  may  become  necessary  or  convenient  for  the
construction,  operation, and maintenance of dams, reservoirs, treatment
plants,  aqueducts,  conduits,  and  other  structures  or   facilities,
approved  in  accordance  with the provisions of this compact; provided,
such lands and property are located within the Delaware River  Basin  as
defined  herein  or required for aqueducts, or conduits deemed necessary
or convenient to effectuate the structures and facilities  described  in
paragraph 2 of Article I of this compact.
2.  The  signatory  States hereby authorize their respective officers,
agencies, departments, commissions or  bodies  having  jurisdiction  and
control  over  real  property owned by the signatory States to convey in
accordance with the laws of the respective States,  to  the  Commission,
with  or  without  consideration,  any  such  real  property  as  may be
necessary or convenient to the effectuation of the  authorized  purposes
of the Commission.
3.  Each  political  subdivision  of  each  of the signatory States is
hereby authorized and empowered, notwithstanding any contrary  provision
of  law,  to  grant  and convey to the Commission, upon the Commission's
request, but not otherwise, upon reasonable terms  and  conditions,  any
real property owned by such political subdivision, including lands lying
under  water  and  lands  already  devoted  to  public use, which may be
necessary or convenient to the effectuation of the  authorized  purposes
of the Commission.
4.  The term "real property" as used in this compact shall include any
and all things and rights usually included  within  the  said  term  and
includes  not  only  fees  simple  absolute, but also any and all lesser
interests such as easements, rights of way, uses, leases, licenses,  and
all  other  incorporeal  hereditaments,  and  every  estate, interest or
right, legal or equitable, including terms of years and liens thereon by
way of judgments, mortgages or otherwise, and also claims for damage  to
real property.
5. Any highway, sewer, public utility, or other public facility, which
will  be  dislocated  by reason of the constructions deemed necessary by
the Commission to effectuate the authorized purposes  of  this  compact,
shall  be relocated, providing that such relocation be required to serve
the public interest, in the manner provided  for  by  the  laws  of  the
respective signatory States, at the expense of the Commission.
ARTICLE VII
TAXES AND PAYMENTS IN LIEU OF TAXES
1.  The  effectuation  of its authorized purposes by the Commission is
and will be in all respects  for  the  benefit  of  the  people  of  the
signatory States; and, since the Commission will be performing essential
governmental functions in effectuating said purposes, the bonds or other
securities  or  obligations  issued  by  the  Commission  and the income
therefrom, or any profit made on the sale thereof, shall be exempt  from
all  taxation  by  or  within the States of Delaware, New Jersey and New
York and the  Commonwealth  of  Pennsylvania  except  for  transfer  and
inheritance taxes.
2.  Lands  acquired by the Commission for the purposes of this compact
shall be taxable in the tax districts wherein such lands are located  at
the  average  value thereof as improved on the date of acquisition. Such
average value shall be determined on the basis  of  computation  of  the
average  assessed  value  of  such  lands  as improved for the five-year
period immediately prior to such date of acquisition. The assessed value
of such land shall be reviewed by the taxing authority  at  the  end  of
each  five-year  period  after the date of acquisition and such assessed
valuation shall be increased or decreased percentagewise as the  average
assessed  valuation  of  all  the other property in the tax district has
increased or decreased in such five-year period. However,  none  of  the
dams,  reservoirs,  treatment  plants,  aqueducts,  conduits,  or  other
structures, or facilities,  or  their  appurtenances,  to  be  built  in
accordance  with  the  authority  conferred  by  this  compact  shall be
taxable, nor shall the assessed value  of  the  lands  upon  which  such
structures are built be increased by reason of their presence thereon.
3. Notwithstanding the provisions of the last preceding paragraph, the
Commission  is  hereby authorized and empowered to enter into agreements
with political subdivisions to pay a fair and reasonable sum or sums  to
the  said  political subdivisions in lieu of taxes which otherwise would
be  levied and collected with respect to any property hereafter acquired
by the Commission. Any such payment or payments made by  the  Commission
may  be paid on an annual basis, or such payment or payments may be made
in a lump sum or sums or over a stated period  of  years,  as  shall  be
agreed   upon   by   and  between  the  Commission  and  such  political
subdivision; provided, however, that in any case the payment or payments
shall not be in excess of the amount of the  taxes  upon  such  property
when  last  assessed  prior  to  the  time  of  its  acquisition  by the
Commission.  Every  political  subdivision  wherein  property  shall  be
acquired  by  the  Commission  is authorized and empowered to enter into
such agreement or agreements with the Commission to accept such  payment
or payments.
ARTICLE VIII
CONTRACTS FOR WATER SUPPLY
1.  The  term  "political subdivision", as used in this Article, shall
mean and include, in addition to its  usual  meaning,  water  districts,
water  supply  districts,  and  any  other  public  authorities,  public
corporations, commissions or bodies having power  to  own,  acquire,  or
contract for a public water supply.
2.  Political subdivisions of the signatory States, either directly or
through  any  board  of  water  commissioners,  district  water   supply
commissioners,  or  any  other  board,  commission,  or public authority
having jurisdiction or control over all or any part of a water supply or
distribution system, may enter into contracts for the supplying of water
by the Commission and the payment of any fees or other  charges  to  the
Commission.  The  contracts  may be made for a specified or an unlimited
time notwithstanding any other provisions of law, general or special, on
any terms  and  conditions  which  may  be  approved  by  the  political
subdivision  and  which  may  be  agreed  to by the Commission, and such
contracts shall be valid and binding  upon  the  political  subdivision,
notwithstanding that no appropriation has been made or provided to cover
the cost or estimated cost of the contract.
3.  Such political subdivision is hereby authorized and directed to do
and perform  any  and  all  acts  or  things  necessary,  convenient  or
desirable  to  carry  out and perform every such contract and to provide
for the payment of any obligations thereunder  in  the  same  manner  as
other   obligations   of  such  political  subdivision.  Each  political
subdivision shall pay promptly to the  Commission  all  fees  and  other
charges due the Commission.
ARTICLE IX
RELEASE OF STORED WATERS
1.  No  signatory State shall permit the flow in the Delaware River to
be diminished by the diversion of any water from the main channel of the
Delaware River during any period in which waters are being released from
storage reservoirs constructed under the provisions of this compact  for
the  purpose  of  maintaining  an  adequate minimum flow in the Delaware
River during the periods of low flow therein, except in cases where such
diversion shall have been duly authorized under the provisions  of  this
compact.
2.  The Commission shall release water from storage for the purpose of
maintaining an adequate  minimum  flow  in  the  Delaware  River  during
periods of low flow therein in accordance with the following provisions:
(a)  Upon  and  after  completion  of  a storage reservoir on the West
Branch of the Delaware River near  Cannonsville,  New  York,  sufficient
water  shall  be  released  from  the  aforesaid reservoir to maintain a
minimum flow in the Delaware River, as measured  at  the  stream  gaging
station  at  Port  Jervis,  New  York,  of  at least 1800 cubic feet per
second.
(b) Upon and after completion of storage reservoirs on the West Branch
of the Delaware River near Cannonsville, New York, on the  main  channel
of  the  Delaware  River near Barryville, New York, and on the Neversink
River near Godeffroy, New York, sufficient water shall be released  from
the  system  consisting  of the three aforesaid reservoirs to maintain a
minimum flow in the Delaware River, as measured  at  the  stream  gaging
station at Trenton, New Jersey, of at least 4000 cubic feet per second.
(c) Upon and after completion of storage reservoirs on the West Branch
of  the  Delaware River near Cannonsville, New York, on the main channel
of the Delaware River near Barryville, New York, on the Neversink  River
near  Godeffroy, New York, and on the main channel of the Delaware River
near Wallpack Bend, sufficient water shall be released from  the  system
consisting  of  the four aforesaid reservoirs to maintain a minimum flow
in the Delaware River, as measured  at  the  stream  gaging  station  at
Trenton, New Jersey, of at least 4800 cubic feet per second.
(d)  The  intent and purpose of the requirements of paragraphs (b) and
(c) of this article are to provide for a flow at all times of  at  least
4000  cubic  feet per second, or at least 4800 cubic feet per second, as
the case may be, from the non-tidal section of the Delaware River  above
Trenton  into  the  tidal  section  of the Delaware River below Trenton.
Accordingly, the requirements for the flow of at least 4,000 cubic  feet
per  second,  or  at least 4800 cubic feet per second, at Trenton may be
reduced by the Commission in such a manner as to carry out  this  intent
and purpose in the event the Commission is called upon to utilize a part
of  the  waters  which  would  otherwise  flow  in the Delaware River at
Trenton as a source of water supply for the  City  of  Philadelphia  and
other  political  subdivisions  and  metropolitan  areas  in the greater
Philadelphia-South Jersey area which  are  situated  wholly  within  the
Delaware River Basin.
ARTICLE X
HYDROELECTRIC POWER AND ENERGY
In  the  exercise  of  its  power  to  develop,  or to provide for the
development of, hydroelectric power and energy, no water shall  be  used
in  addition to the water which would otherwise be developed and used by
the Commission for water supply and for water required  to  be  released
from  storage  in  order  to  maintain  an  adequate minimum flow in the
Delaware River during periods of low flow therein. The Commission  shall
not  engage  in  the  transmission  and distribution of power and energy
except for its own use.
ARTICLE XI
FORMULATION AND APPROVAL OF PLANS
1. Upon the request of two or more signatory States, or upon  its  own
initiative,  the  Commission  shall  prepare,  in  appropriate  form for
submission to  the  legislatures  of  the  signatory  States,  a  report
covering plans for, and the method of financing, any new project, or any

expansion  of  the  project  authorized  and described in paragraph 2 of
Article  I  of  this  compact,  for  the  construction,  operation,  and
maintenance  of such dams, reservoirs, and appurtenant structures within
the   Delaware  River  Basin,  and  such  treatment  plants,  aqueducts,
conduits, and other facilities, as may be  required  to  effectuate  the
purposes of this compact.
2.  Prior  to the submission of any such report to the legislatures of
the signatory States the Commission shall:
(a) Conduct investigations in  such  manner  as  to  give  appropriate
consideration  and  weight  to the interrelation of the proposed project
with projects and  programs  of  other  agencies,  public  and  private,
federal,  interstate,  state,  and  local,  concerning  the development,
utilization, control and conservation of  the  water  resources  of  the
Delaware River Basin.
(b)  Transmit a copy of its tentative draft of a report concerning any
proposed  project  to  the  following  agencies,  or  their   respective
successors, for the purpose of affording such agencies an opportunity to
submit to the Commission, within ninety days from the date of receipt of
such   tentative   draft,   written   statements   of  their  views  and
recommendations regarding any  such  project:  Water  Pollution  Control
Commission of the State of Delaware; Division of Water Policy and Supply
of  the  State  of New Jersey; Water Power and Control Commission of the
State of New York; Water and Power Resources Board of  the  Commonwealth
of  Pennsylvania;  and  the  Interstate Commission on the Delaware River
Basin. Representatives of each of the aforesaid agencies may,  in  order
to  analyze  and appraise any project proposed by the Commission created
by this compact, enter upon any lands, structures, and waters within the
states in which the Delaware River Basin is located, for the purpose  of
surveying   dam,   reservoir,  treatment  plant,  aqueduct,  or  conduit
locations, studying subsurface conditions  affecting  the  selection  of
such locations, and for such other purposes as may be deemed necessary.
(c)  Include  in its report, for submission to the legislatures of the
signatory States, the statements of views and recommendations,  if  any,
of the aforesaid agencies.
3.   The   report,  prepared  after  compliance  with  the  procedures
hereinbefore provided, shall be  submitted  by  the  Commission  to  the
legislatures   of  the  signatory  States.  The  Commission  shall  have
authority to proceed with the project proposed in the said  report  when
such  report  has been approved by the legislatures of all the signatory
States, or by the legislatures of the States of New Jersey and New  York
and the Commonwealth of Pennsylvania.
4.  Prior  to  proceeding with any construction which is a part of the
project authorized and described in paragraph 2 of  Article  I  of  this
compact,  or  of  any authorized expansion thereof, or of any authorized
new  project,  the  Commission   shall   submit   detailed   plans   and
specifications  for  the construction of any structure, or part thereof,
to, and secure the approval of, the appropriate agency  or  agencies  of
the  State  or  States  within which such construction is necessary as a
part of the said project.
ARTICLE XII
GRANTS, LOANS, OR PAYMENTS BY STATES OR POLITICAL SUBDIVISIONS
1. Any or all of the signatory States, or any  political  subdivisions
thereof,  may  after  appropriate  legislative  authorization  for  that
purpose,
(a) Appropriate to the Commission such funds as may  be  necessary  to
pay  preliminary expenses such as the expenses incurred in the making of

borings and other studies of sub-surface conditions, in the  preparation
of  contracts  for the sale of water, and in the preparation of detailed
plans and  estimates  required  for  the  financing  of  a  construction
project.
(b)  advance  to the Commission, either as grants or loans, such funds
as  may  be  necessary  or  convenient  to  finance  the  operation  and
management of, or construction by, the Commission.
(c)  make  payments  to the Commission for benefits received, or to be
received, from the operation of any of the structures or  facilities  of
the Commission.
2.  Any  funds  which  may  be  loaned  to  the Commission either by a
signatory State, or a political subdivision thereof, shall be repaid  by
the  Commission through the issuance of bonds, or out of other income of
the Commission, such repayment to be made within such  period  and  upon
such terms as may be agreed upon between the Commission and the State or
political subdivision making the loan.
ARTICLE XIII
FINANCING
1. The Commission shall have power and is hereby authorized, from time
to  time,  to  issue  its  negotiable  bonds  for  any of its authorized
purposes, to issue its bonds to refund bonds issued by it, to issue  its
negotiable  notes  in  anticipation  of  bonds, and to pay its bonds and
notes from revenues of the Commission and the proceeds of its bonds  and
other  moneys  of  the  Commission,  as  the  resolution authorizing the
issuance may provide:
(a) Refunding bonds may be  issued  partially  to  refund  bonds  then
outstanding  and  partially  for  any  other of its authorized purposes.
Refunding bonds may be issued whenever the Commission  deems  expedient,
whether  the  bonds  to be refunded have or have not matured, and may be
exchanged for the bonds to be refunded with such cash adjustments as may
be agreed, or may be sold before the bonds to be refunded become due and
the proceeds applied to the purchase, redemption or payment of the bonds
to be refunded, including interest accrued, and any redemption  premiums
payable, thereon.
(b)  Except  as may be otherwise expressly provided by the Commission,
every issue of bonds shall be general obligations  payable  out  of  any
moneys  or  revenues  of  the Commission, subject only to any agreements
with the holders of any bonds pledging any moneys or revenues.
(c) Whether or not bonds or notes issued by the Commission are of such
form and character as to be negotiable instruments, such bonds or  notes
shall be fully negotiable within the meaning and for all the purposes of
the  Negotiable  Instruments  Law, subject only to any provisions of the
bonds for registration.
(d) The Commission may issue temporary bonds, with or without coupons,
pending the preparation of definitive bonds, exchangeable for definitive
bonds.
(e) Bonds shall be authorized by  resolution  of  the  Commission  and
shall  bear  such  date  or  dates,  mature  at such time or times, bear
interest at such rate or rates not exceeding five per centum per  annum,
be  in such denominations, be in such form, either coupon or registered,
carry such registration privileges,  be  executed  in  such  manner,  be
payable  in  such  medium of payment and at such place or places, and be
subject to such terms of redemption, as such resolution  or  resolutions
may provide, but in no event shall the redemption price of a bond exceed
the  par  value  thereof  and  a premium of four per centum plus accrued
interest. The official seal of the Commission, or a  facsimile  thereof,

shall  be  impressed,  engraved, or otherwise reproduced on each bond or
note, and be attested by the Secretary or by such other officer or agent
as the Commission  shall  appoint  and  authorize.  If  any  officer  or
authorized  agent  whose signature, or a facsimile thereof, shall appear
on any bonds, coupons, or notes, shall  cease  to  be  such  officer  or
authorized  agent  before  the  delivery  of  the  bonds  or notes, such
signature or such facsimile signature shall be valid and sufficient  for
all  purposes  the  same  as  if  he  had continued in office until such
delivery. The bonds shall be sold at public sale for a  price  not  less
than  ninety-six  per  centum  of  the  par  value  thereof plus accrued
interest, provided that the interest cost to maturity of the  money  for
any issue of such bonds shall not exceed five per centum per annum.
(f) Any resolution of the Commission authorizing the issuance of bonds
may  appoint  a  trustee or trustees, a fiscal agent or fiscal agents, a
paying agent or paying  agents,  and  such  other  fiduciaries  as  such
resolution  may  provide.  Any  trustee,  fiscal agent, paying agent and
other fiduciary so appointed may be any trust company or bank having the
powers of a trust company within any one of the signatory States.
(g) In order to secure the payment of its bonds the  Commission  shall
have  power,  in  the  resolution  authorizing the issuance of the bonds
(which shall be deemed a contract with the bondholders):
(1) to pledge all or any part of its revenues to which its right  then
exists  or  may  thereafter  come into existence, and the moneys derived
therefrom, and the proceeds of bonds;
(2) to covenant against pledging all or any part of its  revenues,  or
against mortgaging all or any part of its real or personal property then
owned  or  thereafter  acquired,  or against permitting or suffering any
lien  on  such  revenues  or  property;  to  covenant  with  respect  to
limitations  on  its  right  to  sell, lease or otherwise dispose of any
project or any part thereof, or any property of any kind;
(3) to covenant as to the bonds  to  be  issued  and  the  limitations
thereon  and  the  terms  and  conditions thereof and as to the custody,
application and disposition of the proceeds thereof, and to covenant  as
to the issuance of additional bonds or as to limitations on the issuance
of additional bonds and on the incurring of other debts by it;
(4)  to  provide  for  the replacement of lost, destroyed or mutilated
bonds;
(5) to provide for the investment of all or a part  of  its  funds  on
deposit  with  the trustee or other fiduciary in such obligations as the
resolution authorizing the issuance of the bonds may provide;
(6) to covenant against extending the time for the payment of bonds or
interest thereon; to covenant as to the redemption  premiums  and  other
terms and conditions thereof;
(7)  to  covenant as to the payment of the principal of or interest on
the bonds, or any other obligations, as to the sources  and  methods  of
such  payment,  as  to  the  rank  or  priority  of  any  such  bonds or
obligations  with  respect  to  any  lien  or  security  or  as  to  the
acceleration of the maturity of any such bonds or obligations;
(8)  to  covenant  as  to  the  rates  of  fees or other charges to be
established and to be charged, and the amount to be raised each year  or
other period of time by such charges or other revenues and as to the use
and  disposition to be made thereof; to create or authorize the creation
of special funds or moneys  to  be  held  in  pledge  or  otherwise  for
construction,   operating  expense,  payment  or  redemption  of  bonds,
reserves or other purposes and to covenant as to the use and disposition
of the moneys held in such funds;
(9) to establish the procedure, if any, by  which  the  terms  of  any
contract  or  covenant with or for the benefit of the bondholders may be

amended or abrogated, the amount of bonds  the  holders  of  which  must
consent thereto, and the manner in which such consent may be given;
(10)  to  covenant  as  to  the  maintenance  of its real and personal
property, the replacement thereof, the insurance to be carried  thereon,
and the use and disposition of insurance moneys;
(11)  to  provide  for  the  rights and liabilities, powers and duties
arising upon the breach of any covenant,  condition  or  obligation;  to
prescribe  the events of default and the terms and conditions upon which
any or all of the bonds shall become or may be declared due and  payable
before  maturity  and  the  terms  and  conditions  upon  which any such
declaration and its consequences may be waived;
(12) to vest in a trustee or trustees such  property,  rights,  powers
and  duties  in  trust  for  the  bondholders,  as  the  Commission  may
determine, which may include any or all of the rights, powers and duties
of the statutory trustee appointed by the holders of bonds  pursuant  to
sub-paragraph  (a)  of paragraph 2 of this Article; to limit or abrogate
the rights of the holders  of  such  bonds  to  appoint  such  statutory
trustee,  or  to  limit  the rights, duties and powers of such statutory
trustee;
(13) to limit the rights of the bondholders to enforce any  pledge  or
covenant securing the bonds; and
(14)  to  make  covenants  other than and in addition to the covenants
herein expressly authorized, of like or different character; and to make
such covenants to do or refrain from doing such acts and things  as  may
be  necessary  or  convenient or desirable in order to better secure the
bonds or which, in the absolute discretion of the commission, will  tend
to  make the bonds more marketable, notwithstanding that such covenants,
acts or things may not be enumerated herein.
(h) Any pledge of revenues or other  moneys  made  by  the  Commission
shall  be  valid  and binding from the time when the pledge is made; the
revenues or other moneys so  pledged  and  thereafter  received  by  the
Commission  shall  immediately  be  subject  to  the lien of such pledge
without any physical delivery thereof or further act, and  the  lien  of
any such pledge shall be valid and binding as against all parties having
claims   of  any  kind  in  tort,  contract  or  otherwise  against  the
Commission, irrespective of whether such parties  have  notice  thereof.
Neither  the  resolution  nor  any other instrument by which a pledge is
created need  be  filed  or  recorded  except  in  the  records  of  the
Commission.
(i)  Bonds  may be issued under the provisions of this compact without
obtaining the consent of any department,  division,  commission,  board,
bureau  or  agency of any of the signatory States, and without any other
proceedings or the happening of any  other  conditions  or  things  than
those  proceedings, conditions or things which are specifically required
by this compact.
(j) The Commission shall not have power to mortgage real property.
(k) Moneys of the Commission or moneys held in pledge or otherwise for
the payment of bonds or in any way to secure bonds and the  deposits  of
such  moneys may be secured in such manner as the Commission may require
and all banks and trust companies in each of the  signatory  States  are
authorized to give such security therefor.
(l) Neither the members of the Commission nor any person executing the
bonds  shall  be  liable  personally  on  the bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.
(m) The Commission shall have the power to purchase its bonds  out  of
any funds available therefor. The Commission may refund, or it may hold,
cancel,  or  resell,  such  bonds  subject  to  and  in  accordance with
agreements with bondholders.
2. The following provisions shall be applicable to an issue  of  bonds
authorized  or  issued  by the Commission, only if the resolution of the
Commission authorizing or providing for the issuance of such bonds shall
provide in substance that the holders of the bonds of such  issue  shall
be  entitled  to  the  benefits and be subject to the provisions of this
paragraph 2:
(a) In the event that there shall be  a  default  in  the  payment  of
principal of or interest on any bonds of such issue after the same shall
become  due,  whether  at maturity or upon call for redemption, and such
default shall continue for a period of thirty days, or in the event that
the Commission shall fail or refuse to comply  with  the  provisions  of
this  compact or shall fail or refuse to carry out and perform the terms
of any contract or covenant with or for the benefit of  the  holders  of
any  such bonds, and such failure or refusal shall continue for a period
of thirty days after written notice by any holder of bonds of such issue
or by a trustee for bondholders to the Commission of its  existence  and
nature,  the  holders  of  twenty-five  per  centum  (25%)  in aggregate
principal amount  of  the  bonds  of  such  issue  then  outstanding  by
instrument  or instruments filed in the office of the Secretary of State
of each signatory State and proved or acknowledged in the same manner as
a deed to be recorded, may appoint a statutory trustee to represent  the
holders  of  the  bonds  of such issue for the purposes provided in this
paragraph 2.
(b) Such statutory trustee  may  and,  upon  written  request  of  the
holders of twenty-five per centum (25%) in aggregate principal amount of
the bonds of such issue then outstanding, shall, in his or its own name:
(1) by civil action or suit, enforce all rights of the holders of such
bonds,  including  the  right  to  require  the Commission to charge and
collect revenues adequate to carry out any contract as to, or pledge of,
such charges and revenues, and to require the Commission  to  carry  out
and  perform  the  terms  of  any  contract  or covenant with or for the
benefit of the holders of such bonds or its duties under this compact;
(2) bring action or suit upon  all  or  any  part  of  such  bonds  or
interest coupons or claims appurtenant thereto;
(3)  by action or suit require the Commission to account as if it were
the trustee of an express trust for the holders of such bonds;
(4) by action or suit enjoin any acts or things which may be  unlawful
or  in violation of the covenants of the Commission or the rights of the
holders of such bonds; or
(5) declare all such bonds due and payable, whether or not in  advance
of maturity, upon thirty days' prior notice in writing to the Commission
and  if  all  defaults  shall be made good, then with the consent of the
holders of twenty-five per centum (25%) of the principal amount of  such
bonds then outstanding, annul such declaration and its consequences.
(c)  Before  declaring the principal of all such bonds due and payable
the statutory trustee shall first give thirty days' notice in writing to
the Commission.
(d) Any such statutory trustee, whether or  not  the  issue  of  bonds
represented  by such trustee has been declared due and payable, shall be
entitled as of right to the appointment of a receiver  of  any  part  or
parts  of the property of the Commission the revenues derived from which
property are pledged for the security of the bonds  of  such  issue  and
such  receiver  may  enter  and take possession of such part or parts of
such property and subject to any pledge or  agreement  with  bondholders
shall  take  possession of all moneys and other property derived from or
applicable   to   the   construction,   operation,    maintenance    and
reconstruction  of  such part or parts of such property and proceed with
any construction thereon which the Commission is under obligation to  do

and  to  operate,  maintain  and  reconstruct  such part or parts of the
property  and  collect  and  receive  all  revenues  thereafter  arising
therefrom  subject  to  any pledge thereof or agreement with bondholders
relating  thereto,  and  perform  the  public  duties  and carry out the
agreements and obligations of the Commission under the direction of  the
court.  In  any  suit, action or proceeding by the statutory trustee the
fees, counsel fees and expenses of the said trustee and of the receiver,
if any,  shall  constitute  taxable  disbursements  and  all  costs  and
disbursements  allowed  by  the  court  shall  be  a first charge on any
revenues derived from such property.
(e) Such statutory trustee shall, in addition to the  foregoing,  have
and  possess all of the powers necessary or appropriate for the exercise
of any function specifically set forth herein or incident to the general
representation of bondholders in the enforcement and protection of their
rights.
3. Notes issued in anticipation of bonds shall be paid from any moneys
of the Commission available therefor and not otherwise pledged  or  from
the  proceeds  of sale of the bonds of the Commission in anticipation of
which they were issued. The notes shall be issued and sold in  the  same
manner  as  the  bonds  and such notes and the resolution or resolutions
authorizing  the  same  may  contain  any  provisions,   conditions   or
limitations  which  the bonds or a bond resolution of the Commission may
contain. Such note shall be as fully negotiable  as  the  bonds  of  the
Commission.
4. Bonds issued by the Commission under the provisions of this compact
are  hereby  made  securities  in  which  any  signatory  State  and all
political subdivisions thereof,  their  officers,  boards,  commissions,
departments  or other agencies, all banks, bankers, savings banks, trust
companies, savings and loan associations, investment companies and other
persons  carrying  on  a  banking  business,  all  insurance  companies,
insurance  associations,  and  other  persons  carrying  on an insurance
business, and other  fiduciaries,  and  all  other  persons  whatsoever,
except  as  hereinafter  provided,  who  now  are  or  may  hereafter be
authorized to invest in bonds or  other  obligations  of  any  signatory
State,  may  properly  and  legally  invest any funds, including capital
belonging  to   them   or   within   their   control;   provided   that,
notwithstanding  the  provisions  of any other general or special law to
the contrary, such bonds shall not be eligible  for  the  investment  of
funds,  including capital, of trusts, estates or guardianships under the
control of individual administrators, guardians, executors, trustees and
other  individual  fiduciaries.  Said  bonds  or  other  securities   or
obligations are hereby made securities which may properly and legally be
deposited with and received by any State or municipal officers or agency
of any signatory State for any purpose for which the deposit of bonds or
other obligations of such State is now or may hereafter be authorized by
law.
5.  Each of the signatory States hereby pledges to and agrees with the
holders of the bonds and notes issued in accordance with the  provisions
of  this  compact, that such State will not limit or restrict the rights
hereby vested in the Commission to maintain, construct, reconstruct, and
operate any project as defined in  this  compact  or  to  establish  and
collect such rents, fees, receipts or other charges as may be convenient
or  necessary  to  produce  sufficient  revenues to meet the expenses of
maintenance and operation thereof  and  to  fulfill  the  terms  of  any
agreements  made with the holders of bonds authorized by this compact or
in any way impair the rights or remedies of the holders  of  such  bonds
until  the  bonds,  together  with  interest thereon, are fully paid and
discharged.
ARTICLE XIV
CREDIT OF SIGNATORY STATES NOT PLEDGED
Bonds  or  notes issued under the provisions of this compact shall not
be deemed to constitute a debt or liability  of  any  of  the  signatory
States  or of any political subdivision thereof or a pledge of the faith
and credit of any of the signatory  States  or  of  any  such  political
subdivision. All such bonds or notes shall contain on the face thereof a
statement  to  the  effect  that  none  of  the signatory States nor any
political subdivision thereof is  obligated  to  pay  the  same  or  the
interest  thereon  and  that neither the faith and credit nor the taxing
power of any signatory State or of any political subdivision thereof  is
pledged  to  the  payment  of  the  principal of or the interest on such
bonds.
ARTICLE XV
NONIMPAIRMENT OF STATE POWERS
1. Except as provided in Article XVI of this  compact,  the  signatory
States,  as  of  the effective date of this compact, waive, renounce and
release any claim, or alleged claim, of or to a prior  appropriation  of
the  waters  of  the Delaware river, and waive, renounce and release any
claim or alleged claim, of or to any superior  right  of  appropriation,
diversion or use of said waters.
2.  Nothing in this compact shall be construed as impairing the powers
of any  signatory  State  to  develop,  improve,  utilize,  control,  or
conserve  the  water  resources of the upper Delaware River Basin within
the boundaries of such State; provided, however, that  the  exercise  of
such  powers  by  said  State  shall  not conflict with the power of the
Commission established by this  compact  with  respect  to  those  water
resources authorized to be developed, improved, utilized, controlled, or
conserved by such Commission.
3.  Nothing in this compact shall be deemed to authorize the taking in
any of the signatory States of a supply of water  from  this  Commission
unless  and  until  all  of the laws of the State, in which the proposed
taking of such water is  located,  have  been  complied  with,  and  the
approval  of such taking has been secured from the appropriate agency or
agencies of said State having jurisdiction  over  the  taking  of  water
supplied.
ARTICLE XVI
EXISTING RIGHTS, DEVELOPMENTS AND COMPACTS
1.  Nothing in this compact shall be deemed to affect any right of the
States of New Jersey, New York, the Commonwealth of Pennsylvania and the
City of New York, or any of them, granted or reserved by or pursuant  to
the decision of the United States Supreme Court in New Jersey versus New
York, et al., (283 U.S. 336), or any modification thereof by that Court.
2.  Nothing  in  any  existing  compact between any two or more of the
signatory States  shall  be  impaired  or  invalidated  by  any  of  the
provisions of this compact.
ARTICLE XVII
CONSTRUCTION AND SEVERABILITY
The  provisions of this compact, or of agreements thereunder, shall be
severable and if any phrase, clause,  sentence,  or  provision  of  this
compact  or  such  agreement  is  declared to be unconstitutional or the

applicability thereof to any State, agency, or person is  held  invalid,
the constitutionality of the remainder of this compact or such agreement
and  the  applicability  thereof  to any other State, agency, person, or
circumstance shall not be affected thereby. It is the legislative intent
that  the  provisions  of  this  compact  be  reasonably  and  liberally
construed.
ARTICLE XVIII
EFFECTIVE DATE
1. This compact shall  enter  into  force  and  become  effective  and
binding  between  the  States  of  New  Jersey  and  New  York  and  the
Commonwealth of Pennsylvania when (a) it has been  adopted  and  enacted
into  law  by  the  respective  legislatures  of  the  said  States  and
Commonwealth, and (b) it has been signed by the respective Governors  of
the  said States and Commonwealth, after authorization therefor by their
respective legislatures, and has been attested by the Secretary  of  the
State  of  each  of said States and Commonwealth and the Seal of each of
said States and Commonwealth has  been  affixed  thereto,  and  (c)  the
Congress of the United States of America has consented thereto.
2. This compact shall become effective and binding with respect to the
State  of  Delaware,  either  at  the same time it becomes effective and
binding  between  the  States  of  New  Jersey  and  New  York  and  the
Commonwealth  of Pennsylvania as provided in the first paragraph of this
Article or at any time thereafter, when (a)  it  has  been  adopted  and
enacted into law by the legislature of the State of Delaware, and (b) it
has  been  signed  by  the  Governor  of  the  State  of Delaware, after
authorization therefor by the legislature thereof, and has been attested
by the Secretary of State of the State and the Seal of  that  State  has
been affixed thereto.
3.  This  compact  shall  be  signed,  attested,  and  sealed  in five
originals, one  original  to  be  forwarded  to  the  Governor  of  each
signatory State for filing in accordance with the laws of that State and
one  original to be deposited in the archives of the Commission upon its
establishment.
IN WITNESS WHEREOF, and in evidence of the adoption and enactment into
law of this compact by the legislatures of the  respective  States,  the
respective  Governors  of  the signatory States do hereby, in accordance
with authority conferred by the legislatures of their respective States,
sign this compact in five  originals,  as  attested  by  the  respective
Secretaries  of State of the said States, and have caused the respective
Seals    of    the    said    States    to    be    hereunto    affixed,
this...................day of......................,19....