COLUMBIA RIVER FISHERY DEVELOPMENT

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FORT PECK PROJECT

An act to authorize the completion, maintenance, and operation of the Fort Peck project for navigation, and for other purposes. (Act of May 18, 1938, ch. 250, 52 Stat. 403)

[Sec. 1. Secretary of War to complete Fort Peck project-Bureau of Reclamation to transmit and sell electric energy not required in operation of dam or for navigation.]-For the purpose of improving navigation on the Missouri River, and for other purposes incidental thereto, the dam and appurtenant works now under construction at Fort Peck, Montana, and a suitable power plant for the production of hydroelectric power (which dam, power plant, and appurtenant works are hereinafter called Fort Peck project) shall be completed, maintained, and operated under the direction of the Secretary of War and the supervision of the Chief of Engineers, subject to the provisions of this Act relating to the powers and duties of the Bureau of Reclamation (hereinafter called the Bureau), as provided for in section 2 (a), respecting the transmission and sale of electric energy generated at said project. The Secretary of War shall provide, construct, operate, maintain, and improve at Fort Peck project such machinery, equipment, and facilities for the generation of electric energy as the Bureau may deem necessary to develop such electric energy as rapidly as markets may be found therefor. The electric energy thus generated and not required for the operation of the dam at such project and the navigation facilities employed in connection therewith shall be delivered to the Bureau for disposition as provided in this Act. (52 Stat. 403; 16 U.S.C. § 833)

Sec. 2. [(a) Secretary of War to provide and maintain adequate station space and equipment required by Bureau; (b) Bureau to provide, operate, and maintain transmission lines; (c) Secretary of the Interior to acquire in name of United States necessary real and personal property; (d) Secretary of Interior to acquire necessary property including patent rights; and (e) Secre tary of Interior to sell, lease, or dispose of personal property not required.]— (a) The electric energy generated in the operation of the said Fort Peck project shall be disposed of by the Bureau as hereinafter provided. The Bureau shall exercise the powers and perform the duties provided for in this Act under the supervision and direction of the Secretary of the Interior in accordance with the Act of May 26, 1926 (44 Stat. 657). The Bureau shall, as hereinafter provided, make all arrangements for the sale and disposition of electric energy generated at the Fort Peck project not required for the operation of the dam at such project and the navigation facilities employed in connection therewith. The form of administration herein established for the Fort Peck project is intended to be provisional pending the establishment of a permanent administration for Fort Peck and other projects in the Missouri River Basin. The Secretary of War shall install and maintain additional machinery, equipment, and facilities for the generation of electric energy at the Fort Peck project when in the judgment of the Bureau such additional generating facilities are desirable to meet actual or potential market requirements for such electric energy. The Secretary of War

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shall schedule the operations of the several electrical generating units and appurtenant equipment of the Fort Peck project in accordance with the requirements of the Bureau. The Secretary of War shall provide and maintain for the use of the Bureau at said Fort Peck project adequate station space and equipment, including such switches, switchboards, instruments, and dispatching facilities as may be required by the Bureau for proper reception, handling, and dispatching of the electric energy produced at the said project, together with transformers and other equipment required by the Bureau for the transmission of such energy from that place at suitable voltage to the markets which the Bureau desires to serve.

(b) In order to encourage the widest possible use of all electric energy that can be generated and marketed and to provide reasonable outlets therefor, and to prevent the monopolization thereof by limited groups, the Bureau is authorized and directed to provide, construct, operate, maintain, and improve such electric transmission lines and substations, and facilities and structures appurtenant thereto, as it finds necessary, desirable, or appropriate for the purpose of transmitting electric energy, available for sale, from the Fort Peck project to existing and potential markets, and for the purpose of interchange of electric energy, to interconnect the Fort Peck project with either private or with other Federal projects and publicly owned power systems now or hereafter constructed.

(c) The Secretary of the Interior is authorized, in the name of the United States, to acquire, by purchase, lease, condemnation, or donation, such real and personal property, or any interest therein, including lands, easements, rights-ofway, franchises, electric transmission lines, substations, and facilities and structures appurtenant thereto, as he finds necessary or appropriate to carry out the purposes of this Act. Title to all property and property rights acquired by said Secretary shall be taken in the name of the United States.

(d) The Secretary of the Interior shall have power to acquire any property or property rights, including patent rights, which in his opinion are necessary to carry out the purposes of this Act, by purchase, lease, donation, or by the exercise of the right of eminent domain and to institute condemnation proceedings therefor in the same manner as is provided by law for the condemnation of real estate. (e) The Secretary of the Interior is authorized, in the name of the United States, to sell, lease, or otherwise dispose of such personal property as in his judgment is not required for the purposes of this Act and such real property and interests in land acquired in connection with construction or operation of electric transmission lines or substations as in his judgment are not required for the purposes of this Act.

(f) Subject to the provisions of this Act, the Bureau is authorized in the name of the United States, to negotiate and enter into such contracts, agreements, and arrangements as it shall find necessary or appropriate to carry out the purposes of this Act. (52 Stat. 404; 16 U.S.C. § 833a)

EXPLANATORY NOTE

Reference in the Text. The Act of May 26, 1926 (44 Stat. 657), referred to in the text, authorizes the appointment of a

Commissioner of Reclamation by the President. The Act appears herein in chronological order.

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FORT PECK PROJECT

Sec. 3. [Definitions.]—As employed in this Act, the term "public body," or "public bodies," means States, public power districts, counties, and municipalities, including agencies or subdivisions of any thereof.

As employed in this Act, the term "cooperative," or "cooperatives," means any form of nonprofit-making organization or organizations of citizens supplying, or which may be created to supply, members with any kind of goods, commodities, or services, as nearly as possible at cost. (52 Stat. 405; 16 U.S.C. § 833b)

Sec. 4. [Preference to public bodies and cooperatives.]—In order to insure that the facilities for the generation of electric energy at the Fort Peck project shall be operated for the benefit of the general public, and particularly of domestic and rural consumers, the Bureau shall at all times, in disposing of electric energy generated at said project, give preference and priority to public bodies and cooperatives. (52 Stat. 405; 16 U.S.C. § 833c)

Sec. 5. [Bureau to prepare schedules of rates-Rates to become effective when approved by Federal Power Commission-Rates may be modified.]Schedules of rates and charges for electric energy produced at the Fort Peck project and sold to purchasers as in this Act provided shall be prepared by the Bureau and become effective upon confirmation and approval thereof by the Federal Power Commission. Subject to confirmation and approval by the Federal Power Commission, such rate schedules may be modified from time to time by the Bureau and shall be fixed and established with a view to encouraging the widest possible diversified use of electric energy. The said rate schedules may provide for uniform rate or rates uniform throughout prescribed transmission areas in order to extend the benefits of an integrated transmission system and encourage the equitable distribution of the electric energy developed at the Fort Peck project. (52 Stat. 405; 16 U.S.C. § 833d)

Sec. 6. [Rates to be drawn having regard to recovery of cost of production, transmission, and amortization-Rate schedules to be based upon allocation of costs by Federal Power Commission.]-It is the intent of Congress that rate schedules for the sale of electric energy which is or may be generated at the Fort Peck project in excess of the amount required for operating the dam and appurtenant works at said project shall be determined with due regard to and predicated upon the fact that such electric energy is developed from water power created as an incident to the construction of the dam in the Missouri River at the Fort Peck project for the purposes set forth in section 1 of this Act. Rate schedules shall be drawn having regard to the recovery (upon the basis of the application of such rate schedules to the capacity of the electric facilities of Fort Peck project) of the cost of producing and transmitting such electric energy, including the amortization of the capital investment over a reasonable period of years. Rate schedules shall be based upon an allocation of costs made by the Federal Power Commission. In computing the cost of electric energy developed from water power created as an incident to and a byproduct of the construction of Fort Peck project, the Federal Power Commission may allocate to the costs of electric facilities such a share of the cost of facilities having joint value for the production

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of electric energy and other purposes as the power development may fairly bear as compared with such other purposes. (52 Stat. 405; 16 U.S.C. § 833e)

1. Irrigation pumping power

NOTE OF OPINION

In setting rates for the sale of electric power from the Fort Peck project, a special rate may be set for irrigation pumping

power, and interest need not be recovered on construction costs attributable to such power. Memorandum of Chief Counsel Cheadle, April 7, 1944.

Sec. 7. [Advertising required on purchases or contracts-(1), (2), and (3) exceptions.]-Notwithstanding any other provision of law, all purchases and contracts made by the Bureau or the Secretary of War for supplies or for services, except for personal services, shall be made after advertising, in such manner and at such times, sufficiently in advance of opening bids, as the Bureau or Secretary of War, as the case may be, shall determine to be adequate to insure notice and opportunity for competition. Such advertisement shall not be required, however, when (1) an emergency requires immediate delivery of the supplies or performance of the services; or (2) repair parts, accessories, supplemental equipment, or services are required for supplies or services previously furnished or contracted for; or (3) the aggregate amount involved in any purchase of supplies or procurement of services does not exceed $500; in which cases such purchase of supplies or procurement of services may be made in the open market in the manner common among businessmen. In comparing bids and in making awards, the Bureau or the Secretary of War, as the case may be, may consider such factors as relative quality and adaptability of supplies or services, the bidder's financial responsibility, skill, experience, record of integrity in dealing, and ability to furnish repairs and maintenance services, the time of delivery or performance offered, and whether the bidder has complied with the specifications. (52 Stat. 406; 16 U.S.C. § 833f)

Sec. 8. [(a) Bureau to keep accounts of all funds expended or received; (b) Bureau may expend for necessary facilities.]-(a) The Bureau, subject to the requirements of the Federal Water Power Act, shall keep complete and accurate accounts of operations, including all funds expended and received in connection with transmission and sale of electric energy generated at the Fort Peck project.

(b) The Bureau may make such expenditures for offices, vehicles, furnishings, equipment, supplies, and books; for attendance at meetings; and for such other facilities and services as it may find necessary for the proper administration of this Act. (52 Stat. 406; 16 U.S.C. § 833g)

(c) [Annual report.]-Repealed.

EXPLANATORY NOTE

Reporting Requirement Discontinued. The Act of August 30, 1954, 68 Stat. 966, 968, repealed the requirement for the annual report and financial statement under subsection 9(c). The subsection read: "In December of each year, the Secretary of the Interior shall file with the Congress a

financial statement and a complete report as to the transmission and sale of electric energy generated at the Fort Peck project during the preceding governmental fiscal year." The 1954 Act appears herein in chronological order.