The Government does not permit the monopolization of power in any region or allow sites to be held for speculative purposes. The objects of the regulations are to secure prompt and full development and to obtain a reasonable compensation for the use of the land occupied and the beneficial protection given the watershed.
Permits for power development on the National Forests usually run for a term of 50 years and may be renewed at their expiration upon compliance with the regulations then existing. Such permits, while granting liberal terms to applicants, contain ample provision for the protection of the public interests.
Applications for power permits are filed with the District Forester of the Forest Service District in which the desired site is located. Preliminary permits are issued to protect an applicant's priority against subsequent applicants until he has had an opportunity to study the proper location and design of the project and to obtain the data necessary for the final application. Operation is allowed under the final permit only. The permittee is required to pay an annual rental charge under the preliminary and final power permits and definite periods are specified for the filing of the final application, beginning of construction and of operation. The rental charges are nominal in amount, the maximum being about 1/16 of a cent per kilowatt hour. The amount of annual payment for transmission lines is $5.00 for each mile or fraction thereof if National Forest land is crossed by the line. No rental charges are made for small power projects (under 100 horsepower capacity), or for transmission lines used in connection therewith, or for transmission lines which are part of a power project under permit or for any power project in which power is to be used by a municipal corporation for municipal purposes.
The Secretary of Agriculture has authority to permit the use of rights-of-way through the National Forests for conduits, reservoirs, power plants, telephone and telegraph lines to be used for irrigation, mining, and domestic purposes and for the production and transmission of electric power. No rental charges are made for the telephone and telegraph rights-of-way, but the applicant must agree to furnish such facilities to Forest officers and to permit such reasonable use of its poles or lines as may be determined or agreed upon between the applicant and the District Forester.