§806 — Title 16 Conservation | U.S. Code

Summary

A licensee must begin building the project within the time set in the license, which cannot be more than 2 years from the license date. The licensee must work in good faith and with steady effort to finish and operate the parts the commission says are needed to meet the market. The commission can order the rest built over time. The start time can be extended up to 8 more years, and completion times can be extended when work is in good faith and it does not harm the public interest. If the licensee does not actually start construction by the deadline or its extension, the commission can end the license for those works after giving notice. If construction started but is not finished by the deadline or extension, the Attorney General, at the commission’s request, must ask a federal district court to cancel the license, order sale of what was built, and seek other fair remedies under section 820.

Title 16, §806

Conservation — Source: USLM XML via OLRC

The licensee shall commence the construction of the project works within the time fixed in the license, which shall not be more than two years from the date thereof, shall thereafter in good faith and with due diligence prosecute such construction, and shall within the time fixed in the license complete and put into operation such part of the ultimate development as the commission shall deem necessary to supply the reasonable needs of the then available market, and shall from time to time thereafter construct such portion of the balance of such development as the commission may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. The periods for the commencement of construction may be extended for not more than 8 additional years, and the period for the completion of construction carried on in good faith and with reasonable diligence may be extended by the commission when not incompatible with the public interests. In case the licensee shall not commence actual construction of the project works, or of any specified part thereof, within the time prescribed in the license or as extended by the commission, then, after due notice given, the license shall, as to such project works or part thereof, be terminated upon written order of the commission. In case the construction of the project works, or of any specified part thereof, has been begun but not completed within the time prescribed in the license, or as extended by the commission, then the Attorney General, upon the request of the commission, shall institute proceedings in equity in the district court of the United States for the district in which any part of the project is situated for the revocation of said license, the sale of the works constructed, and such other equitable relief as the case may demand, as provided for in section 820 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Proceedings in equity, referred to in text, were abolished by the adoption of rule 2 of the Federal Rules of Civil Procedure, set out in the Appendix to Title 28, Judiciary and Judicial Procedure, which provided that “there shall be one form of action to be known as ‘civil action’ ”.

Amendments

2018—Pub. L. 115–270 substituted “for not more than 8 additional years,” for “once but not longer than two additional years” in second sentence.

§806 Time Limit for Construction of Project Works; Extension of Time; Termination or Revocation of Licenses for Delay