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<br /> <br /> <br />001534 <br /> <br />938 <br /> <br />ARIZONA LAW REnEW <br /> <br />(Vol 24 <br /> <br />ver power for use within the state if a firm contract could be executed <br />within six months.87 Nevada was unable at the time either to use or pay <br />for one-third of the power.88 Nevada and Arizona contend., however, that <br />in offering Nevada one-third of the Hoover power, Wilbur was actino in <br />recognition of Nevada's "super-preference" right.89 The states assert that. <br />in accordance with the rule that the interpretation of a statute by the ad- <br />ministrative body implementing it is entitled to great weight,90 Wilbur's <br />action in recognition of the "super-preference" right asserted by Arizona <br />and Nevada is entitled to deference in interpreting the statute.91 <br />Nevada and Arizona further assert that this "super-preference" right. <br />by its own terms, applies in all allotments of Hoover power, and did not <br />terminate after the original allotment.92 This argument is based upon sec. <br />tion 617d, which contemplated that new contracts would be made fifty <br />years after the first delivery of power.93 Thus, for Arizona and Nevada. <br />the terms of section 617d(c), which on their face apply to all contracts for <br />the generation, sale, distribution, and delivery of electrical energy, will ap- <br />ply on renewal, activating the "super-preference" right.94 , <br /> <br />Right of Renewal <br /> <br />Closely related to, and flowing from, this argument is the contention <br />of the two states that the "super-preference" right takes precedence over <br />the right of contract renewal provided in section 617d(b).95 As Nevada <br />and Arizona assert, the right of renewal granted in section 617d(b) is not <br />absolute, but is instead qualified by the "unless" clause of that section.. <br />That clause provides that renewal need not be granted if the transmission <br />lines and other facilities owned and used by the contractor to take Hoover <br />power are purchased and if damages are paid for any effect on property <br />that is not taken.96 <br />This provision had ,its genesis in two early versions of the BCP A, the <br /> <br />87. Letter from Secretary of Ihe Inlerior R.L. Wilbur 10 Senator Oddie (Mar. 24, 1930). Us <br />Hearings on H.R. 12902 Before House Comm. on Appropriations, 71st Cong., 2nd Sess. 80 (1930). <br />88. See Nevada Brief. supra nOIe 8, at 120. The state therefore chose to accept tbe I~ <br />allotment wilhdrawable from Ihe allotments of Ihe City of Los Angeles and Soulhem California <br />Edison. See Letter from Secretary of Ihe Interior Wilbur to Ihe Senale Committee on Appropria- <br />tions, in CONTRACTS, supra note 4, at 601. See supra notes 22-35 and accompanying text <br />89. Nevada Brief, supra note 8, at 119. <br />90. See, e.g., Quem v. Mandley, 436 U.S. 725 (1978); Udall v. Tallman, 380 U.S. 1 (1965); <br />Power Reactor Dev. Co. v. International Union of Elcet., 367 U.S. 396 (1961). <br />91. See Nevada Brief, supra note 8, at 88. <br />92. Se~ it/. at 10. , <br />93. See id. at 11; 43 U.s.c. fi 617d(a) (1976). Section 617d(a) provides Ihat "(n)o contract fOf <br />electrical energy . . . shall be of longer duration than fifty years from Ihe date at which sudl <br />energy is ready for delivery." It/. <br />The original contract wilh Ihe City of Los Angeles was for a SO-year period. and Ihe other <br />contracts, which took effect shortly after the energy was ready for delivery to the city, were scllcd- <br />uled to terminate when Ihe city's did See CoNTRACTS, supra note 4, at 63; supra note 4 anol <br />accompanying texL <br />94. See Nevada Brief, supra note 8, at 10, 12. <br />95. 43 U.S.C. fi 617d(b) (1976); Nevada Brief, supra note 8, at 16-17; see supra notes 43-51 <br />and accompanying text ~ <br />96. See 43 U.S.C. fi 617d(b) (1976); Nevada Brief, supra note 8, at 15-17; supra notes 43-51 <br />and accompanying text <br /> <br />". <br /> <br />../-' <br /> <br />I <br /> <br /> <br />I <br />~ <br />. <br />f <br />I <br />I <br />I <br /> <br />16 <br />pr <br /> <br />Se, <br /> <br />j <br /> <br />2d <br />