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I -16 UPDATING THE HOOVER DAM DOCUMENTS
<br />party thereto, either upward or downward as to price, as the Secretary of the Interior may find to be justified
<br />by competitive conditions at distributing points or competitive centers and with provisions under which
<br />disputes or disagreements as to interpretation or performance of such contract shall be determined either by
<br />arbitration or court proceedings, the Secretary of the Interior being authorized to act for the United States in
<br />such readjustments or proceedings.
<br />(b) The holder of any contract for electrical energy not in default thereunder shall be entitled to a renewal
<br />thereof upon such terms and conditions as may be authorized or required under the then existing laws and
<br />regulations, unless the property of such holder dependent for its usefulness on a continuation of the contract
<br />be purchased or acquired and such holder be compensated for damages to its property, used and useful in
<br />the transmission and distribution of such electrical energy and not taken, resulting from the termination of the
<br />supply.
<br />(c) Contracts for the use of water and necessary privileges for the generation and distribution of hydroelec-
<br />tric energy or for the sale and delivery of electrical energy shall be made with responsible. applicants therefor
<br />who will pay the price fixed by the said Secretary with a view to meeting the revenue requirements herein
<br />provided for. In case of conflicting applications, if any, such conflicts shall be resolved by the said - Secretary,
<br />after hearing, with due regard to the public interest, and in conformity with the policy expressed in the
<br />Federal Water Power Act as to conflicting applications.for permits and licenses, except that preference to ap-
<br />plicants for the use of water and appurtenant works and privileges necessary for the generation and distribu-
<br />tion of hydroelectric energy, or for delivery at the switchboard of a hydroelectric plant, shall be given, first, to
<br />a State for the generation or purchase of electric energy for use in the State, and the States of Arizona,
<br />California, and Nevada shall be given equal opportunity as such applicants.
<br />The rights covered by such preference shall be contracted for by such State within six months after notice
<br />by the Secretary oFthe Interior and to be paid for on the same. terms and conditions as may be provided in
<br />other similar -contracts made by said Secretary: Provided, however, That no application of a State or a
<br />political subdivision for an allocation of water for power purposes or of electrical energy shall be denied or
<br />another application in conflict therewith be granted on the ground that the bond issue of such State or political
<br />subdivision, necessary to enable the applicant to utilize such water and appurtenant works and privileges
<br />necessary for the generation and distribution of hydroelectric energy or the electrical energy applied for, has
<br />not been authorized or marketed, until after a reasonable time, to be determined by the said Secretary, has
<br />been given to such applicant to have such bond issue authorized and marketed.
<br />(d) Any agency receiving a contract for electrical energy equivalent to one hundred thousand firm horse-
<br />power, or more, may, when deemed feasible by the said Secretary, from engineering and economic con-
<br />siderations and under general regulations prescribed by him, be required to permit any other agency having
<br />contracts hereunder for less than the equivalent of twenty -five thousand firm horsepower, upon application
<br />to the Secretary of the Interior made within sixty days from the execution of the contract of the agency the.use
<br />of whose transmission line is applied for, to participate in the benefits and use of any main transmission line
<br />constructed or to be constructed by the former for carrying such energy (not exceeding, however, one -fourth
<br />the capacity of such line), upon payment by such other agencies of a reasonable share of the cost of construc-
<br />tion, operation, and maintenance thereof.
<br />The use is hereby authorized of such public and reserved lands of the United States as may be necessary or
<br />convenient for the construction, operation, and maintenance of main transmission lines to transmit said elec-
<br />trical energy.
<br />SEC. 6. That the dam and reservoir provided for by section 1 hereof shall be used: First, for river regula-
<br />tion, improvement of navigation, and flood control; second, for irrigation and domestic uses and satisfaction
<br />of present perfected rights in pursuance of Article VIII of said Colorado River compact; and third, for power.
<br />The title to said dam, reser4r, plant, and incidental works shall forever remain in the United States, and the
<br />United States shall, until otherwise provided by Congress, control, manage, and operate the same, except as
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