§ 121. Adjustment of claims of owners of private dams. Whenever the
state including the corporation in the course of the construction of the
improved canals in the rivers or waterways of the state, for the purpose
of obtaining a sufficient depth or supply of water for canal purposes,
has utilized private dams theretofore lawfully constructed or
maintained, in such a manner as to constitute the same an essential part
or portion of the improved canals, the corporation may compromise,
settle and adjust the claims and demands of the owners of any such dams
on such terms and conditions, including the payment to the owners of any
such dams of such sums of money as to it may seem just and proper, and,
by contract or otherwise, make proper provision with respect to the
ownership of and for the maintenance and upkeep of any such dams,
provided, however, that it shall not sell, transfer or convey to any
such owner any right, title or interest in or to the use of any part or
portion of the water impounded by such dams.