§ 15-1707. Procedure on application for license.

1. Each applicant for a license shall submit to the department a
written verified application in such form as the department may
prescribe and containing such data or information of the applicant's
project as the department may require. It shall be accompanied by
proposed plans and specifications showing the nature and extent of the
applicant's proposed development and estimates of cost as may be
required for a full understanding of the proposed project. Such maps,
plans and specifications when approved by the department shall be made a
part of the license; and thereafter no changes shall be made in such
maps, plans or specifications until such changes shall have been
approved and made a part of such license by the department. Applications
shall be filed with the department in the order of their receipt.

2. Each license covering water power sites or lands, the title to
which is vested in the state, shall require the payment by the licensee
of an annual charge measured by a fair rental value thereof; in other
cases, except where the state has no proprietary interest, an equitable
annual charge may be made, in determining which the department shall
give consideration to the cost of producing power by others in
competition with the licensee; and every license shall require the
payment by the licensee of an annual charge for the purpose of
reimbursing the state for the cost of administration of the provisions
of title 17 of this article. The department, by resolution, shall fix
and determine such annual charge, and the time or stage of development
from which rentals are to be computed, whereupon if one or more
applicants signifies his readiness, and establishes to the satisfaction
of the department his ability, to construct and maintain the proposed
project, to pay the charge or rental fixed by the department, and
otherwise to comply with the provisions of title 17 of this article in
the use of such water and property, it shall give notice of such
determination and of a time, not less than fifteen days from the date of
the first publication of the notice, and of the place of a meeting of
the department to take action on such application or applications.

3. A copy of such determination and notice shall be served upon each
applicant for the license not less than fifteen days previous to the
date set for the hearing. If the application applies to or may affect
any canal or canal feeder waters, a like notice shall be given to the
Commissioner of Transportation. The department shall also cause such
notice to be published as provided in subdivision 1 of section 15-0903.

4. At the time and place designated in such notice, or at a time and
place to which the meeting may be adjourned, the department shall
determine whether the plan or plans set forth in the application or
applications on file with the department, or any such plan, is or may be
consistent with the proper development, conservation and utilization in
the public interest of power resources of the water shed, stream or
localities to be affected by the determination. If it shall determine
that any of the plans is consistent with such development, conservation
and utilization and that there is no reason why the water power involved
should at the time be withheld in the public interest from development
by private interests, it may grant the application. If there be two or
more such applications it shall decide which of the plans is most
suitable for the proper development, conservation and utilization in the
public interest of the water power resources of the water shed, stream
or locality affected.

5. The department in granting the license shall accord a preference to
the applicant whose plans, being approved under the preceding
subdivision, are best adapted to properly develop the water power site
or sites covered by the application, provided that it is satisfied that
such applicant is reliable and responsible and capable of consummating
the project; and provided further that as between two or more plans
equally well adapted to such purpose, a preference may be given to the
application of a municipal corporation, if an order shall have been
previously made by the Public Service Commission approving the
installation of a municipal power plant which it proposes to install
under the license, or in default of such an application to a riparian
owner, and, otherwise, to the application first filed with the
department; and provided further that the department may impose as a
condition of granting the license that the plan be modified to improve
the development or otherwise conserve the public interest or protect
private rights.

6. The department from time to time, either before or after a license
is granted, may permit minor changes and corrections to be made in any
map, plans or specifications filed by an applicant for the purpose of
improving the same. It may also permit changes to be made therein for
the purpose of better adapting the same to the development, conservation
and utilization in the public interest of the water power resources of
the water shed, stream or locality affected. No correction or change
shall be made under this subdivision until the same has been authorized
by a resolution adopted by the department.