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SECTION 21-0701
Delaware river basin compact
Environmental Conservation (ENV) CHAPTER 43-B, ARTICLE 21, TITLE 7
§ 21-0701. Delaware river basin compact.

The Delaware river basin compact as first entered into pursuant to
chapter 148 of the laws of 1961, as renumbered by chapter 801 of the
laws of 1962, and as amended by chapter 262 of the laws of 1970, is
hereby continued as follows:

The Delaware river basin compact is hereby entered into and enacted
into law, subject to the execution by the Governor as provided in said
compact and in accordance with its terms. The compact is as follows:

WHEREAS the signatory parties recognize the water and related
resources of the Delaware basin as regional assets vested with local,
state and national interests, for which they have a joint
responsibility; and

WHEREAS the conservation, utilization, development, management and
control of the water and related resources of the Delaware River Basin
under a comprehensive multi-purpose plan will bring the greatest
benefits and produce the most efficient service in the public welfare;
and

WHEREAS such a comprehensive plan administered by a basin-wide agency
will provide effective flood damage reduction; conservation and
development of ground and surface water supply for municipal, industrial
and agricultural uses; development of recreational facilities in
relation to reservoirs, lakes and streams; propagation of fish and game;
promotion of related forestry, soil conservation and watershed projects;
protection and aid to fisheries dependent upon water resources;
development of hydro-electric power potentialities; improved navigation;
control of the movement of salt water; abatement and control of stream
pollution; and regulation of stream flows toward the attainment of these
goals; and

WHEREAS decisions of the United States Supreme Court relating to the
waters of the basin have confirmed the interstate regional character of
the water resources of the Delaware River Basin, and the United States
Corps of Engineers has in a prior report on the Delaware River Basin
(House Document 179, 73d Cong., 2nd Sess.) officially recognized the
need for an interstate agency and the economies that can result from
unified development and control of the water resources of the basin; and

WHEREAS the water resources of the basin are presently subject to the
duplicating, overlapping and uncoordinated administration of some 43
state agencies, 14 interstate agencies and 19 federal agencies which
exercise a multiplicity of powers and duties resulting in a splintering
of authority and responsibilities; and

WHEREAS the joint advisory body known as the Interstate Commission on
the Delaware River Basin (INCODEL), created by the respective
commissions or committee on Interstate Cooperation of the States of
Delaware, New Jersey, New York and Pennsylvania, has on the basis of its
extensive investigations, surveys and studies concluded that regional
development of the Delaware River Basin is feasible, advisable and
urgently needed; and has recommended that an interstate compact with
federal participation be consummated to this end; and

WHEREAS the Congress of the United States and the executive branch of
the government have recognized the national interest in the Delaware
River Basin by authorizing and directing the Corps of Engineers, U.S.
Department of the Army, to make a comprehensive survey and report on the
water and related resources of the Delaware River Basin, enlisting the
technical aid and planning participation of many federal, state and
municipal agencies dealing with the waters of the basin, and in
particular the federal departments of Agriculture, Commerce, Health,
Education and Welfare, Interior, and Federal Power Commission; and

WHEREAS some 22,000,000 people of the United States at present live
and work in the region of the Delaware River Basin and its environs, and
the government, employment, industry and economic development of the
entire region and the health, safety and general welfare of its
population are and will continue to be vitally affected by the use,
conservation, management and control of the water and related resources
of the Delaware River Basin; and

WHEREAS demands upon the waters and related resources of the basin are
expected to mount rapidly because of the anticipated increase in the
population of the region projected to reach 30,000,000 by 1980 and
40,000,000 by 2010, and because of the anticipated increase in
industrial growth projected to double by 1980; and

WHEREAS water resources planning and development is technical, complex
and expensive, and has often required fifteen to twenty years from the
conception to the completion of a large dam and reservoir; and

WHEREAS the public interest requires that facilities must be ready and
operative when needed, to avoid the catastrophe of unexpected floods or
prolonged drought, and for other purposes; and

WHEREAS the Delaware River Basin Advisory Committee, a temporary body
constituted by the governors of the four basin states and the mayors of
the cities of New York and Philadelphia, has prepared a draft of an
interstate-federal compact for the creation of a basin agency, and the
signatory parties desire to effectuate the purposes thereof;

Now therefore the states of Delaware, New Jersey and New York and the
Commonwealth of Pennsylvania, and the United States of America hereby
solemnly covenant and agree with each other, upon the enactment of
concurrent legislation by the Congress of the United States and by the
respective state legislatures, having the same effect as this Part as
follows:

ARTICLE 1--SHORT TITLE, DEFINITIONS, PURPOSE AND LIMITATIONS
Section 1.1 Short title.

This act shall be known and may be cited as the Delaware River Basin
Compact.
1.2. Definitions.

For the purposes of this compact, and of any supplemental or
concurring legislation enacted pursuant thereto, except as may be
otherwise required by the context:

(a) "Basin" shall mean the area of drainage into the Delaware River
and its tributaries, including Delaware Bay;

(b) "Commission" shall mean the Delaware River Basin Commission
created and constituted by this compact;

(c) "Compact" shall mean the compact as contained title 7 of article
21 of the Environmental Conservation Law.

(d) "Cost" shall mean direct and indirect expenditures, commitment,
and net induced adverse effects, whether or not compensated for, used or
incurred in connection with the establishment, acquisition,
construction, maintenance and operation of a project;

(e) "Facility" shall mean any real or personal property, within or
without the basin, and improvements thereof or thereon, and any and all
rights of way, water, water rights, plants, structures, machinery and
equipment, acquired, constructed, operated or maintained for the
beneficial use of water resources or related land uses including,
without limiting the generality of the foregoing, any and all things and
appurtenances necessary, useful or convenient for the control,
collection, storage, withdrawal, diversion, release, treatment,
transmission, sale or exchange of water; or for navigation thereon, or
the development and use of hydroelectric energy and power, and public
recreational facilities; or the propagation of fish and wildlife; or to
conserve and protect the water resources of the basin or any existing or
future water supply source, or to facilitate any other uses of any of
them;

(f) "Federal government" shall mean the government of the United
States of America, and any appropriate branch, department, bureau or
division thereof, as the case may be;

(g) "Project" shall mean any work, service or activity which is
separately planned, financed, or identified by the commission, or any
separate facility undertaken or to be undertaken within a specified
area, for the conservation, utilization, control, development or
management of water resources which can be established and utilized
independently or as an addition to an existing facility, and can be
considered as a separate entity for purposes of evaluation;

(h) "Signatory party" shall mean a state or commonwealth party to this
compact, and the federal government;

(i) "Water resources" shall include water and related natural
resources in, on, under, or above the ground, including related uses of
land, which are subject to beneficial use, ownership or control.
1.3 Purpose and findings.

The legislative bodies of the respective signatory parties hereby find
and declare:

(a) The water resources of the basin are affected with a local, state,
regional and national interest and their planning, conservation,
utilization, development, management and control, under appropriate
arrangements for intergovernmental cooperation, are public purposes of
the respective signatory parties.

(b) The water resources of the basin are subject to the soverign right
and responsibility of the signatory parties, and it is the purpose of
this compact to provide for a joint exercise of such powers of
sovereignty in the common interests of the people of the region.

(c) The water resources of the basin are functionally interrelated,
and the uses of these resources are interdependent. A single
administrative agency is therefore essential for effective and
economical direction, supervision and coordination of efforts and
programs of federal, state and local governments and of private
enterprise.

(d) The water resources of the Delaware River Basin, if properly
planned and utilized, are ample to meet all presently projected demands,
including existing and added diversions in future years; and ever
increasing economies and efficiencies in the use and reuse of water
resources can be brought about by comprehensive planning, programming
and management.

(e) In general, the purposes of this compact are to promote interstate
comity; to remove causes of present and future controversy; to make
secure and protect present developments within the states; to encourage
and provide for the planning, conservation, utilization, development,
management and control of the water resources of the basin; to provide
for cooperative planning and action by the signatory parties with
respect to such water resources; and to apply the principle of equal and
uniform treatment to all water users who are similarly situated and to
all users of related facilities, without regard to established political
boundaries.
1.4 Powers of Congress; withdrawal.

Nothing in this compact shall be construed to relinquish the
functions, powers or duties of the Congress of the United States with
respect to the control of any navigable waters within the basin, nor
shall any provision hereof be construed in derogation of any of the
constitutional powers of the Congress to regulate commerce among the
states and with foreign nations. The power and right of the Congress to
withdraw the federal government as a party to this compact or to revise
or modify the terms, conditions and provisions under which it may remain
a party by amendment, repeal or modification of any federal statute
applicable thereto is recognized by the signatory parties.
1.5 Existing agencies; construction.

It is the purpose of the signatory parties to preserve and utilize the
functions, powers and duties of existing offices and agencies of
government to the extent not inconsistent with this compact, and the
commission is authorized and directed to utilize and employ such offices
and agencies for the purpose of this compact to the fullest extent it
finds feasible and advantageous.
1.6 Duration of compact.

(a) The duration of this compact shall be for an initial period of 100
years from its effective date, and it shall be continued for additional
periods of 100 years if not later than 20 years nor sooner than 25 years
prior to the termination of the initial period or any succeeding period
none of the signatory states, by authority of an act of its legislature,
notifies the commission of intention to terminate the compact at the end
of the then current 100 year period.

(b) In the event that this compact should be terminated by operation
of paragraph (a) above, the commission shall be dissolved, its assets
and liabilities transferred, and its corporate affairs wound up, in such
manner as may be provided by act of the Congress.

ARTICLE 2--ORGANIZATION AND AREA
Section 2.1 Commission created.

The Delaware River Basin Commission is hereby created as a body
politic and corporate, with succession for the duration of this compact,
as an agency and instrumentality of the governments of the respective
signatory parties.
2.2 Commission membership.

The commission shall consist of the Governors of the signatory states,
ex officio, and one commissioner to be appointed by the President of the
United States to serve during the term of office of the President.
2.3 Alternates.

Each member of the commission shall appoint an alternate to act in his
place and stead, with authority to attend all meetings of the
commission, and with power to vote in the absence of the member. Unless
otherwise provided by law of the signatory party for which he is
appointed, each alternate shall serve during the term of the member
appointing him, subject to removal at the pleasure of the member. In the
event of a vacancy in the office of alternate, it shall be filled in the
same manner as an original appointment for the unexpired term only.
2.4 Compensation.

Members of the commission and alternates shall serve without
compensation but may be reimbursed for necessary expenses incurred in
and incident to the performance of their duties.
2.5 Voting power.

Each member shall be entitled to one vote on all matters which may
come before the commission. No action of the commission shall be taken
at any meeting unless a majority of the membership shall vote in favor
thereof.
2.6 Organization and procedure.

The commission shall provide for its own organization and procedure,
and shall adopt rules and regulations governing its meetings and
transactions. It shall organize annually by the election of a chairman
and vice-chairman from among its members. It shall provide by its rules
for the appointment by each member in his discretion of an advisor to
serve without compensation, who may attend all meetings of the
commission and its committees.
2.7 Jurisdiction of the commission.

The commission shall have, exercise and discharge its functions,
powers and duties within the limits of the basin, except that it may in
its discretion act outside the basin whenever such action may be
necessary or convenient to effectuate its powers or duties within the
basin, or to sell or dispose of water, hydroelectric power or other
water resources within or without the basin. The commission shall
exercise such power outside the basin only upon the consent of the state
in which it proposes to act.

ARTICLE 3--POWERS AND DUTIES OF THE COMMISSION
Section 3.1 Purpose and policy.

The commission shall develop and effectuate plans, policies and
projects relating to the water resources of the basin. It shall adopt
and promote uniform and coordinated policies for water conservation,
control, use and management in the basin. It shall encourage the
planning, development and financing of water resources projects
according to such plans and policies.
3.2 Comprehensive plan, program and budgets.

The commission shall, in accordance with Article 13 of this compact,
formulate and adopt:

(a) A comprehensive plan, after consultation with water users and
interested public bodies, for the immediate and long range development
and uses of the water resources of the basin;

(b) A water resources program, based upon the comprehensive plan,
which shall include a systematic presentation of the quantity and
quality of water resources needs of the area to be served for such
reasonably foreseeable period as the commission may determine, balanced
by existing and proposed projects required to satisfy such needs,
including all public and private projects affecting the basin, together
with a separate statement of the projects proposed to be undertaken by
the commission during such period; and

(c) An annual current expense budget, and an annual capital budget
consistent with the water resources program covering the commission's
projects and facilities for the budget period.
3.3 Allocations, diversions and releases.

The commission shall have the power from time to time as need appears,
in accordance with the doctrine of equitable apportionment, to allocate
the waters of the basin to and among the states signatory to this
compact and to and among their respective political subdivisions, and to
impose conditions, obligations and release requirements related thereto,
subject to the following limitations:

(a) The commission, without the unanimous consent of the parties to
the United States Supreme Court decree in New Jersey v. New York, 347
U.S. 995 (1954), shall not impair, diminish or otherwise adversely
affect the diversions, compensating releases, rights, conditions,
obligations, and provisions for the administration thereof as provided
in said decree; provided, however, that after consultation with the
river master under said decree the commission may find and declare a
state of emergency resulting from a drought or catastrophe and it may
thereupon by unanimous consent of its members authorize and direct an
increase or decrease in any allocation or diversion permitted or
releases required by the decree, in such manner and for such limited
time as may be necessary to meet such an emergency condition.

(b) No allocation of waters hereafter made pursuant to this section
shall constitute a prior appropriation of the waters of the basin or
confer any superiority of right in respect to the use of those waters,
nor shall any such action be deemed to constitute an apportionment of
the waters of the basin among the parties hereto; provided that this
paragraph shall not be deemed to limit or restrict the power of the
commission to enter into covenants with respect to water supply, with a
duration not exceeding the life of this compact, as it may deem
necessary for the benefit or development of the water resources of the
basin.

(c) Any proper party deeming itself aggrieved by action of the
commission with respect to an out-of-basin diversion or compensating
releases in connection therewith, notwithstanding the powers delegated
to the commission by this compact may invoke the original jurisdiction
of the United States Supreme Court within one year after such action for
an adjudication and determination thereof de novo. Any other action of
the commission pursuant to this section shall be subject to judicial
review in any court of competent jurisdiction.
3.4 Supreme court decree; waivers.

Each of the signatory states and their respective political
subdivisions, in consideration of like action by the others, and in
recognition of reciprocal benefits, hereby waives and relinquishes for
the duration of this compact any right, privilege or power it may have
to apply for any modification of the terms of the decree of the United
States Supreme Court in New Jersey v. New York, 347 U.S. 995 (1954)
which would increase or decrease the diversions authorized or increase
or decrease the releases required thereunder, except that a proceeding
to modify such decree to increase diversions or compensating releases in
connection with such increased diversions may be prosecuted by a proper
party to effectuate rights, powers, duties and obligations under Section
3.3 of this compact, and except as may be required to effectuate the
provisions of paragraphs III B 3 and V B of said decree.
3.5 Supreme court decree; specific limitations on commission.

Except as specifically provided in Sections 3.3 and 3.4 of this
article, nothing in this compact shall be construed in any way to
impair, diminish or otherwise adversely affect the rights, powers,
privileges, conditions and obligations contained in the decree of the
United States Supreme Court in New Jersey v. New York, 347 U.S. 995
(1954). To this end, and without limitation thereto, the commission
shall not:

(a) Acquire, construct or operate any project or facility or make any
order or take any action which would impede or interfere with the
rights, powers, privileges, conditions or obligations contained in said
decree;

(b) Impose or collect any fee, charge or assessment with respect to
diversions of waters of the basin permitted by said decree;

(c) Exercise any jurisdiction, except upon consent of all the parties
to said decree, over the planning, design, construction, operation or
control of any projects, structures or facilities constructed or used in
connection with withdrawals, diversions and releases of waters of the
basin authorized by said decree or of the withdrawals, diversions or
releases to be made thereunder; or

(d) Serve as river master under said decree, except upon consent of
all the parties thereto.
3.6 General powers.

The commission may:

(a) Plan, design, acquire, construct, reconstruct, complete, own,
improve, extend, develop, operate and maintain any and all projects,
facilities, properties, activities and services, determined by the
commission to be necessary, convenient or useful for the purposes of
this compact;

(b) Establish standards of planning, design and operation of all
projects and facilities in the basin which affect its water resources,
including without limitation thereto water and waste treatment plants,
stream and lake recreational facilities, trunk mains for water
distribution, local flood protection works, small watershed management
programs, and ground water recharging operations;

(c) Conduct and sponsor research on water resources, their planning,
use, conservation, management, development, control and protection, and
the capacity, adaptability and best utility of each facility thereof,
and collect, compile, correlate, analyze, report and interpret data on
water resources and uses in the basin, including without limitation
thereto the relation of water to other resources, industrial water
technology, ground water movement, relation between water price and
water demand, and general hydrological conditions;

(d) Compile and coordinate systematic stream stage and ground water
level forecasting data, and publicize such information when and as
needed for water uses, flood warning, quality maintenance or other
purposes;

(e) Conduct such special ground water investigations, tests, and
operations and compile such data relating thereto as may be required to
formulate and administer the comprehensive plan;

(f) Prepare, publish and disseminate information and reports with
respect to the water problems of the basin and for the presentation of
the needs, resources and policies of the basin to executive and
legislative branches of the signatory parties;

(g) Negotiate for such loans, grants, services or other aids as may be
lawfully available from public or private sources to finance or assist
in effectuating any of the purposes of this compact; and to receive and
accept such aid upon such terms and conditions, and subject to such
provisions for repayment as may be required by federal or state law or
as the commission may deem necessary or desirable;

(h) Exercise such other and different powers as may be delegated to it
by this compact or otherwise pursuant to law, and have and exercise all
powers necessary or convenient to carry out its express powers or which
may be reasonably implied therefrom.
3.7 Rates and charges.

The commission may from time to time after public notice and hearing
fix, alter and revise rates, rentals, charges and tolls and
classifications thereof, for the use of facilities which it may own or
operate and for products and services rendered thereby, without
regulation or control by any department, office or agency of any
signatory party.
3.8 Referral and review.

No project having a substantial effect on the water resources of the
basin shall hereafter be undertaken by any person, corporation or
governmental authority unless it shall have been first submitted to and
approved by the commission, subject to the provisions of Sections 3.3
and 3.5. The commission shall approve a project whenever it finds and
determines that such project would not substantially impair or conflict
with the comprehensive plan and may modify and approve as modified, or
may disapprove any such project whenever it finds and determines that
the project would substantially impair or conflict with such plan. The
commission shall provide by regulation for the procedure of submission,
review and consideration of projects, and for its determinations
pursuant to this section. Any determination of the commission hereunder
shall be subject to judicial review in any court of competent
jurisdiction.
3.9 Coordination and cooperation.

The commission shall promote and aid the coordination of the
activities and programs of federal, state, municipal and private
agencies concerned with water resources administration in the basin. To
this end, but without limitation thereto, the commission may:

(a) Advise, consult, contract, financially assist, or otherwise
cooperate with any and all such agencies;

(b) Employ any other agency or instrumentality of any of the signatory
parties or of any political subdivision thereof, in the design,
construction, operation and maintenance of structures, and the
installation and management of river control systems, or for any other
purpose;

(c) Develop and adopt plans and specifications for particular water
resources projects and facilities which so far as consistent with the
comprehensive plan incorporate any separate plans of other public and
private organizations operating in the basin, and permit the
decentralized administration thereof;

(d) Qualify as a sponsoring agency under any federal legislation
heretofore or hereafter enacted to provide financial or other assistance
for the planning, conservation, utilization, development, management or
control of water resources.
3.10 Advisory committees.

The commission may constitute and empower advisory committees, which
may be comprised of representatives of the public and of federal, state,
county and municipal governments, water resources agencies, water-using
industries, water-interest groups, labor and agriculture.

ARTICLE 4--WATER SUPPLY
Section 4.1 Generally.

The commission shall have power to develop, implement and effectuate
plans and projects for the use of the waters of the basin for domestic,
municipal, agricultural and industrial water supply. To this end,
without limitation thereto, it may provide for, construct, acquire,
operate and maintain dams, reservoirs and other facilities for
utilization of surface and ground water resources, and all related
structures, appurtenances and equipment on the river and its tributaries
and at such off-river sites as it may find appropriate, and may regulate
and control the use thereof.
4.2 Storage and release of waters.

(a) The commission shall have power to acquire, operate and control
projects and facilities for the storage and release of waters, for the
regulation of flows and supplies of surface and ground waters of the
basin, for the protection of public health, stream quality control,
economic development, improvement of fisheries, recreation, dilution and
abatement of pollution, the prevention of undue salinity and other
purposes.

(b) No signatory party shall permit any augmentation of flow to be
diminished by the diversion of any water of the basin during any period
in which waters are being released from storage under the direction of
the commission for the purpose of augmenting such flow, except in cases
where such diversion is duly authorized by this compact, or by the
commission pursuant thereto, or by the judgment, order or decree of a
court of competent jurisdiction.
4.3 Assessable improvements.

The commission may undertake to provide stream regulation in the main
stream or any tributary in the basin and may assess on an annual basis
or otherwise the cost thereof upon water users or any classification of
them specially benefited thereby to a measurable extent, provided that
no such assessment shall exceed the actual benefit to any water user.
Any such assessment shall follow the procedure prescribed by law for
local improvement assessments and shall be subject to judicial review in
any court of competent jurisdiction.
4.4 Coordination.

Prior to entering upon the execution of any project authorized by this
article, the commission shall review and consider all existing rights,
plans and programs of the signatory parties, their political
subdivisions, private parties, and water users which are pertinent to
such project, and shall hold a public hearing on each proposed project.
4.5 Additional powers.

In connection with any project authorized by this article, the
commission shall have power to provide storage, treatment, pumping and
transmission facilities, but nothing herein shall be construed to
authorize the commission to engage in the business of distributing
water.

ARTICLE 5--POLLUTION CONTROL
Section 5.1 General powers.

The commission may undertake investigations and surveys, and acquire,
construct, operate and maintain projects and facilities to control
potential pollution and abate or dilute existing pollution of the water
resources of the basin. It may invoke as complainant the power and
jurisdiction of water pollution abatement agencies of the signatory
parties.
5.2 Policy and standards.

The commission may assume jurisdiction to control future pollution and
abate existing pollution in the waters of the basin, whenever it
determines after investigation and public hearing upon due notice that
the effectuation of the comprehensive plan so requires. The standard of
such control shall be that pollution by sewage or industrial or other
waste originating within a signatory state shall not injuriously affect
waters of the basin as contemplated by the comprehensive plan. The
commission, after such public hearing may classify the waters of the
basin and establish standards of treatment of sewage, industrial or
other waste, according to such classes including allowance for the
variable factors of surface and ground waters, such as size of the
stream, flow, movement, location, character, self-purification, and
usage of the waters affected. After such investigation, notice and
hearing the commission may adopt and from time to time amend and repeal
rules, regulations and standards to control such future pollution and
abate existing pollution, and to require such treatment of sewage,
industrial or other waste within a time reasonable for the construction
of the necessary works as may be required to protect the public health
or to preserve the waters of the basin for uses in accordance with the
comprehensive plan.
5.3 Cooperative legislation and administration.

Each of the signatory parties covenants and agrees to prohibit and
control pollution of the waters of the basin according to the
requirements of this compact and to cooperate faithfully in the control
of future pollution in and abatement of existing pollution from the
rivers, streams, and waters in the basin which flow through, under, into
or border upon any of such signatory states, and in order to effect such
object, agrees to enact any necessary legislation to enable each such
party to place and maintain the waters of said basin in a satisfactory
condition, available for safe and satisfactory use as public and
industrial water supplies after reasonable treatment, suitable for
recreational usage, capable of maintaining fish and other aquatic life,
free from unsightly or malodorous nuisances due to floating solids or
sludge deposits and adaptable to such other uses as may be provided by
the comprehensive plan.
5.4 Enforcement.

The commission may, after investigation and hearing, issue an order or
orders upon any person or public or private corporation, or other
entity, to cease the discharge of sewage, industrial or other waste into
waters of the basin which it determines to be in violation of such rules
and regulations as it shall have adopted for the prevention and
abatement of pollution. Any such order or orders may prescribe the date,
including a reasonable time for the construction of any necessary works,
on or before which such discharge shall be wholly or partially
discontinued, modified or treated, or otherwise conformed to the
requirements of such rules and regulations. Such order shall be
reviewable in any court of competent jurisdiction. The courts of the
signatory parties shall have jurisdiction to enforce against any person,
public or private corporation, or other entity, any and all provisions
of this Article or of any such order. The commission may bring an action
in its own name in any such court of competent jurisdiction to compel
compliance with any provision of this Article, or any rule or regulation
issued pursuant thereto or of any such order, according to the practice
and procedure of the court.
5.5 Further jurisdiction.

Nothing in this compact shall be construed to repeal, modify or
qualify the authority of any signatory party to enact any legislation or
enforce any additional conditions and restrictions to lessen or prevent
the pollution of waters within its jurisdiction.

ARTICLE 6--FLOOD PROTECTION
Section 6.1 General powers.

The commission may plan, design, construct and operate and maintain
projects and facilities, as it may deem necessary or desirable for flood
damage reduction. It shall have power to operate such facilities and to
store and release waters on the Delaware River and its tributaries and
elsewhere within the basin, in such manner, at such times, and under
such regulations as the commission may deem appropriate to meet flood
conditions as they may arise.
6.2 Flood plain zoning.

(a) The commission shall have power to adopt, amend and repeal
recommended standards, in the manner provided by this section, relating
to the nature and extent of the uses of land in areas subject to
flooding by waters of the Delaware River and its tributaries. Such
standards shall not be deemed to impair or restrict the power of the
signatory parties or their political subdivisions to adopt zoning and
other land use regulations not inconsistent therewith.

(b) The commission may study and determine the nature and extent of
the flood plains of the Delaware River and its tributaries. Upon the
basis of such studies, it may establish encroachment lines and delineate
the areas subject to flood, including a classification of lands with
reference to relative risk of flood and the establishment of standards
for flood plain use which will safeguard the public health, safety and
property. Prior to the adoption of any standards delineating such area
or defining such use, the commission shall hold public hearings, in the
manner provided by Article 14, with respect to the substance of such
standards. At or before such public hearings the proposed standards
shall be available, and all interested persons shall be given an
opportunity to be heard thereon at the hearing. Upon the adoption and
promulgation of such standards, the commission may enter into agreements
to provide technical and financial aid to any municipal corporation for
the administration and enforcement of any local land use ordinances or
regulations giving effect to such standards.
6.3 Flood lands acquisition.

The commission shall have power to acquire the fee or any lesser
interest in lands and improvements thereon within the area of a flood
plain for the purpose of restricting the use of such property so as to
minimize the flood hazard, converting property to uses appropriate to
flood plain conditions, or preventing unwarranted constrictions that
reduce the ability of the river channel to carry flood water. Any such
action shall be in accord with the standards adopted and promulgated
pursuant to Section 6.2.
6.4 Flood and stream stage warnings and posting.

The commission may cause lands particularly subject to flood to be
posted with flood hazard warnings, and may from time to time cause flood
advisory notices to be published and circulated as conditions may
warrant.

ARTICLE 7--WATERSHED MANAGEMENT
Section 7.1 Watersheds generally.

The commission shall promote sound practices of watershed management
in the basin, including projects and facilities to retard runoff and
waterflow and prevent soil erosion.
7.2 Soil conservation and forestry.

The commission may acquire, sponsor or operate facilities and projects
to encourage soil conservation, prevent and control erosion, and to
promote land reclamation and sound forestry practices.
7.3 Fish and wildlife.

The commission may acquire, sponsor or operate projects and facilities
for the maintenance and improvement of fish and wildlife habitats
related to the water resources of the basin.
7.4 Cooperative planning and operation.

(a) The commission shall cooperate with the appropriate agencies of
the signatory parties and with other public and private agencies in the
planning and effectuation of a coordinated program of facilities and
projects authorized by this Article.

(b) The commission shall not operate any such project or facility
unless it has first found and determined that no other suitable unit or
agency of government is available to operate the same upon reasonable
conditions, in accordance with the intent and purpose expressed in
Section 1.5 of this compact.

ARTICLE 8--RECREATION
Section 8.1 Development.

The commission shall provide for the development of water related
public sports and recreational facilities. The commission on its own
account or in cooperation with a signatory party, political subdivision
or any agency thereof, may provide for the construction, maintenance and
administration of such facilities, subject to the provisions of Section
8.2 hereof.
8.2 Cooperative planning and operation.

(a) The commission shall cooperate with the appropriate agencies of
the signatory parties and with other public and private agencies in the
planning and effectuation of a coordinated program of facilities and
projects authorized by this article.

(b) The commission shall not operate any such project or facility
unless it has first found and determined that no other suitable unit or
agency of government is available to operate the same upon reasonable
conditions, in accordance with the intent and purpose expressed in
Section 1.5 of this compact.
8.3 Operation and maintenance.

The commission, within limits prescribed by this article, shall:

(a) Encourage activities of other public agencies having water related
recreational interests and assist in the coordination thereof;

(b) Recommend standards for the development and administration of
water related recreational facilities;

(c) Provide for the administration, operation and maintenance of
recreational facilities owned or controlled by the commission and for
the letting and supervision of private concessions in accordance with
this article.
8.4 Concessions.

The commission shall after notice and public hearing provide by
regulation for the award of contracts for private concessions in
connection with recreational facilities, including any renewal or
extension thereof, upon sealed competitive bids after public
advertisement therefor.

ARTICLE 9--HYDROELECTRIC POWER
Section 9.1 Development.

The waters of the Delaware River and its tributaries may be impounded
and used by or under authority of the commission for the generation of
hydroelectric power and hydroelectric energy, in accordance with the
comprehensive plan.
9.2 Power generation.

The commission may develop and operate, or authorize to be developed
and operated, dams and related facilities and appurtenances for the
purpose of generating hydroelectric power and hydroelectric energy.
9.3 Transmission.

The commission may provide facilities for the transmission of
hydroelectric power and hydroelectric energy produced by it where such
facilities are not otherwise available upon reasonable terms, for the
purpose of wholesale marketing of power and nothing herein shall be
construed to authorize the commission to engage in the business of
direct sale to consumers.
9.4 Development contracts.

The commission may after public notice and hearing enter into
contracts on reasonable terms, consideration and duration under which
public utilities or public agencies may develop hydroelectric power and
hydroelectric energy through the use of dams, related facilities and
appurtenances.
9.5 Rates and charges.

Rates and charges fixed by the commission for power which is produced
by its facilities shall be reasonable, nondiscriminatory, and just.

ARTICLE 10--REGULATION OF WITHDRAWALS AND DIVERSIONS
Section 10.1 Power of regulation.

The commission may regulate and control withdrawals and diversions
from surface waters and ground waters of the basin, as provided by this
article. The commission may enter into agreements with the signatory
parties relating to the exercise of such power of regulation or control
and may delegate to any of them such powers of the commission as it may
deem necessary or desirable.
10.2 Determination of protected areas.

The commission may from time to time after public hearing upon due
notice determine and delineate such areas within the basin wherein the
demands upon supply made by water users have developed or threatened to
develop to such a degree as to create a water shortage or to impair or
conflict with the requirements or effectuation of the comprehensive
plan, and any such areas may be designated as "protected areas." The
commission, whenever it determines that such shortage no longer exists,
shall terminate the protected status of such area and shall give public
notice of such termination.
10.3 Withdrawal permits.

In any protected areas so determined and delineated, no person, firm,
corporation or other entity shall divert or withdraw water for domestic,
municipal, agricultural or industrial uses in excess of such quantities
as the commission may prescribe by general regulation, except (i)
pursuant to a permit granted under this article, or (ii) pursuant to a
permit or approval heretofore granted under the laws of any of the
signatory states.
10.4 Emergency.

In the event of a drought or other condition which may cause an actual
and immediate shortage of available water supply within the basin, or
within any part thereof, the commission may, after public hearing,
determine and delineate the area of such shortage and declare a water
supply emergency therein. For the duration of such emergency as
determined by the commisssion no person, firm, corporation or other
public or private entity shall divert or withdraw water for any purpose,
in excess of such quantities as the commission may prescribe by general
regulation or authorize by special permit granted hereunder.
10.5 Standards.

Permits shall be granted, modified or denied as the case may be so as
to avoid such depletion of the natural stream flows and ground waters in
the protected area or in an emergency area as will adversely affect the
comprehensive plan or the just and equitable interests and rights of
other lawful users of the same source, giving due regard to the need to
balance and reconcile alternative and conflicting uses in the event of
an actual or threatened shortage of water of the quality required.
10.6 Judicial review.

The determinations and delineations of the commission pursuant to
Section 10.2 and the granting, modification or denial of permits
pursuant to Section 10.3 through 10.5 shall be subject to judicial
review in any court of competent jurisdiction.
10.7 Maintenance of records.

Each state shall provide for the maintenance and preservation of such
records of authorized diversions and withdrawals and the annual volume
thereof as the commission shall prescribe. Such records and
supplementary reports shall be furnished to the commission at its
request.
10.8 Existing state systems.

Whenever the commission finds its necessary or desirable to exercise
the powers conferred by this article any diversion or withdrawal permits
authorized or issued under the laws of any of the signatory states shall
be superseded to the extent of any conflict with the control and
regulation exercised by the commission.

ARTICLE 11--INTERGOVERNMENTAL RELATIONS
Section 11.1 Federal agencies and projects.

For the purposes of avoiding conflicts of jurisdiction and of giving
full effect to the commission as a regional agency of the signatory
parties, the following rules shall govern federal projects affecting the
water resources of the basin, subject in each case to the provisions of
Section 1.4 of this compact:

(a) The planning of all projects related to powers delegated to the
commission by this compact shall be undertaken in consultation with the
commission;

(b) No expenditure or commitment shall be made for or on account of
the construction, acquisition or operation of any project or facility
nor shall it be deemed authorized, unless it shall have first been
included by the commission in the comprehensive plan;

(c) Each federal agency otherwise authorized by law to plan, design,
construct, operate or maintain any project or facility in or for the
basin shall continue to have, exercise and discharge such authority
except as specifically provided by this section.
11.2 State and local agencies and projects.

For the purpose of avoiding conflicts of jurisdiction and of giving
full effect to the commission as a regional agency of the signatory
parties, the following rules shall govern projects of the signatory
states, their political subdivisions and public corporations affecting
water resources of the basin:

(a) The planning of all projects related to powers delegated to the
commission by this compact shall be undertaken in consultation with the
commission;

(b) No expenditure or commitment shall be made for or on account of
the construction, acquisition or operation of any project or facility
unless it shall have first been included by the commission in the
comprehensive plan;

(c) Each state and local agency otherwise authorized by law to plan,
design, construct, operate or maintain any project or facility in or for
the basin shall continue to have, exercise and discharge such authority,
except as specifically provided by this section.
11.3 Reserved taxing powers of states.

Each of the signatory parties reserves the right to levy, assess and
collect fees, charges and taxes on or measured by the withdrawal or
diversion of waters of the basin for use within the jurisdictions of the
respective signatory parties.
11.4 Project costs and evaluation standards.

The commission shall establish uniform standards and procedures for
the evaluation, determination of benefits, and cost allocations of
projects affecting the basin, and for the determination of project
priorities, pursuant to the requirements of the comprehensive plan and
its water resources program. The commission shall develop equitable cost
sharing and reimbursement formulas for the signatory parties including:

(a) Uniform and consistent procedures for the allocation of project
costs among purposes included in multiple-purpose programs;

(b) Contracts and arrangements for sharing financial responsibility
among and with signatory parties, public bodies, groups and private
enterprise, and for the supervision of their performance;

(c) Establishment and supervision of a system of accounts for
reimbursable purposes and directing the payments and charges to be made
from such accounts;

(d) Determining the basis and apportioning amounts (i) of reimbursable
revenues to be paid signatory parties or their political subdivisions,
and (ii) of payments in lieu of taxes to any of them.
11.5 Cooperative services.

The commission shall furnish technical services, advice and
consultation to authorize agencies of the signatory parties with respect
to the water resources of the basin, and each of the signatory parties
pledges itself to provide technical and administrative services to the
commission upon request, within the limits of available appropriations
and to cooperate generally with the commission for the purposes of this
compact, and the cost of such services may be reimbursable whenever the
parties deem appropriate.

ARTICLE 12--CAPITAL FINANCING
Section 12.1 Borrowing power.

The commission may borrow money for any of the purposes of this
compact, and may issue its negotiable bonds and other evidences of
indebtedness in respect thereto. All such bonds and evidences of
indebtedness shall be payable solely out of the properties and revenues
of the commission without recourse to taxation. The bonds and other
obligations of the commission, except as may be otherwise provided in
the indenture under which they were issued, shall be direct and general
obligations of the commission and the full faith and credit of the
commission are hereby pledged for the prompt payment of the debt service
thereon and for the fulfillment of all other undertakings of the
commission assumed by it to or for the benefit of the holders thereof.
12.2 Funds and expenses.

The purposes of this compact shall include without limitation thereto
all costs of any project or facility or any part thereof, including
interest during a period of construction and a reasonable time
thereafter and any incidental expenses (legal, engineering, fiscal,
financial consultant and other expenses) connected with issuing and
disposing of the bonds; all amounts required for the creation of an
operating fund, construction fund, reserve fund, sinking fund, or other
special fund; all other expenses connected with the planning, design,
acquisition, construction, completion, improvement or reconstruction of
any facility or any part thereof; and reimbursement of advances by the
commission or by others for such purposes and for working capital.
12.3 Credit excluded; officers, state and municipal.

The commission shall have no power to pledge the credit of any
signatory party, or of any county or municipality, or to impose any
obligation for payment of the bonds upon any signatory party or any
county or municipality. Neither the commissioners nor any person
executing the bonds shall be liable personally on the bonds of the
commission or be subject to any personal liability or accountability by
reason of the issuance thereof.
12.4 Funding and refunding.

Whenever the commission deems it expedient, it may fund and refund its
bonds and other obligations whether or not such bonds and obligations
have matured. It may provide for the issuance, sale or exchange of
refunding bonds for the purpose of redeeming or retiring any bonds
(including the payment of any premium, duplicate interest or cash
adjustment required in connection therewith) issued by the commission or
issued by any other issuing body, the proceeds of the sale of which have
been applied to any facility acquired by the commission or which are
payable out of the revenues of any facility acquired by the commission.
Bonds may be issued partly to refund bonds and other obligations then
outstanding, and partly for any other purpose of the commission. All
provisions of this compact applicable to the issuance of bonds are
applicable to refunding bonds and to the issuance, sale or exchange
thereof.
12.5 Bonds; authorization generally.

Bonds and other indebtedness of the commission shall be authorized by
resolution of the commission. The validity of the authorization and
issuance of any bonds by the commission shall not be dependent upon nor
affected in any way by: (i) the disposition of bond proceeds by the
commission or by contract, commitment or action taken with respect to
such proceeds; or (ii) the failure to complete any part of the project
for which bonds are authorized to be issued. The commission may issue
bonds in one or more series and may provide for one or more consolidated
bond issues, in such principal amounts and with such terms and
provisions as the commission may deem necessary. The bonds may be
secured by a pledge of all or any part of the property, revenues and
franchises under its control. Bonds may be issued by the commission in
such amount, with such maturities and in such denominations and form or
forms, whether coupon or registered, as to both principal and interest,
as may be determined by the commission. The commission may provide for
redemption of bonds prior to maturity on such notice and at such time or
times and with such redemption provisions, including premiums, as the
commission may determine.
12.6 Bonds; resolutions and indentures generally.

The commission may determine and enter into indentures providing for
the principal amount, date or dates, maturities, interest rate,
denominations, form, registration, transfer, interchange and other
provisions of the bonds and coupons and the terms and conditions upon
which the same shall be executed, issued, secured, sold, paid, redeemed,
funded and refunded. The resolution of the commission authorizing any
bond or any indenture so authorized under which the bonds are issued may
include all such covenants and other provisions other than any
restriction on the regulatory powers vested in the commission by this
compact as the commission may deem necessary or desirable for the issue,
payment, security, protection or marketing of the bonds, including
without limitation covenants and other provisions as to the rates or
amounts of fees, rents and other charges to be charged or made for use
of the facilities; the use, pledge, custody, securing, application and
disposition of such revenues, of the proceeds of the bonds, and of any
other moneys of the commission; the operation, maintenance, repair and
reconstruction of the facilities and the amounts which may be expended
therefor; the sale, lease or other disposition of the facilities; the
insuring of the facilities and of the revenues derived therefrom; the
construction or other acquisition of other facilities; the issuance of
additional bonds or other indebtedness; the rights of the bondholders
and of any trustee for the bondholders upon default by the commission or
otherwise; and the modification of the provisions of the indenture and
of the bonds. Reference on the face of the bonds to such resolution or
indenture by its date of adoption or the apparent date on the face
thereof is sufficient to incorporate all of the provisions thereof and
of this compact into the body of the bonds and their appurtenant
coupons. Each taker and subsequent holder of the bonds or coupons,
whether the coupons are attached to or detached from the bonds, has
recourse to all of the provisions of the indenture and of this compact
and is bound thereby.
12.7 Maximum maturity.

No bond by its terms shall mature in more than fifty years from its
own date and in the event any authorized issue is divided into two or
more series or divisions, the maximum maturity date hereby authorized
shall be calculated from the date on the face of each bond separately,
irrespective of the fact that different dates may be prescribed for the
bonds of each separate series or division of any authorized issue.
12.8 Tax exemption.

All bonds issued by the commission under the provisions of this
compact and the interest thereof shall at all times be free and exempt
from all taxation by or under authority of any of the signatory parties,
except for transfer, inheritance and estate taxes.
12.9 Interest.

Bonds shall bear interest at a rate determined by the commission,
payable annually or semi-annually.
12.10 Place of payment.

The commission may provide for the payment of the principal and
interest of bonds at any place or places within or without the signatory
states, and in any specified lawful coin or currency of the United
States of America.
12.11 Execution.

The commission may provide for the execution and authentication of
bonds by the manual, lithographed or printed facsimile signature of
officers of the commission, and by additional authentication by a
trustee or fiscal agent appointed by the commission. If any of the
officers whose signatures or counter signatures appear upon the bonds or
coupons cease to be officers before the delivery of the bonds or
coupons, their signatures or counter signatures are nevertheless valid
and of the same force and effect as if the officers had remained in
office until the delivery of the bonds and coupons.
12.12 Holding own bonds.

The commission shall have power out of any funds available therefor to
purchase its bonds and may hold, cancel or resell such bonds.
12.13 Sale.

The commission may fix terms and conditions for the sale or other
disposition of any authorized issue of bonds. The commission may sell
bonds at less than their par or face value but no issue of bonds may be
sold at an aggregate price below the par or face value thereof if such
sale would result in a net interest cost to the commission calculated
upon the entire issue so sold of more than six percent per annum payable
semi-annually, according to standard tables of bond values. All bonds
issued and sold for cash pursuant to this act shall be sold on sealed
proposals to the highest bidder. Prior to such sale, the commission
shall advertise for bids by publication of a notice of sale not less
than ten days prior to the date of sale, at least once in a newspaper of
general circulation printed and published in New York City carrying
municipal bond notices and devoted primarily to financial news. The
commission may reject any and all bids submitted and may thereafter sell
the bonds so advertised for sale at private sale to any financially
responsible bidder under such terms and conditions as it deems most
advantageous to the public interest, but the bonds shall not be sold at
a net interest cost calculated upon the entire issue so advertised,
greater than the lowest bid which was rejected. In the event the
commission desires to issue its bonds in exchange for an existing
facility or portion thereof, or in exchange for bonds secured by the
revenues of an existing facility, it may exchange such bonds for the
existing facility or portion thereof or for the bonds so secured, plus
an additional amount of cash, without advertising such bonds for sale.
12.14 Negotiability.

All bonds issued under the provisions of this compact are negotiable
instruments, except when registered in the name of a registered owner.
12.15 Legal investments.

Bonds of the commission shall be legal investments for savings banks,
fiduciaries and public funds in each of the signatory states.
12.16 Validation proceedings.

Prior to the issuance of any bonds, the commission may institute a
special proceeding to determine the legality of proceedings to issue the
bonds and their validity under the laws of any of the signatory parties.
Such proceedings shall be instituted and prosecuted in rem and the
judgment rendered therein shall be conclusive against all persons
whomsoever and against each of the signatory parties.
12.17 Recording.

No indenture need be recorded or filed in any public office, other
than the office of the commission. The pledge of revenues provided in
any indenture shall take effect forthwith as provided therein and
irrespective of the date of receipt of such revenues by the commission
or the indenture trustee. Such pledge shall be effective as provided in
the indenture without physical delivery of the revenues to the
commission or to the indenture trustee.
12.18 Pledged revenues.

Bond redemption and interest payments shall, to the extent provided in
the resolution or indenture, constitute a first, direct and exclusive
charge and lien on all such rates, rents, tolls, fees and charges and
other revenues and interest thereon received from the use and operation
of the facility, and on any sinking or other funds created therefrom.
All such rates, rents, tolls, fees, charges and other revenues, together
with interest thereon, shall constitute a trust fund for the security
and payment of such bonds and except as and to the extent provided in
the indenture with respect to the payment therefrom of expenses for
other purposes including administration, operation, maintenance,
improvements or extensions of the facilities or other purposes shall not
be used or pledged for any other purpose so long as such bonds, or any
of them, are outstanding and unpaid.
12.19 Remedies.

The holder of any bond may for the equal benefit and protection of all
holders of bonds similarly situated: (a) by mandamus or other
appropriate proceedings require and compel the performance of any of the
duties imposed upon the commission or assumed by it, its officers,
agents or employees under the provisions of any indenture, in connection
with the acquisition, construction, operation, maintenance, repair,
reconstruction or insurance of the facilities, or in connection with the
collection, deposit, investment, application and disbursement of the
rates, rents, tolls, fees, charges and other revenues derived from the
operation and use of the facilities, or in connection with the deposit,
investment and disbursement of the proceeds received from the sale of
bonds; or (b) by action or suit in a court of competent jurisdiction of
any signatory party require the commission to account as if it were the
trustee of an express trust, or enjoin any acts or things which may be
unlawful or in violation of the rights of the holders of the bonds. The
enumeration of such rights and remedies does not, however, exclude the
exercise or prosecution of any other rights or remedies available to the
holders of bonds.
12.20 Capital financing by signatory parties; guarantees.

(a) The signatory parties will provide such capital funds required for
projects of the commission as may be authorized by their respective
statutes in accordance with a cost sharing plan prepared pursuant to
Article 11 of this compact; but nothing in this section shall be deemed
to impose any mandatory obligation on any of the signatory parties other
than such obligations as may be assumed by a signatory party in
connection with a specific project or facility.

(b) Bonds of the commission, notwithstanding any other provision of
this compact, may be executed and delivered to any duly authorized
agency of any of the signatory parties without public offering and may
be sold and resold with or without the guarantee of such signatory
party, subject to and in accordance with the constitutions of the
respective signatory parties.

(c) The commission may receive and accept, and the signatory parties
may make, loans, grants, appropriations, advances and payments of
reimbursable or non-reimbursable funds or property in any form for the
capital or operating purposes of the commission.

ARTICLE 13--PLAN, PROGRAM AND BUDGETS
Section 13.1 Comprehensive plan.

The commission shall develop and adopt, and may from time to time
review and revise, a comprehensive plan for the immediate and long range
development and use of the water resources of the basin. The plan shall
include all public and private projects and facilities which are
required, in the judgment of the commission, for the optimum planning,
development, conservation, utilization, management and control of the
water resources of the basin to meet present and future needs; provided
that the plan shall include any projects required to conform with any
present or future decree or judgment of any court of competent
jurisdiction. The commission may adopt a comprehensive plan or any
revision thereof in such part or parts as it may deem appropriate,
provided that before the adoption of the plan or any part or revision
thereof the commission shall consult with water users and interested
public bodies and public utilities and shall consider and give due
regard to the findings and recommendations of the various agencies of
the signatory parties and their political subdivisions. The commission
shall conduct public hearings with respect to the comprehensive plan
prior to the adoption of the plan or any part or revision thereof.
13.2 Water resources program.

The commission shall annually adopt a water resources program, based
upon the comprehensive plan, consisting of the projects and facilities
which the commission proposes to be undertaken by the commission and by
other authorized governmental and private agencies, organizations and
persons during the ensuing six years or such other reasonably
foreseeable period as the commission may determine. The water resources
program shall include a systematic presentation of:

1) the quantity and quality of water resources needs for such period;

2) the existing and proposed projects and facilities required to
satisfy such needs, including all public and private projects to be
anticipated;

3) a separate statement of the projects proposed to be undertaken by
the commission during such period.
13.3 Annual current expense and capital budgets.

(a) The commission shall annually adopt a capital budget including all
capital projects it proposes to undertake or continue during the budget
period containing a statement of the estimated cost of each project and
the method of financing thereof.

(b) The commission shall annually adopt a current expense budget for
each fiscal year. Such budget shall include the commission's estimated
expenses for administration, operation, maintenance and repairs,
including a separate statement thereof for each project, together with
its cost allocation. The total of such expenses shall be balanced by the
commission's estimated revenues from all sources, including the cost
allocations undertaken by any of the signatory parties in connection
with any project. Following the adoption of the annual current expense
budget by the commission, the executive director of the commission
shall:

1) certify to the respective signatory parties the amounts due in
accordance with existing cost sharing established for each project; and

2) transmit certified copies of such budget to the principal budget
officer of the respective signatory parties at such time and in such
manner as may be required under their respective budgetary procedures.
The amount required to balance the current expense budget in addition to
the aggregate amount of item (1) above and all other revenues available
to the commission shall be apportioned equitably among the signatory
parties by unanimous vote of the commission, and the amount of such
apportionment to each signatory party shall be certified together with
the budget.

(c) The respective signatory parties covenant and agree to include the
amounts so apportioned for the support of the current expense budget in
their respective budgets next to be adopted, subject to such review and
approval as may be required by their respective budgetary processes.
Such amounts shall be due and payable to the commission in quarterly
installments during its fiscal year, provided that the commission may
draw upon its working capital to finance its current expense budget
pending remittances by the signatory parties.

ARTICLE 14--GENERAL PROVISIONS
Section 14.1 Auxiliary powers of commission; functions of commissioners.

(a) The commission, for the purposes of this compact, may:

1) Adopt and use a corporate seal, enter into contracts, sue and be
sued in all courts of competent jurisdiction;

2) Receive and accept such payments, appropriations, grants, gifts,
loans, advances and other funds, properties and services as may be
transferred or made available to it by any signatory party or by any
other public or private corporation or individual, and enter into
agreements to make reimbursement for all or part thereof;

3) Provide for, acquire and adopt detailed engineering,
administrative, financial and operating plans and specifications to
effectuate, maintain or develop any facility or project;

4) Control and regulate the use of facilities owned or operated by the
commission;

5) Acquire, own, operate, maintain, control, sell and convey real and
personal property and any interest therein by contract, purchase, lease,
license, mortgage or otherwise as it may deem necessary for any project
or facility, including any and all appurtenances thereto necessary,
useful or convenient for such ownership, operation, control, maintenance
or conveyance;

6) Have and exercise all corporate powers essential to the declared
objects and purposes of the commission.

(b) The commissioners, subject to the provisions of this compact,
shall:

1) Serve as the governing body of the commission, and exercise and
discharge its powers and duties except as otherwise provided by or
pursuant to this compact;

2) Determine the character of and the necessity for its obligations
and expenditures and the manner in which they shall be incurred,
allowed, and paid subject to any provisions of law specifically
applicable to agencies or instrumentalities created by compact;

3) Provide for the internal organization and administration of the
commission;

4) Appoint the principal officers of the commission and delegate to
and allocate among them administrative functions, powers and duties;

5) Create and abolish offices, employments and positions as it deems
necessary for the purposes of the commission, and subject to the
provisions of this article, fix and provide for the qualification,
appointment, removal, term, tenure, compensation, pension and retirement
rights of its officers and employees;

6) Let and execute contracts to carry out the powers of the
commission.
14.2 Regulations; enforcement.

The commission may:

(a) Make and enforce reasonable rules and regulations for the
effectuation, application and enforcement of this compact; and it may
adopt and enforce practices and schedules for or in connection with the
use, maintenance and administration of projects and facilities it may
own or operate and any product or service rendered thereby; provided
that any rule or regulation, other than one which deals solely with the
internal management of the commission, shall be adopted only after
public hearing and shall not be effective unless and until filed in
accordance with the law of the respective signatory parties applicable
to administrative rules and regulations generally; and

(b) Designate any officer, agent or employee of the commission to be
an investigator or watchman and such person shall be vested with the
powers of a peace officer of the state in which he is duly assigned to
perform his duties.
14.3 Tax exemption.

The commission, its property, functions, and activities shall be
exempt from taxation by or under the authority of any of the signatory
parties or any political subdivision thereof; provided that in lieu of
property taxes the commission shall, as to specific projects, make
payments to local taxing districts in annual amounts which shall equal
the taxes lawfully assessed upon property for the tax year next prior to
its acquisition by the commission for a period of ten years. The nature
and amount of such payments shall be reviewed by the commission at the
end of ten years, and from time to time thereafter, upon reasonable
notice and opportunity to be heard to the affected taxing district, and
the payments may be thereupon terminated or continued in such reasonable
amount as may be necessary or desirable to take into account hardships
incurred and benefits received by the taxing jurisdiction which are
attributable to the project.
14.4 Meetings; public hearing; records, minutes.

(a) All meetings of the commission shall be open to the public.

(b) The commission shall conduct at least one public hearing prior to
the adoption of the comprehensive plan, water resources program, annual
capital and current expense budgets, the letting of any contract for the
sale or other disposition by the commission of hydroelectric energy or
water resources to any person, corporation or entity, and in all other
cases wherein this compact requires a public hearing. Such hearing shall
be held upon at least ten days public notice given by posting at the
offices of the commission. The commission shall also provide forthwith
for distribution of such notice to the press and by the mailing of a
copy thereof to any person who shall request such notices.

(c) The minutes of the commission shall be a public record open to
inspection at its offices during regular business hours.
14.5 Officers generally.

(a) The officers of the commission shall consist of an executive
director and such additional officers, deputies and assistants as the
commission may determine. The executive director shall be appointed and
may be removed by the affirmative vote of a majority of the full
membership of the commission. All other officers and employees shall be
appointed by the executive director under such rules of procedure as the
commission may determine.

(b) In the appointment and promotion of officers and employees for the
commission, no political, racial, religious or residence test or
qualification shall be permitted or given consideration, but all such
appointments and promotions shall be solely on the basis of merit and
fitness. Any officer or employee of the commission who is found by the
commission to be guilty of a violation of this section shall be removed
from office by the commission.
14.6 Oath of office.

An oath of office in such form as the commission shall prescribe shall
be taken, subscribed and filed with the commission by the executive
director and by each officer appointed by him not later than fifteen
days after the appointment.
14.7 Bond.

Each officer shall give such bond and in such form and amount as the
commission may require for which the commission may pay the premium.
14.8 Prohibited activities.

(a) No commissioner officer or employee shall:

1) be financially interested, either directly or indirectly, in any
contract, sale, purchase, lease or transfer of real or personal property
to which the commission is a party;

2) solicit or accept money or any other thing of value in addition to
the compensation or expenses paid him by the commission for services
performed within the scope of his official duties;

3) offer money or any thing of value for or in consideration of
obtaining an appointment, promotion or privilege in his employment with
the commission.

(b) Any officer or employee who shall willfully violate any of the
provisions of this section shall forfeit his office or employment.

(c) Any contract or agreement knowingly made in controvention of this
section is void.

(d) Officers and employees of the commission shall be subject in
addition to the provisions of this section to such criminal and civil
sanctions for misconduct in office as may be imposed by federal law and
the law of the signatory state in which such misconduct occurs.
14.9 Purchasing.

Contracts for the construction, reconstruction or improvement of any
facility when the expenditure required exceeds ten thousand dollars and
contracts for the purchase of services, supplies, equipment and
materials when the expenditure required exceeds two thousand five
hundred dollars shall be advertised and let upon sealed bids to the
lowest responsible bidder. Notice requesting such bids shall be
published in a manner reasonably likely to attract prospective bidders,
which publication shall be made at least ten days before bids are
received and in at least two newspapers of general circulation in the
basin. The commission may reject any and all bids and readvertise in its
discretion. If after rejecting bids the commission determines and
resolves that in its opinion the supplies, equipment and materials may
be purchased at a lower price in the open market, the commission may
give each responsible bidder an opportunity to negotiate a price and may
proceed to purchase the supplies, equipment and materials in the open
market at a negotiated price which is lower than the lowest rejected bid
of a responsible bidder, without further observance of the provisions
requiring bids or notice. The commission shall adopt rules and
regulations to provide for purchasing from the lowest responsible bidder
when sealed bids, notice and publication are not required by this
section. The commission may suspend and waive the provisions of this
section requiring competitive bids whenever:

1) the purchase is to be made from or the contract to be made with the
federal or any state government or any agency or political subdivision
thereof or pursuant to any open end bulk purchase contract of any of
them;

2) the public exigency requires the immediate delivery of the articles
or performance of the service;

3) only one source of supply is available;

4) the equipment to be purchased is of a technical nature and the
procurement thereof without advertising is necessary in order to assure
standardization of equipment and interchangeability of parts in the
public interest; or

5) services are to be provided of a specialized or professional
nature.
14.10 Insurance.

The commission may self-insure or purchase insurance and pay the
premiums therefor against loss or damage to any of its properties;
against liability for injury to persons or property; and against loss of
revenue from any cause whatsoever. Such insurance coverage shall be in
such form and amount as the commission may determine, subject to the
requirements of any agreement arising out of the issuance of bonds by
the commission.
14.11 Annual independent audit.

(a) As soon as practical after the closing of the fiscal year, an
audit shall be made of the financial accounts of the commission. The
audit shall be made by qualified certified public accountants selected
by the commission, who have no personal interest direct or indirect in
the financial affairs of the commission or any of its officers or
employees. The report of audit shall be prepared in accordance with
accepted accounting practices and shall be filed with the chairman and
such other officers as the commission shall direct. Copies of the report
shall be distributed to each commissioner and shall be made available
for public distribution.

(b) Each signatory party by its duly authorized officers shall be
entitled to examine and audit at any time all of the books, documents,
records, files and accounts and all other papers, things or property of
the commission. The representatives of the signatory parties shall have
access to all books, documents, records, accounts, reports, files and
all other papers, things or property belonging to or in use by the
commission and necessary to facilitate the audit and they shall be
afforded full facilities for verifying transactions with the balances or
securities held by depositaries, fiscal agents and custodians.

(c) The financial transactions of the commission shall be subject to
audit by the general accounting office in accordance with the principles
and procedures applicable to commercial corporate transactions and under
such rules and regulations as may be prescribed by the comptroller
general of the United States. The audit shall be conducted at the place
or places where the accounts of the commission are kept.

(d) Any officer or employee who shall refuse to give all required
assistance and information to the accountants selected by the commission
or to the authorized officers of any signatory party or who shall refuse
to submit to them for examination such books, documents, records, files,
accounts, papers, things or property as may be requested shall forfeit
his office.
14.12 Reports.

The commission shall make and publish an annual report to the
legislative bodies of the signatory parties and to the public reporting
on its programs, operations and finances. It may also prepare, publish
and distribute such other public reports and informational materials as
it may deem necessary or desirable.
14.13 Grants, loans or payments by states or political subdivisions.

(a) Any or all of the signatory parties or any political subdivision
thereof may:

1) Appropriate to the commission such funds as may be necessary to pay
preliminary expenses such as the expenses incurred in the making of
borings, and other studies of subsurface conditions, in the preparation
of contracts for the sale of water and in the preparation of detailed
plans and estimates required for the financing of a project;

2) Advance to the commission, either as grants or loans, such funds as
may be necessary or convenient to finance the operation and management
of or construction by the commission of any facility or project;

3) Make payments to the commission for benefits received or to be
received from the operation of any of the projects or facilities of the
commission.

(b) Any funds which may be loaned to the commission either by a
signatory party or a political subdivision thereof shall be repaid by
the commission through the issuance of bonds or out of other income of
the commission, such repayment to be made within such period and upon
such terms as may be agreed upon between the commission and the
signatory party or political subdivision making the loan.
14.14 Condemnation proceedings.

(a) The commission shall have the power to acquire by condemnation the
fee or any lesser interest in lands, lands lying under water,
development rights in land, riparian rights, water rights, waters and
other real or personal property within the basin for any project or
facility authorized pursuant to this compact. This grant of power of
eminent domain includes but is not limited to the power to condemn for
the purposes of this compact any property already devoted to a public
use, by whomsoever owned or held, other than property of a signatory
party and any property held, constructed, operated or maintained in
connection with a diversion authorized by a United States Supreme Court
decree. Any condemnation of any property or franchises owned or used by
a municipal or privately owned public utility, unless the affected
public utility facility is to be relocated or replaced, shall be subject
to the authority of such state board, commission or other body as may
have regulatory jurisdiction over such public utility.

(b) Such power of condemnation shall be exercised in accordance with
the provisions of any federal law applicable to the commission; provided
that if there is no such applicable federal law, condemnation
proceedings shall be in accordance with the provisions of such general
state condemnation law as may be in force in the signatory state in
which the property is located.

(c) Any award or compensation for the taking of property pursuant to
this article shall be paid by the commission, and none of the signatory
parties nor any other agency, instrumentality or political subdivision
thereof shall be liable for such award or compensation.
14.15 Conveyance of lands and relocation of public facilities.

(a) The respective officers, agencies, departments, commissions or
bodies having jurisdiction and control over real and personal property
owned by the signatory parties are authorized and empowered to transfer
and convey in accordance with the laws of the respective parties to the
commission any such property as may be necessary or convenient to the
effectuation of the authorized purposes of the commission.

(b) Each political subdivision of each of the signatory parties is
authorized and empowered, notwithstanding any contrary provision of law,
to grant and convey to the commission, upon the commission's request,
any real property or any interest therein owned by such political
subdivision including lands lying under water and lands already devoted
to public use which may be necessary or convenient to the effectuation
of the authorized purposes of the commission.

(c) Any highway, public utility or other public facility which will be
dislocated by reason of a project deemed necessary by the commission to
effectuate the authorized purposes of this compact shall be relocated
and the cost thereof shall be paid in accordance with the law of the
state in which the facility is located; provided that the cost of such
relocation payable by the commission shall not in any event exceed the
expenditure required to serve the public convenience and necessity.
14.16 Rights of way.

Permission is hereby granted to the commission to locate, construct
and maintain any aqueducts, lines, pipes, conduits and auxiliary
facilities authorized to be acquired, constructed, owned, operated or
maintained by the commission in, over, under or across any streets and
highways now or hereafter owned, opened or dedicated to or for public
use, subject to such reasonable conditions as the highway department of
the signatory party may require.
14.17 Penal sanction.

Any person, association or corporation who violates or attempts or
conspires to violate any provision of this compact or any rule,
regulation or order of the commission duly made, promulgated or issued
pursuant to the compact in addition to any other remedy, penalty or
consequence provided by law shall be punishable as may be provided by
statute of any of the signatory parties within which the offense is
committed; provided that in the absence of such provision any such
person, association or corporation shall be liable to a penalty of not
less than $50 nor more than $1000 for each such offense to be fixed by
the court which the commission may recover in its own name in any court
of competent jurisdiction, and in a summary proceeding where available
under the practice and procedure of such court. For the purposes of this
section in the event of a continuing offense each day of such violation,
attempt or conspiracy shall constitute a separate offense.
14.18 Tort liability.

The commission shall be responsible for claims arising out of the
negligent acts or omissions of its officers, agents and employees only
to the extent and subject to the procedures prescribed by law generally
with respect to officers, agents and employees of the government of the
United States.
14.19 Effect on riparian rights.

Nothing contained in this compact shall be construed as affecting or
intending to affect or in any way to interfere with the law of the
respective signatory parties relating to riparian rights.
14.20 Amendments and supplements.

Amendments and supplements to this compact to implement the purposes
thereof may be adopted by legislative action of any of the signatory
parties concurred in by all of the others.
14.21 Construction and severability.

The provisions of this act and of agreements thereunder shall be
severable and if any phrase, clause, sentence or provision of this
compact or such agreement is declared to be unconstitutional or the
applicability thereof to any signatory party, agency or person is held
invalid, the constitutionality of the remainder of this compact or such
agreement and the applicability thereof to any other signatory party,
agency, person or circumstance shall not be affected thereby. It is the
legislative intent that the provisions of this compact be reasonably and
liberally construed.
14.22 Effective date; execution.

This compact shall become binding and effective thirty days after the
enactment of concurring legislation by the federal government, the
states of Delaware, New Jersey and New York, and the Commonwealth of
Pennsylvania. The compact shall be signed and sealed in six duplicate
original copies by the respective chief executives of the signatory
parties. One such copy shall be filed with the Secretary of State of
each of the signatory parties or in accordance with the laws of the
state in which the filing is made, and one copy shall be filed and
retained in the archives of the commission upon its organization. The
signatures shall be affixed and attested under the following form:

In Witness Whereof, and in evidence of the adoption and enactment into
law of this compact by the Congress and legislatures, respectively, of
the signatory parties, the President of the United States and the
respective Governors do hereby, in accordance with authority conferred
by law, sign this compact in six duplicate original copies, as attested
by the respective secretaries of state, and have caused the seals of the
United States and of the respective states to be hereunto affixed
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