§ 21-1301. Susquehanna river basin compact.

The Susquehanna river basin compact as first entered into pursuant to
chapter 785 of the laws of 1967, is hereby continued as follows:

SUSQUEHANNA RIVER BASIN COMPACT

Preamble
Whereas the signatory parties hereto recognize the water resources of
the Susquehanna River Basin as regional assets vested with local, state,
and national interest for which they have a joint responsibility; and
declare as follows:

1. The conservation, utilization, development, management, and control
of the water resources of the Susquehanna River Basin under
comprehensive multiple purpose planning will bring the greatest benefits
and produce the most efficient service in the public interest; and

2. This comprehensive planning administered by a basin-wide agency
will provide flood damage reduction, conservation and development of
surface and ground 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 forest land management, soil conservation, and watershed projects,
protection and aid to fisheries, development of hydroelectric power
potentialities, improved navigation, control of the movement of salt
water, abatement and control of water pollution, and regulation of
stream flows toward the attainment of these goals; and

3. The water resources of the basin are presently subject to the
duplicating, overlapping, and uncoordinated administration of a large
number of governmental agencies which exercise a multiplicity of powers
resulting in a splintering of authority and responsibility; and

4. The Interstate Advisory Committee on the Susquehanna River Basin,
created by action of the states of New York, Pennsylvania, and Maryland,
on the basis of its studies and deliberation has concluded that regional
development of the Susquehanna River Basin is feasible, advisable, and
urgently needed, and has recommended that an intergovernmental compact
with Federal participation be consummated to this end; and

5. The Congress of the United States and the executive branch of the
Federal government have recognized a national interest in the
Susquehanna River Basin by authorizing and directing the Corps of
Engineers of the Department of the Army, the Department of Agriculture,
the Department of Health, Education and Welfare, the Department of
Interior, and other Federal agencies to cooperate in making
comprehensive surveys and reports concerning the water resources of the
Susquehanna River Basin in which individually or severally the technical
aid and assistance of many Federal and state agencies have been
enlisted, and which are being or have been coordinated through a
Susquehanna River Basin Study Coordinating Committee on which the Corps
of Engineers of the Department of the Army, the Department of
Agriculture, the Department of Commerce, the Department of Health,
Education and Welfare, the Department of Interior, the Department of
Housing and Urban Development and its predecessor Housing and Home
Finance Agency, the Federal Power Commission, and the States of New
York, Pennsylvania, and Maryland are or were represented; and

6. Some three million people live and work in the Susquehanna River
Basin and its environs, and the government, employment, industry, and
economic development of the entire region and the health, safety, and
general well being of its population are and will continue to be
affected vitally by the conservation, utilization, development,
management, and control of the water resources of the basin; and

7. Demands upon the water resources of the basin are expected to mount
because of anticipated increases in population and by reason of
industrial and economic growth of the basin and its service area; and

8. Water resources planning and development are technical, complex,
and expensive, often requiring fifteen to twenty years from the
conception to the completion of large or extensive projects; and

9. The public interest requires that facilities must be ready and
operative when and where needed, to avoid the damages of unexpected
floods or prolonged drought, and for other purposes; and

10. The Interstate Advisory Committee on the Susquehanna River Basin
has prepared a draft of an intergovernmental compact for the creation of
a basin agency, and the signatory parties desire to effectuate the
purposes thereof;
Now therefore

The States of New York and Maryland 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, to the Susquehanna River Basin Compact which consists of
this Preamble and the Articles that follow.

ARTICLE 1--SHORT TITLE, DEFINITIONS, PURPOSES, AND LIMITATIONS

Section 1.1. Short Title.

This compact shall be known and may be cited as the Susquehanna River
Basin Compact.

1.2 Definitions.

For the purposes of this compact, and of any supplemental or
concurring legislation enacted pursuant to it:

1. "Basin" shall mean the area of drainage of the Susquehanna River
and its tributaries into Chesapeake Bay to the southern edge of the
Pennsylvania Railroad bridge between Harve de Grace and Perryvile,
Maryland.

2. "Commission" shall mean the Susquehanna River Basin Commission
hereby created, and the term "Commissioner" shall mean a member of the
commission.

3. "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.

4. "Diversion" shall mean the transfer of water into or from the
basin.

5. "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 or otherwise
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; of 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.

6. "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.

7. "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 by the commission or
otherwise 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.

8. "Signatory party" shall mean a state or commonwealth party to this
compact, or the Federal government.

9. "Waters" shall mean both surface and underground waters which are
contained within the drainage area of the Susquehanna River in the
states of New York, Pennsylvania, and Maryland.

10. "Water resources" shall include all waters and related natural
resources within the basin.

11. "Withdrawal" shall mean a taking or removal of water from any
source within the basin for use within the basin.

12. "Person" shall mean an individual, corporation, partnership,
unincorporated association, and the like and shall have no gender, and
the singular shall include the plural.

1.3 Purpose and Findings.

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

1. The water resources of the Susquehanna River Basin are affected
with a local, state, regional, and national interest, and the planning,
conservation, utilization, development, management, and control of these
resources, under appropriate arrangements for intergovernmental
cooperation, are public purposes of the respective signatory parties.

2. The water resources of the basin are subject to the sovereign
rights and responsibilities of the signatory parties, and it is the
purpose of this compact to provide for a joint exercise of these powers
of sovereignty in the common interest of the people of the region.

3. 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 water resources efforts and programs of
federal, state, and local governments and of private enterprise.

4. Present and future demands require increasing economies and
efficiencies in the use and reuse of water resources, and these can be
brought about only by comprehensive planning, programming, and
management under the direction of a single administrative agency.

5. In general, the purposes of this compact are to promote interstate
comity; to remove causes of possible controversy; to make secure and
protect 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
and coordinated planning and action by the signatory parties with
respect to water resources; and to apply the principle of equal and
uniform treatment to all users of water and of water related facilities
without regard to political boundaries.

6. It is the express intent of the signatory parties that the
commission shall engage in the construction, operation, and maintenance
of a project only when the project is necessary to the execution of the
comprehensive plan and no other competent agency is in a position to
act, or such agency fails to act.

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 provisions 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 hereto is recognized by the signatory parties.

1.5 Duration of Compact.

(a) The duration of this compact shall be for an intitial period of
100 years from its effective date, and it shall be continued for
additional periods of 100 years if not less than 20 years nor more 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 this compact should be terminated by operation of
paragraph (a) above, the commission shall be dissolved, its assets and
liabilities transferred in accordance with the equities of the signatory
parties therein, and its corporate affairs wound up in accordance with
agreement of the signatory parties or, failing agreement, by act of the
Congress.

ARTICLE 2--ORGANIZATION AND AREA

Section 2.1 Commission Created.

The Susquehanna 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 members of the commission shall be the governor or the designee of
the governor of each signatory state, to act for him, and one member to
be appointed by the President of the United States to serve at the
pleasure of the President.

2.3 Alternates.

An alternate from each signatory party shall be appointed by its
member of the commission unless otherwise provided by the laws of the
signatory party. The alternate, in the absence of the member, shall
represent the member and act for him. In the event of a vacancy in the
office of alternate, it shall be filled in the same manner as the
original appointment.

2.4 Compensation.

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

2.5 Voting Power.

Each member is entitled to one vote. No action of the commission may
be taken unless three of the four members vote in favor thereof.

2.6 Organization and Procedure.

The commission shall provide for its own organization and procedure,
and shall adopt the 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 from the commission, 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. Outside the basin,
the commission shall act at its discretion, but only to the extent
necessary to implement its responsibilities within the basin, and where
necessary subject to the consent of the state wherein it proposes to
act.

ARTICLE 3--POWERS AND DUTIES OF THE COMMISSION

Section 3.1 General.

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 resources
conservation and management in the basin. It shall encourage and direct
the planning, development, operation, and subject to applicable laws the
financing of water resources projects according to such plans and
policies.

3.2 Policy.

It is the policy of the signatory parties to preserve and utilize the
functions, powers, and duties of the existing offices and agencies of
government to the extent consistent with this compact, and the
commission is directed to utilize those offices and agencies for the
purposes of this compact.

3.3 Comprehensive Plan, Program and Budgets.

The commission in accordance with Article 14 of this compact, shall
formulate and adopt:

1. A comprehensive plan, after consultation with appropriate water
users and interested public bodies for the immediate and long range
development and use of the water resources of the basin;

2. 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

3. An annual current expense budget and an annual capital budget
consistent with the commission's program, projects, and facilities for
the budget period.

3.4 Powers of Commission.

The commission may:

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

2. Establish standards of planning, design, and operation of all
projects and facilities in the basin to the extent they affect water
resources, including without limitation thereto water, sewage and other
waste treatment plants and facilities, pipelines, transmission lines,
stream and lake recreational facilities, trunk mains for water
distribution, local flood protection works, watershed management
programs, and ground water recharging operations.

3. Conduct and sponsor research on water resources and 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 other economic factors, and general hydrological
conditions.

4. Collect, compile, coordinate, and interpret systematic surface and
ground water data, and publicize such information when and as needed for
water uses, flood warning, quality maintenance, or other purposes.

5. Conduct ground and surface water investigations, tests, and
operations, and compile data relating thereto as may be required to
formulate and administer the comprehensive plan.

6. Prepare, publish, and disseminate information and reports
concerning the water problems of the basin and for the presentation of
the needs and resources of the basin and policies of the commission to
executive and legislative branches of the signatory parties.

7. Negotiate loans, grants, gifts, 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 receive and
accept them upon terms and conditions, and subject to provisions, as may
be required by Federal or state law or as the commission may deem
necessary or desirable.

8. 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 and other
powers which reasonably may be implied therefrom.

9. Adopt, amend, and repeal rules and regulations to implement this
compact.

3.5 Duties of the Commission.

The commission shall:

1. Develop and effectuate plans, policies, and projects relating to
water resources, adopt, promote, and coordinate policies and standards
for water resources conservation, control, utilization, and management,
and promote and implement the planning, development, and financing of
water resources projects.

2. Undertake investigations, studies, and surveys, and acquire,
construct, operate, and maintain projects and facilities in regard to
the water resources of the basin, whenever it is deemed necessary to do
so to activate or effectuate any of the provisions of this compact.

3. Administer, manage, and control water resources in all matters
determined by the commission to be interstate in nature or to have a
major effect on the water resources and water resources management.

4. Assume jurisdiction in any matter affecting water resources
whenever it determines after investigation and public hearing upon due
notice given, that the effectuation of the comprehensive plan or the
implementation of this compact so requires. If the commission finds upon
subsequent hearing requested by an affected signatory party that the
party will take the necessary action, the commission may relinquish
jurisdiction.

5. Investigate and determine if the requirements of the compact or the
rules and regulations of the commission are complied with, and if
satisfactory progress has not been made, institute an action or actions
in its own name in any state or federal court of competent jurisdiction
to compel compliance with any and all of the provisions of this compact
or any of the rules and regulations of the commission adopted pursuant
thereto. An action shall be instituted in the name of the commission and
shall be conducted by its own counsel.

3.6 Cooperative Legislation and Further Jurisdiction.

(a) Each of the signatory parties agrees that it will seek enactment
of such additional legislation as will be required to enable its
officers, departments, commissions, boards, and agents to accomplish
effectively the obligations and duties assumed under the terms of this
compact.

(b) Nothing in the 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 within its
jurisdiction.

3.7 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:

1. Advise, consult, contract, financially assist, or otherwise
cooperate with any and all such agencies;

2. 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;

3. 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;

4. 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.

3.8 Allocations, Diversions, and Releases.

(a) The commission shall have power from time to time as the need
appears, to allocate the waters of the basin to and among the states
signatory to this compact and impose related conditions, obligations,
and release requirements.

(b) The commission shall have power from time to time as the need
appears to enter into agreements with other river basin commissions or
other states with respect to in-basin and out-of-basin allocations,
withdrawals, and diversions.

(c) No allocation of waters 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. This subsection 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.

3.9 Rates and Charges.

The commission, from time to time after public hearing upon due notice
given may fix, alter, and revise rates, rentals, charges, and tolls, and
classifications thereof, without regulation or control by any
department, office, or agency of any signatory party, for the use of
facilities owned or operated by it, and any services or products which
it provides.

3.10 Referral and Review.

No projects affecting the water resources of the basin, except those
not requiring review and approval by the commission under paragraph 3
following, shall be undertaken by any person, governmental authority or
other entity prior to submission to and approval by the commission or
appropriate agencies of the signatory parties for review.

1. All water resources projects for which a permit or other form of
permission to proceed with construction or implementation is required by
legislative action of a signatory party or by rule or regulation of an
office or agency of a signatory party having functions, powers, and
duties in the planning, conservation, development, management, or
control of water resources shall be submitted as heretofore to the
appropriate office or agency of the signatory party for review and
approval. To assure that the commission is apprised of all projects
within the basin, monthly reports and listings of all permits granted,
or similar actions taken, by offices or agencies of the signatory
parties shall be submitted to the commission in a manner prescribed by
it.

Those projects which also require commission approval pursuant to the
provisions of paragraphs 2(ii) and 2(iii) following shall be submitted
to the commission through appropriate offices or agencies of a signatory
party, except that, if no agency of a signatory party has jurisdiction,
such projects shall be submitted directly to the commission in such
manner as the commission shall prescribe.

2. Approval of the commission shall be required for, but not limited
to, the following:

(i) All projects on or crossing the boundary between any two signatory
states;

(ii) Any project involving the diversion of water;

(iii) Any project within the boundaries of any signatory state found
and determined by the commission or by any agency of a signatory party
having functions, powers, and duties in the planning, conservation,
development, management, or control of water resources to have a
significant effect on water resources within another signatory state;
and

(iv) Any project which has been included by the commission, after
hearing, as provided in Article 14, Section 14.1, as a part of the
commission's comprehensive plan for the development of the water
resources of the basin, or which would have a significant effect upon
the plan.

3. Review and approval by the commission shall not be required for:

(i) Projects which fall into an exempt classification or designation
established by legislative action of a signatory party or by rule or
regulation of an office or agency of a signatory party having functions,
powers, and duties in the planning, conservation, development,
management, or control of water resources. The sponsors of those
projects are not required to obtain a permit or other form of permission
to proceed with construction or implementation, unless it is determined
by the commission or by the agency of a signatory party that such
project or projects may cause an adverse, adverse cumulative, or an
interstate effect on water resources of the basin, and the project
sponsor has been notified in writing by the commission or by the agency
of a signatory party that commission approval is required.

(ii) Projects which are classified by the commission as not requiring
its view and approval, for so long as they are so classified.

4. The commission shall approve a project if it determines that the
project is not detrimental to the proper conservation, development,
management, or control of the water resources of the basin and may
modify and approve as modified, or may disapprove the project, if it
determines that the project is not in the best interest of the
conservation, development, management, or control of the basin's water
resources, or is in conflict with the comprehensive plan.

5. The commission, after consultation with the appropriate offices or
agencies of the signatory parties, shall establish the procedure of
submission, review, and consideration of projects. Any procedure for
review and approval of diversions of water shall include public hearing
on due notice given with opportunity for interested persons, agencies,
governmental units, and signatory parties to be heard and to present
evidence. A complete transcript of the proceedings at the hearing shall
be made and preserved, and it shall be made available under rules for
that purpose adopted by the commission.

6. Any determination of the commission pursuant to this article or any
article of the compact providing for judicial review shall be subject to
such judicial review in any court of competent jurisdiction, provided
that an action or proceeding or for such review is commenced within 90
days from the effective date of the determination sought to be reviewed;
but a determination of the commission concerning a diversion, under
Section 3.10-2(ii) with the claimed effect of reducing below a proper
minimum the flow of water in that portion of the basin within the area
of a signatory party, shall be subject to judicial review under the
particular provisions of paragraph 7 below.

7. Any signatory party deeming itself aggrieved by an action of the
commission concerning a diversion under Section 3.10-2(ii) with the
claimed effect of reducing below a proper minimum the flow of water in
that portion of the basin which lies within the area of that signatory
party, and notwithstanding the powers provided to the commission by this
compact, may have review of commission action approving the diversion in
the Supreme Court of the United States; provided that a proceeding for
such review is commenced within one year from the date of action sought
to be reviewed. Any such review shall be on the record made before the
commission. The action of the commission shall be affirmed, unless the
court finds that it is not supported by substantial evidence.

3.11 Advisory Committees.

The commission may constitute and empower advisory committees.

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 water 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, construct, 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 the diversion is 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 provide water management and regulation in the main
stream or any tributary in the basin and, in accordance with the
procedures of applicable state laws, 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 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--WATER QUALITY MANAGEMENT AND CONTROL

Section 5.1 General Powers.

(a) The commission may undertake or contract for investigations,
studies, and surveys pertaining to existing water quality, effects of
varied actual or projected operations on water quality, new compounds
and materials and probable future water quality in the basin. The
commission may receive, expend, and administer funds, Federal, state,
local, or private as may be available to carry out these functions
relating to water quality investigations.

(b) The commission may acquire, construct, operate, and maintain
projects and facilities for the management and control of water quality
in the basin whenever the commission deems necessary to activate or
effectuate any of the provisions of this compact.

5.2 Policy and Standards.

(a) In order to conserve, protect, and utilize the water quality of
the basin in accordance with the best interests of the people of the
basin and the states, it shall be the policy of the commission to
encourage and coordinate the efforts of the signatory parties to
prevent, reduce, control, and eliminate water pollution and to maintain
water quality as required by the comprehensive plan.

(b) The legislative intent in enacting this article is to give
specific emphasis to the primary role of the states in water quality
management and control.

(c) The commission shall recommend to the signatory parties the
establishment, modification, or amendment of standards of quality for
any waters of the basin in relation to their reasonable and necessary
use as the commission shall deem to be in the public interest.

(d) The commission shall encourage cooperation and uniform enforcement
programs and policies by the water quality control agencies of the
signatory parties in meeting the water quality standards established in
the comprehensive plan.

(e) The commission may assume jurisdiction whenever it determines
after investigation and public hearing upon due notice given that the
effectuation of the comprehensive plan so requires. After such
investigation, notice, and hearing, the commission may adopt such rules,
regulations, and water quality standards as may be required to preserve,
protect, improve, and develop the quality of the waters of the basin in
accordance with the comprehensive plan.

5.3 Cooperative Administration and Enforcement.

(a) Each of the signatory parties 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 waters of the
basin.

(b) The commission shall have the authority to investigate and
determine if the requirements of the compact or the rules, regulations,
and water quality standards of the commission are complied with and if
satisfactory progress has not been made, may institute an action or
actions in its own name in the proper court or courts of competent
jurisdiction to compel compliance with any and all of the provisions of
this compact or any of the rules, regulations, and water quality
standards of the commission adopted pursuant thereto.

5.4 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 Flood Control Authority.

The commission may plan, design, construct, and operate and maintain
projects and facilities it deems necessary or desirable for flood plain
development and flood damage reduction. It shall have power to operate
such facilities and to store and release waters of the Susquehanna 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 Regulation.

(a) The commission may study and determine the nature and extent of
the flood plains of the Susquehanna River and its tributaries. Upon the
basis of the studies, it may delineate area subject to flooding,
including but not limited to a classification of lands with reference to
relative risk of flooding and the establishment of standards for flood
plain use which will promote economic development and safeguard the
public health, welfare, safety, and property. Prior to the adoption of
any standards delineating the area or defining the use, the commission
shall hold public hearings with respect to the substance of the
standards in the manner provided by Article 15. The proposed standards
shall be available from the commission at the time notice is given, and
interested persons shall be given an opportunity to be heard thereon at
the hearings.

(b) The commission shall have power to promulgate, adopt, amend, and
repeal from time to time as necessary, standards relating to the nature
and extent of the uses of land in areas subject to flooding.

(c) In taking action pursuant to subsection (b) of this section and as
a prerequisite thereto, the commission shall consider the effect of
particular uses of the flood plain in question on the health and safety
of persons and property in the basin, the economic and technical
feasibility of measures available for the development and protection of
the flood plain, and the responsibilities, if any, of local, state, and
federal governments connected with the use or proposed use of the flood
plain in question. The commission shall regulate the use of particular
flood plains in the manner and degree it finds necessary for the factors
enumerated in this subsection, but only with the consent of the affected
signatory state, and shall suspend such regulation when and so long as
the signatory party or parties or political subdivision possessing
jurisdiction have in force applicable laws which the commission finds
give adequate protection for the purpose of this section.

(d) In order to conserve, protect, and utilize the Susquehanna River
and its tributaries in accordance with the best interests of the people
of the basin and the signatory parties, it shall be the policy of the
commission to encourage and coordinate the efforts of the signatory
parties to control modification of the river and its tributaries by
encroachment.

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 regulating the use or types of construction of
such property to minimize the flood hazard, convert the property to uses
or types of construction appropriate to flood plain conditions, or
prevent constrictions or obstructions that reduce the ability of the
river channel and flood plain to carry flood water.

6.4 Existing Structures.

No rule or regulation issued by the commission pursuant to this shall
be construed to require the demolition, removal, or alteration of any
structure in place or under construction prior to the issuance thereof,
without the payment of just compensation therefor. However, new
construction or any addition to or alteration in any existing structure
made or commenced subsequent to the issuance of such rule or regulation,
or amendment, shall conform thereto.

6.5 Police Powers.

The regulation of use of flood plain lands is within the police powers
of the signatory states for the protection of public health and the
safety of the people and their property and shall not be deemed a taking
of land or lands for which compensation shall be paid to the owners
thereof.

6.6 Cooperation.

Each of the signatory parties agrees to control flood plain use along
and encroachment upon the Susquehanna and its tributaries and to
cooperate faithfully in these respects.

6.7 Other Authority.

Nothing in this article shall be construed to prevent or in any way to
limit the power of any signatory party, or any agency or subdivision
thereof, to issue or adopt and enforce any requirement or requirements
with respect to flood plain use or construction thereon more stringent
than the rules, regulations, or encroachment lines in force pursuant to
this article. The commission may appear in any court of competent
jurisdiction to bring actions or proceedings in law or equity to enforce
the provisions of this article.

6.8 Debris.

The signatory states agree that dumping or littering upon or in the
waters of the Susquehanna River or its tributaries or upon the frozen
surfaces thereof of any rubbish, trash, litter, debris, abandoned
properties, waste material, or offensive matter, is prohibited and that
the law enforcement officials of each state shall enforce this
prohibition.

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 Land and Forest Management.

The commission, subject to the limitations in Section 7.4(b), may
acquire, sponsor, or operate facilities and projects to encourage soil
conservation, prevent and control erosion, and promote land reclamation
and sound land and forest management.

7.3 Fish and Wildlife.

The commission, subject to the limitations in Section 7.4(b), may
acquire, sponsor, or operate projects and facilities for the maintenance
and improvement of fish and wildlife habitat 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 acquire or operate any such project or
facility unless it has first found and determined that no other suitable
unit or agency of government is in a position to acquire or operate the
same upon reasonable conditions, or such unit or agency fails to do so.

ARTICLE 8--RECREATION

Section 8.1 Development.

The commission may 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 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.

8.3 Operation and Maintenance.

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

1. Encourage activities of other public agencies having water related
recreational interests and assist in the coordination thereof;

2. Recommend standards for the development and administration of water
related recreational facilities;

3. Provide for the administration, operation, and maintenance of
recreation 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, after public hearing upon due notice given shall
provide by regulation a procedure for the award of contracts for private
concessions in connection with its recreational facilities, including
any renewal or extension thereof, under terms and conditions determined
by the commission.

ARTICLE 9--OTHER PUBLIC VALUES

Section 9.1 Inherent Values.

The signatory parties agree that it is a purpose of this compact in
effectuating the conservation and management of water resources to
preserve and promote the economic and other values inherent in the
historic and the scenic and other natural amenities of the Susquehanna
River Basin for the enjoyment and enrichment of future generations, for
the promotion and protection of tourist attractions in the basin, and
for the maintenance of the economic health of allied enterprises and
occupations so as to effect orderly, balanced, and considered
development in the basin.

9.2 Project Compatibility.

To this end, the signatory parties agree that in the consideration,
authorization, construction, maintenance, and operation of all water
resources projects in the Susquehanna basin, their agencies and
subdivisions, and the Susquehanna River Basin Commission will consider
the compatibility of such projects with these other public values.

9.3 Regulation Standards.

The commission may recommend to governmental units with jurisdiction
within areas considered for scenic or historic designation minimum
standards of regulation of land and water use and such other protective
measures as the commission may deem desirable.

9.4 Local Area Protection.

The commission may draft and recommend for adoption ordinances and
regulations which would assist, promote, develop, and protect those
areas and the character of their communities. Local governments may
consider parts of their area which have been designated scenic or
historic areas under the provisions of this article separately from the
municipality as a whole, and pursuant to the laws of the state governing
the adoption of those regulations generally may enact regulations
limited to the designated area. In making recommendations to a local
government which is partly in and partly out of such a scenic or
historic area the commission may make recommendations for the entire
municipality.

ARTICLE 10--HYDROELECTRIC POWER

Section 10.1 Development.

The waters of the Susquehanna 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.

10.2 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.

10.3 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.

10.4 Development Contracts.

The commission, after public hearing upon due notice given may 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.

10.5 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 11--REGULATION OF WITHDRAWAL AND DIVERSIONS;

PROTECTED AREAS AND EMERGENCIES

Section 11.1 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 or regulation or control
and may delegate to any of them such powers of the commission as it may
deem necessary or desirable.

11.2 Determination of Protected Area.

The commission, from time to time after public hearing upon due notice
given may determine and delineate such areas within the basin wherein
the demands upon supply made by water users have developed or threaten
to develop to such a degree as to create a water shortage or impair or
conflict with the requirements or effectuation of the comprehensive
plan, and any such area may be designated as a protected area, with the
consent of the member or members from the affected state or states. 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.

11.3 Diversion and Withdrawal Permits.

In any protected areas so determined and delineated, no person shall
divert or withdraw water for domestic, municipal, agricultural, or
industrial uses in excess of such quantities as the commission may
prescribe by general regulations, except (1) pursuant to a permit
granted under this article, or (2) pursuant to a permit or approval
heretofore granted under the laws of any of the signatory states.

11.4 Emergency.

(a) In the event of a drought which may cause an actual and immediate
shortage of available water supply within the basin, or within any part
thereof, the commission after public hearing upon due notice given may
determine and delineate the area of the shortage and by unanimous vote
declare a drought emergency therein. For the duration of the drought
emergency as determined by the commission, it thereupon may direct
increases or decreases in any allocations, diversions, or releases
previously granted or required, for a limited time to meet the emergency
condition.

(b) In the event of a disaster or catastrophe other than drought,
natural or manmade, which causes or may cause an actual and immediate
shortage of available and usable water, the commission by unanimous
consent may impose direct controls on the use of water and shall take
such action as is necessary to coordinate the effort of federal, state,
and local agencies and other persons and entities affected.

11.5 Standards.

Permits shall be granted, modified, or denied, as the case may be, 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.

11.6 Judicial Review.

The determinations and delineations of the commission pursuant to
Section 11.2 and the granting, modification or denial of permits
pursuant to Section 11.3, 11.4, and 11.5 shall be subject to judicial
review in any court of competent jurisdiction.

11.7 Maintenance of Records.

Each signatory party 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.

11.8 Existing State Systems.

Whenever the commission finds it necessary or desirable to exercise
the powers conferred with respect to emergencies 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 12--INTERGOVERNMENTAL RELATIONS

Section 12.1 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:

1. The planning of all projects related to powers delegated to the
commission by this compact shall be undertaken in consultation with the
commission.

2. 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.

3. 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.

12.2 State and Local 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 projects of the signatory
states, their political subdivisions and public corporations affecting
water resources of the basin:

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

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

3. 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.

12.3 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 jurisdiction of the
respective signatory parties.

12.4 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:

1. Uniform and consistent procedures for the allocation of project
costs among purposes included in multiple-purpose programs;

2. 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;

3. Establishment and supervision of a system of accounts for
reimbursement purposes and directing the payments and charges to be made
from such accounts;

4. 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.

12.5 Cooperative Services.

The commission shall furnish technical services, advice, and
consultation to authorized 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 service
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 service may be
reimbursable whenever the parties deem appropriate.

ARTICLE 13--CAPITAL FINANCING

Section 13.1 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.

13.2 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.

13.3 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.

13.4 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 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.

13.5 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 or
affected in any way by: (1) the disposition of bond proceeds by the
commission or by contract, commitment or action taken with respect to
such proceeds; or (2) 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.

13.6 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.

13.7 Maximum Maturity.

No bond or its terms shall mature in more than fifty years from its
own date, or on any date subsequent to the duration of this compact, and
in the event any authorized issue is divided into two or more series or
divisions, the maximum maturity date herein 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.

13.8 Tax Exemption.

All bonds issued by the commission under the provisions of this
compact and the interest thereon 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.

13.9 Interest.

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

13.10 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.

13.11 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 countersignatures appear upon the bonds or
coupons ceases to be an officer before the delivery of the bonds or
coupons, his signature or countersignature is nevertheless valid and of
the same force and effect as if the officer had remained in office until
the delivery of the bonds and coupons.

13.12 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.

13.13 Sale.

The commission may fix terms and conditions for the sale or other
disposition of any authorized issue of bonds and may sell its bonds at
less than their par or face value. All bonds issued and sold for cash
pursuant to this compact 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 bonds 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.

13.14 Negotiability.

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

13.15 Legal Investments.

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

13.16 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.

13.17 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 receipts 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 the indenture trustee.

13.18 Pledged Revenues.

Bond redemption and interest payments, to the extent provided in the
resolution or indenture, shall 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.

13.19 Remedies.

The holder of any bond may for the equal benefit and protection of all
holders of bonds similarly situated; (1) 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 (2) 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, however, does
not exclude the exercise or prosecution of any other rights or remedies
available to the holders of bonds.

13.20 Capital Financing by Signatory Parties; Guarantees.

(a) The signatory parties shall 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 12 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 guaranty 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 nonreimbursable funds or property in any form for the
capital or operating purposes of the commission.

ARTICLE 14--PLAN, PROGRAM AND BUDGETS

Section 14.1 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. 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, their
political subdivisions, and interested groups. The commission shall
conduct public hearings upon due notice given with respect to the
comprehensive plan prior to the adoption of the plan or any part of the
revision thereof, except that public and private projects and facilities
which, in the judgment of the commission, are not required for the
optimum planning, development, conservation, utilization, management,
and control of the water resources of the basin and which, in the
judgment of the commission, will not significantly affect the water
resources of the basin, may be added directly to the comprehensive plan
at any time at the discretion of the commission without public hearing
thereon. The comprehensive plan shall take into consideration the effect
of the plan or any part thereof upon the receiving waters of Chesapeake
Bay.

14.2 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; and

3. A separate statement of the projects proposed to be undertaken by
the commission during such period.

14.3 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
amount 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 remittance by the signatory parties.

ARTICLE 15--GENERAL PROVISIONS

Section 15.1 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, and sue and
be sued in any court 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 instrumentalties created by this 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,
appointments, 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.

15.2 Regulations; Enforcement.

The commission may:

1. Make and enforce 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 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

2. 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.

15.3 Tax Exemptions.

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, as to its specific projects, shall 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.

15.4 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 in each
state prior to the adoption of the initial comprehensive plan. In all
other cases wherein this compact requires a public hearing, such hearing
shall be held upon not less than twenty days' public notice given by
posting at the offices of the commission, and published at least once in
a newspaper or newspapers of general circulation in the area or areas
affected. 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.

15.5 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 or dismissed by the executive director under such rules of
procedure as the commission may establish.

(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
immediately dismissed.

15.6 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.

15.7 Bond.

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

15.8 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 expense 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 willfully violates any of the
provisions of this section shall forfeit his office or employment.

(c) Any contract or agreement knowingly made in contravention 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.

15.9 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 five thousand 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 thirty 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 and 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.

15.10 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.

15.11 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.

15.12 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.

15.13 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 managment 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 the 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.

15.14 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. 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 subjct to the
authority of such state board, commission, or other body as may have
regulatory jurisdiction over such public utility.

(b) The power of condemnation referred to in sub-section (a) shall be
exercised in accordance with the provisions of the state condemnation
law in force in the signatory state in which the property is located. If
there is no applicable state condemnation law, the power of condemnation
shall be exercised in accordance with the provisions of Federal
condemnation law.

(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.

15.15 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,
notwithstanding any contrary provisions of law, is authorized and
empowered 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.

15.16 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.

15.17 Penalty.

Any person, association, or corporation who violates or attempts or
conspires to violate any provisions 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 violation 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 $l,000 for each such violation 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.

15.18 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.

15.19 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.

15.20 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.

15.21 Construction and Severability.

The provisions of this compact and of agreements thereunder shall be
severable and if any phrase, clause, sentence, or provision of the
Susquehanna River Basin 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 such 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 such compact be reasonably and liberally construed.

15.22 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 Maryland and New York, and the Commonwealth of Pennsylvania.
The compact shall be signed and sealed in five identical 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.