NATIONAL FOREST MANUAL. 37 



it 'being understood, that said estimated rental capacity may be adjusted an- 

 nually by the Secretary to provide for changes in ownership of lands in reser- 

 voir sites and on water conduit lines and for changes in length of primary 

 transmission; and it 'being further understood that at any time not less than 

 ten (10) years after the issuance of the permit, or after the last revision of 

 rates of rental charge thereunder, the Secretary may review such rental rates 

 and impose such new rental rates as he may decide to be reasonable and 

 proper; provided that such rental rates shall not be so increased as to reduce 

 the margin of income (including appreciation in land values) from the power 

 project or projects under the permit over proper, actual, and estimated expenses 

 (including reasonable allowance for renewals and sinking-fund charges) to an 

 amount which, In view of all the circumstances (including fair development 

 expenses and working capital) and risks of the enterprise (including obso- 

 lescence, inadequacy, and supersession), is unreasonably small; but the burden 

 of proving such unreasonableness shall rest upon the permittee. 



ART. 11. That it is understood that if the permittee completes the construction 

 and begins the operation of each of the several parts of the aforesaid project 

 works within the periods provided for in article 5 hereof or any approved exten- 

 sion thereof, then and thereupon all charges for the occupancy and use of 

 National Forest lands for said part of said project works so completed and oper- 

 ated which have been paid prior to the date of such completion and operation 

 will be credited to the permittee and will be applied to the payment of charges 

 due at the date of such completion and operation or to become due thereafter. 



ART. 12. That it is understood that if any part of the power developed by the 

 project works tinder the permit is used by the permittee itself for irrigation as 

 auxiliary to irrigation works owned and operated by the permittee, or for the 

 temporary development of power to be used in the construction of permanent 

 project works under permit to the permittee, such a proportional part of the full 

 schedule charge for any calendar year will be credited to the permittee as the 

 power developed by the project works and used for the purposes above named 

 bears to the total output of the project works for said years; and that all 

 amounts so credited will be applied to the cancellation of charges as they may 

 thereafter become due. 



ART. 13. That it is understood that if any part of the aforesaid rental charge, 

 payable as hereinbefore provided, shall, after due notice has been given, be in 

 arrears for six (6) months, then and thereupon the permit and the authority 

 granted thereunder to occupy and use National Forest lands shall terminate and 

 be void. 



ART. 14. That the decision of the Secretary shall be final as to all matters of 

 fact upon which the calculation of the capacities or charges depends. 



Records and accounts. 



ART. 15. On demand of the Secretary to install at such places and maintain 

 In good operating condition in such manner as shall be approved by the Secre- 

 tary, free of all expense to the United States, accurate meters, measuring weirs, 

 gauges, and, or, other devices approved by the Secretary and adequate for the 

 determination of the amount of power developed by the project works and of 

 the flow of the streams from which the water is to be diverted for the operation 

 of said works, and of the amount of water used in the operation of said works, 

 and of the amounts of water held in and drawn from storage ; to keep accurate 

 and sufficient records of the foregoing to the satisfaction of the Secretary, and 

 to make a return during January of each year, under oath, of such of the rec- 

 ords of measurements for the year ended on December 31, preceding, made by 

 or in the possession of the permittee, as may be required by the Secretary. 



ART. 16. That the books and records of the permittee, in so far as they con- 

 tain information concerning the power project or projects under the permit, or 

 the power business conduction in connection therewith, shall be open at all 

 times to the inspection and examination of the Secretary. 



ART. 17. Upon the demand of the Secretary to maintain in such form as the 

 Secretary may prescribe or approve a system of accounting of the entire power 

 business transacted in connection with the power project or projects under the 

 permit and to render annually such reports of said power business as the Secre- 

 tary may direct : Provided, however, That if the laws of the State in which the 

 said power business or any part thereof is transacted require periodical reports 

 from public utility corporations under a uniform system of accounting, copies 

 of such reports so made will be accepted as fulfilling the requirements of this 

 article. 



