12 NATIONAL FOREST MANUAL. 



unexpired portion of the calendar year in which the permit is issued 

 will be credited to the permittee as a part of his payment for the first 

 full calendar year. 



All payments made for the survey-construction period will be 

 credited to the permittee for the cancellation of charges as they be- 

 come due in the operation period. 



No rental charge will be made for the occupancy and use oi 

 National Forest lands under a preliminary or final power permit 

 (except as hereinbefore provided for transmission lines) authorizing 

 such occupancy and use by municipal corporations for municipal 

 purposes, or by other permittees for irrigation as auxiliary to irri- 

 gation works owned and operated by the permittees, or for the tem- 

 porary development of power to be used in the construction of per- 

 manent project works under permit issued to the same permittees. 

 Whenever a power project is not used exclusively for the purposes 

 above named, 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 year. 

 All amounts so credited will be applied to the cancellation of charges 

 as they may thereafter become due. 



If all or any part of the amounts due for rental charges as required 

 in the preliminary permit shall, after due notice has been given, be 

 in arrears for 60 days, then and thereupon the preliminary permit 

 shall terminate and be void without revocation by the Secretary. If 

 all or any part of the amounts due for rental charges, as required 

 in the final permit, shall, after due notice has been given, be in arrears 

 for six months, then and thereupon the final permit shall terminate 

 and be void and will be formally revoked by the Secretary. 



At any time not less than 10 years after the issuance of final permit 

 or after the last revision of rates of rental charges 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 proj- 

 ect under premit, over proper actual and estimated expenses (includ- 

 ing 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 enter- 

 prise (including obsolescence, inadequacy, and supersession) is un- 

 reasonably small, but the burden of proving such unreasonableness 

 shall rest upon the permittee. 



The decision of the Secretary shall be final as to all matters of fact 

 upon which the calculation of the capacities or rentals depends. 



Reg. L-9. All applications for power permits, whether prelimi- 

 nary or final, to occupy and use National Forest lands under these 

 regulations shall be filed with the district forester of the district in 

 which the lands are situated and shall, if the applicant be an indi- 

 vidual, contain a sworn statement that he is a citizen of the United 

 States. If the applicant is an association of citizens, the applica- 

 tion shall contain a sworn statement that each member is a citizen 

 of the United States. Associations must, in addition, submit their 

 articles of association ; if there be none, the fact must be stated over 

 the signature of each member of the association. 



