AZ vs. CA:14 California Exhibits, Vol. XIV; Nos. 2051-2100

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4 1 shall give preference to applications made by political subdi- 2 visions. 3 Sko. 4. That the said Secretary is authorized to make 4 leases of the power privileges so allocated, limited to fifty 5 years, on such terms and under such regulations as he may 6 prescribe, and to fix what he may find to be a reasonable 7 compensation therefor. Upon or after the expiration of any 8 such lease, or renewal thereof, the United States may take 9 over the property of the lessee which is dependent for its 10 usefulness upon the continuation of the lease, and if it shall do 11 so shall pay to the lessee its net investment in the property 12 taken, not exceeding the fair value thereof at the time it is 13 so taken, wi^h reasonable severance damages to property of 14 the lessee not taken. Such net investment, or fair value and 15 damages, if not agreed upon, shall be fixed by a proceeding 16 in equity in the district court of the United States in the dis- 17 trict in which such property, or some part thereof, is situated. 18 If the United States does not exercise its right to take over 19 such property, the Secretary of the Interior may, by agree- 20 ment with the lessee, renew the said lease for not more than 21 fifty years, or in his discretion may make a lease under the 22 terms hereof to a new lessee, upon the condition that such 23 new lessee shall pay to the former lessee such net investment 24 and damages determined a,s aforesaid. If such property is 25 not taken over by the United States, or such new lessee, or